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 811-10345
---------------------
Nuveen Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT April 30, 2006
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
NUVEEN PERFORMANCE
PLUS MUNICIPAL
FUND, INC.
NPP
NUVEEN MUNICIPAL
ADVANTAGE FUND, INC.
NMA
NUVEEN MUNICIPAL
MARKET OPPORTUNITY
FUND, INC.
NMO
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND
NAD
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND 2
NXZ
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND 3
NZF
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
CHAIRMAN'S
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
"PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK
THAT COMES WITH INVESTING."
Municipal bonds can be an important building block in a well balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a recognized way
to try to reduce some of the risk that comes with investing. I encourage you to
contact your personal financial advisor who may help explain this important
investment strategy.
Nuveen Investments is pleased to offer you choices when it comes to receiving
your fund reports. In addition to mailed print copies, you can also sign up to
receive future Fund reports and other Fund information by e-mail and the
Internet. Not only will you receive the information faster, but this also may
help lower your Fund's expenses. The inside front cover of this report contains
information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 12, 2006
Nuveen Investments Municipal Exchange-Traded Closed-End Funds
NPP, NMA, NMO, NAD, NXZ, NZF
PORTFOLIO MANAGER'S
COMMENTS
Portfolio manager Tom Spalding reviews key investment strategies and the
six-month performance of these six Funds. With 29 years of investment experience
at Nuveen, Tom has managed NXZ since its inception in 2001 and NPP, NMA, NMO,
NAD, and NZF since 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX MONTHS ENDED
APRIL 30, 2006?
During this reporting period, we saw a general increase in interest rates,
although rates at the longer end of the yield curve remained more stable than
those at the short end throughout much of the period. Between November 1, 2005
and April 30, 2006, the Federal Reserve implemented four increases of 0.25% each
in the fed funds rate, raising this short-term target by 100 basis points--from
3.75% to 4.75%. (On May 10, 2006, the fed funds rate was increased by another 25
basis points to 5%, marking the Fed's 16th consecutive quarter-point hike since
June 2004.) In contrast, the yield on the benchmark 10-year U.S. Treasury note
ended April 2006 at 5.06%, up from 4.55% six months earlier, while the yield on
the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term
municipal market rates, was 5.22% at the end of April 2006, an increase of just
two basis points from the beginning of November 2005. As interest rates
increased, bond valuations generally declined, and the yield curve flattened as
short-term rates approached the levels of longer-term rates.
In this environment, one of our key strategies continued to be careful duration1
management, part of which included efforts to more closely align the duration
and yield curve positioning of these Funds. Depending on the needs of the
individual Fund, our purchase activity focused on attractively priced bonds
maturing in 10 to 15 years in Funds that were close to their duration target and
in 20 years and longer in Funds where the duration needed lengthening. As the
yield curve continued to flatten, we believed that bonds in these parts of the
curve generally offered better value and reward opportunities more commensurate
with their risk levels. As the period progressed, we started to see more
opportunities to add value at the longer end of the curve, and we began to
slightly extend the Funds' durations.
In looking for potential purchase candidates, we kept an opportunistic eye
toward all types of issuance that we believed could add value to the Funds'
portfolios and keep the Funds well diversified geographically. Overall,
portfolio activity was relatively light during this period. This was due in part
to the fact that these Funds entered the reporting period fully invested and
with routine call exposure. Another factor was the 5.5% decline in municipal
supply during this six-month period compared with the same period 12 months
earlier (November 2004-April 2005). The decrease in supply was even more evident
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
during the first four months of 2006, when new issuance dropped almost 25% from
the levels of January-April 2005. At the same time, demand for municipal bonds
continued to be diverse and broad-based, with retail investors, property and
casualty insurance companies, and third-party investors--such as hedge funds and
arbitrage accounts--all participating in the market.
In general, much of the new supply was highly rated and/or insured, and the
majority of our new purchases during this time were higher-rated credits. While
we continued to emphasize maintaining the Funds' weightings of bonds rated BBB
or lower and nonrated bonds, tighter supply and declining relative valuations
meant fewer opportunities to find additional lower-rated issues that we believed
represented value for shareholders. One of the few lower quality areas where we
did find opportunities to add value was the tobacco sector, and we purchased
selected tobacco issues to maintain our portfolios' overall exposure to this
sector.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 4/30/06
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NPP 1.58% 2.52% 7.06% 6.67%
--------------------------------------------------------------------------------
NMA 1.74% 3.00% 7.56% 6.94%
--------------------------------------------------------------------------------
NMO 1.99% 3.01% 6.74% 6.20%
--------------------------------------------------------------------------------
NAD 1.94% 3.55% 8.24% NA
--------------------------------------------------------------------------------
NXZ 2.66% 4.87% 8.88% NA
--------------------------------------------------------------------------------
NZF 2.44% 4.11% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index2 1.56% 2.16% 5.40% 5.90%
--------------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average3 2.60% 3.86% 7.34% 6.68%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
3 The Lipper General Leveraged Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 6 months, 56; 1 year, 56; 5
years, 45; and 10 years, 39. Fund and Lipper returns assume reinvestment of
dividends.
5
For the six months ended April 30, 2006, the cumulative returns on net asset
value (NAV) for all six of the Funds in this report exceeded or performed in
line with the return on their Lehman Brothers municipal benchmark. NXZ also
slightly outperformed the average return for the Funds' Lipper peer group for
this period, NZF slightly underperformed the peer group, while NPP, NMA, NMO,
and NAD underperformed this average.
One of the factors that, on balance, benefited the six-month performance of
these Funds relative to that of the unleveraged Lehman Brothers Municipal Bond
Index was the Funds' use of financial leverage. While leveraging can add
volatility to a Fund's NAV and share price, this strategy can also provide
opportunities for additional income and total return for common shareholders.
The benefits of leveraging are tied in part to the short-term rates leveraged
Funds pay their MuniPreferred(R) shareholders. During periods of low short-term
rates, leveraged Funds generally pay lower dividends to their MuniPreferred
shareholders, which can leave more earnings to support common share dividends.
Conversely, when short-term interest rates rise, as they did during this
reporting period, the Funds' borrowing costs also rise, which can impact the
Funds' income streams and total returns. However, as long as short-term yields
are lower than those of the long-term bonds in the Funds' portfolios, the income
received by the common shareholders of leveraged Funds will be higher than it
would be if the Funds were unleveraged. Despite the impact of rising interest
rates on bond valuations, the extra income, or yield advantage, resulting from
leveraging during this period remained strong enough to help the Funds' total
returns outperform or perform in line with the return on the Lehman index for
this six months. Over the long term, we believe the use of financial leverage
will continue to work to the benefit of the Funds, as demonstrated by the
five-year and ten-year return performances--both absolute and relative--of the
Funds in this report.
During this reporting period, positive contributors to the Funds' returns
included yield curve and duration positioning, exposure to lower-rated credits,
and pre-refunding activity.
As the yield curve continued to flatten over the course of this period, yield
curve and duration positioning played important roles in the Funds'
performances. On the whole, shorter maturity bonds were the most impacted by
recent changes in the yield curve. As a result, these bonds generally
underperformed both intermediate and long bonds, with credits having the longest
durations posting the best returns for this period. Yield curve positioning or,
more specifically, greater exposure to those parts of the yield curve that
performed well helped the performances of these Funds during this period. As
previously mentioned, we continued to work to more closely align the yield curve
positioning of all of these Funds.
With bonds rated BBB or lower and nonrated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor
6
demand for the higher yields typically associated with lower-quality bonds,
which drove up their value and kept credit spreads narrow. As of April 30, 2006,
allocations of bonds rated BBB or lower and nonrated bonds accounted for 11% of
NMO's portfolio, 13% of NPP, 13% of NZF, 16% of NAD, 19% of NMA, and 21% of NXZ.
As Dividend Advantage Funds, NAD, NXZ, and NZF can also invest a higher portion
of their portfolios in bonds rated BB or lower, and NXZ's allocation of 8% to
this category gave a boost to its six-month performance.
Among the lower-rated holdings making contributions to the Funds' cumulative
returns for this period were health care bonds (including hospitals) and tobacco
credits backed by the 1998 master tobacco settlement agreement. As mentioned
earlier, we continued to purchase uninsured tobacco bonds during this period.
We also continued to see a number of advance refundings4 during this period,
which benefited the Funds through price appreciation and enhanced credit
quality. However, as the yield curve flattened, more lower coupon bonds were
being pre-refunded, which meant that, in general, the positive impact from
refinancings was less than in the previous reporting period.
While advance refundings generally enhanced total return performance for this
six-month period, the rising interest rate environment--especially at the short
end of the yield curve--meant that the Funds' holdings of older, previously
pre-refunded bonds tended to underperform the general municipal market, due
primarily to the shorter effective maturities of these bonds. This was
especially true in the four older Funds--NPP, NMA, NMO, and NAD--which had
significantly larger allocations of pre-refunded bonds than the more recently
established NXZ and NZF.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
APRIL 30, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of April 30, 2006, all six of these Funds continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 68% in NXZ to 79% in NMA to 82% in NAD, 83% in NPP, 84% in
NMO, and 85% in NZF.
As of April 30, 2006, potential call exposure for the period May 2006 through
the end of 2007 ranged from 7% in NXZ, 8% in NMO, and 10% in NZF to 17% in NAD
and NPP and 18% in NMA. We continued to watch the market for opportunities to
reinvest proceeds from bonds with shorter call dates into bonds with maturities
of at least 15 years. The number of actual bond calls in all of these Funds
depends largely on future market interest rates.
4 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
7
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. During
periods of rising short-term interest rates, as was the case during this
reporting period, the Funds' borrowing costs also rise, reducing the extent of
the benefits of leveraging. This resulted in one monthly dividend reduction in
NPP, NMA, NMO, and NXZ and two in NAD over the six-month period ended April 30,
2006. The dividend of NZF remained stable throughout this reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and net ordinary income
distributions at the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPP $0.0174 $0.0001
--------------------------------------------------------------------------------
NMA $0.0116 $0.0030
--------------------------------------------------------------------------------
NMO -- $0.0036
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2006, all of the
Funds in this report had a positive UNII balance for financial statement
purposes and a positive UNII balance, based upon our best estimate, for tax
purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
4/30/06 6-MONTH
PREMIUM/DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NPP -5.16% -5.21%
--------------------------------------------------------------------------------
NMA -2.07% -1.71%
--------------------------------------------------------------------------------
NMO -6.13% -5.79%
--------------------------------------------------------------------------------
NAD -4.76% -3.98%
--------------------------------------------------------------------------------
NXZ +3.12% -2.64%
--------------------------------------------------------------------------------
NZF -0.85% -2.36%
--------------------------------------------------------------------------------
8
Nuveen Performance Plus Municipal Fund, Inc.
NPP
PERFORMANCE
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 9%
A 4%
BBB 9%
BB or Lower 2%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2)
May 0.0780
Jun 0.0780
Jul 0.0780
Aug 0.0780
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0705
Apr 0.0705
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 14.31
14.33
14.4
14.45
14.39
14.45
14.47
14.43
14.37
14.37
14.41
14.43
14.49
14.5
14.45
14.51
14.51
14.49
14.51
14.59
14.65
14.64
14.7
14.76
14.76
14.8
14.8
14.75
14.75
14.61
14.62
14.69
14.69
14.7
14.68
14.77
14.78
14.76
14.79
14.81
14.9
14.94
14.98
14.91
14.91
14.98
15.07
15.17
15.2
15.26
15.18
15.13
15.19
14.98
15.1
15.1
15.01
15.13
15.1
15.23
15.24
15.26
15.2
15.2
15.23
15.29
15.2
15.24
15.11
15.09
15.11
15.19
15.08
15.16
15.17
15.13
15.09
15.03
15.05
15.06
15.09
15.09
15.13
15.14
15.21
15.28
15.33
15.37
15.41
15.46
15.38
15.39
15.44
15.39
15.29
15.2
15
15.05
15.08
15.14
15.16
14.95
14.95
14.78
14.79
14.93
14.97
15.03
15.05
15.08
15.08
15.05
15.04
15.02
15.04
14.74
14.64
14.54
14.46
14.37
14.43
14.42
14.53
14.58
14.58
14.48
14.46
14.45
14.43
14.5
14.48
14.44
14.45
14.44
14.48
14.33
14.09
14.07
13.85
13.93
14.01
14.05
14.09
14.08
14.06
14.01
14.03
14.18
14.13
14.15
14.18
14.2
14.2
14.21
14.23
14.29
14.36
14.45
14.26
14.2
14.24
14.19
14.18
14.14
14.13
14.21
14.3
14.38
14.42
14.49
14.7
14.7
14.79
14.9
14.96
14.91
15
15.12
15.11
15.11
15.13
15.08
15.04
15.06
15.03
15.05
14.98
14.99
14.97
15.11
15.15
15.22
15.14
15.13
15.15
15.08
15.12
15.04
15.06
15.02
14.91
14.93
14.94
15.01
15.11
15.16
15.25
15.21
15.22
15.23
15.24
15.22
15.23
15.1
15
14.96
14.96
15.11
15.04
15.05
15.08
15.02
15.18
15.1
15.21
15.35
15.45
15.38
15.34
15.21
15.14
15.21
15.07
15.08
15.13
15.1
14.98
14.93
14.87
14.82
14.62
14.65
14.64
14.54
14.53
14.5
14.44
14.35
14.4
14.36
14.43
14.45
14.51
4/30/06 14.51
FUND SNAPSHOT
------------------------------------
Common Share Price $14.51
------------------------------------
Common Share
Net Asset Value $15.30
------------------------------------
Premium/(Discount) to NAV -5.16%
------------------------------------
Market Yield 5.83%
------------------------------------
Taxable-Equivalent Yield1 8.10%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $916,920
------------------------------------
Average Effective Maturity
on Securities (Years) 14.95
------------------------------------
Leverage-Adjusted Duration 8.28
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/22/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.69% 1.58%
------------------------------------
1-Year 8.27% 2.52%
------------------------------------
5-Year 7.39% 7.06%
------------------------------------
10-Year 6.40% 6.67%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 14.2%
------------------------------------
California 9.2%
------------------------------------
New York 8.6%
------------------------------------
New Jersey 4.9%
------------------------------------
Louisiana 4.7%
------------------------------------
Michigan 4.6%
------------------------------------
Indiana 4.5%
------------------------------------
Florida 3.9%
------------------------------------
Colorado 3.7%
------------------------------------
Texas 3.6%
------------------------------------
Utah 2.9%
------------------------------------
Massachusetts 2.8%
------------------------------------
South Carolina 2.8%
------------------------------------
Washington 2.8%
------------------------------------
Ohio 2.6%
------------------------------------
Pennsylvania 2.3%
------------------------------------
Georgia 2.1%
------------------------------------
Minnesota 2.1%
------------------------------------
Nevada 1.6%
------------------------------------
Wisconsin 1.5%
------------------------------------
Other 14.6%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 26.6%
------------------------------------
Tax Obligation/Limited 14.2%
------------------------------------
Tax Obligation/General 14.2%
------------------------------------
Utilites 10.1%
------------------------------------
Transportation 9.4%
------------------------------------
Health Care 8.0%
------------------------------------
Consumer Staples 5.5%
------------------------------------
Other 12.0%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0175 per share.
9
Nuveen Municipal Advantage Fund, Inc.
NMA
PERFORMANCE
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 10%
A 2%
BBB 16%
BB or Lower 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2)
May 0.083
Jun 0.083
Jul 0.083
Aug 0.083
Sep 0.0795
Oct 0.0795
Nov 0.0795
Dec 0.0795
Jan 0.0795
Feb 0.0795
Mar 0.0755
Apr 0.0755
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 15.17
15.23
15.28
15.33
15.28
15.26
15.39
15.28
15.26
15.32
15.24
15.17
15.28
15.33
15.29
15.31
15.25
15.22
15.21
15.31
15.32
15.38
15.45
15.46
15.5
15.55
15.49
15.5
15.41
15.34
15.33
15.31
15.4
15.37
15.39
15.46
15.48
15.57
15.59
15.69
15.68
15.67
15.67
15.7
15.69
15.78
15.75
15.83
15.85
15.91
15.8
15.77
15.71
15.56
15.63
15.66
15.61
15.6
15.66
15.65
15.68
15.81
15.72
15.72
15.78
15.89
15.77
15.72
15.65
15.65
15.57
15.63
15.58
15.66
15.68
15.77
15.7
15.78
15.77
15.75
15.8
15.82
15.77
15.8
15.82
15.81
15.84
15.88
15.93
15.97
15.95
15.94
16.01
16.06
16.01
15.89
15.71
15.66
15.64
15.7
15.76
15.68
15.6
15.51
15.58
15.66
15.75
15.84
15.84
15.84
15.81
15.72
15.76
15.85
15.75
15.55
15.44
15.38
15.39
15.34
15.3
15.24
15.19
15.2
15.19
15.05
15.13
15.17
15.19
15.27
15.2
15.24
15.2
15.21
15.25
15.22
15.19
15.23
15.09
15.08
15.08
15.12
15.12
15.01
14.99
15
15.03
15.09
15.13
15.05
15.1
15.14
15.12
15.22
15.21
15.27
15.45
15.38
15.14
15.19
15.07
15.06
14.98
15.02
15.03
15.01
15.18
15.2
15.18
15.35
15.38
15.38
15.42
15.45
15.7
15.65
15.7
15.77
15.81
15.72
15.43
15.64
15.71
15.89
15.92
15.85
15.91
15.95
15.94
15.98
16.05
16.02
16.01
16
15.66
15.63
15.68
15.69
15.68
15.79
15.6
15.63
15.61
15.77
15.77
15.8
15.75
15.95
15.82
15.86
15.92
15.93
15.94
15.7
15.45
15.38
15.46
15.55
15.58
15.49
15.46
15.43
15.57
15.52
15.5
15.5
15.47
15.49
15.46
15.47
15.55
15.49
15.45
15.46
15.51
15.53
15.46
15.47
15.35
15.25
15.13
15.17
15.29
15.15
15.22
15.23
15.14
15.15
15.17
15.12
15.17
15.15
15.17
4/30/06 15.17
FUND SNAPSHOT
------------------------------------
Common Share Price $15.17
------------------------------------
Common Share
Net Asset Value $15.49
------------------------------------
Premium/(Discount) to NAV -2.07%
------------------------------------
Market Yield 5.97%
------------------------------------
Taxable-Equivalent Yield1 8.29%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $667,274
------------------------------------
Average Effective Maturity
on Securities (Years) 16.36
------------------------------------
Leverage-Adjusted Duration 7.62
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.02% 1.74%
------------------------------------
1-Year 6.21% 3.00%
------------------------------------
5-Year 8.61% 7.56%
------------------------------------
10-Year 7.05% 6.94%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 11.4%
------------------------------------
Texas 11.3%
------------------------------------
New York 10.9%
------------------------------------
Washington 9.5%
------------------------------------
California 7.5%
------------------------------------
Wisconsin 5.1%
------------------------------------
Louisiana 5.0%
------------------------------------
Tennessee 3.5%
------------------------------------
Ohio 3.0%
------------------------------------
Colorado 2.9%
------------------------------------
South Carolina 2.7%
------------------------------------
Nevada 2.4%
------------------------------------
Indiana 2.4%
------------------------------------
Alabama 2.1%
------------------------------------
New Jersey 2.1%
------------------------------------
North Carolina 1.9%
------------------------------------
Oklahoma 1.5%
------------------------------------
Other 14.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 26.6%
------------------------------------
Utilites 15.1%
------------------------------------
Health Care 13.5%
------------------------------------
Transportation 10.3%
------------------------------------
Tax Obligation/General 8.3%
------------------------------------
Tax Obligation/Limited 7.8%
------------------------------------
Housing/Single Family 5.6%
------------------------------------
Consumer Staples 5.5%
------------------------------------
Other 7.3%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0146 per share.
10
Nuveen Municipal Market Opportunity Fund, Inc.
NMO
PERFORMANCE
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 76%
AA 8%
A 5%
BBB 7%
BB or Lower 3%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2)
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.0725
Oct 0.0725
Nov 0.0725
Dec 0.0725
Jan 0.0725
Feb 0.0725
Mar 0.0685
Apr 0.0685
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 13.97
14.01
14.04
14.13
13.97
14
14.1
14.11
14.08
14.07
14.08
14.11
14.16
14.18
14.15
14.17
14.23
14.24
14.17
14.29
14.32
14.45
14.6
14.45
14.5
14.47
14.41
14.39
14.44
14.27
14.29
14.26
14.39
14.39
14.39
14.43
14.48
14.54
14.68
14.79
14.74
14.87
14.92
14.88
14.92
14.95
14.94
14.97
14.98
15.03
14.99
15.01
14.95
14.84
14.84
14.85
14.72
14.75
14.78
14.9
14.98
14.96
14.94
14.94
14.92
14.96
14.95
14.94
14.87
14.88
14.84
14.92
14.89
14.9
14.79
14.87
14.8
14.74
14.75
14.81
14.83
14.88
14.87
14.79
14.82
14.88
14.86
14.94
14.95
14.93
14.92
14.98
14.94
14.96
14.9
14.86
14.65
14.62
14.6
14.55
14.59
14.46
14.46
14.25
14.33
14.44
14.47
14.51
14.5
14.48
14.46
14.44
14.39
14.37
14.41
14.22
14.01
14.05
14
14.06
14.05
14
14.11
14.15
14.18
14.11
14.13
14.14
14.19
14.17
14.18
14.15
14.21
14.28
14.26
13.96
13.83
13.8
13.53
13.53
13.69
13.76
13.65
13.69
13.65
13.65
13.64
13.7
13.76
13.82
13.86
13.91
13.98
14.04
14.01
14.04
14.04
14.04
13.77
13.81
13.87
13.84
13.82
13.86
13.88
13.94
13.97
14.18
14.18
14.32
14.47
14.47
14.51
14.59
14.72
14.59
14.77
14.66
14.6
14.6
14.53
14.4
14.52
14.65
14.64
14.59
14.54
14.48
14.58
14.59
14.63
14.69
14.76
14.72
14.67
14.54
14.52
14.51
14.6
14.54
14.46
14.47
14.48
14.61
14.59
14.67
14.72
14.68
14.77
14.79
14.84
14.78
14.74
14.64
14.57
14.54
14.52
14.53
14.49
14.55
14.46
14.5
14.62
14.65
14.51
14.55
14.6
14.55
14.53
14.5
14.58
14.6
14.53
14.65
14.65
14.65
14.53
14.43
14.36
14.22
14.1
14.04
14.11
13.96
14.1
14.1
14.13
14.05
14.12
13.98
14.03
14.11
14.09
4/30/06 14.09
FUND SNAPSHOT
------------------------------------
Common Share Price $14.09
------------------------------------
Common Share
Net Asset Value $15.01
------------------------------------
Premium/(Discount) to NAV -6.13%
------------------------------------
Market Yield 5.83%
------------------------------------
Taxable-Equivalent Yield1 8.10%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $683,394
------------------------------------
Average Effective Maturity
on Securities (Years) 14.11
------------------------------------
Leverage-Adjusted Duration 8.26
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.29% 1.99%
------------------------------------
1-Year 7.42% 3.01%
------------------------------------
5-Year 6.37% 6.74%
------------------------------------
10-Year 6.01% 6.20%
------------------------------------
STATES
(as a % of total municipal bonds)
------------------------------------
Texas 16.6%
------------------------------------
Washington 11.6%
------------------------------------
New York 10.6%
------------------------------------
Illinois 7.5%
------------------------------------
Minnesota 5.2%
------------------------------------
South Carolina 4.9%
------------------------------------
California 4.5%
------------------------------------
Nevada 3.9%
------------------------------------
Colorado 3.5%
------------------------------------
New Jersey 3.2%
------------------------------------
Georgia 3.0%
------------------------------------
Massachusetts 3.0%
------------------------------------
North Dakota 2.8%
------------------------------------
Pennsylvania 2.5%
------------------------------------
Puerto Rico 1.9%
------------------------------------
Ohio 1.7%
------------------------------------
Other 13.6%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 31.8%
------------------------------------
Transportation 18.3%
------------------------------------
Tax Obligation/General 15.0%
------------------------------------
Tax Obligation/Limited 7.5%
------------------------------------
Utilities 6.8%
------------------------------------
Health Care 6.2%
------------------------------------
Consumer Staples 5.0%
------------------------------------
Other 9.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2005 of $0.0036 per share.
11
Nuveen Dividend Advantage Municipal Fund
NAD
PERFORMANCE
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 71%
AA 11%
A 2%
BBB 8%
BB or Lower 5%
N/R 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.0825
Jun 0.0825
Jul 0.0825
Aug 0.0825
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.075
Jan 0.075
Feb 0.075
Mar 0.0715
Apr 0.0715
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 14.62
14.63
14.7
14.77
14.67
14.82
14.88
14.82
14.87
14.81
14.83
14.88
14.85
14.9
14.87
14.85
14.83
14.82
14.81
14.87
14.94
14.97
15.07
15.01
15.07
15.09
15.15
15.15
15.15
15
15
14.98
15
14.97
14.97
15.03
15.12
15.15
15.2
15.25
15.22
15.32
15.43
15.42
15.43
15.43
15.48
15.52
15.49
15.55
15.54
15.53
15.48
15.3
15.52
15.5
15.43
15.46
15.48
15.45
15.54
15.59
15.55
15.55
15.5
15.57
15.55
15.59
15.49
15.44
15.44
15.49
15.41
15.38
15.39
15.38
15.33
15.35
15.44
15.4
15.46
15.46
15.53
15.55
15.58
15.58
15.64
15.65
15.74
15.79
15.72
15.78
15.8
15.75
15.67
15.59
15.5
15.45
15.42
15.45
15.57
15.47
15.38
15.21
15.2
15.24
15.28
15.28
15.32
15.31
15.26
15.15
15.1
15.03
15.12
14.89
14.77
14.7
14.58
14.53
14.62
14.58
14.65
14.67
14.63
14.57
14.51
14.53
14.58
14.56
14.57
14.63
14.65
14.64
14.69
14.55
14.47
14.48
14.38
14.3
14.38
14.39
14.36
14.37
14.35
14.38
14.42
14.49
14.5
14.56
14.68
14.6
14.64
14.6
14.51
14.5
14.41
14.37
14.19
14.25
14.29
14.22
14.17
14.18
14.11
14.2
14.28
14.25
14.43
14.56
14.6
14.6
14.66
14.77
14.91
15.09
15.13
15.15
15.09
15.06
15.09
15.02
15.04
15.04
15.01
15.12
15.13
15.15
15.14
15.2
15.19
15.25
15.22
15.16
15.13
15.1
15.17
15.09
15.13
15.1
14.94
14.86
14.85
14.87
14.9
15
15.05
15.15
15.16
15.2
15.28
15.27
15.24
15.22
15.03
15.05
15.07
15.07
15.04
14.91
14.77
14.79
14.86
14.89
14.83
14.78
14.65
14.66
14.67
14.67
14.73
14.77
14.79
14.84
14.83
14.85
14.75
14.61
14.46
14.44
14.28
14.34
14.33
14.3
14.33
14.39
14.34
14.37
14.47
14.46
14.41
14.36
14.41
4/30/06 14.41
FUND SNAPSHOT
------------------------------------
Common Share Price $14.41
------------------------------------
Common Share
Net Asset Value $15.13
------------------------------------
Premium/(Discount) to NAV -4.76%
------------------------------------
Market Yield 5.95%
------------------------------------
Taxable-Equivalent Yield1 8.26%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $594,021
------------------------------------
Average Effective Maturity
on Securities (Years) 15.30
------------------------------------
Leverage-Adjusted Duration 8.14
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.85% 1.94%
------------------------------------
1-Year 5.44% 3.55%
------------------------------------
5-Year 6.16% 8.24%
------------------------------------
Since
Inception 5.98% 7.35%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
IIllinois 24.8%
------------------------------------
Texas 10.2%
------------------------------------
New York 8.6%
------------------------------------
Washington 7.6%
------------------------------------
Florida 5.4%
------------------------------------
Wisconsin 4.6%
------------------------------------
New Jersey 4.4%
------------------------------------
Pennsylvania 3.3%
------------------------------------
Ohio 2.8%
------------------------------------
Louisiana 2.7%
------------------------------------
Indiana 2.6%
------------------------------------
Colorado 2.5%
------------------------------------
Michigan 2.4%
------------------------------------
Rhode Island 2.2%
------------------------------------
California 1.8%
------------------------------------
Other 14.1%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 19.3%
------------------------------------
Tax Obligation/General 16.1%
------------------------------------
Tax Obligation/Limited 13.8%
------------------------------------
Health Care 13.1%
------------------------------------
Transportation 11.9%
------------------------------------
Utilities 7.6%
------------------------------------
Consumer Staples 6.3%
------------------------------------
Other 11.9%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
12
Nuveen Dividend Advantage Municipal Fund 2
NXZ
PERFORMANCE
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total municipal bonds)
AAA/U.S. Guaranteed 61%
AA 7%
A 11%
BBB 11%
BB or Lower 8%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.086
Jun 0.086
Jul 0.086
Aug 0.086
Sep 0.086
Oct 0.086
Nov 0.086
Dec 0.086
Jan 0.086
Feb 0.086
Mar 0.082
Apr 0.082
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 15.38
15.42
15.4
15.43
15.39
15.39
15.52
15.39
15.45
15.5
15.53
15.52
15.55
15.5
15.41
15.47
15.5
15.51
15.54
15.59
15.62
15.69
15.77
15.72
15.76
15.86
15.9
15.84
15.84
15.65
15.64
15.7
15.89
15.84
15.81
15.82
15.84
15.94
16
15.92
15.84
15.96
16.05
15.98
15.92
16
16.05
16.08
16.16
16.22
16.1
16.04
16.06
15.83
16.01
15.99
15.94
15.99
15.87
15.82
15.97
16
16
16
16.01
16.07
16.14
16.12
16.03
16.01
15.99
16.02
15.94
16
16.03
15.99
15.97
16
16.07
16.11
16.29
16.24
16.29
16.32
16.22
16.2
16.39
16.59
16.64
16.68
16.7
16.85
16.79
16.85
16.6
16.33
16.31
16.46
16.45
16.32
16.4
16.39
16.15
16.14
16.09
16.15
16.19
16.25
16.27
16.24
16.22
16.19
16.27
16.21
16.3
16.01
15.64
15.6
15.67
15.58
15.49
15.5
15.82
15.55
15.56
15.45
15.5
15.45
15.64
15.58
15.71
15.74
15.8
15.86
15.99
15.96
15.8
15.84
15.74
15.68
15.74
15.95
15.9
15.95
16.01
15.95
16
16.15
16.3
16.18
16.21
16.03
16.02
16.07
16.12
16.3
16.18
16.3
15.95
15.84
16.12
15.75
15.88
16.09
16.11
16.1
16.13
16.4
16.39
16.43
16.47
16.47
16.54
16.52
16.55
16.72
16.75
16.75
16.57
16.62
16.5
16.38
16.53
16.68
16.8
16.8
16.82
16.8
16.88
16.95
17.2
17.15
17.01
16.92
16.75
16.66
16.7
16.66
16.13
16.17
16
15.95
15.95
16.05
16.14
16.05
16.15
16.13
16.19
16.29
16.3
16.22
16.25
16.19
16.19
16.09
16.13
16.15
16.15
16.23
16.15
16.22
16.38
16.32
16.38
16.29
16.27
16.6
16.55
16.6
16.56
16.62
16.56
16.62
16.68
16.62
16.65
16.6
16.4
16.3
16.16
16.15
16.08
16.09
16.19
16.19
16.15
16.13
16.36
16.22
16.05
16.14
16.2
16.2
4/30/06 15.64
FUND SNAPSHOT
------------------------------------
Common Share Price $16.20
------------------------------------
Common Share
Net Asset Value $15.71
------------------------------------
Premium/(Discount) to NAV 3.12%
------------------------------------
Market Yield 6.07%
------------------------------------
Taxable-Equivalent Yield1 8.43%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $460,507
------------------------------------
Average Effective Maturity
on Securities (Years) 21.76
------------------------------------
Leverage-Adjusted Duration 6.85
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 6.82% 2.66%
------------------------------------
1-Year 12.82% 4.87%
------------------------------------
5-Year 8.48% 8.88%
------------------------------------
Since
Inception 8.33% 8.53%
------------------------------------
STATES
(as a % of total municipal bonds)
------------------------------------
Texas 16.9%
------------------------------------
Michigan 9.7%
------------------------------------
California 7.4%
------------------------------------
Illinois 7.3%
------------------------------------
New York 4.4%
------------------------------------
Colorado 4.1%
------------------------------------
Washington 4.1%
------------------------------------
New Mexico 3.7%
------------------------------------
Florida 3.4%
------------------------------------
Missouri 3.4%
------------------------------------
Indiana 3.3%
------------------------------------
Louisiana 2.9%
------------------------------------
Alabama 2.9%
------------------------------------
Nevada 2.8%
------------------------------------
Massachusetts 2.7%
------------------------------------
Kansas 2.6%
------------------------------------
Oregon 2.6%
------------------------------------
Pennsylvania 2.5%
------------------------------------
Other 13.3%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 17.8%
------------------------------------
Tax Obligation/Limited 15.6%
------------------------------------
U.S. Guaranteed 13.6%
------------------------------------
Transportation 13.4%
------------------------------------
Water and Sewer 8.8%
------------------------------------
Utilities 7.0%
------------------------------------
Tax Obligation/General 6.1%
------------------------------------
Consumer Staples 5.5%
------------------------------------
Other 12.2%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
13
Nuveen Dividend Advantage Municipal Fund 3
NZF
PERFORMANCE
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 76%
AA 9%
A 2%
BBB 6%
BB or Lower 2%
N/R 5%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.0805
Jun 0.0805
Jul 0.0805
Aug 0.0805
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Feb 0.077
Mar 0.077
Apr 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 14.35
14.44
14.44
14.41
14.3
14.39
14.47
14.35
14.41
14.41
14.48
14.45
14.48
14.48
14.47
14.49
14.52
14.56
14.56
14.61
14.67
14.69
14.78
14.77
14.78
14.85
14.85
14.9
14.91
14.77
14.76
14.71
14.75
14.68
14.72
14.75
14.82
14.86
14.92
14.86
14.82
14.9
14.99
15
15.05
15.13
15.15
15.19
15.26
15.31
15.25
15.24
15.18
14.95
15.04
14.95
14.94
14.98
14.98
14.98
15
15.05
15.1
15.1
15.14
15.13
15.12
15.11
15.03
15
15.03
15.09
15.05
15.06
15.08
15.12
15.06
15.11
15.17
15.13
15.06
15.08
15.13
15.17
15.18
15.2
15.26
15.35
15.42
15.47
15.3
15.32
15.41
15.4
15.21
15.08
14.91
14.9
14.91
14.94
14.93
14.56
14.47
14.4
14.35
14.51
14.5
14.53
14.5
14.5
14.45
14.49
14.48
14.45
14.53
14.33
14.08
14.1
14.1
14.05
14.09
14.09
14.33
14.35
14.38
14.3
14.36
14.37
14.41
14.5
14.52
14.52
14.55
14.66
14.61
14.67
14.53
14.53
14.49
14.37
14.54
14.45
14.5
14.41
14.43
14.44
14.42
14.54
14.52
14.43
14.46
14.48
14.55
14.61
14.48
14.5
14.66
14.69
14.46
14.47
14.4
14.4
14.39
14.41
14.42
14.49
14.61
14.52
14.71
14.82
14.91
14.91
14.99
15.01
15.15
15.3
15.3
15.4
15.25
15.35
15.26
15.2
15.16
15.24
15.28
15.29
15.38
15.38
15.31
15.37
15.4
15.49
15.45
15.4
15.38
15.37
15.4
15.4
15.41
15.43
15.35
15.32
15.33
15.4
15.35
15.34
15.15
15.1
15.15
15.2
15.21
15.24
15.15
15.13
15.17
15.1
15.12
15.13
15.19
15.17
15.19
15.3
15.34
15.32
15.33
15.29
15.35
15.49
15.45
15.48
15.45
15.4
15.28
15.26
15.35
15.35
15.4
15.38
15.32
15.26
15.29
15.2
15.25
15.02
15.08
15.09
15.05
14.95
15
15.03
15
15.15
15.1
4/30/06 15.1
FUND SNAPSHOT
------------------------------------
Common Share Price $15.10
------------------------------------
Common Share
Net Asset Value $15.23
------------------------------------
Premium/(Discount) to NAV -0.85%
------------------------------------
Market Yield 6.12%
------------------------------------
Taxable-Equivalent Yield1 8.50%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $613,899
------------------------------------
Average Effective Maturity
on Securities (Years) 17.47
------------------------------------
Leverage-Adjusted Duration 6.73
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 8.03% 2.44%
------------------------------------
1-Year 12.23% 4.11%
------------------------------------
Since
Inception 6.78% 7.75%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 12.4%
------------------------------------
Texas 12.1%
------------------------------------
Washington 10.7%
------------------------------------
California 7.2%
------------------------------------
Michigan 6.1%
------------------------------------
Nevada 5.3%
------------------------------------
Colorado 5.1%
------------------------------------
Iowa 4.0%
------------------------------------
Indiana 3.9%
------------------------------------
Wisconsin 3.0%
------------------------------------
New York 2.9%
------------------------------------
Louisiana 2.3%
------------------------------------
Kentucky 2.1%
------------------------------------
Missouri 1.7%
------------------------------------
Oregon 1.7%
------------------------------------
New Jersey 1.6%
------------------------------------
Georgia 1.6%
------------------------------------
Ohio 1.5%
------------------------------------
Other 14.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Transportation 18.0%
------------------------------------
Health Care 16.3%
------------------------------------
U.S. Guaranteed 15.9%
------------------------------------
Tax Obligation/General 13.0%
------------------------------------
Utilities 7.3%
------------------------------------
Water and Sewer 6.6%
------------------------------------
Education and
Civic Organizations 5.8%
------------------------------------
Tax Obligation/Limited 4.9%
------------------------------------
Other 12.2%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
14
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.2% (0.8% OF TOTAL INVESTMENTS)
Jefferson County, Alabama, Sewer Revenue Refunding Warrants,
Series 1997A:
$ 3,640 5.625%, 2/01/22 (Pre-refunded 2/01/07) - FGIC Insured 2/07 at 101.00 AAA $ 3,727,979
3,820 5.375%, 2/01/27 (Pre-refunded 2/01/07) - FGIC Insured 2/07 at 100.00 AAA 3,868,094
Jefferson County, Alabama, Sewer Revenue Refunding Warrants,
Series 1997A:
1,435 5.625%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 1,468,349
1,505 5.375%, 2/01/27 - FGIC Insured 2/07 at 100.00 AAA 1,521,103
------------------------------------------------------------------------------------------------------------------------------------
10,400 Total Alabama 10,585,525
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/12 at 100.00 AAA 1,075,380
Series 2002B, 5.250%, 7/01/22 (Pre-refunded 7/01/12)
Phoenix, Arizona, Civic Improvement Corporation, Senior Lien
Airport Revenue Bonds, Series 2002B:
5,365 5.750%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AAA 5,815,875
5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AAA 5,485,534
------------------------------------------------------------------------------------------------------------------------------------
11,420 Total Arizona 12,376,789
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,080 Independence County, Arkansas, Hydroelectric Power Revenue 5/13 at 100.00 A 5,215,738
Bonds, Series 2003, 5.350%, 5/01/28 - ACA Insured
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 981,960
Washington Regional Medical Center, Series 2005A, 5.000%, 2/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,080 Total Arkansas 6,197,698
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.7% (9.2% OF TOTAL INVESTMENTS)
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 2,665,635
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
11,000 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 5,555,660
Lease Revenue Bonds, Public Improvement Project,
Series 1997C, 0.000%, 9/01/20 - FSA Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
4,000 6.000%, 5/01/15 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 4,512,600
3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,477,800
3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,012,750
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
2,380 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 2,432,979
Bonds, J. David Gladstone Institutes, Series 2001,
5.250%, 10/01/34
5,300 California, General Obligation Bonds, Series 2004, 2/09 at 100.00 A 5,346,746
5.100%, 2/01/34
5,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 A 5,102,950
5.000%, 3/01/31
6,435 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 7,364,150
6.000%, 4/01/16 - AMBAC Insured
3,935 East Bay Municipal Utility District, Alameda and Contra Costa 6/06 at 100.00 AAA 3,938,935
Counties, California, Water System Subordinated Revenue
Refunding Bonds, Series 1996, 4.750%, 6/01/21 (Pre-refunded
6/01/06) - FGIC Insured
2,990 East Bay Municipal Utility District, Alameda and Contra Costa 6/06 at 100.00 AAA 2,990,538
Counties, California, Water System Subordinated Revenue
Refunding Bonds, Series 1996, 4.750%, 6/01/21 - FGIC Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 11,137,600
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
8,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 8,054,880
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/45
15
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,000 Mt. Diablo Hospital District, California, Insured Hospital 6/06 at 100.00 AAA $ 1,024,560
Revenue Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC
Insured (ETM)
13,450 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 16,577,798
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.200%, 8/01/17 - MBIA Insured
14,535 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 15,458,699
Residential Mortgage Revenue Refunding Bonds, Series 1991A,
7.150%, 2/01/10 (ETM)
2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,029,987
Restructured Single Family Mortgage Revenue Bonds,
Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) (ETM)
2,000 San Francisco Airports Commission, California, Revenue Bonds, 5/09 at 101.00 AAA 2,049,160
San Francisco International Airport, Second Series 1999,
Issue 23B, 5.125%, 5/01/30 - FGIC Insured
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,087,460
Refunding Bonds, San Francisco International Airport, Second
Series 2001, Issue 27B, 5.125%, 5/01/26 - FGIC Insured
3,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 712,470
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AAA 18,717,813
California, General Obligation Refunding Bonds, Series 1997A,
7.200%, 2/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
122,770 Total California 125,251,170
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.6% (3.7% OF TOTAL INVESTMENTS)
3,000 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 3,153,090
Charter School Revenue Bonds, Peak-to-Peak Charter School,
Series 2004, 5.250%, 8/15/34 - XLCA Insured
5,860 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA 6,066,272
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
7,575 Denver City and County, Colorado, Airport System Revenue 11/07 at 101.00 AAA 7,794,827
Bonds, Series 1997E, 5.250%, 11/15/23 - MBIA Insured
20,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 21,200,799
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured
10,615 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 5,073,758
Bonds, Series 1997B, 0.000%, 9/01/21 - MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,715,900
Bonds, Series 2000B, 0.000%, 9/01/32 - MBIA Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 788,024
Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured
4,125 Municipal Subdistrict Northern Colorado Water District, 12/07 at 101.00 AAA 4,254,608
Revenue Bonds, Series 1997G, 5.250%, 12/01/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
61,930 Total Colorado 51,047,278
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.0% (1.4% OF TOTAL INVESTMENTS)
6,110 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 6,470,612
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
5,590 District of Columbia, General Obligation Bonds, Series 1999B, 6/09 at 101.00 AAA 5,900,860
5.500%, 6/01/13 - FSA Insured
6,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 6,248,640
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.250%, 10/01/10 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,700 Total District of Columbia 18,620,112
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.8% (3.9% OF TOTAL INVESTMENTS)
Broward County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Venice Homes Apartments, Series 2001A:
1,545 5.700%, 1/01/32 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,565,487
1,805 5.800%, 1/01/36 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,835,523
2,505 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 2,583,356
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 -
FSA Insured (Alternative Minimum Tax)
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 10,050 Florida State Board of Education, Full Faith and Credit Public 6/10 at 101.00 AAA $ 10,813,298
Education Capital Outlay Refunding Bonds, Series 1999D,
5.750%, 6/01/22
7,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 7,379,960
Bonds, Tampa International Airport, Series 2003A, 5.250%,
10/01/17 - MBIA Insured (Alternative Minimum Tax)
10,000 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 10,252,200
5.000%, 10/01/41 - FSA Insured
10,750 Martin County Industrial Development Authority, Florida, 6/06 at 101.00 BB+ 10,906,090
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative
Minimum Tax)
2,570 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 2,653,833
Multifamily Mortgage Revenue Bonds, Country Club Villas II
Project, Series 2001-1A, 5.850%, 1/01/37 - FSA Insured
(Alternative Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/15 at 100.00 AAA 3,562,545
Miami International Airport, Series 2005A, 5.000%, 10/01/37 -
XLCA Insured (Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,824,151
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
51,425 Total Florida 53,376,443
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.2% (2.1% OF TOTAL INVESTMENTS)
4,920 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 5,275,027
Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) -
FGIC Insured
5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 5,552,150
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AAA 2,104,540
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - MBIA Insured (Alternative
Minimum Tax)
15,000 Private Colleges and Universities Authority, Georgia, Revenue 11/09 at 101.00 AA (4) 15,993,150
Bonds, Emory University, Series 1999A, 5.500%, 11/01/25
(Pre-refunded 11/01/09)
------------------------------------------------------------------------------------------------------------------------------------
26,920 Total Georgia 28,924,867
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
775 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 A1 797,188
Bonds, Series 2000D, 6.200%, 7/01/14 (Alternative
Minimum Tax)
490 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa2 507,713
Bonds, Series 2000G-2, 5.950%, 7/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,265 Total Idaho 1,304,901
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 21.2% (14.2% OF TOTAL INVESTMENTS)
10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 5,262,200
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/19 - FGIC Insured
10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 4,998,000
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, City Colleges of
Chicago Capital Improvement Project, Series 1999:
32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AAA 15,946,347
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AAA 15,414,359
3,000 Chicago, Illinois, General Obligation Bonds, Library Projects, 1/08 at 102.00 AAA 3,157,020
Series 1997, 5.750%, 1/01/17 (Pre-refunded 1/01/08) -
FGIC Insured
9,145 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1996A, 1/07 at 101.00 AAA 9,338,142
5.500%, 1/01/29 - MBIA Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,714,467
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
DuPage County Forest Preserve District, Illinois, General
Obligation Bonds, Series 2000:
8,000 0.000%, 11/01/18 No Opt. Call AAA 4,469,920
15,285 0.000%, 11/01/19 No Opt. Call AAA 8,085,612
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,090,240
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
17
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,090 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- $ 1,145,579
Lake Forest Hospital, Series 2002A, 5.750%, 7/01/29
3,000 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 3,220,800
Lake Forest Hospital, Series 2003, 6.000%, 7/01/33
4,580 Illinois Health Facilities Authority, Revenue Bonds, Midwest 8/10 at 102.00 Aaa 4,929,637
Care Center IX Inc., Series 2000, 6.250%, 8/20/35
2,955 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A 3,011,204
Cross Hospital and Medical Centers, Series 1999,
5.250%, 8/15/15 (Mandatory put 4/01/08)
4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/06 at 100.00 BBB- 4,417,561
Proctor Community Hospital, Series 1991, 7.375%, 1/01/23
7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, Community 12/13 at 57.71 AAA 2,826,702
College District 516, General Obligation Bonds, Series 2005E,
0.000%, 12/15/24 - FGIC Insured
5,000 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 5,426,500
School District 300, Carpentersville, Illinois, General Obligation
Bonds, Series 2000, 5.500%, 12/01/19 (Pre-refunded 12/01/11) -
MBIA Insured
3,700 Libertyville, Illinois, Affordable Housing Revenue Bonds, 11/09 at 100.00 A3 3,804,303
Liberty Towers Project, Series 1999A, 7.000%, 11/01/29
(Alternative Minimum Tax)
6,000 McHenry County Conservation District, Illinois, General 2/11 at 100.00 AAA 6,483,540
Obligation Bonds, Series 2001A, 5.625%, 2/01/21 (Pre-refunded
2/01/11) - FGIC Insured
10,650 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 13,827,534
Bonds, McCormick Place Hospitality Facility, Series 1996A,
7.000%, 7/01/26 (ETM)
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A:
9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 5,214,650
16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 8,254,511
23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 10,613,985
13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 5,304,260
5,100 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 5,752,545
Refunding Bonds, McCormick Place Expansion Project,
Series 1998A, 5.500%, 12/15/23 - FGIC Insured
5,180 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 5,925,143
Refunding Bonds, McCormick Place Expansion Project,
Series 1998A, 5.500%, 12/15/23 - FGIC Insured (ETM)
17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 20,611,743
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999, 5.750%, 6/01/23 - FSA Insured
6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding Bonds, 10/09 at 102.00 AAA 6,548,638
Villa Vianney, Series 1999A, 6.450%, 10/01/29
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 4,387,800
Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23
(WI/DD, Settling 5/08/06) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
281,330 Total Illinois 194,182,942
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.8% (4.5% OF TOTAL INVESTMENTS)
2,465 Danville Multi-School Building Corporation, Indiana, First 7/11 at 100.00 AAA 2,599,663
Mortgage Refunding Bonds, Series 2001, 5.250%, 7/15/18 -
AMBAC Insured
14,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 15,121,960
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,894,925
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
Indiana Health Facility Financing Authority, Revenue Bonds,
Ancilla Systems Inc. Obligated Group, Series 1997:
15,380 5.250%, 7/01/17 - MBIA Insured (ETM) 7/07 at 101.00 AAA 15,782,956
4,320 5.250%, 7/01/22 - MBIA Insured (ETM) 7/07 at 101.00 AAA 4,429,901
2,250 5.250%, 7/01/22 - MBIA Insured (ETM) 7/07 at 101.00 AAA 2,307,240
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,048,080
Community Hospitals of Indiana, Series 2005A,
5.000%, 5/01/35 - AMBAC Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 6,715 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA $ 7,069,753
Bonds, Series 2000, 5.375%, 12/01/25
1,285 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA (4) 1,371,840
Bonds, Series 2000, 5.375%, 12/01/25 (Pre-refunded 12/01/10)
3,105 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 AAA 3,279,097
5.250%, 8/01/20 - FGIC Insured
1,000 Marion County Convention and Recreational Facilities Authority, 6/11 at 100.00 AAA 1,035,230
Indiana, Excise Taxes Lease Rental Revenue Refunding Senior
Bonds, Series 2001A, 5.000%, 6/01/21 - MBIA Insured
2,395 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,281,669
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/26 -
MBIA Insured
1,800 Sunman Dearborn High School Building Corporation, Indiana, 1/15 at 100.00 AAA 1,854,342
First Mortgage Bonds, Series 2005, 5.000%, 7/15/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
59,215 Total Indiana 62,076,656
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 5,431,200
Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.3% (0.9% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AA+ 3,937,924
Series 2004A, 5.000%, 3/01/23
5,790 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 5,317,652
General Obligation Bonds, Series 2000, 3.500%, 9/01/17
3,200 Wyandotte County Unified School District 500, Kansas, 9/11 at 100.00 AAA 3,022,240
General Obligation Bonds, Series 2001, 4.000%, 9/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Kansas 12,277,816
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,700 Louisville and Jefferson County Metropolitan Sewer District, 5/07 at 101.00 AAA 3,833,311
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 1997A, 6.250%, 5/15/26 (Pre-refunded 5/15/07) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.9% (4.7% OF TOTAL INVESTMENTS)
1,090 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 1,116,836
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Refunding Bonds, Series 1997B-1,
5.750%, 10/01/26
4,000 Lafayette City and Parish, Louisiana, Utilities Revenue 11/14 at 100.00 AAA 4,246,400
Bonds, Series 2004, 5.250%, 11/01/25 - MBIA Insured
4,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 4,850,462
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA Insured
35,700 Louisiana Stadium and Exposition District, Hotel Occupancy 7/06 at 102.00 AAA 36,532,162
Tax Bonds, Series 1996, 5.750%, 7/01/26 (Pre-refunded
7/01/06) - FGIC Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
10,000 5.500%, 5/15/30 5/11 at 101.00 BBB 10,276,300
6,380 5.875%, 5/15/39 5/11 at 101.00 BBB 6,690,068
------------------------------------------------------------------------------------------------------------------------------------
61,820 Total Louisiana 63,712,228
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,680 Portland, Maine, Airport Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,808,425
5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7% (1.2% OF TOTAL INVESTMENTS)
7,720 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA 7,986,263
Bonds, Baltimore-Washington International Airport Passenger
Facility, Series 2002B, 5.125%, 3/01/20 - AMBAC Insured
(Alternative Minimum Tax)
7,090 Takoma Park, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 7,836,293
and Improvement Bonds, Washington Adventist Hospital,
Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
14,810 Total Maryland 15,822,556
------------------------------------------------------------------------------------------------------------------------------------
19
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.2% (2.8% OF TOTAL INVESTMENTS)
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
$ 4,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA $ 4,152,640
5,625 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,769,338
1,190 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AAA 1,210,420
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 -
MBIA Insured (Alternative Minimum Tax)
4,365 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA 4,524,192
Revenue Bonds, Berkshire Health System, Series 2005F,
5.000%, 10/01/19 - AGC Insured
1,530 Massachusetts Health and Educational Facilities Authority, 7/08 at 101.00 Aaa 1,531,913
Revenue Bonds, Southcoast Health System Obligated Group,
Series 1998A, 4.750%, 7/01/27 - MBIA Insured
5,745 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 5,924,244
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
890 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/12 at 100.00 AA (4) 954,881
Series 2002C, 5.250%, 11/01/30 (Pre-refunded 11/01/12)
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
1,255 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 1,343,377
3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 4,008,723
8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 AAA 9,026,575
Massachusetts, Lease Revenue Bonds, Series 2000,
5.375%, 6/15/33 (Pre-refunded 6/15/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
36,845 Total Massachusetts 38,446,303
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.8% (4.6% OF TOTAL INVESTMENTS)
17,000 Birmingham City School District, Oakland County, Michigan, 11/07 at 100.00 AAA 17,061,200
School Building and Site Bonds, Series 1998, 4.750%, 11/01/24 -
FSA Insured
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 5,142,350
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
3,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 3,074,580
Bonds, Series 1997A, 5.000%, 7/01/21 (Pre-refunded 7/01/07) -
MBIA Insured
4,030 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 4,146,830
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 AA- 1,543,485
Program, Series 2001I, 5.000%, 10/15/24
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,145,750
Facilities Program, Series 2003II, 5.000%, 10/15/29 -
MBIA Insured
7,115 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 7,544,604
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.500%, 3/01/16
5,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 5,336,200
Refunding Bonds, Sisters of Mercy Health Corporation,
Series 1993P, 5.375%, 8/15/14 - MBIA Insured (ETM)
3,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 3,144,120
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 10,363,800
Metropolitan Wayne County Airport, Series 1998A,
5.375%, 12/01/16 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
60,645 Total Michigan 62,502,919
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.1% (2.1% OF TOTAL INVESTMENTS)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,133,560
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 - FGIC Insured
20,770 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 25,371,177
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,770 Total Minnesota 28,504,737
------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.3% (0.9% OF TOTAL INVESTMENTS)
$ 9,750 Mississippi Business Finance Corporation, Pollution Control 10/06 at 100.00 BBB- $ 9,830,048
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,472,773
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
12,225 Total Mississippi 12,302,821
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6% (1.1% OF TOTAL INVESTMENTS)
6,350 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AAA 6,714,554
Improvement Projects, Series 2003B, 5.250%, 9/01/17 -
FGIC Insured
1,845 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 1,940,922
Bonds, BJC Health System, Series 2003, 5.250%, 5/15/18
3,815 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 4,097,501
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured
2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,059,280
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,010 Total Missouri 14,812,257
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.7% (0.5% OF TOTAL INVESTMENTS)
670 Montana Board of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 671,367
Series 1997A-1, 6.150%, 6/01/30 (Alternative Minimum Tax)
740 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 741,939
Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
4,795 Montana Higher Education Student Assistance Corporation, 12/08 at 101.00 A2 4,876,323
Student Loan Revenue Bonds, Subordinate Series 1998B,
5.500%, 12/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,205 Total Montana 6,289,629
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,430 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 1,438,351
Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.4% (1.6% OF TOTAL INVESTMENTS)
10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,852,769
Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) -
MBIA Insured
5,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AAA 5,274,650
Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19 -
FGIC Insured
4,980 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 5,161,571
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,880 Total Nevada 22,288,990
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.6% (1.1% OF TOTAL INVESTMENTS)
3,265 New Hampshire Health and Education Facilities Authority, 1/15 at 100.00 A 3,277,309
Revenue Bonds, Southern New Hampshire University,
Series 2005, 5.000%, 1/01/30 - ACA Insured
New Hampshire Housing Finance Authority, FHLMC Multifamily
Housing Remarketed Revenue Bonds, Countryside LP, Series 1994:
3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,895,940
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,266,623
------------------------------------------------------------------------------------------------------------------------------------
13,935 Total New Hampshire 14,439,872
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.2% (4.9% OF TOTAL INVESTMENTS)
3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100.00 AAA 3,129,660
Sublease Revenue Bonds, Light Rail Transit System,
Series 1999A, 5.250%, 5/01/17 (Pre-refunded 5/01/09) -
FSA Insured
2,590 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,666,690
Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA
Insured (Alternative Minimum Tax)
21
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 8,750 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102.00 AAA $ 9,073,138
System Bonds, Series 1996B, 5.250%, 6/15/16 (Pre-refunded
6/15/07)
4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,991,625
System Bonds, Series 2001C, 5.500%, 12/15/18 - FSA Insured
9,250 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 10,141,978
System Bonds, Series 2003C, 5.500%, 6/15/23 (Pre-refunded
6/15/13)
10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,399,500
5.000%, 1/01/20 - FSA Insured
13,775 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 BBB 14,292,802
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
4,300 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 BBB 4,775,537
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
West Deptford Township, Gloucester County, New Jersey,
General Obligation Bonds, Series 2000:
3,150 5.500%, 9/01/21 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,371,666
3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,569,684
------------------------------------------------------------------------------------------------------------------------------------
62,650 Total New Jersey 66,412,280
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.9% (8.6% OF TOTAL INVESTMENTS)
5,500 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 5,667,860
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
35 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 35,741
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.375%, 2/15/26 - MBIA Insured
2,070 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,163,295
Bonds, 853 Schools Program, Gateway-Longview Inc.,
Series 1998A, 5.500%, 7/01/18 - AMBAC Insured
2,250 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 2,393,303
Bonds, State University Dormitory Facilities, Series 1999C,
5.500%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 AA 1,704,678
9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 9,876,925
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 8/07 at 101.00 AAA 1,544,910
St. Barnabas Hospital, Series 1997, 5.450%, 8/01/35 -
AMBAC Insured
3,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 3,140,910
Resolution Consolidated Revenue Bonds, City University
System, Series 1997-1, 5.375%, 7/01/24 (Pre-refunded
1/01/08) - FSA Insured
17,000 Dormitory Authority of the State of New York, Third General 7/09 at 101.00 AAA 18,082,730
Resolution Consolidated Revenue Bonds, City University
System, Series 1999-1, 5.500%, 7/01/29 (Pre-refunded
7/01/09) - FSA Insured
1,500 Hempstead Industrial Development Agency, New York, Resource 12/10 at 100.00 BB+ 1,553,760
Recovery Revenue Refunding Bonds, American Ref-Fuel
Company of Hempstead LP, Series 2001, 5.000%, 12/01/10
(Mandatory put 6/01/10)
13,220 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 14,252,614
Tax Fund Bonds, Series 2002A, 5.500%, 11/15/26 - FSA Insured
7,270 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 7,361,384
Water and Sewerage System Revenue Bonds, Fiscal
Series 1996B, 5.750%, 6/15/26 (Pre-refunded 6/15/06) -
MBIA Insured
13,380 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 13,547,785
Water and Sewerage System Revenue Bonds, Fiscal
Series 1996B, 5.750%, 6/15/26 - MBIA Insured
3,495 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 3,537,814
Water and Sewerage System Revenue Bonds, Fiscal
Series 1997A, 5.500%, 6/15/24 (Pre-refunded 6/15/06) -
MBIA Insured
1,380 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 1,396,850
Water and Sewerage System Revenue Bonds, Fiscal
Series 1997A, 5.500%, 6/15/24 - MBIA Insured
10,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AA+ (4) 10,691,600
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000A, 5.750%, 6/15/30 (Pre-refunded 6/15/09)
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 7,810 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AAA $ 8,372,632
Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded 8/15/09)
5 New York City, New York, General Obligation Bonds, Fiscal 8/06 at 100.00 A+ 5,058
Series 1987D, 8.500%, 8/01/08
6,300 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 AAA 6,912,990
Series 2000A, 6.250%, 5/15/26 - FSA Insured
3,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 3,181,590
Pollution Control Revenue Bonds, Rochester Gas and Electric
Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured
(Alternative Minimum Tax)
2,320 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 2,442,450
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
111,850 Total New York 117,866,879
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 4,946,844
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45
2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/08 at 102.00 AAA 2,063,120
Revenue Bonds, Series 1998A, 5.000%, 1/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,900 Total North Carolina 7,009,964
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.9% (2.6% OF TOTAL INVESTMENTS)
7,500 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 7,622,850
5.000%, 1/01/31 - FSA Insured
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,712,598
Initiatives, Series 2004A, 5.000%, 5/01/30
3,495 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 3,514,083
Securities Program Residential Mortgage Revenue Bonds,
Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax)
6,600 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,652,602
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
13,600 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 14,053,288
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
34,845 Total Ohio 35,555,421
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.1% OF TOTAL INVESTMENTS)
3,400 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 3,400,816
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0% (0.7% OF TOTAL INVESTMENTS)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call Baa1 9,218,900
Portland General Electric Company, Series 1985B,
4.800%, 6/01/10
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.4% (2.3% OF TOTAL INVESTMENTS)
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Guaranteed Water Revenue Bonds, Series 1998:
3,125 0.000%, 5/15/22 - FSA Insured No Opt. Call AAA 1,441,563
3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,371,438
3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,308,612
3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,188,457
4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,523,785
2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 950,684
3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 993,930
3,415 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 3,594,219
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
23
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 11,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/08 at 102.00 AAA $ 11,186,230
Catholic Health East, Series 1998A, 4.875%, 11/15/18 -
AMBAC Insured
Pennsylvania Economic Development Financing Authority, Senior
Lien Resource Recovery Revenue Bonds, Northampton Generating
Project, Series 1994A:
2,100 6.400%, 1/01/09 (Alternative Minimum Tax) 7/06 at 100.00 BB 2,099,748
4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 7/06 at 100.00 BB 4,499,460
25 Pennsylvania Economic Development Financing Authority, No Opt. Call N/R 25,141
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994B, 6.750%, 1/01/07
(Alternative Minimum Tax)
600 Pennsylvania Economic Development Financing Authority, 7/06 at 100.00 N/R 598,788
Subordinate Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994C, 6.875%, 1/01/11 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
44,125 Total Pennsylvania 30,782,055
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,250 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,363,412
Revenue Bonds, Series 2000B, 5.875%, 7/01/21 (Pre-refunded
7/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 AAA 2,072,300
Bonds, Series 2002A, 5.000%, 7/15/23 - MBIA Insured
Rhode Island Health and Educational Building Corporation,
Revenue Refunding Bonds, Salve Regina University, Series 2002:
1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA 1,323,857
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,133,017
7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 6,750,520
Homeownership Opportunity Bond Program, Series 50A,
4.650%, 10/01/34
------------------------------------------------------------------------------------------------------------------------------------
11,340 Total Rhode Island 11,279,694
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.2% (2.8% OF TOTAL INVESTMENTS)
2,625 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,769,191
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/25 - MBIA Insured
22,855 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,692,401
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/31 -
AMBAC Insured
6,925 South Carolina, General Obligation Bonds, Series 1999A, 10/09 at 101.00 Aaa 6,931,787
4.000%, 10/01/14
21,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 22,000,019
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
53,405 Total South Carolina 38,393,398
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.3% (0.9% OF TOTAL INVESTMENTS)
2,860 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 AAA 2,959,042
Tennessee, Hospital Revenue Refunding and Improvement Bonds,
Johnson City Medical Center, Series 1998C, 5.125%, 7/01/25
(Pre-refunded 7/01/23) - MBIA Insured
1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,818,150
Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC
Insured (Alternative Minimum Tax)
6,000 Metropolitan Government of Nashville-Davidson County Health 12/17 at 100.00 AAA 6,904,080
and Educational Facilities Board, Tennessee, Revenue Refunding
and Improvement Bonds, Meharry Medical College, Series 1996,
6.000%, 12/01/19 - AMBAC Insured
500 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 502,235
Program Bonds, Series 2000-1, 6.375%, 7/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,060 Total Tennessee 12,183,507
------------------------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.4% (3.6% OF TOTAL INVESTMENTS)
$ 3,975 Bell County Health Facilities Development Corporation, Texas, 2/10 at 101.00 AAA $ 4,278,690
Revenue Bonds, Scott and White Memorial Hospital and Scott,
Sherwood and Brindley Foundation, Series 2000A, 6.125%, 8/15/23 -
MBIA Insured
Central Texas Regional Mobility Authority, Travis and Williamson
Counties, Toll Road Revenue Bonds, Series 2005:
4,000 5.000%, 1/01/35 - FGIC Insured 1/15 at 100.00 AAA 4,080,120
3,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 AAA 3,038,790
1,000 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/08 at 100.00 AA (4) 1,027,010
Series 1998, 5.250%, 2/15/15 (Pre-refunded 2/15/08)
1,000 Harlingen Independent School District, Cameron County, Texas, 8/09 at 100.00 AAA 1,058,510
Unlimited Tax School Building Bonds, Series 1999,
5.650%, 8/15/29 (Pre-refunded 8/15/09)
1,625 Harris County Health Facilities Development Corporation, 7/09 at 101.00 AAA 1,715,951
Texas, Revenue Bonds, Christus Health, Series 1999A,
5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured
4,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 4,098,080
Obligation Bonds, Series 2003, 5.000%, 2/15/27 -
AMBAC Insured
3,885 Houston Independent School District, Public Facility Corporation, No Opt. Call AAA 2,059,439
Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez
High School, Series 1998A, 0.000%, 9/15/19 - AMBAC Insured
Leander Independent School District, Williamson and Travis
Counties, Texas, Unlimited Tax School Building and Refunding
Bonds, Series 1998:
4,930 0.000%, 8/15/20 8/06 at 46.47 AAA 2,257,595
3,705 0.000%, 8/15/22 8/06 at 41.33 AAA 1,510,788
320 Lubbock Housing Finance Corporation, Texas, GNMA 6/07 at 102.00 AAA 323,046
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Refunding Bonds, Series 1997A, 6.125%, 12/01/17
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 AAA 3,554,855
5.000%, 3/01/27 - FGIC Insured
6,835 San Antonio, Texas, Electric and Gas System Revenue 2/09 at 100.00 Aa1 6,816,340
Refunding Bonds, New Series 1998A, 4.500%, 2/01/21
6,000 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 6,152,940
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
4,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 4,140,240
Refunding and Improvement Bonds, Series 1999,
5.000%, 3/01/22 - FSA Insured
1,740 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 AAA 1,817,256
State Participation Program, Series 1999C, 5.500%, 8/01/29 -
MBIA Insured
1,690 Webb County, Laredo, Texas, Combination Tax and Sewer 2/08 at 100.00 AAA 1,692,062
System, Revenue Certificates of Obligation, Series 1998A,
4.500%, 2/15/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
55,185 Total Texas 49,621,712
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.4% (2.9% OF TOTAL INVESTMENTS)
2,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 AAA 2,047,620
Bonds, Special Obligation Crossover, Sixth Series 1996B,
6.000%, 7/01/16 (Pre-refunded 7/01/06) - MBIA Insured
3,315 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 3,457,512
Refunding Bonds, Series 1997B, 5.750%, 7/01/19
(Pre-refunded 7/01/07) - MBIA Insured
6,685 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 6,956,612
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
Utah County, Utah, Hospital Revenue Bonds, IHC Health
Services Inc., Series 1997:
12,885 5.250%, 8/15/21 - MBIA Insured (ETM) 8/07 at 101.00 AAA 13,257,763
3,900 5.250%, 8/15/26 - MBIA Insured (ETM) 8/07 at 101.00 AAA 4,012,827
3,670 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 3,706,223
Series 2002A-1, 5.300%, 7/01/18 (Alternative Minimum Tax)
20 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AA 20,070
Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax)
25
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH (continued)
$ 1,875 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- $ 1,898,344
Series 2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax)
685 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 687,350
Series 2000E-1, Class II, 6.150%, 1/01/27 (Alternative
Minimum Tax)
2,230 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aa1 2,267,241
Series 2000E-1, Class III, 6.000%, 1/01/15 (Alternative
Minimum Tax)
955 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA 974,768
Series 2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax)
780 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 100.00 Aa2 796,887
Series 2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
39,000 Total Utah 40,083,217
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.8% (0.6% OF TOTAL INVESTMENTS)
4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AA 4,816,701
Loan Note, Series 2003, 5.000%, 10/01/33 - RAAI Insured
2,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 2,746,550
Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Virgin Islands 7,563,251
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.1% (2.8% OF TOTAL INVESTMENTS)
12,235 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA 4,539,674
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/26 - MBIA Insured
3,100 Cowlitz County Public Utilities District 1, Washington, 9/14 at 100.00 AAA 3,185,994
Electric Production Revenue Bonds, Series 2004, 5.000%,
9/01/28 - FGIC Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,371,500
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
2,015 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 2,193,529
Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded
3/01/10) - MBIA Insured
4,685 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 4,906,928
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 -
MBIA Insured
5,000 Washington State Housing Finance Commission, Non-Profit 7/09 at 101.00 AA 5,310,700
Housing Revenue Bonds, Kline Galland Center, Series 1999,
6.000%, 7/01/29 - RAAI Insured
12,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/11 at 100.00 Aa1 12,418,320
Series 2001D, 5.250%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
44,035 Total Washington 37,926,645
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.2% (1.5% OF TOTAL INVESTMENTS)
11,620 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 12,518,458
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/29 -
RAAI Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 7,490 Wisconsin Health and Educational Facilities Authority, Revenue 7/08 at 103.00 N/R $ 7,561,679
Bonds, Millennium Housing Foundation Inc., Series 1998,
6.100%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
19,110 Total Wisconsin 20,080,137
------------------------------------------------------------------------------------------------------------------------------------
$ 1,463,695 Total Investments (cost $1,290,078,842) - 148.9% 1,365,689,434
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 30,230,777
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.2)% (479,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 916,920,211
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
27
Nuveen Municipal Advantage Fund, Inc. (NMA)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.2% (2.1% OF TOTAL INVESTMENTS)
$ 10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA $ 10,521,900
Improvement Warrants, Series 1999A, 5.375%, 2/01/36
(Pre-refunded 2/01/09) - FGIC Insured
5,075 Lauderdale County and Florence Healthcare Authority, Alabama, 7/09 at 101.00 AAA 5,288,302
Revenue Bonds, Coffee Health Group, Series 1999A,
5.250%, 7/01/24 - MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 5,523,067
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,230 Total Alabama 21,333,269
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4% (0.2% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General Housing Purpose
Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,179,214
1,280 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,332,454
------------------------------------------------------------------------------------------------------------------------------------
2,405 Total Alaska 2,511,668
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Maricopa County Pollution Control Corporation, Arizona, 5/06 at 101.00 BBB 5,055,850
Remarketed Revenue Refunding Bonds, Public Service
Company of New Mexico, Series 1992A, 5.750%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.4% (7.5% OF TOTAL INVESTMENTS)
2,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,904,025
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
Calexico Unified School District, Imperial County, California,
General Obligation Bonds, Series 2005B:
4,070 0.000%, 8/01/32 - FGIC Insured No Opt. Call AAA 1,094,708
6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call AAA 1,557,822
3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,012,750
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
7,500 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 7,694,400
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.125%, 6/01/29
9,955 Capistrano Unified School District, Orange County, California, No Opt. Call AAA 2,846,433
Special Tax Bonds, Community Facilities District, Series 2005,
0.000%, 9/01/31 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,800 0.000%, 2/01/33 - FGIC Insured 2/15 at 38.73 AAA 936,890
3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call AAA 808,449
7,535 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,547,372
Securities Program Home Mortgage Revenue Bonds,
Series 1989, 7.750%, 5/01/22 (Alternative Minimum Tax) (ETM)
8,145 Cupertino Union School District, Santa Clara County, California, 8/13 at 55.54 AAA 3,076,448
General Obligation Bonds, Series 2003B, 0.000%, 8/01/25 -
FGIC Insured
2,990 East Bay Municipal Utility District, Alameda and Contra 6/06 at 100.00 AAA 2,990,538
Costa Counties, California, Water System Subordinated
Revenue Refunding Bonds, Series 1996, 4.750%, 6/01/21 -
FGIC Insured
2,000 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 656,460
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2004B, 0.000%, 10/01/28 -
MBIA Insured
3,360 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 1,175,966
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2002A, 0.000%, 7/01/27 -
MBIA Insured
2,315 Gateway Unified School District, California, General Obligation No Opt. Call AAA 624,888
Bonds, Series 2004B, 0.000%, 8/01/32 - FGIC Insured
3,000 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,109,190
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 0.000%, 6/01/26 - FSA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,275 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA $ 1,354,267
General Obligation Bonds, Series 2002, 5.250%, 8/01/23 -
FSA Insured
North Orange County Community College District, California,
General Obligation Bonds, Series 2003B:
7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AAA 3,022,142
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AAA 1,479,600
5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 5,806,300
Residential Mortgage Revenue Refunding Bonds, Series 1991B,
7.375%, 2/01/12 (ETM)
5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,505,600
Single Family Restructured Mortgage Revenue Bonds,
Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) (ETM)
9,315 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 11,357,407
Single Family Mortgage Revenue Bonds, Series 1989A,
7.600%, 1/01/23 (Alternative Minimum Tax) (ETM)
23,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 5,462,270
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
7,250 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 2,151,945
County, California, General Obligation Bonds, Series 2005A,
0.000%, 9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
132,950 Total California 76,175,870
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.3% (2.9% OF TOTAL INVESTMENTS)
8,350 Colorado Health Facilities Authority, Remarketed Revenue 7/06 at 102.00 AAA 8,542,217
Bonds, Kaiser Permanente System, Series 1994A,
5.350%, 11/01/16 (ETM)
2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 1,970,200
Revenue Bonds, Convention Center Hotel, Series 2006,
4.750%, 12/01/35 (WI/DD, Settling 5/02/06) - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
2,650 0.000%, 9/01/16 - MBIA Insured No Opt. Call AAA 1,661,921
8,160 0.000%, 9/01/26 - MBIA Insured No Opt. Call AAA 3,000,106
1,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 1,089,210
Bonds, Series 2000A, 5.750%, 9/01/35 - MBIA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
7,500 0.000%, 9/01/29 - MBIA Insured No Opt. Call AAA 2,368,275
10,000 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 2,715,900
Platte River Power Authority, Colorado, Power Revenue Refunding
Bonds, Series 2002EE:
2,000 5.375%, 6/01/17 6/12 at 100.00 AA 2,136,480
5,000 5.375%, 6/01/18 6/12 at 100.00 AA 5,341,200
------------------------------------------------------------------------------------------------------------------------------------
46,660 Total Colorado 28,825,509
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
355 District of Columbia Housing Finance Agency, GNMA 6/06 at 102.00 AAA 359,235
Collateralized Single Family Mortgage Revenue Bonds,
Series 1988F-1, 6.375%, 6/01/26 (Alternative Minimum Tax)
2,165 District of Columbia Housing Finance Agency, GNMA/FNMA 6/07 at 102.00 AAA 2,169,633
Single Family Mortgage Revenue Bonds, Series 1997B,
5.900%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,520 Total District of Columbia 2,528,868
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.9% (1.3% OF TOTAL INVESTMENTS)
2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,859,305
Stratford Point Apartments, Series 2000O-1, 5.850%, 12/01/31 -
FSA Insured (Alternative Minimum Tax)
10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 6/06 at 100.00 AAA 10,131,114
Health System - St. Mary's Hospital, Series 1993,
5.125%, 12/01/23 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,900 Total Florida 12,990,419
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/14 at 100.00 AAA 4,212,600
Series 2004, 5.250%, 10/01/39 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
29
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 2,215 Hawaii Housing and Community Development Corporation, 7/10 at 102.00 AAA $ 2,303,268
GNMA Collateralized Multifamily Housing Revenue Bonds,
Sunset Villas, Series 2000, 5.700%, 7/20/31
825 Hawaii Housing Finance and Development Corporation, Single 7/07 at 102.00 AAA 830,478
Family Mortgage Purchase Revenue Bonds, Series 1997A,
5.750%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,040 Total Hawaii 3,133,746
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.3% (11.4% OF TOTAL INVESTMENTS)
12,500 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 12,953,750
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
4,000 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 4,203,160
Obligation Bonds, Dedicated Tax Revenues, Series 1997,
5.750%, 12/01/20 (Pre-refunded 12/01/07) - AMBAC Insured
2,175 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 717,141
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/28 - FGIC Insured
2,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 637,988
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/31 - FGIC Insured
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,531,616
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded 7/01/10) - FGIC Insured
5,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 5,142,000
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
5,000 Chicago, Illinois, Second Lien Wastewater Transmission 1/08 at 102.00 AAA 5,221,450
Revenue Bonds, Series 1997, 5.250%, 1/01/28 (Pre-refunded
1/01/08) - AMBAC Insured
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 6,278,340
Medical Center, Series 2002, 5.750%, 5/15/22
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 2/07 at 102.00 A 6,315,303
Lincoln Health Center, Series 1996B, 5.750%, 2/15/22
4,210 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 BBB- 4,196,486
Health Services, Series 1997A, 5.375%, 8/15/16
10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102.00 AAA 10,442,827
Rush-Presbyterian-St. Luke's Medical Center Obligated Group,
Series 1996A, 6.250%, 11/15/20 - MBIA Insured
10,740 Lake and McHenry Counties Community Unit School 1/15 at 66.94 Aaa 4,637,639
District 118, Wauconda, Illinois, General Obligation Bonds,
Series 2005B, 0.000%, 1/01/23 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 1999A:
13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 14,251,267
10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,916,664
2,025 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 352,978
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/41 - MBIA Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,507,760
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A, 0.000%, 6/15/24 - MBIA Insured
4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,628,882
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
1,940 University of Illinois, Auxiliary Facilities Systems Revenue 4/13 at 100.00 AAA 2,005,262
Bonds, Series 2003A, 5.000%, 4/01/23 - AMBAC Insured
7,500 Valley View Public Schools, Community Unit School No Opt. Call AAA 2,900,250
District 365U of Will County, Illinois, General Obligation
Bonds, Series 2005, 0.000%, 11/01/25 - MBIA Insured
23,125 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 9,640,350
Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/24
(WI/DD, Settling 5/08/06) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
143,095 Total Illinois 115,481,113
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.6% (2.4% OF TOTAL INVESTMENTS)
5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 5,622,129
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 9,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/06 at 102.00 AAA $ 9,191,610
Refunding and Improvement Bonds, Community Hospitals of
Indiana, Series 1995, 5.700%, 5/15/22 - MBIA Insured
6,075 LaGrange County Jail Building Corporation, Indiana, 10/09 at 101.00 A3 (4) 6,442,659
First Mortgage Jail Bonds, Series 1998, 5.400%, 10/01/21
(Pre-refunded 10/01/09)
2,725 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 2,823,618
Madison Center Inc., Series 1999, 5.450%, 2/15/12
------------------------------------------------------------------------------------------------------------------------------------
23,005 Total Indiana 24,080,016
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 Burlington, Kansas, Environmental Improvement Revenue 9/15 at 100.00 A3 5,036,200
Bonds, Kansas City Power and Light Company Project,
Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07)
4,935 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AA+ 5,137,582
Series 2004A, 5.000%, 3/01/22
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,846,548
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,685 Total Kansas 12,020,330
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,500 Louisville and Jefferson County Metropolitan Sewer District, 5/07 at 101.00 AAA 5,625,895
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 1997A, 5.250%, 5/15/27 - MBIA Insured
4,950 Louisville and Jefferson County Metropolitan Sewer District, 11/07 at 101.00 AAA 5,086,224
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 1997B, 5.200%, 5/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,450 Total Kentucky 10,712,119
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 7.6% (5.0% OF TOTAL INVESTMENTS)
13,500 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 14,542,200
Bonds, Cleco Utility Group Inc. Project, Series 1999,
5.875%, 9/01/29 - AMBAC Insured
8,720 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 10,890,234
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 6,936,682
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
6,000 5.500%, 5/15/30 5/11 at 101.00 BBB 6,165,780
11,750 5.875%, 5/15/39 5/11 at 101.00 BBB 12,321,050
------------------------------------------------------------------------------------------------------------------------------------
46,620 Total Louisiana 50,855,946
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,750 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 AAA 1,784,562
Revenue Bonds, UMass Memorial Healthcare, Series 1998A,
5.000%, 7/01/28 - AMBAC Insured
955 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 957,139
Revenue Bonds, Series 77, 5.950%, 6/01/25 - FSA Insured
(Alternative Minimum Tax)
10,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 10,133,600
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,705 Total Massachusetts 12,875,301
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6% (1.1% OF TOTAL INVESTMENTS)
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Detroit Medical Center Obligated Group, Series 1998A:
4,995 5.250%, 8/15/23 8/08 at 101.00 BB- 4,772,623
3,000 5.250%, 8/15/28 8/08 at 101.00 BB- 2,822,610
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/06 at 100.00 BB- 3,276,572
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
11,270 Total Michigan 10,871,805
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.7% (1.1% OF TOTAL INVESTMENTS)
$ 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA $ 5,183,500
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/32 - FGIC Insured
3,865 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 3,919,497
Revenue Bonds, Series 2000C, 5.550%, 7/01/24 (Alternative
Minimum Tax)
2,260 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 2,267,729
Revenue Bonds, Series 2000J, 5.400%, 1/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,125 Total Minnesota 11,370,726
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8% (0.5% OF TOTAL INVESTMENTS)
10,205 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 3,261,110
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 -
AMBAC Insured
220 Missouri Housing Development Commission, Single Family 9/09 at 102.00 AAA 231,631
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 2000A-1, 7.500%, 3/01/31 (Alternative Minimum Tax)
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,544,460
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,925 Total Missouri 5,037,201
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.1% (0.7% OF TOTAL INVESTMENTS)
6,920 Montana Board of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 7,093,138
Series 1997A-1, 6.050%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.7% (2.4% OF TOTAL INVESTMENTS)
7,310 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA 7,728,790
Bonds, Series 2000, 5.500%, 7/01/19
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AAA 8,205,750
Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) -
MBIA Insured
7,910 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 8,198,399
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
455 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aaa 461,998
Senior Series 1997C-2, 5.750%, 4/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,175 Total Nevada 24,594,937
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.1% (2.1% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
15,025 5.750%, 6/01/32 6/12 at 100.00 BBB 15,589,789
5,000 6.125%, 6/01/42 6/12 at 100.00 BBB 5,267,850
------------------------------------------------------------------------------------------------------------------------------------
20,025 Total New Jersey 20,857,639
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1% (0.8% OF TOTAL INVESTMENTS)
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding 10/06 at 101.00 BBB 7,614,300
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.5% (10.9% OF TOTAL INVESTMENTS)
4,395 Dormitory Authority of the State of New York, Revenue Bonds, 2/07 at 102.00 AA- 4,536,079
Mental Health Services Facilities Improvements, Series 1997B,
5.625%, 2/15/21
2,965 Dormitory Authority of the State of New York, Revenue Bonds, 2/07 at 102.00 AA- (4) 3,068,508
Mental Health Services Facilities Improvements, Series 1997B,
5.625%, 2/15/21 (Pre-refunded 2/15/07)
3,655 Dormitory Authority of the State of New York, Revenue Bonds, 5/08 at 101.00 AA- (4) 3,794,658
State University Educational Facilities, Series 1997,
5.125%, 5/15/27 (Pre-refunded 5/15/08)
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,260,260
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
Nassau County, New York, General Obligation Improvement
Bonds, Series 2000F:
$ 3,980 7.000%, 3/01/11 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA $ 4,449,839
4,070 7.000%, 3/01/12 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,550,464
3,925 7.000%, 3/01/15 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,388,346
4,975 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 4,514,962
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
3,000 New York City Industrial Development Agency, New York, 12/12 at 101.00 Ba2 3,260,130
Special Facilities Revenue Bonds, British Airways PLC,
Series 2002, 7.625%, 12/01/32 (Alternative Minimum Tax)
5,000 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA 5,163,400
Water and Sewerage System Revenue Bonds, Fiscal
Series 1997B, 5.750%, 6/15/29 (Pre-refunded 6/15/07) -
FGIC Insured
9,850 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 10,531,226
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000A, 5.750%, 6/15/31 (Pre-refunded 6/15/09) -
FGIC Insured
10,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 10,299,700
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/36 - FSA Insured
10,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AAA 10,943,200
Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29
(Pre-refunded 5/15/10)
10,000 New York City, New York, General Obligation Bonds, Fiscal 10/07 at 101.00 Aaa 10,426,300
Series 1997G, 6.000%, 10/15/26 (Pre-refunded 10/15/07)
7,435 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 A+ (4) 8,069,875
Series 2000A, 5.750%, 5/15/20 (Pre-refunded 5/15/10)
9,495 New York State Mortgage Agency, Homeowner Mortgage 4/10 at 100.00 Aa1 9,830,933
Revenue Bonds, Series 94, 5.800%, 10/01/20 (Alternative
Minimum Tax)
5,000 New York State Urban Development Corporation, Service 1/09 at 101.00 AAA 5,341,300
Contract Revenue Bonds, Correctional Facilities, Series 1999C,
6.000%, 1/01/29 (Pre-refunded 1/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
104,745 Total New York 110,429,180
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,175 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,191,673
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 - AMBAC Insured (Alternative Minimum Tax)
7,520 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 7,759,888
Revenue Bonds, 1998 Trust Agreement, Series 7A,
6.250%, 1/01/29 (Alternative Minimum Tax)
4,780 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 4,818,192
Revenue Bonds, 1998 Trust Agreement, Series 8A,
5.950%, 1/01/27 (Alternative Minimum Tax)
5,690 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 5,850,003
Revenue Bonds, 1998 Trust Agreement, Series 9A,
5.875%, 7/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,165 Total North Carolina 19,619,756
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,450 North Dakota Housing Finance Agency, Home Mortgage 7/08 at 102.00 Aaa 2,457,032
Finance Program Bonds, Series 1998B, 5.500%, 7/01/29 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.5% (3.0% OF TOTAL INVESTMENTS)
5,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 5,093,200
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.375%, 11/15/18
6,000 Cuyahoga County, Ohio, Hospital Revenue Bonds, University 7/09 at 101.00 AAA 6,302,820
Hospitals Health System, Series 1999, 5.500%, 1/15/30 -
AMBAC Insured
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
7,840 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 8,735,720
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,571,250
33
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 1,725 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 1,750,599
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
2,650 Ohio, General Obligation Bonds, Higher Education, 5/13 at 100.00 AA+ 2,750,965
Series 2003A, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
28,215 Total Ohio 30,204,554
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,890 Oklahoma State Industries Authority, Health System Revenue 8/09 at 101.00 AAA 3,060,741
Bonds, Integris Baptist Medical Center, Series 1999A,
5.750%, 8/15/29 - MBIA Insured
2,110 Oklahoma State Industries Authority, Health System Revenue 8/09 at 101.00 AAA 2,253,185
Bonds, Integris Baptist Medical Center, Series 1999A,
5.750%, 8/15/29 (Pre-refunded 8/15/09) - MBIA Insured
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B- 9,839,100
Bonds, American Airlines Inc., Series 2001B, 5.650%, 12/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,000 Total Oklahoma 15,153,026
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,930 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,031,286
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,826,902
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
3,240 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 3,477,298
Revenue Bonds, Capital Projects and Equipment Acquisition
Program, Series 1999, 6.150%, 12/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,770 Total Pennsylvania 8,335,486
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 5,199,250
Series 2005RR, 5.000%, 7/01/26 - XLCA Insured
4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 7/10 at 100.00 AAA 4,271,960
5.625%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,000 Total Puerto Rico 9,471,210
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,235 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 1,278,003
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.500%, 5/15/16 - MBIA Insured
11,015 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 11,430,376
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.500%, 5/15/16 (Pre-refunded 5/15/07) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,250 Total Rhode Island 12,708,379
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.2% (2.7% OF TOTAL INVESTMENTS)
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 11,255,100
Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20
(Pre-refunded 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,636,150
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 5.750%, 11/01/28
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AAA 3,071,040
Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 -
FGIC Insured
1,220 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 543,351
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/23 - FGIC Insured
2,125 South Carolina Public Service Authority, Revenue Refunding 7/13 at 100.00 AAA 2,207,896
Bonds, Santee Cooper Electric System, Series 2003A,
5.000%, 1/01/21 - AMBAC Insured
7,500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 8,014,950
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
26,345 Total South Carolina 27,728,487
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 5.2% (3.5% OF TOTAL INVESTMENTS)
$ 6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 $ 6,348,420
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,415 Knox County Health, Educational and Housing Facilities Board, 1/13 at 75.87 AAA 11,248,461
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A, 0.000%, 1/01/18 - FSA Insured
14,385 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 15,499,837
and Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/28
(Pre-refunded 11/15/09) - AMBAC Insured
1,750 Metropolitan Government of Nashville-Davidson County, 5/11 at 100.00 AA 1,801,870
Tennessee, Electric System Revenue Bonds, Series 2001A,
5.125%, 5/15/26
------------------------------------------------------------------------------------------------------------------------------------
42,550 Total Tennessee 34,898,588
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.2% (11.3% OF TOTAL INVESTMENTS)
11,810 Brazos River Authority, Texas, Pollution Control Revenue 5/36 at 100.00 Baa2 12,523,678
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, No Opt. Call AAA 6,286,620
Houston Lighting and Power Company, Series 1998,
5.050%, 11/01/18 - AMBAC Insured (Alternative Minimum Tax)
10,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 10,129,300
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
4,250 Ennis Independent School District, Ellis County, Texas, General 8/16 at 60.73 Aaa 1,502,205
Obligation Bonds, Series 2006, 0.000%, 8/15/26
8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101.00 BBB- 8,627,052
Revenue Bonds, Valero Energy Corporation, Series 1999,
5.700%, 4/01/32 (Alternative Minimum Tax)
5,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 5,087,900
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
1,540 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 1,575,959
Obligation Bonds, Series 2003, 5.000%, 2/15/28 -
AMBAC Insured
3,460 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 3,673,447
Obligation Bonds, Series 2003, 5.000%, 2/15/28 (Pre-refunded
2/15/13) - AMBAC Insured
13,110 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 13,842,980
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
Houston, Texas, Water Conveyance System Contract, Certificates
of Participation, Series 1993A-J:
5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call AAA 6,146,384
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,276,800
9,345 Leander Independent School District, Williamson and Travis 8/15 at 35.34 AAA 2,045,434
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/34 - FGIC Insured
16,305 Matagorda County Navigation District 1, Texas, Revenue 5/09 at 101.00 BBB- 16,670,231
Bonds, Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30
(Alternative Minimum Tax)
3,425 Sabine River Authority, Texas, Pollution Control Revenue 5/22 at 100.00 Baa2 3,630,706
Refunding Bonds, TXU Electric Company, Series 2001A,
5.500%, 5/01/22 (Mandatory put 11/01/11)
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 4,954,035
System Revenue Refunding Bonds, Series 2002A,
6.000%, 10/01/21
4,000 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,180,080
State Participation Program, Series 1999C, 5.500%, 8/01/35
6,840 Travis County Health Facilities Development Corporation, 11/09 at 101.00 AAA 7,367,706
Texas, Revenue Bonds, Ascension Health Credit Group,
Series 1999A, 5.875%, 11/15/24 (Pre-refunded 11/15/09) -
AMBAC Insured
2,500 Trinity River Authority of Texas, Pollution Control Revenue 5/27 at 100.00 Baa2 2,508,850
Refunding Bonds, TXU Electric Company, Series 2001A,
5.000%, 5/01/27 (Mandatory put 11/01/06) (Alternative
Minimum Tax)
245 Wood Glen Housing Finance Corporation, Texas, FHA-Insured 7/06 at 100.00 AAA 245,750
Section 8 Assisted Mortgage Revenue Bonds,
Copperwood I Project, Series 1990A, 7.625%, 1/01/10 -
MBIA Insured (ETM)
35
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 74.57 AAA $ 1,395,150
General Obligation Bonds, Series 2005, 0.000%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
121,420 Total Texas 114,670,267
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4% (0.2% OF TOTAL INVESTMENTS)
730 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 761,383
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 (Pre-refunded
7/01/07) - MBIA Insured
1,470 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 1,529,726
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,200 Total Utah 2,291,109
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.4% (9.5% OF TOTAL INVESTMENTS)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 9,352,520
Consolidated System Revenue Bonds, Series 2001A,
5.600%, 1/01/36 - MBIA Insured (Alternative Minimum Tax)
5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,820,788
Consolidated System Revenue Bonds, Series 2002B,
5.250%, 7/01/37 - AMBAC Insured (Alternative Minimum Tax)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,430,669
Consolidated System Revenue Refunding Bonds,
Series 2001C, 5.650%, 7/01/32 - MBIA Insured (Alternative
Minimum Tax)
10,730 Pierce County School District 320, Sumner, Washington, 12/10 at 100.00 Aaa 11,845,705
Unlimited Tax General Obligation Bonds, Series 2000,
6.250%, 12/01/17 (Pre-refunded 12/01/10) - FSA Insured
10,550 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AAA 11,138,584
Bonds, Series 2000B, 5.750%, 12/01/25 (Alternative
Minimum Tax)
5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, No Opt. Call AAA 5,690,186
6.000%, 2/01/10 - MBIA Insured (Alternative Minimum Tax)
19,475 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 21,200,484
Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded
3/01/10) - MBIA Insured
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 5,347,500
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
8,750 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 9,048,025
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
5,000 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 5,236,850
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
90,025 Total Washington 96,111,311
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 7.7% (5.1% OF TOTAL INVESTMENTS)
7,320 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 7,729,774
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
2,250 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 2,319,952
Series 2004, 5.000%, 11/01/29 - FSA Insured
5,000 Madison, Wisconsin, Industrial Development Revenue 4/12 at 100.00 AA- 5,325,300
Refunding Bonds, Madison Gas and Electric Company Projects,
Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
3,000 Southeast Wisconsin Professional Baseball Park District, No Opt. Call AAA 3,343,590
Sales Tax Revenue Refunding Bonds, Series 1998A,
5.500%, 12/15/19 - MBIA Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Aurora Medical Group Inc., Series 1996:
$ 10,000 5.600%, 11/15/16 - FSA Insured 5/06 at 102.00 AAA $ 10,213,200
20,000 5.750%, 11/15/25 - FSA Insured 5/06 at 102.00 AAA 20,429,599
1,835 Wisconsin Housing and Economic Development Authority, 3/10 at 100.00 AA 1,857,314
Home Ownership Revenue Bonds, Series 2000B,
5.750%, 3/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
49,405 Total Wisconsin 51,218,729
------------------------------------------------------------------------------------------------------------------------------------
$ 1,104,745 Total Investments (cost $947,766,169) - 151.5% 1,010,621,834
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 14,652,583
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.7)% (358,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 667,274,417
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
37
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 153.5% (99.8% OF TOTAL INVESTMENTS)
ALABAMA - 0.7% (0.4% OF TOTAL INVESTMENTS)
Henry County Water Authority, Alabama, Water Revenue Bonds,
Series 2006:
$ 1,935 5.000%, 1/01/36 - RAAI Insured 1/16 at 100.00 AA $ 1,950,383
2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 AA 2,500,556
------------------------------------------------------------------------------------------------------------------------------------
4,420 Total Alabama 4,450,939
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4% (0.2% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General Housing Purpose
Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,179,214
1,275 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,327,250
------------------------------------------------------------------------------------------------------------------------------------
2,400 Total Alaska 2,506,464
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/11 at 100.00 AAA 3,210,450
Series 2001, 5.250%, 7/01/20 (Pre-refunded 7/01/11)
140 Pima County Industrial Development Authority, Arizona, 5/07 at 105.85 AAA 143,758
FNMA/GNMA Single Family Mortgage Revenue Bonds,
Series 1997A, 7.100%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,140 Total Arizona 3,354,208
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 Arkansas Development Finance Authority, Hospital Revenue 2/10 at 100.00 BBB (4) 5,528,300
Bonds, Washington Regional Medical Center, Series 2000,
7.000%, 2/01/15 (Pre-refunded 2/01/10)
3,480 Cabot School District 4, Lonoke County, Arkansas, General 8/08 at 100.00 Aaa 3,535,402
Obligation Refunding Bonds, Series 2003, 5.000%, 2/01/27 -
AMBAC Insured
2,865 University of Arkansas, Fayetteville, Various Facilities 12/12 at 100.00 Aaa 3,132,219
Revenue Bonds, Series 2002, 5.500%, 12/01/20 (Pre-refunded
12/01/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,345 Total Arkansas 12,195,921
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.9% (4.5% OF TOTAL INVESTMENTS)
1,350 Antelope Valley Union High School District, Los Angeles No Opt. Call AAA 429,017
County, California, General Obligation Bonds, Series 2004B,
0.000%, 8/01/29 - MBIA Insured
7,800 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 6,079,164
Settlement Asset-Backed Bonds, Los Angeles County
Securitization Corporation, Series 2006A, 0.000%, 6/01/36
(Mandatory put 6/01/23)
1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 1,115,380
Revenue Bonds, Series 2002A, 5.750%, 5/01/17
(Pre-refunded 5/01/12)
1,350 California Educational Facilities Authority, Revenue No Opt. Call Aaa 252,828
Refunding Bonds, Loyola Marymount University, Series 2001A,
0.000%, 10/01/39 - MBIA Insured
4,295 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 4,313,254
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
10,445 Castaic Lake Water Agency, California, Revenue Certificates No Opt. Call AAA 3,319,317
of Participation, Water System Improvement Project,
Series 1999, 0.000%, 8/01/29 - AMBAC Insured
8,365 Cupertino Union School District, Santa Clara County, 8/13 at 52.66 AAA 2,980,199
California, General Obligation Bonds, Series 2003B,
0.000%, 8/01/26 - FGIC Insured
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,313,850
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) -
AMBAC Insured
3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,294,055
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 0.000%, 6/01/26 - FSA Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,500 Lincoln Unified School District, Placer County, California, No Opt. Call AAA $ 550,395
Community Facilities District 1, Special Tax Bonds,
Series 2005, 0.000%, 9/01/26 - AMBAC Insured
490 Los Angeles Department of Water and Power, California, 10/06 at 100.00 AA- (4) 490,372
Community Facilities District 1, Series 1993, 4.750%, 10/15/20
(ETM)
995 Los Angeles Department of Water and Power, California, 8/06 at 100.00 AA- (4) 996,254
Electric Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34
(ETM)
Orange County, California, Recovery Certificates of Participation,
Series 1996A:
3,100 5.875%, 7/01/19 (Pre-refunded 7/01/06) - MBIA Insured 7/06 at 102.00 AAA 3,173,501
690 6.000%, 7/01/26 (Pre-refunded 7/01/06) - MBIA Insured 7/06 at 102.00 AAA 706,505
1,000 Pajaro Valley Unified School District, Santa Cruz County, No Opt. Call AAA 317,000
California, General Obligation Bonds, Series 2005B,
0.000%, 8/01/29 - FSA Insured
6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call AAA 1,432,140
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
5,000 0.000%, 1/15/17 - MBIA Insured 1/14 at 102.00 AAA 5,093,950
26,000 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 6,174,740
5,000 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 1,563,550
County, California, General Obligation Bonds, Series 2005A,
0.000%, 9/01/28 - MBIA Insured
4,825 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 1,820,424
California, General Obligation Bonds, Series 2005C,
0.000%, 8/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
97,705 Total California 47,415,895
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.3% (3.5% OF TOTAL INVESTMENTS)
1,085 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA 1,141,463
Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured
3,000 Broomfield, Colorado, Master Facilities Lease Purchase 12/09 at 100.00 AAA 3,177,000
Agreement, Certificates of Participation, Series 1999,
5.750%, 12/01/24 - AMBAC Insured
6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding 12/12 at 100.00 Aaa 6,770,453
and Improvement Bonds, Series 2002A, 5.500%, 12/01/22 -
AMBAC Insured
11,465 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 12,294,263
Refunding Bonds, Series 2000A, 6.000%, 11/15/18 -
AMBAC Insured (Alternative Minimum Tax)
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 5,305,200
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) -
MBIA Insured
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds,
Series 2004B:
3,500 0.000%, 9/01/27 - MBIA Insured 9/20 at 67.94 AAA 1,153,145
13,300 0.000%, 9/01/31 - MBIA Insured 9/20 at 53.77 AAA 3,458,798
6,250 0.000%, 9/01/32 - MBIA Insured 9/20 at 50.83 AAA 1,536,250
8,000 0.000%, 3/01/36 - MBIA Insured No Opt. Call AAA 1,607,440
------------------------------------------------------------------------------------------------------------------------------------
72,885 Total Colorado 36,444,012
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,265 Washington Convention Center Authority, District of Columbia, 10/08 at 100.00 AAA 3,253,736
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
4.750%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.6% (3.0% OF TOTAL INVESTMENTS)
15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 16,082,400
Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) -
FGIC Insured
14,330 Fulton County Facilities Corporation, Georgia, Certificates 11/10 at 101.00 AAA 15,321,206
of Participation, Public Purpose Project, Series 1999,
5.500%, 11/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,330 Total Georgia 31,403,606
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.6% (7.5% OF TOTAL INVESTMENTS)
$ 600 Bolingbrook, Illinois, General Obligation Refunding Bonds, No Opt. Call AAA $ 169,350
Series 2002B, 0.000%, 1/01/32 - FGIC Insured
4,600 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 2,299,080
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,095,360
5.000%, 1/01/33 - AMBAC Insured
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,488,922
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 1/09 at 101.00 AAA 5,344,815
5.000%, 1/01/28 - MBIA Insured
5,210 Illinois Housing Development Authority, Section 8 Elderly 7/06 at 100.00 A- 5,273,822
Housing Revenue Bonds, Garden House of River Oaks West
Development, Series 1992A, 6.875%, 1/01/20
38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/10 at 100.00 AAA 40,701,297
Series 2000, 5.500%, 4/01/25 - MBIA Insured
Lake and McHenry Counties Community Unit School District 118,
Wauconda, Illinois, General Obligation Bonds, Series 2005B:
10,230 0.000%, 1/01/22 - FSA Insured 1/15 at 70.63 Aaa 4,645,648
6,780 0.000%, 1/01/24 - FSA Insured 1/15 at 63.44 Aaa 2,774,308
1,975 Lake County Community High School District 127, Grayslake, No Opt. Call AAA 2,538,309
Illinois, General Obligation Bonds, Series 2002A,
9.000%, 2/01/13 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
3,250 5.600%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 1,986,628
3,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 3,355,576
2,130 0.000%, 6/15/37 - MBIA Insured No Opt. Call AAA 458,525
11,215 0.000%, 12/15/38 - MBIA Insured No Opt. Call AAA 2,235,598
3,650 0.000%, 6/15/39 - MBIA Insured No Opt. Call AAA 706,640
------------------------------------------------------------------------------------------------------------------------------------
103,105 Total Illinois 79,073,878
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,695 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AAA 4,977,874
Butler University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
5,113 Indianapolis, Indiana, Special Facility Revenue Bonds, United 5/06 at 102.00 N/R 511,283
Airlines Inc., Indianapolis Maintenance Center Project,
Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax) (7)
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding 8/11 at 102.00 Baa2 2,096,440
Bonds, Indianapolis Power and Light Company, Series 1991,
5.750%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
11,808 Total Indiana 7,585,597
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, 6/27 at 100.00 N/R 4,262,166
IPSCO Project, Series 1997, 6.000%, 6/01/27 (Mandatory
put 6/01/07) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,700,075
Revolving Fund Leveraged Bonds, Series 2002-II,
5.500%, 11/01/21
500 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/16 at 100.00 A1 479,765
Medical Center, Series 2006, 4.625%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Kansas 3,179,840
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6% (1.1% OF TOTAL INVESTMENTS)
Jefferson County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2000A:
3,045 5.250%, 7/01/17 - FSA Insured 1/10 at 101.00 AAA 3,199,503
7,490 5.250%, 7/01/20 - FSA Insured 1/10 at 101.00 AAA 7,870,043
------------------------------------------------------------------------------------------------------------------------------------
10,535 Total Kentucky 11,069,546
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 AAA $ 7,545,801
Community Development Authority, Revenue Bonds, Baton
Rouge Community College Facilities Corporation, Series 2002,
5.000%, 12/01/32 - MBIA Insured
3,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 3,494,419
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,765 Total Louisiana 11,040,220
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.6% (1.0% OF TOTAL INVESTMENTS)
Frederick County, Maryland, General Obligation Public Facilities
Bonds, Series 2002:
3,710 5.000%, 11/01/18 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 3,978,493
3,890 5.000%, 11/01/19 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 4,171,519
2,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 2,769,025
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
10,100 Total Maryland 10,919,037
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.6% (3.0% OF TOTAL INVESTMENTS)
1,100 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 1,149,313
Series 2000A, 5.250%, 7/01/30
4,150 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 4,389,123
Bonds, Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
8,315 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 8,426,088
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 10,830,200
Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) -
FGIC Insured
6,195 University of Massachusetts Building Authority, Facilities 11/10 at 100.00 AAA 6,545,823
Revenue Bonds, Senior Series 2000A, 5.125%, 11/01/25
(Pre-refunded 11/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,760 Total Massachusetts 31,340,547
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,090 Grand Rapids Building Authority, Kent County, Michigan, 8/10 at 100.00 AAA 2,201,606
Limited Tax General Obligation Bonds, Series 2000,
5.375%, 8/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 8.0% (5.2% OF TOTAL INVESTMENTS)
930 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 996,867
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
29,070 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 32,348,804
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
(Pre-refunded 11/15/10)
2,680 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 2,723,523
Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative
Minimum Tax)
13,675 Minnesota, General Obligation Bonds, Series 2000, 11/10 at 100.00 AAA 14,419,193
5.125%, 11/01/16
3,225 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 3,939,434
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
49,580 Total Minnesota 54,427,821
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0% (0.7% OF TOTAL INVESTMENTS)
5,900 Mississippi Business Finance Corporation, Pollution Control 10/06 at 100.00 BBB- 5,948,439
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
1,100 Mississippi Home Corporation, GNMA Mortgage-Backed 7/07 at 105.00 Aaa 1,122,594
Securities Program Single Family Mortgage Revenue Bonds,
Series 1997D-5, 6.750%, 7/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Mississippi 7,071,033
------------------------------------------------------------------------------------------------------------------------------------
41
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6% (0.4% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri,
Leasehold Revenue Bonds, Series 2004B-1:
$ 7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA $ 2,480,730
5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AAA 1,448,800
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Missouri 3,929,530
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.0% (3.9% OF TOTAL INVESTMENTS)
9,555 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 10,079,856
Southern Nevada Water Authority Loan, Series 2001,
5.300%, 6/01/20 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
6,125 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 3,699,194
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 3,215,040
5,315 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,901,122
21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 21,765,660
2,135 Reno, Nevada, Capital Improvement Revenue Bonds, 6/15 at 33.61 AAA 414,211
Series 2005B, 0.000%, 6/01/37 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
52,630 Total Nevada 41,075,083
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.8% (3.1% OF TOTAL INVESTMENTS)
170 Camden County Pollution Control Financing Authority, 6/06 at 100.00 Baa3 173,012
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
18,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AAA 19,391,220
System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded
6/15/10)
5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and 1/17 at 100.00 AAA 3,283,850
Income Securities, Series 2004B, 0.000%, 1/01/35 - AMBAC
Insured
3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer No Opt. Call Aaa 1,159,680
Revenue Bonds, Series 2005A, 0.000%, 9/01/25 -
MBIA Insured
3,165 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 3,334,549
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/42
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
2,100 6.375%, 6/01/32 6/13 at 100.00 BBB 2,276,379
2,925 6.750%, 6/01/39 6/13 at 100.00 BBB 3,248,476
------------------------------------------------------------------------------------------------------------------------------------
34,360 Total New Jersey 32,867,166
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,419,145
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21 (Pre-refunded 8/01/11)
5,675 University of New Mexico, Revenue Refunding Bonds, No Opt. Call AA 6,219,630
Bonds, Presbyterian Healthcare
------------------------------------------------------------------------------------------------------------------------------------
11,600 Total New Mexico 12,638,775
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.3% (10.6% OF TOTAL INVESTMENTS)
245 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AA- 253,122
Revenue Bonds, Mental Health Services Facilities,
Series 1997A, 5.750%, 2/15/27
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1997A:
465 5.750%, 2/15/27 (Pre-refunded 2/15/07) 2/07 at 102.00 AA- (4) 481,684
19,290 5.750%, 2/15/27 (Pre-refunded 2/15/07) 2/07 at 102.00 AA- (4) 19,982,125
3,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A- 3,072,750
General Revenue Bonds, Series 2006B, 5.000%, 12/01/35
6,750 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- (4) 7,355,948
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33 (Pre-refunded 7/15/09)
17,870 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AAA 19,157,355
Future Tax Secured Bonds, Fiscal Series 2000A,
5.750%, 8/15/24 (Pre-refunded 8/15/09)
630 New York City, New York, General Obligation Bonds, 8/07 at 101.00 A+ 652,926
Fiscal Series 1997H, 6.125%, 8/01/25
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 9,370 New York City, New York, General Obligation Bonds, 8/07 at 101.00 A+ (4) $ 9,740,677
Fiscal Series 1997H, 6.125%, 8/01/25 (Pre-refunded 8/01/07)
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
1,000 5.000%, 8/01/17 8/12 at 100.00 A+ 1,032,720
10,500 5.750%, 8/01/18 8/12 at 100.00 A+ 11,368,770
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 A+ 5,453,000
Series 2003A, 5.750%, 8/01/16
7,805 New York State Power Authority, General Revenue Bonds, 11/12 at 100.00 Aa2 8,061,082
Series 2002A, 5.000%, 11/15/21
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,685,012
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
10,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 10,471,500
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
8,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 8,682,080
Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24)
(Pre-refunded 7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
105,325 Total New York 111,450,751
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 1,918,164
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 7,930,575
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,400 Total North Carolina 9,848,739
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 4.3% (2.8% OF TOTAL INVESTMENTS)
22,905 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 24,383,746
Obligated Group, Series 2000A, 5.625%, 6/01/31 - FSA Insured
North Dakota Water Commission, Water Development and
Management Program Bonds, Series 2000A:
2,230 5.700%, 8/01/18 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,399,993
2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,641,541
------------------------------------------------------------------------------------------------------------------------------------
27,585 Total North Dakota 29,425,280
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.6% (1.7% OF TOTAL INVESTMENTS)
16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A 17,819,044
Kettering Medical Center, Series 1999, 6.300%, 4/01/12
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.0% (0.0% OF TOTAL INVESTMENTS)
300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 300,072
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.4% (1.6% OF TOTAL INVESTMENTS)
5,000 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 5,293,600
Series 2002A, 5.250%, 7/01/22 - MBIA Insured
Portland, Oregon, Water System Revenue Bonds, Series 2000A:
6,780 5.375%, 8/01/18 8/10 at 100.00 Aa1 7,144,764
3,880 5.500%, 8/01/20 8/10 at 100.00 Aa1 4,118,504
------------------------------------------------------------------------------------------------------------------------------------
15,660 Total Oregon 16,556,868
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.9% (2.5% OF TOTAL INVESTMENTS)
5,000 Delaware County Industrial Development Authority, 1/08 at 102.00 BB+ 5,137,100
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Series 1997A, 6.200%, 7/01/19
5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100.00 AAA 5,448,000
Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30
(Pre-refunded 12/15/10) - MBIA Insured
15,050 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 15,923,803
5.000%, 9/15/14
------------------------------------------------------------------------------------------------------------------------------------
25,050 Total Pennsylvania 26,508,903
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.9% (1.9% OF TOTAL INVESTMENTS)
$ 12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA $ 12,268,500
Revenue Bonds, Series 2003, 4.500%, 12/01/23
7,640 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 7,789,744
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
20,140 Total Puerto Rico 20,058,244
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.5% (4.9% OF TOTAL INVESTMENTS)
24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 27,137,712
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
(Pre-refunded 12/01/12)
21,570 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,638,383
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 -
AMBAC Insured
3,560 South Carolina Public Service Authority, Revenue Refunding 7/13 at 100.00 AAA 3,702,222
Bonds, Santee Cooper Electric System, Series 2003A,
5.000%, 1/01/20 - AMBAC Insured
1,045 Three Rivers Solid Waste Authority, South Carolina, Solid 1/07 at 102.00 AAA 1,075,201
Waste Disposal Facilities Revenue Bonds, Series 1997,
5.300%, 1/01/27 - MBIA Insured
11,665 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 12,465,919
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
62,570 Total South Carolina 51,019,437
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 7/13 at 100.00 AA 5,096,250
Tennessee, Hospital Revenue Bonds, East Tennessee
Children's Hospital, Series 2003A, 5.000%, 7/01/23 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 25.5% (16.6% OF TOTAL INVESTMENTS)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 6/06 at 100.00 CCC 4,849,250
Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
12,250 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue 11/09 at 100.00 AAA 13,075,773
Refunding Bonds, Series 1999, 5.800%, 11/15/29
(Pre-refunded 11/15/09) - AMBAC Insured
11,255 Brazos River Authority, Texas, Pollution Control Revenue 5/36 at 100.00 Baa2 11,935,140
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
Brownsville Independent School District, Cameron County,
Texas, General Obligation Bonds, Series 1999:
5,015 5.625%, 8/15/25 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 5,304,566
8,825 5.625%, 8/15/29 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 9,334,556
1,000 Cedar Hill Independent School District, Dallas County, Texas, No Opt. Call AAA 272,190
General Obligation Bonds, Series 2002, 0.000%, 8/15/32 -
FGIC Insured
15,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 15,193,950
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000:
585 5.400%, 2/15/18 2/10 at 100.00 AAA 613,952
340 5.650%, 2/15/19 2/10 at 100.00 AAA 360,407
235 5.700%, 2/15/20 2/10 at 100.00 AAA 249,619
270 5.700%, 2/15/21 2/10 at 100.00 AAA 286,238
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000:
16,740 5.400%, 2/15/18 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 17,723,308
9,660 5.650%, 2/15/19 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 10,312,243
6,645 5.700%, 2/15/20 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 7,105,299
7,750 5.700%, 2/15/21 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 8,286,843
2,500 Comal Independent School District, Comal, Bexar, Guadalupe, No Opt. Call Aaa 1,112,575
Hays, and Kendall Counties, Texas, General Obligation Bonds,
Series 2005A, 0.000%, 2/01/23
6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/09 at 101.00 CCC 5,034,780
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 11,750 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC $ 11,563,410
Corporation, Texas, Revenue Refunding Bonds, American
Airlines Inc., Series 2000C, 6.150%, 5/01/29 (Mandatory
put 11/01/07) (Alternative Minimum Tax)
Ennis Independent School District, Ellis County, Texas,
General Obligation Bonds, Series 2006:
3,950 0.000%, 8/15/30 8/16 at 49.21 Aaa 1,132,070
4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,060,320
1,050 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 285,170
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/32 - AMBAC Insured
1,250 Houston, Texas, Junior Lien Water and Sewerage System 12/11 at 100.00 AAA 1,290,213
Revenue Refunding Bonds, Series 2001A, 5.000%, 12/01/20 -
FSA Insured
21,500 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 22,702,065
Series 2000B, 5.500%, 7/01/30 - FSA Insured
9,350 Leander Independent School District, Williamson and Travis 8/15 at 39.49 AAA 2,287,104
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/32 - FGIC Insured
15,000 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,945,900
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded 8/15/09)
5,000 White Settlement Independent School District, Tarrant County, 8/15 at 36.81 AAA 1,139,450
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34
3,970 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 4,102,122
Series 2001, 5.000%, 8/01/21 - AMBAC Insured
Wylie Independent School District, Taylor County, Texas, General
Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/23 8/15 at 67.10 AAA 1,255,470
2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 793,040
------------------------------------------------------------------------------------------------------------------------------------
190,890 Total Texas 174,607,023
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 17.9% (11.6% OF TOTAL INVESTMENTS)
5,500 Clark County Public Utility District 1, Washington, Generating 1/11 at 100.00 AAA 5,694,920
System Revenue Refunding Bonds, Series 2000,
5.125%, 1/01/20 - FSA Insured
2,755 Cowlitz County, Washington, Special Sewerage Revenue No Opt. Call AAA 3,033,613
Refunding Bonds, CSOB Wastewater Treatment Facilities,
Series 2002, 5.500%, 11/01/16 - FGIC Insured
10,000 Energy Northwest, Washington, Electric Revenue Refunding 7/11 at 101.00 AAA 10,753,900
Bonds, Nuclear Project 3, Series 2001A, 5.500%, 7/01/17 -
FSA Insured
2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AAA 2,579,650
5.000%, 1/01/23 - FGIC Insured
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 35,545,280
5.625%, 2/01/30 - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,317,864
5.625%, 2/01/24 - MBIA Insured (Alternative Minimum Tax)
Seattle, Washington, General Obligation Refunding and
Improvement Bonds, Series 2002:
6,165 4.400%, 12/01/19 12/12 at 100.00 AAA 6,167,898
6,445 4.500%, 12/01/20 12/12 at 100.00 AAA 6,472,133
3,000 Spokane County School District 81, Spokane, Washington, 6/15 at 100.00 AAA 2,701,770
General Obligation Bonds, Series 2005, 0.000%, 6/01/24 -
MBIA Insured
6,630 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 7,247,651
Bonds, Series 2001A, 5.750%, 1/01/17 (Pre-refunded 1/01/11) -
FSA Insured
3,520 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,719,021
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.000%, 10/01/21 (Pre-refunded 10/01/11) -
AMBAC Insured
7,890 Washington State Higher Education Facilities Authority, 11/09 at 101.00 AA 8,408,215
Revenue Bonds, Pacific Lutheran University, Series 1999,
5.950%, 11/01/29 - RAAI Insured
12,185 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 13,253,015
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/12 at 100.00 AAA 9,302,310
Series 2002C, 5.000%, 1/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
116,030 Total Washington 122,197,240
------------------------------------------------------------------------------------------------------------------------------------
45
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 4,180 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB $ 4,413,996
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
1,755 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 1,671,550
Revenue Bonds, Divine Savior Healthcare, Series 2006,
4.750%, 5/01/25
1,250 Wisconsin Health and Educational Facilities Authority, Revenue 3/08 at 101.00 N/R 1,246,638
Bonds, United Lutheran Program for the Aging Inc.,
Series 1998, 5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
7,185 Total Wisconsin 7,332,184
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,800 Jackson National Rural Utilities Cooperative Financing 5/07 at 101.00 A 2,862,160
Corporation, Wyoming, Guaranteed Gas Supply Revenue
Bonds, Lower Valley Power and Light Inc., Series 1997B,
5.875%, 5/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,181,113 Total Long-Term Municipal Bonds (cost $991,174,819) 1,048,788,821
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL BONDS - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, Dock Facility No Opt. Call VMIG-1 1,000,000
Revenue Refunding Bonds, Bayonne/IMTT Project, Variable
Rate Demand Obligations, Series 1993C, 3.770%, 12/01/27 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Municipal Bonds (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.1% (0.1% OF TOTAL INVESTMENTS)
AIRLINES - 0.1% (0.1% OF TOTAL INVESTMENTS)
14,752 UAL Corporation (6) (7) (8) 531,220
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $599,673) 531,220
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $992,774,492) - 153.7% 1,050,320,041
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 13,073,486
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.6)% (380,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 683,393,527
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
(6) Non-income producing.
(7) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds.
(8) On February 1, 2006, UAL emerged from federal
bankruptcy with the acceptance of its reorganization
plan by the bankruptcy court. Under the settle
agreement established to meet UAL's unsecured bond
obligations, the bondholders, including the Fund,
received a distribution of UAL common stock during the
subsequent month, and the bankruptcy court dismissed
all unsecured claims of bondholders, including those of
the Fund. Subsequent to fiscal year-end, the Fund
liquidated its UAL common stock holdings.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
46
Nuveen Dividend Advantage Municipal Fund (NAD)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 1,554,000
Bonds, Series 2000, 5.750%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
750 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 786,143
Bonds, Series 2005A, 5.250%, 12/01/34 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.7% (1.8% OF TOTAL INVESTMENTS)
1,535 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 318,559
Senior Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 -
MBIA Insured
200 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 204,944
5.000%, 10/01/18 - AMBAC Insured
California, General Obligation Bonds, Series 1997:
2,195 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,258,589
210 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 216,084
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/16 at 100.00 A 5,102,950
3/01/31
3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,294,055
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 0.000%, 6/01/26 - FSA Insured
2,475 Los Angeles Department of Water and Power, California, 7/06 at 100.00 AA- 2,478,811
Power System Revenue Bonds, Series 2001A-3, 5.375%, 7/01/20
17,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 4,037,330
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
32,115 Total California 15,911,322
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.7% (2.5% OF TOTAL INVESTMENTS)
3,205 Denver City and County, Colorado, Airport Special Facilities 1/09 at 101.00 AAA 3,385,506
Revenue Bonds, Rental Car Projects, Series 1999A,
6.000%, 1/01/12 - MBIA Insured (Alternative Minimum Tax)
10,250 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 10,439,728
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
2,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,127,118
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/22 (Pre-refunded 12/01/13) - XLCA Insured
1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/07 at 102.00 AAA 1,507,273
Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
8,515 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 3,300,840
Bonds, Series 1997B, 0.000%, 9/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,395 Total Colorado 21,760,465
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,700 Connecticut Development Authority, Health Facilities 8/06 at 100.00 N/R 2,708,316
Revenue Refunding Bonds, Alzheimer's Resource Center of
Connecticut Inc., Series 1994A, 7.125%, 8/15/14
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 5,196,600
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.250%, 10/01/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 8.0% (5.4% OF TOTAL INVESTMENTS)
1,630 Florida Housing Finance Agency, Housing Revenue Bonds, 12/07 at 102.00 AAA 1,671,810
Mar Lago Village Apartments, Series 1997F, 5.800%, 12/01/17 -
AMBAC Insured (Alternative Minimum Tax)
15,000 Florida State Board of Education, Public Education Capital 6/15 at 101.00 AAA 14,561,100
Outlay Bonds, Series 2005E, 4.500%, 6/01/35
47
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 14,350 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 $ 15,213,009
Refunding Bonds, Issue 2, Series 2002-17, 5.250%, 10/01/13
13,625 Martin County Industrial Development Authority, Florida, 6/06 at 101.00 BB+ 13,822,835
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative
Minimum Tax)
2,405 Venice, Florida, Revenue Bonds, Bon Secours System, Revenue 8/06 at 102.00 AAA 2,465,895
Bonds, Series 1996, 5.600%, 8/15/16 (Pre-refunded 8/15/06) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
47,010 Total Florida 47,734,649
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/10 at 101.00 AA (4) 4,354,720
Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded 4/01/10)
880 Gainesville and Hall County Hospital Authority, Georgia, 5/09 at 101.00 AAA 922,715
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 1999, 5.500%, 5/15/29 - MBIA Insured
2,620 Gainesville and Hall County Hospital Authority, Georgia, 5/09 at 101.00 AAA 2,772,667
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 1999, 5.500%, 5/15/29 (Pre-refunded
5/15/09) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,500 Total Georgia 8,050,102
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
330 Idaho Housing and Finance Association, Single Family 7/09 at 101.00 Aa2 331,155
Mortgage Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative
Minimum Tax)
400 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 415,672
Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative
Minimum Tax)
555 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 557,015
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,285 Total Idaho 1,303,842
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 36.7% (24.8% OF TOTAL INVESTMENTS)
3,265 Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, 12/09 at 102.00 BBB+ 3,374,475
Series 1999, 5.750%, 12/01/12
7,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 8,263,913
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
5.500%, 12/01/26 - FGIC Insured
Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue
Bonds, Archer Court Apartments, Series 1999A:
850 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 877,736
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,234,938
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,957,821
22,750 Chicago, Illinois, General Obligation Refunding Bonds, No Opt. Call AAA 25,611,267
Emergency Telephone System, Series 1999, 5.500%, 1/01/23 -
FGIC Insured
2,620 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,835,207
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
3,340 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 3,439,231
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
1,145 Chicago, Illinois, Wastewater Transmission Revenue Bonds, 1/08 at 100.00 AAA 1,163,183
Series 1995, 5.125%, 1/01/25 - FGIC Insured
190 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 200,803
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
810 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 873,042
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured
500 Hoffman Estates Park District, Cook County, Illinois, General 12/09 at 102.00 AAA 529,885
Obligation Bonds, Series 1999, 5.375%, 12/01/29 -
MBIA Insured
3,935 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 2,681,584
Program Revenue Bonds, Lake County School District 116 -
Round Lake, Series 1999, 0.000%, 1/01/15 - MBIA Insured
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 24,835 Illinois Development Finance Authority, Revenue Bonds, 9/07 at 102.00 AAA $ 25,846,525
Presbyterian Home of Lake Forest, Series 1999,
5.625%, 9/01/31 - FSA Insured
5,570 Illinois Finance Authority, Revenue Bonds, University of 7/14 at 100.00 Aa1 5,710,475
Chicago, Series 2004A, 5.000%, 7/01/34
17,280 Illinois Health Facilities Authority, Converted Adjustable 10/07 at 102.00 AAA 18,150,394
Rate Revenue Bonds, Highland Park Hospital, Series 1991A,
6.000%, 10/01/15 (Pre-refunded 10/01/07) - FGIC Insured
9,900 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 10,644,183
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
5,400 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/07 at 101.00 AAA 5,473,764
University Health System, Series 1997A, 5.000%, 7/01/24 -
MBIA Insured
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 2/07 at 102.00 A 5,612,262
Lincoln Health Center, Series 1996B, 5.500%, 2/15/16
7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/06 at 100.00 BBB- 7,249,202
Proctor Community Hospital, Series 1991, 7.375%, 1/01/23
1,500 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA 1,481,430
Series 2005E, 4.800%, 1/01/36 - FGIC Insured
5,000 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 5,426,500
School District 300, Carpentersville, Illinois, General
Obligation Bonds, Series 2000, 5.500%, 12/01/19
(Pre-refunded 12/01/11) - MBIA Insured
11,345 Lake and McHenry Counties Community Unit School 1/15 at 60.14 Aaa 4,389,267
District 118, Wauconda, Illinois, General Obligation Bonds,
Series 2005B, 0.000%, 1/01/25 - FSA Insured
3,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 3,182,040
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
22,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 23,831,549
Bonds, McCormick Place Expansion Project, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A:
9,750 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 4,394,325
13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 5,584,930
Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999:
22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 25,776,605
3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,038,125
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,377,818
5.250%, 12/01/34 - FGIC Insured
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 4,387,800
Illinois, General Obligation Bonds, Series 2006,
0.000%, 1/01/23 (WI/DD, Settling 5/08/06) - FSA Insured
4,500 Will County School District 122, New Lenox, Illinois, General No Opt. Call Aaa 2,508,210
Obligation Bonds, Series 2000B, 0.000%, 11/01/18 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
233,555 Total Illinois 218,108,489
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.8% (2.6% OF TOTAL INVESTMENTS)
8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 9,326,964
Bonds, Charity Obligated Group, Series 1999D,
5.500%, 11/15/24 (Pre-refunded 11/15/09) - MBIA Insured
8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 8,641,120
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/26 (Pre-refunded 8/15/10) - MBIA Insured
4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, 6/09 at 101.00 Aa3 (4) 4,460,842
Park Tudor Foundation Inc., Project, Series 1999,
5.700%, 6/01/24 (Pre-refunded 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
20,945 Total Indiana 22,428,926
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS)
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 7,144,340
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
49
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/06 at 101.00 AAA $ 3,684,967
Series 1999, 4.000%, 10/01/18 - FGIC Insured
1,000 Wyandotte County-Kansas City Unified Government, Kansas, 12/15 at 100.00 N/R 1,022,520
Sales Tax Special Obligation Bonds, Redevelopment Project
Area B, Series 2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
4,825 Total Kansas 4,707,487
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.7% (1.1% OF TOTAL INVESTMENTS)
3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101.00 Aa3 (4) 3,268,400
School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20
(Pre-refunded 2/01/10)
Kentucky Economic Development Finance Authority, Hospital
System Revenue Refunding and Improvement Bonds, Appalachian
Regional Healthcare Inc., Series 1997:
1,850 5.850%, 10/01/17 4/08 at 102.00 BB- 1,836,236
5,000 5.875%, 10/01/22 4/08 at 102.00 BB- 4,914,550
------------------------------------------------------------------------------------------------------------------------------------
9,880 Total Kentucky 10,019,186
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.0% (2.7% OF TOTAL INVESTMENTS)
2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public 5/10 at 101.50 AAA 2,402,419
Improvements, Series 2000B, 5.625%, 5/01/25 - FGIC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,911,962
Community Development Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, Sharlo Apartments,
Series 2002A, 6.500%, 6/20/37
5,350 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 5,580,639
Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA Insured
13,570 Louisiana Transportation Authority, Senior Lien Toll Road 12/10 at 38.73 AAA 4,146,178
Revenue Bonds, Series 2005B, 0.000%, 12/01/28 -
MBAC Insured
9,545 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 9,808,728
Settlement Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
32,460 Total Louisiana 23,849,926
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,500 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R 1,492,350
Massachusetts, Subordinate Revenue Bonds, Crosstown
Center Project, Series 2002, 8.000%, 9/01/35 (Alternative
Minimum Tax)
4,365 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA 4,524,192
Revenue Bonds, Berkshire Health System, Series 2005F,
5.000%, 10/01/19 - AGC Insured
7,000 Massachusetts Port Authority, Special Facilities Revenue 7/07 at 102.00 AAA 7,246,820
Bonds, BOSFUEL Corporation, Series 1997, 5.500%, 7/01/18 -
MBIA Insured (Alternative Minimum Tax)
785 Massachusetts Port Authority, Special Facilities Revenue Bonds, 9/06 at 102.00 AAA 805,528
US Airways Group Inc., Series 1996A, 5.875%, 9/01/23 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,650 Total Massachusetts 14,068,890
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.5% (2.4% OF TOTAL INVESTMENTS)
2,435 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 2,553,122
Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
15,255 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 14,352,972
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/28
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 4,145,520
Metropolitan Wayne County Airport, Series 1998A,
5.375%, 12/01/16 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
21,690 Total Michigan 21,051,614
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.1% (0.2% OF TOTAL INVESTMENTS)
1,220 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA+ 1,235,311
Bonds, Series 1998H-1, 5.650%, 7/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.1% (1.4% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri,
Leasehold Revenue Bonds, Series 2004B-1:
$ 7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA $ 2,480,730
5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AAA 1,597,800
2,185 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 2,300,150
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21 -
AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,352,065
3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 3,941,764
------------------------------------------------------------------------------------------------------------------------------------
20,040 Total Missouri 12,672,509
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,005 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 1,007,633
Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
1,000 Montana Higher Education Student Assistance Corporation, 12/09 at 100.00 A2 1,052,220
Student Loan Revenue Bonds, Subordinate Series 1999B,
6.400%, 12/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,005 Total Montana 2,059,853
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 1,511,940
Loan Program, Series 1993A-5A, 6.200%, 6/01/13 - MBIA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.6% (1.1% OF TOTAL INVESTMENTS)
2,115 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 2,231,177
Southern Nevada Water Authority Loan, Series 2001,
5.300%, 6/01/19 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
8,000 0.000%, 1/01/19 - AMBAC Insured No Opt. Call AAA 4,363,520
3,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 3,109,380
------------------------------------------------------------------------------------------------------------------------------------
13,115 Total Nevada 9,704,077
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.1% (0.2% OF TOTAL INVESTMENTS)
985 New Hampshire Housing Finance Agency, Single Family 7/06 at 101.00 Aa2 988,428
Mortgage Acquisition Revenue Bonds, Series 1995D,
6.550%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.6% (4.4% OF TOTAL INVESTMENTS)
1,275 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 1,280,432
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center, Series 2001, 4.800%, 8/01/21 - AMBAC Insured
2,250 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,316,623
Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 -
MBIA Insured (Alternative Minimum Tax)
4,130 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,489,599
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/13 - AMBAC Insured
4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,477,160
System Bonds, Series 1999A, 5.750%, 6/15/18
10,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 10,502,300
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.900%, 12/01/17 - MBIA Insured (Alternative Minimum Tax)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
10,720 5.750%, 6/01/32 6/12 at 100.00 BBB 11,122,965
3,165 6.125%, 6/01/42 6/12 at 100.00 BBB 3,334,549
1,365 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 1,515,955
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
36,905 Total New Jersey 39,039,583
------------------------------------------------------------------------------------------------------------------------------------
51
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA $ 4,084,480
Revenue Bonds, Series 2004, 5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.7% (8.6% OF TOTAL INVESTMENTS)
80 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 81,678
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.125%, 8/15/21 - MBIA Insured
4,600 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 4,740,714
Revenue Bonds, Mental Health Services Facilities,
Series 1996E, 5.250%, 2/15/18 - AMBAC Insured
2,170 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AA 2,247,903
Bonds, Franciscan Health Partnership Obligated Group -
Frances Shervier Home and Hospital, Series 1997,
5.500%, 7/01/17 - RAAI Insured
7,500 Dormitory Authority of the State of New York, Secured 2/08 at 101.50 AAA 7,795,725
Hospital Revenue Refunding Bonds, Wyckoff Heights Medical
Center, Series 1998H, 5.300%, 8/15/21 - MBIA Insured
2,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 2,093,940
Resolution Consolidated Revenue Bonds, City University
System, Series 1997-1, 5.375%, 7/01/24 (Pre-refunded
1/01/08) - FSA Insured
5,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 5,206,400
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08) - FSA Insured
Nassau County, New York, General Obligation Improvement
Bonds, Series 1999B:
4,005 5.250%, 6/01/19 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 4,262,001
7,005 5.250%, 6/01/21 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 7,454,511
5,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 5,149,850
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/36 - FSA Insured
8,800 New York City Sales Tax Asset Receivable Corporation, 10/14 at 100.00 AAA 9,116,096
New York, Dedicated Revenue Bonds, Local Government
Assistance Corporation, Series 2004A, 5.000%, 10/15/32 -
AMBAC Insured
10,000 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AAA 10,720,400
Future Tax Secured Bonds, Fiscal Series 2000A,
5.750%, 8/15/24 (Pre-refunded 8/15/09)
2,000 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 2,063,320
Fiscal Series 1998E, 5.250%, 8/01/14 - AMBAC Insured
13,930 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 14,417,968
Fiscal Series 1998F, 5.375%, 8/01/19 - MBIA Insured
70 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 72,701
Fiscal Series 1998F, 5.375%, 8/01/19 (Pre-refunded 2/01/08) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
72,160 Total New York 75,423,207
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.7% (0.4% OF TOTAL INVESTMENTS)
3,830 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 3,866,615
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.1% (2.8% OF TOTAL INVESTMENTS)
2,300 Amherst Exempted Village School District, Ohio, Unlimited 12/11 at 100.00 Aaa 2,412,309
Tax General Obligation School Improvement Bonds,
Series 2001, 5.125%, 12/01/21 - FGIC Insured
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/06 at 102.00 Aa2 3,666,515
Mortgage Revenue Bonds, Hamilton Creek Apartments Project,
Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax)
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,712,598
Initiatives, Series 2004A, 5.000%, 5/01/30
13,000 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 13,433,290
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
1,115 Warren County, Ohio, Special Assessment Bonds, Waterstone 12/07 at 101.00 Aa2 1,154,382
Boulevard Project, Series 1997, 5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
23,700 Total Ohio 24,379,094
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,355 Portland, Oregon, Downtown Waterfront Urban Renewal 6/10 at 101.00 Aaa 2,516,129
and Redevelopment Revenue Bonds, Series 2000A,
5.500%, 6/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.9% (3.3% OF TOTAL INVESTMENTS)
$ 3,480 Allegheny County Hospital Development Authority, 11/10 at 102.00 Ba3 $ 4,146,107
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B, 9.250%, 11/15/22
1,710 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,799,741
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
18,900 Philadelphia Airport System, Pennsylvania, Revenue Refunding 6/08 at 102.00 AAA 19,718,558
Bonds, Series 1998A, 5.500%, 6/15/18 - FGIC Insured
(Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,517,007
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded
8/01/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,295 Total Pennsylvania 29,181,413
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.1% (1.4% OF TOTAL INVESTMENTS)
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA 12,268,500
Revenue Bonds, Series 2003, 4.500%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.2% (2.2% OF TOTAL INVESTMENTS)
2,015 Central Falls, Rhode Island, General Obligation School Bonds, 5/09 at 102.00 AA 2,168,362
Series 1999, 6.250%, 5/15/20 - RAAI Insured
3,500 Providence Redevelopment Agency, Rhode Island, Revenue 4/10 at 101.00 Aaa 3,788,085
Bonds, Public Safety and Municipal Building Projects,
Series 1999A, 5.750%, 4/01/29 (Pre-refunded 4/01/10) -
AMBAC Insured
12,500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 13,146,250
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
18,015 Total Rhode Island 19,102,697
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Greenville, South Carolina, Hospital Facilities Revenue Bonds, 5/11 at 101.00 AAA 1,525,275
Series 2001, 5.000%, 5/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.7% (1.2% OF TOTAL INVESTMENTS)
6,400 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 6,844,800
Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC
Insured (Alternative Minimum Tax)
2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 2,494,161
Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured
250 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 251,118
Program Bonds, Series 2000-1, 6.375%, 7/01/25 (Alternative
Minimum Tax)
670 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 672,754
Program Bonds, Series 2000-2B, 6.250%, 1/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,745 Total Tennessee 10,262,833
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.1% (10.2% OF TOTAL INVESTMENTS)
1,000 Alliance Airport Authority, Texas, Special Facilities Revenue 6/06 at 100.00 CCC 969,850
Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
2,560 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 2,996,454
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
4,675 Carrollton-Farmers Branch Independent School District, Dallas 2/09 at 100.00 AAA 4,953,490
County, Texas, Unlimited Tax School Building Bonds,
Series 1999, 6.000%, 2/15/20 (Pre-refunded 2/15/09)
2,820 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 2,856,463
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
Coppell Independent School District, Dallas County, Texas,
Unlimited Tax School Building and Refunding Bonds, Series 1999:
5,130 0.000%, 8/15/20 8/09 at 52.47 AAA 2,323,736
7,000 0.000%, 8/15/21 8/09 at 49.48 AAA 2,974,580
7,345 0.000%, 8/15/23 8/09 at 44.01 AAA 2,775,822
7,000 0.000%, 8/15/24 8/09 at 41.50 AAA 2,494,800
7,350 0.000%, 8/15/25 8/09 at 39.14 AAA 2,479,155
7,000 0.000%, 8/15/26 8/09 at 36.91 AAA 2,225,160
53
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA $ 834,965
Bonds, Series 2001, 5.000%, 12/01/31 - AMBAC Insured
6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC 5,904,720
Corporation, Texas, Revenue Refunding Bonds, American
Airlines Inc., Series 2000C, 6.150%, 5/01/29 (Mandatory put
11/01/07) (Alternative Minimum Tax)
Harris County Health Facilities Development Corporation, Texas,
Revenue Bonds, Christus Health, Series 1999A:
12,240 5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 12,925,073
11,180 5.375%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 11,805,745
2,205 Harris County-Houston Sports Authority, Texas, Senior Lien No Opt. Call AAA 1,099,678
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/20 -
MBIA Insured
2,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 751,400
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/30 - AMBAC Insured
2,500 Jefferson County, Texas, Certificates of Obligation, 8/10 at 100.00 AAA 2,717,775
Series 2000, 6.000%, 8/01/25 (Pre-refunded 8/01/10) -
FSA Insured
2,000 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100.00 AAA 2,084,860
Series 2001, 5.300%, 3/15/26 (Pre-refunded 3/15/09) -
FGIC Insured
30,095 Leander Independent School District, Williamson and Travis 8/12 at 27.94 AAA 6,296,476
Counties, Texas, General Obligation Bonds, Series 2004,
0.000%, 8/15/34
9,345 Leander Independent School District, Williamson and Travis 8/15 at 37.33 AAA 2,160,564
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/33 - FGIC Insured
1,500 Port Arthur, Texas, Jefferson County, General Obligation Bonds, 2/07 at 100.00 AAA 1,515,930
Series 1997, 5.000%, 2/15/21 (Pre-refunded 2/15/07) -
MBIA Insured
10,000 Tarrant County Health Facilities Development Corporation, 2/08 at 102.00 AAA 10,393,100
Texas, Revenue Bonds, Texas Health Resources System,
Series 1997A, 5.250%, 2/15/17 - MBIA Insured
7,000 White Settlement Independent School District, Tarrant 8/15 at 34.92 AAA 1,511,720
County, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/35
Wylie Independent School District, Taylor County, Texas,
General Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/20 8/15 at 78.46 AAA 1,471,680
3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,320,330
------------------------------------------------------------------------------------------------------------------------------------
155,265 Total Texas 89,843,526
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4% (0.2% OF TOTAL INVESTMENTS)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 1999C-2, Class II:
475 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 AAA 476,667
175 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 181,921
160 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.00 AA 160,472
Series 1999D, 5.850%, 7/01/21 (Alternative Minimum Tax)
55 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.50 Aa2 55,210
Series 1999F, 6.300%, 7/01/21 (Alternative Minimum Tax)
1,300 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 1,321,658
Series 2000F-2, Class III, 6.000%, 1/01/15 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,165 Total Utah 2,195,928
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,395 Virginia Small Business Financing Authority, Industrial 11/09 at 102.00 N/R 3,514,945
Development Water Revenue Bonds, S.I.L. Clean Water, LLC
Project, Series 1999, 7.250%, 11/01/24 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.3% (7.6% OF TOTAL INVESTMENTS)
4,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 4,290,840
Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 -
XLCA Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999B:
$ 1,755 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA $ 1,880,904
2,590 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 2,775,807
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999C:
875 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 937,773
1,260 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 1,350,392
9,760 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,617,318
Bonds, Series 2001A, 5.625%, 1/01/21 (Pre-refunded
1/01/11) - FSA Insured
4,800 Washington Public Power Supply System, Revenue Refunding 7/07 at 102.00 AAA 4,968,000
Bonds, Nuclear Project 3, Series 1997A, 5.250%, 7/01/16 -
FSA Insured
7,280 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 7,918,092
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
11,605 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 12,078,484
Convention and Trade Center, Series 1999, 5.250%, 7/01/16 -
MBIA Insured
3,350 Washington, General Obligation Compound Interest Bonds, No Opt. Call AAA 1,945,345
Series 1999S-2, 0.000%, 1/01/18 - FSA Insured
Washington, General Obligation Compound Interest Bonds,
Series 1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call Aa1 9,140,759
18,470 0.000%, 1/01/21 No Opt. Call Aa1 9,063,968
------------------------------------------------------------------------------------------------------------------------------------
83,395 Total Washington 66,967,682
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.9% (4.6% OF TOTAL INVESTMENTS)
2,250 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 2,319,952
Series 2004, 5.000%, 11/01/29 - FSA Insured
3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding 12/08 at 102.00 AAA 4,021,684
Bonds, Dairyland Power Cooperative, Series 1997C,
5.550%, 2/01/15 - AMBAC Insured
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, FH Healthcare Development Inc., Series 1999:
8,375 6.250%, 11/15/20 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 9,102,704
5,000 6.250%, 11/15/28 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 5,434,450
4,180 Wisconsin Health and Educational Facilities Authority, 5/09 at 101.00 A 4,276,851
Revenue Bonds, Kenosha Hospital and Medical Center Inc.,
Series 1999, 5.625%, 5/15/29
12,700 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101.00 Aaa 13,343,382
Bonds, Mercy Health System Corporation, Series 1999,
5.500%, 8/15/25 - AMBAC Insured
2,200 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,218,480
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
38,515 Total Wisconsin 40,717,503
------------------------------------------------------------------------------------------------------------------------------------
$ 1,001,865 Total Investments (cost $825,790,358) - 148.0% 879,445,825
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 9,574,893
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (295,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 594,020,718
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
See accompanying notes to financial statements.
55
Nuveen Dividend Advantage Municipal Fund 2 (NXZ)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS - 145.9% (99.9% OF TOTAL INVESTMENTS)
ALABAMA - 4.2% (2.9% OF TOTAL INVESTMENTS)
$ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 $ 19,313,630
Series 2001A, 5.750%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,955 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/11 at 100.00 BBB 3,007,658
Settlement Asset-Backed Bonds, Series 2001, 5.500%, 6/01/29
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,120 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 3,209,981
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,950 Arkansas Development Finance Authority, Single Family 1/12 at 100.00 AAA 1,987,304
Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities
Program, Series 2002C, 5.400%, 1/01/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.9% (7.4% OF TOTAL INVESTMENTS)
6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,288,300
Stanford University, Series 2001Q, 5.250%, 12/01/32
6,000 California Statewide Community Development Authority, 4/34 at 100.00 A+ 5,885,640
Revenue Bonds, Kaiser Permanente System, Series 2004G,
2.300%, 4/01/34 (Mandatory put 5/01/07)
13,825 California, Department of Veterans Affairs, Home Purchase 6/06 at 101.00 AAA 13,983,573
Revenue Bonds, Series 2001A, 5.550%, 12/01/25 -
AMBAC Insured
11,200 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 11,689,776
5.250%, 2/01/28
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,568,800
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
6,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 6,367,440
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines Inc. Terminal 4 Project, Series 2002C,
7.500%, 12/01/24 (Alternative Minimum Tax)
190 Yuba County Water Agency, California, Yuba River 9/06 at 100.00 Baa3 189,992
Development Revenue Bonds, Pacific Gas and Electric
Company, Series 1966A, 4.000%, 3/01/16
------------------------------------------------------------------------------------------------------------------------------------
48,215 Total California 49,973,521
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.0% (4.1% OF TOTAL INVESTMENTS)
2,835 Colorado Educational and Cultural Facilities Authority, 8/11 at 100.00 AAA 3,288,231
Charter School Revenue Bonds, Peak-to-Peak Charter School,
Series 2001, 7.500%, 8/15/21 (Pre-refunded 8/15/11)
2,500 Colorado Educational and Cultural Facilities Authority, 6/14 at 100.00 N/R 2,152,200
Revenue Bonds, Colorado Lutheran High School Association,
Series 2004A, 7.625%, 6/01/34
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 2,652,600
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded
9/01/10) - MBIA Insured
1,500 Eagle County Air Terminal Corporation, Colorado, Airport 5/11 at 101.00 N/R 1,579,245
Terminal Revenue Bonds, Series 2001, 7.125%, 5/01/31
(Alternative Minimum Tax)
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 788,024
Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured
5,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 5,211,750
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Northwest Parkway Public Highway Authority, Colorado, Senior
Lien Revenue Bonds, Series 2001B:
$ 22,000 0.000%, 6/15/28 - FSA Insured 6/11 at 35.65 AAA $ 6,164,400
17,650 0.000%, 6/15/29 - AMBAC Insured 6/11 at 33.45 AAA 4,640,891
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 1,099,440
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
63,240 Total Colorado 27,576,781
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.3% (0.1% OF TOTAL INVESTMENTS)
1,145 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 1,212,578
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.0% (3.4% OF TOTAL INVESTMENTS)
15,000 Jacksonville, Florida, Transportation Revenue Bonds, 10/11 at 100.00 AAA 15,789,900
Series 2001, 5.250%, 10/01/29 - MBIA Insured
4,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 4,129,960
Revenue Refunding Bonds, Miami Children's Hospital,
Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 3,123,540
Miami International Airport, Series 2002, 5.375%, 10/01/32 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,000 Total Florida 23,043,400
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.2% (1.5% OF TOTAL INVESTMENTS)
Honolulu Board of Water Supply, Hawaii, Water System Revenue
Bonds, Series 2001:
3,000 5.250%, 7/01/26 - FSA Insured 7/11 at 100.00 AAA 3,152,100
6,725 5.250%, 7/01/31 - FSA Insured 7/11 at 100.00 AAA 7,065,957
------------------------------------------------------------------------------------------------------------------------------------
9,725 Total Hawaii 10,218,057
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.6% (7.3% OF TOTAL INVESTMENTS)
3,645 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 A+ 3,742,613
Revenue Bonds, Stone Terrace Apartments, Series 2001A,
5.750%, 12/20/42 (Alternative Minimum Tax)
1,350 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 4/11 at 105.00 AAA 1,381,158
Mortgage Revenue Bonds, Series 2001A, 6.250%, 10/01/32
(Alternative Minimum Tax)
14,920 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AAA 15,547,684
5.250%, 1/01/33 - MBIA Insured
350 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AAA 375,169
5.250%, 1/01/33 (Pre-refunded 1/01/11) - MBIA Insured
285 Chicago, Illinois, General Obligation Refunding Bonds, 1/08 at 100.00 AAA 289,526
Series 1996B, 5.125%, 1/01/25 - FGIC Insured
3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago 12/21 at 100.00 BBB 3,277,594
Charter School Foundation, Series 2002A, 6.250%, 12/01/32
5,000 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 AAA 5,339,150
Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32 -
AMBAC Insured
3,100 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- 3,282,869
Midwestern University, Series 2001B, 6.000%, 5/15/31
3,000 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 3,055,080
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.250%, 5/01/34
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 5,158,000
Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34 -
FSA Insured
2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 6/11 at 100.00 AAA 2,444,965
5.500%, 6/15/16
4,980 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/06 at 102.00 AAA 5,086,721
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A, 5.250%, 6/15/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
47,085 Total Illinois 48,980,529
------------------------------------------------------------------------------------------------------------------------------------
57
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.8% (3.3% OF TOTAL INVESTMENTS)
$ 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ $ 2,049,860
Bonds, Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,894,925
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,137,280
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,194,880
3,107 Indianapolis, Indiana, Special Facility Revenue Bonds, 5/06 at 102.00 N/R 310,699
United Airlines Inc., Indianapolis Maintenance Center Project,
Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax) (6)
6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 6,290,930
Madison Center Inc., Series 1999, 5.800%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
23,707 Total Indiana 21,878,574
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 A (4) 1,083,330
Revenue Bonds, Wartburg College, Series 2002,
5.500%, 10/01/28 (Pre-refunded 10/01/12) - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.9% (2.6% OF TOTAL INVESTMENTS)
17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 17,755,310
Improvement Bonds, Via Christi Health System Inc.,
Series 2001-III, 5.625%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.3% (2.9% OF TOTAL INVESTMENTS)
18,825 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 19,739,895
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.9% (2.7% OF TOTAL INVESTMENTS)
2,875 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/07 at 102.00 AAA 2,987,901
BOSFUEL Corporation, Series 1997, 5.750%, 7/01/39 -
MBIA Insured (Alternative Minimum Tax)
15,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 15,200,400
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
17,875 Total Massachusetts 18,188,301
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 14.2% (9.7% OF TOTAL INVESTMENTS)
15,390 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 16,454,680
Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) -
FGIC Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
20,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 21,483,600
14,610 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 15,318,731
4,000 Michigan Municipal Bond Authority, Public School Academy 10/09 at 102.00 Ba1 4,220,680
Revenue Bonds, Detroit Academy of Arts and Sciences
Charter School, Series 2001A, 8.000%, 10/01/31
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 1,925,660
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/06 at 100.00 BB- 2,000,720
4,000 6.500%, 8/15/18 8/06 at 100.00 BB- 4,001,920
------------------------------------------------------------------------------------------------------------------------------------
62,000 Total Michigan 65,405,991
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.2% (2.2% OF TOTAL INVESTMENTS)
14,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 14,555,240
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.9% (3.4% OF TOTAL INVESTMENTS)
21,000 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 22,555,050
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 3,280 Montana Board of Housing, Single Family Program Bonds, 12/10 at 100.00 AA+ $ 3,368,527
Series 2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.1% (2.8% OF TOTAL INVESTMENTS)
12,275 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 12,722,547
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
3,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 3,647,490
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40
2,330 Henderson, Nevada, Healthcare Facility Revenue Bonds, 7/08 at 101.00 A- 2,381,237
Catholic Healthcare West, Series 1998A, 5.250%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
18,105 Total Nevada 18,751,274
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.1% (1.5% OF TOTAL INVESTMENTS)
8,000 New Hampshire Business Finance Authority, Pollution Control 10/08 at 102.00 Baa1 8,330,560
Remarketed Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1992A, 5.850%, 12/01/22
1,530 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 1,542,209
Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,530 Total New Hampshire 9,872,769
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.3% (1.6% OF TOTAL INVESTMENTS)
3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 4,053,247
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
475 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 492,855
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,200 6.375%, 6/01/32 6/13 at 100.00 BBB 2,384,778
425 6.750%, 6/01/39 6/13 at 100.00 BBB 472,001
3,085 6.250%, 6/01/43 6/13 at 100.00 BBB 3,327,018
------------------------------------------------------------------------------------------------------------------------------------
10,180 Total New Jersey 10,729,899
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 5.4% (3.7% OF TOTAL INVESTMENTS)
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
12,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 13,000,800
10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 11,700,720
------------------------------------------------------------------------------------------------------------------------------------
22,800 Total New Mexico 24,701,520
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.4% (4.4% OF TOTAL INVESTMENTS)
4,900 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Ba1 5,267,745
Bonds, Mount Sinai NYU Health Obligated Group,
Series 2000A, 6.625%, 7/01/19
6,000 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- 6,296,100
Revenue Bonds, Series 2001L, 5.375%, 5/01/33
5,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B- 5,594,800
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
12,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 12,261,840
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001C, 5.125%, 6/15/33
------------------------------------------------------------------------------------------------------------------------------------
27,900 Total New York 29,420,485
------------------------------------------------------------------------------------------------------------------------------------
59
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 2,950 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 AAA $ 3,013,042
Bonds, Johnson and Wales University, Series 2003A,
5.000%, 4/01/33 - XLCA Insured
4,500 North Carolina Eastern Municipal Power Agency, Power System 1/09 at 102.00 BBB 4,748,670
Revenue Refunding Bonds, Series 1999B, 5.600%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
7,450 Total North Carolina 7,761,712
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,520 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 2,551,676
Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,845 Columbus City School District, Franklin County, Ohio, General 6/13 at 100.00 AAA 1,899,833
Obligation Bonds, Series 2003, 5.000%, 12/01/28 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8% (0.6% OF TOTAL INVESTMENTS)
Oklahoma Development Finance Authority, Revenue Refunding
Bonds, Hillcrest Healthcare System, Series 1999A:
2,655 5.125%, 8/15/10 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 2,784,245
1,000 5.200%, 8/15/11 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 1,050,980
------------------------------------------------------------------------------------------------------------------------------------
3,655 Total Oklahoma 3,835,225
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.8% (2.6% OF TOTAL INVESTMENTS)
8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 AA 8,321,360
Refunding Bonds, Legacy Health System, Series 2001,
5.250%, 5/01/21
9,000 Oregon Department of Administrative Services, Certificates 5/11 at 101.00 AAA 9,213,210
of Participation, Series 2001D, 5.000%, 5/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Oregon 17,534,570
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.6% (2.5% OF TOTAL INVESTMENTS)
5,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 Ba3 5,952,500
Revenue Bonds, West Penn Allegheny Health System,
Series 2000B, 9.250%, 11/15/30
1,930 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,031,286
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
8,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 8,644,880
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
14,930 Total Pennsylvania 16,628,666
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,820 South Dakota Housing Development Authority, Remarketed 5/09 at 102.00 AAA 4,959,925
Homeownership Mortgage Bonds, Series 1997E-4,
5.450%, 5/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 24.6% (16.8% OF TOTAL INVESTMENTS)
7,500 Austin, Texas, Electric Utility System Revenue Refunding 11/10 at 100.00 AAA 7,677,225
Bonds, Series 2001, 5.000%, 11/15/30 - FSA Insured
Dallas-Fort Worth International Airport Public Facility
Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001:
15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,418,350
1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,795,325
6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 6,487,980
Regional Health System, Series 2004A, 7.125%, 9/01/34
10,000 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Ba1 11,227,500
Waste Disposal Revenue Bonds, Citgo Petroleum Corporation
Project, Series 1998, 8.000%, 4/01/28 (Alternative
Minimum Tax)
3,000 Harris County Health Facilities Development Corporation, 7/09 at 101.00 AAA 3,167,910
Texas, Revenue Bonds, Christus Health, Series 1999A,
5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 30,980 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA $ 32,068,639
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
40,000 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 54.04 AAA 6,234,000
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 -
MBIA Insured
Hays Consolidated Independent School District, Hays County,
Texas, General Obligation School Building Bonds, Series 2001:
10,715 0.000%, 8/15/25 (Pre-refunded 8/15/11) 8/11 at 43.18 AAA 3,753,679
12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 4,262,954
Houston, Texas, Hotel Occupancy Tax and Special Revenue
Bonds, Convention and Entertainment Project, Series 2001B:
5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call AAA 1,502,800
5,000 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,430,350
5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100.00 B1 5,152,100
Hospital Revenue Bonds, Wilson N. Jones Memorial Hospital,
Series 2001, 7.250%, 1/01/31
10,500 Texas, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aa1 10,866,870
Program, Series 2001, 5.250%, 8/01/35
2,000 Tom Green County Health Facilities Development Corporation, 5/11 at 101.00 Baa3 2,166,700
Texas, Hospital Revenue Bonds, Shannon Health System
Project, Series 2001, 6.750%, 5/15/21
------------------------------------------------------------------------------------------------------------------------------------
165,385 Total Texas 113,212,382
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
5,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 23.55 BB- 1,029,800
Bonds, Route 895 Connector Toll Road, Series 1998B,
0.000%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.0% (4.1% OF TOTAL INVESTMENTS)
Seattle, Washington, Municipal Light and Power Revenue
Refunding and Improvement Bonds, Series 2001:
4,820 5.500%, 3/01/19 - FSA Insured 3/11 at 100.00 AAA 5,112,237
7,250 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 7,444,083
3,500 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 3,826,060
Bonds, Series 2001A, 5.750%, 1/01/18 (Pre-refunded
1/01/11) - FSA Insured
7,500 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,797,075
Bonds, Sisters of Providence Health System, Series 2001A,
5.250%, 10/01/21 - MBIA Insured
985 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 1,071,335
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
2,100 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,175,999
Convention and Trade Center, Series 1999, 5.125%, 7/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,155 Total Washington 27,426,789
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.1% (0.8% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,000 Wisconsin Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 1,162,560
Revenue Bonds, Divine Savior Healthcare, Series 2002A,
7.375%, 5/01/26 (Pre-refunded 5/01/12)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,117,640
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
3,100 Total Wisconsin 3,280,200
------------------------------------------------------------------------------------------------------------------------------------
$ 741,997 Total Long-Term Municipal Bonds (cost $625,893,472) 671,742,732
=============-----------------------------------------------------------------------------------------------------------------------
61
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.1% (0.1% OF TOTAL INVESTMENTS)
AIRLINES - 0.1% (0.1% OF TOTAL INVESTMENTS)
12,027 UAL Corporation (5) (6) (7) $ 433,092
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $488,938) 433,092
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $626,382,410) - 146.0% 672,175,824
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 10,331,316
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (222,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 460,507,140
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Non-income producing.
(6) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds.
(7) On February 1, 2006, UAL emerged from federal
bankruptcy with the acceptance of its reorganization
plan by the bankruptcy court. Under the settle
agreement established to meet UAL's unsecured bond
obligations, the bondholders, including the Fund,
received a distribution of UAL common stock during the
subsequent month, and the bankruptcy court dismissed
all unsecured claims of bondholders, including those of
the Fund. Subsequent to fiscal year-end, the Fund
liquidated its UAL common stock holdings.
N/R Not rated.
See accompanying notes to financial statements.
62
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 AAA $ 5,797,280
Department Facilities, Series 2001, 5.250%, 10/01/26 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7% (0.4% OF TOTAL INVESTMENTS)
4,000 Alaska Student Loan Corporation, Student Loan Revenue 7/08 at 100.00 AAA 4,070,760
Bonds, Series 1998A, 5.250%, 7/01/14 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
Sebastian County Health Facilities Board, Arkansas, Hospital
Revenue Improvement Bonds, Sparks Regional Medical Center,
Series 2001A:
1,805 5.500%, 11/01/13 11/11 at 101.00 Baa2 1,879,817
1,900 5.500%, 11/01/14 11/11 at 101.00 Baa2 1,969,616
1,745 5.250%, 11/01/21 11/11 at 101.00 Baa2 1,758,855
------------------------------------------------------------------------------------------------------------------------------------
5,450 Total Arkansas 5,608,288
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.7% (7.2% OF TOTAL INVESTMENTS)
855 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 860,113
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/28
5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 5,235,250
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
5,000 California Statewide Community Development Authority, 4/34 at 100.00 A+ 4,904,700
Revenue Bonds, Kaiser Permanente System, Series 2004G,
2.300%, 4/01/34 (Mandatory put 5/01/07)
18,850 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 19,317,292
Series 2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative
Minimum Tax)
Los Angeles Regional Airports Improvement Corporation,
California, Lease Revenue Refunding Bonds, LAXFUEL Corporation
at Los Angeles International Airport, Series 2001:
13,955 5.750%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 14,901,847
5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 5,171,850
1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 1,534,950
10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 10,305,900
10,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 2,374,900
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
3,000 San Mateo County Community College District, California, No Opt. Call AAA 888,930
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
73,160 Total California 65,495,732
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.7% (5.1% OF TOTAL INVESTMENTS)
2,250 Canterberry Crossing Metropolitan District II, Parker, 12/12 at 100.00 N/R 2,432,093
Colorado, Limited Tax General Obligation Bonds, Series 2002,
7.375%, 12/01/32
1,655 Colorado Educational and Cultural Facilities Authority, 3/12 at 100.00 N/R 1,712,809
Charter School Revenue Bonds, Belle Creek Education Center,
Series 2002A, 7.625%, 3/15/32
3,250 Colorado Educational and Cultural Facilities Authority, 5/12 at 102.00 N/R 3,417,505
Charter School Revenue Bonds, Montessori Peaks Building
Foundation, Series 2002A, 8.000%, 5/01/32
1,775 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 1,829,652
School Revenue Bonds, Weld County School District 6 -
Frontier Academy, Series 2001, 7.375%, 6/01/31
3,380 Colorado Housing Finance Authority, Multifamily Project Bonds, 10/11 at 100.00 AAA 3,461,695
Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative
Minimum Tax)
10,100 Colorado Springs, Colorado, Utility System Revenue Refunding 11/07 at 100.00 AA 10,310,686
and Improvement Bonds, Series 1997A, 5.375%, 11/15/26
63
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Denver City and County, Colorado, Airport System Revenue
Bonds, Series 1996A:
$ 19,150 5.750%, 11/15/16 - MBIA Insured 11/06 at 101.00 AAA $ 19,527,637
1,105 5.500%, 11/15/25 - MBIA Insured 11/06 at 101.00 AAA 1,125,454
2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 2,107,700
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC
Insured (Alternative Minimum Tax)
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 1,099,440
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
45,665 Total Colorado 47,024,671
------------------------------------------------------------------------------------------------------------------------------------
DELAWARE - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,835 Delaware Housing Authority, Multifamily Mortgage Revenue 7/12 at 100.00 Aa3 2,843,477
Bonds, Series 2001A, 5.400%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.0% (0.7% OF TOTAL INVESTMENTS)
6,000 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 6,353,460
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.6% (1.1% OF TOTAL INVESTMENTS)
2,000 Dade County, Florida, Water and Sewerage System Revenue 10/07 at 102.00 AAA 2,082,000
Bonds, Series 1997, 5.375%, 10/01/16 - FGIC Insured
Orange County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA 1,124,824
2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,229,088
4,175 Pace Property Finance Authority Inc., Florida, Utility System 9/07 at 102.00 AAA 4,332,899
Improvement and Revenue Refunding Bonds, Series 1997,
5.250%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,475 Total Florida 9,768,811
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.3% (1.6% OF TOTAL INVESTMENTS)
5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 AAA 5,215,650
5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax)
2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station 12/11 at 101.00 N/R 2,997,648
Project, Series 2001, 7.900%, 12/01/24
3,740 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 3,836,642
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2001, 5.500%, 5/15/31
2,000 Henry County Water and Sewerage Authority, Georgia, Revenue 2/10 at 101.00 AAA 2,148,680
Bonds, Series 2000, 5.625%, 2/01/30 (Pre-refunded
2/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,440 Total Georgia 14,198,620
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,125 Hawaii, Highway Revenue Bonds, Series 2001, 7/11 at 100.00 AAA 5,509,426
5.375%, 7/01/21 (Pre-refunded 7/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.4% (12.4% OF TOTAL INVESTMENTS)
3,000 Chicago, Illinois, General Obligation Bonds, Neighborhoods 1/11 at 100.00 AAA 3,222,390
Alive 21 Program, Series 2001A, 5.500%, 1/01/31
(Pre-refunded 1/01/11) - FGIC Insured
285 Chicago, Illinois, General Obligation Refunding Bonds, 1/08 at 100.00 AAA 289,526
Series 1996B, 5.125%, 1/01/25 - FGIC Insured
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/11 at 101.00 AAA 8,800,450
Series 2001A, 5.500%, 1/01/19 - FSA Insured (Alternative
Minimum Tax)
1,750 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 1,821,697
5.250%, 1/01/28 - FGIC Insured
10,800 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 1/09 at 101.00 AAA 11,352,636
5.375%, 1/01/30 (Pre-refunded 1/01/09) - FGIC Insured
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 5,090,580
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 8,610 Chicago, Illinois, Second Lien Wastewater Transmission Revenue 1/11 at 100.00 AAA $ 9,248,259
Bonds, Series 2001A, 5.500%, 1/01/26 (Pre-refunded
1/01/11) - AMBAC Insured
2,220 Chicago, Illinois, Second Lien Wastewater Transmission Revenue No Opt. Call AAA 2,427,970
Bonds, Series 2001A, 5.500%, 1/01/16 - MBIA Insured
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, 11/11 at 100.00 AAA 10,597,500
Series 2001, 5.000%, 11/01/26 (Pre-refunded 11/01/11) -
AMBAC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,714,467
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
2,415 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 Aaa 2,497,545
Certificates, Local Government Program - Kankakee County,
Series 2005B, 5.000%, 12/01/24 - AMBAC Insured
1,100 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa2 1,169,795
Medical Center, Series 2000, 6.500%, 5/15/30
9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB 9,285,480
Retirement Communities Inc., Series 2001, 5.875%, 12/01/31
15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 15,697,200
University Health System, Series 2001A, 6.125%, 7/01/31
5,000 Lake County School District 38, Big Hallow, Illinois, General No Opt. Call Aaa 2,331,650
Obligation Bonds, Series 2005, 0.000%, 2/01/22 -
AMBAC Insured
7,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 7,424,760
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
16,900 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 17,688,554
Bonds, McCormick Place Expansion Project, Series 1999A,
5.250%, 12/15/28 - FGIC Insured
2,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,280,860
Refunding Bonds, McCormick Place Expansion Project,
Series 1998A, 5.500%, 6/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
110,070 Total Illinois 112,941,319
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.8% (3.9% OF TOTAL INVESTMENTS)
Clark-Pleasant Community School Building Corporation, Indiana,
First Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,327,790
1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,058,000
Evansville Vanderburgh Public Library Lease Corporation,
Indiana, First Mortgage Bonds, Series 2001:
2,000 5.750%, 7/15/18 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,192,260
2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,926,990
3,405 Gary, Indiana, GNMA/FHA Mortgage Revenue Bonds, Windsor 11/11 at 102.00 AAA 3,442,319
Square Project, Series 2001A, 5.375%, 10/20/41 (Alternative
Minimum Tax)
1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 AAA 1,306,763
Corporation, Indiana, First Mortgage Bonds, Series 2001,
5.125%, 1/15/23 - AMBAC Insured
9,500 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AAA 10,072,375
Butler University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
4,230 Indiana Finance Authority, Educational Facilities Revenue Bonds, 6/15 at 100.00 Aa3 4,338,584
Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,867,312
Community Hospitals of Indiana, Series 2005A,
5.000%, 5/01/35 - AMBAC Insured
2,650 Indianapolis, Indiana, Special Facility Revenue Bonds, 5/06 at 102.00 N/R 265,008
United Airlines Inc., Indianapolis Maintenance Center Project,
Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax) (5)
3,500 University of Southern Indiana, Student Fee Bonds, 10/11 at 100.00 Aaa 3,625,370
Series 2001H, 5.000%, 10/01/21 - AMBAC Insured
Wayne County Jail Holding Corporation, Indiana, First
Mortgage Bonds, Series 2001:
1,150 5.625%, 7/15/18 - AMBAC Insured 1/13 at 101.00 AAA 1,256,099
1,090 5.500%, 7/15/22 - AMBAC Insured 1/13 at 101.00 AAA 1,176,339
------------------------------------------------------------------------------------------------------------------------------------
36,580 Total Indiana 35,855,209
------------------------------------------------------------------------------------------------------------------------------------
65
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 5.9% (4.0% OF TOTAL INVESTMENTS)
$ 2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River 5/11 at 100.00 AAA $ 2,057,000
Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
28,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 29,776,599
3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,290,648
------------------------------------------------------------------------------------------------------------------------------------
33,950 Total Iowa 36,124,247
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.1% (2.1% OF TOTAL INVESTMENTS)
18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 19,251,470
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 2001A, 5.125%, 5/15/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.4% (2.3% OF TOTAL INVESTMENTS)
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 20,856,653
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.1% (0.7% OF TOTAL INVESTMENTS)
Maine State Housing Authority, Single Family Mortgage
Purchase Bonds, Series 2001B:
4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,723,775
1,800 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,836,954
------------------------------------------------------------------------------------------------------------------------------------
6,410 Total Maine 6,560,729
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,570 Maryland Community Development Administration, Insured 7/11 at 100.00 Aa2 1,604,446
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2001B, 5.250%, 7/01/21 (Alternative Minimum Tax)
10,600 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 10,714,904
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,170 Total Maryland 12,319,350
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.7% (1.1% OF TOTAL INVESTMENTS)
5,000 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 AAA 5,215,850
Bonds, Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 -
AMBAC Insured (Alternative Minimum Tax)
5,150 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 5,218,804
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,150 Total Massachusetts 10,434,654
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 9.1% (6.1% OF TOTAL INVESTMENTS)
15,000 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA 18,118,650
Tax School Building and Site Improvement Bonds,
Series 2001A, 6.000%, 5/01/29 - FSA Insured
11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 11,956,890
Spectrum Health, Series 2001A, 5.500%, 1/15/31
(Pre-refunded 7/15/11)
1,235 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 AA- 1,321,030
Program, Series 2001I, 5.500%, 10/15/18
1,355 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 1,294,675
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
3,485 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 3,719,331
Refunding Bonds, Sisters of Mercy Health Corporation,
Series 1993P, 5.375%, 8/15/14 - MBIA Insured (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Sparrow Obligated Group, Series 2001:
1,400 5.500%, 11/15/21 11/11 at 101.00 A+ 1,452,472
2,500 5.625%, 11/15/31 11/11 at 101.00 A+ 2,589,775
12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 13,050,421
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
2,395 Ypsilanti Community Utilities Authority, Washtenaw County, 5/11 at 100.00 AAA 2,500,572
Michigan, General Obligation Bonds, Sanitary Sewerage
System 3, Series 2001, 5.100%, 5/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
51,010 Total Michigan 56,003,816
------------------------------------------------------------------------------------------------------------------------------------
66
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 2,340 Dakota County Community Development Agency, Minnesota, 10/11 at 105.00 Aaa $ 2,446,119
GNMA Collateralized Multifamily Housing Revenue Bonds,
Rose Apartments Project, Series 2001, 6.350%, 10/20/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/09 at 103.00 AAA 2,195,514
Retirement Facility Mortgage Revenue Refunding Bonds,
Aldersgate Retirement Community Inc. Project, Series 1999A,
5.450%, 5/20/34
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,825 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R (4) 2,015,019
Revenue Bonds, Gravois Bluffs Redevelopment Project,
Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
Missouri Development Finance Board, Cultural Facilities Revenue
Bonds, Nelson Gallery Foundation, Series 2001A:
3,335 5.250%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 3,529,064
3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,714,247
3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 3,898,299
2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,148,079
------------------------------------------------------------------------------------------------------------------------------------
14,405 Total Missouri 15,304,708
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B1 5,243,650
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9% (0.6% OF TOTAL INVESTMENTS)
Nebraska Investment Finance Authority, Single Family Housing
Revenue Bonds, Series 2001D:
2,255 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,300,574
3,035 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,081,162
------------------------------------------------------------------------------------------------------------------------------------
5,290 Total Nebraska 5,381,736
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.8% (5.3% OF TOTAL INVESTMENTS)
35,000 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AAA 36,970,497
Bonds, Series 2000, 5.500%, 7/01/30 - MBIA Insured
2,000 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 2,072,920
Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 4,168,560
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40
265 Nevada Housing Division, Single Family Mortgage Bonds, 4/08 at 101.50 Aaa 269,879
Senior Series 1998A-1, 5.300%, 4/01/18 (Alternative
Minimum Tax)
4,290 University of Nevada, Revenue Bonds, Community College 1/12 at 100.00 AAA 4,508,447
System, Series 2001A, 5.250%, 7/01/26 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
45,555 Total Nevada 47,990,303
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2% (0.3% OF TOTAL INVESTMENTS)
2,000 New Hampshire Health and Education Authority, Hospital 10/11 at 101.00 Aaa 2,140,860
Revenue Bonds, Concord Hospital, Series 2001,
5.500%, 10/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.4% (1.6% OF TOTAL INVESTMENTS)
10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 Aaa 10,379,800
Revenue Bonds, American Water Company, Series 2002A,
5.250%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax)
4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,484,164
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,125 Total New Jersey 14,863,964
------------------------------------------------------------------------------------------------------------------------------------
67
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.4% (2.9% OF TOTAL INVESTMENTS)
$ 1,780 East Rochester Housing Authority, New York, GNMA Secured 10/11 at 101.00 AAA $ 1,827,366
Revenue Bonds, Gates Senior Housing Inc., Series 2001,
5.300%, 4/20/31
5,350 Metropolitan Transportation Authority, New York, Dedicated 11/11 at 100.00 AAA 5,695,824
Tax Fund Bonds, Series 2001A, 5.000%, 11/15/31
(Pre-refunded 11/15/11) - FGIC Insured
4,155 Monroe County Airport Authority, New York, Revenue Refunding No Opt. Call AAA 4,504,851
Bonds, Greater Rochester International Airport, Series 1999,
5.750%, 1/01/13 - MBIA Insured (Alternative Minimum Tax)
New York City Municipal Water Finance Authority, New York, Water
and Sewerage System Revenue Bonds, Fiscal Series 2001A:
3,610 5.500%, 6/15/33 (Pre-refunded 6/15/10) - MBIA Insured 6/10 at 101.00 AAA 3,888,656
5,710 5.500%, 6/15/33 (Pre-refunded 6/15/10) - FGIC Insured 6/10 at 101.00 AAA 6,150,755
2,500 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AAA 2,720,925
Series 2002G, 5.625%, 8/01/20 - MBIA Insured
2,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 2,125,060
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
25,105 Total New York 26,913,437
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Charlotte-Mecklenburg Hospital Authority, North Carolina,
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A:
1,750 4.875%, 1/15/32 1/15 at 100.00 AA 1,748,338
3,000 5.000%, 1/15/45 1/15 at 100.00 AA 3,028,680
1,800 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call A3 1,921,374
Revenue Bonds, Series 2003A, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total North Carolina 6,698,392
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,370 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 2,411,712
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative
Minimum Tax)
7,600 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 7,853,308
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
Portage County, Ohio, General Obligation Bonds, Series 2001:
1,870 5.000%, 12/01/21 - FGIC Insured 12/11 at 100.00 AAA 1,941,714
1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AAA 1,839,947
------------------------------------------------------------------------------------------------------------------------------------
13,615 Total Ohio 14,046,681
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,500 Oklahoma Development Finance Authority, Revenue Refunding 8/09 at 101.00 AAA 2,660,075
Bonds, Hillcrest Healthcare System, Series 1999A,
5.625%, 8/15/29 (Pre-refunded 8/15/09)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5% (1.7% OF TOTAL INVESTMENTS)
4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AAA 4,933,214
Authority, Revenue Bonds, PeaceHealth Project, Series 2001,
5.250%, 11/15/21 - AMBAC Insured
10,000 Oregon Housing and Community Services Department, 7/10 at 100.00 Aaa 10,260,200
Multifamily Housing Revenue Bonds, Series 2000A,
6.050%, 7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,700 Total Oregon 15,193,414
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9% (1.3% OF TOTAL INVESTMENTS)
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
2,000 9.250%, 11/15/22 11/10 at 102.00 Ba3 2,382,820
2,000 9.250%, 11/15/30 11/10 at 102.00 Ba3 2,381,000
3,500 Pennsylvania Economic Development Financing Authority, 7/06 at 100.00 B+ 3,512,950
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.600%, 1/01/19
(Alternative Minimum Tax)
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA $ 3,517,007
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded
8/01/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,705 Total Pennsylvania 11,793,777
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.6% (1.1% OF TOTAL INVESTMENTS)
2,185 Greenville County, South Carolina, Special Source Revenue 4/11 at 101.00 AAA 2,337,491
Bonds, Road Improvement Project, Series 2001,
5.500%, 4/01/21 - AMBAC Insured
6,850 South Carolina Transportation Infrastructure Bank, Revenue 10/11 at 100.00 Aaa 7,421,085
Bonds, Series 2001A, 5.500%, 10/01/22 (Pre-refunded
10/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,035 Total South Carolina 9,758,576
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.3% (0.9% OF TOTAL INVESTMENTS)
5,210 Memphis-Shelby County Airport Authority, Tennessee, 3/11 at 100.00 AAA 5,486,599
Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/14 -
FSA Insured (Alternative Minimum Tax)
1,185 Tennessee Housing Development Agency, Homeownership 1/09 at 101.00 AA 1,206,117
Program Bonds, Series 1998-2, 5.350%, 7/01/23 (Alternative
Minimum Tax)
1,290 Tennessee Housing Development Agency, Homeownership 7/11 at 100.00 AA 1,313,014
Program Bonds, Series 2001-3A, 5.200%, 7/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,685 Total Tennessee 8,005,730
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 18.0% (12.1% OF TOTAL INVESTMENTS)
1,125 Brushy Creek Municipal Utility District, Williamson County, 6/09 at 100.00 Aaa 1,155,814
Texas, Combination Unlimited Tax and Revenue Refunding
Bonds, Series 2001, 5.125%, 6/01/26 - FSA Insured
Collins and Denton Counties, Frisco, Texas, General Obligation
Bonds, Series 2001:
1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AAA 1,960,195
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AAA 2,070,223
3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 4,034,069
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 - FGIC Insured (Alternative Minimum Tax)
5,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 5,409,000
Regional Health System, Series 2004A, 7.000%, 9/01/25
4,040 Harris County, Texas, Tax and Revenue Certificates of 8/11 at 100.00 AA+ 4,119,709
Obligation, Series 2001, 5.000%, 8/15/27
6,000 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 6,871,140
Revenue Refunding Bonds, Series 2001B, 5.500%, 12/01/29 -
MBIA Insured (ETM)
7,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/08 at 101.00 AAA 7,218,890
Bonds, Series 1998B, 5.250%, 7/01/14 - FGIC Insured
(Alternative Minimum Tax)
Houston, Texas, Subordinate Lien Airport System Revenue
Refunding Bonds, Series 2001A:
2,525 5.500%, 7/01/13 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 2,680,540
2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 3,079,445
Jefferson County Health Facilities Development Corporation,
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of
Southeast Texas, Series 2001:
8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 AAA 8,845,440
8,500 5.500%, 8/15/41 -AMBAC Insured 8/11 at 100.00 AAA 8,932,055
10,700 Laredo Independent School District, Webb County, Texas, 8/11 at 100.00 AAA 10,989,649
General Obligation Refunding Bonds, Series 2001,
5.000%, 8/01/25
2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 2,630,175
Revenue Refunding Bonds, Houston Light and Power
Company, Series 1997, 5.125%, 11/01/28 - AMBAC Insured
(Alternative Minimum Tax)
1,540 Medina Valley Independent School District, Medina County, 2/11 at 100.00 Aaa 1,639,084
Texas, General Obligation Bonds, Series 2001, 5.250%, 2/15/26
(Pre-refunded 2/15/11)
5,430 Mineral Wells Independent School District, Pale Pinto and 2/08 at 100.00 Aaa 5,458,453
Parker Counties, Texas, Unlimited School Tax Building and
Refunding Bonds, Series 1998, 4.750%, 2/15/22
3,000 North Central Texas Health Facilities Development Corporation, 2/08 at 102.00 AAA 3,119,130
Revenue Bonds, Texas Health Resources System, Series 1997B,
5.375%, 2/15/26 - MBIA Insured
69
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,045 Port of Houston Authority, Harris County, Texas, General 10/11 at 100.00 AAA $ 3,199,747
Obligation Port Improvement Bonds, Series 2001B,
5.500%, 10/01/17 - FGIC Insured (Alternative Minimum Tax)
10,715 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 11,078,131
Residential Mortgage Revenue Bonds, Series 2001A,
5.350%, 7/01/33 (Alternative Minimum Tax)
15,700 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 15,834,863
Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18
------------------------------------------------------------------------------------------------------------------------------------
105,990 Total Texas 110,325,752
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9% (0.6% OF TOTAL INVESTMENTS)
Utah Housing Corporation, Single Family Mortgage Bonds,
Series 2001E:
1,935 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 1,944,249
605 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 617,076
Utah Housing Corporation, Single Family Mortgage Bonds,
Series 2001F-1:
2,435 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 2,438,141
620 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 AA- 620,980
------------------------------------------------------------------------------------------------------------------------------------
5,595 Total Utah 5,620,446
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
7,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 77.58 BB- 4,749,990
Bonds, Route 895 Connector Toll Road, Series 1998B,
0.000%, 8/15/13
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 15.9% (10.7% OF TOTAL INVESTMENTS)
Bellingham Housing Authority, Washington, Housing Revenue
Bonds, Varsity Village Project, Series 2001A:
1,000 5.500%, 12/01/27 - MBIA Insured 12/11 at 100.00 Aaa 1,066,300
2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,142,500
1,500 Grays Harbor County Public Utility District 1, Washington, 1/11 at 100.00 AAA 1,562,775
Electric System Revenue Bonds, Series 2001, 5.125%, 1/01/22 -
AMBAC Insured
2,475 Klickitat County Public Utility District 1, Washington, 12/11 at 100.00 AAA 2,529,945
Electric Revenue Bonds, Series 2001B, 5.000%, 12/01/26 -
AMBAC Insured
12,955 Port of Seattle, Washington, Passenger Facility Charge 12/08 at 101.00 AAA 13,396,247
Revenue Bonds, Series 1998B, 5.300%, 12/01/16 - AMBAC
Insured (Alternative Minimum Tax)
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535 5.625%, 4/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 2,688,976
16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum Tax) 10/08 at 100.00 AAA 16,140,160
2,090 Public Utility District 1, Benton County, Washington, Electric 11/11 at 100.00 AAA 2,268,549
Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15 -
FSA Insured
5,680 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 6,024,378
Refunding and Improvement Bonds, Series 2001,
5.500%, 3/01/18 - FSA Insured
4,530 Tacoma, Washington, Solid Waste Utility Revenue Refunding 12/11 at 100.00 AAA 4,753,873
Bonds, Series 2001, 5.250%, 12/01/21 - AMBAC Insured
3,720 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,998,070
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.375%, 10/01/18 (Pre-refunded 10/01/11) -
AMBAC Insured
Washington State Healthcare Facilities Authority, Revenue
Bonds, Good Samaritan Hospital, Series 2001:
5,480 5.500%, 10/01/21 - RAAI Insured 10/11 at 101.00 AA 5,784,195
25,435 5.625%, 10/01/31 - RAAI Insured 10/11 at 101.00 AA 26,826,548
Washington State Healthcare Facilities Authority, Revenue
Bonds, Group Health Cooperative of Puget Sound, Series 2001:
3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 AAA 3,174,632
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,076,141
2,250 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,337,030
Convention and Trade Center, Series 1999, 5.250%, 7/01/14 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
93,570 Total Washington 97,770,319
------------------------------------------------------------------------------------------------------------------------------------
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.5% (3.0% OF TOTAL INVESTMENTS)
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds,
Series 2001:
$ 3,705 5.375%, 1/01/20 - FGIC Insured 1/12 at 100.00 Aaa $ 3,944,676
1,850 5.000%, 1/01/21 - FGIC Insured 1/12 at 100.00 Aaa 1,918,080
1,735 Evansville Community School District, Dane, Green and Rock 4/11 at 100.00 AAA 1,869,116
Counties, Wisconsin, General Obligation Refunding Bonds,
Series 2001, 5.500%, 4/01/20 (Pre-refunded 4/01/11) -
FGIC Insured
12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/08 at 102.00 AAA 12,930,610
Bonds, Dairyland Power Cooperative, Series 1997B,
5.550%, 2/01/15 - AMBAC Insured
4,000 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 4,291,720
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30
2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ 2,649,400
Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25
------------------------------------------------------------------------------------------------------------------------------------
26,040 Total Wisconsin 27,603,602
------------------------------------------------------------------------------------------------------------------------------------
$ 888,495 Total Investments (cost $875,641,653) - 148.8% 913,725,017
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 12,174,183
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (312,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 613,899,200
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc. filed for
federal bankruptcy protection. The Adviser determined
that it was likely that United would not remain current
on their interest payment obligations with respect to
the bonds previously held and thus the Fund had stopped
accruing interest on its UAL bonds.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
71
Statement of
ASSETS AND LIABILITIES April 30, 2006 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value $1,365,689,434 $1,010,621,834 $1,050,320,041 $879,445,825 $672,175,824 $913,725,017
(cost $1,290,078,842,
$947,766,169, $992,774,492,
$825,790,358, $626,382,410
and $875,641,653,
respectively)
Cash -- -- -- 735,060 -- --
Receivables:
Interest 21,431,602 17,454,437 16,532,495 13,238,737 11,512,954 15,400,071
Investments sold 18,402,720 10,506,472 50,000 521,843 1,787,269 1,042,269
Other assets 118,960 73,464 74,748 64,359 31,867 38,116
----------------------------------------------------------------------------------------------------------------------------------
Total assets 1,405,642,716 1,038,656,207 1,066,977,284 894,005,824 685,507,914 930,205,473
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 4,126,524 865,919 2,632,979 -- 1,901,338 3,770,593
Payable for investments
purchased 4,387,800 11,609,010 -- 4,387,800 646,626 --
Accrued expenses:
Management fees 696,493 516,531 534,898 302,895 206,305 238,564
Other 277,762 203,875 213,108 157,893 114,753 151,801
Preferred share dividends
payable 233,926 186,455 202,772 136,518 131,752 145,315
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 9,722,505 13,381,790 3,583,757 4,985,106 3,000,774 4,306,273
----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at
liquidation value 479,000,000 358,000,000 380,000,000 295,000,000 222,000,000 312,000,000
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 916,920,211 $ 667,274,417 $ 683,393,527 $594,020,718 $460,507,140 $613,899,200
==================================================================================================================================
Common shares outstanding 59,914,073 43,065,903 45,540,872 39,267,491 29,314,839 40,315,941
==================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to
Common shares, divided by
Common shares outstanding) $ 15.30 $ 15.49 $ 15.01 $ 15.13 $ 15.71 $ 15.23
==================================================================================================================================
NET ASSETS APPLICABLE TO
COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par
value per share $ 599,141 $ 430,659 $ 455,409 $ 392,675 $ 293,148 $ 403,159
Paid-in surplus 836,423,631 601,673,873 635,499,922 558,149,941 416,659,122 572,934,358
Undistributed
(Over-distribution
of) net investment income 3,535,291 4,235,570 2,384,259 2,329,322 3,309,471 2,612,522
Accumulated net realized
gain (loss) from
investments and
derivative transactions 751,556 (1,921,350) (12,491,612) (20,506,687) (5,548,015) (134,203)
Net unrealized appreciation
(depreciation) of
investments 75,610,592 62,855,665 57,545,549 53,655,467 45,793,414 38,083,364
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 916,920,211 $ 667,274,417 $ 683,393,527 $594,020,718 $460,507,140 $613,899,200
==================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited
==================================================================================================================================
See accompanying notes to financial statements.
72
Statement of
OPERATIONS Six Months Ended April 30, 2006 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $35,380,264 $27,251,067 $27,390,029 $22,933,983 $18,102,607 $23,554,686
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,237,182 3,137,478 3,247,266 2,731,292 2,103,608 2,834,450
Preferred shares - auction fees 594,400 444,248 471,514 366,174 273,898 387,101
Preferred shares - dividend
disbursing agent fees 24,795 24,795 19,836 14,877 14,877 14,877
Shareholders' servicing agent fees
and expenses 90,347 55,637 60,119 9,172 3,777 4,792
Custodian's fees and expenses 155,109 118,071 120,981 99,499 79,442 98,746
Directors'/Trustees' fees
and expenses 13,913 11,143 10,750 8,484 6,965 9,538
Professional fees 29,828 28,302 17,538 30,430 17,237 20,329
Shareholders' reports - printing
and mailing expenses 65,228 47,438 51,752 40,182 29,757 38,987
Stock exchange listing fees 11,066 7,971 8,411 7,270 2,373 1,692
Investor relations expense 42,983 32,706 33,433 28,328 23,297 28,102
Other expenses 29,482 30,133 26,761 17,819 18,307 18,438
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 5,294,333 3,937,922 4,068,361 3,353,527 2,573,538 3,457,052
Custodian fee credit (45,861) (20,076) (34,117) (53,889) (47,225) (21,192)
Expense reimbursement -- -- -- (889,711) (993,573) (1,385,992)
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,248,472 3,917,846 4,034,244 2,409,927 1,532,740 2,049,868
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 30,131,792 23,333,221 23,355,785 20,524,056 16,569,867 21,504,818
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from
investments 753,431 (1,871,103) (4,362,308) 509,616 (638,762) 486,574
Change in net unrealized
appreciation (depreciation) of
investments (9,155,065) (4,462,030) (159,640) (5,005,406) (559,532) (2,406,533)
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) (8,401,634) (6,333,133) (4,521,948) (4,495,790) (1,198,294) (1,919,959)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (6,798,755) (5,112,619) (5,512,599) (4,341,625) (3,236,858) (4,509,060)
From accumulated net realized
gains (204,889) (119,969) -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders (7,003,644) (5,232,588) (5,512,599) (4,341,625) (3,236,858) (4,509,060)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations $14,726,514 $11,767,500 $13,321,238 $11,686,641 $12,134,715 $15,075,799
==================================================================================================================================
See accompanying notes to financial statements.
73
Statement of
CHANGES IN NET ASSETS (Unaudited)
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO)
------------------------------ ------------------------------ -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 30,131,792 $ 61,211,198 $ 23,333,221 $ 46,918,021 $ 23,355,785 $ 46,851,160
Net realized gain (loss) from
investments 753,431 1,174,258 (1,871,103) 739,548 (4,362,308) 6,140,447
Net realized gain (loss) from
forward swaps -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments (9,155,065) (16,746,198) (4,462,030) (10,417,790) (159,640) (18,854,854)
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- -- --
Distributions to Preferred shareholders:
From net investment income (6,798,755) (9,513,192) (5,112,619) (6,994,789) (5,512,599) (7,453,196)
From accumulated net
realized gains (204,889) (69,318) (119,969) (47,587) -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 14,726,514 36,056,748 11,767,500 30,197,403 13,321,238 26,683,557
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (26,308,282) (56,600,807) (20,186,695) (43,068,628) (19,609,904) (41,760,989)
From accumulated net realized
gains (1,042,505) (904,764) (628,192) (641,084) -- --
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (27,350,787) (57,505,571) (20,814,887) (43,709,712) (19,609,904) (41,760,989)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 643,731 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- 643,731 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares (12,624,273) (21,448,823) (8,403,656) (13,512,309) (6,288,666) (15,077,432)
Net assets applicable to Common
shares at the beginning of
period 929,544,484 950,993,307 675,678,073 689,190,382 689,682,193 704,759,625
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $916,920,211 $929,544,484 $667,274,417 $675,678,073 $683,393,527 $689,682,193
==================================================================================================================================
Undistributed (Over-distribution
of) net investment income at
the end of period $ 3,535,291 $ 6,510,536 $ 4,235,570 $ 6,201,663 $ 2,384,259 $ 4,150,977
==================================================================================================================================
See accompanying notes to financial statements.
74
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
------------------------------ ------------------------------ ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,524,056 $ 41,783,665 $ 16,569,867 $ 33,182,825 $ 21,504,818 $ 42,749,145
Net realized gain (loss) from
investments 509,616 (176,759) (638,762) 365,453 486,574 60,740
Net realized gain (loss) from
forward swaps -- -- -- (5,034,851) -- --
Change in net unrealized
appreciation (depreciation)
of investments (5,005,406) (10,221,934) (559,532) 7,731,035 (2,406,533) 133,784
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- 3,532,408 -- --
Distributions to Preferred shareholders:
From net investment income (4,341,625) (5,755,365) (3,236,858) (4,391,879) (4,509,060) (6,046,697)
From accumulated net
realized gains -- -- -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 11,686,641 25,629,607 12,134,715 35,384,991 15,075,799 36,896,972
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (17,552,569) (39,071,157) (14,885,679) (30,220,159) (18,623,724) (38,657,406)
From accumulated net realized
gains -- -- -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (17,552,569) (39,071,157) (14,885,679) (30,220,159) (18,623,724) (38,657,406)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 395,901 145,668 89,369 --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- 395,901 -- 89,369 --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares (5,865,928) (13,441,550) (2,355,063) 5,310,500 (3,458,556) (1,760,434)
Net assets applicable to Common
shares at the beginning of
period 599,886,646 613,328,196 462,862,203 457,551,703 617,357,756 619,118,190
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $594,020,718 $599,886,646 $460,507,140 $462,862,203 $613,899,200 $617,357,756
==================================================================================================================================
Undistributed (Over-distribution
of) net investment income at
the end of period $ 2,329,322 $ 3,699,460 $ 3,309,471 $ 4,862,141 $ 2,612,522 $ 4,240,488
==================================================================================================================================
See accompanying notes to financial statements.
75
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Performance Plus Municipal Fund, Inc.
(NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market
Opportunity Fund, Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD),
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) and Nuveen Dividend Advantage
Municipal Fund 3 (NZF). Performance Plus (NPP), Municipal Advantage (NMA),
Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York
Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF)
are traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service establishes fair market value based
on yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of derivative investments are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or derivative
investment, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment are unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Exchange-listed securities are
generally valued at the last sales price on the securities exchange on which
such securities are primarily traded. Securities traded on a securities exchange
for which there are no transactions on a given day or securities not listed on a
securities exchange are valued at the mean of the closing bid and asked prices.
Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At April 30, 2006,
Performance Plus (NPP), Municipal Advantage (NMA) and Dividend Advantage (NAD)
had outstanding when-issued/delayed delivery purchase commitments of $4,387,800,
$11,609,010 and $4,387,800, respectively. There were no such outstanding
purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any. Dividend
income, if any, is recorded on the ex-dividend date.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
76
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------
Number of shares:
Series M 4,000 3,000 4,000 4,000 3,000 --
Series T 4,000 3,000 4,000 4,000 3,000 --
Series W 4,000 3,000 3,200 -- -- 4,160
Series TH 3,160 2,320 -- 3,800 -- 4,160
Series F 4,000 3,000 4,000 -- 2,880 4,160
-----------------------------------------------------------------------------------------------------------
Total 19,160 14,320 15,200 11,800 8,880 12,480
===========================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract, and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swaps' termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount. At April 30, 2006, the Funds did not have any forward swap contracts
outstanding.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Director/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
77
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
Transactions in Common shares were as follows:
MUNICIPAL MARKET
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO)
---------------------- ---------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05
--------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- 40,309 -- -- --
--------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
------------------------ -------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05
--------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- 23,971 8,868 5,822 --
--------------------------------------------------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended April 30, 2006, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------
Purchases $38,547,208 $34,820,164 $61,670,017 $42,666,637 $3,486,748 $13,255,953
Sales and maturities 52,810,809 35,300,126 58,841,275 30,148,700 6,325,274 13,783,659
==============================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At April 30, 2006, the cost of investments was as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------
Cost of investments $1,289,315,652 $946,442,010 $992,488,553 $824,754,477 $630,103,294 $875,405,538
==============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2006, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $78,459,332 $65,977,346 $63,897,742 $55,960,114 $48,116,623 $40,160,348
Depreciation (2,085,550) (1,797,522) (6,066,254) (1,268,766) (6,044,093) (1,840,869)
--------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation)
of investments $76,373,782 $64,179,824 $57,831,488 $54,691,348 $42,072,530 $38,319,479
==============================================================================================================
78
The tax components of undistributed net investment income and net realized gains
at October 31, 2005, the Funds' last tax year end, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $10,432,188 $8,492,542 $7,024,566 $5,873,482 $6,955,460 $7,219,217
Undistributed net ordinary income ** 4,065 154,403 192,454 -- 12,183 --
Undistributed net long-term
capital gains 1,245,519 593,511 -- -- -- --
================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 3, 2005, paid on November 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2005, was designated for purposes of the dividends paid deduction as
follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $66,204,330 $50,312,299 $49,472,483 $45,021,305 $34,591,779 $44,838,770
Distributions from net ordinary income ** 238,651 -- -- -- -- --
Distributions from net long-term
capital gains 974,082 688,671 -- -- -- --
================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2005, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MARKET DIVIDEND DIVIDEND DIVIDEND
OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------
Expiration year:
2007 $ -- $ 1,724,693 $ -- $ --
2008 -- 14,462,547 -- --
2009 -- -- -- --
2010 -- -- -- 620,777
2011 7,158,008 4,594,300 -- --
2012 973,824 -- 246,691 --
2013 -- 104,763 402,153 --
---------------------------------------------------------------------------
Total $8,131,932 $20,886,303 $648,844 $620,777
===========================================================================
79
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual Fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
----------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
----------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE (NAD)
DIVIDEND ADVANTAGE 2 (NXZ)
DIVIDEND ADVANTAGE 3 (NZF)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
----------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
----------------------------------------------------------------------------------------------------------
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2006, the complex-level fee rate was .1888%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
----------------------------------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
----------------------------------------------------------------------------------------------------------
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
80
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to their Directors/Trustees who are affiliated with the
Adviser or to their Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of Dividend Advantage's (NAD) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
---------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
---------------------------------------------------------------------------
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion
of its fees and expenses beyond July 31, 2009.
For the first ten years of Dividend Advantage 2's (NXZ) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
---------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
---------------------------------------------------------------------------
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any
portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Dividend Advantage 3's (NZF) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
---------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
---------------------------------------------------------------------------
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any
portion of its fees and expenses beyond September 30, 2011.
81
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2006, to shareholders of record on
May 15, 2006, as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------
Dividend per share $.0705 $.0755 $.0685 $.0715 $.0820 $.0770
==============================================================================================================
82
Financial
HIGHLIGHTS (Unaudited)
83
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
=================================================================================================================
Performance Plus (NPP)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) $15.51 $ .50 $ (.14) $(.11) $ -- $ .25
2005 15.87 1.02 (.26) (.16) -- .60
2004 15.45 1.04 .42 (.07) -- 1.39
2003 15.38 1.07 .05 (.07) -- 1.05
2002 15.57 1.09 (.22) (.10) (.01) .76
2001 14.36 1.10 1.17 (.23) -- 2.04
Municipal Advantage (NMA)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 15.70 .54 (.15) (.12) -- .27
2005 16.02 1.09 (.24) (.16) -- .69
2004 15.62 1.11 .41 (.08) -- 1.44
2003 15.41 1.13 .25 (.07) (.01) 1.30
2002 15.65 1.15 (.22) (.10) (.03) .80
2001 14.61 1.16 1.10 (.24) (.03) 1.99
Market Opportunity (NMO)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 15.14 .51 (.09) (.12) -- .30
2005 15.48 1.03 (.29) (.16) -- .58
2004 15.11 1.03 .37 (.08) -- 1.32
2003 14.60 1.03 .50 (.08) -- 1.45
2002 15.24 1.11 (.70) (.11) (.01) .29
2001 14.45 1.16 .80 (.26) (.01) 1.69
Dividend Advantage (NAD)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 15.28 .52 (.11) (.11) -- .30
2005 15.62 1.06 (.25) (.15) -- .66
2004 15.17 1.09 .46 (.07) -- 1.48
2003 14.94 1.10 .19 (.07) -- 1.22
2002 14.84 1.13 .01 (.10) -- 1.04
2001 13.59 1.16 1.21 (.24) -- 2.13
Dividend Advantage 2 (NXZ)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 15.80 .57 (.04) (.11) -- .42
2005 15.63 1.13 .22 (.15) -- 1.20
2004 15.13 1.12 .51 (.07) -- 1.56
2003 14.89 1.16 .17 (.07) -- 1.26
2002 15.07 1.15 (.32) (.10) -- .73
2001(b) 14.33 .52 .88 (.09) -- 1.31
Dividend Advantage 3 (NZF)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 15.32 .53 (.05) (.11) -- .37
2005 15.36 1.06 .01 (.15) -- .92
2004 14.74 1.06 .59 (.07) -- 1.58
2003 14.56 1.07 .10 (.07) -- 1.10
2002 14.47 1.03 .16 (.10) -- 1.09
2001(c) 14.33 .03 .14 -- -- .17
=================================================================================================================
Less Distributions
-------------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
===========================================================================================================================
Performance Plus (NPP)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) $ (.44) $(.02) $ (.46) $ -- $15.30 $14.51
2005 (.94) (.02) (.96) -- 15.51 14.43
2004 (.97) -- (.97) -- 15.87 14.95
2003 (.95) (.03) (.98) -- 15.45 14.64
2002 (.90) (.04) (.94) (.01) 15.38 14.28
2001 (.83) -- (.83) -- 15.57 14.58
Municipal Advantage (NMA)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) (.47) (.01) (.48) -- 15.49 15.17
2005 (1.00) (.01) (1.01) -- 15.70 15.19
2004 (1.03) (.01) (1.04) -- 16.02 15.70
2003 (1.02) (.07) (1.09) -- 15.62 15.44
2002 (.94) (.10) (1.04) -- 15.41 14.66
2001 (.87) (.08) (.95) -- 15.65 14.85
Market Opportunity (NMO)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) (.43) -- (.43) -- 15.01 14.09
2005 (.92) -- (.92) -- 15.14 14.19
2004 (.95) -- (.95) -- 15.48 14.44
2003 (.94) -- (.94) -- 15.11 14.29
2002 (.91) (.02) (.93) -- 14.60 13.80
2001 (.87) (.03) (.90) -- 15.24 14.65
Dividend Advantage (NAD)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) (.45) -- (.45) -- 15.13 14.41
2005 (1.00) -- (1.00) -- 15.28 14.58
2004 (1.03) -- (1.03) -- 15.62 15.31
2003 (.99) -- (.99) -- 15.17 15.12
2002 (.94) -- (.94) -- 14.94 14.50
2001 (.88) -- (.88) -- 14.84 15.14
Dividend Advantage 2 (NXZ)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) (.51) -- (.51) -- 15.71 16.20
2005 (1.03) -- (1.03) -- 15.80 15.64
2004 (1.03) (.03) (1.06) -- 15.63 15.38
2003 (1.01) (.01) (1.02) -- 15.13 14.85
2002 (.91) (.01) (.92) .01 14.89 13.91
2001(b) (.45) -- (.45) (.12) 15.07 14.96
Dividend Advantage 3 (NZF)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) (.46) -- (.46) -- 15.23 15.10
2005 (.96) -- (.96) -- 15.32 14.41
2004 (.96) -- (.96) -- 15.36 14.50
2003 (.93) -- (.93) .01 14.74 13.80
2002 (.91) -- (.91) (.09) 14.56 13.53
2001(c) -- -- -- (.03) 14.47 15.07
===========================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Before Credit/ After Credit/
Total Returns Reimbursement/Refund Reimbursement/Refund***
------------------- ------------------------- -------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Based Ending Expenses Income to Expenses Income to
on Net to Average Average to Average Average
Based Common Assets Net Assets Net Assets Net Assets Net Assets
on Share Net Applicable Applicable Applicable Applicable Applicable Portfolio
Market Asset to Common to Common to Common to Common to Common Turnover
Value** Value** Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
Performance Plus (NPP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 3.69% 1.58% $916,920 1.15%* 6.51%* 1.14%* 6.52%* 3%
2005 3.02 3.83 929,544 1.15 6.45 1.14 6.46 6
2004 9.10 9.30 950,993 1.17 6.69 1.17 6.70 11
2003 9.58 6.97 925,525 1.18 6.89 1.18 6.90 10
2002 4.51 5.03 921,376 1.18 7.11 1.17 7.12 11
2001 26.96 14.51 932,937 1.15 7.29 1.14 7.30 14
Municipal Advantage (NMA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 3.02 1.74 667,274 1.17* 6.95* 1.17* 6.96* 3
2005 3.29 4.42 675,678 1.17 6.81 1.16 6.82 8
2004 8.82 9.57 689,190 1.19 7.00 1.18 7.00 4
2003 13.17 8.71 671,147 1.21 7.27 1.20 7.27 7
2002 5.89 5.39 662,270 1.22 7.55 1.22 7.55 17
2001 23.35 13.97 672,673 1.23 7.60 1.22 7.61 18
Market Opportunity (NMO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 2.29 1.99 683,394 1.19* 6.80* 1.18* 6.81* 6
2005 4.70 3.78 689,682 1.19 6.66 1.18 6.67 7
2004 7.97 9.00 704,760 1.21 6.75 1.19 6.77 4
2003 10.62 10.24 687,955 1.25 6.94 1.25 6.94 9
2002 .49 2.03 664,914 1.24 7.50 1.24 7.51 13
2001 20.03 11.93 694,025 1.23 7.73 1.23 7.74 11
Dividend Advantage (NAD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 1.85 1.94 594,021 1.12* 6.56* .81* 6.87* 3
2005 1.77 4.27 599,887 1.17 6.48 .80 6.84 11
2004 8.37 10.06 613,328 1.14 6.69 .70 7.12 7
2003 11.41 8.41 595,266 1.35 6.78 .89 7.24 3
2002 2.01 7.26 586,045 1.25 7.24 .80 7.70 7
2001 27.35 16.03 581,089 1.26 7.56 .78 8.04 12
Dividend Advantage 2 (NXZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 6.82 2.66 460,507 1.12* 6.74* .66* 7.19* 1
2005 8.58 7.83 462,862 1.12 6.66 .67 7.12 2
2004 11.16 10.67 457,552 1.14 6.87 .69 7.32 3
2003 14.39 8.67 443,101 1.17 7.20 .71 7.66 11
2002 (.81) 5.16 435,907 1.17 7.32 .70 7.79 9
2001(b) 2.75 8.39 441,308 1.13* 5.56* .63* 6.06* 5
Dividend Advantage 3 (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 8.03 2.44 613,899 1.12* 6.54* .67* 7.00* 1
2005 6.11 6.09 617,358 1.13 6.39 .68 6.84 3
2004 12.45 11.10 619,118 1.15 6.64 .69 7.10 3
2003 9.04 7.82 594,154 1.17 6.80 .71 7.26 3
2002 (4.26) 7.20 586,799 1.17 6.78 .70 7.25 7
2001(c) .47 .98 583,100 .72* 2.05* .42* 2.36* 1
====================================================================================================================================
Preferred Shares at End of Period
------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================================
Performance Plus (NPP)
---------------------------------------------------------------------
Year Ended 10/31:
2006(a) $479,000 $25,000 $72,856
2005 479,000 25,000 73,515
2004 479,000 25,000 74,634
2003 479,000 25,000 73,305
2002 479,000 25,000 73,089
2001 444,000 25,000 77,530
Municipal Advantage (NMA)
---------------------------------------------------------------------
Year Ended 10/31:
2006(a) 358,000 25,000 71,597
2005 358,000 25,000 72,184
2004 358,000 25,000 73,128
2003 358,000 25,000 71,868
2002 358,000 25,000 71,248
2001 358,000 25,000 71,974
Market Opportunity (NMO)
---------------------------------------------------------------------
Year Ended 10/31:
2006(a) 380,000 25,000 69,960
2005 380,000 25,000 70,374
2004 380,000 25,000 71,366
2003 380,000 25,000 70,260
2002 380,000 25,000 68,744
2001 380,000 25,000 70,660
Dividend Advantage (NAD)
---------------------------------------------------------------------
Year Ended 10/31:
2006(a) 295,000 25,000 75,341
2005 295,000 25,000 75,838
2004 295,000 25,000 76,977
2003 295,000 25,000 75,446
2002 295,000 25,000 74,665
2001 295,000 25,000 74,245
Dividend Advantage 2 (NXZ)
---------------------------------------------------------------------
Year Ended 10/31:
2006(a) 222,000 25,000 76,859
2005 222,000 25,000 77,124
2004 222,000 25,000 76,526
2003 222,000 25,000 74,899
2002 222,000 25,000 74,089
2001(b) 222,000 25,000 74,697
Dividend Advantage 3 (NZF)
---------------------------------------------------------------------
Year Ended 10/31:
2006(a) 312,000 25,000 74,191
2005 312,000 25,000 74,468
2004 312,000 25,000 74,609
2003 312,000 25,000 72,608
2002 312,000 25,000 72,019
2001(c) -- -- --
=====================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit, expense reimbursement, and legal fee refund,
where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the six months ended April 30, 2006.
(b) For the period March 27, 2001 (commencement of operations) through October
31, 2001. (c) For the period September 25, 2001 (commencement of
operations) through October 31, 2001.
(c) For the period September 25, 2001 (commencement of operations) through
October 31, 2001.
See accompanying notes to financial statements.
84-85 spread
REINVEST AUTOMATICALLY
EASILY AND CONVENIENTLY
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Callout:
NUVEEN MAKES
REINVESTING EASY.
A PHONE CALL IS
ALL IT TAKES TO
SET UP YOUR
REINVESTMENT
ACCOUNT.
86
OTHER USEFUL
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or
preferred stock in the future at such times and in such
amounts as is deemed advisable. No shares were repurchased
during the period covered by this report. Any future
repurchases will be reported to shareholders in the next
annual or semiannual report.
87
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $145 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
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ESA-B-0406D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During this reporting period, the registrant's Board of Trustees implemented a
change to the procedures by which shareholders may recommend nominees to the
registrant's board of trustees by amending the registrant's by-laws to include a
provision specifying the date by which shareholder nominations for election as
trustee at a subsequent meeting must be submitted to the registrant.
Shareholders must deliver or mail notice to the registrant not less than
forty-five days nor more than sixty days prior to the first anniversary date of
the date on which the registrant first mailed its proxy materials for the prior
year's annual meeting; provided, however, if an only if the annual meeting is
not scheduled to be held within a period that commences thirty days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty days after such anniversary date (an annual meeting date outside such
period being referred to as an "Other Annual Meeting Date" hereafter), the
shareholder notice must be given no later than the close of business on the date
forty-five days prior to such Other Annual Meeting Date or the tenth business
day following the date such Other Annual Meeting Date is first publicly
announced or disclosed. The shareholder's notice must be in writing and set
forth the name, age, date of birth, business address, residence address and
nationality of the person(s) being nominated and the class or series, number of
all shares of the registrant owned of record or beneficially be each such
person(s), any other information regarding such person required by Item 401 of
Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities
Exchange Act of 1934, as amended, any other information regarding the person(s)
to be nominated that would be required to be disclosed in a proxy statement or
other filings required to be made in connection with solicitation of proxies for
election of trustees, and whether such shareholder believes any nominee is or
will be an "interested person" (as that term is defined in the Investment
Company Act of 1940, as amended) of the registrant or sufficient information to
enable the registrant to make that determination and the written and signed
consent of the person(s) to be nominated.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Dividend Advantage Municipal Fund 3
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: July 7, 2006
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 7, 2006
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 7, 2006
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* Print the name and title of each signing officer under his or her signature.