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, 2010
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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
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Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
April 30, 2010
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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
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NUVEEN DIVIDEND NUVEEN DIVIDEND
ADVANTAGE ADVANTAGE
MUNICIPAL FUND 2 MUNICIPAL FUND 3
NXZ NZF
(APRIL 10)
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OR
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If you receive your Nuveen Fund dividends and statements directly from Nuveen.
[LOGO]
NUVEEN
INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The economic environment in which your Fund operates reflects continuing but
uneven economic recovery. The U.S. and other major industrial countries are
experiencing steady but comparatively low levels of economic growth, while
emerging market countries are seeing a resumption of relatively strong economic
expansion. The potential impact of steps being considered by many governments to
counteract the extraordinary governmental spending and credit expansion to deal
with the recent financial and economic crisis is injecting uncertainty into
global financial markets. The implications for future tax rates, government
spending, interest rates and the pace of economic recovery in the U.S. and other
leading economies are extremely difficult to predict at the present time. The
long term health of the global economy depends on restoring some measure of
fiscal discipline around the world, but since all of the corrective steps
require economic pain, it is not surprising that governments are reluctant to
undertake them.
In the near term, governments remain committed to furthering economic recovery
and realizing a meaningful reduction in their national unemployment rates. Such
an environment should produce continued economic growth and, consequently,
attractive investment opportunities. Over the longer term, the larger
uncertainty mentioned earlier carries the risk of unexpected potholes in the
road to sustained recovery. For this reason, Nuveen's investment management
teams are working hard to balance return and risk by building well-diversified
portfolios, among other strategies. I encourage you to read the following
commentary on the management of your Fund. As always, I also encourage you to
contact your financial consultant if you have any questions about your Nuveen
Fund investment. Please consult the Nuveen web site for the most recent
information on your Nuveen Funds at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
June 21, 2010
Nuveen Investments 1
Portfolio Managers' Comments
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Nuveen Municipal Advantage Fund, Inc. (NMA)
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Nuveen Dividend Advantage Municipal Fund (NAD)
Nuveen Dividend Advantage Municipal Fund 2 (NXZ)
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
PORTFOLIO MANAGERS TOM SPALDING AND PAUL BRENNAN 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 THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2010?
Municipal market conditions began to show general signs of improvement
throughout most of the period. This trend was bolstered by the reduced issuance
of tax-exempt municipal debt in the marketplace, due in part to the introduction
of the Build America Bond program in April 2009. Build America Bonds are a new
class of taxable municipal debt created as part of the February 2009 economic
stimulus package. These bonds currently offer municipal issuers a federal
subsidy equal to 35% of the bonds' interest payments and therefore provide
issuers with an attractive alternative to traditional tax-exempt debt. For the
six-month period ended April 30, 2010, taxable Build America Bond issuance
totaled $48.9 billion, accounting for almost 24% of new bonds in the municipal
marketplace nationwide.
Despite the constrained issuance of tax-exempt municipal bonds, we continued to
find attractive value opportunities, taking a bottom-up approach to discovering
undervalued sectors and individual credits with the potential to perform
relatively well over the long term. Areas of the market where we found value
during this period included essential services bonds such as general obligation
(GO) and other tax-supported credits, health care, education, transportation
(specifically tollroads and airports) and water and sewer.
Some of the areas of investment opportunity that we discovered during this
period were created by the parameters of the Build America Bond program. For
example, tax-exempt supply was usually more plentiful in the health care and
higher education sectors because, as 501(c)(3) (nonprofit) organizations,
hospitals and private universities generally do not qualify for the Build
America Bond program and must continue to issue bonds in the tax-exempt
municipal market. In addition, health care entities were active
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
issuers during this period, as they sought to replace variable rate issuance
with fixed rates. Refunding issues also are not covered by the Build America
Bond program, and this resulted in attractive opportunities in sectors such as
airports and tollroads. The impact of the Build America Bond program was also
evident in the area of longer-term issuance, as municipal issuers sought to take
full advantage of the attractive financing terms offered by these bonds.
Approximately 70% of Build America Bonds were issued with maturities of 30 years
or more. Even though this significantly reduced the availability of tax-exempt
credits with longer maturities, we continued to find good opportunities to
purchase attractive longer-term bonds for these Funds. These bonds helped us to
extend the durations of Funds such as NXZ and NZF that were slightly short of
our target duration range and also rewarded investors as the yield curve
remained steep. In Funds with longer durations, we tended to focus more on
intermediate maturity bonds with higher coupons.
Cash for new purchases during this period was generated primarily by the
proceeds from bond calls and redemptions. NZF also trimmed holdings of
pre-refunded bonds through selling and redemptions. In general, selling was very
limited during this period because the bonds in our portfolios offered higher
yields than those available in the current marketplace.
As of April 30, 2010, all six of these Funds continued to use inverse floating
rate securities.(1) We employ inverse floaters for a variety of reasons,
including leverage, duration management and both income and total return
enhancement.
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 4/30/10
6-MONTH 1-YEAR 5-YEAR 10-YEAR
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NPP 6.04% 16.83% 4.38% 6.81%
NMA 6.29% 19.14% 4.02% 6.83%
NMO 6.31% 17.64% 3.73% 6.09%
NAD 6.31% 20.93% 4.31% 7.45%
NXZ 6.06% 18.32% 4.82% N/A
NZF 5.87% 18.23% 4.72% N/A
Standard & Poor's (S&P) National Municipal Bond Index(2) 3.85% 10.04% 4.35% 5.73%
Lipper General Leveraged Municipal Debt Funds Average(3) 6.90% 22.67% 3.84% 6.38%
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For the six months ended April 30, 2010, the cumulative returns on common share
net asset value (NAV) for all six of these Funds exceeded the return for the
Standard & Poor's (S&P) National Municipal Bond Index. For the same period, the
Funds lagged the average return for the Lipper General Leveraged Municipal Debt
Funds Average.
* 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 an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
(2) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
(3) 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: 6-month, 54 funds; 1-year, 54 funds; 5-year, 52 funds; and
10-year, 38 funds. Lipper returns account for the effects of management
fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges. The Lipper average is not available for direct
investment.
Nuveen Investments 3
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, the use of leverage was an important positive factor
affecting the Funds' performances over this period. The impact of leverage is
discussed in more detail on page five.
During this period, bonds with longer maturities generally outperformed credits
with shorter maturities, with bonds at the longest end of the yield curve
posting the strongest returns. The outperformance of longer bonds was due in
part to the decline in interest rates, particularly at the longer end of the
curve. The scarcity of tax-exempt bonds with longer maturities also drove up the
prices of these bonds. Overall, duration and yield curve positioning were
positive for the performances of all six of these Funds during this period.
Credit exposure also played a role in performance of these funds. The demand for
municipal bonds increased during the period driven by a variety of factors,
including concerns about potential tax increases, the need to rebalance
portfolio allocations and a growing appetite for additional risk. At the same
time, the supply of issuance of new tax-exempt municipal securities declined. As
investors bid up municipal bond prices, bonds rated BBB or below generally
outperformed those rated AAA. In this environment, the Funds' performances
benefited from their allocations to lower quality credits. This was especially
true in NMA, which had the heaviest weightings of bonds rated BBB or lower and
non-rated bonds among these six Funds.
Holdings that generally contributed positively to the Fund's performance during
this period included industrial development revenue, health care and housing
bonds. Revenue bonds as a whole performed well, with transportation, leasing and
special tax among the sectors outperforming the general municipal market for
this period. Zero coupon bonds also were among the strongest performers, as were
lower-rated tobacco bonds backed by the 1998 master tobacco settlement
agreement.
Pre-refunded bonds, which are often backed by U.S. Treasury securities,
performed relatively poorly during this period. The underperformance of these
bonds can be attributed primarily to their shorter effective maturities and
higher credit quality. As of April 30, 2010, NXZ and NZF had the largest
exposures to pre-refunded bonds, while NAD had the smallest allocation. On the
whole, general obligation (GO) bonds lagged the overall municipal market by a
small margin, while water and sewer, education, electric utilities, and resource
recovery bonds trailed the other revenue sectors for the six months.
4 Nuveen Investments
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of most of these Funds relative to
the comparative index was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total return for common shareholders.
However, use of leverage also can expose common shareholders to additional
volatility. For example, as the prices of securities held by a Fund decline, the
negative impact of these valuation changes on common share net asset value and
common shareholder total return is magnified by the use of leverage. Conversely,
leverage may enhance common share returns during periods when bond prices
generally are rising.
Leverage made a positive contribution to the performance of these Funds over
this reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
Shortly after their inceptions, each of the Funds issued auction rate preferred
shares (ARPS) to create financial leverage. As noted in past shareholder
reports, the ARPS issued by many closed-end funds, including these Funds, have
been hampered by a lack of liquidity since February 2008. Since that time, more
ARPS have been submitted for sale in each of their regularly scheduled auctions
than there have been offers to buy. In fact, offers to buy have been almost
completely non-existent since late February 2008. This means that these auctions
have "failed to clear," and that many, or all, of the ARPS shareholders who
wanted to sell their shares in these auctions were unable to do so. This lack of
liquidity in ARPS did not lower the credit quality of these shares, and ARPS
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 ARPS. In the recent market, with short-term rates
at multi-generational lows, those maximum rates also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
Nuveen Investments 5
As noted in past shareholder reports, the Nuveen funds' Board of
Directors/Trustees authorized several methods to refinance a portion of the
Nuveen funds' outstanding ARPS. Some funds have utilized tender option bonds
(TOBs), also known as floating rate securities, for leverage purposes. The
amount of TOBs that a fund may use varies according to the composition of each
fund's portfolio. Some funds have a greater ability to use TOBs than others.
Some funds have issued Variable Rate Demand Preferred Shares (VRDP), but these
issuances have been limited since it has been difficult to find liquidity
providers on economically viable terms given the constrained credit environment.
Some funds have issued MuniFund Term Preferred Shares (MTP), a fixed rate form
of preferred stock with a mandatory redemption period of five years.
While all these efforts have reduced the total amount of outstanding ARPS issued
by the Nuveen funds, the Funds cannot provide any assurance on when the
remaining outstanding ARPS might be redeemed.
On April 9, 2010, twenty-six Nuveen leveraged closed-end funds, including NAD,
NXZ and NZF, received a demand letter from a law firm on behalf of each fund's
common shareholders, alleging that Nuveen and the fund's officers and Board of
Directors/Trustees breached their fiduciary duties related to the redemption at
par of the fund's ARPS. The funds' independent Board is evaluating the demand
letter for each fund.
As of April 30, 2010, the amounts of ARPS redeemed at par by the following Funds
are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NPP $ 59,100,000 12.3%
NMA $ 358,000,000 100.0%
NMO $ 380,000,000 100.0%
NAD $ 174,925,000 59.3%
NXZ $ 222,000,000 100.0%
NZF $ 75,050,000 24.1%
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As of April 30, 2010, NAD had issued and outstanding $144.3 million of MTP, and
NMA, NMO and NXZ had issued and outstanding $296.8, $350.9 and $196.0 million of
VRDP, respectively. (Refer to Notes to Financial Statements, Footnote 1 -
General Information and Significant Accounting Policies and Footnote 4 - Fund
Shares for further details on MTP and VRDP.)
During this six-month reporting period, NZF filed with the Securities and
Exchange Commission (SEC) a registration statement seeking to register MTP. This
registration statement, declared effective by the SEC, enables the Fund to issue
to the public shares of MTP to refinance all or a portion of its outstanding
ARPS. The issuance of MTP by the Fund is subject to market conditions. There is
no assurance that these MTP shares will be issued.
6 Nuveen Investments
As of April 30, 2010, 83 out of the 84 Nuveen closed-end municipal funds that
had issued ARPS have redeemed at par all or a portion of these shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS
redemptions to approximately $4.4 billion of the approximately $11.0 billion
originally outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at: http://www.nuveen.com/arps.
Nuveen Investments 7
Common Share Dividend and Share Price Information
During the six-month reporting period ended April 30, 2010, all six of the Funds
in this report each had one monthly dividend increase.
Due to normal portfolio activity, common shareholders of the following Funds
received capital gains and/or net ordinary income distributions at the end of
December 2009 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
FUND (PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPP $0.0136 $0.0004
NMA $0.0654 $0.0014
NXZ - $0.0139
NZF $0.0449 $0.0196
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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, 2010, all six
Funds in this report had positive UNII balances, based upon our best estimate,
for tax purposes and positive UNII balances for financial reporting purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Funds' repurchase program, the Funds have not
repurchased any of their outstanding common shares.
8 Nuveen Investments
As of April 30, 2010, the Funds' common share prices were trading at (-)
discounts to their common share NAVs as shown in the accompanying table.
4/30/10 SIX-MONTH AVERAGE
FUND (+) PREMIUM/(-) DISCOUNT (-) DISCOUNT
--------------------------------------------------------------------------------
NPP -4.29% -4.51%
NMA -0.56% -0.07%
NMO 0.00% -0.37%
NAD -1.47% -3.43%
NXZ -1.82% -2.01%
NZF -2.62% -3.71%
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Nuveen Investments 9
NPP Performance OVERVIEW | Nuveen Performance Plus Municipal Fund, Inc.
| as of April 30, 2010
FUND SNAPSHOT
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Common Share Price $ 14.28
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Common Share
Net Asset Value $ 14.92
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.29%
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Market Yield 6.39%
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Taxable-Equivalent Yield(1) 8.88%
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Net Assets Applicable to Common Shares ($000) $893,854
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.76
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.91
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AVERAGE ANNUAL TOTAL RETURN
(Inception 6/22/89)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 9.49% 6.04%
--------------------------------------------------------------------------------
1-Year 22.58% 16.83%
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5-Year 6.04% 4.38%
--------------------------------------------------------------------------------
10-Year 8.38% 6.81%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 16.8%
--------------------------------------------------------------------------------
California 10.7%
--------------------------------------------------------------------------------
Colorado 5.5%
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Florida 5.4%
--------------------------------------------------------------------------------
New Jersey 5.0%
--------------------------------------------------------------------------------
Texas 4.6%
--------------------------------------------------------------------------------
Massachusetts 4.1%
--------------------------------------------------------------------------------
Ohio 3.9%
--------------------------------------------------------------------------------
Indiana 3.7%
--------------------------------------------------------------------------------
Nevada 3.6%
--------------------------------------------------------------------------------
Washington 3.3%
--------------------------------------------------------------------------------
New York 3.1%
--------------------------------------------------------------------------------
Michigan 3.0%
--------------------------------------------------------------------------------
Louisiana 2.2%
--------------------------------------------------------------------------------
Utah 2.1%
--------------------------------------------------------------------------------
Minnesota 1.9%
--------------------------------------------------------------------------------
South Carolina 1.8%
--------------------------------------------------------------------------------
Iowa 1.6%
--------------------------------------------------------------------------------
Wisconsin 1.5%
--------------------------------------------------------------------------------
Pennsylvania 1.5%
--------------------------------------------------------------------------------
Other 14.7%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.9%
--------------------------------------------------------------------------------
Transportation 15.0%
--------------------------------------------------------------------------------
Tax Obligation/General 12.8%
--------------------------------------------------------------------------------
Health Care 11.4%
--------------------------------------------------------------------------------
Utilities 8.6%
--------------------------------------------------------------------------------
Consumer Staples 6.5%
--------------------------------------------------------------------------------
Other 9.6%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S. Guaranteed 42%
AA 18%
A 25%
BBB 12%
BB or Lower 1%
N/R 2%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
May $ 0.0680
Jun 0.0680
Jul 0.0680
Aug 0.0680
Sep 0.0720
Oct 0.0720
Nov 0.0720
Dec 0.0136
Dec 0.0004
Dec 0.0760
Jan 0.0760
Feb 0.0760
Mar 0.0760
Apr 0.0760
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/01/09 $ 12.52
12.88
12.84
12.84
12.82
12.78
12.35
12.32
12.70
12.80
12.95
12.99
13.06
13.07
13.22
13.12
13.28
13.38
13.67
13.90
14.02
14.14
14.30
14.02
13.48
13.70
13.48
13.68
13.58
13.63
13.63
13.93
13.95
13.76
13.92
14.06
14.05
14.05
14.09
14.12
14.23
14.26
14.02
14.19
14.26
14.23
14.35
14.33
14.25
14.25
14.22
14.29
4/30/10 14.28
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gain and net ordinary income
distribution in December 2009 of $0.014 per share.
(3) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
10 Nuveen Investments
NMA Performance OVERVIEW | Nuveen Municipal Advantage Fund, Inc.
| as of April 30, 2010
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S. Guaranteed 26%
AA 29%
A 22%
BBB 18%
BB or Lower 4%
N/R 1%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
May $ 0.0715
Jun 0.0715
Jul 0.0715
Aug 0.0715
Sep 0.0760
Oct 0.0760
Nov 0.0760
Dec 0.0654
Dec 0.0014
Dec 0.0810
Jan 0.0810
Feb 0.0810
Mar 0.0810
Apr 0.0810
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/01/09 $ 12.32
12.62
12.80
12.91
12.79
12.95
12.69
12.80
12.64
12.79
13.00
13.18
13.21
13.38
12.89
12.83
13.17
13.24
13.67
13.81
14.23
14.24
14.37
14.30
13.53
13.80
13.41
13.59
13.29
13.38
13.84
14.10
14.04
13.96
13.98
14.25
14.25
14.29
14.35
14.26
14.35
14.26
14.20
14.23
14.37
14.33
14.29
14.37
14.54
14.38
14.34
14.48
4/30/10 14.32
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gain and net ordinary income
distribution in December 2009 of $0.0668 per share.
(3) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.32
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.40
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.56%
--------------------------------------------------------------------------------
Market Yield 6.79%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.43%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $624,075
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 18.33
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.71
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/89)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 10.99% 6.29%
--------------------------------------------------------------------------------
1-Year 25.65% 19.14%
--------------------------------------------------------------------------------
5-Year 5.13% 4.02%
--------------------------------------------------------------------------------
10-Year 8.50% 6.83%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 12.3%
--------------------------------------------------------------------------------
Illinois 10.9%
--------------------------------------------------------------------------------
Texas 9.2%
--------------------------------------------------------------------------------
Louisiana 8.9%
--------------------------------------------------------------------------------
Washington 6.1%
--------------------------------------------------------------------------------
Colorado 5.4%
--------------------------------------------------------------------------------
Puerto Rico 4.3%
--------------------------------------------------------------------------------
Ohio 4.2%
--------------------------------------------------------------------------------
Nevada 4.1%
--------------------------------------------------------------------------------
Florida 2.9%
--------------------------------------------------------------------------------
Tennessee 2.6%
--------------------------------------------------------------------------------
New York 2.5%
--------------------------------------------------------------------------------
New Jersey 2.3%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
South Carolina 2.1%
--------------------------------------------------------------------------------
North Carolina 1.9%
--------------------------------------------------------------------------------
Massachusetts 1.6%
--------------------------------------------------------------------------------
Wisconsin 1.6%
--------------------------------------------------------------------------------
Oklahoma 1.6%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 19.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.2%
--------------------------------------------------------------------------------
Utilities 16.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.3%
--------------------------------------------------------------------------------
Tax Obligation/General 9.9%
--------------------------------------------------------------------------------
Transportation 9.9%
--------------------------------------------------------------------------------
Consumer Staples 6.1%
--------------------------------------------------------------------------------
Other 9.5%
--------------------------------------------------------------------------------
Nuveen Investments 11
NMO Performance OVERVIEW | Nuveen Municipal Market Opportunity Fund, Inc.
| as of April 30, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.96
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.96
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 0.00%
--------------------------------------------------------------------------------
Market Yield 6.88%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.56%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $636,756
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.74
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.15
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 8.49% 6.31%
--------------------------------------------------------------------------------
1-Year 27.46% 17.64%
--------------------------------------------------------------------------------
5-Year 6.19% 3.73%
--------------------------------------------------------------------------------
10-Year 7.69% 6.09%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 10.5%
--------------------------------------------------------------------------------
Washington 9.5%
--------------------------------------------------------------------------------
Illinois 6.8%
--------------------------------------------------------------------------------
Texas 5.8%
--------------------------------------------------------------------------------
Minnesota 5.0%
--------------------------------------------------------------------------------
Ohio 4.6%
--------------------------------------------------------------------------------
Colorado 4.5%
--------------------------------------------------------------------------------
Puerto Rico 4.3%
--------------------------------------------------------------------------------
New Jersey 4.3%
--------------------------------------------------------------------------------
Nevada 4.0%
--------------------------------------------------------------------------------
South Carolina 3.8%
--------------------------------------------------------------------------------
North Carolina 3.7%
--------------------------------------------------------------------------------
Pennsylvania 2.8%
--------------------------------------------------------------------------------
North Dakota 2.8%
--------------------------------------------------------------------------------
Massachusetts 2.7%
--------------------------------------------------------------------------------
New York 2.7%
--------------------------------------------------------------------------------
Georgia 2.6%
--------------------------------------------------------------------------------
Louisiana 2.0%
--------------------------------------------------------------------------------
Indiana 1.7%
--------------------------------------------------------------------------------
Michigan 1.6%
--------------------------------------------------------------------------------
Other 14.3%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 20.8%
--------------------------------------------------------------------------------
Transportation 16.8%
--------------------------------------------------------------------------------
Health Care 13.3%
--------------------------------------------------------------------------------
Tax Obligation/General 13.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.0%
--------------------------------------------------------------------------------
Utilities 8.1%
--------------------------------------------------------------------------------
Consumer Staples 7.0%
--------------------------------------------------------------------------------
Other 10.9%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(2)
[PIE CHART]
AAA/U.S. Guaranteed 39%
AA 22%
A 25%
BBB 10%
BB or Lower 3%
N/R 1%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
May $ 0.06900
Jun 0.06900
Jul 0.06900
Aug 0.06900
Sep 0.07400
Oct 0.07400
Nov 0.07400
Dec 0.08000
Jan 0.08000
Feb 0.08000
Mar 0.08000
Apr 0.08000
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/01/09 $ 11.79
11.97
12.10
12.26
12.22
12.10
11.84
11.84
11.89
11.90
11.99
12.11
12.37
12.56
12.79
12.84
12.82
12.84
13.25
13.30
13.40
13.32
13.54
13.63
12.92
13.38
13.32
13.30
12.97
12.85
13.12
13.51
13.41
13.29
13.44
13.35
13.42
13.63
13.66
13.73
13.98
14.01
13.79
13.96
13.98
14.07
14.08
14.19
14.08
14.05
13.90
14.12
4/30/10 13.96
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
12 Nuveen Investments
NAD Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund
| as of April 30, 2010
CREDIT QUALITY (AS A % OF TOTAL MUNICIPAL BONDS)(2)
[PIE CHART]
AAA/U.S. Guaranteed 26%
AA 32%
A 24%
BBB 11%
BB or Lower 5%
N/R 2%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
May $ 0.07150
Jun 0.07150
Jul 0.07150
Aug 0.07150
Sep 0.07400
Oct 0.07400
Nov 0.07400
Dec 0.07600
Jan 0.07600
Feb 0.07600
Mar 0.07600
Apr 0.07600
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/01/09 $ 11.80
12.11
12.20
12.50
12.50
12.44
12.13
12.28
12.24
12.32
12.50
12.58
12.67
12.64
12.73
12.54
12.75
12.84
13.41
13.63
13.96
13.89
13.94
13.65
13.04
13.19
12.89
13.15
12.82
13.04
13.13
13.19
13.29
13.23
13.39
13.50
13.45
13.48
13.62
13.77
13.77
13.58
13.40
13.70
13.86
13.84
13.94
13.94
14.04
14.01
13.95
14.07
14.09
4/30/10
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.09
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.30
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.47%
--------------------------------------------------------------------------------
Market Yield 6.47%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.99%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $561,828
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.28
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.87
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 12.97% 6.31%
--------------------------------------------------------------------------------
1-Year 28.39% 20.93%
--------------------------------------------------------------------------------
5-Year 5.65% 4.31%
--------------------------------------------------------------------------------
10-Year 7.96% 7.45%
--------------------------------------------------------------------------------
STATES
(as a % of total municipal bonds)
--------------------------------------------------------------------------------
Illinois 20.7%
--------------------------------------------------------------------------------
Washington 7.4%
--------------------------------------------------------------------------------
Florida 7.1%
--------------------------------------------------------------------------------
New York 5.3%
--------------------------------------------------------------------------------
Louisiana 4.7%
--------------------------------------------------------------------------------
New Jersey 4.5%
--------------------------------------------------------------------------------
Texas 4.5%
--------------------------------------------------------------------------------
Pennsylvania 4.5%
--------------------------------------------------------------------------------
Wisconsin 4.4%
--------------------------------------------------------------------------------
California 4.4%
--------------------------------------------------------------------------------
Colorado 3.8%
--------------------------------------------------------------------------------
Nevada 3.5%
--------------------------------------------------------------------------------
Indiana 3.4%
--------------------------------------------------------------------------------
Puerto Rico 3.3%
--------------------------------------------------------------------------------
Michigan 2.7%
--------------------------------------------------------------------------------
Ohio 2.1%
--------------------------------------------------------------------------------
Other 13.7%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 20.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.7%
--------------------------------------------------------------------------------
Transportation 15.8%
--------------------------------------------------------------------------------
Tax Obligation/General 15.1%
--------------------------------------------------------------------------------
Consumer Staples 6.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 5.7%
--------------------------------------------------------------------------------
Utilities 5.0%
--------------------------------------------------------------------------------
Investment Companies 0.1%
--------------------------------------------------------------------------------
Other 13.0%
--------------------------------------------------------------------------------
Nuveen Investments 13
NXZ Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund 2
| as of April 30, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.55
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.82
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.82%
--------------------------------------------------------------------------------
Market Yield 6.60%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.17%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $436,377
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.81
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.33
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 6.46% 6.06%
--------------------------------------------------------------------------------
1-Year 21.48% 18.32%
--------------------------------------------------------------------------------
5-Year 5.36% 4.82%
--------------------------------------------------------------------------------
Since Inception 6.21% 6.87%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 18.0%
--------------------------------------------------------------------------------
Illinois 9.1%
--------------------------------------------------------------------------------
California 8.4%
--------------------------------------------------------------------------------
Michigan 7.6%
--------------------------------------------------------------------------------
Colorado 6.7%
--------------------------------------------------------------------------------
New York 6.5%
--------------------------------------------------------------------------------
New Mexico 3.8%
--------------------------------------------------------------------------------
Louisiana 3.4%
--------------------------------------------------------------------------------
Minnesota 3.1%
--------------------------------------------------------------------------------
Alabama 3.1%
--------------------------------------------------------------------------------
Florida 2.9%
--------------------------------------------------------------------------------
Washington 2.8%
--------------------------------------------------------------------------------
Kansas 2.7%
--------------------------------------------------------------------------------
Massachusetts 2.5%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
Oregon 2.1%
--------------------------------------------------------------------------------
Other 12.9%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 31.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.2%
--------------------------------------------------------------------------------
Health Care 13.4%
--------------------------------------------------------------------------------
Transportation 13.2%
--------------------------------------------------------------------------------
Consumer Staples 6.8%
--------------------------------------------------------------------------------
Utilities 4.5%
--------------------------------------------------------------------------------
Other 11.7%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S. Guaranteed 46%
AA 10%
A 24%
BBB 10%
BB or Lower 8%
N/R 2%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
May $ 0.0730
Jun 0.0730
Jul 0.0730
Aug 0.0730
Sep 0.0780
Oct 0.0780
Nov 0.0780
Dec 0.0139
Dec 0.0800
Jan 0.0800
Feb 0.0800
Mar 0.0800
Apr 0.0800
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/01/09 $ 12.76
12.96
13.08
12.91
12.98
13.15
12.85
12.66
12.67
12.76
12.75
12.86
12.96
13.13
13.13
12.89
13.24
13.43
13.79
14.09
14.25
14.19
14.37
14.30
13.75
14.45
14.14
14.20
13.70
13.67
13.76
14.00
13.91
13.90
13.78
14.38
14.43
14.41
14.50
14.53
14.62
14.66
14.30
14.21
14.44
14.30
14.47
14.50
14.50
14.67
14.50
14.55
4/30/10 14.55
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a net ordinary income distribution in December
2009 of $0.0139 per share.
(3) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
14 Nuveen Investments
NZF Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund 3
| as of April 30, 2010
CREDIT QUALITY (AS A % OF TOTAL MUNICIPAL BONDS)(3)
[PIE CHART]
AAA/U.S. Guaranteed 40%
AA 21%
A 20%
BBB 8%
BB or Lower 2%
N/R 9%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
May $ 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0449
Dec 0.0196
Dec 0.0780
Jan 0.0780
Feb 0.0780
Mar 0.0780
Apr 0.0780
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/01/09 $ 12.25
12.46
12.50
12.70
12.61
12.66
12.29
12.42
12.52
12.51
12.60
12.67
12.80
13.04
12.99
12.99
13.16
13.44
13.59
13.83
13.86
13.78
13.97
13.74
13.26
13.54
13.38
13.51
13.09
13.17
13.33
13.48
13.39
13.33
13.40
13.45
13.67
13.63
13.70
13.96
14.14
14.16
13.99
14.02
14.07
13.91
14.04
14.01
14.07
14.15
14.02
14.20
4/30/10 14.10
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gain and net ordinary income
distribution in December 2009 of $0.0645 per share.
(3) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.10
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.48
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.62%
--------------------------------------------------------------------------------
Market Yield 6.64%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.22%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $584,560
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.79
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.97
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 9.47% 5.87%
--------------------------------------------------------------------------------
1-Year 24.87% 18.23%
--------------------------------------------------------------------------------
5-Year 6.17% 4.72%
--------------------------------------------------------------------------------
Since Inception 5.81% 6.40%
--------------------------------------------------------------------------------
STATES
(as a % of total municipal bonds)
--------------------------------------------------------------------------------
Texas 14.1%
--------------------------------------------------------------------------------
Washington 10.5%
--------------------------------------------------------------------------------
Illinois 9.7%
--------------------------------------------------------------------------------
California 8.7%
--------------------------------------------------------------------------------
Michigan 6.3%
--------------------------------------------------------------------------------
Colorado 4.3%
--------------------------------------------------------------------------------
Iowa 4.0%
--------------------------------------------------------------------------------
Indiana 3.9%
--------------------------------------------------------------------------------
New Jersey 3.0%
--------------------------------------------------------------------------------
New York 3.0%
--------------------------------------------------------------------------------
Wisconsin 2.9%
--------------------------------------------------------------------------------
Louisiana 2.9%
--------------------------------------------------------------------------------
Kentucky 2.3%
--------------------------------------------------------------------------------
Missouri 2.0%
--------------------------------------------------------------------------------
Massachusetts 1.9%
--------------------------------------------------------------------------------
Nevada 1.8%
--------------------------------------------------------------------------------
Maryland 1.7%
--------------------------------------------------------------------------------
Oregon 1.7%
--------------------------------------------------------------------------------
Georgia 1.5%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 23.4%
--------------------------------------------------------------------------------
Transportation 17.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.6%
--------------------------------------------------------------------------------
Health Care 15.3%
--------------------------------------------------------------------------------
Utilities 5.3%
--------------------------------------------------------------------------------
Water and Sewer 4.5%
--------------------------------------------------------------------------------
Consumer Staples 4.0%
--------------------------------------------------------------------------------
Investment Companies 0.4%
--------------------------------------------------------------------------------
Other 13.0%
--------------------------------------------------------------------------------
Nuveen Investments 15
NPP | Nuveen Performance Plus Municipal Fund, Inc.
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.1% (0.1% OF TOTAL INVESTMENTS)
Jefferson County, Alabama, Sewer Revenue Refunding Warrants,
Series 1997A:
$ 1,435 5.625%, 2/01/22 - FGIC Insured 7/10 at 100.00 Caa3 $ 524,980
1,505 5.375%, 2/01/27 - FGIC Insured 7/10 at 100.00 Caa3 546,149
------------------------------------------------------------------------------------------------------------------------------------
2,940 Total Alabama 1,071,129
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,465 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,657,047
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/12 at 100.00 AAA 1,096,300
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- 5,647,628
5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AA- 5,273,679
------------------------------------------------------------------------------------------------------------------------------------
11,420 Total Arizona 12,017,607
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.5% (0.4% OF TOTAL INVESTMENTS)
5,080 Independence County, Arkansas, Hydroelectric Power Revenue 5/13 at 100.00 N/R 3,783,736
Bonds, Series 2003, 5.350%, 5/01/28 - ACA Insured
1,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 Baa1 958,820
Regional Medical Center, Series 2005A, 5.000%, 2/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,080 Total Arkansas 4,742,556
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.8% (10.7% OF TOTAL INVESTMENTS)
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A- 2,809,905
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/25 - AMBAC Insured
11,000 Anaheim Public Finance Authority, California, Subordinate Lease No Opt. Call AAA 6,587,130
Revenue Bonds, Public Improvement Project, Series 1997C,
0.000%, 9/01/20 - AGM 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 4,459,040
3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,499,993
3,365 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,271,049
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+ 4,799,800
7,000 5.250%, 4/01/39 4/16 at 100.00 A+ 6,968,710
2,380 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 2,319,167
Bonds, J. David Gladstone Institutes, Series 2001, 5.250%,
10/01/34
3,500 California Pollution Control Financing Authority, Revenue Bonds, 6/17 at 100.00 A3 3,431,890
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 A1 5,017,250
3/01/31
6,435 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call A1 7,481,524
6.000%, 4/01/16 - AMBAC Insured
16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A1 15,881,920
2007, 5.000%, 6/01/37
5,000 Coast Community College District, Orange County, California, 8/18 at 100.00 AAA 4,047,700
General Obligation Bonds, Series 2006C, 0.000%, 8/01/32 - AGM
Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 11,675,700
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
1,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,047,585
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 6,529,000
Tobacco Settlement Asset-Backed Bonds, Series 2007A-2,
0.000%, 6/01/37
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 5,500 Los Angeles Department of Water and Power, California, 7/12 at 100.00 AA $ 5,565,065
Waterworks Revenue Bonds, Series 2003A, 5.125%, 7/01/40 -
FGIC Insured
3,300 M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup No Opt. Call A 3,664,749
Prepay Contracts, Series 2009B, 6.500%, 11/01/39
1,000 Mt. Diablo Hospital District, California, Insured Hospital 6/10 at 100.00 N/R (4) 1,116,330
Revenue Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC Insured
(ETM)
13,450 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 15,245,844
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.200%, 8/01/17 - NPFG Insured
2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,062,746
Restructured Single Family Mortgage Revenue Bonds, Series
1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) (ETM)
1,830 San Diego Public Facilities Financing Authority, California, 8/19 at 100.00 Aa2 2,384,234
Water Utility Revenue Bonds, Tender Option Bond Trust 3504,
19.460%, 8/01/39 (IF)
2,000 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 A1 2,015,440
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 County, No Opt. Call A 422,760
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - NPFG Insured
2,885 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 2,692,542
Settlement Asset-Backed Bonds, Series 2005A-1, 4.750%, 6/01/23
13,780 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AA- 15,277,748
California, General Obligation Refunding Bonds, Series 1997A,
7.200%, 2/01/16 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
145,925 Total California 141,274,821
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.1% (5.5% OF TOTAL INVESTMENTS)
5,240 Adams 12 Five Star Schools, Adams County, Colorado, General 12/15 at 100.00 AAA 5,650,711
Obligation Bonds, Series 2005, 5.000%, 12/15/24 - AGM Insured
3,000 Colorado Educational and Cultural Facilities Authority, Charter 8/14 at 100.00 A 2,979,390
School Revenue Bonds, Peak-to-Peak Charter School, Series
2004, 5.250%, 8/15/34 - SYNCORA GTY Insured
7,660 Colorado Health Facilities Authority, Revenue Refunding and 7/10 at 100.00 A2 7,665,285
Improvement Bonds, Boulder Community Hospital, Series 1994B,
5.875%, 10/01/23 - NPFG Insured
5,860 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA (4) 6,219,101
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
(Pre-refunded 9/01/11)
4,500 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 4,753,845
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) 22,423,600
Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%,
12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY Insured
12,855 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call A 6,553,093
Series 1997B, 0.000%, 9/01/21 - NPFG Insured
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 2000B:
16,200 0.000%, 9/01/32 - NPFG Insured No Opt. Call A 3,709,314
33,120 0.000%, 9/01/33 - NPFG Insured No Opt. Call A 7,083,043
18,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 3,254,705
Series 2004A, 0.000%, 3/01/36 - NPFG Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 873,588
Obligation Bonds, Series 2004, 5.000%,12/15/22 - AGM Insured
(UB)
1,330 University of Colorado Hospital Authority, Revenue Bonds, Series 5/10 at 101.00 A3 1,270,868
1999A, 5.000%, 11/15/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
129,020 Total Colorado 72,436,543
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,870 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 4,897,516
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 A1 4,797,800
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,870 Total District of Columbia 9,695,316
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 17
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 8.0% (5.4% OF TOTAL INVESTMENTS)
$ 1,700 Beacon Tradeport Community Development District, Miami-Dade 5/12 at 102.00 N/R $ 1,614,728
County, Florida, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
Broward County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Venice Homes Apartments, Series 2001A:
1,545 5.700%, 1/01/32 - AGM Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,552,138
1,805 5.800%, 1/01/36 - AGM Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,813,935
5,300 Escambia County Health Facilities Authority, Florida, Revenue No Opt. Call Aa1 5,997,427
Bonds, Ascension Health Credit Group, Series 2003A, 5.250%,
11/15/14
2,020 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 7/10 at 100.00 AAA 2,021,919
Bonds, Series 2000-11, 5.850%, 1/01/22 - AGM Insured
(Alternative Minimum Tax)
4,990 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/16 at 100.00 AA+ 4,999,431
Bonds, Series 2006-2, 4.950%, 7/01/37 (Alternative Minimum Tax)
10,050 Florida State Board of Education, Full Faith and Credit Public 6/10 at 101.00 AAA 10,197,836
Education Capital Outlay Refunding Bonds, Series 2000D,
5.750%, 6/01/22
7,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 Aa3 7,304,570
Tampa International Airport, Series 2003A, 5.250%, 10/01/17 -
NPFG Insured (Alternative Minimum Tax)
10,000 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 10,187,200
5.000%, 10/01/41 - AGM Insured (UB)
10,750 Martin County Industrial Development Authority, Florida, 6/10 at 100.00 BB+ 10,748,495
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 2,589,712
Multifamily Mortgage Revenue Bonds, Country Club Villas II
Project, Series 2001-1A, 5.850%, 1/01/37 - AGM Insured
(Alternative Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 3,258,220
International Airport, Series 2005A, 5.000%, 10/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
5,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/20 at 100.00 A2 5,073,500
International Airport, Series 2010A-1, 5.375%, 10/01/41
4,500 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 4,018,815
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/40 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
70,730 Total Florida 71,377,926
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8% (0.6% OF TOTAL INVESTMENTS)
5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series No Opt. Call A1 5,458,100
1999A, 5.500%, 11/01/22 - FGIC Insured
2,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 A 2,023,720
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - NPFG Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Georgia 7,481,820
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS)
290 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa3 295,748
Bonds, Series 2000D, 6.200%, 7/01/14 (Alternative Minimum Tax)
275 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa2 282,871
Bonds, Series 2000G-2, 5.950%, 7/01/25 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
565 Total Idaho 578,619
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 24.9% (16.8% OF TOTAL INVESTMENTS)
10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call Aa2 6,580,800
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 Aa2 6,220,000
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 Aa2 19,802,244
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call Aa2 18,846,996
9,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1996A, 7/10 at 100.00 A 9,245,452
5.500%, 1/01/29 - NPFG Insured
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,665 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 A1 $ 1,669,779
Bonds, 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 6,011,120
15,285 0.000%, 11/01/19 No Opt. Call AAA 10,915,171
1,500 Illinois Finance Authority, Revenue Bonds, Central DuPage 11/19 at 100.00 AA 1,564,245
Health, Series 2009B, 5.500%, 11/01/39
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 2,012,120
Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC
Insured (UB)
5,245 Illinois Finance Authority, Revenue Bonds, Loyola 7/17 at 100.00 Aa1 5,529,751
University of Chicago, Tender Option Bond Trust 1137,
9.186%, 7/01/46 (IF)
3,000 Illinois Finance Authority, Revenue Bonds, Memoirial Health No Opt. Call A+ 3,004,050
System, Series 2009, 5.500%, 4/01/34
1,000 Illinois Finance Authority, Revenue Bonds, University of 7/14 at 100.00 Aa1 1,023,720
Chicago, Series 2004A, 5.000%, 7/01/34
2,000 Illinois Finance Authority, Revenue Refunding Bonds, Silver 8/18 at 100.00 BBB 2,045,640
Cross Hospital and Medical Centers, Series 2008A,
6.000%, 8/15/23
4,590 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,596,518
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 AA+ 1,202,019
Forest Hospital, Series 2002A, 5.750%, 7/01/29
3,610 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 AA+ 3,716,423
Forest Hospital, Series 2003, 6.000%, 7/01/33
4,580 Illinois Health Facilities Authority, Revenue Bonds, 8/10 at 102.00 Aaa 4,687,767
Midwest Care Center IX Inc., Series 2000, 6.250%, 8/20/35
2,225 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/10 at 100.50 BBB 2,250,031
Cross Hospital and Medical Centers, Series 1999, 5.250%,
8/15/15 (Mandatory put 8/15/11)
7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, 12/13 at 57.71 AA+ 3,490,948
Community College District 516, General Obligation
Bonds, Series 2005E, 0.000%, 12/15/24 - FGIC Insured
6,000 McHenry County Conservation District, Illinois, General 2/11 at 100.00 Aaa 6,240,060
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 5,068,650
Revenue Bonds, McCormick Place Expansion Project, Series
2002A, 5.250%, 6/15/42 - NPFG Insured
10,650 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 14,293,685
Revenue Bonds, McCormick Place Hospitality Facility,
Series 1996A, 7.000%, 7/01/26 (ETM)
Metropolitan Pier and Exposition Authority, Illinois,
Revenue Refunding Bonds, McCormick Place Expansion
Project, Series 1996A:
9,400 0.000%, 12/15/18 - NPFG Insured No Opt. Call A1 6,433,548
16,570 0.000%, 12/15/20 - NPFG Insured No Opt. Call A1 10,022,862
23,550 0.000%, 12/15/22 - NPFG Insured No Opt. Call A1 12,563,925
13,000 0.000%, 12/15/24 - NPFG Insured No Opt. Call A1 6,057,740
5,100 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 5,757,951
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 A1 (4) 6,161,351
Revenue Refunding Bonds, McCormick Place Expansion
Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured
(ETM)
3,000 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 3,230,550
Revenue Refunding Bonds, McCormick Place Expansion
Project, Series 2002B, 5.750%, 6/15/23 - NPFG Insured
17,865 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 20,509,556
Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1999, 5.750%, 6/01/23 - AGM
Insured
6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding Bonds, 10/10 at 101.00 AAA 6,219,291
Villa Vianney, Series 1999A, 6.450%, 10/01/29
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aa2 5,537,500
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/23 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
288,615 Total Illinois 222,511,463
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 19
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.4% (3.7% OF TOTAL INVESTMENTS)
$ 2,465 Danville Multi-School Building Corporation, Indiana, First 7/11 at 100.00 A $ 2,570,058
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 2,671,590
Revenue Bonds, Cardinal Health System, Series 2006, 5.250%,
8/01/36
14,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 A+ (4) 14,420,280
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - NPFG Insured
750 Indiana Health Facility Financing Authority, Hospital Revenue 2/16 at 100.00 A+ 758,588
Bonds, Clarian Health Obligation Group, Series 2006B,
5.000%, 2/15/23
2,210 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,508,328
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - AGM Insured
4,320 Indiana Health Facility Financing Authority, Revenue Bonds, 7/10 at 100.00 A (4) 4,337,064
Ancilla Systems Inc. Obligated Group, Series 1997, 5.250%,
7/01/22 - NPFG Insured (ETM)
3,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 2,942,010
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 1,880,500
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) 1,323,589
6,715 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 6,916,651
3,105 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 3,415,283
5.250%, 8/01/20 - FGIC Insured
1,000 Marion County Convention and Recreational Facilities 6/11 at 100.00 A 1,008,360
Authority, Indiana, Excise Taxes Lease Rental Revenue
Refunding Senior Bonds, Series 2001A, 5.000%,
6/01/21 - NPFG Insured
2,395 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AA+ 2,424,363
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/26
- NPFG Insured
1,800 Sunman Dearborn High School Building Corporation, Indiana, 1/15 at 100.00 AA+ 1,890,630
First Mortgage Bonds, Series 2005, 5.000%, 7/15/25 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
48,045 Total Indiana 49,067,294
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,500 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 1,279,635
Initiatives Project, Series 2006A, 5.500%, 7/01/21
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
5,000 5.375%, 6/01/38 6/15 at 100.00 BBB 3,716,000
4,365 5.500%, 6/01/42 6/15 at 100.00 BBB 3,223,945
5,400 5.625%, 6/01/46 6/15 at 100.00 BBB 4,039,632
4,500 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 4,035,240
Revenue Bonds, Series 2005B, 5.600%, 6/01/34
5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 5,298,250
Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
25,765 Total Iowa 21,592,702
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 4,135,875
Series 2004A, 5.000%, 3/01/23 (UB)
5,790 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 5,806,444
General Obligation Bonds, Series 2000, 3.500%, 9/01/17
3,200 Wyandotte County Unified School District 500, Kansas, General 9/11 at 100.00 AAA 3,228,608
Obligation Bonds, Series 2001, 4.000%, 9/01/21 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Kansas 13,170,927
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2% (2.2% OF TOTAL INVESTMENTS)
540 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/10 at 100.50 Aaa 540,486
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 Bonds, 11/14 at 100.00 A1 4,227,280
Series 2004, 5.250%, 11/01/25 - NPFG Insured
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 4,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A $ 4,654,836
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG
Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
10,000 5.500%, 5/15/30 5/11 at 101.00 BBB 10,013,100
9,305 5.875%, 5/15/39 5/11 at 101.00 BBB 9,021,384
------------------------------------------------------------------------------------------------------------------------------------
28,495 Total Louisiana 28,457,086
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,680 Portland, Maine, Airport Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AAA 5,764,348
7/01/32 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4% (0.9% OF TOTAL INVESTMENTS)
7,720 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 A2 7,837,267
Bonds, Baltimore-Washington International Airport Passenger
Facility, Series 2002B, 5.125%, 3/01/20 - AMBAC Insured
(Alternative Minimum Tax)
4,380 Takoma Park, Maryland, Hospital Facilities Revenue Refunding and No Opt. Call AAA 4,708,850
Improvement Bonds, Washington Adventist Hospital, Series
1995, 6.500%, 9/01/12 - AGM Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,100 Total Maryland 12,546,117
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.1% (4.1% OF TOTAL INVESTMENTS)
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
4,000 5.125%, 8/01/28 - NPFG Insured 2/12 at 100.00 A 4,004,640
5,625 5.125%, 2/01/34 - NPFG Insured 2/12 at 100.00 A 5,567,400
8,730 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA 9,056,502
Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%,
10/01/19 - AGC Insured
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 480,875
Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.125%,
7/01/38
1,530 Massachusetts Health and Educational Facilities Authority, 7/10 at 100.00 A2 1,390,770
Revenue Bonds, Southcoast Health System Obligated Group,
Series 1998A, 4.750%, 7/01/27 - NPFG Insured
5,745 Massachusetts Industrial Finance Agency, Resource Recovery 6/10 at 101.00 BBB 5,672,268
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
13,675 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 13,675,274
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
890 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/12 at 100.00 Aa1 (4) 981,652
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 Aa1 (4) 1,387,942
3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 Aa1 (4) 4,141,708
8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 A (4) 8,554,400
Massachusetts, Lease Revenue Bonds, Series 2000, 5.375%,
6/15/33 (Pre-refunded 6/15/10) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
54,195 Total Massachusetts 54,913,431
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.4% (3.0% OF TOTAL INVESTMENTS)
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 A1 4,880,750
Bonds, Series 2005A, 5.000%, 7/01/35 - NPFG Insured
1,430 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 Aa3 1,448,218
Program, Series 2001I, 5.000%, 10/15/24
70 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ (4) 74,387
Program, Series 2001I, 5.000%, 10/15/24 (Pre-refunded
10/15/11)
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 Aa3 5,029,800
Facilities Program, Series 2003II, 5.000%, 10/15/29 - NPFG
Insured
7,115 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 7,953,147
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 9/10 at 101.00 A 3,000,120
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured
(Alternative Minimum Tax)
Nuveen Investments 21
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 2,836,836
Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%,
6/01/42
2,500 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 8/19 at 100.00 A1 2,643,700
and Refunding Bonds, William Beaumont Hospital Obligated
Group, Series 2009W, 6.375%, 8/01/29
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 1,361,600
Bonds, William Beaumont Hospital, Refunding Series 2009V,
8.250%, 9/01/39
10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 6/10 at 100.50 A 10,119,600
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/16 - NPFG Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
38,315 Total Michigan 39,348,158
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.8% (1.9% OF TOTAL INVESTMENTS)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 3,099,750
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC Insured
18,075 St. Paul Housing and Redevelopment Authority, Minnesota, Sales 11/15 at 103.00 AAA 21,779,652
Tax Revenue Refunding Bonds, Civic Center Project, Series
1996, 7.100%, 11/01/23 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
21,075 Total Minnesota 24,879,402
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.4% (0.9% OF TOTAL INVESTMENTS)
9,750 Mississippi Business Finance Corporation, Pollution Control 10/10 at 100.00 BBB 9,748,928
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
2,475 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,540,761
Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%,
9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
12,225 Total Mississippi 12,289,689
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS)
6,350 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 A+ 6,791,897
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 1,934,114
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) 4,045,426
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28
(Pre-refunded 6/01/11) - AMBAC Insured
2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,020,560
Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink
Cross County Extension Project, Series 2002B, 5.000%,
10/01/32 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
14,010 Total Missouri 14,791,997
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.5% (0.3% OF TOTAL INVESTMENTS)
415 Montana Board of Housing, Single Family Mortgage Bonds, Series 6/10 at 100.00 AA+ 422,200
2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
4,795 Montana Higher Education Student Assistance Corporation, Student 6/10 at 100.50 A2 4,126,337
Loan Revenue Bonds, Subordinate Series 1998B, 5.500%,
12/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,210 Total Montana 4,548,537
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
840 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 870,324
Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.2% (3.6% OF TOTAL INVESTMENTS)
10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AA (4) 11,947,054
Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) - NPFG
Insured
24,195 Clark County, Nevada, Passenger Facility Charge Revenue Bonds, 1/20 at 100.00 Aa3 24,155,804
Las Vegas-McCarran International Airport, Series 2010A,
5.250%, 7/01/42
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
3,500 0.000%, 1/01/21 - AMBAC Insured No Opt. Call Caa2 581,490
2,780 0.000%, 1/01/28 - AMBAC Insured No Opt. Call Caa2 306,273
6,980 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 2,241,906
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 5,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 A $ 5,017,400
Healthcare West, Series 2007A, 5.250%, 7/01/31
2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,775,700
Healthcare West, Trust 2634, 18.389%, 7/01/31 - BHAC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
55,855 Total Nevada 47,025,627
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 New Hampshire Business Finance Authority, Revenue Bonds, Elliot 10/19 at 100.00 BBB+ 5,087,350
Hospital Obligated Group Issue, Series 2009A, 6.125%,
10/01/39
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 3,770,482
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,027,715
------------------------------------------------------------------------------------------------------------------------------------
15,670 Total New Hampshire 15,885,547
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.4% (5.0% OF TOTAL INVESTMENTS)
2,110 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 Aaa 2,136,987
Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - NPFG Insured
(Alternative Minimum Tax)
4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 5,152,230
System Bonds, Series 2001C, 5.500%, 12/15/18 - AGM Insured
9,250 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 10,503,468
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 - AGM Insured No Opt. Call AAA 12,423,600
10,000 0.000%, 12/15/30 - FGIC Insured No Opt. Call AA- 2,999,700
10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,513,300
5.000%, 1/01/20 - AGM Insured (UB)
10,055 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 10,777,452
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
4,450 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 5,204,587
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 N/R (4) 3,205,566
3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 N/R (4) 3,393,829
------------------------------------------------------------------------------------------------------------------------------------
91,850 Total New Jersey 66,310,719
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.6% (3.1% OF TOTAL INVESTMENTS)
5,500 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 5,652,460
Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%,
2/15/25
1,910 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 100.00 N/R 1,912,846
Bonds, 853 Schools Program, Gateway-Longview Inc., Series
1998A, 5.500%, 7/01/18 - AMBAC Insured
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 8/10 at 100.00 N/R 1,517,655
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 1,501,305
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 Tax 11/12 at 100.00 AAA 13,946,439
Fund Bonds, Series 2002A, 5.500%, 11/15/26 - AGM Insured
13,600 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 13,428,912
Revenue Bonds, Series 2006B, 4.500%, 11/15/32 - AGM Insured
(UB)
3,000 New York State Energy Research and Development Authority, 9/10 at 100.00 A 3,002,130
Pollution Control Revenue Bonds, Rochester Gas and Electric
Corporation, Series 1998A, 5.950%, 9/01/33 - NPFG Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
40,230 Total New York 40,961,747
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7% (1.1% OF TOTAL INVESTMENTS)
$ 5,500 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- $ 5,576,835
Carolinas HealthCare System Revenue Bonds, Series 2008A,
5.000%, 1/15/39
4,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 5,630,737
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
3,500 North Carolina Medical Care Commission, Healthcare Facilities 6/19 at 100.00 AA 3,566,395
Revenue Bonds, Duke University Health System, Series 2009A,
5.000%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
13,900 Total North Carolina 14,773,967
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.8% (3.9% OF TOTAL INVESTMENTS)
10,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 10,269,300
Prairie State Energy Campus Project Series 2008A, 5.250%,
2/15/43
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
5,705 5.125%, 6/01/24 6/17 at 100.00 BBB 5,270,279
5,640 5.875%, 6/01/30 6/17 at 100.00 BBB 4,775,896
4,875 5.750%, 6/01/34 6/17 at 100.00 BBB 3,835,699
3,045 6.000%, 6/01/42 6/17 at 100.00 BBB 2,353,389
14,830 5.875%, 6/01/47 6/17 at 100.00 BBB 11,131,695
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,481,143
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, 7/10 at 101.00 AAA 6,727,862
5.000%, 1/01/31 - AGM Insured
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,740,338
Initiatives, Series 2004A, 5.000%, 5/01/30
------------------------------------------------------------------------------------------------------------------------------------
59,615 Total Ohio 51,585,601
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0% (0.7% OF TOTAL INVESTMENTS)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call BBB 9,175,620
Portland General Electric Company, Series 1985B, 4.800%,
6/01/10
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.1% (1.5% OF TOTAL INVESTMENTS)
1,250 Allegheny County Hospital Development Authority, Pennsylvania, No Opt. Call Aa3 1,280,025
University of Pittsburgh Medical Center Revenue Bonds,
Series 2009A, 5.500%, 8/15/34
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Guaranteed Water Revenue Bonds, Series 1998:
3,125 0.000%, 5/15/22 - AGM Insured No Opt. Call AAA 1,899,594
3,125 0.000%, 5/15/23 - AGM Insured No Opt. Call AAA 1,799,531
3,135 0.000%, 5/15/24 - AGM Insured No Opt. Call AAA 1,707,572
3,155 0.000%, 5/15/26 - AGM Insured No Opt. Call AAA 1,537,873
4,145 0.000%, 11/15/26 - AGM Insured No Opt. Call AAA 1,975,714
2,800 0.000%, 5/15/28 - AGM Insured No Opt. Call AAA 1,223,040
3,000 0.000%, 11/15/28 - AGM Insured No Opt. Call AAA 1,280,670
1,035 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,034,990
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,800 Pennsylvania Economic Development Financing Authority, Senior 7/10 at 100.00 CC 1,684,060
Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.500%, 1/01/13
(Alternative Minimum Tax)
100 Pennsylvania Economic Development Financing Authority, 7/10 at 100.00 N/R 28,500
Subordinate Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994C, 6.875%, 1/01/11
(Alternative Minimum Tax)
5,000 Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue 6/26 at 100.00 AAA 3,763,650
Bonds, Series 2009C, 0.000%, 6/01/33 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
32,670 Total Pennsylvania 19,215,219
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,250 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,274,213
Revenue Bonds, Series 2000B, 5.875%, 7/01/21 (Pre-refunded
7/01/10) - NPFG Insured
13,125 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/29 at 100.00 A+ 7,815,019
Bonds, First Subordinate Series 2010A, 0.000%, 8/01/33
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO (continued)
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue
Bonds, Series 2007A:
$ 25,000 0.000%, 8/01/47 - AMBAC Insured No Opt. Call Aa2 $ 2,645,500
30,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call Aa2 1,892,400
3,750 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 Aa2 3,882,900
Bonds, Tender Option Bonds Trust 3101, 18.119%, 8/01/57 (IF)
------------------------------------------------------------------------------------------------------------------------------------
73,125 Total Puerto Rico 17,510,032
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 A 2,039,920
Bonds, Series 2002A, 5.000%, 7/15/23 - NPFG Insured
Rhode Island Health and Educational Building Corporation,
Revenue Refunding Bonds, Salve Regina University, Series
2002:
1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 N/R 1,291,538
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 N/R 1,102,918
1,600 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 1,551,920
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
5,940 Total Rhode Island 5,986,296
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.7% (1.8% OF TOTAL INVESTMENTS)
2,625 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 A 2,715,379
FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%,
2/15/25 - NPFG Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, Series 2004A-2:
26,955 0.000%, 1/01/31 - AMBAC Insured No Opt. Call A- 8,469,800
14,700 0.000%, 1/01/32 - AMBAC Insured No Opt. Call A- 4,339,881
8,330 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 8,608,639
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
52,610 Total South Carolina 24,133,699
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,860 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 A (4) 2,884,625
Tennessee, Hospital Revenue Refunding and Improvement Bonds,
Johnson City Medical Center, Series 1998C, 5.125%, 7/01/25
(Pre-refunded 7/01/23) - NPFG Insured
600 Memphis-Shelby County Airport Authority, Tennessee, Airport 9/10 at 101.00 A2 606,324
Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured
(Alternative Minimum Tax)
6,000 Metropolitan Government of Nashville-Davidson County Health and 12/17 at 100.00 N/R 6,782,580
Educational Facilities Board, Tennessee, Revenue Refunding
and Improvement Bonds, Meharry Medical College, Series 1996,
6.000%, 12/01/19 - AMBAC Insured
2,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 1,854,900
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Refunding Series 200A, 5.486%, 9/01/32
------------------------------------------------------------------------------------------------------------------------------------
11,460 Total Tennessee 12,128,429
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.8% (4.6% OF TOTAL INVESTMENTS)
5,000 Bexar Metropolitan Water District, Texas, Waterworks System 5/16 at 100.00 A1 5,030,900
Revenue Bonds, Series 2006, 5.000%, 5/01/35 - NPFG Insured
2,500 Capital Area Cultural Education Facilities Finance Corporation, 4/20 at 100.00 Aaa 2,513,675
Texas, Revenue Bonds, The Roman Catholic Diocese of Austin,
Series 2005B. Remarketed, 6.125%, 4/01/45
Central Texas Regional Mobility Authority, Travis and
Williamson Counties, Toll Road Revenue Bonds, Series 2005:
4,000 5.000%, 1/01/35 - FGIC Insured 1/15 at 100.00 A 3,572,960
13,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 A 11,487,970
1,025 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 A 964,228
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
NPFG Insured
4,000 Houston Community College System, Texas, Limited Tax General 2/13 at 100.00 AA+ 4,104,440
Obligation Bonds, Series 2003, 5.000%, 2/15/27 - AMBAC
Insured (UB)
3,885 Houston Independent School District, Public Facility No Opt. Call AA 2,761,613
Corporation, Harris County, Texas, Lease Revenue Bonds,
Cesar E. Chavez High School, Series 1998A, 0.000%, 9/15/19 -
AMBAC Insured
Nuveen Investments 25
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,600 Houston, Texas, Senior Lien Airport System Revenue Bonds, 7/18 at 100.00 AA- $ 1,709,392
Refunding Series 2009A, 5.500%, 7/01/39
33,855 Leander Independent School District, Williamson and Travis 8/14 at 23.67 AAA 6,433,127
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/40
19,300 Leander Independent School District, Williamson and Travis 8/17 at 24.20 AAA 3,219,047
Counties, Texas, General Obligation Bonds, Series 2008,
0.000%, 8/15/41
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 7/10 at 57.46 AAA 2,816,706
3,705 0.000%, 8/15/22 7/10 at 51.20 AAA 1,881,510
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 5.000%, 3/12 at 100.00 Aaa 3,752,832
3/01/27 (Pre-refunded 3/01/12) - FGIC Insured
6,000 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 6,217,560
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 Refunding 3/13 at 100.00 AAA 4,283,840
and Improvement Bonds, Series 1999, 5.000%, 3/01/22 - AGM
Insured
------------------------------------------------------------------------------------------------------------------------------------
110,280 Total Texas 60,749,800
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.1% (2.1% OF TOTAL INVESTMENTS)
3,000 Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, 8/19 at 100.00 AA+ 3,062,400
Inc., Series 2009, 5.000%, 8/15/41
Utah County, Utah, Hospital Revenue Bonds, IHC Health Services
Inc., Series 1997:
12,885 5.250%, 8/15/21 - NPFG Insured (ETM) 8/10 at 100.00 A (4) 12,935,766
3,900 5.250%, 8/15/26 - NPFG Insured (ETM) 8/10 at 100.00 A (4) 3,915,365
1,805 Utah Housing Corporation, Single Family Mortgage Bonds, Series 1/12 at 100.00 AA- 1,805,631
2002A-1, 5.300%, 7/01/18 (Alternative Minimum Tax)
500 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 509,574
Series 2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax)
510 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 510,932
Series 2000E-1, Class II, 6.150%, 1/01/27 (Alternative
Minimum Tax)
680 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 692,866
Series 2000E-1, Class III, 6.000%, 1/01/15 (Alternative
Minimum Tax)
715 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA 721,292
Series 2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax)
520 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 100.00 Aaa 537,321
Series 2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax)
3,000 Utah Water Finance Agency, Revenue Bonds, Pooled Loan Financing 10/12 at 100.00 N/R (4) 3,304,380
Program, Series 2002C, 5.250%, 10/01/28 (Pre-refunded
10/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,515 Total Utah 27,995,527
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 BBB+ 4,536,346
Loan Note, Series 2003, 5.000%, 10/01/33 - RAAI Insured
2,500 Virgin Islands Public Finance Authority, Revenue Bonds,
Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22 1/14 at 100.00 Baa3 2,522,975
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Virgin Islands 7,059,321
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
10,500 Metropolitan Washington DC Airports Authority, Virginia, Dulles 10/26 at 100.00 AAA 7,635,914
Toll Road Revenue Bonds, Series 2009C, 0.000%, 10/01/41 -
AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.9% (3.3% OF TOTAL INVESTMENTS)
12,235 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AA 5,425,243
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/26 - NPFG Insured
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
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 A1 $ 481,818
3,100 5.000%, 9/01/28 - FGIC Insured 9/14 at 100.00 A1 3,152,916
5,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/13 at 100.00 Aaa 5,576,349
Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB)
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 7/19 at 100.00 A 2,065,259
Fred Hutchinson Cancer Research Center, Series 2009A,
6.000%, 1/01/33
10,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AA 9,848,500
Bonds, Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured (UB)
5,000 Washington State Housing Finance Commission, Non-Profit Housing 7/10 at 100.50 N/R 5,004,500
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+ (4) 12,399,000
Series 2001D, 5.250%, 1/01/26 (Pre-refunded 1/01/11)
------------------------------------------------------------------------------------------------------------------------------------
49,800 Total Washington 43,953,585
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,049,300
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.2% (1.5% OF TOTAL INVESTMENTS)
11,620 Wisconsin Health and Educational Facilities Authority, Revenue 8/10 at 101.00 BBB+ 11,648,818
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/29 -
RAAI Insured
8,355 Wisconsin Housing and Economic Development Authority, Home 9/14 at 100.00 AA 7,936,749
Ownership Revenue Bonds, Series 2005C, 4.875%, 3/01/36
(Alternative Minimum Tax) (UB)
------------------------------------------------------------------------------------------------------------------------------------
19,975 Total Wisconsin 19,585,567
------------------------------------------------------------------------------------------------------------------------------------
$ 1,645,710 Total Investments (cost $1,280,293,947) - 148.1% 1,323,806,376
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.8)% (42,630,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.7)% 32,578,076
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (47.0)% (6) (419,900,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 893,854,452
====================================================================================================================
(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.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 31.7%
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 27
NMA | Nuveen Municipal Advantage Fund, Inc.
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 5,075 Lauderdale County and Florence Healthcare Authority, Alabama, 7/10 at 100.50 A $ 4,615,357
Revenue Bonds, Coffee Health Group, Series 1999A, 5.250%,
7/01/24 - NPFG Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 4,772,396
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,230 Total Alabama 9,387,753
------------------------------------------------------------------------------------------------------------------------------------
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 1,156,286
1,280 5.250%, 12/01/41 - FGIC Insured (UB) 12/14 at 100.00 AA 1,308,685
Northern Tobacco Securitization Corporation, Alaska, Tobacco
Settlement Asset-Backed Bonds, Series 2006A:
920 4.625%, 6/01/23 6/14 at 100.00 Baa3 913,275
3,250 5.000%, 6/01/46 6/14 at 100.00 Baa3 2,184,748
------------------------------------------------------------------------------------------------------------------------------------
6,575 Total Alaska 5,562,994
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.0% (1.3% OF TOTAL INVESTMENTS)
4,905 Maricopa County Industrial Development Authority, Arizona, 7/17 at 100.00 A 4,945,417
Health Facility Revenue Bonds, Catholic Healthcare West,
Series 2007A, 5.250%, 7/01/32
5,000 Maricopa County Pollution Control Corporation, Arizona, 11/22 at 100.00 Baa3 4,974,000
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- 2,531,600
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
12,405 Total Arizona 12,451,017
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 18.7% (12.3% OF TOTAL INVESTMENTS)
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A- 2,809,905
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 A1 964,916
6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call A1 1,330,908
3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,916,240
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 A2 7,221,225
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 3,061,795
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 A1 11,349,296
2/01/28
16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A1 15,881,920
2007, 5.000%, 6/01/37
9,955 Capistrano Unified School District, Orange County, No Opt. Call A 2,440,966
California, Special Tax Bonds, Community Facilities
District, Series 2005, 0.000%, 9/01/31 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,800 0.000%, 2/01/33 - FGIC Insured 2/15 at 38.73 Aa3 855,684
3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call Aa3 672,132
7,355 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,484,787
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 Aa1 3,502,594
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 Aa3 838,792
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2004B, 0.000%, 10/01/28 -
NPFG Insured
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,360 Folsom Cordova Unified School District, Sacramento County, No Opt. Call Aa2 $ 1,195,522
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2002A, 0.000%, 7/01/27 -
NPFG Insured
2,315 Gateway Unified School District, California, General No Opt. Call A1 561,642
Obligation Bonds, Series 2004B, 0.000%, 8/01/32 - FGIC
Insured
3,000 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,190,670
Enhanced Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 0.000%, 6/01/26 - AGM Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 698,390
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
5,000 Los Angeles Department of Water and Power, California, 7/12 at 100.00 AA 5,059,150
Waterworks Revenue Bonds, Series 2003A,
5.125%, 7/01/40 - FGIC Insured
1,275 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,349,906
General Obligation Bonds, Series 2002, 5.250%, 8/01/23 -
AGM Insured
2,200 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 2,443,166
Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39
North Orange County Community College District, California,
General Obligation Bonds, Series 2003B:
7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call Aa1 3,391,101
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call Aa1 1,632,680
5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 5,385,900
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 6,266,600
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 11,834,055
Single Family Mortgage Revenue Bonds, Series 1989A,
7.600%, 1/01/23 (Alternative Minimum Tax) (ETM)
1,830 San Diego Public Facilities Financing Authority, California, 8/19 at 100.00 Aa2 2,384,234
Water Utility Revenue Bonds, Tender Option Bond Trust
3504, 19.460%, 8/01/39 (IF)
7,660 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 4,427,940
County, California, Senior Lien Toll Road Revenue Bonds,
Series 1993, 0.000%, 1/01/24 (ETM)
23,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 3,241,160
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - NPFG Insured
7,250 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 Aa1 2,273,600
County, California, General Obligation Bonds, Series
2005A, 0.000%, 9/01/29 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
178,930 Total California 116,666,876
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.2% (5.4% OF TOTAL INVESTMENTS)
1,600 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 1,453,712
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 9,017,371
Bonds, Catholic Health Initiatives, Series 2006A, 4.500%,
9/01/38
3,335 Colorado Health Facilities Authority, Colorado, Revenue 7/19 at 100.00 AA 3,549,574
Bonds, Catholic Health Initiatives, Series 2009A, 5.500%,
7/01/34
1,150 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,166,135
Valley Health System, Series 2005C, 5.250%, 3/01/40 - AGM
Insured
3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 A+ 3,466,914
Series 2006, 5.000%, 11/15/24 - FGIC Insured
Denver, Colorado, Airport Revenue Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,668,820
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,531,506
2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 1,636,840
Revenue Bonds, Convention Center Hotel, Series 2006,
4.750%, 12/01/35 - SYNCORA GTY Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
2,650 0.000%, 9/01/16 - NPFG Insured No Opt. Call A 1,929,624
8,645 0.000%, 9/01/26 - NPFG Insured No Opt. Call A 3,040,533
Nuveen Investments 29
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA $ 1,038,150
Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) - NPFG
Insured
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 2000B:
7,500 0.000%, 9/01/29 - NPFG Insured No Opt. Call A 2,124,900
10,000 0.000%, 9/01/31 - NPFG Insured No Opt. Call A 2,445,900
10,000 0.000%, 9/01/32 - NPFG Insured No Opt. Call A 2,289,700
Platte River Power Authority, Colorado, Power Revenue Refunding
Bonds, Series 2002EE:
1,030 5.375%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 AA (4) 1,128,664
4,890 5.375%, 6/01/18 (Pre-refunded 6/01/12) 6/12 at 100.00 AA (4) 5,358,413
Platte River Power Authority, Colorado, Power Revenue Refunding
Bonds, Series 2002EE:
970 5.375%, 6/01/17 6/12 at 100.00 AA 1,046,446
110 5.375%, 6/01/18 6/12 at 100.00 AA 117,845
------------------------------------------------------------------------------------------------------------------------------------
77,320 Total Colorado 51,011,047
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,200 District of Columbia Housing Finance Agency, GNMA/FNMA Single 6/10 at 100.00 AAA 1,212,036
Family Mortgage Revenue Bonds, Series 1997B, 5.900%,
12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.4% (2.9% OF TOTAL INVESTMENTS)
2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,783,130
Stratford Point Apartments, Series 2000O-1, 5.850%, 12/01/31
- AGM Insured (Alternative Minimum Tax)
14,730 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 14,473,993
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 6/10 at 100.00 Aaa 10,280,937
Health System - St. Mary's Hospital, Series 1993, 5.125%,
12/01/23 - NPFG Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
27,630 Total Florida 27,538,060
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.3% (0.9% OF TOTAL INVESTMENTS)
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 10/14 at 100.00 AAA 4,163,560
2004, 5.250%, 10/01/39 - AGM Insured
2,900 Coffee County Hospital Authority, Georgia, Revenue Bonds, 12/14 at 100.00 BBB- 2,669,885
Coffee County Regional Medical Center, Series 2004, 5.000%,
12/01/26
1,250 DeKalb County Hospital Authority, Georgia, Revenue Anticipation 9/20 at 100.00 N/R 1,255,613
Certificates, DeKalb Medical Center, Inc. Project, Series
2010, 6.000%, 9/01/30 (WI/DD, Settling 5/03/10)
------------------------------------------------------------------------------------------------------------------------------------
8,150 Total Georgia 8,089,058
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,215 Hawaii Housing and Community Development Corporation, GNMA 7/10 at 102.00 N/R (4) 2,283,045
Collateralized Multifamily Housing Revenue Bonds, Sunset
Villas, Series 2000, 5.700%, 7/20/31 (Pre-refunded 7/20/10)
285 Hawaii Housing Finance and Development Corporation, Single 7/10 at 100.00 AAA 288,662
Family Mortgage Purchase Revenue Bonds, Series 1997A,
5.750%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Hawaii 2,571,707
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.5% (10.9% OF TOTAL INVESTMENTS)
4,345 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call Aa2 1,601,133
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 Aa2 1,305,690
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 5,985,115
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 A2 4,952,250
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
1,500 Illinois Finance Authority, Revenue Bonds, Central DuPage 11/19 at 100.00 AA 1,564,245
Health, Series 2009B, 5.500%, 11/01/39
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 2,012,120
Hospital, Series 2008A, 5.250%, 8/15/47 - AGC Insured (UB)
8,395 Illinois Finance Authority, Revenue Bonds, Loyola University of 7/17 at 100.00 Aa1 8,850,765
Chicago, Tender Option Bond Trust 1137, 9.186%, 7/01/46 (IF)
2,500 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 2,661,100
Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 4,000 Illinois Finance Authority, Revenue Refunding Bonds, Silver 8/18 at 100.00 BBB $ 4,091,280
Cross Hospital and Medical Centers, Series 2008A, 6.000%,
8/15/23
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 6,586,860
Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded
5/15/12)
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 8/10 at 100.00 A 6,168,083
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 5,827,417
Wauconda, Illinois, General Obligation Bonds, Series 2005B,
0.000%, 1/01/23 - AGM Insured
1,090 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A1 638,958
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 6/10 at 101.00 AAA 13,638,661
10,430 5.250%, 12/15/28 - FGIC Insured 6/10 at 101.00 AAA 10,541,914
3,175 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 502,698
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/41 - NPFG Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A1 2,871,840
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 6/15/24 - NPFG Insured
4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call Aa2 5,653,906
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- 1,998,549
Bonds, Series 2003A, 5.000%, 4/01/23 - AMBAC Insured
7,500 Valley View Public Schools, Community Unit School District 365U No Opt. Call AA 3,535,725
of Will County, Illinois, General Obligation Bonds, Series
2005, 0.000%, 11/01/25 - NPFG Insured
23,125 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aa2 12,059,688
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/24 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
132,085 Total Illinois 103,047,997
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.4% (2.2% OF TOTAL INVESTMENTS)
1,810 Hospital Authority of Delaware County, Indiana, Hospital 8/10 at 100.00 N/R 1,762,126
Revenue Refunding Bonds, Cardinal Health System, Series
1997, 5.000%, 8/01/16 - AMBAC Insured
4,030 Indiana Finance Authority Health System Revenue Bonds, Sisters 11/19 at 100.00 Aa3 4,117,693
of St. Francis Health Services, Inc. Obligated Group, Series
2009, 5.250%, 11/01/39
6,000 Indiana Finance Authority, Revenue Bonds, Trinity Health Care 12/19 at 100.00 AA 6,223,920
Group, Refunding Series 2009A, 5.250%, 12/01/38
5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 A+ (4) 5,361,254
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/30 (Pre-refunded 8/15/10) - NPFG Insured
2,435 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 2,387,931
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
1,005 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/10 at 100.50 BB+ 997,653
Madison Center Inc., Series 1999, 5.450%, 2/15/12
------------------------------------------------------------------------------------------------------------------------------------
20,485 Total Indiana 20,850,577
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,300 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 4,682,160
Revenue Bonds, Series 2005C, 5.375%, 6/01/38
250 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue 6/17 at 100.00 BBB 224,180
Bonds, Series 2005B, 5.600%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total Iowa 4,906,340
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and 6/14 at 100.00 A 1,780,100
Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 6,015 Kentucky Economic Development Finance Authority, Hospital 6/20 at 100.00 Baa2 $ 6,206,397
Facilities Revenue Bonds, Owensboro Medical Health System,
Series 2010B, 6.375%, 3/01/40
1,500 Kentucky Economic Development Finance Authority, Hospital 8/19 at 100.00 Aa3 1,622,235
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 1,098,560
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008-A1, 6.000%, 12/01/33 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,515 Total Kentucky 8,927,192
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 13.6% (8.9% OF TOTAL INVESTMENTS)
13,500 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/10 at 101.00 BBB 13,539,015
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:
520 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 626,938
4,745 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 5,720,809
6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A 6,656,916
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG
Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 Baa1 8,177,220
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 26,657
Residuals 660-1, 15.661%, 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 Aa1 20,383,581
10,000 5.000%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa1 10,129,200
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
8,250 5.500%, 5/15/30 5/11 at 101.00 BBB 8,260,808
11,855 5.875%, 5/15/39 5/11 at 101.00 BBB 11,493,660
------------------------------------------------------------------------------------------------------------------------------------
85,238 Total Louisiana 85,014,804
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.4% (1.6% OF TOTAL INVESTMENTS)
620 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 603,155
Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.125%,
7/01/33
1,750 Massachusetts Health and Educational Facilities Authority, 7/10 at 100.50 BBB+ 1,627,325
Revenue Bonds, UMass Memorial Healthcare, Series 1998A,
5.000%, 7/01/28 - AMBAC Insured
2,300 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 2,346,575
Revenue Refunding Bonds, Suffolk University Issue, Series
2009A, 5.750%, 7/01/39
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
1,975 5.000%, 1/01/12 7/10 at 100.00 A 1,980,609
2,000 5.125%, 1/01/17 - NPFG Insured 7/10 at 100.00 A 2,002,300
1,095 5.000%, 1/01/27 - NPFG Insured 7/10 at 100.00 A 1,095,110
5,550 5.000%, 1/01/37 - NPFG Insured 7/10 at 100.00 A 5,550,111
------------------------------------------------------------------------------------------------------------------------------------
15,290 Total Massachusetts 15,205,185
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0% (1.3% OF TOTAL INVESTMENTS)
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Detroit Medical Center Obligated Group, Series 1998A:
4,995 5.250%, 8/15/23 8/10 at 100.00 Ba3 4,277,069
3,000 5.250%, 8/15/28 8/10 at 100.00 BB- 2,379,060
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/10 at 100.00 BB- 3,249,815
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 2,836,836
Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%,
6/01/42
------------------------------------------------------------------------------------------------------------------------------------
14,320 Total Michigan 12,742,780
------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) $ 5,166,250
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.9% (0.6% OF TOTAL INVESTMENTS)
12,005 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 4,263,336
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 -
AMBAC Insured
85 Missouri Housing Development Commission, Single Family Mortgage 9/10 at 101.00 AAA 90,283
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 1,515,420
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
13,590 Total Missouri 5,869,039
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.2% (4.1% OF TOTAL INVESTMENTS)
15,000 Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien 1/20 at 100.00 Aa3 15,935,850
Series 2010B, 5.750%, 7/01/42
7,310 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 Aaa 7,374,986
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 Aa3 (4) 7,648,050
Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) - NPFG
Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
3,025 0.000%, 1/01/16 - AMBAC Insured No Opt. Call Caa2 685,465
7,910 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 2,540,613
3,750 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 AA+ 4,311,000
Catholic Healthcare West, Series 2007B, Trust 2633, 18.667%,
7/01/31 - BHAC Insured (IF)
235 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/10 at 100.00 Aaa 234,981
Series 1997C-2, 5.750%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
44,730 Total Nevada 38,730,945
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 New Hampshire Business Finance Authority, Revenue Bonds, Elliot 10/19 at 100.00 BBB+ 1,526,205
Hospital Obligated Group Issue, Series 2009A, 6.125%,
10/01/39
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.5% (2.3% OF TOTAL INVESTMENTS)
15,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,499,550
System Bonds, Series 2006C, 0.000%, 12/15/30 - FGIC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
10,970 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 11,758,195
5,050 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 5,609,086
------------------------------------------------------------------------------------------------------------------------------------
31,020 Total New Jersey 21,866,831
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.2% (0.8% OF TOTAL INVESTMENTS)
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding 10/10 at 100.00 Baa3 7,500,375
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.9% (2.5% OF TOTAL INVESTMENTS)
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,157,290
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
4,975 New York City Industrial Development Agency, New York, Special 6/10 at 101.00 BB- 3,691,749
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, Special 12/12 at 101.00 BB- 2,985,300
Facilities Revenue Bonds, British Airways PLC, Series 2002,
7.625%, 12/01/32 (Alternative Minimum Tax)
10,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 10,336,900
Water and Sewerage System Revenue Bonds, Series 2004B,
5.000%, 6/15/36 - AGM Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
24,975 Total New York 24,171,239
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.8% (1.9% OF TOTAL INVESTMENTS)
$ 3,000 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 A- $ 3,189,930
Revenue Bonds, Series 2005, 5.250%, 1/01/20 - AMBAC Insured
1,025 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 1,025,482
Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 -
AMBAC Insured (Alternative Minimum Tax)
4,035 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 4,038,995
Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29
(Alternative Minimum Tax)
3,765 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 3,767,410
Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31
(Alternative Minimum Tax)
3,500 North Carolina Medical Care Commission, Healthcare Facilities 6/19 at 100.00 AA 3,566,395
Revenue Bonds, Duke University Health System, Series 2009A,
5.000%, 6/01/42
1,900 North Carolina Turnpike Authority, Triangle Expressway System 1/19 at 100.00 AAA 2,039,175
Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,225 Total North Carolina 17,627,387
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,250 Ward County Health Care, North Dakota, Revenue Bonds, Trinity 7/16 at 100.00 BBB+ 2,047,163
Obligated Group, Series 2006, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 6.4% (4.2% OF TOTAL INVESTMENTS)
4,630 Akron, Bath and Copley Joint Township Hospital District, Ohio, 5/10 at 101.00 Baa1 4,643,242
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 10,269,300
Prairie State Energy Campus Project Series 2008A, 5.250%,
2/15/43
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
855 5.125%, 6/01/24 6/17 at 100.00 BBB 789,849
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 2,286,333
9,135 5.750%, 6/01/34 6/17 at 100.00 BBB 7,187,509
3,920 6.000%, 6/01/42 6/17 at 100.00 BBB 3,029,650
5,895 5.875%, 6/01/47 6/17 at 100.00 BBB 4,424,905
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,481,143
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-3, 0.000%, 6/01/37
1,010 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 1,065,025
Program Residential Mortgage Revenue Bonds, Series 2000D,
5.450%, 9/01/31 (Alternative Minimum Tax)
2,650 Ohio, General Obligation Bonds, Higher Education, Series 2003A, 5/13 at 100.00 AA+ 2,763,367
5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
45,945 Total Ohio 39,940,323
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,746,891
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 11,187,480
John Health System, Series 2007, 5.000%, 2/15/42
2,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 A 1,868,140
Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,675 Total Oklahoma 14,802,511
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Oregon State Facilities Authority, Revenue Bonds, Willamette 10/17 at 100.00 A 2,864,490
University, Series 2007A, 5.000%, 10/01/36
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 Allegheny County Hospital Development Authority, Pennsylvania, No Opt. Call Aa3 5,139,750
University of Pittsburgh Medical Center Revenue Bonds, Series
2009A, 5.625%, 8/15/39
585 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 584,994
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,250 Erie Water Authority, Pennsylvania, Water Revenue Bonds, Series 12/18 at 100.00 AAA 1,276,188
2008, 5.000%, 12/01/43 - AGM Insured
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ $ 1,424,970
Revenue Bonds, Series 2006A, 4.650%, 10/01/31 (Alternative
Minimum Tax) (UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/14 at 100.00 Aa3 2,741,882
2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,935 Total Pennsylvania 11,167,784
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 6.5% (4.3% OF TOTAL INVESTMENTS)
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A3 5,083,850
Series 2005RR, 5.000%, 7/01/26 - SYNCORA GTY Insured
10,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/20 at 100.00 A3 10,731,600
Series 2010XX, 5.750%, 7/01/36
10,070 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 9,950,671
Revenue Bonds, Series 2007N, 5.250%, 7/01/39 - FGIC Insured
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/19 at 100.00 A+ 10,848,300
Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 5.625%, 7/10 at 100.00 A 4,007,360
7/01/19 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
39,070 Total Puerto Rico 40,621,781
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,235 Rhode Island Health and Educational Building Corporation, 5/10 at 100.00 A 1,236,630
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.500%, 5/15/16 - NPFG Insured
7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 6,733,790
Homeownership Opportunity Bond Program, Series 50A, 4.650%,
10/01/34
------------------------------------------------------------------------------------------------------------------------------------
8,235 Total Rhode Island 7,970,420
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.2% (2.1% OF TOTAL INVESTMENTS)
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA (4) 11,384,000
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) 2,874,650
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 Fee 6/14 at 100.00 A+ 2,973,960
Revenue Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC Insured
1,220 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call A 633,509
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 2,311,915
Bonds, Santee Cooper Electric System, Series 2003A, 5.000%,
1/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,845 Total South Carolina 20,178,034
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,945 South Dakota Health and Educational Facilities Authority, 5/17 at 100.00 AA- 2,940,406
Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/40
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 4.0% (2.6% OF TOTAL INVESTMENTS)
6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 6,364,440
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 13,902,003
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A, 0.000%, 1/01/18 - AGM Insured
1,750 Metropolitan Government of Nashville-Davidson County, Tennessee, 5/11 at 100.00 AA+ 1,787,293
Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26
2,000 Sullivan County Health Educational and Housing Facilities Board, 3/13 at 100.00 N/R 1,854,900
Tennessee, Revenue Bonds, Wellmont Health System, Refunding
Series 200A, 5.486%, 9/01/32
1,500 Sumner County Health, Educational, and Housing Facilities Board, 11/17 at 100.00 N/R 974,100
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007, 5.500%, 11/01/46 (7)
------------------------------------------------------------------------------------------------------------------------------------
31,665 Total Tennessee 24,882,736
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.1% (9.2% OF TOTAL INVESTMENTS)
2,000 Abilene Higher Education Authority, Inc., Texas, Student Loan 5/10 at 100.00 Aa3 2,003,300
Revenue Bonds, Subordinate Series 1998B, 5.050%, 7/01/13
(Alternative Minimum Tax)
Nuveen Investments 35
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 11,810 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC $ 11,490,185
Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%,
5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax)
6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston No Opt. Call BBB+ 5,564,280
Lighting and Power Company, Series 1998, 5.050%, 11/01/18 -
AMBAC Insured (Alternative Minimum Tax)
2,000 Capital Area Cultural Education Facilities Finance Corporation, 4/20 at 100.00 Aaa 2,010,940
Texas, Revenue Bonds, The Roman Catholic Diocese of Austin,
Series 2005B. Remarketed, 6.125%, 4/01/45
4,250 Ennis Independent School District, Ellis County, Texas, General 8/16 at 60.73 Aaa 1,955,298
Obligation Bonds, Series 2006, 0.000%, 8/15/26
8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 10/10 at 100.50 BBB 8,025,528
Revenue Bonds, Valero Energy Corporation, Series 1999,
5.700%, 4/01/32 (Alternative Minimum Tax)
7,500 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AA 7,596,825
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - NPFG Insured
1,540 Houston Community College System, Texas, Limited Tax General 2/13 at 100.00 AA+ 1,576,529
Obligation Bonds, Series 2003, 5.000%, 2/15/28 - AMBAC
Insured (UB)
3,460 Houston Community College System, Texas, Limited Tax General 2/13 at 100.00 AA+ (4) 3,829,424
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 N/R 5,665,735
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call N/R 2,151,500
9,345 Leander Independent School District, Williamson and Travis 8/15 at 35.34 AA- 2,525,019
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/34 - FGIC Insured
16,305 Matagorda County Navigation District 1, Texas, Revenue Bonds, 5/10 at 100.50 BBB- 16,078,197
Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30
(Alternative Minimum Tax)
North Texas Thruway Authority, First Tier System Revenue
Refunding Bonds, Capital Appreciation Series 2008I:
2,555 0.000%, 1/01/42 - AGC Insured 1/25 at 100.00 AAA 1,939,807
7,000 0.000%, 1/01/43 1/25 at 100.00 A2 5,399,660
3,425 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 3,339,238
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 System 10/12 at 100.00 Baa2 4,825,020
Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21
3,000 Wylie Independent School District, Taylor County, Texas, General 8/15 at 74.57 AAA 1,824,390
Obligation Bonds, Series 2005, 0.000%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
100,780 Total Texas 87,800,875
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, 8/19 at 100.00 AA+ 3,062,400
Inc., Series 2009, 5.000%, 8/15/41
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,480 Virgin Islands Public Finance Authority, Matching Fund Revenue 10/19 at 100.00 BBB 1,613,141
Loan Note - Diageo Project, Series 2009A, 6.750%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,855 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 1,791,684
Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46
940 Virginia Port Authority, Port Facilities Revenue Refunding 7/19 at 100.00 Aa3 973,502
Bonds, Series 2010, 5.000%, 7/01/40 (WI/DD, Settling 5/06/10)
------------------------------------------------------------------------------------------------------------------------------------
3,795 Total Virginia 2,765,186
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.3% (6.1% OF TOTAL INVESTMENTS)
1,260 Central Puget Sound Regional Transit Authority, Washington, 8/10 at 100.00 AAA 1,260,479
Sales Tax and Motor Vehicle Excise Tax Bonds, Series 1999,
4.750%, 2/01/28 - FGIC Insured
5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA 5,473,750
Consolidated System Revenue Bonds, Series 2002B, 5.250%,
7/01/37 (Mandatory put 7/01/12) - AMBAC Insured (Alternative
Minimum Tax)
Chelan County Public Utility District 1, Washington, Hydro
Consolidated System Revenue Bonds, Series 2001:
10,730 5.650%, 7/01/32 - NPFG Insured (Alternative Minimum Tax) (UB) 7/11 at 101.00 AA 10,809,508
8,810 5.600%, 1/01/36 - NPFG Insured (Alternative Minimum Tax) (UB) 7/11 at 101.00 AA 8,848,500
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 10,730 Pierce County School District 320, Sumner, Washington, Unlimited 12/10 at 100.00 Aa1 (4) $ 11,107,159
Tax General Obligation Bonds, Series 2000, 6.250%, 12/01/17
(Pre-refunded 12/01/10) - AGM Insured
10,550 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AAA 10,607,919
Bonds, Series 2000B, 5.750%, 12/01/25 (Alternative Minimum
Tax) (UB)
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 9/10 at 101.00 A 5,039,649
Terminal 18, Series 1999B, 6.000%, 9/01/20 - NPFG Insured
(Alternative Minimum Tax)
2,000 Washington Health Care Facilities Authority, Revenue Bonds, Fred 7/19 at 100.00 A 2,065,259
Hutchinson Cancer Research Center, Series 2009A, 6.000%,
1/01/33
2,200 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,211,681
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.625%,
6/01/32
1,270 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 687,806
Bonds, Series 2003F, 0.000%, 12/01/24 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
58,215 Total Washington 58,111,710
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,049,299
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.4% (1.6% OF TOTAL INVESTMENTS)
535 Badger Tobacco Asset Securitization Corporation, Wisconsin, No Opt. Call AAA 585,867
Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%,
6/01/12 (ETM)
4,920 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 5,268,483
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/27 (Pre-refunded 6/01/12)
565 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aa2 583,136
5.000%, 11/01/29 - AGM Insured
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 5,052,449
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, Sales No Opt. Call AA- 3,523,559
Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
14,020 Total Wisconsin 15,013,494
------------------------------------------------------------------------------------------------------------------------------------
$ 1,119,568 Total Investments (cost $939,205,356) - 152.3% 950,255,547
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.8)% (67,694,983)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.1% 38,314,132
--------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value - (47.6)% (6) (296,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 624,074,696
====================================================================================================================
(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.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 31.2%
(7) For fair value measurement disclosure purposes, investment categorized as
Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value
Measurements for more information.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 37
NMO | Nuveen Municipal Market Opportunity Fund, Inc.
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0% (0.7% 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 N/R $ 1,645,021
2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 N/R 2,060,140
3,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 A 2,929,650
Revenue Bonds, Coffee Health Group, Series 2000A, 6.000%,
7/01/29 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
7,420 Total Alabama 6,634,811
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.8% (1.1% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General Housing Purpose
Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured (UB) 12/14 at 100.00 AA 1,156,286
1,275 5.250%, 12/01/41 - FGIC Insured (UB) 12/14 at 100.00 AA 1,303,573
13,025 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 8,755,796
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
15,425 Total Alaska 11,215,655
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,480 Cabot School District 4, Lonoke County, Arkansas, General 8/10 at 100.00 Aa3 2,481,314
Obligation Refunding Bonds, Series 2003, 5.000%, 2/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 16.7% (10.5% OF TOTAL INVESTMENTS)
12,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 2,454,000
Lease Revenue Bonds, Public Improvement Project, Series
1997C, 0.000%, 9/01/35 - AGM Insured
1,350 Antelope Valley Union High School District, Los Angeles No Opt. Call Aa2 418,244
County, California, General Obligation Bonds, Series 2004B,
0.000%, 8/01/29 - NPFG Insured
Bay Area Toll Authority, California, San Francisco Bay Area
Toll Bridge Revenue Bonds, Series 2009-F1:
2,500 5.125%, 4/01/39 4/19 at 100.00 AA 2,602,475
2,500 5.625%, 4/01/44 4/19 at 100.00 AA 2,727,675
8,000 Beverly Hills Unified School District, Los Angeles County, No Opt. Call Aa1 2,349,120
California, General Obligation Bonds, Series 2009, 0.000%,
8/01/33
7,800 California County Tobacco Securitization Agency, Tobacco 12/18 at Baa3 5,831,514
Settlement Asset-Backed Bonds, Los Angeles County 100.00
Securitization Corporation, Series 2006A, 0.000%, 6/01/36
1,350 California Educational Facilities Authority, Revenue Refunding No Opt. Call A2 197,019
Bonds, Loyola Marymount University, Series 2001A, 0.000%,
10/01/39 - NPFG Insured
4,295 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 4,175,084
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+ 8,816,040
Bonds, Kaiser Permanante System, Series 2006, 5.250%,
3/01/45
7,000 California State, General Obligation Bonds, Various Purpose 3/20 at 100.00 A1 7,188,930
Series 2010, 5.250%, 3/01/30
1,550 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 1,595,942
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
25,000 California, Various Purpose General Obligation Bonds, Series 3/16 at 100.00 A1 23,639,250
2005, 4.750%, 3/01/35 - NPFG Insured (UB)
10,445 Castaic Lake Water Agency, California, Certificates of No Opt. Call AA 3,428,989
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 Aa1 3,342,821
California, General Obligation Bonds, Series 2003B, 0.000%,
8/01/26 - FGIC Insured
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,573,550
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) - AMBAC
Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A:
3,500 0.000%, 6/01/26 - AGM Insured No Opt. Call AAA 1,389,115
3,000 5.000%, 6/01/45 6/15 at 100.00 A2 2,746,110
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 698,390
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,500 Lincoln Unified School District, Placer County, California, No Opt. Call N/R $ 534,615
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, 10/10 at 100.00 AA- (4) 491,651
Electric Plant Revenue Bonds, Second Series 1993, 4.750%,
10/15/20 (ETM)
995 Los Angeles Department of Water and Power, California, 8/10 at 100.00 AA- (4) 999,020
Electric Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34
(ETM)
5,000 Los Angeles Department of Water and Power, California, 7/12 at 100.00 AA 5,059,150
Waterworks Revenue Bonds, Series 2003A, 5.125%, 7/01/40 -
FGIC Insured
2,200 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 2,443,166
Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39
14,000 New Haven Unified School District, California, General No Opt. Call AAA 3,329,900
Obligation Bonds, Refunding Series 2009, 0.000%, 8/01/34 -
AGC Insured
1,000 Pajaro Valley Unified School District, Santa Cruz County, No Opt. Call AAA 324,080
California, General Obligation Bonds, Series 2005B, 0.000%,
8/01/29 - AGM Insured
8,040 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call A+ 1,682,933
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
5,000 5.650%, 1/15/17 - NPFG Insured 1/14 at 102.00 A 4,831,800
26,000 0.000%, 1/15/35 - NPFG Insured No Opt. Call A 3,663,920
5,000 San Jose-Evergreen Community College District, Santa Clara 9/15 at 50.47 Aa1 1,677,150
County, California, General Obligation Bonds, Series 2005A,
0.000%, 9/01/28 - NPFG Insured
4,825 Santa Monica Community College District, Los Angeles County, 8/15 at 61.27 Aa1 2,065,969
California, General Obligation Bonds, Series 2005C, 0.000%,
8/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
188,205 Total California 106,277,622
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.1% (4.5% OF TOTAL INVESTMENTS)
1,085 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 BBB 985,798
Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured
3,000 Broomfield, Colorado, Master Facilities Lease Purchase 6/10 at 100.00 Aa3 3,010,200
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 Aa3 6,726,144
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+ 11,740,275
Refunding Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC
Insured (Alternative Minimum Tax)
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
6,200 0.000%, 9/01/22 - NPFG Insured No Opt. Call A 2,918,216
9,000 0.000%, 9/01/30 - NPFG Insured No Opt. Call A 2,365,470
15,960 0.000%, 9/01/33 - NPFG Insured No Opt. Call A 3,413,206
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 Aaa 6,274,600
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10)
- NPFG Insured
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds,
Series 2004B:
3,800 0.000%, 9/01/27 - NPFG Insured 9/20 at 67.94 A 1,245,298
13,300 0.000%, 9/01/31 - NPFG Insured 9/20 at 53.77 A 3,253,047
6,250 0.000%, 9/01/32 - NPFG Insured 9/20 at 50.83 A 1,431,063
10,000 0.000%, 3/01/36 - NPFG Insured 9/20 at 41.72 A 1,782,800
------------------------------------------------------------------------------------------------------------------------------------
106,345 Total Colorado 45,146,117
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.5% (0.9% OF TOTAL INVESTMENTS)
10,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 A1 9,595,600
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.5% (1.0% OF TOTAL INVESTMENTS)
8,025 Florida Housing Finance Corporation, Homeowner Mortgage 1/17 at 100.00 AA+ 7,307,084
Revenue Bonds, Series 2008, Trust 1191, 8.713%, 7/01/32
(Alternative Minimum Tax) (IF)
Nuveen Investments 39
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/20 at 100.00 A2 $ 2,536,750
International Airport, Series 2010A-1, 5.375%, 10/01/41
------------------------------------------------------------------------------------------------------------------------------------
10,525 Total Florida 9,843,834
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.1% (2.6% OF TOTAL INVESTMENTS)
14,330 Fulton County Facilities Corporation, Georgia, Certificates of 11/10 at 101.00 AA- (4) 14,841,581
Participation, Public Purpose Project, Series 1999, 5.500%,
11/01/18 (Pre-refunded 11/01/10) - AMBAC Insured
10,000 Gainesville and Hall County Hospital Authority, Georgia, 2/41 at 100.00 A+ 9,935,800
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2010B, 5.250%, 2/15/45
1,245 Royston Hospital Authority, Georgia, Revenue Anticipation 7/10 at 101.00 N/R 1,141,416
Certificates, Ty Cobb Healthcare System Inc., Series 1999,
6.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
25,575 Total Georgia 25,918,797
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.8% (6.8% OF TOTAL INVESTMENTS)
4,595 Bolingbrook, Illinois, General Obligation Refunding Bonds, No Opt. Call Aa3 1,497,970
Series 2002B, 0.000%, 1/01/32 - FGIC Insured
4,600 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call Aa2 2,861,200
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AA+ 4,045,240
5.000%, 1/01/33 - AMBAC Insured
1,885 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AA+ 2,035,027
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 7/10 at 100.50 A 5,259,555
5.000%, 1/01/28 - NPFG Insured
10,000 Illinois Finance Authority, Illinois, Northwestern University, 12/15 at 100.00 AAA 10,259,100
Revenue Bonds, Series 2006, 5.000%, 12/01/42 (UB)
3,000 Illinois Finance Authority, Revenue Bonds, Memoirial Health No Opt. Call A+ 3,004,050
System, Series 2009, 5.500%, 4/01/34
5,500 Illinois Finance Authority, Revenue Refunding Bonds, Silver 8/18 at 100.00 BBB 5,154,710
Cross Hospital and Medical Centers, Series 2008A, 5.500%,
8/15/30
2,060 Illinois Health Facilities Authority, Revenue Bonds, Sherman 7/10 at 100.00 BBB 2,060,000
Health Systems, Series 1997, 5.250%, 8/01/17 - AMBAC Insured
Lake and McHenry Counties Community Unit School District 118,
Wauconda, Illinois, General Obligation Bonds, Series 2005B:
10,230 0.000%, 1/01/22 - AGM Insured 1/15 at 70.63 Aa3 5,904,449
6,780 0.000%, 1/01/24 - AGM Insured 1/15 at 63.44 Aa3 3,418,747
1,975 Lake County Community High School District 127, Grayslake, No Opt. Call AAA 2,376,952
Illinois, General Obligation Bonds, Series 2002A, 9.000%,
2/01/13 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
6,500 0.000%, 6/15/25 - NPFG Insured 6/22 at 101.00 AAA 5,180,110
3,270 5.000%, 12/15/28 - NPFG Insured 6/12 at 101.00 AAA 3,318,919
3,700 0.000%, 6/15/30 - NPFG Insured No Opt. Call AAA 1,177,673
3,280 0.000%, 6/15/37 - NPFG Insured No Opt. Call AAA 665,086
11,715 0.000%, 12/15/38 - NPFG Insured No Opt. Call AAA 2,174,890
9,170 0.000%, 6/15/39 - NPFG Insured No Opt. Call AAA 1,653,076
6,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,999,525
Refunding Bonds, McCormick Place Expansion Project, Series
2002B, 5.750%, 6/15/23 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
104,010 Total Illinois 69,046,279
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.7% (1.7% OF TOTAL INVESTMENTS)
4,695 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 A 4,770,214
University, Series 2001, 5.500%, 2/01/26 - NPFG Insured
4,030 Indiana Finance Authority Health System Revenue Bonds, Sisters 11/19 at 100.00 Aa3 4,117,693
of St. Francis Health Services, Inc. Obligated Group, Series
2009, 5.250%, 11/01/39
6,000 Indiana Finance Authority, Revenue Bonds, Trinity Health Care 12/19 at 100.00 AA 6,223,920
Group, Refunding Series 2009A, 5.250%, 12/01/38
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding Bonds, 8/11 at 102.00 A3 2,049,820
Indianapolis Power and Light Company, Series 1991, 5.750%,
8/01/21
------------------------------------------------------------------------------------------------------------------------------------
16,725 Total Indiana 17,161,647
------------------------------------------------------------------------------------------------------------------------------------
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 970 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ $ 820,339
Initiatives Project, Series 2006A, 5.000%, 7/01/19
5,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue 6/17 at 100.00 BBB 4,483,600
Bonds, Series 2005B, 5.600%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
5,970 Total Iowa 5,303,939
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,758,725
Revolving Fund Leveraged Bonds, Series 2002-II, 5.500%,
11/01/21
500 Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical 4/16 at 100.00 A1 483,220
Center, Series 2006, 4.625%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Kansas 3,241,945
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,087,270
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008-A1, 6.000%, 12/01/38 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2% (2.0% OF TOTAL INVESTMENTS)
7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 A 7,436,059
Community Development Authority, Revenue Bonds, Baton Rouge
Community College Facilities Corporation, Series 2002,
5.000%, 12/01/32 - NPFG Insured
Louisiana Public Facilities Authority, Revenue Bonds, Baton
Rouge General Hospital, Series 2004:
1,765 5.250%, 7/01/24 - NPFG Insured 7/14 at 100.00 A 1,801,253
3,350 5.250%, 7/01/33 - NPFG Insured 7/14 at 100.00 A 3,353,484
7,850 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 7,610,732
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
20,380 Total Louisiana 20,201,528
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,410 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 4,257,149
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 2,945,350
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
6,910 Total Maryland 7,202,499
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.4% (2.7% OF TOTAL INVESTMENTS)
440 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 443,705
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 Aaa 4,185,151
660 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 665,590
12,190 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 12,190,244
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AA+ (4) 10,236,600
Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
27,440 Total Massachusetts 27,721,290
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.5% (1.6% OF TOTAL INVESTMENTS)
5,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 4,854,500
Revenue Bonds, Series 2006D, 4.625%, 7/01/32 - AGM Insured
2,090 Grand Rapids Building Authority, Kent County, Michigan, Limited 8/10 at 100.00 AA (4) 2,116,585
Tax General Obligation Bonds, Series 2000, 5.375%, 8/01/17
(Pre-refunded 8/01/10) - AMBAC Insured
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 4,964,700
Bonds, Henry Ford Health System, Refunding Series 2009,
5.750%, 11/15/39
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,836,836
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 1,361,600
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
16,290 Total Michigan 16,134,221
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 7.9% (5.0% OF TOTAL INVESTMENTS)
$ 930 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A $ 943,215
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) 30,244,137
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
(Pre-refunded 11/15/10)
1,610 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 1,634,247
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 14,005,935
11/01/16
2,810 St. Paul Housing and Redevelopment Authority, Minnesota, Sales 11/15 at 103.00 AAA 3,385,938
Tax Revenue Refunding Bonds, Civic Center Project, Series
1996, 7.100%, 11/01/23 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
48,095 Total Minnesota 50,213,472
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,900 Mississippi Business Finance Corporation, Pollution Control 10/10 at 100.00 BBB 5,899,351
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
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- 3,224,800
5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AA- 1,568,750
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Missouri 4,793,550
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.8% (1.1% OF TOTAL INVESTMENTS)
11,690 Omaha Convention Hotel Corporation, Nebraska, Convention Center 2/17 at 100.00 Aa3 11,558,137
Revenue Bonds, Series 2007, 5.000%, 2/01/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.3% (4.0% OF TOTAL INVESTMENTS)
15,000 Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien 1/20 at 100.00 Aa3 15,935,850
Series 2010B, 5.750%, 7/01/42
11,615 Clark County, Nevada, Passenger Facility Charge Revenue Bonds, 1/20 at 100.00 Aa3 11,596,184
Las Vegas-McCarran International Airport, Series 2010A,
5.250%, 7/01/42
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
6,125 0.000%, 1/01/17 - AMBAC Insured No Opt. Call Caa2 1,299,909
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call Caa2 1,038,275
7,860 0.000%, 1/01/27 - AMBAC Insured No Opt. Call Caa2 905,158
19,300 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 6,198,967
2,135 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2005B, 6/15 at 33.61 A 327,808
0.000%, 6/01/37 - FGIC Insured
2,500 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 AA+ 2,775,700
Healthcare West, Trust 2634, 18.389%, 7/01/31 - BHAC Insured
(IF)
------------------------------------------------------------------------------------------------------------------------------------
73,035 Total Nevada 40,077,851
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 New Hampshire Business Finance Authority, Revenue Bonds, Elliot 10/19 at 100.00 BBB+ 3,052,410
Hospital Obligated Group Issue, Series 2009A, 6.125%,
10/01/39
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.9% (4.3% OF TOTAL INVESTMENTS)
18,400 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 35.47 BB+ 2,094,656
Bonds, Saint Barnabas Health Care System, Series 2006A,
0.000%, 7/01/37
18,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AAA 18,122,940
System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded
6/15/10)
35,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 8,982,750
System Bonds, Series 2006C, 0.000%, 12/15/34 - AGM Insured
5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and Income 1/17 at 100.00 A+ 4,012,200
Securities, Series 2004B, 5.150%, 1/01/35 - AMBAC Insured
3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue No Opt. Call Aa2 1,315,980
Bonds, Series 2005A, 0.000%, 9/01/25 - NPFG Insured
3,525 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 3,915,253
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42
(Pre-refunded 6/01/12)
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 2,100 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA $ 2,396,436
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 2,780,120
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/41
------------------------------------------------------------------------------------------------------------------------------------
89,025 Total New Jersey 43,620,335
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,345,142
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21 (Pre-refunded 8/01/11)
2,475 University of New Mexico, Revenue Refunding Bonds, Series No Opt. Call AA 2,597,958
1992A, 6.250%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
8,400 Total New Mexico 8,943,100
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.3% (2.7% OF TOTAL INVESTMENTS)
7,000 Brooklyn Areba Local Development Corporation, New York, Payment No Opt. Call BBB- 582,120
in Lieu of Taxes Revenue Bonds, Barclays Center Project,
Series 2009, 0.000%, 7/15/45
3,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 3,054,990
Revenue Bonds, Series 2006B, 5.000%, 12/01/35
5 New York City, New York, General Obligation Bonds, Fiscal 7/10 at 100.00 AA 5,019
Series 1997H, 6.125%, 8/01/25
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 5,452,750
Series 2002A, 5.750%, 8/01/16
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
1,000 5.000%, 8/01/17 8/12 at 100.00 AA 1,044,610
6,515 5.750%, 8/01/18 8/12 at 100.00 AA 7,091,317
15 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA (4) 16,677
Series 2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12)
10,000 Port Authority of New York and New Jersey, Special Project 6/10 at 100.00 A 9,999,100
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 5.750%, 12/01/22 - NPFG Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
32,535 Total New York 27,246,583
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 5.8% (3.7% OF TOTAL INVESTMENTS)
1,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 2,183,347
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
17,000 North Carolina Capital Facilities Financing Agency, Revenue 10/15 at 100.00 AA+ 17,606,730
Bonds, Duke University, Series 2005A, 5.000%, 10/01/41
3,000 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 A- 3,189,930
Revenue Bonds, Series 2005, 5.250%, 1/01/20 - AMBAC Insured
4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA 3,929,680
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 A 8,079,525
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - NPFG Insured
1,900 North Carolina Turnpike Authority, Triangle Expressway System 1/19 at 100.00 AAA 2,039,175
Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
35,300 Total North Carolina 37,028,387
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 4.4% (2.8% OF TOTAL INVESTMENTS)
23,035 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 23,232,640
Obligated Group, Series 2000A, 5.625%, 6/01/31 - AGM Insured
North Dakota Water Commission, Water Development and Management
Program Bonds, Series 2000A:
2,230 5.700%, 8/01/18 (Pre-refunded 8/01/10) - NPFG Insured 8/10 at 100.00 AA (4) 2,260,194
2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - NPFG Insured 8/10 at 100.00 AA (4) 2,483,467
------------------------------------------------------------------------------------------------------------------------------------
27,715 Total North Dakota 27,976,301
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 7.3% (4.6% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 4,455 5.375%, 6/01/24 6/17 at 100.00 BBB $ 4,220,845
110 5.125%, 6/01/24 6/17 at 100.00 BBB 101,618
1,250 5.875%, 6/01/30 6/17 at 100.00 BBB 1,058,488
6,215 5.750%, 6/01/34 6/17 at 100.00 BBB 4,890,024
4,300 6.000%, 6/01/42 6/17 at 100.00 BBB 3,323,341
4,750 5.875%, 6/01/47 6/17 at 100.00 BBB 3,565,445
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,702,700
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - AGM
Insured (UB)
11,080 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A 11,849,617
Kettering Medical Center, Series 1999, 6.300%, 4/01/12
7,500 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 Aa2 7,862,775
Cleveland Clinic Health System Obligated Group, Series
2009A, 5.500%, 1/01/39
------------------------------------------------------------------------------------------------------------------------------------
49,660 Total Ohio 46,574,853
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,746,891
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5% (1.6% OF TOTAL INVESTMENTS)
5,000 Oregon Health Sciences University, Revenue Bonds, Series 1/13 at 100.00 A 5,090,500
2002A, 5.250%, 7/01/22 - NPFG Insured
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 Aaa 6,867,801
3,880 5.500%, 8/01/20 (Pre-refunded 8/01/10) 8/10 at 100.00 Aaa 3,931,488
------------------------------------------------------------------------------------------------------------------------------------
15,660 Total Oregon 15,889,789
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.5% (2.8% OF TOTAL INVESTMENTS)
3,000 Allegheny County Hospital Development Authority, Pennsylvania, No Opt. Call Aa3 3,083,850
University of Pittsburgh Medical Center Revenue Bonds,
Series 2009A, 5.625%, 8/15/39
5,000 Delaware County Industrial Development Authority, 7/10 at 100.00 BB+ 4,981,550
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Series 1997A, 6.200%, 7/01/19
5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100.00 N/R (4) 5,135,300
Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30
(Pre-refunded 12/15/10) - NPFG Insured
10,000 Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue 6/26 at 100.00 AAA 7,527,300
Bonds, Series 2009C, 0.000%, 6/01/33 - AGM Insured
7,550 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 Aa1 (4) 8,081,294
5.000%, 9/15/14 (Pre-refunded 9/15/11)
------------------------------------------------------------------------------------------------------------------------------------
30,550 Total Pennsylvania 28,809,294
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 6.9% (4.3% OF TOTAL INVESTMENTS)
3,330 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 Baa1 3,475,921
Senior Lien Series 2008A, 6.000%, 7/01/44
8,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/20 at 100.00 A3 8,585,280
Series 2010XX, 5.750%, 7/01/36
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 9,090,520
4,300 4.500%, 12/01/23 (UB) 12/13 at 100.00 AA+ 4,331,261
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/19 at 100.00 A+ 10,848,300
Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
7,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call Aa2 1,197,630
Bonds, Series 2007A, 0.000%, 8/01/40 - NPFG Insured
6,390 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 6,272,296
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
47,220 Total Puerto Rico 43,801,208
------------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 3,310 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB $ 3,177,335
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.1% (3.8% OF TOTAL INVESTMENTS)
24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 Aaa 27,837,572
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- 7,168,142
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 3,874,277
Bonds, Santee Cooper Electric System, Series 2003A, 5.000%,
1/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
49,860 Total South Carolina 38,879,991
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 7/13 at 100.00 BBB+ 4,754,050
Tennessee, Hospital Revenue Bonds, East Tennessee
Children's Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI
Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.2% (5.8% OF TOTAL INVESTMENTS)
2,500 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 1,747,200
Bonds, American Airlines Inc., Series 2007, 5.250%,
12/01/29 (Alternative Minimum Tax)
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 10,950,215
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
1,000 Cedar Hill Independent School District, Dallas County, Texas, No Opt. Call AA- 307,550
General Obligation Bonds, Series 2002, 0.000%, 8/15/32 -
FGIC Insured
15,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 13,255,350
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
2,500 Comal Independent School District, Comal, Bexar, Guadalupe, No Opt. Call Aaa 1,510,150
Hays, and Kendall Counties, Texas, General Obligation
Bonds, Series 2005A, 0.000%, 2/01/23
6,000 Dallas-Ft. Worth International Airport Facility Improvement 5/10 at 101.00 CCC+ 4,717,800
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 1,445,068
4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,380,480
1,715 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call A2 446,174
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 1,321,388
Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - AGM
Insured
2,400 Houston, Texas, Senior Lien Airport System Revenue Bonds, 7/18 at 100.00 AA- 2,564,088
Refunding Series 2009A, 5.500%, 7/01/39
9,350 Leander Independent School District, Williamson and Travis 8/15 at 39.50 AA- 2,846,888
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 1,720,440
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 3,085,520
Refunding Bonds, Capital Appreciation Series 2008I, 0.000%,
1/01/43
3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 3,384,558
Financing Corporation, Revenue Bonds, Series 2007,
Residuals 1760-3, 16.855%, 2/15/36 (IF)
5,000 White Settlement Independent School District, Tarrant County, 8/15 at 36.81 AAA 1,421,500
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) 4,191,010
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 1,622,100
2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 1,018,780
------------------------------------------------------------------------------------------------------------------------------------
88,185 Total Texas 58,936,259
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 3,000 Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, 8/19 at 100.00 AA+ $ 3,062,400
Inc., Series 2009, 5.000%, 8/15/41
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.5% (1.5% OF TOTAL INVESTMENTS)
21,500 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 15,635,445
Dulles Toll Road Revenue Bonds, Series 2009C, 0.000%,
10/01/41 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 15.1% (9.5% OF TOTAL INVESTMENTS)
5,500 Clark County Public Utility District 1, Washington, Generating 1/11 at 100.00 AAA 5,517,325
System Revenue Refunding Bonds, Series 2000, 5.125%,
1/01/20 - AGM Insured
2,755 Cowlitz County, Washington, Special Sewerage Revenue Refunding No Opt. Call A1 3,051,190
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 10,604,800
Bonds, Nuclear Project 3, Series 2001A, 5.500%, 7/01/17 -
AGM Insured
2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AA+ 2,613,625
5.000%, 1/01/23 - FGIC Insured
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 Aa2 (4) 33,944,793
5.625%, 2/01/30 (Pre-refunded 8/01/10) - NPFG Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 Aa2 7,013,245
5.625%, 2/01/24 - NPFG Insured (Alternative Minimum Tax)
(UB)
2,150 Seattle, Washington, General Obligation Refunding and 12/12 at 100.00 AAA 2,225,163
Improvement Bonds, Series 2002, 4.500%, 12/01/20
3,000 Spokane County School District 81, Spokane, Washington, 6/15 at 100.00 Aa1 3,178,079
General Obligation Bonds, Series 2005, 5.000%, 6/01/24 -
NPFG Insured
3,520 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aa3 (4) 3,733,135
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.000%, 10/01/21 (Pre-refunded 10/01/11) -
AMBAC Insured
10,890 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 11,080,356
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
9,000 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 4,003,109
Bonds, Series 2003C, 0.000%, 6/01/28 - FGIC Insured
9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/12 at 100.00 AAA 9,480,509
Series 2002C, 5.000%, 1/01/21 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
98,755 Total Washington 96,445,329
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,800 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 2,998,324
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, Revenue 5/16 at 100.00 BBB 1,506,159
Bonds, Divine Savior Healthcare, Series 2006, 4.750%,
5/01/25
1,250 Wisconsin Health and Educational Facilities Authority, Revenue 9/10 at 100.00 N/R 1,073,275
Bonds, United Lutheran Program for the Aging Inc., Series
1998, 5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
5,805 Total Wisconsin 5,577,758
------------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 4,080 Campbell County, Wyoming Solid Waste Facilities Revenue Bonds, 7/19 at 100.00 A+ $ 4,381,145
Basin Electric Power Cooperative - Dry Fork Station
Facilities, Series 2009A, 5.750%, 7/15/39
------------------------------------------------------------------------------------------------------------------------------------
$ 1,339,655 Total Investments (cost $1,012,817,147) - 159.0% 1,012,295,592
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.7)% (48,745,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.8% 24,105,704
--------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value - (350,900,000)
(55.1)% (6)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 636,756,296
====================================================================================================================
(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.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 34.7%
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 47
NAD | Nuveen Dividend Advantage Municipal Fund
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 152.7% (99.9% OF TOTAL INVESTMENTS)
ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,600 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 1,609,888
Bonds, Series 2000, 5.750%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
750 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 770,858
Bonds, Series 2005A, 5.250%, 12/01/34 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,392,441
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
5,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 4,458,800
Bonds, Citigroup Energy Inc Prepay Contract Obligations,
Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
7,350 Total Arizona 6,851,241
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.7% (4.4% OF TOTAL INVESTMENTS)
1,535 Alameda Corridor Transportation Authority, California, Senior No Opt. Call A 251,633
Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 - NPFG
Insured
6,000 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 1,955,040
Lease Revenue Bonds, Public Improvement Project, Series
1997C, 0.000%, 9/01/28 - AGM Insured
6,750 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 7,515,315
Bonds, Methodist Hospital Project, Series 2009, 6.750%,
2/01/38
65 California, General Obligation Bonds, Series 1997, 5.000%, 7/10 at 100.00 A1 65,085
10/01/18 - AMBAC Insured
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/16 at 100.00 A1 5,017,250
3/01/31
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A:
3,500 0.000%, 6/01/26 - AGM Insured No Opt. Call AAA 1,389,115
9,925 5.000%, 6/01/45 6/15 at 100.00 AAA 9,498,027
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
5,750 5.000%, 6/01/33 6/17 at 100.00 BBB 4,696,313
1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 698,390
2,200 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 2,443,166
Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39
1,495 Palmdale Civic Authority, California, Revenue Refinancing 7/10 at 100.00 A 1,499,440
Bonds, Civic Center Project, Series 1997A, 5.375%, 7/01/12
- NPFG Insured
17,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 2,395,640
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
60,220 Total California 37,424,414
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.7% (3.8% OF TOTAL INVESTMENTS)
1,125 Antelope Heights Metropolitan District, Colorado, Limited Tax 12/17 at 100.00 N/R 793,159
General Obligation Bonds, Series 2007, 5.000%, 12/01/37 -
RAAI Insured
3,330 Colorado Health Facilities Authority, Colorado, Revenue 7/19 at 100.00 AA 3,544,252
Bonds, Catholic Health Initiatives, Series 2009A, 5.500%,
7/01/34
Denver City and County, Colorado, Airport Special Facilities
Revenue Bonds, Rental Car Projects, Series 1999A:
2,170 6.000%, 1/01/12 - NPFG Insured (Alternative Minimum Tax) 7/10 at 100.50 A 2,188,206
675 6.000%, 1/01/13 - NPFG Insured (Alternative Minimum Tax) 7/10 at 100.50 A 680,333
1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/10 at 100.00 BB+ 1,441,636
Bonds, Boston Lofts Project, Series 1997A, 5.750%,
10/01/27 (Alternative Minimum Tax)
8,515 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 3,225,993
Bonds, Series 1997B, 0.000%, 9/01/25 - NPFG Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 25,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A $ 6,114,750
Bonds, Series 2000B, 0.000%, 9/01/31 - NPFG Insured
60,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 10,555,800
Series 2004A, 0.000%, 3/01/36 - NPFG Insured
12,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/26 at 54.77 A 1,770,375
Series 2006A, 0.000%, 9/01/38 - NPFG Insured
2,000 Metropolitan Football Stadium District, Colorado, Sales Tax No Opt. Call A 1,942,980
Revenue Bonds, Series 1999A, 0.000%, 1/01/12 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
116,790 Total Colorado 32,257,484
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4% (0.3% OF TOTAL INVESTMENTS)
4,335 Mashantucket Western Pequot Tribe, Connecticut, Subordinate 11/17 at 100.00 N/R 2,220,084
Special Revenue Bonds, Series 2007A, 5.750%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 10.9% (7.1% OF TOTAL INVESTMENTS)
1,390 Florida Housing Finance Agency, Housing Revenue Bonds, Mar 6/10 at 100.00 N/R 1,390,181
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 15,046,950
Outlay Bonds, Series 2005E, 4.500%, 6/01/35 (UB)
2,500 Marion County Hospital District, Florida, Revenue Bonds, 10/17 at 100.00 A3 2,301,550
Munroe Regional Medical Center, Series 2007, 5.000%,
10/01/34
13,625 Martin County Industrial Development Authority, Florida, 6/10 at 100.00 BB+ 13,623,093
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
South Miami Health Facilities Authority, Florida, Hospital
Revenue, Baptist Health System Obligation Group, Series
2007:
22,000 5.000%, 8/15/37 (UB) 8/17 at 100.00 AA- 21,836,320
7,370 5.000%, 8/15/42 (UB) 8/17 at 100.00 AA- 7,241,909
------------------------------------------------------------------------------------------------------------------------------------
61,885 Total Florida 61,440,003
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Cobb County Development Authority, Georgia, Student Housing 7/17 at 100.00 Baa2 4,473,800
Revenue Bonds, KSU Village II Real Estate Foundation LLC
Project, Series 2007A, 5.250%, 7/15/38 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
110 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.50 Aa2 112,175
Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum
Tax)
140 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa2 142,873
Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum
Tax)
205 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 212,983
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
455 Total Idaho 468,031
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 31.6% (20.7% OF TOTAL INVESTMENTS)
1,560 Channahon, Illinois, Revenue Refunding Bonds, Morris 6/10 at 102.00 BBB+ 1,594,492
Hospital, Series 1999, 5.750%, 12/01/12
2,205 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call Aa2 763,768
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 Aa2 8,162,413
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:
680 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AA- 690,098
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AA- 1,222,729
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AA- 1,941,420
22,750 Chicago, Illinois, General Obligation Refunding Bonds, No Opt. Call Aa2 25,963,665
Emergency Telephone System, Series 1999, 5.500%, 1/01/23 -
FGIC Insured
Nuveen Investments 49
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,150 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AA+ $ 2,321,119
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
3,340 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 3,349,586
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 Aa2 211,252
Illinois, General Obligation Bonds, Series 2003B, 5.250%,
11/01/20 - AGM Insured
810 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aa2 (4) 919,358
Illinois, General Obligation Bonds, Series 2003B, 5.250%,
11/01/20 (Pre-refunded 11/01/13) - AGM Insured
500 Hoffman Estates Park District, Cook County, Illinois, General 12/11 at 100.00 AA+ 506,605
Obligation Bonds, Series 1999, 5.375%, 12/01/29 - NPFG
Insured
3,935 Illinois Development Finance Authority, Local Government No Opt. Call Baa1 3,374,184
Program Revenue Bonds, Lake County School District 116 -
Round Lake, Series 1999, 0.000%, 1/01/15 - NPFG Insured
1,500 Illinois Finance Authority, Revenue Bonds, Central DuPage 11/19 at 100.00 AA 1,564,245
Health, Series 2009B, 5.500%, 11/01/39
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 2,012,120
Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC
Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 1,003,040
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 5,702,120
Chicago, Series 2004A, 5.000%, 7/01/34
4,000 Illinois Finance Authority, Revenue Refunding Bonds, Silver 8/18 at 100.00 BBB 4,091,280
Cross Hospital and Medical Centers, Series 2008A, 6.000%,
8/15/23
9,820 Illinois Health Facilities Authority, Remarketed Revenue 8/11 at 103.00 Aa1 10,271,033
Bonds, University of Chicago Project, Series 1985A,
5.500%, 8/01/20
5,595 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/10 at 100.00 A 5,348,261
University Health System, Series 1997A, 5.000%, 7/01/24 -
NPFG Insured
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah 8/10 at 100.00 A 5,495,819
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+ 1,448,370
Bonds, Series 2005E, 4.800%, 1/01/36 - FGIC Insured
2,000 Kane & DeKalb Counties, Illinois, Community United School No Opt. Call A1 1,166,480
District 301, General Obligation Bonds, Series 2006,
0.000%, 12/01/21 - NPFG Insured
11,345 Lake and McHenry Counties Community Unit School District 118, 1/15 at 60.14 Aa3 5,440,495
Wauconda, Illinois, General Obligation Bonds, Series
2005B, 0.000%, 1/01/25 - AGM Insured
3,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 2,437,680
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
22,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/10 at 101.00 AAA 22,807,125
Bonds, McCormick Place Expansion Project, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series
1996A:
12,250 0.000%, 12/15/22 - NPFG Insured No Opt. Call A1 6,535,375
13,000 0.000%, 12/15/23 - NPFG Insured No Opt. Call A1 6,494,410
3,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 3,230,550
Refunding Bonds, McCormick Place Expansion Project, Series
2002B, 5.750%, 6/15/23 - NPFG Insured
1,840 Oak Park, Illinois, General Obligation Bonds, Series 2005B, 11/15 at 54.14 Aa2 759,957
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 - AGM Insured No Opt. Call AAA 26,557,578
3,500 5.750%, 6/01/23 - AGM Insured No Opt. Call AAA 4,018,105
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 Aaa 1,364,311
5.250%, 12/01/34 - FGIC Insured
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aa2 5,537,500
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/23 - AGM Insured
4,500 Will County School District 122, New Lenox, Illinois, General No Opt. Call Aa3 3,149,775
Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - AGM
Insured
------------------------------------------------------------------------------------------------------------------------------------
195,865 Total Illinois 177,456,318
------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.2% (3.4% OF TOTAL INVESTMENTS)
$ 1,885 Hospital Authority of Delaware County, Indiana, Hospital 8/10 at 100.00 N/R $ 1,835,142
Revenue Refunding Bonds, Cardinal Health System, Series
1997, 5.000%, 8/01/16 - AMBAC Insured
4,000 Indiana Finance Authority, Revenue Bonds, Trinity Health Care 12/19 at 100.00 AA 4,149,280
Group, Refunding Series 2009A, 5.250%, 12/01/38
8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 A+ (4) 8,240,160
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/26 (Pre-refunded 8/15/10) - NPFG Insured
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,961,340
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
6,555 Indiana Housing and Community Development Authority, Single 1/17 at 100.00 Aaa 6,399,515
Family Mortgage Revenue Bonds, Series 2007A-1, Drivers 1847,
7.817%, 7/01/32 (Alternative Minimum Tax) (IF)
6,675 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 6,708,375
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
29,115 Total Indiana 29,293,812
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9% (0.6% OF TOTAL INVESTMENTS)
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 5,236,560
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/10 at 100.00 Aa2 3,827,869
Series 1999, 4.000%, 10/01/18 - FGIC Insured
3,000 Wyandotte County-Kansas City Unified Government, Kansas, Sales 12/15 at 100.00 N/R 3,067,290
Tax Special Obligation Bonds, Redevelopment Project Area B,
Series 2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
6,825 Total Kansas 6,895,159
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1% (0.7% OF TOTAL INVESTMENTS)
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 10/10 at 100.00 BB- 1,744,791
5,000 5.875%, 10/01/22 10/10 at 100.00 BB- 4,449,350
------------------------------------------------------------------------------------------------------------------------------------
6,850 Total Kentucky 6,194,141
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 7.2% (4.7% OF TOTAL INVESTMENTS)
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,876,543
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 A 5,355,564
Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG
Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 Baa1 8,177,220
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 Aa1 5,364,360
2006A, 4.500%, 5/01/41 - FGIC Insured (UB)
13,570 Louisiana Transportation Authority, Senior Lien Toll Road 12/10 at 38.73 Aa3 5,100,285
Revenue Bonds, Series 2005B, 0.000%, 12/01/28 - AMBAC Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
9,690 5.500%, 5/15/30 5/11 at 101.00 BBB 9,702,694
5,000 5.875%, 5/15/39 5/11 at 101.00 BBB 4,847,600
------------------------------------------------------------------------------------------------------------------------------------
49,805 Total Louisiana 40,424,266
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.2% (2.1% OF TOTAL INVESTMENTS)
1,440 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R 796,406
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 4,528,251
Revenue Bonds, Berkshire Health System, Series 2005F,
5.000%, 10/01/19 - AGC Insured
Nuveen Investments 51
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 620 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 $ 603,155
Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.125%,
7/01/33
2,300 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 2,346,575
Revenue Refunding Bonds, Suffolk University Issue, Series
2009A, 5.750%, 7/01/39
2,975 Massachusetts Housing Finance Agency, Housing Bonds, Series 12/18 at 100.00 AA- 3,027,330
2009F, 5.700%, 6/01/40
785 Massachusetts Port Authority, Special Facilities Revenue Bonds, 9/10 at 100.00 A 643,496
US Airways Group Inc., Series 1996A, 5.875%, 9/01/23 - NPFG
Insured (Alternative Minimum Tax)
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
1,975 5.000%, 1/01/12 7/10 at 100.00 A 1,980,609
1,200 5.000%, 1/01/13 - NPFG Insured 7/10 at 100.00 A 1,202,784
2,200 5.125%, 1/01/17 - NPFG Insured 7/10 at 100.00 A 2,202,530
1,000 0.000%, 1/01/24 - NPFG Insured No Opt. Call A 475,690
------------------------------------------------------------------------------------------------------------------------------------
18,860 Total Massachusetts 17,806,826
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.2% (2.7% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 A1 5,856,900
Bonds, Series 2005A, 5.000%, 7/01/35 - NPFG Insured
15,255 Michigan State Hospital Finance Authority, Hospital Revenue 8/10 at 100.00 BB- 12,097,520
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 1,361,600
Revenue Bonds, William Beaumont Hospital, Refunding
Series 2009V, 8.250%, 9/01/39
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 6/10 at 100.50 A 4,047,840
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/16 - NPFG Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
26,405 Total Michigan 23,363,860
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4% (0.9% OF TOTAL INVESTMENTS)
6,375 Minneapolis Health Care System, Minnesota, Revenue Bonds, 11/18 at 100.00 A 7,149,053
Fairview Hospital and Healthcare Services, Series 2008A,
6.625%, 11/15/28
555 Minnesota Housing Finance Agency, Single Family Mortgage 7/10 at 101.00 AA+ 570,435
Bonds, Series 1998H-1, 5.650%, 7/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,930 Total Minnesota 7,719,488
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.3% (1.5% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri,
Leasehold Revenue Bonds, Series 2004B-1:
7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AA- 2,821,700
5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AA- 1,775,650
1,885 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- 1,927,582
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21
- AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
300 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 318,120
2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 2,316,974
3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 3,891,668
------------------------------------------------------------------------------------------------------------------------------------
20,040 Total Missouri 13,051,694
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.3% (0.2% OF TOTAL INVESTMENTS)
570 Montana Board of Housing, Single Family Mortgage Bonds, Series 6/10 at 100.00 AA+ 579,890
2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
1,000 Montana Higher Education Student Assistance Corporation, 6/10 at 100.00 A2 979,600
Student Loan Revenue Bonds, Subordinate Series 1999B,
6.400%, 12/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,570 Total Montana 1,559,490
------------------------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.4% (3.5% OF TOTAL INVESTMENTS)
$ 10,000 Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien 1/20 at 100.00 Aa3 $ 10,623,900
Series 2010B, 5.750%, 7/01/42
9,675 Clark County, Nevada, Passenger Facility Charge Revenue Bonds, 1/20 at 100.00 Aa3 9,659,327
Las Vegas-McCarran International Airport, Series 2010A,
5.250%, 7/01/42
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
8,000 0.000%, 1/01/19 - AMBAC Insured No Opt. Call Caa2 1,508,720
4,000 5.625%, 1/01/32 - AMBAC Insured (5) 1/12 at 100.00 Caa2 1,284,720
3,000 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 963,570
3,750 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 AA+ 4,311,000
Catholic Healthcare West, Trust 2634, 18.667%, 7/01/31 -
BHAC Insured (IF)
1,500 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 1,719,660
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
39,925 Total Nevada 30,070,897
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.9% (4.5% OF TOTAL INVESTMENTS)
6,850 New Jersey Educational Facilities Authority, Revenue Refunding No Opt. Call Baa2 7,506,641
Bonds, University of Medicine and Dentistry of New Jersey,
Series 2009B, 5.750%, 12/01/15
1,830 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 Aaa 1,853,406
Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - NPFG Insured
(Alternative Minimum Tax)
4,130 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call Aa3 4,597,516
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/13 - AMBAC Insured
4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,633,360
System Bonds, Series 1999A, 5.750%, 6/15/18
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 6,895,400
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
7,825 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 8,387,226
3,165 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,515,397
1,365 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 1,596,463
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
------------------------------------------------------------------------------------------------------------------------------------
49,165 Total New Jersey 38,985,409
------------------------------------------------------------------------------------------------------------------------------------
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 3,797,103
Revenue Bonds, Series 2004, 5.000%, 7/01/32 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.1% (5.3% OF TOTAL INVESTMENTS)
2,170 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 100.00 A3 2,171,215
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 8/10 at 100.00 AA- 7,507,125
Hospital Revenue Refunding Bonds, Wyckoff Heights Medical
Center, Series 1998H, 5.300%, 8/15/21 - NPFG Insured
6,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 6,156,660
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, Revenue 3/19 at 100.00 AAA 5,502,962
Bonds, Yankee Stadium Project Pilot, Series 2009A, 7.000%,
3/01/49 - AGC Insured
5,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 5,168,450
Water and Sewerage System Revenue Bonds, Series 2004B,
5.000%, 6/15/36 - AGM Insured (UB)
8,800 New York City Sales Tax Asset Receivable Corporation, New 10/14 at 100.00 AAA 9,139,504
York, Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A, 5.000%, 10/15/32 - AMBAC
Insured (UB)
10,000 Port Authority of New York and New Jersey, Special Project 6/10 at 100.00 A 10,063,600
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 5.900%, 12/01/17 - NPFG Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
44,225 Total New York 45,709,516
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 1,500 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- $ 1,594,575
Carolinas HealthCare System Revenue Bonds, Series 2008A,
5.250%, 1/15/24 - AGC Insured
3,830 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 4,401,168
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
------------------------------------------------------------------------------------------------------------------------------------
5,330 Total North Carolina 5,995,743
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.2% (2.1% OF TOTAL INVESTMENTS)
2,300 Amherst Exempted Village School District, Ohio, Unlimited Tax 12/11 at 100.00 Aa2 (4) 2,464,611
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:
1,285 5.375%, 6/01/24 6/17 at 100.00 BBB 1,217,460
160 5.125%, 6/01/24 6/17 at 100.00 BBB 147,808
1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,524,222
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,369,049
3,930 5.875%, 6/01/47 6/17 at 100.00 BBB 2,949,937
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage 7/10 at 100.00 Aa2 3,636,818
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 3,740,338
Initiatives, Series 2004A, 5.000%, 5/01/30
935 Warren County, Ohio, Limited Tax General Obligations, Series 6/10 at 100.00 Aa1 938,693
1997, 5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
19,435 Total Ohio 17,988,936
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aa3 2,389,218
Redevelopment Revenue Bonds, Series 2000A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.9% (4.5% OF TOTAL INVESTMENTS)
3,480 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 3,716,710
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- 519,995
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,250 Erie Water Authority, Pennsylvania, Water Revenue Bonds, Series 12/18 at 100.00 AAA 1,276,188
2008, 5.000%, 12/01/43 - AGM Insured
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,424,970
Revenue Bonds, Series 2006A, 4.650%, 10/01/31 (Alternative
Minimum Tax) (UB)
8,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/27 at 100.00 A2 5,511,138
Capital Appreciation Series 2009E, 0.000%, 12/01/38
5,000 Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue 6/26 at 100.00 AAA 3,763,650
Bonds, Series 2009C, 0.000%, 6/01/33 - AGM Insured
18,900 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/10 at 100.00 A+ 18,923,814
Series 1998A, 5.500%, 6/15/18 - FGIC Insured (Alternative
Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 Aa2 (4) 3,540,243
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
42,055 Total Pennsylvania 38,676,708
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 5.0% (3.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 Baa1 2,609,550
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 9,090,520
4,300 4.500%, 12/01/23 (UB) 12/13 at 100.00 AA+ 4,331,261
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO (continued)
$ 12,845 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 $ 1,438,897
Revenue Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/19 at 100.00 A+ 10,848,300
Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
------------------------------------------------------------------------------------------------------------------------------------
37,845 Total Puerto Rico 28,318,528
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.0% (1.9% OF TOTAL INVESTMENTS)
2,015 Central Falls, Rhode Island, General Obligation School Bonds, 5/10 at 101.00 Baa1 2,037,628
Series 1999, 6.250%, 5/15/20 - RAAI Insured
Rhode Island Housing & Mortgage Finance Corporation,
Homeownership Opportunity 57-B Bond Program, Series 2008,
Trust 1177:
1,500 9.509%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,567,935
1,000 9.609%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,029,980
12,500 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 12,124,375
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
17,015 Total Rhode Island 16,759,918
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Greenville, South Carolina, Hospital Facilities Revenue Bonds, 5/11 at 101.00 AA- 1,505,655
Series 2001, 5.000%, 5/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,250 Memphis-Shelby County Airport Authority, Tennessee, Airport 9/10 at 101.00 A2 2,273,715
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 2,446,486
Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - AGM Insured
2,310 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 2,124,784
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 974,100
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007, 5.500%, 11/01/46 (7)
------------------------------------------------------------------------------------------------------------------------------------
8,485 Total Tennessee 7,819,085
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.9% (4.5% OF TOTAL INVESTMENTS)
2,560 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa3 1,531,674
Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%,
3/01/32 (Alternative Minimum Tax)
2,000 Capital Area Cultural Education Facilities Finance Corporation, 4/20 at 100.00 Aaa 2,010,940
Texas, Revenue Bonds, The Roman Catholic Diocese of Austin,
Series 2005B. Remarketed, 6.125%, 4/01/45
2,820 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 2,492,006
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 877,072
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 A 1,185,540
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/20 -
NPFG Insured
3,130 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call A2 927,732
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 2,535,225
2000, 6.000%, 8/01/25 (Pre-refunded 8/01/10) - AGM Insured
30,095 Leander Independent School District, Williamson and Travis 8/12 at 27.94 AAA 7,524,954
Counties, Texas, General Obligation Bonds, Series 2004,
0.000%, 8/15/34
Nuveen Investments 55
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments April 30, 2010 (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- $ 2,683,697
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 7,094,582
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 Aa1 1,004,430
4.750%, 5/15/37 - NPFG Insured
3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 3,384,558
Financing Corporation, Revenue Bonds, Series 2007, Residuals
1760-3, 16.855%, 2/15/36 (IF)
7,000 White Settlement Independent School District, Tarrant County, 8/15 at 34.92 AAA 1,885,170
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 1,930,650
3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,720,650
------------------------------------------------------------------------------------------------------------------------------------
105,930 Total Texas 38,788,880
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 1999C-2, Class II:
165 5.700%, 7/01/19 (Alternative Minimum Tax) 7/10 at 101.50 Aaa 170,217
50 5.750%, 7/01/21 (Alternative Minimum Tax) 7/10 at 101.50 Aa2 50,827
10 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aa2 10,046
Series 1999D, 5.850%, 7/01/21 (Alternative Minimum Tax)
390 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 390,753
Series 2000F-2, Class III, 6.000%, 1/01/15 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
615 Total Utah 621,843
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 2,887,560
Residential Care Facilities Mortgage Revenue Bonds, Goodwin
House, Inc., Series 2007A, 5.125%, 10/01/42
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.3% (7.4% OF TOTAL INVESTMENTS)
4,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/13 at 100.00 Aaa 4,455,840
Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 - SYNCORA
GTY Insured
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999B:
1,755 6.000%, 9/01/15 - NPFG Insured (Alternative Minimum Tax) 9/10 at 101.00 A 1,775,323
2,590 6.000%, 9/01/16 - NPFG Insured (Alternative Minimum Tax) 9/10 at 101.00 A 2,619,267
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999C:
875 6.000%, 9/01/15 - NPFG Insured (Alternative Minimum Tax) 9/10 at 101.00 A 885,133
1,260 6.000%, 9/01/16 - NPFG Insured (Alternative Minimum Tax) 9/10 at 101.00 A 1,274,238
4,820 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 4,959,828
Refunding and Improvement Bonds, Series 2001, 5.500%,
3/01/19 - AGM Insured
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 7/19 at 100.00 A 2,065,260
Fred Hutchinson Cancer Research Center, Series 2009A,
6.000%, 1/01/33
6,190 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 6,298,201
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
11,605 Washington, Certificates of Participation, Washington 7/10 at 100.00 AA 11,643,412
Convention and Trade Center, Series 1999, 5.250%, 7/01/16 -
NPFG Insured
3,350 Washington, General Obligation Compound Interest Bonds, Series No Opt. Call AAA 2,602,380
1999S-2, 0.000%, 1/01/18 - AGM Insured
Washington, General Obligation Compound Interest Bonds, Series
1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call AA+ 12,405,478
18,470 0.000%, 1/01/21 No Opt. Call AA+ 12,347,563
------------------------------------------------------------------------------------------------------------------------------------
74,565 Total Washington 63,331,923
------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.7% (4.4% OF TOTAL INVESTMENTS)
$ 1,690 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aa2 (4) $ 1,950,918
5.000%, 11/01/29 (Pre-refunded 11/01/14) - AGM Insured
560 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aa2 577,975
5.000%, 11/01/29 - AGM Insured
3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding 12/10 at 100.00 A3 3,875,912
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 7,521,297
Bonds, Ascension Health, Series 2006A, 5.000%, 11/15/36
4,330 Wisconsin Health and Educational Facilities Authority, Revenue 2/20 at 100.00 AA- 4,627,080
Bonds, Childrens Hospital of Wisconsin Inc., Series 2008B,
5.500%, 8/15/29
4,380 Wisconsin Health and Educational Facilities Authority, Revenue 5/10 at 100.00 A 4,381,050
Bonds, Kenosha Hospital and Medical Center Inc., Series
1999, 5.625%, 5/15/29
12,700 Wisconsin Health and Educational Facilities Authority, Revenue 8/10 at 100.50 A2 12,750,291
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+ 1,970,055
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
37,080 Total Wisconsin 37,654,578
------------------------------------------------------------------------------------------------------------------------------------
$ 1,119,905 Total Municipal Bonds (cost $851,521,599) 857,818,917
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 0.1% (0.1% OF TOTAL INVESTMENTS)
8,765 BlackRock MuniHoldings Fund Inc. $ 137,610
32,332 Morgan Stanley Quality Municipal Income Trust 408,029
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $527,634) 545,639
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $852,049,233) - 152.8% 858,364,556
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.2)% (51,605,000)
--------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (25.7)% (6) (144,300,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.5% 19,443,937
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (21.4)% (6) (120,075,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 561,828,493
====================================================================================================================
(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.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at
Liquidation Value as a percentage of Total Investments are 16.8% and
14.0%, respectively.
(7) For fair value measurement disclosure purposes, investment categorized as
Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value
Measurements for more information.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 57
NXZ | Nuveen Dividend Advantage Municipal Fund 2
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.5% (3.1% OF TOTAL INVESTMENTS)
$ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/11 at 101.00 A2 (4) $ 19,734,135
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 1,478,906
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- 3,121,030
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS)
925 Arkansas Development Finance Authority, Single Family Mortgage 1/12 at 100.00 AAA 930,939
Revenue Bonds, GNMA Mortgage-Backed Securities Program,
Series 2002C, 5.400%, 1/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.4% (8.4% OF TOTAL INVESTMENTS)
9,000 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 6,728,670
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 6,222,780
Stanford University, Series 2001Q, 5.250%, 12/01/32
4,080 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 AA+ 4,123,534
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37 - BHAC Insured
20,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A2 18,307,400
Enhanced Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/45 - FGIC Insured
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,837,850
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
1,000 5.000%, 6/01/33 6/17 at 100.00 BBB 816,750
1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 698,390
6,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 6,048,480
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 5,176,100
6.000%, 3/01/47 - AMBAC Insured (Alternative Minimum Tax)
70 Yuba County Water Agency, California, Yuba River Development 9/10 at 100.00 Baa1 68,450
Revenue Bonds, Pacific Gas and Electric Company, Series
1966A, 4.000%, 3/01/16
------------------------------------------------------------------------------------------------------------------------------------
57,150 Total California 54,028,404
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 10.0% (6.7% OF TOTAL INVESTMENTS)
2,380 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 AAA 2,575,112
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, Series 11/16 at 100.00 A+ 3,466,914
2006, 5.000%, 11/15/24 - FGIC Insured
Denver City, Colorado, Airport Revenue Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,668,820
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,531,506
2,000 Denver, Colorado, Airport System Revenue Refunding Bonds, 11/10 at 100.00 A+ 2,048,020
Series 2000A, 6.000%, 11/15/18 - AMBAC Insured (Alternative
Minimum Tax)
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 Aaa 3,137,300
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - NPFG
Insured
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,280 Eagle County Air Terminal Corporation, Colorado, Airport 5/11 at 101.00 N/R $ 1,192,051
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 873,588
Obligation Bonds, Series 2004, 5.000%, 12/15/22 - AGM
Insured (UB)
5,000 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 5,362,150
Bonds, Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded
6/15/11) - AGM 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) - AGM Insured 6/11 at 35.65 AAA 7,737,840
17,650 0.000%, 6/15/29 (Pre-refunded 6/15/11) - AMBAC Insured 6/11 at 33.46 N/R (4) 5,825,206
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 1,003,600
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
75,065 Total Colorado 43,422,107
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.3% (0.9% OF TOTAL INVESTMENTS)
895 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 900,057
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 A1 4,797,800
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,895 Total District of Columbia 5,697,857
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.2% (2.9% OF TOTAL INVESTMENTS)
15,000 Jacksonville, Florida, Transportation Revenue Bonds, Series 10/11 at 100.00 Aa2 15,471,600
2001, 5.250%, 10/01/29 - NPFG Insured
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A 3,006,240
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,000 Total Florida 18,477,840
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.4% (1.6% OF TOTAL INVESTMENTS)
Honolulu Board of Water Supply, Hawaii, Water System Revenue
Bonds, Series 2001:
3,000 5.250%, 7/01/26 (Pre-refunded 7/01/11) - AGM Insured 7/11 at 100.00 AAA 3,167,940
6,725 5.250%, 7/01/31 (Pre-refunded 7/01/11) - AGM Insured 7/11 at 100.00 AAA 7,101,466
------------------------------------------------------------------------------------------------------------------------------------
9,725 Total Hawaii 10,269,406
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.6% (9.1% OF TOTAL INVESTMENTS)
3,525 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 AAA 3,565,291
Revenue Bonds, Stone Terrace Apartments, Series 2001A,
5.750%, 12/20/42 (Alternative Minimum Tax)
685 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 4/11 at 105.00 AAA 717,716
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 Aa2 1,429,700
Series 1999, 0.000%, 1/01/34 - FGIC Insured
3,985 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 Aa2 4,032,940
5.250%, 1/01/33 - NPFG Insured
5,285 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AA- (4) 5,508,661
5.250%, 1/01/33 (Pre-refunded 1/01/11) - NPFG Insured
3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago 12/12 at 100.00 N/R (4) 3,578,804
Charter School Foundation, Series 2002A, 6.250%, 12/01/32
(Pre-refunded 12/01/12)
910 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 BBB+ 896,132
Wesleyan University, Series 2001, 5.500%, 9/01/32 - AMBAC
Insured
4,090 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 BBB+ (4) 4,340,635
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 3,298,865
Midwestern University, Series 2001B, 6.000%, 5/15/31
(Pre-refunded 5/15/11)
9,500 Illinois Finance Authority, Revenue Bonds, Palos Community 5/17 at 100.00 A 9,337,835
Hospital, Series 2007A, 5.000%, 5/15/32 - NPFG Insured
Nuveen Investments 59
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,500 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB $ 2,661,100
Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 5,243,750
Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34
(Pre-refunded 2/15/11) - AGM Insured
2,500 Illinois Housing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,523,400
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 2,382,403
2,500 Kane & DeKalb Counties, Illinois, Community United School No Opt. Call A1 1,295,450
District 301, General Obligation Bonds, Series 2006, 0.000%,
12/01/23 - NPFG Insured
5,120 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/10 at 100.00 A1 5,122,765
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 5.250%, 6/15/27 - AMBAC Insured
1,740 Montgomery, Illinois, Lakewood Creek Project Special Assessment 3/16 at 100.00 N/R 1,492,189
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 1,731,643
Illinois, Glenbrook, General Obligation School Bonds, Series
2007B, 0.000%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
64,255 Total Illinois 59,159,279
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.2% (2.2% OF TOTAL INVESTMENTS)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 BBB 1,721,080
Bonds, Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31
2,210 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,508,328
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - AGM Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 4,163,480
Bonds, Series 2003A, 5.000%, 6/01/23 - AGM Insured
6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/10 at 101.00 BB+ 5,594,676
Madison Center Inc., Series 1999, 5.800%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
14,310 Total Indiana 13,987,564
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 N/R (4) 1,107,420
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 Revenue 6/17 at 100.00 BBB 5,685,205
Bonds, Series 2005B, 5.600%,6/01/34
------------------------------------------------------------------------------------------------------------------------------------
7,340 Total Iowa 6,792,625
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.9% (2.7% OF TOTAL INVESTMENTS)
17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 17,221,850
Improvement Bonds, Via Christi Health System Inc., Series
2001-III, 5.625%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.2% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,087,270
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008-A1, 6.000%, 12/01/38 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.1% (3.4% OF TOTAL INVESTMENTS)
3,960 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 Aa1 3,901,352
2006A, 4.500%, 5/01/41 - FGIC Insured (UB)
18,825 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 18,251,214
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
22,785 Total Louisiana 22,152,566
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.7% (2.5% OF TOTAL INVESTMENTS)
16,215 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 16,215,324
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 11.3% (7.6% 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 A1 (4) $ 21,369,400
15,390 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 Aa3 (4) 16,167,811
4,000 Michigan Municipal Bond Authority, Public School Academy 10/10 at 102.00 Ba1 3,955,200
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 8/10 at 100.00 BB- 1,811,340
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 8/10 at 100.00 BB- 2,000,300
4,000 6.500%, 8/15/18 8/10 at 100.00 BB- 3,969,240
------------------------------------------------------------------------------------------------------------------------------------
47,390 Total Michigan 49,273,291
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.6% (3.1% OF TOTAL INVESTMENTS)
5,000 Minneapolis, Minnesota, Health Care System Revenue Bonds,S 11/18 at 100.00 AAA 5,623,300
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 14,465,500
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%,
1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,000 Total Minnesota 20,088,800
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,990 Montana Board of Housing, Single Family Program Bonds, Series 12/10 at 100.00 AA+ 1,997,383
2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.9% (1.3% OF TOTAL INVESTMENTS)
12,275 Director of Nevada State Department of Business and Industry, 7/10 at 100.00 Caa2 3,942,607
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured (5)
3,500 Director of Nevada State Department of Business and Industry, 1/12 at 100.00 N/R 105,000
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40 (5)
2,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 AA+ 2,299,200
Catholic Healthcare West, Series 2007B, Trust 2633, 18.667%,
7/01/31 - BHAC Insured (IF)
1,750 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 AA+ 1,942,990
Healthcare West, Trust 2634 18.389%, 7/01/31 - BHAC Insured
(IF)
------------------------------------------------------------------------------------------------------------------------------------
19,525 Total Nevada 8,289,797
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.1% (1.4% OF TOTAL INVESTMENTS)
8,000 New Hampshire Business Finance Authority, Pollution Control 10/10 at 101.00 Baa1 8,124,720
Remarketed Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1992A, 5.850%, 12/01/22
1,070 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100.00 Aa2 1,077,372
Acquisition Bonds, Series 2001A, 5.700%, 1/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,070 Total New Hampshire 9,202,092
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5% (1.7% OF TOTAL INVESTMENTS)
3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 3,998,076
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
350 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 375,148
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 2,510,552
425 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 497,067
3,085 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,561,478
------------------------------------------------------------------------------------------------------------------------------------
10,055 Total New Jersey 10,942,321
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 61
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 5.6% (3.8% 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) $ 12,850,920
10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 11,565,828
------------------------------------------------------------------------------------------------------------------------------------
22,800 Total New Mexico 24,416,748
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.7% (6.5% OF TOTAL INVESTMENTS)
12,020 Brooklyn Areba Local Development Corporation, New York, No Opt. Call BBB- 915,203
Payment in Lieu of Taxes Revenue Bonds, Barclays Center
Project, Series 2009, 0.000%, 7/15/46
1,300 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A2 1,318,629
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 A2 (4) 3,669,660
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 6,301,860
Revenue Bonds, Series 2001L, 5.375%, 5/01/33 (Pre-refunded
5/01/11)
12,800 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA 12,638,976
Transportation Revenue Bonds, Series 2006B, 4.500%,
11/15/32 - AGM Insured (UB)
5,000 New York City Industrial Development Agency, New York, Special 8/12 at 101.00 B- 5,147,450
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 12,436,320
Water and Sewerage System Revenue Bonds, Fiscal Series
2001C, 5.125%, 6/15/33 (UB)
------------------------------------------------------------------------------------------------------------------------------------
52,720 Total New York 42,428,098
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,950 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 N/R 2,621,931
Bonds, Johnson and Wales University, Series 2003A, 5.000%,
4/01/33 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,390 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 1,433,590
Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.0% (1.3% 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 7,868,100
1,000 5.875%, 6/01/47 6/17 at 100.00 BBB 750,620
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Ohio 8,618,720
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.0% (2.1% OF TOTAL INVESTMENTS)
8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 A+ 8,190,880
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 Aa2 5,098,700
Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Oregon 13,289,580
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3% (2.2% OF TOTAL INVESTMENTS)
5,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 5,340,100
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- 584,994
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
8,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 (4) 8,395,360
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
(Pre-refunded 1/15/11)
------------------------------------------------------------------------------------------------------------------------------------
13,585 Total Pennsylvania 14,320,454
------------------------------------------------------------------------------------------------------------------------------------
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/19 at 100.00 A+ $ 2,712,075
Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
30,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call Aa2 1,892,400
Bonds, Series 2007A, 0.000%, 8/01/54 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,500 Total Puerto Rico 4,604,475
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 26.7% (18.0% OF TOTAL INVESTMENTS)
7,500 Austin, Texas, Electric Utility System Revenue Refunding 11/10 at 100.00 AAA 7,520,850
Bonds, Series 2001, 5.000%, 11/15/30 - AGM Insured
10,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 8,836,900
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 - AGM Insured 7/10 at 100.00 AAA 15,010,350
1,750 5.200%, 1/15/31 - AGM Insured 7/10 at 100.00 AAA 1,750,683
6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 6,020,820
Regional Health System, Series 2004A, 7.125%, 9/01/34
10,000 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Ba1 10,228,200
Waste Disposal Revenue Bonds, Citgo Petroleum Corporation
Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum
Tax)
1,500 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 69.08 A 217,830
Revenue Bonds, Series 2001H, 0.000%, 11/15/37 - NPFG Insured
30,980 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 A 29,143,196
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
NPFG Insured
40,000 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 54.04 A 4,777,600
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 -
NPFG Insured
3,965 Harris County-Houston Sports Authority, Texas, Third Lien 11/24 at 52.47 A 662,393
Revenue Bonds, Series 2004-A3., 0.000%, 11/15/35 - NPFG
Insured
Hays Consolidated Independent School District, Hays County,
Texas, General Obligation School Building Bonds, Series
2001:
10,715 0.000%, 8/15/25 (Pre-refunded 8/15/11) 8/11 at 43.18 AAA 4,585,699
12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 5,207,962
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 A2 1,482,000
5,540 0.000%, 9/01/31 - AMBAC Insured No Opt. Call A2 1,537,184
5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100.00 Ba3 5,207,350
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- 3,384,558
Financing Corporation, Revenue Bonds, Series 2007,
Residuals 1760-3, 16.855%, 2/15/36 (IF)
1,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central 8/12 at 39.43 BBB+ 319,850
Texas Turnpike System, Series 2002A, 0.000%, 8/15/28 -
AMBAC Insured
10,500 Texas, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aaa 10,821,930
Program, Series 2001, 5.250%, 8/01/35
------------------------------------------------------------------------------------------------------------------------------------
180,685 Total Texas 116,715,355
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.1% (2.8% OF TOTAL INVESTMENTS)
7,250 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 7,449,592
Refunding and Improvement Bonds, Series 2001, 5.125%,
3/01/26 - AGM Insured
7,500 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AA 7,664,474
Bonds, Sisters of Providence Health System, Series 2001A,
5.250%, 10/01/21 - NPFG Insured
840 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 854,682
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
2,100 Washington, Certificates of Participation, Washington 7/10 at 100.00 AA 2,106,677
Convention and Trade Center, Series 1999, 5.125%, 7/01/13 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
17,690 Total Washington 18,075,425
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 63
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
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 $ 5,049,300
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, Revenue 5/12 at 100.00 N/R (4) 1,123,429
Bonds, Divine Savior Healthcare, Series 2002A, 7.375%,
5/01/26 (Pre-refunded 5/01/12)
------------------------------------------------------------------------------------------------------------------------------------
$ 794,835 Total Investments (cost $627,361,192) - 148.1% 646,267,891
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.1)% (26,661,650)
--------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value - (196,000,000)
(44.9)% (6)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 12,770,493
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 436,376,734
====================================================================================================================
(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.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 30.3%
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
64 Nuveen Investments
NZF | Nuveen Dividend Advantage Municipal Fund 3
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 152.0% (99.6% OF TOTAL INVESTMENTS)
ALABAMA - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 3,500 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 3,546,655
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
(UB)
5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 A (4) 5,988,306
Department Facilities, Series 2001, 5.250%, 10/01/26
(Pre-refunded 10/01/11) - AMBAC Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,155 Total Alabama 9,534,961
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 672,230
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.0% (0.7% OF TOTAL INVESTMENTS)
3,390 Arizona State Transportation Board, Highway Revenue Bonds, 7/18 at 100.00 AAA 3,976,877
Series 2006, Trust 3151, 13.331%, 7/01/33 (IF)
2,200 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 1,961,872
Bonds, Citigroup Energy Inc Prepay Contract Obligations,
Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
5,590 Total Arizona 5,938,749
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7% (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 N/R 1,951,440
1,900 5.500%, 11/01/14 11/11 at 101.00 N/R 2,054,147
------------------------------------------------------------------------------------------------------------------------------------
3,705 Total Arkansas 4,005,587
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.3% (8.7% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Health
Facility Revenue Bonds, Adventist Health System/West, Series
2003A:
2,065 5.000%, 3/01/28 3/13 at 100.00 A 2,055,212
140 5.000%, 3/01/33 3/13 at 100.00 A 136,091
3,400 California Health Facilities Financing Authority, Revenue 10/19 at 100.00 AA 3,575,882
Bonds, Providence Health & Services, Series 2009B, 5.500%,
10/01/39
2,900 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 2,673,191
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 5,057,250
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 5,607,113
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.554%, 11/15/48 (IF)
18,850 California, General Obligation Veterans Welfare Bonds, Series 6/10 at 100.00 AA- 18,852,262
2001BZ, 5.350%, 12/01/21 - NPFG Insured (Alternative Minimum
Tax)
11,865 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 8,286,397
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:
12,280 5.750%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A- 12,594,982
5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A- 5,023,750
1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A- 1,490,295
10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 A- 9,739,900
10,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 1,409,200
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - NPFG Insured
3,000 San Mateo County Community College District, California, No Opt. Call Aaa 966,510
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
91,355 Total California 77,468,035
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 65
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.6% (4.3% OF TOTAL INVESTMENTS)
$ 2,250 Canterberry Crossing Metropolitan District II, Parker, 12/12 at 100.00 N/R (4) $ 2,554,808
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, Charter 3/13 at 100.00 N/R (4) 1,813,851
School Revenue Bonds, Belle Creek Education Center, Series
2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)
3,085 Colorado Educational and Cultural Facilities Authority, Charter 5/10 at 102.00 N/R (4) 3,147,286
School Revenue Bonds, Montessori Peaks Building Foundation,
Series 2002A, 8.000%, 5/01/32 (Pre-refunded 5/01/10)
1,775 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 N/R (4) 1,904,930
School Revenue Bonds, Weld County School District 6 -
Frontier Academy, Series 2001, 7.375%, 6/01/31 (Pre-refunded
6/01/11)
3,345 Colorado Educational and Cultural Facilities Authority, Revenue 5/16 at 102.00 N/R 2,886,668
Bonds, Montessori Peaks Academy, Series 2006A, 5.400%,
5/01/26
3,380 Colorado Housing Finance Authority, Multifamily Project Bonds, 10/11 at 100.00 AAA 3,402,274
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 N/R 3,889,500
General Obligation Limited Tax Bonds, Series 2007, 5.600%,
12/01/34 - RAAI Insured
3,300 Denver City and County, Colorado, Airport Revenue Bonds, Series 11/16 at 100.00 A+ 3,466,914
2006, 5.000%, 11/15/24 - FGIC Insured
Denver, Colorado, Airport Revenue Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,668,820
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,531,506
2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 2,112,820
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC
Insured (Alternative Minimum Tax)
Maher Ranch Metropolitan District 4, Colorado, General
Obligation Limited Tax Bonds, Series 2007:
450 5.125%, 12/01/27 - RAAI Insured 12/17 at 100.00 N/R 392,081
2,000 5.250%, 12/01/36 - RAAI Insured 12/17 at 100.00 N/R 1,659,240
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 1,003,600
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
38,850 Total Colorado 38,434,298
------------------------------------------------------------------------------------------------------------------------------------
DELAWARE - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,055 Delaware Housing Authority, Multifamily Mortgage Revenue Bonds, 7/12 at 100.00 Aa3 1,089,288
Series 2001A, 5.400%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.0% (0.7% OF TOTAL INVESTMENTS)
1,375 District of Columbia, Revenue Bonds, Catholic University of 10/10 at 100.50 A 1,389,534
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AA+ 1,322,745
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.356%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 AA+ 3,304,385
Revenue Bonds, Residual Series 1730, 1731, 1736, 11.272%,
10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,045 Total District of Columbia 6,016,664
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.1% (1.4% OF TOTAL INVESTMENTS)
Orange County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
1,105 5.400%, 12/01/32 - AGM Insured 12/11 at 100.00 AAA 1,110,934
2,195 5.450%, 12/01/41 - AGM Insured 12/11 at 100.00 AAA 2,204,790
2,775 Pace Property Finance Authority Inc., Florida, Utility System 9/10 at 100.00 N/R 2,775,888
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- 5,360,192
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 801,160
Assessment Bonds, Series 2007, 6.650%, 5/01/40
------------------------------------------------------------------------------------------------------------------------------------
12,530 Total Florida 12,252,964
------------------------------------------------------------------------------------------------------------------------------------
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 7/10 at 101.00 A+ $ 5,040,250
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 3,037,824
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 1,269,660
Revenue Bonds, Elderly Care, Lenbrook Square Project, Series
2006A, 5.125%, 7/01/42
3,740 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 3,927,486
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 311,135
Facilities Revenue Bonds, Riverside Military Academy
Project, Series 2007, 5.125%, 3/01/37
------------------------------------------------------------------------------------------------------------------------------------
13,940 Total Georgia 13,586,355
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.7% (9.6% OF TOTAL INVESTMENTS)
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 8,514,779
5.500%, 1/01/19 - AGM Insured (Alternative Minimum Tax)
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A2 4,902,728
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 Revenue No Opt. Call Aa3 2,532,110
Bonds, Series 2001A, 5.500%, 1/01/16 - NPFG Insured
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 11/11 at 100.00 Aa2 (4) 10,655,900
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 A1 1,168,344
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 A1 2,444,487
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 BBB 3,074,832
Systems, Series 2007A, 5.500%, 8/01/37
9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB- 8,480,700
Retirement Communities Inc., Series 2001, 5.875%, 12/01/31
15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa3 (4) 15,943,200
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 2,775,350
Obligation Bonds, Series 2005, 0.000%, 2/01/22 - AMBAC
Insured
7,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 5,687,920
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
16,900 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/10 at 101.00 AAA 17,081,337
Bonds, McCormick Place Expansion Project, Series 1999A,
5.250%, 12/15/28 - FGIC Insured
2,265 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,547,695
Refunding Bonds, McCormick Place Expansion Project, Series
1998A, 5.500%, 6/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
87,675 Total Illinois 85,809,382
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.9% (3.9% OF TOTAL INVESTMENTS)
Clark-Pleasant Community School Building Corporation, Indiana,
First Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AA+ (4) 1,346,916
1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AA+ (4) 1,073,240
Evansville Vanderburgh Public Library Lease Corporation,
Indiana, First Mortgage Bonds, Series 2001:
2,000 5.750%, 7/15/18 (Pre-refunded 1/15/12) - NPFG Insured 1/12 at 100.00 A+ (4) 2,171,900
2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - NPFG Insured 1/12 at 100.00 A+ (4) 2,957,240
1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 A (4) 1,344,200
Corporation, Indiana, First Mortgage Bonds, Series 2001,
5.125%, 1/15/23 (Pre-refunded 1/15/12) - AMBAC Insured
Nuveen Investments 67
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 9,500 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 A $ 9,652,190
University, Series 2001, 5.500%, 2/01/26 - NPFG Insured
4,230 Indiana Finance Authority, Educational Facilities Revenue 6/15 at 100.00 Aa3 4,399,073
Bonds, Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24
2,600 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 A 2,444,650
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 3,556,175
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 2,158,125
2,500 5.800%, 9/01/47 9/17 at 100.00 N/R 2,144,575
1,090 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 A1 (4) 1,226,686
Bonds, Series 2001, 5.500%, 7/15/22 (Pre-refunded 1/15/13) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,175 Total Indiana 34,474,970
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 6.0% (3.9% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River 5/11 at 100.00 Aa3 2,003,560
Medical Center, Series 2001, 5.250%, 5/15/31 - AGM Insured
1,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 748,080
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
26,855 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 28,198,556
3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,185,618
------------------------------------------------------------------------------------------------------------------------------------
33,805 Total Iowa 35,135,814
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
Manhattan Health Care Facility Revenue Bonds, Kansas,
Meadowlarks Hills Retirement, Series 2007B:
1,000 5.125%, 5/15/37 5/14 at 103.00 N/R 785,830
1,000 5.125%, 5/15/42 5/14 at 103.00 N/R 768,860
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Kansas 1,554,690
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.4% (2.2% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,085,870
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008-A1, 6.000%, 12/01/42 - AGC Insured
18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AA- 18,945,480
Kentucky, Sewer and Drainage System Revenue Bonds, Series
2001A, 5.125%, 5/15/27 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
19,500 Total Kentucky 20,031,350
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.4% (2.9% OF TOTAL INVESTMENTS)
3,000 Louisiana Local Government Environmental Facilities & Community 11/17 at 100.00 BB 3,095,820
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 Baa1 3,361,746
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 19,283,753
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
26,590 Total Louisiana 25,741,319
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.1% (0.7% OF TOTAL INVESTMENTS)
Maine State Housing Authority, Single Family Mortgage Purchase
Bonds, Series 2001B:
4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,630,146
1,610 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,613,864
------------------------------------------------------------------------------------------------------------------------------------
6,220 Total Maine 6,244,010
------------------------------------------------------------------------------------------------------------------------------------
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.4% (1.7% OF TOTAL INVESTMENTS)
$ 1,000 Howard County, Maryland, Retirement Community Revenue Bonds, 4/17 at 100.00 N/R $ 736,730
Vantage House, Series 2007B, 5.250%, 4/01/37
1,570 Maryland Community Development Administration, Insured 7/11 at 100.00 Aa2 1,583,345
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 1,454,400
Chesapeake Bay Hyatt Conference Center, Series 2006A,
5.000%, 12/01/31
10,600 Maryland Energy Financing Administration, Revenue Bonds, AES 7/10 at 100.00 N/R 10,603,604
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- 500,355
Revenue Bonds, Mercy Ridge Retirement Community, Series
2007, 4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
15,725 Total Maryland 14,878,434
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,375 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 1,113,406
Orchard Cove, Series 2007, 5.250%, 10/01/26
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 675,910
Revenue Bonds, Milton Hospital Project, Series 2005D,
5.250%, 7/01/30
1,600 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 1,632,400
Revenue Refunding Bonds, Suffolk University Issue, Series
2009A, 5.750%, 7/01/39
4,860 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 5,323,887
Revenue Bonds, Series 2008, Trust 3145, 15.178%, 6/01/39 (IF)
5,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 N/R 4,655,550
Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 - AMBAC
Insured (Alternative Minimum Tax)
3,465 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 3,381,251
Series 2007A, 4.500%, 8/01/46 - AGM Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
17,300 Total Massachusetts 16,782,404
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 9.5% (6.2% OF TOTAL INVESTMENTS)
15,000 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA 16,552,930
Tax School Building and Site Improvement Bonds, Series
2001A, 6.000%, 5/01/29 - AGM Insured (UB)
2,000 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 1,337,760
Bonds, Garden City Hospital Obligated Group, Series 2007A,
5.000%, 8/15/38
11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 11,758,560
Spectrum Health, Series 2001A, 5.500%, 1/15/31 (Pre-refunded
7/15/11)
1,165 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 Aa3 1,220,862
Program, Series 2001I, 5.500%, 10/15/18
70 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ (4) 74,894
Program, Series 2001I, 5.500%, 10/15/18 (Pre-refunded
10/15/11)
1,355 Michigan State Hospital Finance Authority, Hospital Revenue 8/10 at 100.00 Ba3 1,160,246
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 A (4) 3,779,378
Refunding Bonds, Sisters of Mercy Health Corporation, Series
1993P, 5.375%, 8/15/14 - NPFG Insured (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Sparrow Obligated Group, Series 2001:
1,400 5.500%, 11/15/21 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 1,515,920
2,500 5.625%, 11/15/31 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 2,711,775
3,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 3,467,905
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 11,984,110
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
54,115 Total Michigan 55,564,340
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 69
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 2,230 Dakota County Community Development Agency, Minnesota, GNMA 10/11 at 105.00 Aaa $ 2,324,619
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 1,096,370
Regions Hospital Parking Ramp Project, Series 2007-1,
5.000%, 8/01/36
------------------------------------------------------------------------------------------------------------------------------------
3,605 Total Minnesota 3,420,989
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/10 at 102.00 AAA 2,174,912
Retirement Facility Mortgage Revenue Refunding Bonds,
Aldersgate Retirement Community Inc. Project, Series 1999A,
5.450%, 5/20/34
3,000 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,079,710
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
5,155 Total Mississippi 5,254,622
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.0% (2.0% OF TOTAL INVESTMENTS)
1,495 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,313,313
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 753,510
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) 2,033,342
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 (Pre-refunded 12/01/11) - NPFG Insured 12/11 at 100.00 AA- (4) 3,579,155
3,510 5.250%, 12/01/20 (Pre-refunded 12/01/11) - NPFG Insured 12/11 at 100.00 AA- (4) 3,766,967
3,695 5.250%, 12/01/21 (Pre-refunded 12/01/11) - NPFG Insured 12/11 at 100.00 AA- (4) 3,965,511
2,040 5.250%, 12/01/22 (Pre-refunded 12/01/11) - NPFG Insured 12/11 at 100.00 AA- (4) 2,189,348
------------------------------------------------------------------------------------------------------------------------------------
16,900 Total Missouri 17,601,146
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B 4,592,400
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.8% (0.5% OF TOTAL INVESTMENTS)
Nebraska Investment Finance Authority, Single Family Housing
Revenue Bonds, Series 2001D:
1,245 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 1,245,125
1,645 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 1,675,877
1,005 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AA+ 1,567,036
System Revenue Bonds, Nebraska City 2, Series 2006A,
19.751%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
3,895 Total Nebraska 4,488,038
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.8% (1.8% OF TOTAL INVESTMENTS)
10,000 Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien 1/20 at 100.00 Aa3 10,623,900
Series 2010B, 5.750%, 7/01/42
2,000 Director of Nevada State Department of Business and Industry, 7/10 at 100.00 Caa2 642,380
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured (5)
4,000 Director of Nevada State Department of Business and Industry, 1/12 at 100.00 N/R 120,000
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40 (5)
165 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/10 at 100.00 Aaa 168,147
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) 4,615,225
Series 2001A, 5.250%, 7/01/26 (Pre-refunded 1/01/12) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
20,455 Total Nevada 16,169,652
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,000 New Hampshire Health and Education Authority, Hospital Revenue 10/11 at 101.00 Aa3 2,046,040
Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 -
AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 A2 $ 9,780,500
Revenue Bonds, American Water Company, Series 2002A,
5.250%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax)
585 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 475,318
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call Aa3 4,591,950
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/13 - AMBAC Insured
12,970 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,509,682
System Bonds, Capital Appreciation Series 2010A, 0.000%,
12/15/33
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 6,895,400
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
2,045 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,466,572
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%,
6/01/34
------------------------------------------------------------------------------------------------------------------------------------
49,725 Total New Jersey 26,719,422
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.5% (2.9% OF TOTAL INVESTMENTS)
900 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 773,370
Brighter Choice Charter Schools, Series 2007A, 5.000%,
4/01/32
Brooklyn Areba Local Development Corporation, New York,
Payment in Lieu of Taxes Revenue Bonds, Barclays Center
Project, Series 2009:
1,275 6.000%, 7/15/30 1/20 at 100.00 BBB- 1,313,633
3,400 0.000%, 7/15/44 No Opt. Call BBB- 308,482
1,780 East Rochester Housing Authority, New York, GNMA Secured 10/11 at 101.00 AAA 1,808,694
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 A 4,663,158
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
4,155 Monroe County Airport Authority, New York, Revenue Refunding No Opt. Call A 4,407,416
Bonds, Greater Rochester International Airport, Series
1999, 5.750%, 1/01/13 - NPFG Insured (Alternative Minimum
Tax)
8,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 8,208,880
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 1,866,177
Series 2002G, 5.625%, 8/01/20 - NPFG Insured
785 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA (4) 870,596
Series 2002G, 5.625%, 8/01/20 (Pre-refunded 8/01/12) - NPFG
Insured
2,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 2,085,960
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
29,020 Total New York 26,306,366
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,710 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,745,534
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149, 14.932%, 1/15/47 (IF)
1,200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 1,222,500
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 AAA 2,001,108
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 A 1,763,280
Revenue Bonds, Series 2003A, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
6,260 Total North Carolina 6,732,422
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.1% (0.7% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
3,165 5.125%, 6/01/24 6/17 at 100.00 BBB 2,923,827
710 5.875%, 6/01/30 6/17 at 100.00 BBB 601,221
685 5.750%, 6/01/34 6/17 at 100.00 BBB 538,965
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,178,473
Nuveen Investments 71
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 1,080 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/10 at 100.00 Aaa $ 1,095,606
Program Residential Mortgage Revenue Bonds, Series 1998A-1,
5.300%, 9/01/19 - AGM Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,210 Total Ohio 6,338,092
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.9% (1.3% OF TOTAL INVESTMENTS)
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
4,370 5.000%, 2/15/37 2/17 at 100.00 A 4,129,519
955 5.000%, 2/15/42 2/17 at 100.00 A 890,337
6,305 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 6,315,214
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 88,115
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.380%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
11,718 Total Oklahoma 11,423,185
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5% (1.7% OF TOTAL INVESTMENTS)
4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AA- 4,814,304
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 10,012,400
Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42
(Alternative Minimum Tax) (UB)
------------------------------------------------------------------------------------------------------------------------------------
14,700 Total Oregon 14,826,704
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.7% (1.1% 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 2,136,040
2,000 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 2,136,040
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 430,675
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,500 Pennsylvania Economic Development Financing Authority, Senior 7/10 at 100.00 CC 1,955,100
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 Obligation 8/12 at 100.00 Aa2 (4) 3,540,243
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,205 Total Pennsylvania 10,198,098
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 Aa2 2,522,150
Bonds, Series 2007A, 5.250%, 8/01/57
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
5,850 South Carolina Transportation Infrastructure Bank, Revenue 10/11 at 100.00 Aa3 (4) 6,257,570
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- 578,974
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 5,341,605
Revenue Bonds, Series 2001A, 5.500%, 3/01/14 - AGM Insured
(Alternative Minimum Tax)
275 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 252,951
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 (7) 11/17 at 100.00 N/R 519,520
2,800 5.500%, 11/01/46 (7) 11/17 at 100.00 N/R 1,818,320
745 Tennessee Housing Development Agency, Homeownership Program 7/10 at 100.00 AA+ 745,380
Bonds, Series 1998-2, 5.350%, 7/01/23 (Alternative Minimum
Tax)
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 760 Tennessee Housing Development Agency, Homeownership Program 7/11 at 100.00 AA+ $ 765,084
Bonds, Series 2001-3A, 5.200%, 7/01/22 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,270 Total Tennessee 10,021,834
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 21.4% (14.0% OF TOTAL INVESTMENTS)
5,445 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA 5,380,912
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
595 Brushy Creek Municipal Utility District, Williamson County, 7/10 at 100.00 Aa3 595,488
Texas, Combination Unlimited Tax and Revenue Refunding
Bonds, Series 2001, 5.125%, 6/01/26 - AGM 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 Aa1 1,980,307
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 Aa1 2,078,804
3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,870,906
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 Regional 9/14 at 100.00 N/R 5,014,100
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 4,272,704
Obligation, Series 2001, 5.000%, 8/15/27
6,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call N/R (4) 7,281,960
Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - NPFG
Insured (ETM)
7,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 A 7,012,810
Series 1998B, 5.250%, 7/01/14 - FGIC Insured (Alternative
Minimum Tax)
Houston, Texas, Subordinate Lien Airport System Revenue
Refunding Bonds, Series 2001A:
2,525 5.500%, 7/01/13 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 2,658,244
2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 3,036,597
14,200 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 14,386,872
General Obligation Bonds, Series 2007A, 4.750%, 8/01/43 (UB)
Jefferson County Health Facilities Development Corporation,
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital
of Southeast Texas, Series 2001:
8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 N/R 8,607,100
8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 N/R 8,509,690
10,700 Laredo Independent School District, Webb County, Texas, General 8/11 at 100.00 AAA 11,141,696
Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25
8,000 Lower Colorado River Authority, Texas, Transmission Contract 5/20 at 100.00 A 8,151,680
Refunding Revenue Bonds, LCRA Transmission Services
Corporation Project, Refunding & Improvement Series 2010,
5.000%, 5/15/40 (WI/DD, Settling 5/18/10)
2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call BBB+ 2,417,350
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 3,306,902
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 3,120,729
Obligation Port Improvement Bonds, Series 2001B, 5.500%,
10/01/17 - FGIC Insured (Alternative Minimum Tax)
7,700 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 7,752,283
Corporation, Texas, Revenue Bonds, Texas Health Resources,
Series 2007A, 5.000%, 2/15/36 (UB)
9,300 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 9,201,792
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/37 8/15 at 31.98 AAA 2,229,399
9,110 0.000%, 8/15/40 8/15 at 27.11 AAA 1,885,041
7,110 0.000%, 8/15/44 8/15 at 21.88 AAA 1,182,891
------------------------------------------------------------------------------------------------------------------------------------
142,200 Total Texas 125,076,257
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 73
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5% (0.3% OF TOTAL INVESTMENTS)
Utah Housing Corporation, Single Family Mortgage Bonds, Series
2001E:
$ 840 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- $ 848,988
255 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 257,341
Utah Housing Corporation, Single Family Mortgage Bonds, Series
2001F-1:
1,245 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 1,257,662
370 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 370,137
------------------------------------------------------------------------------------------------------------------------------------
2,710 Total Utah 2,734,128
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 914,800
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.375%, 12/01/28
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 16.0% (10.5% OF TOTAL INVESTMENTS)
Bellingham Housing Authority, Washington, Housing Revenue
Bonds, Varsity Village Project, Series 2001A:
1,000 5.500%, 12/01/27 - NPFG Insured 12/11 at 100.00 Aa3 1,016,941
2,000 5.600%, 12/01/36 - NPFG Insured 12/11 at 100.00 Aa3 2,020,421
2,500 King County, Washington, Sewer Revenue Bonds, Series 2009, 1/19 at 100.00 AA+ 2,674,876
5.250%, 1/01/42
12,955 Port of Seattle, Washington, Passenger Facility Charge Revenue 6/10 at 100.50 A 13,033,379
Bonds, Series 1998A, 5.300%, 12/01/16 - AMBAC Insured
(Alternative Minimum Tax)
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535 5.625%, 4/01/18 - FGIC Insured (Alternative Minimum Tax) (UB) 10/11 at 100.00 Aa2 2,671,434
16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum Tax) (UB) 7/10 at 100.00 Aa2 16,000,960
1,440 Public Utility District 1, Benton County, Washington, Electric 11/11 at 100.00 N/R (4) 1,547,079
Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15
(Pre-refunded 11/01/11) - AGM Insured
650 Public Utility District 1, Benton County, Washington, Electric 11/11 at 100.00 Aa3 692,713
Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15 -
AGM Insured
5,680 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 5,868,861
Refunding and Improvement Bonds, Series 2001, 5.500%,
3/01/18 - AGM Insured
4,530 Tacoma, Washington, Solid Waste Utility Revenue Refunding 12/11 at 100.00 AA (4) 4,857,158
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) 3,964,926
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) 5,904,700
25,435 5.625%, 10/01/31 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 BBB- (4) 27,450,978
Washington State Healthcare Facilities Authority, Revenue
Bonds, Group Health Cooperative of Puget Sound, Series 2001:
3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 BBB+ 3,062,516
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 BBB+ 2,957,297
------------------------------------------------------------------------------------------------------------------------------------
89,845 Total Washington 93,724,239
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.5% (2.9% 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) 3,991,619
1,850 5.000%, 1/01/21 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 N/R (4) 1,981,628
12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/10 at 100.00 A 12,461,925
Bonds, Dairyland Power Cooperative, Series 1997B, 5.550%,
2/01/15 - AMBAC Insured
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ 890,130
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2007, 5.000%, 9/01/33
350 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 356,048
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30
3,650 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- (4) 3,921,013
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11)
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ $ 2,527,525
Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25
50 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 44,774
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
25,355 Total Wisconsin 26,174,662
------------------------------------------------------------------------------------------------------------------------------------
$ 950,908 Total Municipal Bonds (cost $885,935,399) 888,758,660
=============-----------------------------------------------------------------------------------------------------------------------
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 0.6% (0.4% OF TOTAL INVESTMENTS)
6,266 BlackRock MuniHoldings Fund Inc. $ 98,376
26,880 Dreyfus Strategic Municipal Fund 227,674
131,278 DWS Municipal Income Trust 1,598,966
43,420 PIMCO Municipal Income Fund II 481,094
43,020 Van Kampen Investment Grade Municipal Trust 609,163
30,000 Van Kampen Municipal Opportunity Trust 413,700
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $3,325,133) 3,428,973
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $889,260,532) - 152.6% 892,187,633
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.0)% (75,908,650)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 5,231,135
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (40.5)% (6) (236,950,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 584,560,118
====================================================================================================================
(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.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's
custodian to cease accruing additional income on the Fund's records.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 26.6%
(7) For fair value measurement disclosure purposes, investment categorized
as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value
Measurements for more information.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 75
| Statement of
| Assets & Liabilities
April 30, 2010 (Unaudited)
PERFORMANCE MUNICIPAL MARKET
PLUS ADVANTAGE OPPORTUNITY
(NPP) (NMA) (NMO)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,280,293,947, $939,205,356 and $1,012,817,147,
respectively) $1,323,806,376 $ 950,255,547 $1,012,295,592
Cash 521,064 170,605 7,401,434
Receivables:
Dividends and interest 18,924,309 16,024,714 15,449,162
Investments sold 17,978,000 26,195,543 1,300,000
Deferred offering costs -- 2,125,419 4,202,047
Other assets 303,760 97,638 102,186
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,361,533,509 994,869,466 1,040,750,421
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 42,630,000 67,694,983 48,745,000
Payables:
Investments purchased -- 2,194,071 --
Auction Rate Preferred share dividends 17,089 23,797 33,159
Common share dividends 3,957,295 2,977,593 3,167,337
Interest -- 17,727 --
MuniFund Term Preferred shares, at liquidation value -- -- --
Variable Rate Demand Preferred shares, at liquidation value -- 296,800,000 350,900,000
Accrued expenses:
Management fees 676,223 481,343 504,120
Offering costs -- 381,451 552,704
Other 498,450 223,805 91,805
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 47,779,057 370,794,770 403,994,125
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 419,900,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 893,854,452 $ 624,074,696 $ 636,756,296
====================================================================================================================================
Common shares outstanding 59,914,073 43,336,100 45,615,495
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable to Common
shares, divided by Common shares outstanding) $ 14.92 $ 14.40 $ 13.96
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 599,141 $ 433,361 $ 456,155
Paid-in surplus 838,340,717 606,033,640 636,551,953
Undistributed (Over-distribution of) net investment income 14,929,704 10,849,549 11,145,815
Accumulated net realized gain (loss) (3,527,539) (4,292,045) (10,876,072)
Net unrealized appreciation (depreciation) 43,512,429 11,050,191 (521,555)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 893,854,452 $ 624,074,696 $ 636,756,296
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Auction Rate Preferred 1,000,000 1,000,000 1,000,000
MuniFund Term Preferred -- -- --
Variable Rate Demand Preferred -- Unlimited Unlimited
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
76 Nuveen Investments
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $852,049,233, $627,361,192 and $889,260,532,
respectively) $ 858,364,556 $ 646,267,891 $ 892,187,633
Cash 5,573,225 1,689,432 1,121,902
Receivables:
Dividends and interest 13,225,659 11,453,064 15,612,590
Investments sold 2,487,651 46,047 91,605
Deferred offering costs 2,495,617 2,178,852 --
Other assets 184,332 50,813 184,992
------------------------------------------------------------------------------------------------------------------------------------
Total assets 882,331,040 661,686,099 909,198,722
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 51,605,000 26,661,650 75,908,650
Payables:
Investments purchased 40,660 -- 8,119,360
Auction Rate Preferred share dividends 16,417 -- 8,319
Common share dividends 2,866,891 2,269,982 3,038,431
Interest 487,013 -- --
MuniFund Term Preferred shares, at liquidation value 144,300,000 -- --
Variable Rate Demand Preferred shares, at liquidation value -- 196,000,000 --
Accrued expenses:
Management fees 429,096 292,171 374,639
Offering costs 382,110 -- --
Other 300,360 85,562 239,205
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 200,427,547 225,309,365 87,688,604
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 120,075,000 -- 236,950,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 561,828,493 $ 436,376,734 $ 584,560,118
====================================================================================================================================
Common shares outstanding 39,287,298 29,440,680 40,378,174
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable to Common
shares, divided by Common shares outstanding) $ 14.30 $ 14.82 $ 14.48
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 392,873 $ 294,407 $ 403,782
Paid-in surplus 551,021,444 420,735,681 575,532,006
Undistributed (Over-distribution of) net investment income 9,677,213 4,775,143 8,899,126
Accumulated net realized gain (loss) (5,578,360) (8,335,196) (3,201,897)
Net unrealized appreciation (depreciation) 6,315,323 18,906,699 2,927,101
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 561,828,493 $ 436,376,734 $ 584,560,118
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Auction Rate Preferred Unlimited Unlimited Unlimited
MuniFund Term Preferred Unlimited -- --
Variable Rate Demand Preferred -- Unlimited --
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 77
| Statement of
| Operations
Six Months Ended April 30, 2010 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $36,096,977 $27,409,802 $28,474,781 $24,294,265 $18,804,815 $24,628,860
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,088,039 2,894,140 3,026,918 2,584,052 1,916,569 2,702,299
Auction fees 312,337 230,350 278,637 182,345 98,544 176,252
Dividend disbursing
agent fees 24,795 27,370 20,712 14,877 -- 14,877
Shareholders' servicing agent
fees and expenses 56,489 35,944 37,256 5,088 2,184 2,851
Interest expense and amortization of
offering costs 153,584 356,961 292,978 681,144 428,225 260,956
Liquidity fees -- 462,798 308,434 -- 756,229 --
Custodian's fees and expenses 108,358 81,002 82,893 70,171 52,543 70,513
Directors'/Trustees' fees and expenses 20,316 14,771 15,763 13,174 9,161 13,277
Professional fees 61,604 43,711 48,725 39,062 25,827 44,084
Shareholders' reports - printing and
mailing expenses 99,893 65,541 72,869 56,402 41,389 56,959
Stock exchange listing fees 10,094 7,306 7,675 6,618 2,060 2,828
Investor relations expense 50,390 35,793 37,959 30,562 23,011 30,922
Other expenses 42,619 34,211 35,026 19,432 17,963 24,636
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 5,028,518 4,289,898 4,265,845 3,702,927 3,373,705 3,400,454
Custodian fee credit (2,523) (2,903) (3,249) (2,217) (1,392) (832)
Expense reimbursement -- -- -- -- (284,286) (440,951)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,025,995 4,286,995 4,262,596 3,700,710 3,088,027 2,958,671
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,070,982 23,122,807 24,212,185 20,593,555 15,716,788 21,670,189
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 2,858,629 796,290 1,501,764 453,103 70,098 83,470
Change in net unrealized appreciation
(depreciation) of investments 18,796,074 14,183,321 13,170,874 13,544,892 9,753,254 11,578,761
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 21,654,703 14,979,611 14,672,638 13,997,995 9,823,352 11,662,231
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE
PREFERRED SHAREHOLDERS
From net investment income (776,498) (379,240) (639,222) (460,774) -- (374,524)
From accumulated net realized gains (47,490) (183,376) -- -- -- (125,552)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Auction Rate Preferred
shareholders (823,988) (562,616) (639,222) (460,774) -- (500,076)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $51,901,697 $37,539,802 $38,245,601 $34,130,776 $25,540,140 $32,832,344
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
78 Nuveen Investments
| 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
4/30/10 10/31/09 4/30/10 10/31/09 4/30/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 31,070,982 $ 61,694,850 $ 23,122,807 $ 47,685,667 $ 24,212,185 $ 49,900,093
Net realized gain (loss) from:
Investments 2,858,629 (3,345,387) 796,290 (953,244) 1,501,764 2,387,779
Futures contracts -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation) of:
Investments 18,796,074 101,733,867 14,183,321 77,128,841 13,170,874 49,202,041
Futures contracts -- -- -- -- -- --
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (776,498) (3,512,067) (379,240) (2,612,721) (639,222) (2,842,583)
From accumulated net realized
gains (47,490) -- (183,376) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 51,901,697 156,571,263 37,539,802 121,248,543 38,245,601 98,647,330
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (27,105,126) (47,194,320) (20,879,161) (36,309,116) (21,603,635) (36,674,027)
From accumulated net realized gains (814,831) -- (2,827,574) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (27,919,957) (47,194,320) (23,706,735) (36,309,116) (21,603,635) (36,674,027)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 1,428,464 271,443 795,414 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- 1,428,464 271,443 795,414 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 23,981,740 109,376,943 15,261,531 85,210,870 17,437,380 61,973,303
Net assets applicable to Common
shares at the beginning of
period 869,872,712 760,495,769 608,813,165 523,602,295 619,318,916 557,345,613
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 893,854,452 $ 869,872,712 $ 624,074,696 $ 608,813,165 $ 636,756,296 $ 619,318,916
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 14,929,704 $ 11,740,346 $ 10,849,549 $ 8,985,143 $ 11,145,815 $ 9,176,487
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 79
| Statement of
| Changes in Net Assets (continued)
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
4/30/10 10/31/09 4/30/10 10/31/09 4/30/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,593,555 $ 42,070,572 $ 15,716,788 $ 30,653,112 $ 21,670,189 $ 43,429,444
Net realized gain (loss) from:
Investments 453,103 (762,348) 70,098 (3,563,781) 83,470 (520,239)
Futures contracts -- -- -- -- -- 1,331,299
Change in net unrealized
appreciation (depreciation) of:
Investments 13,544,892 76,279,407 9,753,254 50,177,046 11,578,761 76,051,358
Futures contracts -- -- -- -- -- 679,241
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (460,774) (2,117,175) -- -- (374,524) (2,094,400)
From accumulated net realized
gains -- -- -- -- (125,552) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 34,130,776 115,470,456 25,540,140 77,266,377 32,832,344 118,876,703
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (17,836,433) (32,490,598) (14,480,087) (26,078,788) (18,812,191) (34,349,713)
From accumulated net realized gains -- -- -- -- (2,547,863) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (17,836,433) (32,490,598) (14,480,087) (26,078,788) (21,360,054) (34,349,713)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 63,234 126,288 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- 63,234 126,288 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 16,294,343 82,979,858 11,123,287 51,313,877 11,472,290 84,526,990
Net assets applicable to Common
shares at the beginning of period 545,534,150 462,554,292 425,253,447 373,939,570 573,087,828 488,560,838
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 561,828,493 $ 545,534,150 $ 436,376,734 $ 425,253,447 $ 584,560,118 $ 573,087,828
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income at the
end of period $ 9,677,213 $ 7,380,865 $ 4,775,143 $ 3,538,442 $ 8,899,126 $ 6,415,652
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
80 Nuveen Investments
| Statement of
| Cash Flows
Six Months Ended April 30, 2010 (Unaudited)
MUNICIPAL MARKET DIVIDEND
ADVANTAGE OPPORTUNITY ADVANTAGE
(NMA) (NMO) (NAD)
-----------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM OPERATIONS $ 37,539,802 $ 38,245,601 $ 34,130,776
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 (70,845,166) (115,354,228) (37,322,616)
Proceeds from sales and maturities of investments 87,273,960 119,855,350 33,284,260
Proceeds from (Purchases of) short-term investments, net -- -- --
Amortization (Accretion) of premiums and discounts, net (2,907,896) (4,507,976) (3,864,531)
(Increase) Decrease in receivable for dividends and interest 180,347 60,634 126,363
(Increase) Decrease in receivable for investments sold 1,136,707 19,083,900 19,953,649
(Increase) Decrease in other assets 113,201 138,468 (15,474)
Increase (Decrease) in payable for investments purchased (17,334,534) (17,477,313) (7,234,216)
Increase (Decrease) in payable for Auction Rate Preferred share dividends 9,231 14,277 5,164
Increase (Decrease) in payable for interest 17,727 -- 487,013
Increase (Decrease) in accrued management fees (17,927) (19,712) (14,687)
Increase (Decrease) in accrued other liabilities (121,711) (255,639) 27,910
Net realized (gain) loss from investments (796,290) (1,501,764) (453,103)
Change in net unrealized (appreciation) depreciation of investments (14,183,321) (13,170,874) (13,544,892)
Taxes paid on undistributed capital gains -- (100) (493)
-----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 20,064,130 25,110,624 25,565,123
-----------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- -- (2,702,217)
Cash distributions paid to Common shareholders (22,075,962) (20,549,383) (17,751,174)
(Increase) Decrease in deferred offering costs (2,125,419) (4,202,047) (2,495,617)
Increase (Decrease) in accrued offering costs 381,451 552,704 382,110
Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (293,200,000) (346,675,000) (141,725,000)
Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value -- -- 144,300,000
Increase (Decrease) in Variable Rate Demand Preferred shares, at
liquidation value 296,800,000 350,900,000 --
-----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (20,219,930) (19,973,726) (19,991,898)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (155,800) 5,136,898 5,573,225
Cash at the beginning of period 326,405 2,264,536 --
-----------------------------------------------------------------------------------------------------------------------------
Cash at the End of Period $ 170,605 $ 7,401,434 $ 5,573,225
=============================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
MUNICIPAL MARKET DIVIDEND
ADVANTAGE OPPORTUNITY ADVANTAGE
(NMA) (NMO) (NAD)
-----------------------------------------------------------------------------------------------------------------------------
Cash paid for interest (excluding amortization of offering costs, where
applicable) $ 348,379 $ 281,025 $ 617,261
=============================================================================================================================
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $1,428,464 and $795,414 for Municipal Advantage
(NMA) and Market Opportunity (NMO), respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 81
| Statement of
| Cash Flows (continued)
Six Months Ended April 30, 2010 (Unaudited)
DIVIDEND DIVIDEND
ADVANTAGE 2 ADVANTAGE 3
(NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS $ 25,540,140 $ 32,832,344
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 (4,848,754) (26,167,499)
Proceeds from sales and maturities of investments 6,421,550 12,881,558
Proceeds from (Purchases of) short-term investments, net -- 2,325,000
Amortization (Accretion) of premiums and discounts, net (1,568,332) (86,722)
(Increase) Decrease in receivable for dividends and interest 68,328 (140,334)
(Increase) Decrease in receivable for investments sold (46,047) 1,582,050
(Increase) Decrease in other assets (13,623) (22,302)
Increase (Decrease) in payable for investments purchased -- 8,108,001
Increase (Decrease) in payable for Auction Rate Preferred share dividends -- (1,787)
Increase (Decrease) in payable for interest -- --
Increase (Decrease) in accrued management fees 13,616 (17,405)
Increase (Decrease) in accrued other liabilities (9,490) 22,405
Net realized (gain) loss from investments (70,098) (83,470)
Change in net unrealized (appreciation) depreciation of investments (9,753,254) (11,578,761)
Taxes paid on undistributed capital gains (564) --
-----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 15,733,472 19,653,078
-----------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- --
Cash distributions paid to Common shareholders (14,359,511) (21,224,966)
(Increase) Decrease in deferred offering costs 36,068 --
Increase (Decrease) in payable for offering cost -- --
Increase (Decrease) in Auction Rate Preferred shares, at liquidation value -- --
Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value -- --
Increase (Decrease) in Variable Rate Demand Preferred shares, at
liquidation value -- --
-----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (14,323,443) (21,224,966)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 1,410,029 (1,571,888)
Cash at the beginning of period 279,403 2,693,790
-----------------------------------------------------------------------------------------------------------------------------
Cash at the End of Period $ 1,689,432 $ 1,121,902
=============================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
DIVIDEND DIVIDEND
ADVANTAGE 2 ADVANTAGE 3
(NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------------
Cash paid for interest (excluding amortization of offering costs, where $ 390,709 $ 260,956
applicable)
=============================================================================================================================
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $63,234 for Dividend Advantage 2 (NXZ).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
82 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 ("NYSE") while Dividend Advantage 2 (NXZ) and Dividend
Advantage 3 (NZF) are traded on the NYSE Amex. The Funds are registered under
the Investment Company Act of 1940, as amended, as closed-end, management
investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a portfolio of municipal obligations issued by state
and local government authorities or certain U.S. territories.
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 ("U.S. GAAP").
INVESTMENT VALUATION
Exchange-listed securities are generally valued at the last sales price on the
security exchange on which such securities are primarily traded. Securities
traded on a securities exchange for which there are no transactions on a given
day or securities not listed on a securities exchange are valued at the mean of
the closing bid and asked prices. Securities traded on NASDAQ are valued at the
NASDAQ Official Closing Price. 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. 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, 2010, Municipal
Advantage (NMA) and Dividend Advantage 3 (NZF) had outstanding
when-issued/delayed delivery purchase commitments of $2,194,071 and $8,119,360,
respectively. There were no such outstanding purchase commitments in any of the
other Funds.
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date. Dividend income is recorded
on the ex-dividend date or when information is available. Interest income, which
includes the amortization of premiums and accretion of discounts for financial
reporting purposes, is recorded on an accrual basis. Investment income also
includes paydown gains and losses, if any.
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 that will
Nuveen Investments 83
| Notes to
| Financial Statements (Unaudited) (continued)
enable interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders of
the Funds. Net realized capital gains and ordinary income distributions paid by
the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S. GAAP.
AUCTION RATE PREFERRED SHARES
The following Funds have issued and outstanding Auction Rate Preferred Shares
("ARPS"), $25,000 stated value per share, as a means of effecting financial
leverage. Each Fund's ARPS 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, 2010, the number of ARPS outstanding, by
Series and in total, for each Fund is as follows:
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 3
(NPP) (NAD) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 3,507 1,628 --
Series T 3,506 1,628 --
Series W 3,505 -- 3,159
Series TH 2,770 1,547 3,159
Series F 3,508 -- 3,160
------------------------------------------------------------------------------------------------------------------------------------
Total 16,796 4,803 9,478
====================================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the ARPS issued by the Funds than there were offers to
buy. This meant that these auctions "failed to clear," and that many ARPS
shareholders who wanted to sell their shares in these auctions were unable to do
so. ARPS 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 ARPS. As of April 30, 2010, the aggregate
amount of outstanding ARPS 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)
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed, at liquidation value $59,100,000 $358,000,000 $380,000,000 $174,925,000 $222,000,000 $75,050,000
====================================================================================================================================
MUNIFUND TERM PREFERRED SHARES
Dividend Advantage (NAD) has issued and outstanding $144,300,000, of 2.70%,
Series 2015 MuniFund Term Preferred ("MTP") Shares, with a $10 liquidation value
per share. Dividends, which are recognized as interest expense for financial
reporting purposes, will be paid monthly at a fixed annual rate of 2.70%,
subject to adjustment in certain circumstances. Proceeds from the issuance of
MTP Shares, net of offering expenses, were used to redeem a portion of the
Fund's outstanding ARPS.
The Fund is obligated to redeem the MTP Shares on April 1, 2015, unless earlier
redeemed or repurchased by the Fund. MTP Shares are subject to optional and
mandatory redemption in certain circumstances. As of April 1, 2011, the MTP
Shares will be subject to redemption at the option of the Fund, subject to
payment of a premium until March 31, 2012, and at par thereafter. The MTP Shares
also will be subject to redemption, at the option of the Fund, at par in the
event of certain changes in the credit rating of the MTP Shares. The Fund may be
obligated to redeem certain of the MTP Shares if the Fund fails to maintain
certain asset coverage and leverage ratio requirements and such failures are not
cured by the applicable cure date.
84 Nuveen Investments
The redemption price per share is equal to the sum of the liquidation value per
share plus any accumulated but unpaid dividends. The MTP Shares trade on NYSE
under the symbol "NAD Pr C".
During the period from March 16, 2010 (first issuance date of shares) through
April 30, 2010, Dividend Advantage (NAD) had an average balance of $143,582,609
MTP Shares outstanding.
Net amounts earned by Nuveen as underwriter of the Fund's MTP Share offering are
passed directly to the Fund and recognized as a component of "Investment Income"
on the Statement of Operations. For the six months ended April 30, 2010 there
were no amounts earned by Nuveen Investments, Inc. ("Nuveen").
For financial reporting purposes only, the liquidation value of MTP Shares is
recorded as a liability on the Statement of Assets and Liabilities. Unpaid
dividends on the MTP Shares are recognized as a component of "Interest payable"
on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are
recognized as a component of "Interest expense and amortization of offering
costs" on the Statement of Operations.
VARIABLE RATE DEMAND PREFERRED SHARES
Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage 2
(NXZ) have issued and outstanding 2,968, 3,509 and 1,960 Series 1 Variable Rate
Demand Preferred ("VRDP") Shares, $100,000 liquidation value per share,
respectively. Dividend Advantage 2 (NXZ) issued its VRDP Shares in a privately
negotiated offering in August 2008, and Municipal Advantage (NMA) and Market
Opportunity (NMO) issued their respective VRDP Shares in March 2010. Proceeds of
each Fund's offering were used to redeem a portion of each Fund's outstanding
ARPS. The VRDP 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, for Dividend Advantage 2 (NXZ) and March 1, 2040, for Municipal Advantage
(NMA) and Market Opportunity (NMO).
VRDP Shares include a liquidity feature that allows VRDP shareholders to have
their shares purchased by a liquidity provider with whom the Fund has contracted
in the event that purchase orders for VRDP Shares in a remarketing are not
sufficient in number to be matched with the sale orders in that remarketing.
Municipal Advantage (NMA) and Market Opportunity (NMO) are required to redeem
any VRDP Shares that are still owned by the liquidity provider after six months
of continuous, unsuccessful remarketing. As to Dividend Advantage 2 (NXZ), the
terms of whose VRDP Shares do not presently provide the liquidity provider with
the right to cause the Fund to redeem VRDP Shares after six months of
continuous, unsuccessful remarketing, the Board of Directors/Trustees has
approved, in connection with renewing its liquidity provider contract in June
2010, the issuance of replacement VRDP Shares that would provide the liquidity
provider with a right of redemption after six months of continuous unsuccessful
remarketing.
Dividends on the VRDP Shares (which are treated as interest payments for
financial reporting purposes) are set weekly at a rate established by a
remarketing agent; therefore, the market value of the VRDP Shares is expected to
approximate its liquidation value. If remarketings for VRDP Shares are
continuously unsuccessful for six months, the maximum rate is designed to
escalate according to a specified schedule in order to enhance the remarketing
agent's ability to successfully remarket the VRDP Shares.
Subject to certain conditions, VRDP 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
VRDP 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.
Municipal Advantage (NMA) and Market Opportunity (NMO) issued all $296,800,000
and $350,900,000 of its VRDP Shares on March 18, 2010 and March 31, 2010, with
annualized interest rates of 0.37% and 0.44%, respectively. Dividend Advantage 2
(NXZ) had all $196,000,000 of its VRDP Shares outstanding during the six months
ended April 30, 2010, with an annualized interest rate of 0.31%.
For financial reporting purposes only, the liquidation value of VRDP Shares is
recognized as a liability on the Statement of Assets and Liabilities. Unpaid
dividends on VRDP Shares are recognized as a component of "Interest payable" on
the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are
recognized as a component of "Interest expense and amortization of offering
costs" on the Statement of Operations. In addition to this interest expense, the
Funds also pay a per annum liquidity fee to the liquidity provider, 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.
Nuveen Investments 85
| Notes to
| Financial Statements (Unaudited) (continued)
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as a component of "Interest expense and
amortization of offering costs" on the Statement of Operations.
During the six months ended April 30, 2010, 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, 2010, 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 $11,250,000 $ 7,500,000 $11,250,000 $11,250,000 $ --
====================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended October 31, 2009, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $42,838,840 $67,694,983 $48,745,000 $51,605,000 $26,661,650 $75,908,650
Average annual interest rate and fees 0.72% 0.64% 0.62% 0.52% 0.68% 0.69%
====================================================================================================================================
FUTURES CONTRACTS
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in
attempt to manage such risk. Upon entering into a futures contract, a Fund is
required to deposit with the broker an amount of cash or liquid securities equal
to a specified percentage of the contract amount. This is known as the "initial
margin." Cash held by the broker to cover initial margin requirements on open
futures contracts, if any, is recognized as "Deposits with brokers for open
futures contracts" on the Statement of Assets and Liabilities. Subsequent
payments ("variation margin") are made or received by a Fund each day, depending
on the daily fluctuation of the value of the contract. Variation margin is
recognized as a receivable or payable for "Variation margin on futures
contracts" on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. When the contract is closed or
expired, a Fund records a realized gain or loss equal to the difference between
the value of the contract on the closing date and value of the contract when
originally entered into and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices. The Funds did not invest in futures
contracts during the six months ended April 30, 2010.
86 Nuveen Investments
MARKET AND COUNTERPARTY CREDIT RISK
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions, when applicable. The extent of each Fund's exposure to
counterparty credit risk in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities. Futures
contracts, when applicable, expose a Fund to minimal counterparty credit risk as
they are exchange traded and the exchange's clearinghouse, which is counterparty
to all exchange traded futures, guarantees the futures contracts against
default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties that Nuveen Asset Management (the "Adviser"), a wholly-owned
subsidiary of 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. 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 Municipal Advantage (NMA), Market Opportunity (NMO) and
Dividend Advantage 2 (NXZ) in connection with their offerings of VRDP Shares
($2,134,000), ($4,214,000) and ($2,270,000), respectively, were recorded as
deferred charges which will be amortized over the 30-year life of the shares.
Cost incurred by Dividend Advantage (NAD) in connection with its offering of MTP
Shares ($2,559,500) were recorded as a deferred charge which will be amortized
over the 5-year life of the shares. Each Fund's amortized deferred charges 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.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. GAAP 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.
Nuveen Investments 87
| Notes to
| Financial Statements (Unaudited) (continued)
2. 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, 2010:
PERFORMANCE PLUS (NPP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 1,323,806,376 $ -- $ 1,323,806,376
=====================================================================================================
MUNICIPAL ADVANTAGE (NMA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 949,281,447 $ 974,100 $ 950,255,547
=====================================================================================================
MARKET OPPORTUNITY (NMO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 1,012,295,592 $ -- $ 1,012,295,592
=====================================================================================================
DIVIDEND ADVANTAGE (NAD) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 856,844,817 $ 974,100 $ 857,818,917
Investment Companies 545,639 -- -- 545,639
-----------------------------------------------------------------------------------------------------
Total $ 545,639 $ 856,844,817 $ 974,100 $ 858,364,556
=====================================================================================================
DIVIDEND ADVANTAGE 2 (NXZ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 646,267,891 $ -- $ 646,267,891
=====================================================================================================
DIVIDEND ADVANTAGE 3 (NZF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 886,420,820 $ 2,337,840 $ 888,758,660
Investment Companies 3,428,973 -- -- 3,428,973
-----------------------------------------------------------------------------------------------------
Total $3,428,973 $ 886,420,820 $ 2,337,840 $ 892,187,633
=====================================================================================================
The following is a reconciliation of the Funds' Level 3 investments held at the
beginning and end of the measurement period:
MUNICIPAL DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE ADVANTAGE 3
(NMA) (NAD) (NZF)
LEVEL 3 LEVEL 3 LEVEL 3
MUNICIPAL BONDS MUNICIPAL BONDS MUNICIPAL BONDS
---------------------------------------------------------------------------------------------------------
Balance at the beginning of period $ -- $ -- $ --
Gains (losses):
Net realized gains (losses) -- -- --
Net change in unrealized appreciation
(depreciation) -- -- --
Net purchases at cost (sales at proceeds) -- -- --
Net discounts (premiums) -- -- --
Net transfers in to (out of) at end of period
fair value 974,100 974,100 2,337,840
---------------------------------------------------------------------------------------------------------
Balance at the end of period $ 974,100 $ 974,100 $ 2,337,840
=========================================================================================================
"Change in net appreciation (depreciation) of investments" presented on the
Statement of Operations includes net unrealized appreciation (depreciation)
related to securities classified as Level 3 at period end as follows:
MUNICIPAL DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE ADVANTAGE 3
(NMA) (NAD) (NZF)
---------------------------------------------------------------------------------------------------------
Level 3 net appreciation (depreciation) $ 404,384 $ 404,384 $ 970,292
=========================================================================================================
88 Nuveen Investments
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Funds record derivative instruments at fair value, with changes in fair
value recognized on the Statement of Operations, when applicable. Even though
the Funds' investments in derivatives may represent economic hedges, they are
not considered to be hedge transactions for financial reporting purposes. The
Funds did not invest in derivative instruments during the six months ended April
30, 2010.
4. FUND SHARES
COMMON SHARES
Since the inception of the Funds' repurchase program, the Funds have not
repurchased any of their outstanding Common shares.
Transactions in Common shares were as follows:
MUNICIPAL MARKET
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO)
---------------------- ----------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/10 10/31/09 4/30/10 10/31/09 4/30/10 10/31/09
-------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders due to
reinvestment of distributions -- -- 101,028 20,548 57,707 --
===============================================================================================================================
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
4/30/10 10/31/09 4/30/10 10/31/09 4/30/10 10/31/09
-------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders due to
reinvestment of distributions -- -- 4,328 10,026 -- --
===============================================================================================================================
PREFERRED SHARES
Transactions in ARPS were as follows:
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA)
------------------------------------------------ --------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/10 10/31/09 4/30/10 10/31/09
-----------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed:
Series M -- $ -- 165 $ 4,125,000 2,457 $ 61,425,000 406 $ 10,150,000
Series T -- -- 165 4,125,000 2,457 61,425,000 406 10,150,000
Series W -- -- 166 4,150,000 2,456 61,400,000 407 10,175,000
Series TH -- -- 130 3,250,000 1,901 47,525,000 313 7,825,000
Series F -- -- 164 4,100,000 2,457 61,425,000 406 10,150,000
-------------------------------------------------------------------------------------------------------------------------------
Total -- $ -- 790 $19,750,000 11,728 $293,200,000 1,938 $ 48,450,000
===============================================================================================================================
Nuveen Investments 89
| Notes to
| Financial Statements (Unaudited) (continued)
MARKET OPPORTUNITY (NMO) DIVIDEND ADVANTAGE (NAD)
------------------------------------------------ --------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/10 10/31/09 4/30/10 10/31/09
-----------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed:
Series M 3,649 $ 91,225,000 158 $ 3,950,000 1,922 $ 48,050,000 68 $ 1,700,000
Series T 3,648 91,200,000 159 3,975,000 1,921 48,025,000 68 1,700,000
Series W 2,920 73,000,000 126 3,150,000 -- -- -- --
Series TH -- -- -- -- 1,826 45,650,000 64 1,600,000
Series F 3,650 91,250,000 157 3,925,000 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total 13,867 $346,675,000 600 $15,000,000 5,669 $141,725,000 200 $ 5,000,000
===============================================================================================================================
DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------ --------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/10 10/31/09 4/30/10 10/31/09
-----------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed:
Series M N/A N/A N/A N/A -- $ -- -- $ --
Series T N/A N/A N/A N/A -- -- -- --
Series W N/A N/A N/A N/A -- -- 451 11,275,000
Series TH N/A N/A N/A N/A -- -- 451 11,275,000
Series F N/A N/A N/A N/A -- -- 451 11,275,000
-------------------------------------------------------------------------------------------------------------------------------
Total N/A N/A N/A N/A -- $ -- 1,353 $ 33,825,000
===============================================================================================================================
N/A - Dividend Advantage 2 (NXZ) redeemed all $222,000,000 of its outstanding
ARPS during the fiscal year ended October 31, 2008.
Transactions in MTP Shares were as follows:
DIVIDEND ADVANTAGE (NAD)
-----------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/10 10/31/09
-----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
Series 2015 14,430,000 $144,300,000 -- $ --
===============================================================================================================================
Transactions in VRDP Shares were as follows:
MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO)
------------------------------------------------ --------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/10 10/31/09 4/30/10 10/31/09
-----------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------------
VRDP Shares issued:
Series 1 2,968 $296,800,000 -- $ -- 3,509 $350,900,000 -- $ --
===============================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended April 30, 2010, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------
Purchases $ 78,116,635 $ 70,845,166 $115,354,228 $ 37,322,616 $ 4,848,754 $ 26,167,499
Sales and maturities 92,533,124 87,273,960 119,855,350 33,284,260 6,421,550 12,881,558
==============================================================================================================================
90 Nuveen Investments
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At April 30, 2010, the cost and unrealized appreciation (depreciation) of
investments as determined on a federal income tax basis, were 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 $1,241,244,476 $874,200,679 $963,944,405 $799,253,376 $604,047,227 $814,847,114
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 76,353,180 $ 43,959,872 $ 47,508,576 $ 44,577,015 $ 37,767,611 $ 32,271,700
Depreciation (36,415,716) (35,597,171) (47,902,389) (37,069,011) (22,214,544) (30,786,502)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 39,937,464 $ 8,362,701 $ (393,813) $ 7,508,004 $ 15,553,067 $ 1,485,198
====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2009, 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 * $ 14,778,549 $ 10,307,023 $ 11,839,667 $ 8,600,550 $ 4,767,927 $ 9,202,532
Undistributed net ordinary income ** 22,973 63,544 665 -- 431,904 830,858
Undistributed net long-term capital
gains 863,865 3,011,399 -- -- -- 1,900,388
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2009, paid on November 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2009, 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 $ 50,061,453 $ 38,441,112 $ 39,112,569 $ 34,327,038 $ 27,368,520 $ 35,861,517
Distributions from net ordinary
income ** 60,857 126,563 -- -- -- 312,544
Distributions from net long-term
capital gains -- -- -- -- -- --
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2009, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MARKET DIVIDEND DIVIDEND
OPPORTUNITY ADVANTAGE ADVANTAGE 2
(NMO) (NAD) (NXZ)
------------------------------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2011 $ 4,216,771 $ 4,594,300 $ --
October 31, 2012 973,824 -- --
October 31, 2013 -- 104,762 --
October 31, 2014 3,141,529 -- 1,425,745
October 31, 2015 1,902,879 -- 961,027
October 31, 2016 1,398,166 -- --
October 31, 2017 -- 424,278 --
------------------------------------------------------------------------------------------------------------------------------------
Total $ 11,633,169 $ 5,123,340 $ 2,386,772
====================================================================================================================================
Nuveen Investments 91
| Notes to
| Financial Statements (Unaudited) (continued)
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components -- a fund-level fee,
based only on the amount of assets within each individual Fund, and a
complex-level fee, based on the aggregate amount of all fund assets managed by
the Adviser. This pricing structure enables each Fund's shareholders to benefit
from growth in the assets within their respective Fund as well as from growth in
the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated
according to the following schedules:
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
AVERAGE DAILY NET ASSETS* 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* 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 for each Fund, payable monthly, is calculated
according to the following schedule:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL* 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
================================================================================
* The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed assets of all Nuveen
funds, with such daily managed 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 fees, daily
managed assets include assets managed by the Adviser that are attributable
to financial leverage. For these purposes, financial leverage includes the
funds' use of preferred stock and borrowings and investments in the
residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by a 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
assets in certain circumstances. As of April 30, 2010, the complex-level
fee rate was .1852%.
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.
92 Nuveen Investments
As of July 31, 2009, the Adviser is no longer reimbursing Dividend Advantage
(NAD) for any fees or expenses.
For the first ten years of Dividend Advantage 2's (NXZ) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets,
for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any
portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Dividend Advantage 3's (NZF) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets,
for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any
portion of its fees and expenses beyond September 30, 2011.
8. NEW ACCOUNTING PRONOUNCEMENTS
ACCOUNTING FOR TRANSFERS OF FINANCIAL ASSETS
During June 2009, the Financial Accounting Standards Board ("FASB") issued
changes to the authoritative guidance under U.S. GAAP on accounting for
transfers of financial assets. The objective of this guidance is to improve the
relevance, representational faithfulness, and comparability of the information
that a reporting entity provides in its financial statements about a transfer of
financial assets; the effects of a transfer on its financial position, financial
performance, and cash flows; and transferor's continuing involvement, if any, in
transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
FAIR VALUE MEASUREMENTS
On January 21, 2010, FASB issued changes to the authoritative guidance under
U.S. GAAP for fair value measurements. The objective of this guidance is to
provide guidance on how investment assets and liabilities are to be valued and
disclosed. Specifically, the amendment requires reporting entities to disclose
i) the input and valuation techniques used to measure fair value for both
recurring and nonrecurring fair value measurements, for both Level 2 and Level 3
positions, ii) transfers between all levels (including Level 1 and Level 2) on a
gross basis (i.e., transfers out must be disclosed separately from transfers in)
as well as the reason(s) for the transfer and iii) purchases, sales, issuances
and settlements in the Level 3 rollforward must be shown on a gross basis rather
than as one net number. The effective date of the amendment is for interim and
annual periods beginning after December 15, 2009, however, the requirement to
provide the Level 3 activity for purchases, sales, issuances and settlements on
a gross basis will be effective for interim and annual periods beginning after
December 15, 2010. At this time, the management is evaluating the implications
of this guidance and the impact it will have to the financial statement amounts
and footnote disclosures, if any.
Nuveen Investments 93
| Financial
| Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------------------------- --------------------------
DISTRI- DISTRI-
BUTIONS BUTIONS
FROM NET FROM DISCOUNT
INVESTMENT CAPITAL FROM
INCOME TO GAINS TO NET COMMON ENDING
BEGINNING AUCTION AUCTION INVESTMENT CAPITAL SHARES COMMON
COMMON NET RATE RATE INCOME TO GAINS TO REPUR- SHARE
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON CHASED NET ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- AND ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL RETIRED VALUE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $14.52 $ .52 $ .35 $(.01) $ --** $ .86 $ (.45) $(.01) $(.46) $ -- $14.92 $14.28
2009 12.69 1.03 1.65 (.06) -- 2.62 (.79) -- (.79) -- 14.52 13.48
2008 15.22 1.02 (2.56) (.29) -- (1.83) (.70) -- (.70) -- 12.69 11.50
2007 15.78 .99 (.47) (.27) (.01) .24 (.75) (.05) (.80) -- 15.22 13.59
2006 15.51 1.00 .38 (.25) -- 1.13 (.84) (.02) (.86) -- 15.78 15.09
2005 15.87 1.02 (.26) (.16) -- .60 (.94) (.02) (.96) -- 15.51 14.43
MUNICIPAL ADVANTAGE (NMA)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 14.08 .53 .35 (.01) --** .87 (.48) (.07) (.55) -- 14.40 14.32
2009 12.12 1.10 1.76 (.06) -- 2.80 (.84) -- (.84) -- 14.08 13.41
2008 15.20 1.08 (3.06) (.30) (.01) (2.29) (.77) (.02) (.79) -- 12.12 11.41
2007 15.88 1.07 (.63) (.29) -- .15 (.83) -- (.83) -- 15.20 13.95
2006 15.70 1.08 .27 (.26) -- 1.09 (.90) (.01) (.91) -- 15.88 15.85
2005 16.02 1.09 (.24) (.16) -- .69 (1.00) (.01) (1.01) -- 15.70 15.19
===================================================================================================================================
AUCTION RATE VARIABLE RATE DEMAND
PREFERRED SHARES 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:
2010(d) $419,900 $25,000 $78,218 $ -- $ -- $ --
2009 419,900 25,000 76,790 -- -- --
2008 439,650 25,000 68,244 -- -- --
2007 479,000 25,000 72,603 -- -- --
2006 479,000 25,000 74,333 -- -- --
2005 479,000 25,000 73,515 -- -- --
MUNICIPAL ADVANTAGE (NMA)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) -- -- -- 296,800 100,000 310,268
2009 293,200 25,000 76,911 -- -- --
2008 341,650 25,000 63,314 -- -- --
2007 358,000 25,000 70,866 -- -- --
2006 358,000 25,000 72,743 -- -- --
2005 358,000 25,000 72,184 -- -- --
===================================================================================================
94 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++(B)
------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(A) VALUE(A) SHARES (000) INTEREST(C) INTEREST INCOME RATE
-----------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 9.49% 6.04% $893,854 1.15%* 1.12%* 7.11%* 6%
2009 24.78 21.20 869,873 1.23 1.18 7.59 6
2008 (10.71) (12.49) 760,496 1.25 1.17 6.96 9
2007 (4.97) 1.53 912,066 1.16 1.14 6.38 6
2006 10.78 7.50 945,222 1.15 1.15 6.44 9
2005 3.02 3.83 929,544 1.15 1.15 6.45 6
MUNICIPAL ADVANTAGE (NMA)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 10.99 6.29 624,075 1.41* 1.30* 7.62* 7
2009 25.70 23.89 608,813 1.31 1.22 8.51 9
2008 (13.16) (15.65) 523,602 1.38 1.21 7.50 13
2007 (7.08) 1.06 656,806 1.40 1.17 6.87 10
2006 10.68 7.16 683,675 1.18 1.18 6.92 11
2005 3.29 4.42 675,678 1.17 1.17 6.81 8
===========================================================================================================
* Annualized.
** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
Shares and/or Variable Rate Demand Preferred Shares, where applicable.
(a) 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.
(b) Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, where
applicable.
(c) The expense ratios reflect, among other things, payments to Variable Rate
Demand Preferred shareholders and/or the interest expense deemed to have
been paid by the Fund on the floating rate certificates issued by the
special purpose trusts for the self-deposited inverse floaters held by the
Fund, where applicable, as described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(d) For the six months ended April 30, 2010.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 95
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------------------- --------------------------
DISTRI- DISTRI-
BUTIONS BUTIONS
FROM NET FROM DISCOUNT
INVESTMENT CAPITAL FROM
INCOME TO GAINS TO NET COMMON ENDING
BEGINNING AUCTION AUCTION INVESTMENT CAPITAL SHARES COMMON
COMMON NET RATE RATE INCOME TO GAINS TO REPUR- SHARE
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON CHASED NET ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- AND ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL RETIRED VALUE VALUE
===================================================================================================================================
MARKET OPPORTUNITY (NMO)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $13.59 $ .53 $ .32 $(.01) $ -- $ .84 $ (.47) $ -- $ (.47) $ -- $13.96 $13.96
2009 12.23 1.10 1.13 (.06) -- 2.17 (.81) -- (.81) -- 13.59 13.32
2008 14.83 1.03 (2.59) (.31) -- (1.87) (.73) -- (.73) -- 12.23 11.52
2007 15.41 1.04 (.56) (.30) -- .18 (.76) -- (.76) -- 14.83 13.53
2006 15.14 1.02 .34 (.26) -- 1.10 (.83) -- (.83) -- 15.41 15.00
2005 15.48 1.03 (.29) (.16) -- .58 (.92) -- (.92) -- 15.14 14.19
DIVIDEND ADVANTAGE (NAD)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 13.89 .52 .35 (.01) -- .86 (.45) -- (.45) -- 14.30 14.09
2009 11.77 1.07 1.93 (.05) -- 2.95 (.83) -- (.83) -- 13.89 12.89
2008 14.90 1.05 (3.14) (.27) -- (2.36) (.77) -- (.77) -- 11.77 10.72
2007 15.54 1.04 (.60) (.27) -- .17 (.81) -- (.81) -- 14.90 13.63
2006 15.28 1.04 .32 (.24) -- 1.12 (.86) -- (.86) -- 15.54 15.30
2005 15.62 1.06 (.25) (.15) -- .66 (1.00) -- (1.00) -- 15.28 14.58
===================================================================================================================================
AUCTION
RATE
PREFERRED
SHARES AND
MUNIFUND
TERM
PREFERRED
SHARES
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES AT END VARIABLE RATE DEMAND PREFERRED
AT END OF PERIOD AT END OF PERIOD OF PERIOD SHARES AT END OF PERIOD
--------------------------------- ------------------------------------------- ----------- ----------------------------------
ASSET
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION AVERAGE COVERAGE AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET MARKET ASSET PER $1 AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE COVERAGE LIQUIDATION OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PREFERENCE (000) PER SHARE PER SHARE
====================================================================================================================================
MARKET OPPORTUNITY (NMO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $ -- $ -- $ -- $ -- $-- $ -- $ -- $ -- $350,900 $100,000 $281,464
2009 346,675 25,000 69,661 -- -- -- -- -- -- -- --
2008 361,675 25,000 63,525 -- -- -- -- -- -- -- --
2007 380,000 25,000 69,446 -- -- -- -- -- -- -- --
2006 380,000 25,000 71,155 -- -- -- -- -- -- -- --
2005 380,000 25,000 70,374 -- -- -- -- -- -- -- --
DIVIDEND ADVANTAGE (NAD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 120,075 25,000 78,128 144,300 10 10.00** 31.25 3.13 -- -- --
2009 261,800 25,000 77,095 -- -- -- -- -- -- -- --
2008 266,800 25,000 68,343 -- -- -- -- -- -- -- --
2007 295,000 25,000 74,618 -- -- -- -- -- -- -- --
2006 295,000 25,000 76,722 -- -- -- -- -- -- -- --
2005 295,000 25,000 75,838 -- -- -- -- -- -- -- --
====================================================================================================================================
96 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT++ AFTER REIMBURSEMENT++(b)
------------------- ----------------------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME INTEREST(c) INTEREST INCOME RATE
====================================================================================================================================
MARKET OPPORTUNITY (NMO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 8.49% 6.31% $636,756 1.37%* 1.28%* 7.80%* N/A% N/A% N/A% 12%
2009 23.67 18.30 619,319 1.32 1.25 8.58 N/A N/A N/A 10
2008 (9.87) (13.07) 557,346 1.36 1.23 7.33 N/A N/A N/A 8
2007 (5.00) 1.20 675,577 1.38 1.19 6.87 N/A N/A N/A 5
2006 11.92 7.49 701,559 1.19 1.19 6.73 N/A N/A N/A 14
2005 4.70 3.78 689,682 1.19 1.19 6.66 N/A N/A N/A 7
DIVIDEND ADVANTAGE (NAD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 12.97 6.31 561,828 1.35* 1.10* 7.52* 1.35* 1.10* 7.52* 4
2009 28.86 25.78 545,534 1.26 1.17 8.38 1.21 1.12 8.43 9
2008 (16.46) (16.42) 462,554 1.36 1.15 7.33 1.22 1.02 7.46 11
2007 (5.96) 1.10 585,496 1.24 1.13 6.60 1.03 .92 6.81 11
2006 11.19 7.59 610,316 1.12 1.12 6.54 .85 .85 6.81 8
2005 1.77 4.27 599,887 1.17 1.17 6.48 .81 .81 6.83 11
====================================================================================================================================
* Annualized.
** For the period March 16, 2010 (first issuance date of shares) through
April 30, 2010.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
Shares, MuniFund Term Preferred Shares and/or Variable Rate Demand
Preferred Shares, where applicable.
(a) 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.
(b) After expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable. As
of July 31, 2009, the Adviser is no longer reimbursing Dividend Advantage
(NAD) for any fees and expenses.
(c) The expense ratios reflect, among other things, payments to MuniFund Term
Preferred shareholders, Variable Rate Demand Preferred shareholders and/or
the interest expense deemed to have been paid by the Fund on the floating
rate certificates issued by the special purpose trusts for the
self-deposited inverse floaters held by the Fund, where applicable, as
described in Footnote 1 - MuniFund Term Preferred Shares, Variable Rate
Demand Preferred Shares and Inverse Floating Rate Securities,
respectively.
(d) For the six months ended April 30, 2010.
N/A Fund does not have a contractual reimbursement agreement with the Adviser.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 97
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------------------------------- --------------------------
DISTR- DISTR-
IBUTION IBUTIONS
FROM NET FROM DISCOUNT
INVESTMENT CAPITAL FROM
INCOME TO GAINS TO NET CAPITAL COMMON ENDING
BEGINNING AUCTION AUCTION INVESTMENT GAINS SHARES COMMON
COMMON NET RATE RATE INCOME TO TO REPUR- SHARE
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON CHASED NET ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- AND ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL RETIRED VALUE VALUE
------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $14.45 $ .52 $ .34 $ -- $ -- $ .86 $ (.48) $ (.01) $(.49) $ -- $14.82 $14.55
2009 12.71 1.04 1.59 -- -- 2.63 (.89) -- (.89) -- 14.45 14.14
2008 15.55 1.05 (2.81) (.20) -- (1.96) (.88) -- (.88) -- 12.71 12.35
2007 16.02 1.13 (.43) (.27) -- .43 (.90) -- (.90) -- 15.55 15.48
2006 15.80 1.12 .32 (.24) -- 1.20 (.98) -- (.98) -- 16.02 16.50
2005 15.63 1.13 .22 (.15) -- 1.20 (1.03) -- (1.03) -- 15.80 15.64
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 14.19 .54 .28 (.01) --** .81 (.46) (.06) (.52) -- 14.48 14.10
2009 12.10 1.08 1.91 (.05) -- 2.94 (.85) -- (.85) -- 14.19 13.38
2008 15.03 1.06 (2.95) (.27) -- (2.16) (.77) -- (.77) -- 12.10 10.72
2007 15.54 1.07 (.44) (.27) (.01) .35 (.84) (.02) (.86) -- 15.03 13.85
2006 15.32 1.07 .29 (.24) -- 1.12 (.90) -- (.90) -- 15.54 15.88
2005 15.36 1.06 .01 (.15) -- .92 (.96) -- (.96) -- 15.32 14.41
====================================================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
----------------------------------- -------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
-----------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $ -- $ -- $ -- $196,000 $100,000 $322,641
2009 -- -- -- 196,000 100,000 316,966
2008 -- -- -- 196,000 100,000 290,785
2007 222,000 25,000 76,463 -- -- --
2006 222,000 25,000 77,949 -- -- --
2005 222,000 25,000 77,124 -- -- --
DIVIDEND ADVANTAGE 3 (NZF)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 236,950 25,000 86,675 -- -- --
2009 236,950 25,000 85,465 -- -- --
2008 270,775 25,000 70,108 -- -- --
2007 312,000 25,000 73,630 -- -- --
2006 312,000 25,000 75,227 -- -- --
2005 312,000 25,000 74,468 -- -- --
===============================================================================================
98 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT++ AFTER REIMBURSEMENT++(b)
------------------- ----------------------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME INTEREST(c) INTEREST INCOME RATE
------------------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 6.46% 6.06% $436,377 1.58%* 1.38%* 7.25%* 1.45%* 1.25%* 7.38%* 1%
2009 22.63 21.41 425,253 1.91 1.47 7.59 1.73 1.29 7.77 2
2008 (15.21) (13.23) 373,940 1.71 1.22 6.82 1.45 .96 7.08 10
2007 (.78) 2.76 456,992 1.25 1.11 6.83 .93 .79 7.16 5
2006 11.95 7.86 470,189 1.11 1.11 6.70 .72 .72 7.09 5
2005 8.58 7.83 462,862 1.12 1.12 6.66 .68 .68 7.11 2
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 9.47 5.87 584,560 1.19* 1.10* 7.41* 1.03* .94* 7.57* 1
2009 33.89 25.08 573,088 1.26 1.15 7.98 1.04 .92 8.20 2
2008 (17.85) (14.99) 488,561 1.34 1.15 7.08 1.04 .85 7.37 7
2007 (7.72) 2.31 606,908 1.32 1.13 6.65 .94 .76 7.02 14
2006 16.90 7.57 626,836 1.13 1.13 6.51 .68 .68 6.96 9
2005 6.11 6.09 617,358 1.13 1.13 6.39 .69 .69 6.83 3
====================================================================================================================================
* Annualized.
** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
Shares and/or Variable Rate Demand Preferred Shares, where applicable.
(a) 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.
(b) After expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
(c) The expense ratios reflect, among other things, payments to Variable Rate
Demand Preferred shareholders and/or the interest expense deemed to have
been paid by the Fund on the floating rate certificates issued by the
special purpose trusts for the self-deposited inverse floaters held by the
Fund, where applicable, as described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(d) For the six months ended April 30, 2010.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 99
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
100 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 101
Glossary of Terms
Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate
(sometimes referred to as an "inverse floater") to an investor (such as a
Fund) interested in gaining investment exposure to a long-term municipal
bond. The income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate certificates'
holders, and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying bond's value. Hence, an
inverse floater essentially represents an investment in the underlying
bond on a leveraged basis.
102 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 share is calculated by subtracting
the liabilities of the Fund from its total assets and then dividing the
remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 103
Notes
104 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
("NYSE") the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common and/or
auction rate 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 auction rate preferred
stock as shown in the accompanying table.
AUCTION RATE
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NPP -- --
NMA -- 11,728
NMO -- 13,867
NAD -- 5,669
NXZ -- --
NZF -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 105
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions through continued
adherence to proven, longterm investing principles. Today, we offer a range of
high quality equity and fixed-income solutions designed to be integral
components of a well-diversified core portfolio.
FOCUSED ON MEETING INVESTOR 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. We market our growing
range of specialized investment solutions under the high-quality brands of
HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital.
In total, Nuveen Investments managed approximately $150 billion of assets on
March 31, 2010.
FIND OUT HOW WE CAN HELP YOU.
To learn more about how the products and services of Nuveen Investments may be
able to help you meet your financial goals, talk to your financial advisor, or
call us at (800) 257-8787. Please read the information provided carefully before
you invest.
Investors should consider the investment objective and policies, risk
considerations, charges and expenses of any investment carefully. Where
applicable, be sure to obtain a prospectus, which contains this and other
relevant information. To obtain a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-B-0410D
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.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
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, 2010
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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
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 8, 2010
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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, 2010
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