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
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Nuveen Dividend Advantage Municipal Fund 3
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN Investments
Closed-End Funds
--------------------------------------------------------------------------------
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
April 30, 2009
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------------------ ------------------ ------------------ -------------------
NUVEEN PERFORMANCE NUVEEN MUNICIPAL NUVEEN MUNICIPAL NUVEEN DIVIDEND
PLUS MUNICIPAL ADVANTAGE MARKET OPPORTUNITY ADVANTAGE
FUND, INC. FUND, INC. FUND, INC. MUNICIPAL FUND
NPP NMA NMO NAD
------------------ ------------------
NUVEEN DIVIDEND NUVEEN DIVIDEND
ADVANTAGE ADVANTAGE
MUNICIPAL FUND 2 MUNICIPAL FUND 3
NXZ NZF
(April 09)
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LOGO: NUVEEN Investments
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The problems in the U.S. financial system and the slowdown in global economic
activity continue to create a very difficult environment for the U.S. economy.
The administration, the Federal Reserve System and Congress have initiated a
variety of programs directed at restoring liquidity to the financial markets,
providing financial support for critical financial institutions and stimulating
economic activity. There are encouraging signs that these initiatives are
beginning to have a constructive impact. It is not possible to predict whether
the actions taken to date will be sufficient to restore more normal conditions
in the financial markets or enable the economy to stabilize and set a course
toward recovery. However, the speed and scope of the government's actions are
very encouraging and more importantly, reflect a commitment to act decisively to
meet the economic challenges we face.
The performance information in the attached report reflects the impact of many
forces at work in the equity and fixed income markets. The comments by the
portfolio managers describe the strategies being used to pursue your Fund's
long-term investment goals. Parts of the financial markets continue to
experience serious dislocations and thorough research and strong investment
disciplines have never been more important in identifying risks and
opportunities. I hope you will read this information carefully.
Your Board is particularly sensitive to our shareholders' concerns in these
uncertain times. We believe that frequent and thorough communication is
essential in this regard and encourage you to visit the Nuveen website:
www.nuveen.com, for recent developments in all Nuveen funds. We also encourage
you to communicate with your financial consultant for answers to your questions
and to seek advice on your long-term investment strategy in the current market
environment.
Nuveen continues to work on resolving the issues related to the auction rate
preferred shares situation, but the unsettled conditions in the credit markets
have slowed progress. Nuveen is actively pursuing a number of solutions, all
with the goal of providing liquidity for preferred shareholders while preserving
the potential benefits of leverage for common shareholders. We appreciate the
patience you have shown as we work through the many issues involved.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/S/ Robert P. Bremner
Robert P. Bremner
Chairman of the Nuveen Fund Board
June 19, 2009
Nuveen Investments 3
PORTFOLIO MANAGERS' COMMENTS
NUVEEN INVESTMENTS MUNICIPAL CLOSED-END FUNDS NPP, NMA, NMO, NAD, NXZ, NZF
Portfolio managers Tom Spalding and Paul Brennan review key investment
strategies and the six-month performance of these six national Funds. A 33-year
veteran of Nuveen, Tom has managed NXZ since its inception in 2001 and NPP, NMA,
NMO and NAD since 2003. With 20 years of industry experience, including twelve
years at Nuveen, Paul assumed portfolio management responsibility for NZF in
2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE SIX-MONTH PERIOD
ENDED APRIL 30, 2009?
During this time, the municipal market remained under pressure from price
volatility, reduced liquidity and fundamental economic concerns. After a very
difficult start to the period, market conditions began to show signs of
improvement in mid-December 2008 and municipal bonds were on an improving trend
during the first four months of 2009. In this environment, we continued to focus
on finding bonds that offered relative value while seeking to manage liquidity
and invest for the long term.
Much of our investment activity during this period was driven by opportunities
created by market conditions. We sought to capitalize on this environment by
continuing to take a bottom-up approach to finding undervalued sectors and
individual credits with the potential to perform well over the long term. This
was true in both the new issuance (or primary) municipal bond market and
secondary markets. In the new issuance market, we found bonds with better
structures (such as higher coupons or longer call protection) than we have seen
in a long time, as market conditions required issuers to enhance offerings to
make them more attractive to buyers. In the secondary markets, we were able to
purchase bonds, especially lower-rated issues, at discounted prices as the
result of selling by some municipal market participants, particularly in
November and December 2008.
Although we were able to find some bonds at extremely discounted prices during
this period, our emphasis was always on carefully selecting bonds we believed to
offer exceptional value. In general, the bonds we purchased were ones where we
were already familiar with the credit being offered or where we were adding to
positions or sectors currently held in the portfolio. Our focus was on bonds
issued by essential service providers--including water and sewer, utilities,
local public schools, hospitals and state and local general obligation and other
tax-backed bonds--with the view that these issuers would continue to have the
resources necessary to cover debt service in a difficult economic environment.
In general, we focused our purchases on bonds with longer maturities.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
4 Nuveen Investments
Some of the cash needed for new purchases was generated by bond calls and
redemptions. We also monitored the types of credits and bond structures that
were attractive to the retail market and took advantage of strong bids to sell
selected bonds into relatively consistent retail demand. The bonds we sold
tended to have shorter maturities, as these generally offered more liquidity and
were in greater demand by retail buyers.
We continued to use inverse floating rate securities(1) in all six Funds. We
employed inverse floaters for a variety of reasons, including duration(2)
management, income enhancement, and as a form of leverage. NZF also invested in
additional types of derivatives(3) intended to help manage its duration and
common share net asset value (NAV) volatility without having a negative impact
on its income stream or common share dividends over the short term. As of April
30, 2009, the inverse floaters remained in place in all six Funds, while we had
removed the derivative positions from NZF.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE* FOR PERIODS ENDED
4/30/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
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NPP 10.01% -2.68% 3.22% 4.73%
NMA 10.53% -4.88% 2.39% 4.56%
NMO 6.91% -5.43% 2.39% 3.89%
NAD 10.58% -6.04% 2.48% N/A
NXZ 8.83% -5.01% 3.90% N/A
NZF 12.01% -4.24% 3.75% N/A
Lipper General Leveraged Municipal Debt
Funds Average(4) 9.55% -8.84% 1.64% 3.73%
Barclays Capital Municipal Bond Index(5) 8.20% 3.11% 4.11% 4.78%
S&P National Municipal Bond Index(6) 7.73% 1.14% 3.84% 4.61%
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For the six months ended April 30, 2009, the cumulative returns on common share
NAV for NPP, NMA, NAD and NZF exceeded the average return for the Lipper General
Leveraged Municipal Debt Funds Average, while NMO and NXZ slightly
underperformed. For the same period, NPP, NMA, NAD, NXZ and NZF outperformed the
returns on both the Barclays Capital Municipal Bond Index and the Standard &
Poor's (S&P) National Municipal Bond Index, while NMO lagged the returns for
these two indexes.
Key management factors that influenced the Funds' returns during this six-month
period included duration and yield curve positioning, the use of derivatives,
credit and sector allocations and individual security selection. In addition,
the use of leverage was an important factor affecting the Funds' performances
over this period. The impact of leverage is discussed in more detail on page 7.
Over this period, the municipal bond yield curve remained steep, with
longer-term yields significantly higher than shorter-term yields. Bonds in the
Barclays Capital Municipal Bond
* Six-month returns are cumulative; returns for one-year, five-year, and
ten-year 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.
1 An inverse floating rate security, also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
2 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.
3 Each Fund may invest in derivative instruments such as forwards, futures,
options and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements, and Notes to Financial Statements sections of this report.
4 The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: Six months, 54 funds; 1-year, 54 funds; 5-year, 52 funds; and
10-year, 38 funds. Fund and Lipper returns assume reinvestment of
dividends.
5 The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. Results for the Barclays Capital index
do not reflect any expenses.
6 The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the U.S. municipal bond market.
Nuveen Investments 5
Index maturing in ten years or more, especially bonds with maturities of
approximately 15 years and 22 years and longer, benefited the most from this
interest rate environment. While NAD and NMA had relatively better overall
duration and yield curve positioning than NMO and NXZ, all six Funds had good
exposure to the longer part of the yield curve, which benefited their
performances during this period.
As mentioned earlier, all these Funds continued to use inverse floating rate
securities. During this six-month period, these instruments generally had a
positive impact on the Funds' overall performances, while also helping to
support their income streams. In addition, NZF, which had a duration that was
shorter than our strategic target, used derivative positions during part of this
period to synthetically extend its duration closer to our target level. These
derivative positions, which boosted the Fund's interest rate sensitivity,
performed well and made a positive contribution to NZF's return.
Credit quality exposure was also an important positive performance factor.
Risk-averse investors put a priority on higher quality investments, causing
bonds with higher credit quality to typically perform very well. Bonds rated BBB
or below and non-rated bonds generally posted poorer returns.
Bonds supporting "essential service" sectors provided the biggest boost to the
Funds' returns during this period and included general obligation/tax-supported,
utility and health care sectors. On the whole, the Funds had good weightings in
the top-performing sectors.
The Funds' sector allocations that generally detracted from the performance
included industrial development revenue (IDR) and resource recovery bonds. Zero
coupon bonds also were among the worst performing categories in the municipal
market. NMO, in particular, had a relatively high concentration of zero coupon
bonds, which hurt its return for the period. Lower-rated bonds backed by the
1998 master tobacco settlement agreement performed poorly and pre-refunded(7)
bonds, which had been the top-performing segment of the municipal market for
some time, also underperformed. As of April 30, 2009, NMO and NXZ had the
heaviest weightings of pre-refunded bonds among these Funds.
Individual security selection was also a factor in the Funds' performances
during this period. In particular, NMO's returns were negatively impacted by its
holding of Ambac-insured bonds issued for the Las Vegas monorail project, which
links various casinos on the Las Vegas strip. The project has struggled to build
ridership and turn a profit, and proposals to extend the monorail to McCarran
International Airport remain on hold. NPP, NMA, NAD, NXZ and NZF had smaller
holdings of the monorail bonds. Also during this period, the Funds' returns were
impacted to varying degrees by their holdings of insured bonds. As noted below,
many insurers have seen their credit ratings downgraded, causing the bonds they
issued to begin trading according to their underlying credit characteristics.
While the insured bond segment of the municipal market generally performed very
well during this six-month period, insured bonds with weaker underlying credits
rated BBB or non-rated, originally purchased because of the higher yields they
offered, generally underperformed insured bonds with underlying credits rated AA
or A.
7 Pre-refundings, also known as advance 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.
6 Nuveen Investments
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors previously discussed, one of the primary reasons for
the strong six-month returns recorded by Funds was the Funds' use of financial
leverage. This positive contribution to performance stands in sharp contrast to
the preceding six-month period, when leverage had a generally detrimental impact
on the Funds' returns. This can be seen by comparing the six-month and one-year
Fund returns shown on page 5.
Financial leverage offers opportunities to generate additional income and total
return for common shareholders under a variety of market conditions. However,
leverage may work to the common shareholders' disadvantage during periods when
bond prices are extraordinarily volatile or in sharp decline. During the six
months covered by this report, overall conditions within the municipal bond
market were relatively favorable, in contrast to the relatively unfavorable
market conditions during the fall of 2008.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
positions in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. At the time this report was prepared, there were no
bond insurers rated AAA by all three of the major rating agencies (Moody's
Investor Service, S&P and Fitch) and at least one rating agency has placed each
insurer on "negative credit watch," "credit watch evolving," "credit outlook
developing," or "rating withdrawn," which may presage one or more rating
reductions in the future. As concern increased about the balance sheets of
insurers, prices on insured bonds - especially those bonds issued by weaker
underlying credits - declined, detracting from the Funds' performance. By the
end of this period, most insured bonds were being valued according to their
fundamentals as if they were uninsured. On the whole, the holdings of all these
Funds continued to be well diversified, and it is important to note that
municipal bonds historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
As noted in past shareholder reports, beginning in February 2008, more shares
were submitted for sale in the regularly scheduled auctions for the auction rate
preferred shares issued by these Funds than there were offers to buy. This meant
that these auctions "failed to clear," and that many, or all, of the Funds'
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This decline in liquidity in auction rate
preferred shares did not lower the credit quality of these shares, and auction
rate preferred shareholders unable to sell their shares received distributions
at the "maximum rate" applicable to failed auctions, as calculated in accordance
with the pre-established terms of the auction rate preferred shares.
These developments generally have not affected the portfolio management or
investment policies of these Funds. However, one continuing implication for
common shareholders of these auction failures is that the Funds' cost of
leverage will likely be higher, at least temporarily, than it otherwise would
have been had the auctions
Nuveen Investments 7
continued to be successful. As a result, the Funds' future common share earnings
may be lower than they otherwise might have been.
As noted in the last shareholder report, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. As of April 30, 2009, the amount of auction rate preferred
securities redeemed by the Funds are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NPP $ 53,625,000 11.2%
NMA $ 59,325,000 16.6%
NMO $ 33,325,000 8.8%
NAD $ 28,200,000 9.6%
NXZ $ 222,000,000 100.0%
NZF $ 75,050,000 24.1%
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As noted in the last shareholder report, all of NXZ's redemptions were achieved
through the issuance of variable rate demand preferred shares (VRDP) in
conjunction with the proceeds from the creation of TOBs. VRDP is a new
instrument designed to replace the auction rate preferred shares used as
leverage in Nuveen closed-end funds. VRDP is offered only to qualified
institutional buyers, defined pursuant to Rule 144A under the Securities Act of
1933. As of April 30, 2009, NXZ has $196 million of VRDP outstanding.
While the Funds' Board of Directors/Trustees and management continue to work to
resolve this situation, the Funds cannot provide any assurance on when the
remaining outstanding auction rate preferred shares might be redeemed.
As of April 30, 2009, sixty-seven Nuveen closed-end municipal funds have
redeemed and/or noticed for redemption at par a portion of their outstanding
auction rate preferred shares. These redemptions bring the total amount of
Nuveen's municipal closed-end funds' auction rate preferred share redemptions to
approximately $2.1 billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
8 Nuveen Investments
COMMON SHARE DIVIDEND AND SHARE PRICE INFORMATION
During the six-month period ended April 30, 2009, NPP, NMA, NMO and NZF each had
one monthly dividend increase, while the dividends of NAD and NXZ remained
stable throughout the period.
As the result of normal portfolio activity, common shareholders of the following
Funds received net ordinary income distributions at the end of December 2008 as
follows:
NET ORDINARY INCOME
(PER SHARE)
--------------------------------------------------------------------------------
NPP $0.0007
NMA $0.0021
NZF $0.0057
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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, 2009, all six
Funds had positive UNII balances, based upon our best estimate, for tax
purposes, and positive UNII balances for financial statement purposes.
Nuveen Investments 9
COMMON SHARE REPURCHASE AND SHARE PRICE INFORMATION
The Funds' Board of Directors/Trustees approved an open-market share repurchase
program on July 30, 2008, under which each Fund may repurchase an aggregate of
up to 10% of its outstanding common shares. Since the inception of this program,
the Funds have not repurchased any of their outstanding common shares.
As of April 30, 2009, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
4/30/09 SIX-MONTH
DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NPP -8.47% -11.61%
NMA -5.63% -7.73%
NMO -7.57% -11.47%
NAD -6.98% -11.17%
NXZ -4.19% -7.36%
NZF -7.55% -12.26%
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10 Nuveen Investments
NPP Performance OVERVIEW | Nuveen Performance Plus Municipal Fund, Inc.
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 47%
AA 29%
A 11%
BBB 10%
BB or Lower 1%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0645
Apr 0.0645
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.4
13.46
13.48
13.53
13.56
13.53
13.49
13.15
12.86
12.95
13.06
13.06
12.71
12.64
12.58
12.74
12.74
12.76
12.87
12.97
12.69
12.28
11.43
11.32
8.35
10.24
11.72
11.5
11.86
11.5
10.08
11.1
10.39
9.4
10.39
10.49
11.55
12.29
12.3
12.17
12.17
12.15
12.06
11.39
11.75
11.12
11.68
11.79
12.03
12.02
11.96
12.11
12.2
4/30/09 12.42
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.42
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.57
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.47%
--------------------------------------------------------------------------------
Market Yield 6.23%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.65%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 812,988
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.97
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.67
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/22/89)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 11.45% 10.01%
--------------------------------------------------------------------------------
1-Year -1.19% -2.68%
--------------------------------------------------------------------------------
5-Year 4.25% 3.22%
--------------------------------------------------------------------------------
10-Year 4.40% 4.73%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 16.3%
--------------------------------------------------------------------------------
California 10.1%
--------------------------------------------------------------------------------
New Jersey 5.2%
--------------------------------------------------------------------------------
New York 5.1%
--------------------------------------------------------------------------------
Florida 5.0%
--------------------------------------------------------------------------------
Texas 4.8%
--------------------------------------------------------------------------------
Colorado 4.5%
--------------------------------------------------------------------------------
Ohio 4.2%
--------------------------------------------------------------------------------
Massachusetts 3.8%
--------------------------------------------------------------------------------
Indiana 3.8%
--------------------------------------------------------------------------------
Washington 3.5%
--------------------------------------------------------------------------------
Michigan 3.2%
--------------------------------------------------------------------------------
South Carolina 2.8%
--------------------------------------------------------------------------------
Georgia 2.2%
--------------------------------------------------------------------------------
Pennsylvania 2.1%
--------------------------------------------------------------------------------
Utah 2.1%
--------------------------------------------------------------------------------
Minnesota 2.0%
--------------------------------------------------------------------------------
Wisconsin 1.9%
--------------------------------------------------------------------------------
Louisiana 1.8%
--------------------------------------------------------------------------------
Nevada 1.7%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 24.0%
--------------------------------------------------------------------------------
Tax Obligation/General 16.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.4%
--------------------------------------------------------------------------------
Transportation 11.0%
--------------------------------------------------------------------------------
Utilities 9.5%
--------------------------------------------------------------------------------
Health Care 9.3%
--------------------------------------------------------------------------------
Other 14.8%
--------------------------------------------------------------------------------
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
2 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders a net ordinary income distribution in December
2008 of $0.007 per share.
Nuveen Investments 11
NMA Performance OVERVIEW | Nuveen Municipal Advantage Fund, Inc.
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.24
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 12.97
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.63%
--------------------------------------------------------------------------------
Market Yield 6.67%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.26%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 560,322
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.01
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.09
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/89)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 11.04% 10.53%
--------------------------------------------------------------------------------
1-Year -3.63% -4.88%
--------------------------------------------------------------------------------
5-Year 3.14% 2.39%
--------------------------------------------------------------------------------
10-Year 3.93% 4.56%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 11.5%
--------------------------------------------------------------------------------
Illinois 10.2%
--------------------------------------------------------------------------------
Washington 9.4%
--------------------------------------------------------------------------------
Texas 9.2%
--------------------------------------------------------------------------------
Louisiana 8.4%
--------------------------------------------------------------------------------
New York 7.0%
--------------------------------------------------------------------------------
Colorado 4.8%
--------------------------------------------------------------------------------
Ohio 4.8%
--------------------------------------------------------------------------------
Tennessee 4.1%
--------------------------------------------------------------------------------
Nevada 2.6%
--------------------------------------------------------------------------------
New Jersey 2.6%
--------------------------------------------------------------------------------
South Carolina 2.2%
--------------------------------------------------------------------------------
Florida 2.2%
--------------------------------------------------------------------------------
Oklahoma 2.1%
--------------------------------------------------------------------------------
Wisconsin 2.1%
--------------------------------------------------------------------------------
Puerto Rico 1.9%
--------------------------------------------------------------------------------
Other 14.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 31.1%
--------------------------------------------------------------------------------
Utilities 13.4%
--------------------------------------------------------------------------------
Health Care 12.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.2%
--------------------------------------------------------------------------------
Tax Obligation/General 10.3%
--------------------------------------------------------------------------------
Transportation 6.9%
--------------------------------------------------------------------------------
Other 13.6%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 40%
AA 32%
A 14%
BBB 12%
BB or Lower 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.064
Jun 0.064
Jul 0.064
Aug 0.064
Sep 0.066
Oct 0.066
Nov 0.066
Dec 0.066
Jan 0.066
Feb 0.066
Mar 0.068
Apr 0.068
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.57
13.56
13.57
13.78
13.75
13.824
13.73
13.48
13.23
13.06
13.18
13.19
13.09
13.06
13.22
13.15
13.11
13.01
13.35
13.44
13.21
12.59
11.8
11.85
8.43
10.36
11.4
11.41
12.09
11.45
10.07
10.45
9.6
8.88
10.31
10.15
10.952
12.2
11.9601
11.84
12.12
12.75
12.33
11.15
12.12
11.19
11.6
11.79
11.92
11.7
11.86
12.01
12.35
4/30/09 12.24
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
2 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders a net ordinary income distribution in December
2008 of $0.0021 per share.
12 Nuveen Investments
NMO Performance OVERVIEW | Nuveen Municipal Market Opportunity Fund, Inc.
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 53%
AA 27%
A 11%
BBB 7%
BB or Lower 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.063
Oct 0.063
Nov 0.063
Dec 0.063
Jan 0.063
Feb 0.063
Mar 0.0645
Apr 0.0645
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
$ 13.18
5/01/08 13.23
13.32
13.37
13.58
13.65
13.35
13.04
12.61
12.65
12.73
12.56
12.35
12.3
12.35
12.4
12.28
12.32
12.4
12.49
12.23
11.98
11.42
10.99
8.09
10.06
11.8
11.52
11.63
11.15
9.86
10.15
9.5
9.03
9.71
9.94
10.87
11.35
11.27
11.32
11.54
11.78
11.75
10.83
11.36
10.59
10.96
11.23
11.27
11.2002
11.25
11.43
11.69
11.72
4/30/09
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.72
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 12.68
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.57%
--------------------------------------------------------------------------------
Market Yield 6.60%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.17%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 577,567
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 11.74
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.18
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 5.26% 6.91%
--------------------------------------------------------------------------------
1-Year -4.98% -5.43%
--------------------------------------------------------------------------------
5-Year 3.58% 2.39%
--------------------------------------------------------------------------------
10-Year 3.10% 3.89%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 13.9%
--------------------------------------------------------------------------------
Washington 11.0%
--------------------------------------------------------------------------------
Illinois 8.8%
--------------------------------------------------------------------------------
New York 6.3%
--------------------------------------------------------------------------------
California 6.0%
--------------------------------------------------------------------------------
Minnesota 5.6%
--------------------------------------------------------------------------------
New Jersey 4.4%
--------------------------------------------------------------------------------
South Carolina 4.1%
--------------------------------------------------------------------------------
Colorado 4.0%
--------------------------------------------------------------------------------
Ohio 3.9%
--------------------------------------------------------------------------------
Georgia 3.3%
--------------------------------------------------------------------------------
North Dakota 3.0%
--------------------------------------------------------------------------------
Massachusetts 2.5%
--------------------------------------------------------------------------------
Puerto Rico 2.3%
--------------------------------------------------------------------------------
Pennsylvania 1.9%
--------------------------------------------------------------------------------
Oregon 1.7%
--------------------------------------------------------------------------------
Louisiana 1.5%
--------------------------------------------------------------------------------
North Carolina 1.4%
--------------------------------------------------------------------------------
Other 14.4%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 38.6%
--------------------------------------------------------------------------------
Tax Obligation/General 15.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.0%
--------------------------------------------------------------------------------
Transportation 9.2%
--------------------------------------------------------------------------------
Health Care 8.6%
--------------------------------------------------------------------------------
Utilities 5.5%
--------------------------------------------------------------------------------
Consumer Staples 5.3%
--------------------------------------------------------------------------------
Other 7.6%
--------------------------------------------------------------------------------
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
2 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 13
NAD Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.73
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 12.61
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.98%
--------------------------------------------------------------------------------
Market Yield 6.70%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.31%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 495,469
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.28
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.22
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 13.39% 10.58%
--------------------------------------------------------------------------------
1-Year -6.30% -6.04%
--------------------------------------------------------------------------------
5-Year 2.76% 2.48%
--------------------------------------------------------------------------------
Since
Inception 3.84% 4.93%
--------------------------------------------------------------------------------
STATES
(as a % of municipal bonds)
--------------------------------------------------------------------------------
Illinois 20.7%
--------------------------------------------------------------------------------
New York 7.8%
--------------------------------------------------------------------------------
Washington 7.4%
--------------------------------------------------------------------------------
Florida 6.4%
--------------------------------------------------------------------------------
Wisconsin 5.7%
--------------------------------------------------------------------------------
Texas 4.7%
--------------------------------------------------------------------------------
Louisiana 4.6%
--------------------------------------------------------------------------------
Indiana 4.4%
--------------------------------------------------------------------------------
New Jersey 4.0%
--------------------------------------------------------------------------------
California 3.9%
--------------------------------------------------------------------------------
Pennsylvania 3.7%
--------------------------------------------------------------------------------
Ohio 3.2%
--------------------------------------------------------------------------------
Colorado 2.6%
--------------------------------------------------------------------------------
Michigan 2.4%
--------------------------------------------------------------------------------
Rhode Island 2.2%
--------------------------------------------------------------------------------
Puerto Rico 2.1%
--------------------------------------------------------------------------------
Other 14.2%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.9%
--------------------------------------------------------------------------------
Health Care 16.8%
--------------------------------------------------------------------------------
Tax Obligation/General 15.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.5%
--------------------------------------------------------------------------------
Transportation 11.3%
--------------------------------------------------------------------------------
Utilities 5.8%
--------------------------------------------------------------------------------
Consumer Staples 5.1%
--------------------------------------------------------------------------------
Other 10.9%
--------------------------------------------------------------------------------
Credit Quality (as a % of municipal bonds)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 35%
AA 41%
A 10%
BBB 8%
BB or Lower 4%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.0635
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.0655
Oct 0.0655
Nov 0.0655
Dec 0.0655
Jan 0.0655
Feb 0.0655
Mar 0.0655
Apr 0.0655
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
$ 13.47
5/01/08 13.54
13.45
13.5
13.43
13.64
13.56
13.11
12.9
12.85
13.1
13.04
12.71
12.82
12.82
12.78
12.8
12.79
12.71
12.8
12.5
12.02
11.68
11.06
7.9
9.783
10.9
10.72
11.23
10.71
9.36
10.3
8.94
8.46
9.75
9.73
10.46
11.39
11.25
11.07
11.3
11.6
11.53
10.81
11.3
10.35
10.74
10.86
11.22
11.01
10.98
11.25
11.49
4/30/09 11.73
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
2 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NXZ Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund 2
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 49%
AA 22%
A 11%
BBB 12%
BB or Lower 4%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
5/01/08 $ 15.03
15.01
15.03
15.22
15.21
15.3
15.27
14.9
14.47
14.5269
14.8
14.73
14.28
14.37
14.47
14.8
14.52
14.6399
14.56
14.39
14.1
13.47
12.13
12.2604
8.94
10.71
12.06
12.35
12.4
11.45
10.4199
11.2
10.19
9.616
10.78
11.75
11.9
12.66
12.63
12.53
12.96
13.07
12.71
11.69
12.57
11.6031
11.69
11.7
11.97
12.24
12.45
12.46
12.39
4/30/09 12.81
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.81
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.37
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.19%
--------------------------------------------------------------------------------
Market Yield 6.84%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.50%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 393,654
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.55
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.25
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 7.48% 8.83%
--------------------------------------------------------------------------------
1-Year -8.65% -5.01%
--------------------------------------------------------------------------------
5-Year 4.37% 3.90%
--------------------------------------------------------------------------------
Since
Inception 4.46% 5.54%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 17.6%
--------------------------------------------------------------------------------
Illinois 9.0%
--------------------------------------------------------------------------------
Michigan 8.2%
--------------------------------------------------------------------------------
California 7.8%
--------------------------------------------------------------------------------
New York 6.6%
--------------------------------------------------------------------------------
Colorado 5.5%
--------------------------------------------------------------------------------
New Mexico 4.2%
--------------------------------------------------------------------------------
Minnesota 3.4%
--------------------------------------------------------------------------------
Alabama 3.4%
--------------------------------------------------------------------------------
Florida 3.0%
--------------------------------------------------------------------------------
Washington 3.0%
--------------------------------------------------------------------------------
Louisiana 2.8%
--------------------------------------------------------------------------------
Kansas 2.8%
--------------------------------------------------------------------------------
Pennsylvania 2.4%
--------------------------------------------------------------------------------
Indiana 2.3%
--------------------------------------------------------------------------------
Oregon 2.2%
--------------------------------------------------------------------------------
Massachusetts 2.2%
--------------------------------------------------------------------------------
Other 13.6%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 33.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.0%
--------------------------------------------------------------------------------
Health Care 14.5%
--------------------------------------------------------------------------------
Transportation 10.8%
--------------------------------------------------------------------------------
Consumer Staples 5.5%
--------------------------------------------------------------------------------
Utilities 5.5%
--------------------------------------------------------------------------------
Other 12.1%
--------------------------------------------------------------------------------
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
2 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 15
NZF Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund 3
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.13
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.12
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.55%
--------------------------------------------------------------------------------
Market Yield 6.73%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.35%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 529,576
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.37
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.58
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 17.39% 12.01%
--------------------------------------------------------------------------------
1-Year -5.34% -4.24%
--------------------------------------------------------------------------------
5-Year 4.42% 3.75%
--------------------------------------------------------------------------------
Since
Inception 3.53% 4.93%
--------------------------------------------------------------------------------
STATES
(as a % of municipal bonds)
--------------------------------------------------------------------------------
Texas 13.5%
--------------------------------------------------------------------------------
Washington 11.1%
--------------------------------------------------------------------------------
Illinois 10.3%
--------------------------------------------------------------------------------
California 8.2%
--------------------------------------------------------------------------------
Michigan 6.5%
--------------------------------------------------------------------------------
Iowa 4.5%
--------------------------------------------------------------------------------
Indiana 4.0%
--------------------------------------------------------------------------------
Colorado 3.6%
--------------------------------------------------------------------------------
Wisconsin 3.2%
--------------------------------------------------------------------------------
New York 2.6%
--------------------------------------------------------------------------------
New Jersey 2.4%
--------------------------------------------------------------------------------
Kentucky 2.4%
--------------------------------------------------------------------------------
Louisiana 2.3%
--------------------------------------------------------------------------------
Missouri 2.1%
--------------------------------------------------------------------------------
Oregon 1.8%
--------------------------------------------------------------------------------
Georgia 1.6%
--------------------------------------------------------------------------------
Oklahoma 1.6%
--------------------------------------------------------------------------------
Florida 1.6%
--------------------------------------------------------------------------------
Massachusetts 1.5%
--------------------------------------------------------------------------------
Ohio 1.4%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 25.1%
--------------------------------------------------------------------------------
Transportation 15.6%
--------------------------------------------------------------------------------
Health Care 14.2%
--------------------------------------------------------------------------------
Tax Obligation/General 10.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 6.4%
--------------------------------------------------------------------------------
Utilities 5.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.1%
--------------------------------------------------------------------------------
Water and Sewer 4.4%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
Credit Quality (as a % of municipal bonds)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 44%
AA 27%
A 16%
BBB 6%
BB or Lower 2%
N/R 5%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.064
Jun 0.064
Jul 0.064
Aug 0.064
Sep 0.0665
Oct 0.0665
Nov 0.0665
Dec 0.0665
Jan 0.0665
Feb 0.0665
Mar 0.068
Apr 0.068
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
$ 13.79
5/01/08 13.77
13.83
13.79
13.85
13.8
13.84
13.45
13.05
13.14
13.15
13.1
12.93
12.98
12.9
12.97
12.9
12.83
12.94
13.03
12.82
12.6
11.64
11.35
7.55
9.821
11.3
10.72
11.39
10.64
9.25
10.2
9.26
8.8568
9.8
9.77
10.59
11.56
11.67
11.37
11.95
12.42
11.95
10.71
11.4
10.74
11.14
11.09
11.3699
11.33
11.5
11.8
11.92
4/30/09 12.13
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
2 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders a net ordinary income distribution in December
2008 of $0.0057 per share.
16 Nuveen Investments
NPP | Nuveen Performance Plus Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2% (0.1% OF TOTAL INVESTMENTS)
Jefferson County, Alabama, Sewer Revenue Refunding Warrants,
Series 1997A:
$ 1,435 5.625%, 2/01/22 - FGIC Insured 6/09 at 100.00 CCC $ 722,594
1,505 5.375%, 2/01/27 - FGIC Insured 6/09 at 100.00 CCC 756,804
------------------------------------------------------------------------------------------------------------------------------------
2,940 Total Alabama 1,479,398
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
2,200 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,152,052
Settlement Asset-Backed Bonds, Series 2006A, 5.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/12 at 100.00 AAA 1,123,070
Series 2002B, 5.250%, 7/01/22(Pre-refunded 7/01/12)
Phoenix, Arizona, Civic Improvement Corporation, Senior Lien
Airport Revenue Bonds, Series 2002B:
5,365 5.750%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AA- 5,479,596
5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AA- 5,148,164
------------------------------------------------------------------------------------------------------------------------------------
11,420 Total Arizona 11,750,830
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS)
5,080 Independence County, Arkansas, Hydroelectric Power Revenue 5/13 at 100.00 B 2,591,562
Bonds, Series 2003, 5.350%,5/01/28 - ACA Insured
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 Baa1 752,220
Washington Regional Medical Center, Series 2005A, 5.000%,
2/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,080 Total Arkansas 3,343,782
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.9% (10.1% OF TOTAL INVESTMENTS)
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A3 2,561,475
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 5,855,520
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 4,597,400
3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,590,893
3,365 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,695,129
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
California Health Facilities Financing Authority, Revenue
Bonds, Kaiser Permanante System, Series 2006:
5,000 5.000%, 4/01/37 4/16 at 100.00 A+ 4,213,750
7,000 5.250%, 4/01/39 4/16 at 100.00 A+ 6,116,740
2,380 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 2,177,486
Bonds, J. David Gladstone Institutes, Series 2001, 5.250%,
10/01/34
3,500 California Pollution Control Financing Authority, Revenue 6/17 at 100.00 A3 3,122,350
Bonds, Pacific Gas and Electric Company, Series 2004C,
4.750%, 12/01/23 - FGIC Insured (Alternative Minimum Tax)
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/16 at 100.00 A 4,696,200
3/01/31
Nuveen Investments 17
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| (continued) Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 6,435 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call A+ $ 7,383,905
6.000%, 4/01/16 - AMBAC Insured
16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A 14,775,680
2007, 5.000%, 6/01/37
5,000 Coast Community College District, Orange County, California, 8/18 at 100.00 AAA 4,031,450
General Obligation Bonds, Series 2006C, 5.000%, 8/01/32 -
FSA Insured
1,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 773,565
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
10,000 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 3,842,200
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 11,704,900
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
1,000 Mt. Diablo Hospital District, California, Insured Hospital 6/09 at 100.00 A (4) 1,059,230
Revenue Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC
Insured (ETM)
13,450 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AA- 16,375,913
County, California, Revenue Refunding Bonds,
Redevelopment Project 1, Series 1995, 7.200%, 8/01/17 -
MBIA Insured
4,020 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 4,182,931
Residential Mortgage Revenue Refunding Bonds, Series
1991A, 7.150%, 2/01/10 (ETM)
2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,162,884
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 5/11 at 100.00 AA- 2,001,320
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 AA- 394,140
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
2,510 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,958,754
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
4.750%, 6/01/23
15,374 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AA- 17,650,428
California, General Obligation Refunding Bonds, Series
1997A, 7.200%, 2/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
140,534 Total California 128,924,243
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.0% (4.5% OF TOTAL INVESTMENTS)
5,240 Adams 12 Five Star Schools, Adams County, Colorado, General 12/15 at 100.00 AAA 5,564,304
Obligation Bonds, Series 2005, 5.000%, 12/15/24 - FSA
Insured
3,000 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 A 2,634,690
Charter School Revenue Bonds, Peak-to-Peak Charter
School, Series 2004, 5.250%, 8/15/34 - SYNCORA GTY Insured
5,860 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA (4) 6,393,787
Bonds, Catholic Health Initiatives, Series 2001, 5.250%,
9/01/21 (Pre-refunded 9/01/11)
4,500 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AA- 4,563,585
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC
Insured (Alternative Minimum Tax)
20,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 22,332,598
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY
Insured
12,615 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AA- 5,068,455
Bonds, Series 1997B, 0.000%,9/01/21 - MBIA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
15,700 0.000%, 9/01/32 - MBIA Insured No Opt. Call AA- 2,301,306
33,120 0.000%, 9/01/33 - MBIA Insured No Opt. Call AA- 4,450,334
18,500 E-470 Public Highway Authority, Colorado, Toll Revenue No Opt. Call AA- 1,981,535
Bonds, Series 2004A, 0.000%, 3/01/36 - 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 (UB)
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,330 University of Colorado Hospital Authority, Revenue Bonds, 11/09 at 101.00 A3 $ 1,050,939
Series 1999A, 5.000%, 11/15/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
120,620 Total Colorado 57,129,557
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
4,870 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 4,593,774
Settlement Asset-Backed Bonds, Series 2001, 6.250%,
5/15/24
5,590 District of Columbia, General Obligation Bonds, Series 6/09 at 101.00 AAA 5,665,130
1999B, 5.500%, 6/01/13 - FSA Insured
5,000 Washington Convention Center Authority, District of 10/16 at 100.00 A 4,138,900
Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series
2007A, 4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,460 Total District of Columbia 14,397,804
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.8% (5.0% OF TOTAL INVESTMENTS)
Broward County Housing Finance Authority, Florida,
Multifamily Housing Revenue Bonds, Venice Homes
Apartments, Series 2001A:
1,545 5.700%, 1/01/32 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,502,744
1,805 5.800%, 1/01/36 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,806,643
5,300 Escambia County Health Facilities Authority, Florida, No Opt. Call Aa1 5,702,641
Revenue Bonds, Ascension Health Credit Group, Series
2003A, 5.250%, 11/15/14
2,090 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 2,101,119
Revenue Bonds, Series 2000-11, 5.850%,1/01/22 - FSA
Insured (Alternative Minimum Tax)
5,375 Florida Housing Finance Corporation, Homeowner Mortgage 1/16 at 100.00 AA+ 5,019,175
Revenue Bonds, Series 2006-2, 4.950%,7/01/37 (Alternative
Minimum Tax)
10,050 Florida State Board of Education, Full Faith and Credit 6/10 at 101.00 AAA 10,442,352
Public Education Capital Outlay Refunding Bonds, Series
2000D, 5.750%, 6/01/22
7,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AA- 7,094,080
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 9,785,900
5.000%, 10/01/41 - FSA Insured (UB)
10,750 Martin County Industrial Development Authority, Florida, 6/09 at 100.00 BB+ 9,163,838
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 2,576,836
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, Miami 10/15 at 100.00 A2 2,893,520
International Airport, Series 2005A, 5.000%, 10/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 BBB+ 1,414,434
Development District, Special Assessment Bonds,
Commercial Project, Series 2002A, 5.625%, 5/01/32 - RAAI
Insured
4,500 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 3,550,860
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/40 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
66,185 Total Florida 63,054,142
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.4% (2.2% OF TOTAL INVESTMENTS)
4,920 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ (4) 5,135,299
Series 2000A, 5.600%, 1/01/30(Pre-refunded 1/01/10) -
FGIC Insured
5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series No Opt. Call AA- 5,293,800
1999A, 5.500%, 11/01/22 - FGIC Insured
2,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AA- 1,898,220
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - MBIA Insured (Alternative
Minimum Tax)
Nuveen Investments 19
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA (continued)
$ 15,000 Private Colleges and Universities Authority, Georgia, 11/09 at 101.00 AA (4) $ 15,534,750
Revenue Bonds, Emory University, Series 1999A, 5.500%,
11/01/25 (Pre-refunded 11/01/09)
------------------------------------------------------------------------------------------------------------------------------------
26,920 Total Georgia 27,862,069
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
355 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa3 361,120
Mortgage Bonds, Series 2000D, 6.200%,7/01/14 (Alternative
Minimum Tax)
275 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aa2 279,719
Mortgage Bonds, Series 2000G-2, 5.950%,7/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
630 Total Idaho 640,839
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 25.5% (16.3% OF TOTAL INVESTMENTS)
10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 6,203,200
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 AA- 5,802,800
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, City Colleges,
Series 1999:
32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AA- 19,138,897
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AA- 18,271,024
9,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 7/09 at 100.00 AA- 9,240,277
1996A, 5.500%, 1/01/29 - MBIA Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AA- 1,615,433
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 5,581,680
15,285 0.000%, 11/01/19 No Opt. Call AAA 10,007,090
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,813,920
Memorial Hospital, Series 2008, 5.250%,8/15/47 - AGC
Insured (UB)
5,245 Illinois Finance Authority, Revenue Bonds, Loyola University 7/17 at 100.00 Aa1 5,172,724
of Chicago, Tender Option Bond Trust 1137, 9.118%,
7/01/46 (IF)
4,590 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,281,919
Revenue Refunding Bonds, Sinai Health System, Series
2003, 5.150%, 2/15/37
1,180 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 1,070,142
Forest Hospital, Series 2002A, 5.750%, 7/01/29
3,500 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 3,208,310
Forest Hospital, Series 2003, 6.000%, 7/01/33
4,580 Illinois Health Facilities Authority, Revenue Bonds, Midwest 8/10 at 102.00 Aaa 4,669,631
Care Center IX Inc., Series 2000, 6.250%, 8/20/35
2,160 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 BBB 2,231,129
Cross Hospital and Medical Centers, Series 1999, 5.250%,
8/15/15 (Mandatory put 8/15/09)
7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, 12/13 at 57.71 AA- 3,167,235
Community College District 516, General Obligation Bonds,
Series 2005E, 0.000%, 12/15/24 - FGIC Insured
3,700 Libertyville, Illinois, Affordable Housing Revenue Bonds, 11/09 at 100.00 Aaa 3,814,589
Liberty Towers Project, Series 1999A, 7.000%, 11/01/29
(Pre-refunded 11/01/09) (Alternative Minimum Tax)
6,000 McHenry County Conservation District, Illinois, General 2/11 at 100.00 Aa1 (4) 6,484,560
Obligation Bonds, Series 2001A, 5.625%, 2/01/21
(Pre-refunded 2/01/11) - FGIC Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 5,018,050
Revenue Bonds, McCormick Place Expansion Project, Series
2002A, 5.250%, 6/15/42 - MBIA Insured
10,650 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 13,909,646
Revenue Bonds, McCormick Place Hospitality Facility,
Series 1996A, 7.000%, 7/01/26 (ETM)
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
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 AA- $ 6,167,904
16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AA- 9,475,389
23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AA- 11,764,874
13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AA- 5,568,810
5,100 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 5,565,069
Revenue Refunding Bonds, McCormick Place Expansion
Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured
5,180 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 6,041,330
Revenue Refunding Bonds, McCormick Place Expansion
Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured
(ETM)
17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 21,155,196
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 6,235,064
Villa Vianney, Series 1999A, 6.450%, 10/01/29
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aa3 4,859,200
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
281,640 Total Illinois 207,535,092
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.9% (3.8% OF TOTAL INVESTMENTS)
2,465 Danville Multi-School Building Corporation, Indiana, First 7/11 at 100.00 A 2,562,170
Mortgage Refunding Bonds, Series 2001, 5.250%, 7/15/18 -
AMBAC Insured
3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 1,908,330
Revenue Bonds, Cardinal Health System, Series 2006,
5.250%, 8/01/36
14,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 AA (4) 15,064,980
Revenue Bonds, Clarian Health Obligated Group, Series
2000A, 5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA
Insured
750 Indiana Health Facility Financing Authority, Hospital 2/16 at 100.00 A+ 666,668
Revenue Bonds, Clarian Health Obligation Group, Series
2006B, 5.000%, 2/15/23
2,500 Indiana Health Facility Financing Authority, Hospital No Opt. Call AAA 2,855,700
Revenue Refunding Bonds, Columbus Regional Hospital,
Series 1993, 7.000%, 8/15/15 - FSA Insured
4,320 Indiana Health Facility Financing Authority, Revenue Bonds, 7/09 at 100.00 AA- (4) 4,347,864
Ancilla Systems Inc. Obligated Group, Series 1997,
5.250%, 7/01/22 - MBIA Insured (ETM)
3,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 2,342,910
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 A 1,438,680
Community Hospitals of Indiana, Series 2005A, 5.000%,
5/01/35 - AMBAC Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2000:
1,285 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 1,379,113
6,715 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 7,206,807
3,105 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 3,295,492
5.250%, 8/01/20 - FGIC Insured
1,000 Marion County Convention and Recreational Facilities 6/11 at 100.00 AA- 1,004,850
Authority, 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 AA+ 2,349,423
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 AA+ 1,860,768
First Mortgage Bonds, Series 2005, 5.000%, 7/15/25 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
48,335 Total Indiana 48,283,755
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 21
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 1,500 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ $ 1,185,285
Initiatives Project, Series 2006A, 5.500%, 7/01/21
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
5,000 5.375%, 6/01/38 6/15 at 100.00 BBB 2,805,050
3,750 5.500%, 6/01/42 6/15 at 100.00 BBB 2,105,138
5,400 5.625%, 6/01/46 6/15 at 100.00 BBB 3,050,190
4,500 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 3,099,105
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 5,446,300
Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
25,150 Total Iowa 17,691,068
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.6% (1.0% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 4,003,604
Series 2004, 5.000%, 3/01/23 (UB)
5,790 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 5,840,605
Kansas, General Obligation Bonds, Series 2000, 3.500%,
9/01/17
3,200 Wyandotte County Unified School District 500, Kansas, 9/11 at 100.00 AAA 3,232,608
General Obligation Bonds, Series 2001, 4.000%, 9/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Kansas 13,076,817
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.8% (1.8% OF TOTAL INVESTMENTS)
650 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/09 at 101.00 Aaa 651,853
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 AA- 4,117,320
Bonds, Series 2004, 5.250%, 11/01/25 - MBIA Insured
4,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AA- 4,599,408
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA 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 8,303,200
6,680 5.875%, 5/15/39 5/11 at 101.00 BBB 4,699,714
------------------------------------------------------------------------------------------------------------------------------------
25,980 Total Louisiana 22,371,495
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,680 Portland, Maine, Airport Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,679,602
5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7% (1.1% OF TOTAL INVESTMENTS)
7,720 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 A 7,425,714
Bonds, Baltimore-Washington International Airport
Passenger Facility, Series 2002B, 5.125%, 3/01/20 - AMBAC
Insured(Alternative Minimum Tax)
5,660 Takoma Park, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 6,182,475
and Improvement Bonds, Washington Adventist Hospital,
Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
13,380 Total Maryland 13,608,189
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.0% (3.8% 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 AA- 3,603,200
5,625 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AA- 4,813,819
970 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AA 988,789
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 -
MBIA Insured (Alternative Minimum Tax)
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 8,730 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA $ 8,793,031
Revenue Bonds, Berkshire Health System, Series 2005,
5.000%, 10/01/19 - AGC Insured (UB)
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 385,535
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/38
1,530 Massachusetts Health and Educational Facilities Authority, 7/09 at 100.50 A2 1,241,167
Revenue Bonds, Southcoast Health System Obligated Group,
Series 1998A, 4.750%, 7/01/27 - MBIA Insured
5,745 Massachusetts Industrial Finance Agency, Resource Recovery 6/09 at 102.00 BBB 4,608,524
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
10,675 Massachusetts Turnpike Authority, Metropolitan Highway 7/09 at 100.00 AA- 8,855,126
System Revenue Bonds, Senior Series 1997A, 5.000%,
1/01/37 - MBIA Insured
890 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/12 at 100.00 AA (4) 994,584
Series 2002C, 5.250%, 11/01/30(Pre-refunded 11/01/12)
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
1,255 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AA (4) 1,399,287
3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AA (4) 4,175,563
8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 AA (4) 8,947,100
Massachusetts, Lease Revenue Bonds, Series 2000, 5.375%,
6/15/33 (Pre-refunded 6/15/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
52,165 Total Massachusetts 48,805,725
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.0% (3.2% OF TOTAL INVESTMENTS)
6,155 Birmingham City School District, Oakland County, Michigan, 11/09 at 100.00 AAA 6,165,587
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 AA- 4,233,300
Revenue Bonds, Series 2005A, 5.000%,7/01/35 - MBIA Insured
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,506,150
Program, Series 2001I, 5.000%, 10/15/24
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AA- 4,783,850
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 (4) 8,153,292
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.500%, 3/01/16 (Pre-refunded 3/01/13)
3,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AA- 2,677,530
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,142,839
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,284,780
Revenue Bonds, William Beaumont Hospital, Refunding
Series 2009V, 8.250%, 9/01/39
10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 6/09 at 101.00 AA- 9,576,000
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/16 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
41,970 Total Michigan 40,523,328
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.1% (2.0% OF TOTAL INVESTMENTS)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 3,211,830
Minnesota, Subordinate Airport Revenue Bonds, Series
2001C, 5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC
Insured
18,820 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 22,232,441
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,820 Total Minnesota 25,444,271
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 9,750 Mississippi Business Finance Corporation, Pollution Control 10/09 at 100.00 BBB $ 8,962,493
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,464,333
Revenue Bonds, Baptist Memorial Healthcare, Series 2004,
5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
12,225 Total Mississippi 11,426,826
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8% (1.1% OF TOTAL INVESTMENTS)
6,350 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AA- 6,641,719
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 1,906,383
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 AA- (4) 4,143,090
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 1,986,280
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 14,677,472
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6% (0.3% OF TOTAL INVESTMENTS)
595 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 615,385
Series 2000A-2, 6.450%, 6/01/29(Alternative Minimum Tax)
4,795 Montana Higher Education Student Assistance Corporation, 6/09 at 101.00 A2 3,856,762
Student Loan Revenue Bonds, Subordinate Series 1998B,
5.500%, 12/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,390 Total Montana 4,472,147
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,110 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 1,145,198
Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.7% (1.7% OF TOTAL INVESTMENTS)
10,900 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 12,306,318
Bonds, Series 2002C, 5.500%, 6/15/19(Pre-refunded
6/15/12) - MBIA Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
3,500 0.000%, 1/01/21 - AMBAC Insured No Opt. Call A 530,845
2,780 0.000%, 1/01/28 - AMBAC Insured No Opt. Call A 140,974
6,980 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 A 2,099,863
5,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 A 4,387,700
Healthcare West, Series 2007A, 5.250%, 7/01/31
2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,370,500
Healthcare West, Trust 2634, 16.017%,7/01/31 - BHAC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
31,660 Total Nevada 21,836,200
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.3% (0.8% OF TOTAL INVESTMENTS)
New Hampshire Housing Finance Authority, FHLMC Multifamily
Housing Remarketed Revenue Bonds, Countryside LP, Series
1994:
3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,818,758
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,070,357
------------------------------------------------------------------------------------------------------------------------------------
10,670 Total New Hampshire 10,889,115
------------------------------------------------------------------------------------------------------------------------------------
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.1% (5.2% OF TOTAL INVESTMENTS)
$ 2,110 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 Aaa $ 2,173,617
Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA
Insured (Alternative Minimum Tax)
4,500 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 5,047,650
Transportation System Bonds, Series 2001C, 5.500%,
12/15/18 - FSA Insured
9,250 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 10,711,963
Transportation System Bonds, Series 2003C, 5.500%,
6/15/23 (Pre-refunded 6/15/13)
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
35,000 0.000%, 12/15/29 - FSA Insured No Opt. Call AAA 10,186,050
10,000 0.000%, 12/15/30 - FGIC Insured No Opt. Call AA- 2,704,100
10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,614,200
5.000%, 1/01/20 - FSA Insured (UB)
11,070 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 11,964,345
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32 (Pre-refunded 6/01/12)
4,450 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 AAA 5,351,348
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
West Deptford Township, Gloucester County, New Jersey,
General Obligation Bonds, Series 2000:
3,150 5.500%, 9/01/21 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Baa1 (4) 3,355,538
3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Baa1 (4) 3,552,609
------------------------------------------------------------------------------------------------------------------------------------
92,865 Total New Jersey 65,661,420
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.0% (5.1% OF TOTAL INVESTMENTS)
5,500 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 5,621,330
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
2,070 Dormitory Authority of the State of New York, Insured 7/09 at 100.50 A 2,095,316
Revenue Bonds, 853 Schools Program, Gateway-Longview
Inc., Series 1998A, 5.500%, 7/01/18 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 BBB+ 1,599,007
9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 BBB+ 9,167,677
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 8/09 at 100.00 A 1,499,865
St. Barnabas Hospital, Series 1997, 5.450%, 8/01/35 -
AMBAC Insured
1,500 Hempstead Industrial Development Agency, New York, Resource No Opt. Call Baa2 1,465,335
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 13,543,758
Tax Fund Bonds, Series 2002A, 5.500%, 11/15/26 - FSA
Insured
13,600 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA 12,541,648
Transportation Revenue Bonds, Series 2009, 4.500%,
11/15/32 - FSA Insured (UB)
7,810 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AAA 8,006,422
Future Tax Secured Bonds, Fiscal Series 2000A, 5.750%,
8/15/24 (Pre-refunded 8/15/09)
6,300 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 AAA 6,684,048
Series 2000A, 6.250%, 5/15/26 - FSA Insured
3,000 New York State Energy Research and Development Authority, 9/09 at 101.00 Baa1 2,523,900
Pollution Control Revenue Bonds, Rochester Gas and
Electric Corporation, Series 1998A, 5.950%, 9/01/33 -
MBIA Insured(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
65,315 Total New York 64,748,306
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 4,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA- (4) $ 5,644,016
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded
1/15/15)
2,000 North Carolina Municipal Power Agency 1, Catawba Electric 7/09 at 101.00 AA- 2,006,920
Revenue Bonds, Series 1998A, 5.000%,1/01/20 - MBIA Insured
5,500 The Charlotte-Mecklenberg Hospital Authority, North 1/18 at 100.00 AA- 5,399,405
Carolina, Doing Business as Carolinas HealthCare System,
Health Care Refunding Revenue Bonds, Series 2008A,
5.000%, 1/15/39
------------------------------------------------------------------------------------------------------------------------------------
12,400 Total North Carolina 13,050,341
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 6.6% (4.2% OF TOTAL INVESTMENTS)
10,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 9,593,600
Series 2008, 5.250%, 2/15/43 Buckeye Tobacco Settlement
Financing Authority, Ohio, Tobacco Settlement
Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
340 5.125%, 6/01/24 6/17 at 100.00 BBB 267,947
3,570 5.875%, 6/01/30 6/17 at 100.00 BBB 2,421,460
4,675 5.750%, 6/01/34 6/17 at 100.00 BBB 2,959,789
2,400 6.000%, 6/01/42 6/17 at 100.00 BBB 1,397,784
14,830 5.875%, 6/01/47 6/17 at 100.00 BBB 8,331,049
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/22 at 100.00 BBB 2,097,544
Tobacco Settlement Asset-Backed Revenue Bonds, Senior
Lien, Series 2007A-3, 0.000%, 6/01/37
6,720 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 6,724,838
5.000%, 1/01/31 - FSA Insured
780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 811,278
5.000%, 1/01/31 (Pre-refunded 1/01/10) - FSA Insured
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,402,822
Initiatives, Series 2004A, 5.000%, 5/01/30
5,800 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 4,620,628
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
12,400 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 10,539,132
Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%,
9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
70,315 Total Ohio 53,167,871
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.1% (0.7% OF TOTAL INVESTMENTS)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call BBB+ 9,050,540
Portland General Electric Company, Series 1985B, 4.800%,
6/01/10
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.2% (2.1% 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 1,679,781
3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,568,250
3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,466,772
3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,287,303
4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,647,347
2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 994,252
3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 1,036,710
1,035 Carbon County Industrial Development Authority, No Opt. Call BBB- 1,038,809
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Panther Creek Partners Project, Series 2000, 6.650%,
5/01/10 (Alternative Minimum Tax)
11,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 5/09 at 102.00 A1 10,501,700
Catholic Health East, Series 1998A, 4.875%, 11/15/18 -
AMBAC Insured
1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/18 at 100.00 AAA 1,210,013
Series 2008, 5.000%, 12/01/43 - FSA Insured
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 4,500 Pennsylvania Economic Development Financing Authority, 7/09 at 100.00 B- $ 3,647,790
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.500%, 1/01/13
(Alternative Minimum Tax)
300 Pennsylvania Economic Development Financing Authority, 7/09 at 100.00 N/R 173,205
Subordinate Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994C, 6.875%, 1/01/11
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
40,570 Total Pennsylvania 26,251,932
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,336,900
Revenue Bonds, Series 2000B, 5.875%,7/01/21 (Pre-refunded
7/01/10) - MBIA Insured
25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A1 1,782,000
Revenue Bonds, Series 2007A, 0.000%,8/01/47 - AMBAC
Insured
3,750 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 AA- 1,394,250
Revenue Bonds, Trust 2653, 13.702%, 8/01/57 (IF)
------------------------------------------------------------------------------------------------------------------------------------
30,000 Total Puerto Rico 4,513,150
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 AA- 1,983,800
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 BBB+ 1,210,444
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 BBB+ 1,021,961
1,600 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 1,178,848
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
5,940 Total Rhode Island 5,395,053
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.3% (2.8% OF TOTAL INVESTMENTS)
2,625 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AA- 2,638,991
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 A 5,872,821
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 7,054,636
4.000%, 10/01/14
18,825 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 19,763,425
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
51,230 Total South Carolina 35,329,873
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,860 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 AA- (4) 2,891,002
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 A 1,705,389
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 A 6,833,580
and Educational Facilities Board, Tennessee, Revenue
Refunding and Improvement Bonds, Meharry Medical College,
Series 1996, 6.000%, 12/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,560 Total Tennessee 11,429,971
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 27
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.5% (4.8% OF TOTAL INVESTMENTS)
$ 3,975 Bell County Health Facilities Development Corporation, 2/10 at 101.00 AAA $ 4,187,225
Texas, Revenue Bonds, Scott and White Memorial Hospital
and Scott, Sherwood and Brindley Foundation, Series
2000A, 6.125%, 8/15/23(Pre-refunded 2/15/10) - MBIA
Insured
5,000 Bexar Metropolitan Water District, Texas, Waterworks System 5/16 at 100.00 AA- 4,702,350
Revenue Bonds, Series 2006, 5.000%, 5/01/35 - 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 AA- 3,071,600
13,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 AA- 9,550,970
4,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA 4,064,560
Obligation Bonds, Series 2003, 5.000%,2/15/27 - AMBAC
Insured (UB)
3,885 Houston Independent School District, Public Facility No Opt. Call AA 2,526,416
Corporation, Harris County, Texas, Lease Revenue Bonds,
Cesar E. Chavez High School, Series 1998A, 0.000%,
9/15/19 - AMBAC Insured
33,855 Leander Independent School District, Williamson and Travis 8/14 at 23.67 AAA 5,604,357
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/40
Leander Independent School District, Williamson and Travis
Counties, Texas, Unlimited Tax School Building and
Refunding Bonds, Series 1998:
4,930 0.000%, 8/15/20 8/09 at 54.76 AAA 2,665,454
3,705 0.000%, 8/15/22 8/09 at 48.30 AAA 1,779,400
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 Aaa 3,842,964
5.000%, 3/01/27 (Pre-refunded 3/01/12) - FGIC Insured
6,835 San Antonio, Texas, Electric and Gas System Revenue 8/09 at 100.00 Aa1 6,837,802
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 6,434,760
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
4,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 4,162,400
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 Aa1 1,744,367
State Participation Program, Series 1999C, 5.500%,
8/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
98,405 Total Texas 61,174,625
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.2% (2.1% OF TOTAL INVESTMENTS)
Utah County, Utah, Hospital Revenue Bonds, IHC Health
Services Inc., Series 1997:
12,885 5.250%, 8/15/21 - MBIA Insured (ETM) 8/09 at 100.00 AA- (4) 12,928,036
3,900 5.250%, 8/15/26 - MBIA Insured (ETM) 8/09 at 100.00 AA- (4) 3,913,026
2,120 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 2,089,769
Series 2002A-1, 5.300%, 7/01/18(Alternative Minimum Tax)
5 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AA 5,159
Series 2000B, 6.250%, 7/01/22(Alternative Minimum Tax)
755 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 767,382
Series 2000D-1, 6.050%, 7/01/14(Alternative Minimum Tax)
550 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 559,103
Series 2000E-1, Class II, 6.150%,1/01/27 (Alternative
Minimum Tax)
1,010 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 1,026,200
Series 2000E-1, Class III, 6.000%,1/01/15 (Alternative
Minimum Tax)
785 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA 787,339
Series 2001A-2, 5.650%, 7/01/27(Alternative Minimum Tax)
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH (continued)
$ 610 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 100.00 Aaa $ 627,147
Series 2001B-1, 5.750%, 7/01/19(Alternative Minimum Tax)
3,000 Utah Water Finance Agency, Revenue Bonds, Pooled Loan 10/12 at 100.00 N/R (4) 3,379,470
Financing Program, Series 2002C, 5.250%,10/01/28
(Pre-refunded 10/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,620 Total Utah 26,082,631
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.7% (0.4% OF TOTAL INVESTMENTS)
4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 BBB+ 3,793,699
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 1,883,000
Refinery Project - Hovensa LLC, Series 2003, 6.125%,
7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Virgin Islands 5,676,699
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.4% (3.5% OF TOTAL INVESTMENTS)
12,235 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AA 4,841,634
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/26 - MBIA Insured
Cowlitz County Public Utilities District 1, Washington,
Electric Production Revenue Bonds, Series 2004:
465 5.000%, 9/01/22 - FGIC Insured 9/14 at 100.00 AA- 476,625
3,100 5.000%, 9/01/28 - FGIC Insured 9/14 at 100.00 AA- 3,077,029
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,461,650
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB)
10,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AA 8,601,500
Bonds, Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured (UB)
4,685 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AA (4) 4,865,607
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19
(Pre-refunded 12/01/09) - MBIA Insured
5,000 Washington State Housing Finance Commission, Non-Profit 7/09 at 101.00 BBB+ 4,513,250
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 AA+ 12,196,560
Series 2001D, 5.250%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
52,485 Total Washington 44,033,855
------------------------------------------------------------------------------------------------------------------------------------
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 4,847,600
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.9% (1.9% OF TOTAL INVESTMENTS)
11,620 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 BBB+ 10,230,248
Revenue Bonds, Marshfield Clinic, Series 1999, 6.250%,
2/15/29 - RAAI Insured
7,315 Wisconsin Health and Educational Facilities Authority, 7/09 at 103.00 N/R 5,462,769
Revenue Bonds, Millennium Housing Foundation Inc., Series
1998, 6.100%, 1/01/28
Nuveen Investments 29
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 9,400 Wisconsin Housing and Economic Development Authority, Home 9/14 at 100.00 AA $ 8,246,432
Ownership Revenue Bonds, Series 2005C, 4.875%, 3/01/36
(Alternative Minimum Tax) (UB)
------------------------------------------------------------------------------------------------------------------------------------
28,335 Total Wisconsin 23,939,449
------------------------------------------------------------------------------------------------------------------------------------
$ 1,602,344 Total Investments (cost $1,294,912,858) - 156.4% 1,271,554,332
==============----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.5)% (52,540,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 19,348,380
-------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (52.3)% (5) (425,375,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 812,987,712
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: 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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.5%
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
30 Nuveen Investments
NMA | Nuveen Municipal Advantage Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.5% (0.9% OF TOTAL INVESTMENTS)
$ 5,075 Lauderdale County and Florence Healthcare Authority, Alabama, 7/09 at 101.00 AA- $ 4,441,742
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 3,950,122
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,230 Total Alabama 8,391,864
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.6% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General Housing Purpose
Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured (UB) 12/14 at 100.00 AA 1,131,435
1,280 5.250%, 12/01/41 - FGIC Insured (UB) 12/14 at 100.00 AA 1,281,715
Northern Tobacco Securitization Corporation, Alaska, Tobacco
Settlement Asset-Backed Bonds, Series 2006A:
1,035 4.625%, 6/01/23 6/14 at 100.00 Baa3 892,915
3,250 5.000%, 6/01/46 6/14 at 100.00 Baa3 1,701,895
------------------------------------------------------------------------------------------------------------------------------------
6,690 Total Alaska 5,007,960
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.0% (1.3% OF TOTAL INVESTMENTS)
4,905 Maricopa County Industrial Development Authority, Arizona, 7/17 at 100.00 A 4,335,628
Health Facility Revenue Bonds, Catholic Healthcare West,
Series 2007A, 5.250%, 7/01/32
5,000 Maricopa County Pollution Control Corporation, Arizona, 6/09 at 100.00 Baa3 4,415,150
Remarketed Revenue Refunding Bonds, Public Service Company
of New Mexico, Series 1992A, 5.750%, 11/01/22
2,500 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,465,825
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
12,405 Total Arizona 11,216,603
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 18.4% (11.5% OF TOTAL INVESTMENTS)
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A 2,561,475
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 AA- 847,333
6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call AA- 1,156,364
3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,402,790
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- 6,804,450
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.125%, 6/01/29
2,750 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 2,858,928
Bonds, Methodist Hospital Project, Series 2009, 6.750%,
2/01/38
11,200 California, General Obligation Bonds, Series 2003, 5.250%, 8/13 at 100.00 A 11,159,344
2/01/28
16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A 14,775,678
2007, 5.000%, 6/01/37
9,955 Capistrano Unified School District, Orange County, California, No Opt. Call AA- 2,399,752
Special Tax Bonds, Community Facilities District, Series
2005, 0.000%, 9/01/31 - FGIC Insured
Nuveen Investments 31
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
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 AA- $ 830,110
3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call AA- 656,118
7,535 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,836,716
Securities Program Home Mortgage Revenue Bonds, Series
1989, 7.750%, 5/01/22 (Alternative Minimum Tax) (ETM)
8,145 Cupertino Union School District, Santa Clara County, 8/13 at 55.54 AA 3,165,636
California, General Obligation Bonds, Series 2003B,
0.000%, 8/01/25 - FGIC Insured
2,510 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AA- 784,400
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 AA 1,145,726
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 No Opt. Call AA- 554,165
Obligation Bonds, Series 2004B, 0.000%,8/01/32 - FGIC
Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 515,710
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
3,000 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 998,730
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 0.000%, 6/01/26 - FSA Insured
1,275 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,329,404
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 AA 3,379,576
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AA 1,638,680
5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 5,606,350
Residential Mortgage Revenue Refunding Bonds, Series
1991B, 7.375%, 2/01/12 (ETM)
5,000 Palmdale Community Redevelopment Agency, California, Single No Opt. Call AAA 6,427,000
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 11,886,965
Single Family Mortgage Revenue Bonds, Series 1989A,
7.600%, 1/01/23 (Alternative Minimum Tax) (ETM)
7,660 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 4,074,431
County, California, Senior Lien Toll Road Revenue Bonds,
Series 1993, 0.000%, 1/01/24 (ETM)
23,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AA- 3,021,740
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 47.82 Aa2 2,114,028
County, California, General Obligation Bonds, Series
2005A, 0.000%, 9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
170,080 Total California 102,931,599
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.7% (4.8% OF TOTAL INVESTMENTS)
1,600 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 1,260,000
Bonds, Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured
9,440 Colorado Health Facilities Authority, Colorado, Revenue 9/16 at 100.00 AA 7,951,973
Bonds, Catholic Health Initiatives, Series 2006A, 4.500%,
9/01/38
8,350 Colorado Health Facilities Authority, Remarketed Revenue 7/09 at 100.50 AAA 8,459,803
Bonds, Kaiser Permanente System, Series 1994A, 5.350%,
11/01/16 (ETM)
1,150 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,082,300
Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA
Insured
3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 AA- 3,376,923
Series 2006, 5.000%, 11/15/24 - FGIC Insured
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- $ 1,283,660
Revenue Bonds, Convention Center Hotel, Series 2006,
4.750%, 12/01/35 - SYNCORA GTY Insured
Denver, Colorado, Airport Revenue Bonds, Trust 2365:
1,340 12.496%, 11/15/23 - FGIC Insured (IF) 11/16 at 100.00 A+ 1,437,632
1,085 12.488%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 A+ 1,150,295
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
2,650 0.000%, 9/01/16 - MBIA Insured No Opt. Call AA- 1,647,611
8,645 0.000%, 9/01/26 - MBIA Insured No Opt. Call AA- 2,139,292
1,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 1,084,030
Bonds, Series 2000A, 5.750%, 9/01/35(Pre-refunded
9/01/10) - 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 AA- 1,415,400
10,000 0.000%, 9/01/31 - MBIA Insured No Opt. Call AA- 1,591,500
10,000 0.000%, 9/01/32 - MBIA Insured No Opt. Call AA- 1,465,800
Platte River Power Authority, Colorado, Power Revenue
Refunding Bonds, Series 2002EE:
1,030 5.375%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2 (4) 1,157,390
4,890 5.375%, 6/01/18 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2 (4) 5,494,795
Platte River Power Authority, Colorado, Power Revenue
Refunding Bonds, Series 2002EE:
970 5.375%, 6/01/17 6/12 at 100.00 AA 1,057,203
110 5.375%, 6/01/18 6/12 at 100.00 AA 117,041
------------------------------------------------------------------------------------------------------------------------------------
75,060 Total Colorado 43,172,648
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,305 District of Columbia Housing Finance Agency, GNMA/FNMA Single 6/09 at 100.00 AAA 1,309,320
Family Mortgage Revenue Bonds, Series 1997B, 5.900%,
12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.5% (2.2% OF TOTAL INVESTMENTS)
2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,778,975
Stratford Point Apartments, Series 2000O-1, 5.850%,
12/01/31 - FSA Insured (Alternative Minimum Tax)
8,100 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 6,271,668
Bonds, Baptist Health Systems of South Florida, Trust
1025, 8.242%, 8/15/42 (IF)
10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 6/09 at 100.00 AA (4) 10,282,254
Health System - St. Mary's Hospital, Series 1993, 5.125%,
12/01/23 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
21,000 Total Florida 19,332,897
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 10/14 at 100.00 AAA 4,061,960
2004, 5.250%, 10/01/39 - FSA Insured
2,900 Coffee County Hospital Authority, Georgia, Revenue Bonds, 12/14 at 100.00 BBB 2,090,349
Coffee County Regional Medical Center, Series 2004,
5.000%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
6,900 Total Georgia 6,152,309
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,215 Hawaii Housing and Community Development Corporation, GNMA 7/10 at 102.00 AA 2,236,818
Collateralized Multifamily Housing Revenue Bonds, Sunset
Villas, Series 2000, 5.700%, 7/20/31
525 Hawaii Housing Finance and Development Corporation, Single 7/09 at 100.00 AAA 539,438
Family Mortgage Purchase Revenue Bonds, Series 1997A,
5.750%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,740 Total Hawaii 2,776,256
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.2% (10.2% OF TOTAL INVESTMENTS)
$ 4,345 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- $ 1,446,537
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/28 - FGIC Insured
4,260 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 1,156,760
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 6,328,335
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded 7/01/10) - FGIC Insured
5,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A1 4,467,450
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,813,920
Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC
Insured (UB)
8,395 Illinois Finance Authority, Revenue Bonds, Loyola University 7/17 at 100.00 Aa1 8,279,317
of Chicago, Tender Option Bond Trust 1137, 9.118%, 7/01/46
(IF)
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 6,682,320
Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded
5/15/12)
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah 8/09 at 100.00 A 6,049,653
Bush Lincoln Health Center, Series 1996B, 5.750%, 2/15/22
10,740 Lake and McHenry Counties Community Unit School District 118, 1/15 at 66.94 Aa3 5,317,052
Wauconda, Illinois, General Obligation Bonds, Series
2005B, 0.000%, 1/01/23 - FSA Insured
1,090 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A2 598,432
Bonds, McCormick Place Expansion Project, Series 1993A,
0.000%, 6/15/21 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 1999A:
13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 13,792,449
10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,531,067
3,175 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 426,180
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 AA- 2,642,820
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 Aa2 5,718,904
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 AA 1,985,842
Bonds, Series 2003A, 5.000%,4/01/23 - AMBAC Insured
7,500 Valley View Public Schools, Community Unit School District No Opt. Call AA 3,004,875
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 Aa3 10,382,663
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
124,085 Total Illinois 90,624,576
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AA (4) 5,600,944
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
2,435 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,901,662
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
1,475 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/09 at 101.50 BBB- 1,452,728
Madison Center Inc., Series 1999, 5.450%, 2/15/12
------------------------------------------------------------------------------------------------------------------------------------
9,115 Total Indiana 8,955,334
------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 6,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB $ 3,366,060
Revenue Bonds, Series 2005C, 5.375%, 6/01/38
250 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 172,173
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total Iowa 3,538,233
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas 6/14 at 100.00 AA- 1,577,345
and Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,500 Kentucky Economic Development Finance Authority, Hospital 8/19 at 100.00 Aa3 1,548,360
Revenue Bonds, Baptist Healthcare System, Series 2009A,
5.375%, 8/15/24
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,036,770
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured
5,500 Louisville and Jefferson County Metropolitan Sewer District, 5/09 at 100.00 AA- 5,501,155
Kentucky, Sewer and Drainage System Revenue Bonds, Series
1997A, 5.250%, 5/15/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Kentucky 8,086,285
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 13.4% (8.4% OF TOTAL INVESTMENTS)
13,500 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 A 12,454,020
Bonds, Cleco Utility Group Inc. Project, Series 1999,
5.875%, 9/01/29 - AMBAC Insured
Louisiana Public Facilities Authority, Extended Care Facilities
Revenue Bonds, Comm-Care Corporation Project, Series 1994:
625 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 773,081
5,650 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 6,987,581
6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AA- 6,577,648
Rouge General Hospital, Series
2004, 5.250%, 7/01/33 - MBIA Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 6,724,440
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
28 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 16,403
Residuals 660-1, 13.832%, 5/01/41 - FGIC Insured (IF)
Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A:
20,690 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 18,512,171
10,000 5.000%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 9,843,400
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
6,050 5.500%, 5/15/30 5/11 at 101.00 BBB 5,023,436
11,855 5.875%, 5/15/39 5/11 at 101.00 BBB 8,340,585
------------------------------------------------------------------------------------------------------------------------------------
84,048 Total Louisiana 75,252,765
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.0% (1.2% OF TOTAL INVESTMENTS)
620 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 488,362
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/33
1,750 Massachusetts Health and Educational Facilities Authority, 7/09 at 101.00 A 1,392,930
Revenue Bonds, UMass Memorial Healthcare, Series 1998A,
5.000%, 7/01/28 - AMBAC Insured
130 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 133,340
Revenue Bonds, Series 77, 5.950%,6/01/25 - FSA Insured
(Alternative Minimum Tax)
Nuveen Investments 35
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
$ 2,000 5.125%, 1/01/17 - MBIA Insured 6/09 at 100.00 AA- $ 1,999,920
500 5.000%, 1/01/27 - MBIA Insured 6/09 at 100.00 AA- 455,075
5,000 5.000%, 1/01/37 - MBIA Insured 7/09 at 100.00 AA- 4,147,600
2,690 Massachusetts Turnpike Authority, Metropolitan Highway System 7/09 at 100.00 AA- 2,479,023
Revenue Bonds, Subordinate Series 1997B, 5.250%, 1/01/29 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,690 Total Massachusetts 11,096,250
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.8% (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 8/09 at 100.00 BB 3,257,489
3,000 5.250%, 8/15/28 8/09 at 100.00 BB 1,764,000
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/09 at 100.00 BB 2,794,689
Bonds, Detroit Medical Center Obligated Group, Series
1993A, 6.500%, 8/15/18
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,142,839
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
14,320 Total Michigan 9,959,017
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.1% (0.7% OF TOTAL INVESTMENTS)
5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 5,353,050
Minnesota, Subordinate Airport Revenue Bonds, Series
2001C, 5.250%, 1/01/32 (Pre-refunded 1/01/11) - FGIC
Insured
915 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 919,904
Revenue Bonds, Series 2000J, 5.400%,1/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,915 Total Minnesota 6,272,954
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.6% OF TOTAL INVESTMENTS)
12,005 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 4,106,310
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 -
AMBAC Insured
130 Missouri Housing Development Commission, Single Family 9/09 at 102.00 AAA 139,719
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 1,489,710
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,635 Total Missouri 5,735,739
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.2% (2.6% OF TOTAL INVESTMENTS)
7,310 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA+ (4) 7,729,813
Bonds, Series 2000, 5.500%, 7/01/19(Pre-refunded 7/01/10)
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AA- (4) 8,042,475
Series 1999A, 6.000%, 7/01/29(Pre-refunded 7/01/10) - MBIA
Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
3,025 0.000%, 1/01/16 - AMBAC Insured No Opt. Call A 977,136
7,910 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 A 2,379,644
3,750 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/17 at 100.00 AAA 4,058,475
Bonds, Catholic Healthcare West, Series 2007B, Trust 2633,
16.277%, 7/01/31 - BHAC Insured (IF)
265 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/09 at 100.00 Aaa 264,051
Series 1997C-2, 5.750%, 4/01/29(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,760 Total Nevada 23,451,594
------------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.1% (2.6% OF TOTAL INVESTMENTS)
$ 15,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- $ 4,056,150
Transportation System Bonds, Series 2006C, 0.000%,
12/15/30 - FGIC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
12,075 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 13,050,539
5,050 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 5,772,302
------------------------------------------------------------------------------------------------------------------------------------
32,125 Total New Jersey 22,878,991
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.2% (0.7% OF TOTAL INVESTMENTS)
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding 10/09 at 100.00 Baa3 6,692,550
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.1% (7.0% OF TOTAL INVESTMENTS)
7,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 6,952,330
Service Contract Refunding Bonds, Series 2002A, 5.125%,
1/01/29
Nassau County, New York, General Obligation Improvement
Bonds, Series 2000F:
3,980 7.000%, 3/01/11 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,196,910
4,070 7.000%, 3/01/12 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,291,815
3,925 7.000%, 3/01/15 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,138,913
4,975 New York City Industrial Development Agency, New York, 6/09 at 102.00 BB+ 2,575,856
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
3,000 New York City Industrial Development Agency, New York, 12/12 at 101.00 BB+ 2,030,460
Special Facilities Revenue Bonds,
British Airways PLC, Series 2002, 7.625%, 12/01/32
(Alternative Minimum Tax)
9,850 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 10,014,594
Water and Sewerage System Revenue
Bonds, Fiscal Series 2000A, 5.750%, 6/15/31 (Pre-refunded
6/15/09) - FGIC Insured
5,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 4,984,650
Water and Sewerage System Revenue Bonds, Series 2008,
Trust 1199, 8.606%, 6/15/36 - FSA Insured (IF)
10,000 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 10,672,400
Future Tax Secured Bonds, Fiscal Series 2000B, 6.000%,
11/15/29 (Pre-refunded 5/15/10)
7,435 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 AA (4) 7,915,598
Series 2000A, 5.750%, 5/15/20(Pre-refunded 5/15/10)
4,595 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/10 at 100.00 Aa1 4,632,955
Bonds, Series 94, 5.800%, 10/01/20(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
63,830 Total New York 62,406,481
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,105 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 1,066,690
Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 -
AMBAC Insured (Alternative Minimum Tax)
4,945 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100.00 AA 4,949,599
Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29
(Alternative Minimum Tax)
305 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100.00 AA 312,845
Bonds, 1998 Trust Agreement, Series 8A, 5.950%, 1/01/27
(Alternative Minimum Tax)
4,370 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100.00 AA 4,377,385
Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,725 Total North Carolina 10,706,519
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,340 North Dakota Housing Finance Agency, Home Mortgage Finance 7/09 at 101.00 Aa1 1,319,994
Program Bonds, Series 1998B, 5.500%, 7/01/29 - MBIA
Insured (Alternative Minimum Tax)
2,250 Ward County Health Care, North Dakota, Revenue Bonds, Trinity 7/16 at 100.00 BBB+ 1,724,243
Obligated Group, Series 2006, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
3,590 Total North Dakota 3,044,237
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 37
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 7.6% (4.8% OF TOTAL INVESTMENTS)
$ 5,025 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 $ 4,873,597
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System, Series 1998A, 5.375%, 11/15/18
10,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 9,593,600
Series 2008, 5.250%, 2/15/43
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
260 5.125%, 6/01/24 6/17 at 100.00 BBB 204,901
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 1,831,356
2,635 5.750%, 6/01/34 6/17 at 100.00 BBB 1,668,245
2,400 6.000%, 6/01/42 6/17 at 100.00 BBB 1,397,784
5,895 5.875%, 6/01/47 6/17 at 100.00 BBB 3,311,634
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 2,097,544
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-3, 0.000%, 6/01/37
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
7,840 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 8,315,261
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,303,100
1,160 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 1,156,787
Program Residential Mortgage Revenue Bonds, Series 2000D,
5.450%, 9/01/31 (Alternative Minimum Tax)
2,650 Ohio, General Obligation Bonds, Higher Education, Series 5/13 at 100.00 AA+ 2,776,087
2003A, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
50,715 Total Ohio 42,529,896
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.3% (2.1% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,642,924
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
12,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A 10,181,280
John Health System, Series 2007, 5.000%, 2/15/42
2,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 AA- 1,689,420
Revenue Bonds, Series 2007, 4.500%,1/01/47 - FGIC Insured
Oklahoma State Industries Authority, Health System Revenue
Bonds, Integris Baptist Medical Center, Series 1999A:
2,110 5.750%, 8/15/29 (Pre-refunded 8/15/09) - MBIA Insured 8/09 at 101.00 AAA 2,163,700
2,890 5.750%, 8/15/29 (Pre-refunded 8/15/09) - MBIA Insured 8/09 at 101.00 AA- (4) 2,963,551
------------------------------------------------------------------------------------------------------------------------------------
20,675 Total Oklahoma 18,640,875
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Oregon State Facilities Authority, Revenue Bonds, Willamette 10/17 at 100.00 A 2,620,470
University, Series 2007A, 5.000%, 10/01/36
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.1% (0.7% OF TOTAL INVESTMENTS)
585 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 587,153
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/18 at 100.00 AAA 1,210,013
Series 2008, 5.000%, 12/01/43 - FSA Insured
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,297,920
Revenue Bonds, Series 2006A, 4.650%, 10/01/31 (Alternative
Minimum Tax) (UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 Aa3 2,658,734
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
145 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call A 138,389
Revenue Bonds, Capital Projects and Equipment Acquisition
Program, Series 1999, 6.150%, 12/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,080 Total Pennsylvania 5,892,209
------------------------------------------------------------------------------------------------------------------------------------
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.0% (1.9% OF TOTAL INVESTMENTS)
$ 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A3 $ 4,593,850
Series 2005RR, 5.000%, 7/01/26 - SYNCORA GTY Insured
10,070 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB+ 8,288,416
Revenue Bonds, Series 2007N, 5.250%,7/01/39 - FGIC Insured
4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 5.625%, 7/10 at 100.00 AA- 3,982,840
7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,070 Total Puerto Rico 16,865,106
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,235 Rhode Island Health and Educational Building Corporation, 5/09 at 100.00 AA- 1,235,124
Hospital Financing Revenue Bonds, Lifespan Obligated
Group, Series 1996, 5.500%, 5/15/16 - MBIA Insured
7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 6,218,310
Homeownership Opportunity Bond Program, Series 50A,
4.650%, 10/01/34
------------------------------------------------------------------------------------------------------------------------------------
8,235 Total Rhode Island 7,453,434
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.6% (2.2% OF TOTAL INVESTMENTS)
10,000 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 11,746,600
Installment 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+ (4) 2,928,100
Hospital Revenue Refunding and Improvement Bonds, Series
2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13)
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AA- 2,670,270
Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC
Insured
1,220 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AA- 563,603
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 Aa2 2,193,383
Bonds, Santee Cooper Electric System, Series 2003A,
5.000%, 1/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,845 Total South Carolina 20,101,956
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,945 South Dakota Health and Educational Facilities Authority, 5/17 at 100.00 AA- 2,598,138
Revenue Bonds, Sanford Health, Series 2007, 5.000%,
11/01/40
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 6.5% (4.1% OF TOTAL INVESTMENTS)
6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 5,937,540
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 13,028,445
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 14,953,062
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+ 1,773,450
Tennessee, Electric System Revenue Bonds, Series 2001A,
5.125%, 5/15/26
1,500 Sumner County Health, Educational, and Housing Facilities 11/17 at 100.00 N/R 739,515
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007, 5.500%, 11/01/46
------------------------------------------------------------------------------------------------------------------------------------
44,050 Total Tennessee 36,432,012
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.7% (9.2% OF TOTAL INVESTMENTS)
2,000 Abilene Higher Education Authority, Inc., Texas, Student Loan 5/09 at 100.00 Aa3 2,000,740
Revenue Bonds, Subordinate Series 1998B, 5.050%, 7/01/13
(Alternative Minimum Tax)
11,810 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 6,978,411
Refunding Bonds, TXU Electric
Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put
11/01/11) (Alternative Minimum Tax)
Nuveen Investments 39
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, No Opt. Call A $ 4,832,220
Houston Lighting and Power Company, Series 1998, 5.050%,
11/01/18 - AMBAC Insured (Alternative Minimum Tax)
4,250 Ennis Independent School District, Ellis County, Texas, 8/16 at 60.73 Aaa 1,731,748
General Obligation Bonds, Series 2006, 0.000%, 8/15/26
8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 10/09 at 101.00 BBB 6,690,852
Revenue Bonds, Valero Energy Corporation, Series 1999,
5.700%, 4/01/32 (Alternative Minimum Tax)
7,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AA- 7,157,250
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 AA 1,559,512
Obligation Bonds, Series 2003, 5.000%,2/15/28 - AMBAC
Insured (UB)
3,460 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA (4) 3,906,029
Obligation Bonds, Series 2003, 5.000%,2/15/28
(Pre-refunded 2/15/13) - AMBAC 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 A 5,817,588
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call A 2,171,340
9,345 Leander Independent School District, Williamson and Travis 8/15 at 35.34 AA- 2,083,935
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- 13,452,438
Bonds, Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30
(Alternative Minimum Tax)
7,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 4,537,190
Refunding Bonds, Capital Appreciation Series 2008I,
0.000%, 1/01/43
3,425 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 1,989,514
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 4,463,167
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 4,008,160
State Participation Program, Series 1999C, 5.500%, 8/01/35
6,840 Travis County Health Facilities Development Corporation, 11/09 at 101.00 AAA 7,103,545
Texas, Revenue Bonds, Ascension Health Credit Group,
Series 1999A, 5.875%, 11/15/24 (Pre-refunded 11/15/09) -
AMBAC Insured
245 Wood Glen Housing Finance Corporation, Texas, FHA-Insured 7/09 at 100.00 Aaa 246,348
Section 8 Assisted Mortgage Revenue Bonds, Copperwood I
Project, Series 1990A, 7.625%, 1/01/10 - MBIA Insured
(ETM)
3,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 74.57 AAA 1,681,830
General Obligation Bonds, Series 2005, 0.000%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
107,310 Total Texas 82,411,817
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,855 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB 1,200,756
Tobacco Settlement Asset-Backed Bonds, Series 2007B2,
0.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.9% (9.4% OF TOTAL INVESTMENTS)
1,260 Central Puget Sound Regional Transit Authority, Washington, 8/09 at 101.00 AAA 1,261,210
Sales Tax and Motor Vehicle Excise Tax Bonds, Series
1999, 4.750%, 2/01/28 - FGIC Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA $ 4,945,148
Consolidated System Revenue Bonds, Series 2002B, 5.250%,
7/01/37 (Mandatory put 7/01/12) - AMBAC Insured
(Alternative Minimum Tax)
Chelan County Public Utility District 1, Washington, Hydro
Consolidated System Revenue Bonds, Series 2009:
10,730 5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax) 7/11 at 101.00 AA 10,134,485
(UB)
8,810 5.600%, 1/01/36 - MBIA Insured (Alternative Minimum Tax) 7/11 at 101.00 AA 8,199,643
(UB)
10,730 Pierce County School District 320, Sumner, Washington, 12/10 at 100.00 Aa1 (4) 11,663,725
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, General Obligation Bonds, Series 12/10 at 100.00 AAA 10,595,260
2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) (UB)
5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, No Opt. Call Aa2 5,454,625
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 AA- (4) 20,476,401
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 AA- 5,023,250
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
5,000 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AA (4) 5,192,750
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19
(Pre-refunded 12/01/09) - MBIA Insured
1,270 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 600,939
Bonds, Series 2003F, 0.000%,12/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
83,805 Total Washington 83,547,436
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9% (0.5% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,847,600
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.3% (2.1% OF TOTAL INVESTMENTS)
535 Badger Tobacco Asset Securitization Corporation, Wisconsin, No Opt. Call AAA 593,299
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/12 (ETM)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
1,440 6.000%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,603,051
6,315 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 6,775,427
565 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aa3 568,237
2004, 5.000%, 11/01/29 - FSA Insured
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 4,883,700
Bonds, Madison Gas and Electric Company Projects, Series
2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
3,000 Southeast Wisconsin Professional Baseball Park District, No Opt. Call AA- 3,635,010
Sales Tax Revenue Refunding Bonds, Series 1998A, 5.500%,
12/15/19 - MBIA Insured
Nuveen Investments 41
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 430 Wisconsin Housing and Economic Development Authority, Home 3/10 at 100.00 AA $ 439,142
Ownership Revenue Bonds, Series
2000B, 5.750%, 3/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,285 Total Wisconsin 18,497,866
------------------------------------------------------------------------------------------------------------------------------------
$ 1,123,618 Total Investments (cost $938,166,767) - 159.6% 894,209,897
==============----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.7)% (49,023,333)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 13,810,156
-------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (53.3)% (298,675,000)
(5)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 560,321,720
===================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.4%
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
42 Nuveen Investments
NMO | Nuveen Municipal Market Opportunity Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.6% (0.4% OF TOTAL INVESTMENTS)
Henry County Water Authority, Alabama, Water Revenue Bonds,
Series 2006:
$ 1,935 5.000%, 1/01/36 - RAAI Insured 1/16 at 100.00 BBB+ $ 1,542,640
2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 BBB+ 1,937,530
------------------------------------------------------------------------------------------------------------------------------------
4,420 Total Alabama 3,480,170
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.5% (0.9% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General Housing Purpose
Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured (UB) 12/14 at 100.00 AA 1,131,435
1,275 5.250%, 12/01/41 - FGIC Insured (UB) 12/14 at 100.00 AA 1,276,709
12,280 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 6,430,545
Settlement Asset-Backed Bonds, Series 2006A, 5.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
14,680 Total Alaska 8,838,689
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3% (0.8% OF TOTAL INVESTMENTS)
5,000 Arkansas Development Finance Authority, Hospital Revenue 2/10 at 100.00 Baa1 (4) 5,225,150
Bonds, Washington Regional Medical Center, Series 2000,
7.000%, 2/01/15 (Pre-refunded 2/01/10)
2,480 Cabot School District 4, Lonoke County, Arkansas, General 6/09 at 100.00 A1 2,479,950
Obligation Refunding Bonds, Series 2003, 5.000%, 2/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,480 Total Arkansas 7,705,100
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.6% (6.0% OF TOTAL INVESTMENTS)
12,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 2,203,625
Lease Revenue Bonds, Public Improvement Project, Series
1997C, 0.000%, 9/01/35 - FSA Insured
1,350 Antelope Valley Union High School District, Los Angeles No Opt. Call AA- 396,333
County, California, General Obligation Bonds, Series
2004B, 0.000%, 8/01/29 - MBIA Insured
8,000 Beverly Hills Unified School District, Los Angeles County, No Opt. Call AA 2,120,720
California, General Obligation Bonds, Series 2009, 0.000%,
8/01/33
7,800 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 3,845,322
Settlement Asset-Backed Bonds, Los Angeles County
Securitization Corporation, Series 2006A, 0.000%, 6/01/36
1,350 California Educational Facilities Authority, Revenue No Opt. Call A2 193,212
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 3,439,994
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
9,000 California Health Facilities Financing Authority, Revenue 3/16 at 100.00 A+ 7,740,540
Bonds, Kaiser Permanante System, Series 2006, 5.250%,
3/01/45
1,550 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 1,514,738
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
6,250 California, Various Purpose General Obligation Bonds, Series 3/16 at 100.00 A 3,235,000
2005, Trust 2813, 11.060%,3/01/35 - MBIA Insured (IF)
10,445 Castaic Lake Water Agency, California, Certificates of No Opt. Call AA 3,536,155
Participation, Water System Improvement Project, Series
1999, 0.000%, 8/01/29 - AMBAC Insured
8,365 Cupertino Union School District, Santa Clara County, 8/13 at 52.66 AA 2,998,434
California, General Obligation Bonds, Series 2003B,
0.000%, 8/01/26 - FGIC Insured
Nuveen Investments 43
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA $ 5,513,450
Enhanced Tobacco Settlement
Asset-Backed Bonds, Series 2003B, 5.000%, 6/01/38
(Pre-refunded 6/01/13) - AMBAC Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 515,710
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A:
3,500 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 1,165,185
3,000 5.000%, 6/01/45 6/15 at 100.00 A 2,355,870
1,500 Lincoln Unified School District, Placer County, California, No Opt. Call A 486,300
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, 10/09 at 100.00 AA- (4) 491,318
Electric Plant Revenue Bonds, Second Series 1993, 4.750%,
10/15/20 (ETM)
995 Los Angeles Department of Water and Power, California, 8/09 at 100.00 AA- (4) 998,284
Electric Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34
(ETM)
1,000 Pajaro Valley Unified School District, Santa Cruz County, No Opt. Call AAA 292,030
California, General Obligation Bonds, Series 2005B,
0.000%, 8/01/29 - FSA Insured
8,040 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call AA- 1,625,849
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
5,000 5.650%, 1/15/17 - MBIA Insured 1/14 at 102.00 AA- 4,213,100
26,000 0.000%, 1/15/35 - MBIA Insured No Opt. Call AA- 3,415,880
5,000 San Jose-Evergreen Community College District, Santa Clara 9/15 at 50.47 Aa2 1,560,400
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 AA 1,813,621
California, General Obligation Bonds, Series 2005C,
0.000%, 8/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
136,255 Total California 55,671,070
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.4% (4.0% OF TOTAL INVESTMENTS)
1,085 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 854,438
Bonds, Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured
3,000 Broomfield, Colorado, Master Facilities Lease Purchase 12/09 at 100.00 A1 3,024,960
Agreement, Certificates of Participation, Series 1999,
5.750%, 12/01/24 - AMBAC Insured
6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding and 12/12 at 100.00 A1 6,399,073
Improvement Bonds, Series 2002A, 5.500%, 12/01/22 - AMBAC
Insured
11,465 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 11,586,873
Refunding Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC
Insured (Alternative Minimum Tax)
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
2,200 0.000%, 9/01/22 - MBIA Insured No Opt. Call AA- 809,094
7,000 0.000%, 9/01/30 - MBIA Insured No Opt. Call AA- 1,212,050
15,960 0.000%, 9/01/33 - MBIA Insured No Opt. Call AA- 2,144,545
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 Aaa 6,177,600
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:
3,800 0.000%, 9/01/27 - MBIA Insured 9/20 at 67.94 AA- 849,414
13,300 0.000%, 9/01/31 - MBIA Insured 9/20 at 53.77 AA- 2,113,503
6,250 0.000%, 9/01/32 - MBIA Insured 9/20 at 50.83 AA- 914,688
10,000 0.000%, 3/01/36 - MBIA Insured No Opt. Call AA- 1,083,500
------------------------------------------------------------------------------------------------------------------------------------
100,345 Total Colorado 37,169,738
------------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 10,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 A $ 8,277,800
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.2% (0.7% OF TOTAL INVESTMENTS)
9,305 Florida Housing Finance Corporation, Homeowner Mortgage 1/17 at 100.00 AA+ 6,826,799
Revenue Bonds, Series 2008, Trust1191, 9.070%, 7/01/32
(Alternative Minimum Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.3% (3.3% OF TOTAL INVESTMENTS)
15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ (4) 15,656,400
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 AA- 15,042,918
of Participation, Public Purpose Project, Series 1999,
5.500%, 11/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,330 Total Georgia 30,699,318
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2% (8.8% OF TOTAL INVESTMENTS)
4,595 Bolingbrook, Illinois, General Obligation Refunding Bonds, No Opt. Call AA- 1,259,903
Series 2002B, 0.000%, 1/01/32 - FGIC Insured
4,600 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 2,669,288
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 7/13 at 100.00 AA+ 4,017,640
2003A, 5.000%, 1/01/33 - AMBAC Insured
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AA+ 2,563,856
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 7/09 at 101.00 AA- 5,088,563
1998B, 5.000%, 1/01/28 - MBIA Insured
2,945 Illinois Finance Authority, Illinois, Northwestern 12/15 at 100.00 AAA 3,356,652
University, Revenue Bonds, Tender Option Bond Trust 3174,
14.628%, 12/01/42 (IF)
38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/10 at 100.00 AA- 39,095,596
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 Aa3 5,466,810
6,780 0.000%, 1/01/24 - FSA Insured 1/15 at 63.44 Aa3 2,988,963
1,975 Lake County Community High School District 127, Grayslake, No Opt. Call AAA 2,461,838
Illinois, General Obligation Bonds, Series 2002A, 9.000%,
2/01/13 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
6,500 0.000%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 4,669,925
3,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 3,291,615
3,700 0.000%, 6/15/30 - MBIA Insured No Opt. Call AAA 1,027,046
3,280 0.000%, 6/15/37 - MBIA Insured No Opt. Call AAA 566,882
11,715 0.000%, 12/15/38 - MBIA Insured No Opt. Call AAA 1,838,435
9,170 0.000%, 6/15/39 - MBIA Insured No Opt. Call AAA 1,394,757
------------------------------------------------------------------------------------------------------------------------------------
118,955 Total Illinois 81,757,769
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,695 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AA- 4,708,522
Butler University, Series 2001, 5.500%, 2/01/26 - MBIA
Insured
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding 8/11 at 102.00 Baa1 1,727,440
Bonds, Indianapolis Power and Light Company, Series 1991,
5.750%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
6,695 Total Indiana 6,435,962
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 970 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ $ 757,114
Initiatives Project, Series 2006A, 5.000%, 7/01/19
5,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 3,443,450
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
5,970 Total Iowa 4,200,564
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,683,100
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 392,340
Medical Center, Series 2006, 4.625%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Kansas 3,075,440
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.1% (1.3% OF TOTAL INVESTMENTS)
Jefferson County School District Finance Corporation,
Kentucky, School Building Revenue Bonds, Series 2000A:
3,045 5.250%, 7/01/17 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA 3,172,829
7,490 5.250%, 7/01/20 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA 7,804,430
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,033,880
Arena Project Revenue Bonds,
Louisville Arena Authority, Inc., Series 2008A-1, 6.000%,
12/01/38 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,535 Total Kentucky 12,011,139
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.4% (1.5% OF TOTAL INVESTMENTS)
7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 AA- 6,993,383
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 AA- 3,313,552
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA Insured
5,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 3,517,750
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
15,765 Total Louisiana 13,824,685
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2% (0.7% OF TOTAL INVESTMENTS)
4,410 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 3,889,929
Housing and Community Development, Residential Revenue
Bonds, Series 2007D, 4.900%, 9/01/42 (Alternative Minimum
Tax)
2,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 2,963,425
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
6,910 Total Maryland 6,853,354
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.0% (2.5% OF TOTAL INVESTMENTS)
440 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 442,495
Series 2000A, 5.250%, 7/01/30 Massachusetts Bay
Transportation Authority, Assessment Bonds, Series 2000A:
4,150 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 4,376,258
660 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 695,983
8,315 Massachusetts Turnpike Authority, Metropolitan Highway System 7/09 at 100.00 AA- 6,897,459
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 AA+ (4) 10,693,400
Bonds, Series 2000A, 5.750%, 8/01/39(Pre-refunded
8/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,565 Total Massachusetts 23,105,595
------------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.7% (1.0% OF TOTAL INVESTMENTS)
$ 5,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA $ 4,107,150
Revenue Bonds, Series 2006D, 4.625%, 7/01/32 - FSA Insured
2,090 Grand Rapids Building Authority, Kent County, Michigan, 8/10 at 100.00 AA 2,211,304
Limited Tax General Obligation Bonds, Series 2000, 5.375%,
8/01/17 - AMBAC Insured
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,142,839
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,284,780
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
11,290 Total Michigan 9,746,073
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 9.1% (5.6% OF TOTAL INVESTMENTS)
930 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 934,817
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
29,070 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 31,707,520
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%,
11/15/29(Pre-refunded 11/15/10)
1,795 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 1,816,414
Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31
(Alternative Minimum Tax)
13,675 Minnesota, General Obligation Bonds, Series 2000, 5.125%, 11/10 at 100.00 AAA 14,410,168
11/01/16
2,925 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 3,455,361
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
48,395 Total Minnesota 52,324,280
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.1% (0.7% OF TOTAL INVESTMENTS)
5,900 Mississippi Business Finance Corporation, Pollution Control 10/09 at 100.00 BBB 5,423,457
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
900 Mississippi Home Corporation, GNMA Mortgage-Backed Securities 7/09 at 103.00 Aaa 920,565
Program Single Family Mortgage Revenue Bonds, Series
1997D-5, 6.750%, 7/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,800 Total Mississippi 6,344,022
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8% (0.5% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri,
Leasehold Revenue Bonds, Series 2004B-1:
8,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AA- 3,117,040
5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AA- 1,498,350
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Missouri 4,615,390
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.8% (1.1% OF TOTAL INVESTMENTS)
11,690 Omaha Convention Hotel Corporation, Nebraska, Convention 2/17 at 100.00 A 10,460,680
Center Revenue Bonds, Series 2007, 5.000%, 2/01/35 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.0% (1.3% OF TOTAL INVESTMENTS)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
6,125 0.000%, 1/01/17 - AMBAC Insured No Opt. Call A 1,669,981
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call A 602,905
7,860 0.000%, 1/01/27 - AMBAC Insured No Opt. Call A 497,931
21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 A 6,317,640
2,135 Reno, Nevada, Capital Improvement Revenue Bonds, Series 6/15 at 33.61 AA- 222,894
2005B, 0.000%, 6/01/37 - FGIC Insured
2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,370,500
Healthcare West, Trust 2634, 16.017%,7/01/31 - BHAC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
48,120 Total Nevada 11,681,851
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.1% (4.4% OF TOTAL INVESTMENTS)
$ 18,400 New Jersey Health Care Facilities Financing Authority, 1/17 at 35.47 Baa2 $ 1,345,224
Revenue Bonds, Saint Barnabas Health Care System, Series
2006A, 0.000%, 7/01/37
18,000 New Jersey Transportation Trust Fund Authority, 6/10 at 100.00 AAA 19,055,880
Transportation System Bonds, Series 2000B, 5.750%, 6/15/17
(Pre-refunded 6/15/10)
35,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 7,266,350
Transportation System Bonds, Series 2006C, 0.000%,
12/15/34 - FSA Insured
5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and 1/17 at 100.00 A+ 3,576,450
Income Securities, Series 2004B, 5.150%, 1/01/35 - AMBAC
Insured
3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue No Opt. Call A1 1,241,970
Bonds, Series 2005A, 0.000%,9/01/25 - MBIA Insured
3,525 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 4,029,181
Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/42 (Pre-refunded 6/01/12)
2,100 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 2,425,752
Settlement Asset-Backed Bonds, Series 2003, 6.375%,
6/01/32 (Pre-refunded 6/01/13)
4,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,117,920
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/41
------------------------------------------------------------------------------------------------------------------------------------
89,025 Total New Jersey 41,058,727
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.8% (1.1% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,486,868
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21 (Pre-refunded 8/01/11)
3,610 University of New Mexico, Revenue Refunding Bonds, Series No Opt. Call AA 3,835,481
1992A, 6.250%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
9,535 Total New Mexico 10,322,349
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.1% (6.3% OF TOTAL INVESTMENTS)
3,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A- 2,864,100
General Revenue Bonds, Series 2006B, 5.000%, 12/01/35
6,750 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 6,901,133
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 18,319,431
Future 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 8/09 at 100.00 AA 5,041
Series 1997H, 6.125%, 8/01/25
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
1,000 5.000%, 8/01/17 8/12 at 100.00 AA 1,038,600
6,530 5.750%, 8/01/18 8/12 at 100.00 AA 7,056,514
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 5,403,150
Series 2003A, 5.750%, 8/01/16
10,000 Port Authority of New York and New Jersey, Special Project 6/09 at 101.00 AA- 8,340,800
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 8,175,920
Series 1999-1, 6.250%, 7/15/34(Mandatory put 7/15/24)
(Pre-refunded 7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
58,155 Total New York 58,104,689
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.3% (1.4% OF TOTAL INVESTMENTS)
1,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA- (4) 2,188,496
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded
1/15/15)
4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA 3,410,080
Bonds, Mission St. Joseph's Health System, Series 2007,
4.500%, 10/01/31 (UB)
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AA- 7,746,750
Revenue Bonds, Series 2003A, 5.250%,1/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,400 Total North Carolina 13,345,326
------------------------------------------------------------------------------------------------------------------------------------
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 4.9% (3.0% OF TOTAL INVESTMENTS)
$ 23,035 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA $ 23,112,166
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 AA (4) 2,371,650
2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AA (4) 2,607,143
------------------------------------------------------------------------------------------------------------------------------------
27,715 Total North Dakota 28,090,959
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 6.2% (3.9% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
3,000 5.375%, 6/01/24 6/17 at 100.00 BBB 2,432,040
120 5.125%, 6/01/24 6/17 at 100.00 BBB 94,570
1,250 5.875%, 6/01/30 6/17 at 100.00 BBB 847,850
1,215 5.750%, 6/01/34 6/17 at 100.00 BBB 769,229
4,300 6.000%, 6/01/42 6/17 at 100.00 BBB 2,504,363
4,750 5.875%, 6/01/47 6/17 at 100.00 BBB 2,668,408
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,321,900
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA
Insured (UB)
16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A 17,400,534
Kettering Medical Center, Series 1999, 6.300%, 4/01/12
------------------------------------------------------------------------------------------------------------------------------------
40,775 Total Ohio 36,038,894
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,642,924
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.8% (1.7% OF TOTAL INVESTMENTS)
5,000 Oregon Health Sciences University, Revenue Bonds, Series 1/13 at 100.00 AA- 4,888,150
2002A, 5.250%, 7/01/22 - MBIA Insured
Portland, Oregon, Water System Revenue Bonds, Series 2000A:
6,780 5.375%, 8/01/18 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1 (4) 7,183,207
3,880 5.500%, 8/01/20 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1 (4) 4,116,796
------------------------------------------------------------------------------------------------------------------------------------
15,660 Total Oregon 16,188,153
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.1% (1.9% OF TOTAL INVESTMENTS)
5,000 Delaware County Industrial Development Authority, 7/09 at 101.00 BB+ 4,527,750
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 Baa1 (4) 5,414,500
Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30
(Pre-refunded 12/15/10) - MBIA Insured
7,550 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 8,140,033
5.000%, 9/15/14
------------------------------------------------------------------------------------------------------------------------------------
17,550 Total Pennsylvania 18,082,283
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.8% (2.3% OF TOTAL INVESTMENTS)
3,330 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 3,211,752
Senior Lien Series 2008A, 6.000%, 7/01/44
Puerto Rico Housing Finance Authority, Capital Fund Program
Revenue Bonds, Series 2003:
8,200 4.500%, 12/01/23 (UB) 12/13 at 100.00 AAA 9,054,194
4,300 4.500%, 12/01/23 (UB) 12/13 at 100.00 AA+ 4,193,016
6,605 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 5,310,222
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
22,435 Total Puerto Rico 21,769,184
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.4% (0.2% OF TOTAL INVESTMENTS)
$ 2,960 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB $ 2,185,812
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.6% (4.1% OF TOTAL INVESTMENTS)
24,730 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 28,617,060
Installment 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 A 5,913,200
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 Aa2 3,699,445
Bonds, Santee Cooper Electric System, Series 2003A,
5.000%, 1/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
49,860 Total South Carolina 38,229,705
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 7/13 at 100.00 A3 3,953,300
Tennessee, Hospital Revenue Bonds, East Tennessee
Children's Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI
Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 22.4% (13.9% OF TOTAL INVESTMENTS)
2,500 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 942,075
Bonds, American Airlines Inc., Series 2007, 5.250%,
12/01/29 (Alternative Minimum Tax)
12,250 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue 11/09 at 100.00 A (4) 12,584,793
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 No Opt. Call CCC 6,650,467
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 5,090,727
8,825 5.625%, 8/15/29 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 8,958,258
1,000 Cedar Hill Independent School District, Dallas County, Texas, No Opt. Call AA- 254,640
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 AA- 11,020,350
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 596,174
340 5.650%, 2/15/19 2/10 at 100.00 AAA 346,504
235 5.700%, 2/15/20 2/10 at 100.00 AAA 241,784
270 5.700%, 2/15/21 2/10 at 100.00 AAA 277,795
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 17,386,499
9,660 5.650%, 2/15/19 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 10,052,099
6,645 5.700%, 2/15/20 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 6,917,312
7,750 5.700%, 2/15/21 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 8,067,595
2,500 Comal Independent School District, Comal, Bexar, Guadalupe, No Opt. Call Aaa 1,337,000
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+ 2,472,240
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
Ennis Independent School District, Ellis County, Texas,
General Obligation Bonds, Series 2006:
3,950 0.000%, 8/15/30 8/16 at 49.21 Aaa 1,186,304
4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,126,040
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,440 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call A $ 346,608
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/32 - AMBAC Insured
1,250 Houston, Texas, Junior Lien Water and Sewerage System Revenue 12/11 at 100.00 AAA 1,308,875
Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - FSA
Insured
9,350 Leander Independent School District, Williamson and Travis 8/15 at 39.50 AA- 2,357,322
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/32 - FGIC Insured
6,000 Leander Independent School District, Williamson and Travis 8/14 at 35.28 AAA 1,510,320
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/33
4,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 2,592,680
Refunding Bonds, Capital Appreciation Series 2008I,
0.000%, 1/01/43
15,000 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,235,500
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded 8/15/09)
3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 2,464,001
Financing Corporation, Revenue Bonds, Series 2007,
Residuals 1762, 15.896%, 2/15/36 (IF)
5,000 White Settlement Independent School District, Tarrant County, 8/15 at 36.81 AAA 1,165,700
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 AA- (4) 4,317,971
Sewerage System Revenue Bonds, Series 2001, 5.000%,
8/01/21 (Pre-refunded 8/01/11) - AMBAC Insured
Wylie Independent School District, Taylor County, Texas,
General Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/23 8/15 at 67.10 AAA 1,488,210
2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 931,400
------------------------------------------------------------------------------------------------------------------------------------
168,825 Total Texas 129,227,243
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 17.7% (11.0% OF TOTAL INVESTMENTS)
5,500 Clark County Public Utility District 1, Washington, 1/11 at 100.00 AAA 5,600,980
Generating System Revenue Refunding Bonds, Series 2000,
5.125%, 1/01/20 - FSA Insured
2,755 Cowlitz County, Washington, Special Sewerage Revenue No Opt. Call AA- 3,056,728
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 10,743,900
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 AA+ 2,556,450
5.000%, 1/01/23 - FGIC Insured
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AA (4) 35,586,138
5.625%, 2/01/30 (Pre-refunded 8/01/10) - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 Aa2 6,958,062
5.625%, 2/01/24 - MBIA Insured(Alternative Minimum Tax)
(UB)
2,150 Seattle, Washington, General Obligation Refunding and 12/12 at 100.00 AAA 2,225,250
Improvement Bonds, Series 2002, 4.500%, 12/01/20
3,000 Spokane County School District 81, Spokane, Washington, 6/15 at 100.00 AA 3,119,760
General Obligation Bonds, Series 2005, 5.000%, 6/01/24 -
MBIA Insured
3,520 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aa3 (4) 3,843,734
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 BBB+ (4) 8,186,585
Revenue Bonds, Pacific Lutheran University, Series 1999,
5.950%, 11/01/29 (Pre-refunded 11/01/09) - RAAI Insured
11,120 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 10,719,902
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 9,361,800
Series 2002C, 5.000%, 1/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
97,875 Total Washington 101,959,289
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 51
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 3,595 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA $ 3,857,111
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27 (Pre-refunded 6/01/12)
1,755 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 1,304,263
Revenue Bonds, Divine Savior Healthcare, Series 2006,
4.750%, 5/01/25
1,250 Wisconsin Health and Educational Facilities Authority, 9/09 at 100.50 N/R 934,763
Revenue Bonds, United Lutheran Program for the Aging Inc.,
Series 1998, 5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
6,600 Total Wisconsin 6,096,137
------------------------------------------------------------------------------------------------------------------------------------
$ 1,270,550 Total Investments (cost $979,570,434) - 161.3% 931,400,462
==============----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.0)% (23,290,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 16,131,235
-------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (60.0)% (346,675,000)
(5)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 577,566,697
===================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 37.2%
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
52 Nuveen Investments
NAD | Nuveen Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 159.9% (99.4% OF TOTAL INVESTMENTS)
ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 1,327,140
Bonds, Series 2000, 5.750%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
750 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 754,290
Bonds, Series 2005A, 5.250%,12/01/34 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.2% (0.7% OF TOTAL INVESTMENTS)
2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,340,036
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
5,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 3,389,450
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
7,350 Total Arizona 5,729,486
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.3% (3.9% OF TOTAL INVESTMENTS)
1,535 Alameda Corridor Transportation Authority, California, Senior No Opt. Call AA- 256,545
Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 - MBIA
Insured
5,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 1,575,860
Lease Revenue Bonds, Public Improvement Project, Series
1997C, 0.000%, 9/01/28 - FSA Insured
6,750 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 7,017,368
Bonds, Methodist Hospital Project, Series 2009, 6.750%,
2/01/38
65 California, General Obligation Bonds, Series 1997, 5.000%, 6/09 at 100.00 A+ 65,176
10/01/18 - AMBAC Insured
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/16 at 100.00 A 4,696,200
3/01/31
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
5,200 5.000%, 6/01/33 6/17 at 100.00 BBB 3,324,204
1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 515,710
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A:
3,500 0.000%, 6/01/26 - FSA Insured No Opt. Call Aa3 1,165,185
9,925 5.000%, 6/01/45 6/15 at 100.00 AAA 8,838,411
1,495 Palmdale Civic Authority, California, Revenue Refinancing 7/09 at 100.00 AA- 1,502,864
Bonds, Civic Center Project, Series 1997A, 5.375%,
7/01/12 - MBIA Insured
17,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AA- 2,233,460
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
56,970 Total California 31,190,983
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.2% (2.6% OF TOTAL INVESTMENTS)
1,125 Antelope Heights Metropolitan District, Colorado, Limited Tax 12/17 at 100.00 A3 803,734
General Obligation Bonds, Series 2007, 5.000%, 12/01/37 -
RAAI Insured
Nuveen Investments 53
NAD| Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Denver City and County, Colorado, Airport Special Facilities
Revenue Bonds, Rental Car Projects, Series 1999A:
$ 2,170 6.000%, 1/01/12 - MBIA Insured (Alternative Minimum Tax) 7/09 at 101.00 AA- $ 2,195,107
675 6.000%, 1/01/13 - MBIA Insured (Alternative Minimum Tax) 7/09 at 101.00 AA- 682,661
1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/09 at 100.00 BBB+ 1,464,985
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 AA- 2,319,997
Bonds, Series 1997B, 0.000%,9/01/25 - MBIA Insured
25,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AA- 3,978,750
Bonds, Series 2000B, 0.000%,9/01/31 - MBIA Insured
60,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AA- 6,426,600
Series 2004A, 0.000%, 3/01/36 - MBIA Insured
12,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/26 at 54.77 AA- 1,053,000
Series 2006A, 0.000%, 9/01/38 - MBIA Insured
2,000 Metropolitan Football Stadium District, Colorado, Sales Tax No Opt. Call AA- 1,854,000
Revenue Bonds, Series 1999A, 0.000%, 1/01/12 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
113,460 Total Colorado 20,778,834
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4% (0.3% OF TOTAL INVESTMENTS)
4,335 Mashantucket Western Pequot Tribe, Connecticut, Subordinate 11/17 at 100.00 Baa3 2,164,596
Special Revenue Bonds, Series 2007A, 5.750%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 10.3% (6.4% OF TOTAL INVESTMENTS)
1,510 Florida Housing Finance Agency, Housing Revenue Bonds, Mar 6/09 at 101.00 A 1,458,479
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 13,547,100
Outlay Bonds, Series 2005E, 4.500%, 6/01/35 (UB)
2,500 Marion County Hospital District, Florida, Revenue Bonds, 10/17 at 100.00 A3 1,841,750
Munroe Regional Medical Center, Series 2007, 5.000%,
10/01/34
13,625 Martin County Industrial Development Authority, Florida, 6/09 at 100.00 BB+ 11,614,631
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
22,000 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 19,622,680
Bonds, Baptist Health Systems of South Florida, Series
2007, 5.000%, 8/15/37 (UB)
4,055 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 3,139,705
Bonds, Baptist Health Systems of South Florida, Trust
1025, 8.242%, 8/15/42 (IF)
------------------------------------------------------------------------------------------------------------------------------------
58,690 Total Florida 51,224,345
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.7% (1.0% OF TOTAL INVESTMENTS)
5,000 Cobb County Development Authority, Georgia, Student Housing 7/17 at 100.00 Baa3 3,963,450
Revenue Bonds, KSU Village II Real Estate Foundation LLC
Project, Series 2007A, 5.250%, 7/15/38 - AMBAC Insured
4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/10 at 101.00 AA+ (4) 4,240,400
Bonds, Series 2000, 6.000%,4/01/25 (Pre-refunded 4/01/10)
------------------------------------------------------------------------------------------------------------------------------------
9,000 Total Georgia 8,203,850
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
115 Idaho Housing and Finance Association, Single Family Mortgage 7/09 at 101.00 Aa2 115,841
Bonds, Series 1999E, 5.750%,1/01/21 (Alternative Minimum
Tax)
160 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 162,926
Bonds, Series 2000D, 6.350%,7/01/22 (Alternative Minimum
Tax)
240 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 248,489
Bonds, Series 2000E, 5.950%,7/01/20 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
515 Total Idaho 527,256
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 33.2% (20.7% OF TOTAL INVESTMENTS)
$ 2,020 Channahon, Illinois, Revenue Refunding Bonds, Morris 12/09 at 102.00 BBB+ $ 2,063,006
Hospital, Series 1999, 5.750%, 12/01/12
2,205 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 687,100
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/29 - FGIC Insured
7,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 7,920,335
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:
725 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AA- 738,579
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AA- 1,212,735
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AA- 1,926,271
22,750 Chicago, Illinois, General Obligation Refunding Bonds, No Opt. Call AA- 25,323,478
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 AA+ 2,920,566
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
3,340 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AA- 3,240,568
O'Hare International Airport, Series 2005A, 5.000%,
1/01/33 - FGIC Insured
190 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aa3 205,956
Illinois, General Obligation Bonds, Series 2003B, 5.250%,
11/01/20 - FSA Insured
810 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aa3 (4) 930,496
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 AA 504,470
Obligation Bonds, Series 1999, 5.375%, 12/01/29 - MBIA
Insured
3,935 Illinois Development Finance Authority, Local Government No Opt. Call Baa1 3,145,364
Program Revenue Bonds, Lake County School District 116 -
Round Lake, Series 1999, 0.000%, 1/01/15 - MBIA Insured
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,813,920
Memorial Hospital, Series 2008, 5.250%,8/15/47 - AGC
Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 872,200
Services Corporation, Series 2008A, 5.500%, 2/01/40 -
AMBAC Insured
5,570 Illinois Finance Authority, Revenue Bonds, University of 7/14 at 100.00 Aa1 5,602,362
Chicago, Series 2004A, 5.000%, 7/01/34
9,840 Illinois Health Facilities Authority, Remarketed Revenue 8/11 at 103.00 Aa1 10,234,781
Bonds, University of Chicago Project, Series 1985A,
5.500%, 8/01/20
5,595 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/09 at 100.00 AA- 4,900,493
University Health System, Series 1997A, 5.000%, 7/01/24 -
MBIA Insured
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah 8/09 at 100.00 A 5,490,878
Bush Lincoln Health Center, Series 1996B, 5.500%, 2/15/16
1,500 Illinois Housing Development Authority, Housing Finance 1/15 at 100.00 A+ 1,329,435
Bonds, Series 2005E, 4.800%, 1/01/36 - FGIC Insured
2,000 Kane & DeKalb Counties, Illinois, Community United School No Opt. Call A3 1,089,480
District 301, General Obligation Bonds, Series 2006,
0.000%, 12/01/21 - MBIA Insured
11,345 Lake and McHenry Counties Community Unit School District 118, 1/15 at 60.14 Aa3 4,745,727
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 2,010,810
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 23,064,298
Bonds, McCormick Place Expansion Project, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
Nuveen Investments 55
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series
1996A:
$ 12,250 0.000%, 12/15/22 - MBIA Insured No Opt. Call AA- $ 6,119,733
13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AA- 6,024,200
1,840 Oak Park, Illinois, General Obligation Bonds, Series 2005B, 11/15 at 54.13 AA- 641,001
0.000%, 11/01/27 - SYNCORA GTY Insured
Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1999:
22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 26,389,287
3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,144,595
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,323,218
5.250%, 12/01/34 - FGIC Insured
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aa3 4,859,200
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/23 - FSA Insured
4,500 Will County School District 122, New Lenox, Illinois, General No Opt. Call Aa3 3,064,545
Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
188,360 Total Illinois 164,539,087
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 7.1% (4.4% OF TOTAL INVESTMENTS)
8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 9,077,534
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 AA (4) 8,608,560
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/26 (Pre-refunded 8/15/10) - MBIA Insured
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,561,940
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
6,830 Indiana Housing and Community Development Authority, Single 1/17 at 100.00 Aaa 5,603,300
Family Mortgage Revenue Bonds, Series 2007A-1, Drivers
1847, 7.587%, 7/01/32 (Alternative Minimum Tax) (IF)
6,675 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AA- 6,237,721
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, 6/09 at 101.00 Aa3 (4) 4,250,881
Park Tudor Foundation Inc., Project, Series 1999, 5.700%,
6/01/24 (Pre-refunded 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
36,450 Total Indiana 35,339,936
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.8% (0.5% OF TOTAL INVESTMENTS)
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 3,953,950
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.3% (0.8% OF TOTAL INVESTMENTS)
3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/09 at 100.00 AA- 3,825,459
Series 1999, 4.000%, 10/01/18 - FGIC Insured
3,000 Wyandotte County-Kansas City Unified Government, Kansas, 12/15 at 100.00 N/R 2,646,390
Sales Tax Special Obligation Bonds, Redevelopment Project
Area B, Series 2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
6,825 Total Kansas 6,471,849
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.7% (1.0% OF TOTAL INVESTMENTS)
3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101.00 Aa3 (4) 3,179,803
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 10/09 at 101.00 BB- 1,456,672
5,000 5.875%, 10/01/22 10/09 at 101.00 BB- 3,608,900
------------------------------------------------------------------------------------------------------------------------------------
9,880 Total Kentucky 8,245,375
------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 7.4% (4.6% OF TOTAL INVESTMENTS)
$ 2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public 5/10 at 101.50 AA- (4) $ 2,392,070
Improvements, Series 2000B, 5.625%,5/01/25 (Pre-refunded
5/01/10) - FGIC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,873,953
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, Baton 7/14 at 100.00 AA- 5,291,792
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 -
MBIA Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 6,724,440
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5,445 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AA 4,871,859
2006A, 4.500%, 5/01/41 - FGIC Insured (UB)
13,570 Louisiana Transportation Authority, Senior Lien Toll Road 12/10 at 38.73 A 3,986,459
Revenue Bonds, Series 2005B, 0.000%,12/01/28 - AMBAC
Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
9,545 5.500%, 5/15/30 5/11 at 101.00 BBB 7,925,404
5,000 5.875%, 5/15/39 5/11 at 101.00 BBB 3,517,750
------------------------------------------------------------------------------------------------------------------------------------
51,905 Total Louisiana 36,583,727
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.4% (1.5% OF TOTAL INVESTMENTS)
1,455 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R 995,889
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 4,396,515
Revenue Bonds, Berkshire Health System, Series 2005F,
5.000%, 10/01/19 - AGC Insured (UB)
620 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 488,362
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/33
3,000 Massachusetts Housing Finance Agency, Housing Bonds, Series 12/18 at 100.00 AA- 2,878,590
2009F, 5.700%, 6/01/40
785 Massachusetts Port Authority, Special Facilities Revenue 9/09 at 100.00 AA- 592,212
Bonds, US Airways Group Inc., Series1996A, 5.875%,
9/01/23 - MBIA Insured (Alternative Minimum Tax)
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
2,200 5.125%, 1/01/17 - MBIA Insured 6/09 at 100.00 AA- 2,199,912
1,000 0.000%, 1/01/24 - MBIA Insured No Opt. Call AA- 400,270
------------------------------------------------------------------------------------------------------------------------------------
13,425 Total Massachusetts 11,951,750
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9% (2.4% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AA- 5,079,960
Revenue Bonds, Series 2005A, 5.000%,7/01/35 - MBIA Insured
15,255 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 100.00 BB 8,969,940
Bonds, Detroit Medical Center Obligated Group, Series
1998A, 5.250%, 8/15/28
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,284,780
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 6/09 at 101.00 AA- 3,830,400
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/16 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
26,405 Total Michigan 19,165,080
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 57
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.5% (0.9% OF TOTAL INVESTMENTS)
$ 6,375 Minneapolis Health Care System, Minnesota, Revenue Bonds, 11/18 at 100.00 A $ 6,708,349
Fairview Hospital and Healthcare Services, Series 2008A,
6.625%, 11/15/28
665 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA+ 666,889
Bonds, Series 1998H-1, 5.650%,7/01/31 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,040 Total Minnesota 7,375,238
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.6% (1.6% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri,
Leasehold Revenue Bonds, Series 2004B-1:
7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AA- 2,727,410
5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AA- 1,710,250
1,885 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA 1,914,161
Bonds, SSM Healthcare System, Series 2001A, 5.250%,
6/01/21 - AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
300 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 N/R (4) 325,800
2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 2,372,910
3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 3,985,620
------------------------------------------------------------------------------------------------------------------------------------
20,040 Total Missouri 13,036,151
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.3% (0.2% OF TOTAL INVESTMENTS)
815 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 842,922
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 874,320
Student Loan Revenue Bonds, Subordinate Series 1999B,
6.400%, 12/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,815 Total Montana 1,717,242
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
900 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call Aa2 927,828
Loan Program, Series 1993A-5A, 6.200%, 6/01/13 - MBIA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.9% (1.2% OF TOTAL INVESTMENTS)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
8,000 0.000%, 1/01/19 - AMBAC Insured No Opt. Call A 1,677,200
4,000 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 A 1,203,480
3,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 A 902,520
3,750 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/17 at 100.00 AAA 4,058,475
Bonds, Catholic Healthcare West, Series 2007B, Trust 2633,
16.277%, 7/01/31 - BHAC Insured (IF)
1,500 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 1,538,445
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
20,250 Total Nevada 9,380,120
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.4% (4.0% OF TOTAL INVESTMENTS)
30 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 A 30,026
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center, Series 2001, 4.800%, 8/01/21 - AMBAC Insured
1,830 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 Aaa 1,885,175
Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA
Insured (Alternative Minimum Tax)
4,130 New Jersey Transit Corporation, Certificates of No Opt. Call A1 4,503,848
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/13 - AMBAC Insured
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 4,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- $ 4,535,480
Transportation System Bonds, Series 1999A, 5.750%, 6/15/18
20,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 6,256,600
Transportation System Bonds, Series 2006C, 0.000%,
12/15/28 - AMBAC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
8,615 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 9,311,006
3,165 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,617,690
1,365 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 1,641,481
Settlement Asset-Backed Bonds, Series 2003, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
------------------------------------------------------------------------------------------------------------------------------------
43,135 Total New Jersey 31,781,306
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.7% (0.4% OF TOTAL INVESTMENTS)
3,730 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,496,353
Revenue Bonds, Series 2004, 5.000%,7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.5% (7.8% OF TOTAL INVESTMENTS)
2,170 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 100.00 A3 2,169,826
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 8/09 at 100.75 AA- 7,540,425
Hospital Revenue Refunding Bonds, Wyckoff Heights Medical
Center, Series 1998H, 5.300%, 8/15/21 - MBIA 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 A+ (4) 4,099,077
7,005 5.250%, 6/01/21 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 A (4) 7,169,547
6,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 4,516,980
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
4,755 New York City Industrial Development Agency, New York, 3/19 at 100.00 AAA 5,397,258
Revenue Bonds, Yankee Stadium Project Pilot, Series 2009A,
7.000%, 3/01/49 - AGC Insured
2,500 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,492,325
Water and Sewerage System Revenue Bonds, Series 2008,
Trust 1199, 8.606%, 6/15/36 - FSA Insured (IF)
8,800 New York City Sales Tax Asset Receivable Corporation, New 10/14 at 100.00 AAA 8,959,544
York, Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A, 5.000%, 10/15/32 - AMBAC
Insured (UB)
10,000 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AAA 10,251,500
Future Tax Secured Bonds, Fiscal Series 2000A, 5.750%,
8/15/24 (Pre-refunded 8/15/09)
10,000 Port Authority of New York and New Jersey, Special Project 6/09 at 101.00 AA- 9,292,200
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 5.900%, 12/01/17 - MBIA Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
62,735 Total New York 61,888,682
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.2% (0.7% OF TOTAL INVESTMENTS)
3,830 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA- (4) 4,411,547
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded
1/15/15)
1,500 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,553,850
Doing Business as Carolinas HealthCare System, Health Care
Refunding Revenue Bonds, Series 2008A, 5.250%, 1/15/24 -
AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,330 Total North Carolina 5,965,397
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.1% (3.2% OF TOTAL INVESTMENTS)
$ 2,300 Amherst Exempted Village School District, Ohio, Unlimited Tax 12/11 at 100.00 A1 (4) $ 2,531,955
General Obligation School Improvement Bonds, Series 2001,
5.125%, 12/01/21 (Pre-refunded 12/01/11) - FGIC Insured
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
170 5.125%, 6/01/24 6/17 at 100.00 BBB 133,974
1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,220,904
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,101,611
3,930 5.875%, 6/01/47 6/17 at 100.00 BBB 2,207,756
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/09 at 100.00 Aa2 3,635,291
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 3,402,822
Initiatives, Series 2004A, 5.000%, 5/01/30
11,900 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 10,114,167
Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%,
9/01/20 (Alternative Minimum Tax)
1,025 Warren County, Ohio, Limited Tax General Obligations, Series 6/09 at 100.00 Aa2 1,028,413
1997, 5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
30,150 Total Ohio 25,376,893
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aa3 2,390,160
Redevelopment Revenue Bonds, Series 2000A, 5.500%,
6/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.9% (3.7% OF TOTAL INVESTMENTS)
3,480 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 3,987,523
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B, 9.250%, 11/15/22 (Pre-refunded
11/15/10)
520 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 521,914
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/18 at 100.00 AAA 1,210,013
Series 2008, 5.000%, 12/01/43 - FSA Insured
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,297,920
Revenue Bonds, Series 2006A, 4.650%, 10/01/31 (Alternative
Minimum Tax) (UB)
18,900 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/09 at 101.00 AA- 18,916,441
Series 1998A, 5.500%, 6/15/18 - FGIC Insured (Alternative
Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 3,635,688
Obligation Bonds, Series 2002B, 5.625%,8/01/16
(Pre-refunded 8/01/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,855 Total Pennsylvania 29,569,499
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.4% (2.1% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 2,411,225
Senior Lien Series 2008A, 6.000%, 7/01/44
Puerto Rico Housing Finance Authority, Capital Fund Program
Revenue Bonds, Series 2003:
4,300 4.500%, 12/01/23 (UB) 12/13 at 100.00 AA+ 4,193,016
8,200 4.500%, 12/01/23 (UB) 12/13 at 100.00 AAA 9,054,194
12,845 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 1,105,055
Revenue Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,845 Total Puerto Rico 16,763,490
------------------------------------------------------------------------------------------------------------------------------------
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.5% (2.2% OF TOTAL INVESTMENTS)
$ 2,015 Central Falls, Rhode Island, General Obligation School Bonds, 5/09 at 102.00 BBB+ $ 2,037,830
Series 1999, 6.250%, 5/15/20 - RAAI Insured
3,500 Providence Redevelopment Agency, Rhode Island, Revenue Bonds, 4/10 at 101.00 Baa2 (4) 3,701,320
Public Safety and Municipal Building Projects, Series
1999A, 5.750%, 4/01/29 (Pre-refunded 4/01/10) - AMBAC
Insured
Rhode Island Housing & Mortgage Finance Corporation,
Homeownership Opportunity 57-B Bond Program, Series 2008,
Trust 1177:
1,500 9.259%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,403,595
1,000 9.359%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 902,160
12,500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 9,209,750
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.125%, 6/01/32
----------------------------------------------------------------------------------------------------------------------------------
20,515 Total Rhode Island 17,254,655
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Greenville, South Carolina, Hospital Facilities Revenue 5/11 at 101.00 AA- 1,394,115
Bonds, Series 2001, 5.000%, 5/01/31 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.2% (1.4% OF TOTAL INVESTMENTS)
6,400 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 A 6,420,288
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 2,446,170
Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured
2,310 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 1,412,773
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
1,500 Sumner County Health, Educational, and Housing Facilities 11/17 at 100.00 N/R 739,515
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007, 5.500%, 11/01/46
----------------------------------------------------------------------------------------------------------------------------------
12,635 Total Tennessee 11,018,746
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.6% (4.7% OF TOTAL INVESTMENTS)
2,560 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa2 1,054,541
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
2,820 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AA- 2,071,826
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:
1,535 0.000%, 8/15/20 8/09 at 52.47 AAA 801,424
2,100 0.000%, 8/15/21 8/09 at 49.48 AAA 1,025,367
2,200 0.000%, 8/15/23 8/09 at 52.47 AAA 954,580
2,100 0.000%, 8/15/24 8/09 at 41.50 AAA 858,963
2,200 0.000%, 8/15/25 8/09 at 39.14 AAA 848,298
2,095 0.000%, 8/15/26 8/09 at 36.91 AAA 761,637
820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 900,762
Revenue Bonds, Series 2001, 5.000%,12/01/31 (Pre-refunded
12/01/11) - AMBAC Insured
2,205 Harris County-Houston Sports Authority, Texas, Senior Lien No Opt. Call AA- 1,102,213
Revenue Refunding Bonds, Series2001A, 0.000%, 11/15/20 -
MBIA Insured
3,130 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call A 855,460
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/30 - AMBAC Insured
2,500 Jefferson County, Texas, Certificates of Obligation, Series 8/10 at 100.00 AAA 2,668,375
2000, 6.000%, 8/01/25(Pre-refunded 8/01/10) - FSA Insured
30,095 Leander Independent School District, Williamson and Travis 8/12 at 27.94 AAA 6,978,128
Counties, Texas, General Obligation Bonds, Series 2004,
0.000%, 8/15/34
Nuveen Investments 61
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 9,345 Leander Independent School District, Williamson and Travis 8/15 at 37.33 AA- $ 2,221,774
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/33 - FGIC Insured
33,160 Leander Independent School District, Williamson and Travis 8/14 at 26.50 AAA 6,156,486
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/38
1,000 San Antonio, Texas, Water System Revenue Bonds, Series 2005, 5/15 at 100.00 AA 963,960
4.750%, 5/15/37 - MBIA Insured
3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 2,464,001
Financing Corporation, Revenue Bonds, Series 2007,
Residuals 1761, 15.896%, 2/15/36 (IF)
7,000 White Settlement Independent School District, Tarrant County, 8/15 at 34.92 AAA 1,532,790
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 1,788,270
3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,584,870
----------------------------------------------------------------------------------------------------------------------------------
116,160 Total Texas 37,593,725
----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.2% (0.1% OF TOTAL INVESTMENTS)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 1999C-2, Class II:
225 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 Aaa 230,821
70 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 70,525
30 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.00 AA 30,350
Series 1999D, 5.850%, 7/01/21(Alternative Minimum Tax)
10 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.50 Aa3 10,343
Series 1999F, 6.300%, 7/01/21(Alternative Minimum Tax)
585 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 591,254
Series 2000F-2, Class III, 6.000%,1/01/15 (Alternative
Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
920 Total Utah 933,293
----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,000 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 2,055,900
Residential Care Facilities Mortgage Revenue Bonds,
Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.8% (7.4% OF TOTAL INVESTMENTS)
4,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 AA 4,332,680
Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 -
SYNCORA GTY Insured
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999B:
1,755 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AA- 1,775,762
2,590 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AA- 2,618,386
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 AA- 885,351
1,260 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AA- 1,273,810
4,820 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 5,034,394
Refunding and Improvement Bonds, Series 2001, 5.500%,
3/01/19 - FSA Insured
6,650 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 6,410,733
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
11,605 Washington, Certificates of Participation, Washington 7/09 at 100.00 AA 11,666,853
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 2,425,434
Series 1999S-2, 0.000%, 1/01/18 - FSA Insured
Washington, General Obligation Compound Interest Bonds,
Series 1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call AA+ 11,268,819
18,470 0.000%, 1/01/21 No Opt. Call AA+ 11,063,899
----------------------------------------------------------------------------------------------------------------------------------
73,025 Total Washington 58,756,121
----------------------------------------------------------------------------------------------------------------------------------
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 9.2% (5.7% OF TOTAL INVESTMENTS)
$ 1,390 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA $ 1,547,390
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.000%,
6/01/17 (Pre-refunded 6/01/12)
1,690 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aa3 (4) 1,955,617
5.000%, 11/01/29 (Pre-refunded 11/01/14) - FSA Insured
560 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aa3 563,209
5.000%, 11/01/29 - FSA Insured
3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding 12/09 at 101.00 A2 3,897,287
Bonds, Dairyland Power Cooperative, Series 1997C, 5.550%,
2/01/15 - AMBAC Insured
7,410 Wisconsin Health and Educational Facilities Authority, Revenue 11/16 at 100.00 Aa1 7,038,314
Bonds, Ascension Health, Series 2006A, 5.000%, 11/15/36
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) 8,717,454
5,000 6.250%, 11/15/28 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 5,204,450
4,380 Wisconsin Health and Educational Facilities Authority, Revenue 5/09 at 101.00 A 4,093,110
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 A2 11,258,931
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 BBB+ 1,347,148
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
----------------------------------------------------------------------------------------------------------------------------------
47,515 Total Wisconsin 45,622,910
----------------------------------------------------------------------------------------------------------------------------------
$ 1,122,270 Total Municipal Bonds (cost $844,656,580) 792,449,358
==============--------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 0.1% (0.1% OF TOTAL INVESTMENTS)
9,219 BlackRock MuniHoldings Fund Inc. $ 110,351
32,332 Morgan Stanley Quality Municipal Income Trust 346,276
----------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $534,262) 456,627
------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments (cost $845,190,842) - 160.0% 792,905,985
------------------------------------------------------------------------------------------------------------------
Nuveen Investments 63
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8% (0.5% OF TOTAL INVESTMENTS)
TENNESSEE - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 3,990 Montgomery County Public Building Authority, Tennessee, 5/09 at 100.00 VMIG-1 $ 3,990,000
Tennessee County Loan Pool Program Revenue Bonds, Variable
Rate Demand Obligations, Series 1997, 0.500%, 11/01/27 (5)
==============--------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,990,000) 3,990,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $849,180,842) - 160.8% 796,895,985
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.0)% (49,300,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 14,673,145
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (53.8)% (6) (266,800,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 495,469,130
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.5%
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
64 Nuveen Investments
NXZ | Nuveen Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 5.2% (3.4% OF TOTAL INVESTMENTS)
$ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 (4) $ 20,397,545
Series 2001A, 5.750%, 6/01/31(Pre-refunded 6/01/11)
-----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,200 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,152,052
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,120 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 2,771,839
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,105 Arkansas Development Finance Authority, Single Family Mortgage 1/12 at 100.00 AAA 1,076,988
Revenue Bonds, GNMA Mortgage-Backed Securities Program,
Series 2002C, 5.400%, 1/01/34 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.9% (7.8% OF TOTAL INVESTMENTS)
9,000 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 4,436,910
Settlement Asset-Backed Bonds, Los Angeles County
Securitization Corporation, Series 2006A, 0.000%, 6/01/36
6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,152,400
Stanford University, Series 2001Q, 5.250%, 12/01/32
4,080 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 AAA 4,098,768
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37 - BHAC Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
1,000 5.000%, 6/01/33 6/17 at 100.00 BBB 639,270
1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 515,710
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,852,450
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
20,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 15,705,800
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - FGIC Insured
6,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 4,549,020
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc. Terminal 4
Project, Series 2002C, 7.500%, 12/01/24 (Alternative
Minimum Tax)
5,000 San Jose, California, Airport Revenue Bonds, Series 2007A, 3/17 at 100.00 A 4,789,700
6.000%, 3/01/47 - AMBAC Insured(Alternative Minimum Tax)
95 Yuba County Water Agency, California, Yuba River Development 9/09 at 100.00 Baa3 92,178
Revenue Bonds, Pacific Gas and Electric Company, Series
1966A, 4.000%, 3/01/16
-----------------------------------------------------------------------------------------------------------------------------------
57,175 Total California 46,832,206
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.4% (5.5% OF TOTAL INVESTMENTS)
2,495 Colorado Educational and Cultural Facilities Authority, 8/11 at 100.00 AAA 2,806,102
Charter School Revenue Bonds, Peak-to-Peak Charter School,
Series 2001, 7.500%, 8/15/21 (Pre-refunded 8/15/11)
3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 AA- 3,376,923
Series 2006, 5.000%, 11/15/24 - FGIC Insured
Nuveen Investments 65
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Denver, Colorado, Airport Revenue Bonds, Trust 2365:
$ 1,340 12.496%, 11/15/23 - FGIC Insured (IF) 11/16 at 100.00 A+ $ 1,437,632
1,085 12.488%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 A+ 1,150,295
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 Aaa 3,088,800
Bonds, Series 2000B, 0.000%, 9/01/28(Pre-refunded
9/01/10) - MBIA Insured
1,280 Eagle County Air Terminal Corporation, Colorado, Airport 5/11 at 101.00 N/R 911,859
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 (UB)
5,000 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 5,481,250
Bonds, Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded
6/15/11) - FSA Insured
Northwest Parkway Public Highway Authority, Colorado, Senior
Lien Revenue Bonds, Series 2001B:
22,000 0.000%, 6/15/28 (Pre-refunded 6/15/11) - FSA Insured 6/11 at 35.65 AAA 7,560,960
17,650 0.000%, 6/15/29 (Pre-refunded 6/15/11) - AMBAC Insured 6/11 at 33.45 A (4) 5,692,302
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 853,400
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
-----------------------------------------------------------------------------------------------------------------------------------
65,905 Total Colorado 33,147,547
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.3% (0.8% OF TOTAL INVESTMENTS)
895 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 844,236
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
5,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 A 4,138,900
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,895 Total District of Columbia 4,983,136
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.5% (3.0% OF TOTAL INVESTMENTS)
15,000 Jacksonville, Florida, Transportation Revenue Bonds, Series 10/11 at 100.00 AA- 15,033,000
2001, 5.250%, 10/01/29 - MBIA Insured
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AA- 2,709,870
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
18,000 Total Florida 17,742,870
-----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.7% (1.8% OF TOTAL INVESTMENTS)
Honolulu Board of Water Supply, Hawaii, Water System Revenue
Bonds, Series 2001:
3,000 5.250%, 7/01/26 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 3,269,190
6,725 5.250%, 7/01/31 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 7,328,434
-----------------------------------------------------------------------------------------------------------------------------------
9,725 Total Hawaii 10,597,624
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.6% (9.0% OF TOTAL INVESTMENTS)
3,560 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 AAA 3,578,690
Revenue Bonds, Stone Terrace Apartments, Series 2001A,
5.750%, 12/20/42 (Alternative Minimum Tax)
815 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 4/11 at 105.00 Aaa 843,574
Mortgage Revenue Bonds, Series 2001A, 6.250%, 10/01/32
(Alternative Minimum Tax)
5,000 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 1,298,650
Series 1999, 0.000%, 1/01/34 - FGIC Insured
3,985 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AA- 3,996,477
5.250%, 1/01/33 - MBIA Insured
5,285 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AA (4) 5,710,178
5.250%, 1/01/33 (Pre-refunded1/01/11) - MBIA Insured
3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago 12/12 at 100.00 BBB (4) 3,680,659
Charter School Foundation, Series 2002A, 6.250%, 12/01/32
(Pre-refunded 12/01/12)
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 910 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 A $ 914,668
Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32
- AMBAC Insured
4,090 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 A (4) 4,464,194
Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32
(Pre-refunded 9/01/11) - AMBAC Insured
3,100 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 AAA 3,413,565
Midwestern University, Series 2001B, 6.000%, 5/15/31
(Pre-refunded 5/15/11)
9,450 Illinois Finance Authority, Revenue Bonds, Palos Community 5/17 at 100.00 AA- 7,365,519
Hospital, Series 2007A, 5.000%,5/15/32 - MBIA Insured
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 5,370,950
Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34
(Pre-refunded 2/15/11) - FSA Insured
2,500 Illinois Housing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,361,600
Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative
Minimum Tax)
2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/15/16 6/11 at 100.00 AAA 2,440,438
2,500 Kane & DeKalb Counties, Illinois, Community United School No Opt. Call A3 1,189,425
District 301, General Obligation Bonds, Series 2006,
0.000%, 12/01/23 - MBIA Insured
4,980 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/09 at 100.00 A 4,981,444
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 5.250%, 6/15/27 - AMBAC Insured
960 Montgomery, Illinois, Lakewood Creek Project Special 3/16 at 100.00 BBB+ 664,886
Assessment Bonds, Series 2007, 4.700%,3/01/30 - RAAI Insured
3,360 Northfield Township High School District 225, Cook County, 12/16 at 69.01 AAA 1,511,160
Illinois, Glenbrook, General Obligation School Bonds,
Series 2007B, 0.000%, 12/01/24
-----------------------------------------------------------------------------------------------------------------------------------
60,950 Total Illinois 53,786,077
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.4% (2.3% OF TOTAL INVESTMENTS)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 BBB 1,338,240
Bonds, Methodist Hospitals Inc., Series 2001, 5.500%,
9/15/31
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,855,700
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 4,144,400
Bonds, Series 2003A, 5.000%,6/01/23 - FSA Insured
6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/09 at 102.00 BBB- 5,181,828
Madison Center Inc., Series 1999, 5.800%, 2/15/24
-----------------------------------------------------------------------------------------------------------------------------------
14,600 Total Indiana 13,520,168
-----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 N/R (4) 1,136,950
Revenue Bonds, Wartburg College, Series 2002, 5.500%,
10/01/28 (Pre-refunded 10/01/12) - ACA Insured
6,340 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 4,366,295
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
-----------------------------------------------------------------------------------------------------------------------------------
7,340 Total Iowa 5,503,245
-----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 4.2% (2.8% OF TOTAL INVESTMENTS)
17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 16,690,770
Improvement Bonds, Via Christi Health System Inc., Series
2001-III, 5.625%, 11/15/31
-----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,033,880
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/38 - AGC Insured
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 67
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.2% (2.8% OF TOTAL INVESTMENTS)
$ 3,960 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AA $ 3,543,170
2006A, 4.500%, 5/01/41 - FGIC Insured (UB)
18,825 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 13,244,329
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
-----------------------------------------------------------------------------------------------------------------------------------
22,785 Total Louisiana 16,787,499
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.3% (2.2% OF TOTAL INVESTMENTS)
15,585 Massachusetts Turnpike Authority, Metropolitan Highway System 7/09 at 100.00 AA- 12,928,069
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 12.4% (8.2% OF TOTAL INVESTMENTS)
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 2001A:
20,000 5.500%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 A (4) 22,010,200
15,390 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 16,543,327
4,000 Michigan Municipal Bond Authority, Public School Academy 10/09 at 102.00 Ba1 3,361,760
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 8/09 at 100.00 BB 1,533,160
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 8/09 at 100.00 BB 1,928,140
4,000 6.500%, 8/15/18 8/09 at 100.00 BB 3,413,360
-----------------------------------------------------------------------------------------------------------------------------------
47,390 Total Michigan 48,789,947
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.2% (3.4% OF TOTAL INVESTMENTS)
5,000 City of Minneapolis, Minnesota, Health Care System Revenue 11/18 at 100.00 AAA 5,436,850
Bonds, Fairview Health Services,
Series 2008B, 6.500%, 11/15/38 - AGC Insured
14,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 14,995,820
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%,
1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,000 Total Minnesota 20,432,670
-----------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,400 Montana Board of Housing, Single Family Program Bonds, Series 12/10 at 100.00 AA+ 2,400,576
2001A-2, 5.700%, 6/01/32(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.0% (1.3% OF TOTAL INVESTMENTS)
12,275 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 A 3,692,811
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 245,000
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40 (6)
2,000 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/17 at 100.00 AAA 2,164,520
Bonds, Catholic Healthcare West, Series 2007B, Trust 2633,
16.277%, 7/01/31 - BHAC Insured (IF)
1,750 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA 1,659,350
Healthcare West, Trust 2634, 16.017%,7/01/31 - BHAC Insured
(IF)
-----------------------------------------------------------------------------------------------------------------------------------
19,525 Total Nevada 7,761,681
-----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.3% (1.5% OF TOTAL INVESTMENTS)
8,000 New Hampshire Business Finance Authority, Pollution Control 10/09 at 101.50 Baa1 7,748,480
Remarketed Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1992A, 5.850%, 12/01/22
1,160 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 1,161,508
Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
9,160 Total New Hampshire 8,909,988
-----------------------------------------------------------------------------------------------------------------------------------
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5% (1.7% OF TOTAL INVESTMENTS)
$ 3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B $ 2,803,571
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
385 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 416,104
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,200 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,541,264
425 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 511,084
3,085 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,649,092
----------------------------------------------------------------------------------------------------------------------------------
10,090 Total New Jersey 9,921,115
----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 6.3% (4.2% 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) 13,137,960
10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 11,824,164
----------------------------------------------------------------------------------------------------------------------------------
22,800 Total New Mexico 24,962,124
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.1% (6.6% OF TOTAL INVESTMENTS)
1,300 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A3 1,333,020
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.625%, 7/01/19
3,600 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A3 (4) 3,856,500
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.625%, 7/01/19 (Pre-refunded 7/01/10)
6,000 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 AAA 6,529,080
Revenue Bonds, Series 2001L, 5.375%, 5/01/33 (Pre-refunded
5/01/11)
12,800 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA 11,803,904
Transportation Revenue Bonds, Series 2009, 4.500%,
11/15/32 - FSA Insured (UB)
5,000 New York City Industrial Development Agency, New York, Special 8/12 at 101.00 B- 4,117,450
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 AAA 12,097,440
Water and Sewerage System Revenue Bonds, Series 2001C,
5.125%, 6/15/33 (UB)
----------------------------------------------------------------------------------------------------------------------------------
40,700 Total New York 39,737,394
----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.8% (1.2% OF TOTAL INVESTMENTS)
2,950 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 N/R 2,407,259
Bonds, Johnson and Wales University, Series 2003A, 5.000%,
4/01/33 - SYNCORA GTY Insured
4,500 North Carolina Eastern Municipal Power Agency, Power System 7/09 at 102.00 BBB+ 4,590,360
Revenue Refunding Bonds, Series 1999B, 5.600%, 1/01/15
----------------------------------------------------------------------------------------------------------------------------------
7,450 Total North Carolina 6,997,619
----------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,850 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 1,757,056
Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.8% (1.2% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
10,000 5.750%, 6/01/34 6/17 at 100.00 BBB 6,331,100
1,000 5.875%, 6/01/47 6/17 at 100.00 BBB 561,770
----------------------------------------------------------------------------------------------------------------------------------
11,000 Total Ohio 6,892,870
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 69
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 2,655 Oklahoma Development Finance Authority, Revenue Refunding 8/09 at 101.00 AAA $ 2,713,755
Bonds, Hillcrest Healthcare System, Series 1999A, 5.125%,
8/15/10 (Pre-refunded 8/15/09)
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.4% (2.2% OF TOTAL INVESTMENTS)
8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 A+ 8,168,320
Refunding Bonds, Legacy Health System, Series 2001,
5.250%, 5/01/21
5,000 Oregon Department of Administrative Services, Certificates of 5/11 at 101.00 AA- 5,044,350
Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
13,000 Total Oregon 13,212,670
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.7% (2.4% OF TOTAL INVESTMENTS)
5,000 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 5,729,200
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B, 9.250%, 11/15/30 (Pre-refunded
11/15/10)
585 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 587,153
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 AA- 8,140,800
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
-----------------------------------------------------------------------------------------------------------------------------------
13,585 Total Pennsylvania 14,457,153
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 26.7% (17.6% OF TOTAL INVESTMENTS)
7,500 Austin, Texas, Electric Utility System Revenue Refunding 11/10 at 100.00 AAA 7,521,900
Bonds, Series 2001, 5.000%,11/15/30 - FSA Insured
10,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AA- 7,346,900
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC 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 7/09 at 100.00 AAA 14,736,900
1,750 5.200%, 1/15/31 - FSA Insured 7/09 at 100.00 AAA 1,637,528
6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 4,608,120
Regional Health System, Series 2004A, 7.125%, 9/01/34
10,000 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Baa3 9,361,900
Waste Disposal Revenue Bonds, Citgo Petroleum Corporation
Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum
Tax)
30,980 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AA- 24,386,836
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 AA- 3,494,400
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 -
MBIA Insured
3,965 Harris County-Houston Sports Authority, Texas, Third Lien 11/24 at 52.47 AA- 508,472
Revenue Bonds, Series 2004-A3., 0.000%, 11/15/35 - 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 4,464,083
12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 5,069,763
Houston, Texas, Hotel Occupancy Tax and Special Revenue
Bonds, Convention and Entertainment Project, Series 2001B:
5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call A 1,366,550
5,540 0.000%, 9/01/31 - AMBAC Insured No Opt. Call A 1,417,409
5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100.00 Ba3 3,960,050
Hospital Revenue Bonds, Wilson N. Jones Memorial Hospital,
Series 2001, 7.250%, 1/01/31
3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 2,464,001
Financing Corporation, Revenue Bonds, Series 2007,
Residuals 1760-3, 15.896%, 2/15/36 (IF)
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 10,500 Texas, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aa1 $ 10,747,800
Program, Series 2001, 5.250%, 8/01/35
2,000 Tom Green County Health Facilities Development Corporation, 5/11 at 101.00 Baa3 1,917,400
Texas, Hospital Revenue Bonds, Shannon Health System
Project, Series 2001, 6.750%, 5/15/21
-----------------------------------------------------------------------------------------------------------------------------------
180,185 Total Texas 105,010,012
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.5% (3.0% OF TOTAL INVESTMENTS)
7,250 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 7,276,535
Refunding and Improvement Bonds, Series 2001, 5.125%,
3/01/26 - FSA Insured
7,500 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AA 7,591,800
Bonds, Sisters of Providence Health System, Series 2001A,
5.250%, 10/01/21 - MBIA Insured
900 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 867,618
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
2,100 Washington, Certificates of Participation, Washington 7/09 at 100.00 AA 2,110,563
Convention and Trade Center, Series 1999, 5.125%,
7/01/13 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
17,750 Total Washington 17,846,516
-----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,847,600
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Wisconsin Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 1,164,650
Revenue Bonds, Divine Savior Healthcare, Series 2002A,
7.375%, 5/01/26 (Pre-refunded 5/01/12)
-----------------------------------------------------------------------------------------------------------------------------------
$ 745,425 Total Investments (cost $614,300,196) - 151.6% 596,766,911
==============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.9)% (19,385,000)
------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value - (196,000,000)
(49.8)% (5)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 12,271,611
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 393,653,522
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 32.8%
(6) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations in their entirety and has directed the
Fund's custo- dian to cease accruing additional income on the Fund's
records.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 71
NZF | Nuveen Dividend Advantage Municipal Fund 3
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 154.7% (99.8% OF TOTAL INVESTMENTS)
ALABAMA - 1.8% (1.2% OF TOTAL INVESTMENTS)
$ 3,500 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 3,408,125
Bonds, Ascension Health, Series 200C-2, 5.000%, 11/15/36
(UB)
5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 AA (4) 6,140,765
Department Facilities, Series 2001, 5.250%, 10/01/26
(Pre-refunded 10/01/11) - AMBAC Insured (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
9,155 Total Alabama 9,548,890
-----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 523,660
Settlement Asset-Backed Bonds, Series 2006A, 5.000%,
6/01/46
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,390 Arizona State Transportation Board, Highway Revenue Bonds, 7/18 at 100.00 AAA 3,655,776
Series 2006, Trust 3151, 12.824%, 7/01/33 (IF)
2,200 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 1,491,358
Bonds, Series 2007, 5.000%,12/01/37
-----------------------------------------------------------------------------------------------------------------------------------
5,590 Total Arizona 5,147,134
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6% (0.4% OF TOTAL INVESTMENTS)
Sebastian County Health Facilities Board, Arkansas, Hospital
Revenue Improvement Bonds, Sparks Regional Medical Center,
Series 2001A:
1,805 5.500%, 11/01/13 11/11 at 101.00 Caa1 1,605,548
1,900 5.500%, 11/01/14 11/11 at 101.00 Caa1 1,634,418
-----------------------------------------------------------------------------------------------------------------------------------
3,705 Total Arkansas 3,239,966
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.8% (8.2% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Health
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A:
855 5.000%, 3/01/28 3/13 at 100.00 A 709,462
140 5.000%, 3/01/33 3/13 at 100.00 A 112,130
950 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 898,344
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.644%, 11/15/42 (IF)
5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 4,661,300
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
5,355 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 4,887,082
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.216%, 11/15/48 (IF)
18,850 California, General Obligation Veterans Welfare Bonds, Series 6/09 at 100.00 AA- 18,127,855
2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative
Minimum Tax)
11,865 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 6,118,899
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
Los Angeles Regional Airports Improvement Corporation,
California, Lease Revenue Refunding
Bonds, LAXFUEL Corporation at Los Angeles International
Airport, Series 2001:
13,955 5.750%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 14,257,824
5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 4,950,500
1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 1,439,130
10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 9,267,400
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 10,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AA- $ 1,313,800
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 Aa1 890,220
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
86,470 Total California 67,633,946
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.6% (3.6% OF TOTAL INVESTMENTS)
2,250 Canterberry Crossing Metropolitan District II, Parker, 12/12 at 100.00 N/R (4) 2,632,793
Colorado, Limited Tax General Obligation Bonds, Series
2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12)
1,565 Colorado Educational and Cultural Facilities Authority, 3/13 at 100.00 N/R (4) 1,859,658
Charter School Revenue Bonds, Belle Creek Education
Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded
3/15/13)
3,160 Colorado Educational and Cultural Facilities Authority, 3/10 at 102.00 N/R (4) 3,384,518
Charter School Revenue Bonds, Montessori Peaks Building
Foundation, Series 2002A, 8.000%, 5/01/32 (Pre-refunded
3/01/10)
1,775 Colorado Educational and Cultural Facilities Authority, 6/11 at 100.00 Ba1 (4) 1,997,408
Charter School Revenue Bonds, Weld County School District
6 - Frontier Academy, Series 2001, 7.375%,
6/01/31(Pre-refunded 6/01/11)
3,465 Colorado Educational and Cultural Facilities Authority, 5/16 at 102.00 N/R 2,394,973
Revenue Bonds, Montessori Peaks Academy, Series 2006,
5.400%, 5/01/26
3,380 Colorado Housing Finance Authority, Multifamily Project 10/11 at 100.00 AAA 3,324,906
Bonds, Class I, Series 2001A-1, 5.500%, 4/01/31
(Alternative Minimum Tax)
5,000 Compark Business Campus Metropolitan District, Colorado, 12/17 at 100.00 BBB+ 3,968,150
General Obligation Limited Tax Bonds, Series 2007, 5.600%,
12/01/34 - RAAI Insured
3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 AA- 3,376,923
Series 2006, 5.000%, 11/15/24 - FGIC Insured
2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AA- 2,028,260
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC
Insured (Alternative Minimum Tax)
Denver, Colorado, Airport Revenue Bonds, Trust 2365:
1,340 12.496%, 11/15/23 - FGIC Insured (IF) 11/16 at 100.00 A+ 1,437,632
1,085 12.488%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 A+ 1,150,295
2,000 Maher Ranch Metropolitan District 4, Colorado, General 12/17 at 100.00 A3 1,493,340
Obligation Limited Tax Bonds, Series 2007, 5.250%,
12/01/36 - RAAI Insured
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 853,400
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
-----------------------------------------------------------------------------------------------------------------------------------
31,320 Total Colorado 29,902,256
-----------------------------------------------------------------------------------------------------------------------------------
DELAWARE - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,595 Delaware Housing Authority, Multifamily Mortgage Revenue 7/12 at 100.00 Aa3 1,638,049
Bonds, Series 2001A, 5.400%, 7/01/24
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,375 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 A 1,391,816
America, Series 1999, 5.625%,10/01/29 - AMBAC Insured
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,114,271
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 10.676%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 AAA 2,783,591
Revenue Bonds, Residual Series 1730, 1731, 1736, 10.633%,
10/01/30 - AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
6,045 Total District of Columbia 5,289,678
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 73
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.4% (1.6% OF TOTAL INVESTMENTS)
Orange County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
$ 1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA $ 1,065,010
2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,104,632
4,175 Pace Property Finance Authority Inc., Florida, Utility System 9/09 at 100.00 A 4,215,623
Improvement and Revenue Refunding Bonds, Series 1997,
5.250%, 9/01/17 - AMBAC Insured
5,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 4,778,471
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
1,000 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R 677,530
Assessment Bonds, Series 2007, 6.650%, 5/01/40
-----------------------------------------------------------------------------------------------------------------------------------
13,930 Total Florida 12,841,266
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.5% (1.6% OF TOTAL INVESTMENTS)
5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/10 at 101.00 AA- 4,650,600
2000B, 5.625%, 1/01/30 - FGIC Insured(Alternative Minimum
Tax)
2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station 12/11 at 101.00 AAA 3,190,077
Project, Series 2001, 7.900%,12/01/24 (Pre-refunded
12/01/11)
2,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 1,088,120
Revenue Bonds, Elderly Care, Lenbrook Square Project,
Series 2006A, 5.125%, 7/01/42
3,740 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- (4) 4,060,294
Revenue Anticipation Certificates, Northeast Georgia
Health Services Inc., Series 2001, 5.500%, 5/15/31
(Pre-refunded 5/15/11)
500 Gainesville Redevelopment Authority, Georgia, Educational 3/17 at 100.00 N/R 250,885
Facilities Revenue Bonds, Riverside Military Academy
Project, Series 2007, 5.125%, 3/01/37
-----------------------------------------------------------------------------------------------------------------------------------
13,940 Total Georgia 13,239,976
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.0% (10.3% OF TOTAL INVESTMENTS)
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/11 at 101.00 AAA 8,423,826
2001A, 5.500%, 1/01/19 - FSA Insured(Alternative Minimum
Tax)
1,600 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/09 at 101.00 AAA 1,608,528
5.250%, 1/01/28 - FGIC Insured
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A1 4,422,776
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
2,220 Chicago, Illinois, Second Lien Wastewater Transmission No Opt. Call AA- 2,503,050
Revenue Bonds, Series 2001A, 5.500%,1/01/16 - MBIA Insured
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 11/11 at 100.00 Aa3 (4) 10,935,500
2001, 5.000%, 11/01/26(Pre-refunded 11/01/11) - AMBAC
Insured
1,165 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AA- 1,130,318
O'Hare International Airport, Series 2005A, 5.000%,
1/01/33 - FGIC Insured
2,415 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 A3 2,440,671
Certificates, Local Government Program - Kankakee County,
Series 2005B, 5.000%, 12/01/24 - AMBAC Insured
3,385 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 Baa1 2,307,487
Systems, Series 2007A, 5.500%, 8/01/37
1,130 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Aaa 1,208,501
Medical Center, Series 2000, 6.500%, 5/15/30 (Pre-refunded
5/15/10)
9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB 6,755,670
Retirement Communities Inc., Series 2001, 5.875%, 12/01/31
15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa2 (4) 16,351,950
University Health System, Series 2001A, 6.125%, 7/01/31
(Pre-refunded 7/01/11)
5,000 Lake County School District 38, Big Hallow, Illinois, General No Opt. Call N/R 2,546,300
Obligation Bonds, Series 2005, 0.000%, 2/01/22 - AMBAC
Insured
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 7,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R $ 4,691,890
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 17,063,759
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 2,085,660
Refunding Bonds, McCormick Place Expansion Project, Series
1998A, 5.500%, 6/15/29 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
90,140 Total Illinois 84,475,886
----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.2% (4.0% OF TOTAL INVESTMENTS)
Clark-Pleasant Community School Building Corporation,
Indiana, First Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AA+ (4) 1,379,923
1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AA+ (4) 1,099,540
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 AA (4) 2,238,900
2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AA (4) 3,032,865
1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 A (4) 1,378,575
Corporation, Indiana, First Mortgage Bonds, Series 2001,
5.125%, 1/15/23 (Pre-refunded 1/15/12) - AMBAC Insured
9,500 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AA- 9,527,360
Butler University, Series 2001, 5.500%, 2/01/26 - MBIA
Insured
4,230 Indiana Finance Authority, Educational Facilities Revenue 6/15 at 100.00 Aa3 4,260,710
Bonds, Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 A 2,014,152
Community Hospitals of Indiana, Series 2005A, 5.000%,
5/01/35 - AMBAC Insured
3,500 University of Southern Indiana, Student Fee Bonds, Series 10/11 at 100.00 A2 3,552,395
2001H, 5.000%, 10/01/21 - AMBAC Insured
Vigo County, Indiana, Hospital Authority, Union Hospital,
Revenue Bonds, Series 2007:
2,500 5.750%, 9/01/42 9/17 at 100.00 N/R 1,634,825
2,500 5.800%, 9/01/47 9/17 at 100.00 N/R 1,622,050
1,090 Wayne County Jail Holding Corporation, Indiana, First 1/13 at 101.00 A (4) 1,257,838
Mortgage Bonds, Series 2001, 5.500%,7/15/22 (Pre-refunded
1/15/13) - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
34,375 Total Indiana 32,999,133
----------------------------------------------------------------------------------------------------------------------------------
IOWA - 7.0% (4.5% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River 5/11 at 100.00 Aa3 1,854,700
Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured
1,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 564,850
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
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 30,106,717
3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,302,577
----------------------------------------------------------------------------------------------------------------------------------
34,950 Total Iowa 36,828,844
----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2% (0.2% OF TOTAL INVESTMENTS)
Manhattan Health Care Facility Revenue Bonds, Kansas,
Meadowlarks Hills Retirement, Series 2007B:
1,000 5.125%, 5/15/37 5/14 at 103.00 N/R 660,810
1,000 5.125%, 5/15/42 5/14 at 103.00 N/R 643,860
----------------------------------------------------------------------------------------------------------------------------------
2,000 Total Kansas 1,304,670
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 75
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.7% (2.4% OF TOTAL INVESTMENTS)
$ 1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA $ 1,030,640
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/42 - AGC Insured
18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AA- 18,585,098
Kentucky, Sewer and Drainage System Revenue Bonds, Series
2001A, 5.125%, 5/15/27 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,500 Total Kentucky 19,615,738
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.6% (2.3% OF TOTAL INVESTMENTS)
3,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB+ 2,103,150
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
3,700 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 2,764,492
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 13,993,610
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
-----------------------------------------------------------------------------------------------------------------------------------
26,590 Total Louisiana 18,861,252
-----------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.2% (0.8% 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+ 4,638,259
1,610 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,572,584
-----------------------------------------------------------------------------------------------------------------------------------
6,220 Total Maine 6,210,843
-----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,000 Howard County, Maryland, Retirement Community Revenue Bonds, 4/17 at 100.00 N/R 550,950
Vantage House, Series 2007B, 5.250%, 4/01/37
1,570 Maryland Community Development Administration, Insured 7/11 at 100.00 Aa2 1,580,425
Multifamily Housing Mortgage Loan Revenue Bonds, Series
2001B, 5.250%, 7/01/21 (Alternative Minimum Tax)
2,000 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 1,027,360
Chesapeake Bay Hyatt Conference Center, Series 2006A,
5.000%, 12/01/31
10,600 Maryland Energy Financing Administration, Revenue Bonds, AES 6/09 at 100.00 N/R 8,087,164
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
555 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 377,733
Revenue Bonds, Mercy Ridge Retirement Community, Series
2007, 4.750%, 7/01/34
-----------------------------------------------------------------------------------------------------------------------------------
15,725 Total Maryland 11,623,632
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.4% (1.5% OF TOTAL INVESTMENTS)
1,375 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 863,184
Orchard Cove, Series 2007, 5.250%, 10/01/26
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 539,610
Revenue Bonds, Milton Hospital Project, Series 2005D,
5.250%, 7/01/30
4,860 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 4,640,425
Revenue Bonds, Series 2008, Trust 3145, 14.677%, 6/01/39
(IF)
5,000 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 A 3,359,250
Bonds, Delta Air Lines Inc., Series 2001A, 5.500%,
1/01/18 - AMBAC Insured (Alternative Minimum Tax)
3,465 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,073,524
Bonds, Series 2007A, 4.500%,8/01/46 - FSA Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
15,700 Total Massachusetts 12,475,993
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 10.1% (6.5% OF TOTAL INVESTMENTS)
15,000 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 15,735,600
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 6.000%, 5/01/29 - FSA Insured (UB)
2,000 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 1,107,020
Bonds, Garden City Hospital Obligated Group, Series 2007A,
5.000%, 8/15/38
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) $ 12,121,120
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 A+ 1,326,551
Program, Series 2001I, 5.500%, 10/15/18
1,355 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 100.00 BB 883,663
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 AA- (4) 3,818,933
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 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 1,563,646
2,500 5.625%, 11/15/31 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 2,800,000
3,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 3,279,360
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AA- 10,783,690
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
54,115 Total Michigan 53,419,583
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,260 Dakota County Community Development Agency, Minnesota, GNMA 10/11 at 105.00 Aaa 2,285,357
Collateralized Multifamily Housing Revenue Bonds, Rose
Apartments Project, Series 2001, 6.350%, 10/20/37
(Alternative Minimum Tax)
1,375 Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, 8/16 at 100.00 N/R 756,154
Regions Hospital Parking Ramp Project, Series 2007-1,
5.000%, 8/01/36
-----------------------------------------------------------------------------------------------------------------------------------
3,635 Total Minnesota 3,041,511
-----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/09 at 103.00 AAA 2,108,818
Retirement Facility Mortgage Revenue Refunding Bonds,
Aldersgate Retirement Community Inc. Project, Series
1999A, 5.450%, 5/20/34
3,000 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,987,070
Revenue Bonds, Baptist Memorial Healthcare, Series 2004,
5.000%, 9/01/24 (UB)
-----------------------------------------------------------------------------------------------------------------------------------
5,155 Total Mississippi 5,095,888
-----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.2% (2.1% OF TOTAL INVESTMENTS)
1,495 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,092,800
Missouri, Health Facilities Revenue Bonds, Southeast
Missouri Hospital Association, Series 2007, 5.000%, 6/01/36
1,000 Clinton County Industrial Development Authority, Missouri, 12/17 at 100.00 N/R 572,330
Revenue Bonds, Cameron Regional Medical Center, Series
2007, 5.000%, 12/01/32
1,825 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R (4) 2,091,815
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 AA- 3,494,847
3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AA- 3,678,234
3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AA- 3,864,046
2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AA- 2,109,095
-----------------------------------------------------------------------------------------------------------------------------------
16,900 Total Missouri 16,903,167
-----------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B- 3,439,100
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 77
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Nebraska Investment Finance Authority, Single Family Housing
Revenue Bonds, Series 2001D:
$ 1,835 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA $ 1,806,741
2,450 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,440,127
1,005 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 1,443,361
System Revenue Bonds, Nebraska City2, Series 2006A, Trust
11673, 17.921%, 2/01/49 - AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
5,290 Total Nebraska 5,690,229
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 A 601,680
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 280,000
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40 (6)
190 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/09 at 100.75 Aaa 191,687
Series 1998A-1, 5.300%, 4/01/18(Alternative Minimum Tax)
4,290 University of Nevada, Revenue Bonds, Community College System, 1/12 at 100.00 AA- (4) 4,739,678
Series 2001A, 5.250%, 7/01/26(Pre-refunded 1/01/12) - FGIC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,480 Total Nevada 5,813,045
-----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,000 New Hampshire Health and Education Authority, Hospital Revenue 10/11 at 101.00 Aa3 2,057,300
Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 -
FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.8% (2.4% OF TOTAL INVESTMENTS)
10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 Baa1 8,133,900
Revenue Bonds, American Water Company, Series 2002A,
5.250%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax)
495 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 258,553
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call A1 4,498,395
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/13 - AMBAC Insured
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 6,256,600
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
2,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,084,400
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%,
6/01/34
----------------------------------------------------------------------------------------------------------------------------------
36,620 Total New Jersey 20,231,848
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.0% (2.6% OF TOTAL INVESTMENTS)
900 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 595,917
Brighter Choice Charter Schools, Series 2007A, 5.000%,
4/01/32
1,780 East Rochester Housing Authority, New York, GNMA Secured 10/11 at 101.00 AAA 1,782,777
Revenue Bonds, Gates Senior Housing Inc., Series 2001,
5.300%, 4/20/31
5,010 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA- 3,822,279
Bonds, Series 2006A, 4.500%,2/15/47 - MBIA Insured
4,155 Monroe County Airport Authority, New York, Revenue Refunding No Opt. Call AA- 4,303,001
Bonds, Greater Rochester International Airport, Series
1999, 5.750%, 1/01/13 - MBIA Insured (Alternative Minimum
Tax)
8,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 6,022,640
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
1,715 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 1,783,326
Series 2002G, 5.625%, 8/01/20 - MBIA Insured
785 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 Aa3 (4) 896,148
Series 2002G, 5.625%, 8/01/20(Pre-refunded 8/01/12) - MBIA
Insured
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 2,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- $ 2,064,660
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
-----------------------------------------------------------------------------------------------------------------------------------
24,345 Total New York 21,270,748
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.3% (0.9% OF TOTAL INVESTMENTS)
2,475 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,228,540
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149, 9.538%, 1/15/47 (IF)
1,200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 1,162,824
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
1,750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA- (4) 2,004,030
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
1,600 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call A2 1,746,080
Revenue Bonds, Series 2003A, 5.500%, 1/01/13
-----------------------------------------------------------------------------------------------------------------------------------
7,025 Total North Carolina 7,141,474
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.2% (1.4% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
3,400 5.125%, 6/01/24 6/17 at 100.00 BBB 2,679,472
710 5.875%, 6/01/30 6/17 at 100.00 BBB 481,579
685 5.750%, 6/01/34 6/17 at 100.00 BBB 433,680
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 881,979
1,345 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/09 at 100.75 Aaa 1,331,093
Program Residential Mortgage Revenue Bonds, Series 1998A-1,
5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax)
6,900 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 5,864,517
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
14,610 Total Ohio 11,672,320
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.5% (1.6% OF TOTAL INVESTMENTS)
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
4,930 5.000%, 2/15/37 2/17 at 100.00 A 4,290,727
955 5.000%, 2/15/42 2/17 at 100.00 A 810,260
2,500 Oklahoma Development Finance Authority, Revenue Refunding 8/09 at 101.00 AAA 2,558,950
Bonds, Hillcrest Healthcare System, Series 1999A, 5.625%,
8/15/29 (Pre-refunded 8/15/09)
6,305 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 5,406,474
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
88 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 65,175
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.325%, 12/15/36 (IF)
-----------------------------------------------------------------------------------------------------------------------------------
14,778 Total Oklahoma 13,131,586
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.8% (1.8% OF TOTAL INVESTMENTS)
4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AA- 4,814,257
Authority, Revenue Bonds, PeaceHealth Project, Series 2001,
5.250%, 11/15/21 - AMBAC Insured
10,000 Oregon Housing and Community Services Department, Multifamily 7/10 at 100.00 Aaa 10,028,000
Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42
(Alternative Minimum Tax) (UB)
-----------------------------------------------------------------------------------------------------------------------------------
14,700 Total Oregon 14,842,257
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.1% (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 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 2,291,680
2,000 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 2,291,680
Nuveen Investments 79
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB $ 316,320
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,500 Pennsylvania Economic Development Financing Authority, Senior 7/09 at 100.00 B- 2,611,665
Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.600%, 1/01/19
(Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 3,635,688
Obligation Bonds, Series 2002B, 5.625%,8/01/16
(Pre-refunded 8/01/12) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,205 Total Pennsylvania 11,147,033
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 A+ 2,107,200
Revenue Bonds, Series 2007A, 5.250%, 8/01/57
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS)
6,850 South Carolina Transportation Infrastructure Bank, Revenue 10/11 at 100.00 A1 (4) 7,570,209
Bonds, Series 2001A, 5.500%,10/01/22 (Pre-refunded
10/01/11) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.7% (1.1% OF TOTAL INVESTMENTS)
3,680 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- 351,698
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2006, 0.000%, 1/01/41
5,210 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 5,309,407
Revenue Bonds, Series 2001A, 5.500%, 3/01/14 - FSA Insured
(Alternative Minimum Tax)
275 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 168,187
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
800 5.500%, 11/01/37 11/17 at 100.00 N/R 406,328
2,800 5.500%, 11/01/46 11/17 at 100.00 N/R 1,380,428
745 Tennessee Housing Development Agency, Homeownership Program 7/09 at 101.00 AA 746,006
Bonds, Series 1998-2, 5.350%,7/01/23 (Alternative Minimum
Tax)
760 Tennessee Housing Development Agency, Homeownership Program 7/11 at 100.00 AA 762,721
Bonds, Series 2001-3A, 5.200%,7/01/22 (Alternative Minimum
Tax)
-----------------------------------------------------------------------------------------------------------------------------------
14,270 Total Tennessee 9,124,775
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 20.9% (13.5% OF TOTAL INVESTMENTS)
5,445 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 4,925,057
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
1,125 Brushy Creek Municipal Utility District, Williamson County, 6/09 at 100.00 Aa3 1,125,405
Texas, Combination Unlimited Tax and Revenue Refunding
Bonds, Series 2001, 5.125%, 6/01/26 - FSA Insured
Collins and Denton Counties, Frisco, Texas, General
Obligation Bonds, Series 2001:
1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AA 1,965,619
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AA 2,059,877
3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AA- 3,615,497
Refunding and Improvement Bonds, Series 2001A, 5.500%,
11/01/35 - FGIC Insured (Alternative Minimum Tax)
5,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 4,055,150
Regional Health System, Series 2004A, 7.000%, 9/01/25
4,040 Harris County, Texas, Tax and Revenue Certificates of 8/11 at 100.00 AAA 4,099,065
Obligation, Series 2001, 5.000%, 8/15/27
6,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AA (4) 7,033,800
Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - MBIA
Insured (ETM)
7,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/09 at 100.00 AA- 7,005,180
Bonds, Series 1998B, 5.250%, 7/01/14 - FGIC Insured
(Alternative Minimum Tax)
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Houston, Texas, Subordinate Lien Airport System Revenue
Refunding Bonds, Series 2001A:
$ 2,525 5.500%, 7/01/13 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AA- $ 2,595,347
2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AA- 2,960,631
14,200 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 13,710,242
General Obligation Bonds, Series 2007A, 4.750%, 8/01/43
(UB)
Jefferson County Health Facilities Development Corporation,
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist
Hospital of Southeast Texas, Series 2001:
8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 A 8,322,435
8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 A 7,780,985
10,700 Laredo Independent School District, Webb County, Texas, 8/11 at 100.00 AAA 10,919,350
General Obligation Refunding Bonds, Series 2001, 5.000%,
8/01/25
2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call A 1,970,750
Revenue Refunding Bonds, Houston Light and Power Company,
Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative
Minimum Tax)
3,150 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 2,976,845
Refunding Bonds, Series 2008, 5.750%, 1/01/38
3,045 Port of Houston Authority, Harris County, Texas, General 10/11 at 100.00 AAA 3,128,342
Obligation Port Improvement Bonds, Series 2001B, 5.500%,
10/01/17 - FGIC Insured (Alternative Minimum Tax)
7,700 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 7,214,515
Financing Corporation, Texas, Revenue Bonds, Series 2007A,
5.000%, 2/15/36 (UB)
9,840 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 9,209,256
Residential Mortgage Revenue Bonds, Series 2001A, 5.350%,
7/01/33 (Alternative Minimum Tax)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/37 8/15 at 31.98 AAA 1,758,230
9,110 0.000%, 8/15/40 8/15 at 27.11 AAA 1,476,822
7,110 0.000%, 8/15/44 8/15 at 21.88 AAA 905,316
-----------------------------------------------------------------------------------------------------------------------------------
135,270 Total Texas 110,813,716
-----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6% (0.4% OF TOTAL INVESTMENTS)
Utah Housing Corporation, Single Family Mortgage Bonds,
Series 2001E:
1,030 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 993,909
275 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 274,324
Utah Housing Corporation, Single Family Mortgage Bonds,
Series 2001F-1:
1,465 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 1,465,176
385 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 380,180
-----------------------------------------------------------------------------------------------------------------------------------
3,155 Total Utah 3,113,589
-----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 641,410
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.375%, 12/01/28
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 17.3% (11.1% 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 A1 1,014,970
2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 A1 2,013,260
Nuveen Investments 81
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 12,955 Port of Seattle, Washington, Passenger Facility Charge 6/09 at 101.00 A $ 12,991,404
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 Aa2 2,566,155
(UB)
16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum Tax) 7/09 at 100.00 Aa2 15,306,720
(UB)
2,090 Public Utility District 1, Benton County, Washington, 11/11 at 100.00 AAA 2,273,523
Electric Revenue Refunding Bonds, Series 2001A, 5.625%,
11/01/15 - FSA Insured
5,680 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 5,932,646
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 AA (4) 4,998,810
Bonds, Series 2001, 5.250%, 12/01/21(Pre-refunded
12/01/11) - AMBAC Insured
3,720 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aa3 (4) 4,095,348
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.375%, 10/01/18 (Pre-refunded 10/01/11) -
AMBAC Insured
Washington State Healthcare Facilities Authority, Revenue
Bonds, Good Samaritan Hospital, Series 2001:
5,480 5.500%, 10/01/21 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 BBB- (4) 6,102,528
25,435 5.625%, 10/01/31 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 BBB- (4) 28,400,210
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 AA 2,989,554
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AA 2,862,472
-----------------------------------------------------------------------------------------------------------------------------------
87,345 Total Washington 91,547,600
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.9% (3.2% OF TOTAL INVESTMENTS)
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds,
Series 2001:
3,705 5.375%, 1/01/20 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 N/R (4) 4,105,473
1,850 5.000%, 1/01/21 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 N/R (4) 2,031,800
12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/09 at 101.00 A2 12,530,647
Bonds, Dairyland Power Cooperative, Series 1997B, 5.550%,
2/01/15 - AMBAC Insured
1,000 Wisconsin Health and Educational Facilities Authority, 9/17 at 100.00 BBB+ 716,919
Revenue Bonds, Franciscan Sisters of Christian Charity
HealthCare Ministry, Series 2007, 5.000%, 9/01/33
350 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- 348,438
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30
3,650 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- (4) 4,046,353
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded
10/01/11)
2,500 Wisconsin Health and Educational Facilities Authority, 2/12 at 100.00 BBB+ 2,225,849
Revenue Bonds, Marshfield Clinic, Series 2001B, 6.000%,
2/15/25
50 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 30,616
Revenue Bonds, Wheaton Franciscan Services Inc., Series
2003A, 5.125%, 8/15/33
-----------------------------------------------------------------------------------------------------------------------------------
25,355 Total Wisconsin 26,036,095
-----------------------------------------------------------------------------------------------------------------------------------
$ 919,553 Total Municipal Bonds (cost $865,558,314) 819,252,495
==============---------------------------------------------------------------------------------------------------------------------
82 Nuveen Investments
SHARES DESCRIPTION (1) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 0.3% (0.2% OF TOTAL INVESTMENTS)
29,401 BlackRock MuniHoldings Fund Inc. $ 351,930
26,880 Dreyfus Strategic Municipal Fund 187,085
27,920 PIMCO Municipal Income Fund II 251,280
42,020 Van Kampen Investment Grade Municipal Trust 492,054
19,260 Van Kampen Municipal Trust 219,564
-----------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $1,846,128) 1,501,913
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $867,404,442) - 155.0% 820,754,408
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.6)% (66,962,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 12,733,249
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (44.7)% (5) (236,950,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 529,575,657
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 28.9%
(6) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations intheir entirety and has directed the
Fund's custo- dian to cease accruing additional income on the Fund's
records.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 83
| Statement of ASSETS & LIABILITIES April 30, 2009 (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 (cost
$1,294,912,858,
$938,166,767, $979,570,434,
$849,180,842, $614,300,196
and $867,404,442,
respectively) $ 1,271,554,332 $ 894,209,897 $ 931,400,462 $ 796,895,985 $ 596,766,911 $ 820,754,408
Cash -- 143,611 2,073,225 265,375 291,296 107,356
Receivables:
Dividend and interest 19,897,576 16,130,833 15,739,979 13,299,043 11,499,050 15,581,878
Investments sold 8,241,336 575,000 1,450,000 4,045,000 660,000 --
Deferred offering costs -- -- -- -- 2,214,659 --
Other assets 235,063 165,360 192,574 140,994 37,633 139,159
----------------------------------------------------------------------------------------------------------------------------------
Total assets 1,299,928,307 911,224,701 950,856,240 814,646,397 611,469,549 836,582,801
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 2,456,841 -- -- -- -- --
Floating rate obligations 52,540,000 49,023,333 23,290,000 49,300,000 19,385,000 66,962,000
Payables:
Investments purchased 2,159,044 -- -- -- -- --
Auction Rate Preferred share
dividends 29,948 20,848 19,413 22,879 -- 20,416
Common share dividends 3,317,343 2,462,774 2,524,846 2,462,876 2,067,517 2,642,566
Offering costs -- -- -- -- 9,195 --
Variable Rate Demand Preferred
shares, at liquidation value -- -- -- -- 196,000,000 --
Accrued expenses:
Management fees 629,073 444,568 473,325 357,352 254,582 305,900
Other 433,346 276,458 306,959 234,160 99,733 126,262
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 61,565,595 52,227,981 26,614,543 52,377,267 217,816,027 70,057,144
----------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares,
at liquidation value 425,375,000 298,675,000 346,675,000 266,800,000 -- 236,950,000
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 812,987,712 $ 560,321,720 $ 577,566,697 $ 495,469,130 $ 393,653,522 $ 529,575,657
==================================================================================================================================
Common shares outstanding 59,914,073 43,214,524 45,557,788 39,287,298 29,436,352 40,378,174
==================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to Common
shares, divided by Common
shares outstanding) $ 13.57 $ 12.97 $ 12.68 $ 12.61 $ 13.37 $ 13.12
==================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 599,141 $ 432,145 $ 455,578 $ 392,873 $ 294,364 $ 403,782
Paid-in surplus 836,436,893 604,052,660 635,757,018 550,788,248 418,459,831 573,909,890
Undistributed
(Over-distribution of) net
investment income 6,631,162 4,547,142 3,509,497 4,104,442 962,994 3,249,649
Accumulated net realized gain
(loss) from investments and
derivative transactions (7,320,958) (4,753,357) (13,985,424) (7,531,576) (8,530,382) (1,337,630)
Net unrealized appreciation
(depreciation) of investments (23,358,526) (43,956,870) (48,169,972) (52,284,857) (17,533,285) (46,650,034)
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 812,987,712 $ 560,321,720 $ 577,566,697 $ 495,469,130 $ 393,653,522 $ 529,575,657
==================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited
Auction Rate Preferred and
Variable Rate Demand
Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited
==================================================================================================================================
See accompanying notes to financial statements.
84 Nuveen Investments
| Statement of OPERATIONS Six Months Ended April 30, 2009 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 35,451,724 $ 26,884,504 $ 27,745,372 $ 23,753,037 $ 18,164,779 $ 24,384,154
---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 3,737,148 2,676,460 2,843,890 2,296,205 1,791,994 2,397,103
Auction fees 544,157 410,488 443,080 330,759 98,544 333,678
Dividend disbursing agent fees 24,790 24,795 19,836 14,877 22,316 14,877
Shareholders' servicing agent
fees and expenses 65,138 40,629 42,323 5,629 2,406 3,207
Interest expense and
amortization of offering
costs 233,193 159,448 95,893 254,738 1,110,958 234,981
Liquidity fees -- -- -- -- 752,757 --
Custodian's fees and expenses 112,277 71,912 89,259 63,458 58,301 69,375
Directors'/Trustees' fees and
expenses 24,260 17,229 18,378 14,668 11,283 15,363
Professional fees 55,660 41,427 43,329 34,872 27,732 36,901
Shareholders' reports -
printing and mailing expenses 127,835 88,616 98,274 76,224 55,434 76,014
Stock exchange listing fees 10,181 7,408 7,751 6,687 2,060 2,831
Investor relations expense 26,489 18,508 19,403 16,008 12,356 16,717
Other expenses 32,816 26,938 27,955 17,977 11,293 18,503
---------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 4,993,944 3,583,858 3,749,371 3,132,102 3,957,434 3,219,550
Custodian fee credit (2,199) (33,289) (18,295) (27,824) (7,747) (33,218)
Expense reimbursement -- -- -- (183,081) (401,760) (573,961)
---------------------------------------------------------------------------------------------------------------------------
Net expenses 4,991,745 3,550,569 3,731,076 2,921,197 3,547,927 2,612,371
---------------------------------------------------------------------------------------------------------------------------
Net investment income 30,459,979 23,333,935 24,014,296 20,831,840 14,616,852 21,771,783
---------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (6,926,542) (3,687,894) 792,099 (2,259,560) (5,628,202) (2,867,012)
Futures -- -- -- -- -- 1,331,299
Change in net unrealized
appreciation (depreciation) of:
Investments 53,658,986 36,305,101 14,724,498 31,224,119 23,490,316 38,052,984
Futures -- -- -- -- -- 679,241
---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) 46,732,444 32,617,207 15,516,597 28,964,559 17,862,114 37,196,512
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE
PREFERRED SHAREHOLDERS
From net investment income (2,430,415) (1,855,157) (1,952,287) (1,441,651) -- (1,491,294)
---------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to
Auction Rate Preferred
shareholders (2,430,415) (1,855,157) (1,952,287) (1,441,651) -- (1,491,294)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations $ 74,762,008 $ 54,095,985 $ 37,578,606 $ 48,354,748 $ 32,478,966 $ 57,477,001
---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
Nuveen Investments 85
| 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
4/30/09 10/31/08 4/30/09 10/31/08 4/30/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 30,459,979 $ 60,898,881 $ 23,333,935 $ 46,529,938 $ 24,014,296 $ 47,049,012
Net realized gain (loss) from:
Investments (6,926,542) (328,499) (3,687,894) (1,136,012) 792,099 (1,618,281)
Forward swaps -- -- -- -- -- --
Futures -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of:
Investments 53,658,986 (153,071,771) 36,305,101 (130,946,869) 14,724,498 (116,402,236)
Forward swaps -- -- -- -- -- --
Futures -- -- -- -- -- --
Distributions to Auction Rate
Preferred shareholders:
From net investment income (2,430,415) (17,368,890) (1,855,157) (12,897,786) (1,952,287) (13,956,934)
From accumulated net
realized gains -- -- -- (363,253) -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 74,762,008 (109,870,279) 54,095,985 (98,813,982) 37,578,606 (84,928,439)
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (22,270,065) (41,700,208) (17,376,560) (33,361,611) (17,357,522) (33,302,749)
From accumulated net realized
gains -- -- -- (1,028,506) -- --
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to Common
shareholders (22,270,065) (41,700,208) (17,376,560) (34,390,117) (17,357,522) (33,302,749)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due
to reinvestment of
distributions -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 52,491,943 (151,570,487) 36,719,425 (133,204,099) 20,221,084 (118,231,188)
Net assets applicable to Common
shares at the beginning of
period 760,495,769 912,066,256 523,602,295 656,806,394 557,345,613 675,576,801
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 812,987,712 $ 760,495,769 $ 560,321,720 $ 523,602,295 $ 577,566,697 $ 557,345,613
=================================================================================================================================
Undistributed
(Over-distribution of) net
investment income at the end
of period $ 6,631,162 $ 871,663 $ 4,547,142 $ 444,924 $ 3,509,497 $ (1,194,990)
=================================================================================================================================
See accompanying notes to financial statements.
86 Nuveen Investments
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
4/30/09 10/31/08 4/30/09 10/31/08 4/30/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,831,840 $ 41,327,650 $ 14,616,852 $ 30,875,115 $ 21,771,783 $ 42,950,481
Net realized gain (loss) from:
Investments (2,259,560) 1,445,057 (5,628,202) 3,731,159 (2,867,012) (3,045,414)
Forward swaps -- -- -- -- -- 2,733,000
Futures -- -- -- -- 1,331,299 865,654
Change in net unrealized
appreciation (depreciation)
of:
Investments 31,224,119 (124,805,304) 23,490,316 (86,311,451) 38,052,984 (117,423,115)
Forward swaps -- -- -- -- -- (1,472,119)
Futures -- -- -- -- 679,241 (679,241)
Distributions to Auction Rate
Preferred shareholders:
From net investment income (1,441,651) (10,685,162) -- (6,026,331) (1,491,294) (11,064,289)
From accumulated net
realized gains -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 48,354,748 (92,717,759) 32,478,966 (57,731,508) 57,477,001 (87,135,043)
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (15,439,910) (30,223,720) (12,891,302) (25,763,976) (16,462,182) (31,212,328)
From accumulated net realized
gains -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to Common
shareholders (15,439,910) (30,223,720) (12,891,302) (25,763,976) (16,462,182) (31,212,328)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due
to reinvestment of
distributions -- -- 126,288 443,496 -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- 126,288 443,496 -- --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 32,914,838 (122,941,479) 19,713,952 (83,051,988) 41,014,819 (118,347,371)
Net assets applicable to Common
shares at the beginning of
period 462,554,292 585,495,771 373,939,570 456,991,558 488,560,838 606,908,209
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 495,469,130 $ 462,554,292 $ 393,653,522 $ 373,939,570 $ 529,575,657 $ 488,560,838
=================================================================================================================================
Undistributed
(Over-distribution of)net
investment income at the end
of period $ 4,104,442 $ 154,163 $ 962,994 $ (762,556) $ 3,249,649 $ (568,658)
=================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 87
| Statement of CASH FLOWS Six Months Ended April 30, 2009 (Unaudited)
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2
(NAD) (NXZ)
--------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 48,354,748 $ 32,478,966
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common
shares from operations to net cash provided by (used in) operating activities:
Purchases of investments (32,080,639) (23,383,891)
Proceeds from sales and maturities of investments 14,925,175 6,393,233
Proceeds from (Purchases of) short-term investments, net 15,335,000 4,680,000
Amortization (Accretion) of premiums and discounts, net (3,443,849) (679,755)
(Increase) Decrease in receivable for dividend and interest (941,853) (466,290)
(Increase) Decrease in receivable for investments sold (4,045,000) 11,840,502
(Increase) Decrease in other assets (49,233) 23,902
Increase (Decrease) in payable for investments purchased -- (7,746,444)
Increase (Decrease) in payable for Auction Rate Preferred share dividends (41,581) --
Increase (Decrease) in accrued management fees (90) 21,412
Increase (Decrease) in accrued other liabilities (11,900) 84,957
Net realized (gain) loss from investments 2,259,560 5,628,202
Change in net unrealized (appreciation) depreciation of investments (31,224,119) (23,490,316)
Taxes paid on undistributed capital gains -- (118,199)
--------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 9,036,219 5,266,279
==========================================================================================================================
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- (182,797)
Increase (Decrease) in floating rate obligations 560,000 8,140,000
Cash distributions paid to Common shareholders (15,430,946) (12,756,675)
(Increase) Decrease in deferred offering costs -- 37,516
Increase (Decrease) in payable for offering costs -- (213,027)
--------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (14,870,946) (4,974,983)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (5,834,727) 291,296
Cash at the beginning of period 6,100,102 --
--------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 265,375 $ 291,296
==========================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $126,288 for Dividend Advantage 2 (NXZ). Cash paid
for interest (excluding amortization of offering costs, where applicable) was as
follows:
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2
(NAD) (NXZ)
--------------------------------------------------------------------------------------------------------------------------
$ 254,738 $ 1,073,442
==========================================================================================================================
See accompanying notes to financial statements.
88 Nuveen Investments
| Notes to FINANCIAL STATEMENTS(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen Performance Plus Municipal Fund, Inc. (NPP), Nuveen
Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market Opportunity Fund,
Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD), Nuveen Dividend
Advantage Municipal Fund 2 (NXZ) and Nuveen Dividend Advantage Municipal Fund 3
(NZF) (collectively, the "Funds"). Performance Plus (NPP), Municipal Advantage
(NMA), Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the
New York Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage
3 (NZF) are traded on the NYSE Amex (formerly, American Stock Exchange). The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end, management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a portfolio of municipal obligations issued by state
and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. Futures contracts are
valued using the closing settlement price, or, in the absence of such a price,
at the mean of the bid and asked prices. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2009, there were
no such outstanding purchase commitments in any of the 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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Nuveen Investments 89
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Auction Rate Preferred Shares
The following Funds have issued and outstanding Auction Rate Preferred shares,
$25,000 stated value per share, as a means of effecting financial leverage. Each
Fund's Auction Rate Preferred shares are issued in more than one Series. The
dividend rate paid by the Funds on each Series is determined every seven days,
pursuant to a dutch auction process overseen by the auction agent, and is
payable at the end of each rate period. As of April 30, 2009, the number of
Auction Rate Preferred shares outstanding, by Series and in total, for each Fund
is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NZF)
--------------------------------------------------------------------------------------------------
Number of shares:
Series M 3,553 2,503 3,649 3,618 --
Series T 3,552 2,503 3,648 3,617 --
Series W 3,551 2,502 2,920 -- 3,159
Series TH 2,806 1,936 -- 3,437 3,159
Series F 3,553 2,503 3,650 -- 3,160
--------------------------------------------------------------------------------------------------
Total 17,015 11,947 13,867 10,672 9,478
==================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Auction Rate Preferred shares issued by the Funds
than there were offers to buy. This meant that these auctions "failed to clear,"
and that many Auction Rate Preferred shareholders who wanted to sell their
shares in these auctions were unable to do so. Auction Rate Preferred
shareholders unable to sell their shares received distributions at the "maximum
rate" applicable to failed auctions as calculated in accordance with the
pre-established terms of the Auction Rate Preferred shares.
90 Nuveen Investments
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one implication of these auction
failures for Common shareholders is that the Funds' cost of leverage will likely
be higher, at least temporarily, than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may be lower than they otherwise would have been. As of April 30, 2009,
the aggregate amount of outstanding Auction Rate Preferred shares redeemed by
each Fund is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed, at liquidation value $ 53,625,000 $ 59,325,000 $ 33,325,000 $ 28,200,000 $222,000,000 $ 75,050,000
=======================================================================================================================
Variable Rate Demand Preferred Shares
On August 7, 2008, Dividend Advantage 2 (NXZ) issued 1,960 Series 1 Variable
Rate Demand Preferred shares, $100,000 liquidation value per share, in a
privately negotiated offering. Proceeds of this offering along with the proceeds
from the Fund's creation of tender option bonds (TOBs), also known as "floaters"
or floating rate obligations, were used to redeem all of the Fund's outstanding
Auction Rate Preferred shares totaling $222,000,000. The Variable Rate Demand
Preferred shares were offered to institutional buyers as defined pursuant to
Rule 144A under the Securities Act of 1933, have a maturity date of August 1,
2038 and include a liquidity feature that allows the Variable Rate Demand
Preferred shareholders to have their shares purchased by the liquidity provider
in the event that sell orders are not matched with purchase orders in a
remarketing. Dividends on the Variable Rate Demand Preferred shares (which are
treated as interest payments for financial reporting purposes) are set weekly at
a rate established by a remarketing agent; therefore, the liquidation value of
the Variable Rate Demand Preferred shares approximates fair value.
Subject to certain conditions, Variable Rate Demand Preferred shares may be
redeemed, in whole or in part, at any time at the option of the Fund. The Fund
may also redeem certain of the Variable Rate Demand Preferred shares if the Fund
fails to maintain certain asset coverage requirements and such failures are not
cured by the applicable cure date. The redemption price per share is equal to
the sum of the liquidation value per share plus any accumulated but unpaid
dividends.
Dividend Advantage 2 (NXZ) had all of its $196,000,000 Variable Rate Demand
Preferred shares outstanding for the six months ended April 30, 2009, with an
annualized interest rate of 1.02%.
For financial reporting purposes only, the liquidation value of Variable Rate
Demand Preferred shares is recorded as a liability on the Statement of Assets
and Liabilities and the dividends paid on the Variable Rate Demand Preferred
shares are included as a component of "Interest expense and amortization of
offering costs" on the Statement of Operations. In addition to interest expense,
the Fund also paid a per annum liquidity fee which is recognized as "Liquidity
fees" on the Statement of Operations.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance Statement of Financial Accounting Standards No. 140 (SFAS No. 140)
"Accounting for Transfers and Servicing of Financial Assets Extinguishment of
Liabilities." In such instances, a fixed-rate bond deposited into a special
purpose trust is identified in Portfolio of Investments as "(UB) - Underlying
bond of an inverse floating rate trust," with the Fund accounting for the
short-term floating rate certificates issued by the trust as "Floating rate
obligations" on the Statement of Assets and Liabilities. In addition, the Fund
Nuveen Investments 91
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
reflects in "Investment Income" the entire earnings of the underlying bond and
the related interest paid to the holders of the short-term floating rate
certificates is included as a component of "Interest expense and amortization of
offering costs" on the Statement of Operations.
During the six months ended April 30, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At April 30, 2009, each Fund's maximum exposure to externally-deposited Recourse
Trusts, is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ 18,750,000 $ 18,526,650 $ 7,500,000 $ 11,250,000 $ 18,526,650 $ 7,276,650
==============================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2009, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $41,469,470 $30,643,748 $17,718,867 $48,899,972 $15,415,000 $42,457,166
Average annual interest rate and fees 1.13% 1.05% 1.09% 1.05% 1.10% 1.12%
==============================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. 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. None of the Funds
invested in forward interest rate swap transactions during the six months ended
April 30, 2009.
92 Nuveen Investments
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized on
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin, when
applicable. Dividend Advantage 3 (NZF) invested in futures contracts during the
six months ended April 30, 2009.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Market and Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (credit risk). Similar to credit risk, each Fund may be
exposed to counterparty risk, or the risk that an institution or other entity
with which the Fund has unsettled or open transactions will default. The
potential loss could exceed the value of the financial assets recorded on the
financial statements. Financial assets, which potentially expose each Fund to
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to credit and
counterparty risks in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage credit risk by entering into agreements only with
counterparties Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments Inc. ("Nuveen"), believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, the Funds have instructed the custodian
to pledge assets of the Funds as collateral with a value approximately equal to
the amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Offering Costs
Costs incurred by Dividend Advantage 2 (NXZ) in connection with its offering of
the Variable Rate Demand Preferred shares ($2,270,000) were recorded as a
deferred charge which will be amortized over the 30-year life of the shares and
are recognized as a component of "Interest expense and amortization of offering
costs" on the Statement of Operations.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Nuveen Investments 93
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of April 30, 2009:
PERFORMANCE PLUS (NPP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------
Investments $ -- $ 1,271,554,332 $ -- $ 1,271,554,332
======================================================================================
MUNICIPAL ADVANTAGE (NMA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------
Investments $ -- $ 894,209,897 $ -- $ 894,209,897
======================================================================================
MARKET OPPORTUNITY (NMO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------
Investments $ -- $ 931,400,462 $ -- $ 931,400,462
======================================================================================
DIVIDEND ADVANTAGE (NAD) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------
Investments $ 456,627 $ 796,439,358 $ -- $ 796,895,985
======================================================================================
DIVIDEND ADVANTAGE 2 (NXZ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------
Investments $ -- $ 596,766,911 $ -- $ 596,766,911
======================================================================================
DIVIDEND ADVANTAGE 3 (NZF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------
Investments $ 1,501,913 $ 819,252,495 $ -- $ 820,754,408
======================================================================================
3. FUND SHARES
Common Shares
On July 30, 2008, the Funds' Board of Directors/Trustees approved an open-market
share repurchase program under which each Fund may repurchase an aggregate of up
to approximately 10% of its outstanding Common shares. The Funds did not
repurchase any of their Common shares during the six months ended April 30,
2009, or the fiscal year ended October 31, 2008.
94 Nuveen Investments
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
4/30/09 10/31/08 4/30/09 10/31/08 4/30/09 10/31/08
----------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders due
to reinvestment of distributions -- -- -- -- -- --
======================================================================================================================
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE (NAD) ADVANTAGE 2 (NXZ) ADVANTAGE 3 (NZF)
------------------------- ----------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/09 10/31/08 4/30/09 10/31/08 4/30/09 10/31/08
----------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders due
to reinvestment of distributions -- -- 10,026 29,827 -- --
======================================================================================================================
Preferred Shares
Transactions in Auction Rate Preferred shares were as follows:
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA)
--------------------------------------------- ------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/09 10/31/08 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed:
Series M 119 $ 2,975,000 328 $ 8,200,000 360 $ 9,000,000 137 $ 3,425,000
Series T 119 2,975,000 329 8,225,000 360 9,000,000 137 3,425,000
Series W 120 3,000,000 329 8,225,000 361 9,025,000 137 3,425,000
Series TH 94 2,350,000 260 6,500,000 278 6,950,000 106 2,650,000
Series F 119 2,975,000 328 8,200,000 360 9,000,000 137 3,425,000
------------------------------------------------------------------------------------------------------------------------------
Total 571 $ 14,275,000 1,574 $ 39,350,000 1,719 $ 42,975,000 654 $ 16,350,000
==============================================================================================================================
MARKET OPPORTUNITY (NMO) DIVIDEND ADVANTAGE (NAD)
--------------------------------------------- ------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/09 10/31/08 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed:
Series M 158 $ 3,950,000 193 $ 4,825,000 -- $ -- 382 $ 9,550,000
Series T 159 3,975,000 193 4,825,000 -- -- 383 9,575,000
Series W 126 3,150,000 154 3,850,000 -- -- -- --
Series TH -- -- -- -- -- -- 363 9,075,000
Series F 157 3,925,000 193 4,825,000 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total 600 $ 15,000,000 733 $ 18,325,000 -- $ -- 1,128 $ 28,200,000
==============================================================================================================================
DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
--------------------------------------------- ------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/09 10/31/08 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed:
Series M -- $ -- 3,000 $ 75,000,000 -- $ -- -- $ --
Series T -- -- 3,000 75,000,000 -- -- -- --
Series W -- -- -- -- 451 11,275,000 550 13,750,000
Series TH -- -- -- -- 451 11,275,000 550 13,750,000
Series F -- -- 2,880 72,000,000 451 11,275,000 549 13,725,000
------------------------------------------------------------------------------------------------------------------------------
Total -- $ -- 8,880 $222,000,000 1,353 $ 33,825,000 1,649 $ 41,225,000
==============================================================================================================================
Nuveen Investments 95
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
Transactions in Variable Rate Demand Preferred shares were as follows:
DIVIDEND ADVANTAGE 2 (NXZ)
---------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/09 10/31/08
---------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred shares issued:
Series 1 -- $ -- 1,960 $ 196,000,000
===================================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2009, were as
follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------
Purchases $ 21,076,115 $ 27,748,419 $ 14,150,369 $ 32,080,639 $ 23,383,891 $ 10,611,246
Sales and maturities 23,551,000 46,280,908 21,044,778 14,925,175 6,393,233 9,583,662
=========================================================================================================
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140, if any. To the extent that differences
arise that are permanent in nature, such amounts are reclassified within the
capital accounts on the Statement of Assets and Liabilities presented in the
annual report, based on their federal tax basis treatment; temporary differences
do not require reclassification. Temporary and permanent differences do not
impact the net asset values of the Funds.
At April 30, 2009, the cost of investments was as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 1,241,000,907 $ 887,433,991 $ 955,892,407 $ 798,833,628 $ 593,992,681 $ 800,500,531
==========================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2009, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 61,994,121 $ 34,725,516 $ 42,209,301 $ 31,565,665 $ 28,541,404 $ 28,119,056
Depreciation (83,992,006) (76,964,283) (89,987,878) (82,802,021) (45,175,147) (74,718,405)
---------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of
investments $ (21,997,885) $ (42,238,767) $ (47,778,577) $ (51,236,356) $ (16,633,743) $ (46,599,349)
===========================================================================================================================
96 Nuveen Investments
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2008, 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 * $ 3,489,193 $ 1,437,801 $ 1,322,949 $ 1,215,719 $ 164,196 $ 1,724,493
Undistributed net ordinary income ** 60,857 126,563 198 -- 347,635 311,541
Undistributed net long-term capital
gains -- -- -- -- -- --
==============================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2008, paid on November 3, 2008.
** 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, 2008, was designated for purposes of the dividends paid deduction as
follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 58,938,252 $ 46,196,128 $ 47,134,373 $ 40,676,616 $ 33,466,437 $ 42,267,778
Distributions from net ordinary income ** -- -- -- 171,088 -- --
Distributions from net long-term capital
gains -- 1,389,990 -- -- -- --
==============================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2008, the Funds' last tax year end, the Funds had unused capital
loss carryforwards available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryforwards will
expire as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2011 $ -- $ -- $ 7,158,110 $ 4,594,300 $ -- $ --
October 31, 2012 -- -- 973,824 -- -- --
October 31, 2013 -- -- -- 104,762 177,536 --
October 31, 2014 -- -- 3,141,529 -- 1,882,135 --
October 31, 2015 105,896 -- 1,902,879 -- 961,027 347,417
October 31, 2016 443,483 876,507 1,398,166 -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total $ 549,379 $ 876,507 $ 14,574,508 $ 4,699,062 $ 3,020,698 $ 347,417
==============================================================================================================================
Dividend Advantage (NAD) had $7,670,294 of its capital loss carryforward expire
on October 31, 2008.
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
Nuveen Investments 97
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Auction Rate
Preferred shares or Variable Rate Demand Preferred shares) of each Fund as
follows:
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
DIVIDEND ADVANTAGE (NAD)
DIVIDEND ADVANTAGE 2 (NXZ)
DIVIDEND ADVANTAGE 3 (NZF)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of April 30, 2009, the complex-level fee rate was .1998%.
98 Nuveen Investments
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets includes assets managed by the
Adviser that are attributable to each fund's use of financial leverage.
For these purposes, financial leverage includes the funds' use of
preferred stock and borrowings and investments in the residual interest
certificates (also called inverse floating rate securities) in tender
option bond (TOB) trusts, including the portion of assets held by the TOB
trust that has been effectively financed by the trust's issuance of
floating rate securities, subject to an agreement by the Adviser to limit
the amount of such assets for determining managed net assets in certain
circumstances.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first 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 Auction Rate Preferred shares or Variable
Rate Demand 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 Auction Rate Preferred shares or Variable
Rate Demand 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.
Nuveen Investments 99
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
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 Auction Rate Preferred shares or Variable
Rate Demand 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.
7. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161) In March 2008, the FASB issued SFAS No. 161, "Disclosures
about Derivative Instruments and Hedging Activities." This standard is intended
to enhance financial statement disclosures for derivative instruments and
hedging activities and enable investors to understand: a) how and why a fund
uses derivative instruments, b) how derivative instruments and related hedge
items are accounted for, and c) how derivative instruments and related hedge
items affect a fund's financial position, results of operations and cash flows.
SFAS No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2009,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4) On
April 9, 2009, the Financial Accounting Standards Board issued FSP No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly." FSP No. 157-4 provides additional guidance for estimating fair value
in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and
level of activity for the asset or liability have significantly decreased. FSP
No. 157-4 also requires additional disaggregation of the current SFAS No. 157
required disclosures. FSP No. 157-4 is effective for interim and annual
reporting periods ending after June 15, 2009, and shall be applied
prospectively. At this time, management is evaluating the implications of FSP
No. 157-4 and the impact it will have on the financial statement disclosures.
100 Nuveen Investments
8. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2009, to shareholders of record on
May 15, 2009, as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-------------------------------------------------------------------------------------------------------
Dividend per share $ .0680 $ .0715 $ .0690 $ .0715 $ .0730 $ .0735
=======================================================================================================
Auction Participation Fees
Effective May 1, 2009, auction participation fees for Nuveen Auction Rate
Preferred shares with respect to auctions that have failed have been reduced
from 25 bps (annualized) to 15 bps (annualized). All auction participants have
signed new agreements incorporating this change.
Nuveen Investments 101
| 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/ Auction Rate Auction Rate
Net Asset Investment Unrealized Preferred Preferred
Value Income Gain (Loss) Shareholders+ Shareholders+ Total
-------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 12.69 $ .51 $ .78 $ (.04) $ -- $ 1.25
2008 15.22 1.02 (2.56) (.29) -- (1.83)
2007 15.78 .99 (.47) (.27) (.01) .24
2006 15.51 1.00 .38 (.25) -- 1.13
2005 15.87 1.02 (.26) (.16) -- .60
2004 15.45 1.04 .42 (.07) -- 1.39
MUNICIPAL ADVANTAGE (NMA)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 12.12 .54 .75 (.04) -- 1.25
2008 15.20 1.08 (3.06) (.30) (.01) (2.29)
2007 15.88 1.07 (.63) (.29) -- .15
2006 15.70 1.08 .27 (.26) -- 1.09
2005 16.02 1.09 (.24) (.16) -- .69
2004 15.62 1.11 .41 (.08) -- 1.44
=============================================================================================================
Less Distributions
---------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
--------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.37) $ -- $ (.37) $ 13.57 $ 12.42
2008 (.70) -- (.70) 12.69 11.50
2007 (.75) (.05) (.80) 15.22 13.59
2006 (.84) (.02) (.86) 15.78 15.09
2005 (.94) (.02) (.96) 15.51 14.43
2004 (.97) -- (.97) 15.87 14.95
MUNICIPAL ADVANTAGE (NMA)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) (.40) -- (.40) 12.97 12.24
2008 (.77) (.02) (.79) 12.12 11.41
2007 (.83) -- (.83) 15.20 13.95
2006 (.90) (.01) (.91) 15.88 15.85
2005 (1.00) (.01) (1.01) 15.70 15.19
2004 (1.03) (.01) (1.04) 16.02 15.70
==================================================================================================
Auction Rate Preferred Shares Variable Rate Demand Preferred Shares
at End of Period at End of Period
--------------------------------------- ----------------------------------------
Aggregate Liquidation Aggregate Liquidation
Amount and Market Asset Amount and Market Asset
Outstanding Value Coverage Outstanding Value Coverage
(000) Per Share Per Share (000) Per Share Per Share
---------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 425,375 $ 25,000 $ 72,781 $ -- $ -- $ --
2008 439,650 25,000 68,244 -- -- --
2007 479,000 25,000 72,603 -- -- --
2006 479,000 25,000 74,333 -- -- --
2005 479,000 25,000 73,515 -- -- --
2004 479,000 25,000 74,634 -- -- --
MUNICIPAL ADVANTAGE (NMA)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 298,675 25,000 71,901 -- -- --
2008 341,650 25,000 63,314 -- -- --
2007 358,000 25,000 70,866 -- -- --
2006 358,000 25,000 72,743 -- -- --
2005 358,000 25,000 72,184 -- -- --
2004 358,000 25,000 73,128 -- -- --
===============================================================================================================
102 Nuveen Investments
Ratios/Supplemental Data
-----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
--------------------- --------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++ Income++
--------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 11.45% 10.01% $ 812,988 1.29%*** 1.23%*** 7.89%***
2008 (10.71) (12.49) 760,496 1.25 1.17 6.96
2007 (4.97) 1.53 912,066 1.16 1.14 6.38
2006 10.78 7.50 945,222 1.15 1.15 6.44
2005 3.02 3.83 929,544 1.15 1.15 6.45
2004 9.10 9.30 950,993 1.17 1.17 6.69
MUNICIPAL ADVANTAGE (NMA)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 11.04 10.53 560,322 1.36*** 1.30*** 8.82***
2008 (13.16) (15.65) 523,602 1.38 1.21 7.50
2007 (7.08) 1.06 656,806 1.40 1.17 6.87
2006 10.68 7.16 683,675 1.18 1.18 6.92
2005 3.29 4.42 675,678 1.17 1.17 6.81
2004 8.82 9.57 689,190 1.19 1.19 7.00
====================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++ Income++ Rate
--------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.29%*** 1.23%*** 7.89%*** 2%
2008 1.23 1.16 6.98 9
2007 1.14 1.13 6.39 6
2006 1.14 1.14 6.45 9
2005 1.14 1.14 6.46 6
2004 1.17 1.17 6.70 11
MUNICIPAL ADVANTAGE (NMA)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.34*** 1.28*** 8.83*** 3
2008 1.36 1.19 7.52 13
2007 1.38 1.15 6.89 10
2006 1.17 1.17 6.93 11
2005 1.16 1.16 6.82 8
2004 1.18 1.18 7.00 4
============================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; income ratios reflect income earned on assets
attributable to Auction Rate Preferred shares or Variable Rate Demand
Preferred shares, where applicable.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 103
| Financial HIGHLIGHTS (continued) (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/ Auction Rate Auction Rate
Net Asset Investment Unrealized Preferred Preferred Total
Value Income Gain (Loss) Shareholders+ Shareholders+
-----------------------------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 12.23 $ .53 $ .34 $ (.04) $ -- .83
2008 14.83 1.03 (2.59) (.31) -- (1.87)
2007 15.41 1.04 (.56) (.30) -- .18
2006 15.14 1.02 .34 (.26) -- 1.10
2005 15.48 1.03 (.29) (.16) -- .58
2004 15.11 1.03 .37 (.08) -- 1.32
DIVIDEND ADVANTAGE (NAD)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 11.77 .53 .74 (.04) -- 1.23
2008 14.90 1.05 (3.14) (.27) -- (2.26)
2007 15.54 1.04 (.60) (.27) -- .17
2006 15.28 1.04 .32 (.24) -- 1.12
2005 15.62 1.06 (.25) (.15) -- .66
2004 15.17 1.09 .46 (.07) -- 1.48
=================================================================================================================
Less Distributions
-------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.38) $ -- $ (.38) $ 12.68 $ 11.72
2008 (.73) -- (.73) 12.23 11.52
2007 (.76) -- (.76) 14.83 13.53
2006 (.83) -- (.83) 15.41 15.00
2005 (.92) -- (.92) 15.14 14.19
2004 (.95) -- (.95) 15.48 14.44
DIVIDEND ADVANTAGE (NAD)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) (.39) -- (.39) 12.61 11.73
2008 (.77) -- (.77) 11.77 10.72
2007 (.81) -- (.81) 14.90 13.63
2006 (.86) -- (.86) 15.54 15.30
2005 (1.00) -- (1.00) 15.28 14.58
2004 (1.03) -- (1.03) 15.62 15.31
===========================================================================================
Auction Rate Preferred Shares Variable Rate Demand Preferred Shares
at End of Period at End of Period
-------------------------------------- ----------------------------------------
Aggregate Liquidation Aggregate Liquidation
Amount and Market Asset Amount and Market Asset
Outstanding Value Coverage Outstanding Value Coverage
(000) Per Share Per Share (000) Per Share Per Share
-------------------------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 346,675 $ 25,000 $ 66,650 $ -- $ -- $ --
2008 361,675 25,000 63,525 -- -- --
2007 380,000 25,000 69,446 -- -- --
2006 380,000 25,000 71,155 -- -- --
2005 380,000 25,000 70,374 -- -- --
2004 380,000 25,000 71,366 -- -- --
DIVIDEND ADVANTAGE (NAD)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 266,800 25,000 71,427 -- -- --
2008 266,800 25,000 68,343 -- -- --
2007 295,000 25,000 74,618 -- -- --
2006 295,000 25,000 76,722 -- -- --
2005 295,000 25,000 75,838 -- -- --
2004 295,000 25,000 76,977 -- -- --
=============================================================================================================
104 Nuveen Investments
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
----------------------- ------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++ Income++
------------------------------------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 5.26% 6.91% $577,567 1.35%*** 1.31%*** 8.62%***
2008 (9.87) (13.07) 557,346 1.36 1.23 7.33
2007 (5.00) 1.20 675,577 1.38 1.19 6.87
2006 11.92 7.49 701,559 1.19 1.19 6.73
2005 4.70 3.78 689,682 1.19 1.19 6.66
2004 7.97 9.00 704,760 1.21 1.21 6.75
DIVIDEND ADVANTAGE (NAD)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 13.39 10.58 495,469 1.34*** 1.23*** 8.81***
2008 (16.46) (16.42) 462,554 1.36 1.15 7.33
2007 (5.96) 1.10 585,496 1.24 1.13 6.60
2006 11.19 7.59 610,316 1.12 1.12 6.54
2005 1.77 4.27 599,887 1.17 1.17 6.48
2004 8.37 10.06 613,328 1.14 1.14 6.69
========================================================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++ Income++ Rate
---------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.34%*** 1.31%*** 8.62%*** 2%
2008 1.35 1.21 7.35 8
2007 1.36 1.17 6.88 5
2006 1.18 1.18 6.74 14
2005 1.18 1.18 6.67 7
2004 1.19 1.19 6.77 4
DIVIDEND ADVANTAGE (NAD)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.25*** 1.14*** 8.90*** 2
2008 1.20 1.00 7.48 11
2007 1.01 .90 6.83 11
2006 .83 .83 6.83 8
2005 .80 .80 6.84 11
2004 .70 .70 7.12 7
=============================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation.
Total returns are not annualized. Total Return Based on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; income ratios reflect income earned on assets
attributable to Auction Rate Preferred shares or Variable Rate Demand
Preferred shares, where applicable.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 105
| Financial HIGHLIGHTS (continued) (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/ Auction Rate Auction Rate
Net Asset Investment Unrealized Preferred Preferred
Value Income Gain (Loss) Shareholders+ Shareholders+ Total
-----------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 12.71 $ .50 $ .60 $ -- $ -- $ 1.10
2008 15.55 1.05 (2.81) (.20) -- (1.96)
2007 16.02 1.13 (.43) (.27) -- .43
2006 15.80 1.12 .32 (.24) -- 1.20
2005 15.63 1.13 .22 (.15) -- 1.20
2004 15.13 1.12 .51 (.07) -- 1.56
DIVIDEND ADVANTAGE 3 (NZF)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 12.10 .54 .93 (.04) -- 1.43
2008 15.03 1.06 (2.95) (.27) -- (2.16)
2007 15.54 1.07 (.44) (.27) (.01) .35
2006 15.32 1.07 .29 (.24) -- 1.12
2005 15.36 1.06 .01 (.15) -- .92
2004 14.74 1.06 .59 (.07) -- 1.58
=======================================================================================================================
Less Distributions
--------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-----------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.44) $ -- $ (.44) $ 13.37 $ 12.81
2008 (.88) -- (.88) 12.71 12.35
2007 (.90) -- (.90) 15.55 15.48
2006 (.98) -- (.98) 16.02 16.50
2005 (1.03) -- (1.03) 15.80 15.64
2004 (1.03) (.03) (1.06) 15.63 15.38
DIVIDEND ADVANTAGE 3 (NZF)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) (.41) -- (.41) 13.12 12.13
2008 (.77) -- (.77) 12.10 10.72
2007 (.84) (.02) (.86) 15.03 13.85
2006 (.90) -- (.90) 15.54 15.88
2005 (.96) -- (.96) 15.32 14.41
2004 (.96) -- (.96) 15.36 14.50
===============================================================================================
Auction Rate Preferred Shares Variable Rate Demand Preferred Shares
at End of Period at End of Period
-------------------------------------------- -------------------------------------------
Aggregate Liquidation Aggregate Liquidation
Amount and Market Asset Amount and Market Asset
Outstanding Value Coverage Outstanding Value Coverage
(000) Per Share Per Share (000) Per Share Per Share
------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ -- $ -- $ -- $ 196,000 $ 100,000 $ 300,844
2008 -- -- -- 196,000 100,000 290,785
2007 222,000 25,000 76,463 -- -- --
2006 222,000 25,000 77,949 -- -- --
2005 222,000 25,000 77,124 -- -- --
2004 222,000 25,000 76,526 -- -- --
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 236,950 25,000 80,874 -- -- --
2008 270,775 25,000 70,108 -- -- --
2007 312,000 25,000 73,630 -- -- --
2006 312,000 25,000 75,227 -- -- --
2005 312,000 25,000 74,468 -- -- --
2004 312,000 25,000 74,609 -- -- --
========================================================================================================================
106 Nuveen Investments
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
------------------------ ------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++ Income++
------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 7.48% 8.83% $ 393,654 2.12%*** 1.52%*** 7.61%***
2008 (15.21) (13.23) 373,940 1.71 1.22 6.82
2007 (.78) 2.76 456,992 1.25 1.11 6.83
2006 11.95 7.86 470,189 1.11 1.11 6.70
2005 8.58 7.83 462,862 1.12 1.12 6.66
2004 11.16 10.67 457,552 1.14 1.14 6.87
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 17.39 12.01 529,576 1.29*** 1.20*** 8.49***
2008 (17.85) (14.99) 488,561 1.34 1.15 7.08
2007 (7.72) 2.31 606,908 1.32 1.13 6.65
2006 16.90 7.57 626,836 1.13 1.13 6.51
2005 6.11 6.09 617,358 1.13 1.13 6.39
2004 12.45 11.10 619,118 1.15 1.15 6.64
========================================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
--------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++ Income++ Rate
-------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.90%*** 1.31%*** 7.83%*** 1%
2008 1.44 .95 7.09 10
2007 .91 .77 7.18 5
2006 .70 .70 7.11 5
2005 .67 .67 7.12 2
2004 .69 .69 7.32 3
DIVIDEND ADVANTAGE 3 (NZF)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.05*** .95*** 8.73*** 1
2008 1.02 .83 7.39 7
2007 .93 .75 7.03 14
2006 .68 .68 6.96 9
2005 .68 .68 6.84 3
2004 .69 .69 7.10 3
=================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; income ratios reflect income earned on assets
attributable to Auction Rate Preferred shares or Variable Rate Demand
Preferred shares, respectively.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 107
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price 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
108 Nuveen Investments
by the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 109
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
invest- ment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short- term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportion- ately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
110 Nuveen Investments
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 111
Notes
112 Nuveen Investments
Notes
Nuveen Investments 113
Notes
114 Nuveen Investments
OTHER USEFUL INFORMATION
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regard- ing how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NPP -- 571
NMA -- 1,719
NMO -- 600
NAD -- --
NXZ -- --
NZF -- 1,353
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 115
NUVEEN INVESTMENTS:
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $115 billion of
assets on March 31, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
It's not what you earn,
it's what you keep.(R)
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-B-0409D
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.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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: See
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: See 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/ Kevin J. McCarthy
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Kevin J. McCarthy
(Vice President and Secretary)
Date: July 8, 2009
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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 8, 2009
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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 8, 2009
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