UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10345
---------------------
Nuveen Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
-------------------------------
Semiannual Report April 30,2005
-------------------------------
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN PERFORMANCE
PLUS MUNICIPAL
FUND, INC.
NPP
NUVEEN MUNICIPAL [GRAPHIC OMITTED]
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
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
[LOGO]
NUVEEN
Investments
[PHOTO OMITTED]
NOW YOU CAN RECEIVE YOUR
NUVEEN FUND REPORTS FASTER.
--------------------------------------------------------------------------------
NO MORE WAITING.
SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL.
It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready -- no
more waiting for delivery by regular mail. Just click on the link within the
e-mail to see the report, and save it on your computer if you wish.
--------------------------------------------------------------------------------
DELIVERY DIRECT TO
YOUR E-MAIL INBOX
IT'S FAST, EASY & FREE:
www.investordelivery.com
if you get your Nuveen Fund dividends and statements from your financial advisor
or brokerage account.
OR
www.nuveen.com/accountaccess
if you get your Nuveen Fund dividends and statements directly from Nuveen.
(Be sure to have the address sheet that accompanied this report handy. You'll
need it to complete the enrollment process.)
[LOGO]
NUVEEN
Investments
[PHOTO OMITTED]
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
Letter to Shareholders
Once again, I am pleased to report that over the six-month period covered
by this semiannual report your Fund continued to provide you with monthly
tax-free income and an attractive total return. For more details about the
management strategy and performance of your Fund, please see the Portfolio
Manager's Comments and Performance Overview sections of this report.
As I noted in my last letter to you, our conversations with financial
advisers and investors suggest that many of you may be wondering whether
longer-term interest rates will soon begin to rise substantially,
mirroring the rise that has taken place over the past year in shorter-term
rates. If longer-term rates do begin to rise significantly, some of you
also may be wondering if that makes this a good time to adjust your
holdings of fixed-income investments. We can't answer these questions for
you - no one knows what the future will bring.
"In fact, a well-diversified portfolio may actually help to reduce your overall
investment risk."
From our experience, we do know that a well-balanced portfolio, structured
and carefully monitored with the help of a trusted investment
professional, can be an important component in helping you achieve your
long-term financial goals. In fact, a well-diversified portfolio may
actually help to reduce your overall investment risk. That is one reason
why we believe that a municipal bond investment like your Nuveen Fund can
be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
As in past reports, I urge you to consider receiving future Fund reports
and other Fund information by e-mail and the Internet. Not only will you
be able to receive the information faster, but this also may help lower
your Fund's expenses. Sign up is quick and easy - see the inside front
cover of this report for instructions.
Some of you may have heard that in April, 2005, The St. Paul Travelers
Companies, Inc., which owned 79% of Nuveen Investments, Inc. (the parent
of your Fund's investment adviser) completed a public offering of a
substantial portion of its equity stake in Nuveen. At the same time, St.
Paul Travelers also entered into agreements to sell the balance of its
shares in Nuveen to us or to others at a future date.
These transactions will have no impact on the investment objectives or
management of your Fund. However, taken as a whole they are considered to
be an "assignment" of your Fund's investment management agreement. This
means that you and your fellow Fund shareholders soon will be asked to
formally approve the continuation of your Fund's management contract with
Nuveen. We will be sending you more information about this process in the
coming weeks.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can
help you to secure your financial objectives. We are grateful that you
have chosen us as a partner as you pursue your financial goals, and we
look forward to continuing to earn your trust in the months and years
ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2005
Nuveen Investments Municipal Closed-End Exchange-Traded Funds
NPP, NMA, NMO, NAD, NXZ, NZF
Portfolio Manager's
Comments
Portfolio manager Tom Spalding reviews key investment strategies and the
semiannual performance of these six Funds. With 30 years of investment
experience at Nuveen, Tom has managed NXZ since its inception in 2001 and NPP,
NMA, NMO, NAD and NZF since 2003.
What key strategies were used to manage these Funds during the six months ended
April 30, 2005?
Between November 2004 and April 2005, the Federal Reserve introduced four
quarter-point increases in the fed funds rate, raising this short-term rate
benchmark from 1.75% to 2.75%. (On May 3, 2005, following the end of this
reporting period, the Fed announced another 0.25% hike, bringing the fed funds
rate to 3.00%.) Given these short-term rate increases, many market participants
expected to see steadily higher interest rates across most of the municipal
market yield curve as we moved through the reporting period. This did not occur,
as longer-term yields (as measured by the widely-followed Bond Buyer 25 Revenue
Municipal Bond Index) declined by 14 basis points during the six-month period.
As a result, the municipal yield curve flattened.
In this environment, our focus for all these Funds remained on a strategy we
have employed for the past few years - finding and holding bonds that, in our
judgment, would add immediate value to the Funds' portfolios and that could also
perform well under a variety of future market scenarios.
As a result, our purchase activity during this period generally concentrated on
bonds in the long-intermediate part of the yield curve, that is, bonds that
mature in about 20 years. In our opinion, this part of the municipal market
yield curve often offered more attractive opportunities and better values than
bonds with longer or shorter maturities. The specific securities purchased for
each Fund varied according to the average maturity of the Fund's current
portfolio and its overall sensitivity to interest rate fluctuations.
As discussed in our last shareholder report, in late 2004 we began using forward
interest rate swaps, a type of derivative financial instrument, in an attempt to
reduce some of the interest rate risk in NXZ. It is important to note that we
did not use the hedge in an attempt to profit from correctly predicting the
timing and direction of interest rate movements. Instead, our sole objective was
to reduce NXZ's duration (and therefore its price sensitivity to interest rate
changes) without having a negative impact on its income stream or common share
dividends over the short term. The gain or loss from the hedge is reflected as
an addition or subtraction to the Fund's net asset value (NAV) as the
4
market value of the hedge fluctuates. The hedge, was effective in helping to
reduce the NAV volatility of NXZ over the course of this reporting period.
However, it had a negative impact on the Fund's total return over the six-month
period because declining long-term interest rates caused the value of the hedge
to decline as the value of the Fund's portfolio rose.
How did the Funds perform?
Individual results for these Funds, as well as for a comparative index and
average, are presented in the accompanying table.
Total Returns on Net Asset Value*
For periods ended 4/30/05
6-Month 1-Year 5-Year 10-Year
--------------------------------------------------------------------------------
NPP 2.88% 10.48% 9.29% 7.09%
--------------------------------------------------------------------------------
NMA 3.14% 10.10% 9.71% 7.37%
--------------------------------------------------------------------------------
NMO 2.75% 10.22% 8.51% 6.70%
--------------------------------------------------------------------------------
NAD 2.65% 10.69% 10.68% NA
--------------------------------------------------------------------------------
NXZ 5.56% 13.25% NA NA
--------------------------------------------------------------------------------
NZF 4.39% 12.89% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index(1) 1.93% 6.82% 7.04% 6.48%
--------------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average(2) 3.83% 10.67% 8.98% 7.17%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and
ten years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended April 30, 2005, the cumulative returns on NAV for all
six of the Funds covered in this report outperformed the return on the Lehman
Brothers Municipal Bond Index. NXZ and NZF also outperformed the average return
for their Lipper peer group, while NPP, NMA, NMO and NAD trailed this measure.
One of the primary factors benefiting the six-month performance of these Funds
relative to that of the unleveraged Lehman Brothers index was the Funds' use of
financial leverage. While leveraging can add volatility to the Funds' NAVs and
share prices, especially during periods of rising interest rates, this strategy
can also provide opportunities for additional income and total returns for
common shareholders when short-term interest rates remain relatively low and
long-term rates fall or remain fairly constant, as they did during this
reporting period.
(1) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
(2) The Lipper General Leveraged Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 6 months, 67 funds; 1 year, 67
funds; 5 years, 51 funds; and 10 years, 46 funds. Fund and Lipper returns
assume reinvestment of dividends.
5
As noted earlier, the municipal market yield curve flattened over the course of
the reporting period. As a result, the prices of bonds with longer maturities
generally tended to perform better than those of securities with shorter
maturities. This contributed to the relatively strong performance of NXZ and
NZF, which had more exposure to the longer end of the yield curve than the other
four Funds. Each Fund's specific holdings of longer and shorter maturity bonds
accounted for much of the performance differentials between them over these
six-months.
The flattening of the yield curve during this period also created an environment
in which many issuers found refunding existing issues to be economically
attractive. This led to an increase in escrowed and pre-refunded holdings in
most of the Funds, especially NPP, NMA, NXZ and NZF. The performance of the
Funds was boosted by these advance refundings, which resulted in price
appreciation as well as enhanced credit quality. At the same time, we were
trimming the Funds' holdings of some older pre-refunded bonds, which tended to
underperform the general municipal market during this period due primarily to
the shorter effective maturities of these bonds.
All of the Funds also benefited from their allocations of lower quality bonds
during this period, with bonds rated BBB generally outperforming other credit
quality sectors as the demand for these bonds increased. Among the lower-rated
holdings making positive contributions to the Funds' cumulative six-month
returns were hospital bonds, as the healthcare sector ranked second in terms of
performance among the Lehman municipal revenue sectors for the period. In
addition, bonds backed by the 1998 master tobacco settlement agreement also
produced solid performance during this period, as the litigation environment
improved and increased demand drove tobacco bond prices higher. As of April 30,
2005, all of these Funds held close to 5% of their portfolio assets in tobacco
bonds.
Also during this reporting period, NMO continued to hold bonds issued by the
Indianapolis Airport Authority and originally backed by United Airlines. As the
airline continued its struggle to emerge from bankruptcy, these bonds continued
to decline in value, which detracted from NMO's performance during this period.
NXZ and NZF also held small quantities of these bonds.
6
How were the Funds positioned in terms of credit quality and bond calls as of
April 30, 2005?
Even though lower quality bonds performed well over this period, we continued to
believe that in the current geopolitical and economic climate it was important
to maintain strong credit quality. As of April 30, 2005, all six of these Funds
continued to offer excellent credit quality, with allocations of bonds rated
AAA/U.S. guaranteed and AA ranging from 66% in NXZ to 76% in NMA, 78% in NAD,
80% in NMO, 82% in NZF and 83% in NPP.
At the end of April 2005, potential call exposure for the period May 2005
through the end of 2006 ranged from 4% in NXZ to 5% in NZF, 7% in NMO, 11% in
NAD, and 13% in NPP and NMA. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
7
Dividend and Share Price
Information
All six of the Funds in this report use leverage to enhance opportunities for
additional income for common shareholders. The extent of this benefit is tied in
part to the short-term rates the Funds pay their MuniPreferred(R) shareholders.
During periods of low short-term rates, leveraged Funds generally pay lower
dividends to MuniPreferred shareholders, which can leave more earnings to
support common share dividends. However, when short-term interest rates rise, as
they did during this reporting period, the Funds' borrowing costs also rise.
While leveraging can still provide benefits for common shareholders as
short-term rates rise, the extent of the benefit may be less. In addition, any
reinvested proceeds from bonds called or retired during this period were
reinvested in a low interest rate environment, which also tended to reduce the
income generated by the Funds. The combination of these two factors led to
dividend reductions in NPP, NMA, NMO and NAD over the six-month period ended
April 30, 2005. The dividends of NXZ and NZF, which experienced fewer bond
calls, remained stable during this period.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2004 as follows:
Long-Term Capital Gains Ordinary Income
(per share) (per share)
--------------------------------------------------------------------------------
NPP $ 0.0151 $ 0.0037
--------------------------------------------------------------------------------
NMA $ 0.0149 $ --
--------------------------------------------------------------------------------
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 net asset value (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, 2005,
all of the Funds in this report had positive UNII balances for both financial
statement and tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
discounts to their NAVs as shown in the accompanying table:
4/30/05 6-Month Average
Discount Discount
--------------------------------------------------------------------------------
NPP -9.92% -8.69%
--------------------------------------------------------------------------------
NMA -4.94% -4.46%
--------------------------------------------------------------------------------
NMO -9.72% -8.21%
--------------------------------------------------------------------------------
NAD -6.31% -5.54%
--------------------------------------------------------------------------------
NXZ -4.26% -3.40%
--------------------------------------------------------------------------------
NZF -7.85% -7.44%
--------------------------------------------------------------------------------
8
Nuveen Performance Plus Municipal Fund, Inc.
NPP
Performance
Overview As of April 30, 2005
Credit Quality
(as a % of total invstments)
-------------------------------------------------
AAA/U.S. Guaranteed 74%
-------------------------------------------------
AA 9%
-------------------------------------------------
A 4% [PIE CHART]
-------------------------------------------------
BBB 9%
-------------------------------------------------
BB or Lower 2%
-------------------------------------------------
NR 2%
-------------------------------------------------
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.081
Jun 0.081
Jul 0.081
Aug 0.081
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.078
Apr 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/04 13.56
13.55
13.55
13.46
13.23
13.09
13.29
13.2
13.05
13.24
13.23
13.2
13.13
13.27
13.34
13.34
13.45
13.52
13.49
13.47
13.47
13.53
13.56
13.57
13.57
13.58
13.61
13.55
13.57
13.46
13.5
13.46
13.53
13.58
13.55
13.45
13.48
13.59
13.59
13.52
13.59
13.67
13.71
13.9
14
14
14.1
14.15
14.15
14.04
14.06
14.04
14.06
14.1
14.01
13.88
13.89
13.96
14
13.96
14.01
14.08
14.11
14.11
14.16
14.2
14.21
14.25
14.32
14.33
14.3
14.18
14.24
14.34
14.36
14.45
14.56
14.54
14.53
14.52
14.54
14.58
14.6
14.65
14.72
14.71
14.71
14.73
14.65
14.69
14.74
14.72
14.79
14.71
14.72
14.8
14.84
14.89
14.89
15.17
15.01
14.99
14.89
14.98
14.99
14.85
14.76
14.64
14.62
14.69
14.74
14.73
14.82
14.8
14.84
14.78
14.75
14.74
14.73
14.8
14.92
14.87
14.85
14.9
14.87
14.88
14.93
14.95
14.93
14.96
14.91
14.9
14.55
14.14
14.31
14.24
14.31
14.37
14.42
14.47
14.51
14.49
14.43
14.45
14.47
14.45
14.45
14.31
14.22
14.27
14.17
14.28
14.33
14.33
14.4
14.34
14.37
14.3
14.29
14.34
14.25
14.27
14.28
14.25
14.27
14.21
14.23
14.24
14.33
14.45
14.49
14.55
14.53
14.5
14.58
14.71
14.55
14.5
14.44
14.35
14.33
14.37
14.31
14.32
14.4
14.4
14.34
14.37
14.39
14.47
14.46
14.53
14.6
14.59
14.69
14.78
14.8
14.88
14.91
14.81
14.77
14.68
14.69
14.65
14.54
14.4
14.56
14.7
14.75
14.76
14.75
14.76
14.78
14.83
14.88
14.84
14.69
14.64
14.54
14.39
14.35
14.2
14.27
14.22
14.11
13.87
13.58
13.68
13.74
13.72
14
14.13
14.3
14.18
14.14
14.23
14.14
14.1
14.15
14.17
14.16
14.12
14.1
14.15
14.19
14.15
14.08
14.13
14.15
14.15
14.31
14.24
14.25
4/30/05 14.25
Fund Snapshot
--------------------------------------------------------------------------------
Share Price $ 14.25
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.82
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.92%
--------------------------------------------------------------------------------
Market Yield 6.57%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.13%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $948,099
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.67
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.66
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 6/22/89)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -1.34% 2.88%
--------------------------------------------------------------------------------
1-Year 12.59% 10.48%
--------------------------------------------------------------------------------
5-Year 10.78% 9.29%
--------------------------------------------------------------------------------
10-Year 6.30% 7.09%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 13.1%
--------------------------------------------------------------------------------
New York 10.7%
--------------------------------------------------------------------------------
California 8.7%
--------------------------------------------------------------------------------
Michigan 4.8%
--------------------------------------------------------------------------------
New Jersey 4.8%
--------------------------------------------------------------------------------
Louisiana 4.6%
--------------------------------------------------------------------------------
Texas 4.2%
--------------------------------------------------------------------------------
Indiana 3.8%
--------------------------------------------------------------------------------
Colorado 3.1%
--------------------------------------------------------------------------------
Utah 3.0%
--------------------------------------------------------------------------------
Florida 3.0%
--------------------------------------------------------------------------------
Washington 2.9%
--------------------------------------------------------------------------------
Ohio 2.8%
--------------------------------------------------------------------------------
Minnesota 2.7%
--------------------------------------------------------------------------------
South Carolina 2.7%
--------------------------------------------------------------------------------
Pennsylvania 2.6%
--------------------------------------------------------------------------------
Massachusetts 2.5%
--------------------------------------------------------------------------------
Georgia 2.1%
--------------------------------------------------------------------------------
Nevada 2.0%
--------------------------------------------------------------------------------
Other 15.9%
--------------------------------------------------------------------------------
Sectors
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 23.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.8%
--------------------------------------------------------------------------------
Tax Obligation/General 13.7%
--------------------------------------------------------------------------------
Utilities 10.2%
--------------------------------------------------------------------------------
Healthcare 8.9%
--------------------------------------------------------------------------------
Transportation 8.7%
--------------------------------------------------------------------------------
Consumer Staples 5.5%
--------------------------------------------------------------------------------
Other 14.2%
--------------------------------------------------------------------------------
(1) Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
(2) The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 or $0.0188 per share.
9
Nuveen Municipal Advantage Fund, Inc.
NMA
Performance
Overview As of April 30, 2005
Fund Snapshot
--------------------------------------------------------------------------------
Share Price $ 15.20
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.99
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.94%
--------------------------------------------------------------------------------
Market Yield 6.55%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.10%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $687,896
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.66
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.42
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/19/89)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 0.18% 3.14%
--------------------------------------------------------------------------------
1-Year 14.22% 10.10%
--------------------------------------------------------------------------------
5-Year 11.97% 9.71%
--------------------------------------------------------------------------------
10-Year 7.24% 7.37%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 12.2%
--------------------------------------------------------------------------------
New York 11.0%
--------------------------------------------------------------------------------
Washington 9.6%
--------------------------------------------------------------------------------
Illinois 9.5%
--------------------------------------------------------------------------------
California 6.6%
--------------------------------------------------------------------------------
Wisconsin 5.2%
--------------------------------------------------------------------------------
Louisiana 5.0%
--------------------------------------------------------------------------------
Tennessee 3.4%
--------------------------------------------------------------------------------
South Carolina 3.1%
--------------------------------------------------------------------------------
Ohio 3.0%
--------------------------------------------------------------------------------
Colorado 2.5%
--------------------------------------------------------------------------------
Nevada 2.5%
--------------------------------------------------------------------------------
Indiana 2.4%
--------------------------------------------------------------------------------
North Carolina 2.1%
--------------------------------------------------------------------------------
Alabama 2.1%
--------------------------------------------------------------------------------
New Jersey 2.0%
--------------------------------------------------------------------------------
Other 17.8%
--------------------------------------------------------------------------------
Sectors
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 20.9%
--------------------------------------------------------------------------------
Healthcare 16.4%
--------------------------------------------------------------------------------
Utilities 16.3%
--------------------------------------------------------------------------------
Transportation 12.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.3%
--------------------------------------------------------------------------------
Housing/Single Family 7.4%
--------------------------------------------------------------------------------
Consumer Staples 5.3%
--------------------------------------------------------------------------------
Other 13.4%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total invstments)
-------------------------------------------------
AAA/U.S. Guaranteed 65%
-------------------------------------------------
AA 11%
-------------------------------------------------
A 5% [PIE CHART]
-------------------------------------------------
BBB 16%
-------------------------------------------------
BB or Lower 3%
-------------------------------------------------
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.086
Jun 0.086
Jul 0.086
Aug 0.086
Sep 0.086
Oct 0.086
Nov 0.086
Dec 0.086
Jan 0.086
Feb 0.086
Mar 0.083
Apr 0.083
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/04 14.31
14.32
14.22
14.16
13.81
13.58
13.77
13.59
13.57
13.76
13.75
13.73
13.69
13.84
13.82
13.93
14.05
14.06
14.14
14.13
14.13
14.24
14.29
14.29
14.24
14.18
14.21
14.23
14.07
13.83
14
13.98
13.89
13.87
13.9
13.87
13.92
13.94
14.02
14.01
14.03
14.14
14.33
14.58
14.57
14.67
14.77
14.85
14.81
14.74
14.8
14.91
14.9
14.93
14.89
14.61
14.66
14.71
14.71
14.67
14.76
14.83
14.88
14.88
14.96
15.01
15.01
15
15.11
15.04
14.99
14.94
14.94
15.05
15.12
15.11
15.16
15.23
15.22
15.25
15.2
15.24
15.23
15.27
15.29
15.3
15.27
15.23
15.24
15.26
15.3
15.37
15.41
15.34
15.34
15.31
15.33
15.42
15.43
15.45
15.39
15.39
15.39
15.47
15.56
15.49
15.45
15.46
15.39
15.5
15.48
15.48
15.61
15.55
15.6
15.54
15.56
15.6
15.6
15.58
15.59
15.63
15.64
15.67
15.65
15.66
15.67
15.7
15.68
15.75
15.77
15.72
15.43
15.04
15.2
15.2
15.29
15.21
15.3
15.44
15.52
15.5
15.46
15.46
15.37
15.37
15.4
15.36
15.25
15.28
15.19
15.31
15.34
15.34
15.33
15.32
15.4
15.27
15.22
15.27
15.18
15.12
15.06
15.1
15.07
15.1
15.1
15.04
15.11
15.23
15.29
15.34
15.3
15.39
15.37
15.46
15.43
15.48
15.33
15.3
15.12
15.15
15.2
15.27
15.22
15.2
15.17
15.18
15.23
15.31
15.36
15.44
15.4
15.44
15.58
15.59
15.7
15.75
15.79
15.76
15.76
15.76
15.66
15.55
15.47
15.38
15.41
15.52
15.7
15.68
15.67
15.71
15.7
15.7
15.68
15.7
15.47
15.42
15.26
15.21
15.19
15.09
15.1
15.08
15.05
14.85
14.42
14.55
14.36
14.35
14.52
14.65
14.78
14.76
14.74
14.78
14.77
14.79
14.82
14.87
14.89
14.92
14.96
15.04
15.15
14.87
14.92
14.93
15.14
15.14
15.1
15.21
15.2
4/30/05 15.2
(1) Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
(2) The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0149 per share.
10
Nuveen Municipal Market Opportunity Fund, Inc.
NMO
Performance
Overview As of April 30, 2005
Credit Quality
(as a % of total invstments)
-------------------------------------------------
AAA/U.S. Guaranteed 69%
-------------------------------------------------
AA 11%
-------------------------------------------------
A 9% [PIE CHART]
-------------------------------------------------
BBB 8%
-------------------------------------------------
BB or Lower 2%
-------------------------------------------------
NR 1%
-------------------------------------------------
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.076
Apr 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/04 13.31
13.28
13.3
13.16
12.93
12.67
12.84
12.85
12.75
13
13.02
13.05
13
13.09
13.04
13.15
13.27
13.36
13.34
13.16
13.16
13.2
13.25
13.23
13.26
13.36
13.32
13.31
13.32
13.17
13.29
13.31
13.29
13.22
13.18
13.19
13.25
13.38
13.46
13.37
13.36
13.45
13.65
13.76
13.78
13.74
13.85
13.79
13.88
13.83
13.81
13.84
13.88
13.85
13.74
13.68
13.64
13.64
13.63
13.63
13.75
13.78
13.82
13.82
13.81
13.84
13.85
13.91
14.02
14.09
14.13
14.02
14.02
14.04
14.06
14.05
14.12
14.15
14.14
14.15
14.14
14.21
14.27
14.31
14.29
14.28
14.33
14.31
14.23
14.26
14.25
14.22
14.28
14.24
14.28
14.31
14.4
14.47
14.44
14.46
14.43
14.43
14.38
14.41
14.58
14.48
14.4
14.26
14.29
14.35
14.36
14.35
14.44
14.41
14.44
14.38
14.41
14.37
14.32
14.32
14.35
14.38
14.36
14.41
14.39
14.36
14.39
14.44
14.49
14.56
14.53
14.6
14.35
14.04
14.16
14.09
14.2
14.24
14.24
14.28
14.34
14.29
14.2
14.24
14.22
14.2
14.22
14.1
14.09
14.12
13.99
14.11
14.13
14.15
14.12
14.1
14.16
14.09
14.04
14.01
13.96
13.93
13.96
13.96
13.9
13.95
13.9
13.95
13.96
14.03
14.08
14.14
14.07
14.12
14.23
14.34
14.32
14.28
14.25
14.17
14.14
14.23
14.15
14.22
14.22
14.23
14.25
14.24
14.27
14.47
14.44
14.48
14.45
14.47
14.5
14.5
14.49
14.55
14.58
14.53
14.57
14.59
14.58
14.59
14.44
14.33
14.44
14.53
14.59
14.62
14.65
14.67
14.68
14.63
14.56
14.53
14.36
14.33
14.13
14.04
13.94
13.91
13.83
13.77
13.62
13.55
13.33
13.46
13.26
13.24
13.45
13.65
13.74
13.73
13.71
13.81
13.74
13.71
13.73
13.75
13.68
13.71
13.7
13.77
13.84
13.78
13.75
13.79
13.82
13.86
13.92
13.97
13.93
4/30/05 13.93
Fund Snapshot
--------------------------------------------------------------------------------
Share Price $ 13.93
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.43
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.72%
--------------------------------------------------------------------------------
Market Yield 6.55%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.10%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $702,503
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.89
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.60
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/21/90)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -0.30% 2.75%
--------------------------------------------------------------------------------
1-Year 12.56% 10.22%
--------------------------------------------------------------------------------
5-Year 9.21% 8.51%
--------------------------------------------------------------------------------
10-Year 6.07% 6.70%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 15.8%
--------------------------------------------------------------------------------
New York 13.9%
--------------------------------------------------------------------------------
Washington 12.0%
--------------------------------------------------------------------------------
Illinois 7.0%
--------------------------------------------------------------------------------
Minnesota 5.2%
--------------------------------------------------------------------------------
South Carolina 4.2%
--------------------------------------------------------------------------------
Pennsylvania 4.1%
--------------------------------------------------------------------------------
Georgia 3.9%
--------------------------------------------------------------------------------
California 3.7%
--------------------------------------------------------------------------------
Nevada 3.5%
--------------------------------------------------------------------------------
Colorado 3.3%
--------------------------------------------------------------------------------
North Dakota 2.8%
--------------------------------------------------------------------------------
New Jersey 2.5%
--------------------------------------------------------------------------------
Massachusetts 2.2%
--------------------------------------------------------------------------------
Other 15.9%
--------------------------------------------------------------------------------
Sectors
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 20.5%
--------------------------------------------------------------------------------
Transportation 17.3%
--------------------------------------------------------------------------------
Tax Obligation/General 15.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.4%
--------------------------------------------------------------------------------
Healthcare 10.7%
--------------------------------------------------------------------------------
Utilities 8.8%
--------------------------------------------------------------------------------
Consumer Staples 5.1%
--------------------------------------------------------------------------------
Other 7.5%
--------------------------------------------------------------------------------
11
Nuveen Dividend Advantage Municipal Fund
NAD
Performance
Overview As of April 30, 2005
Fund Snapshot
--------------------------------------------------------------------------------
Share Price $ 14.54
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.52
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.31%
--------------------------------------------------------------------------------
Market Yield 6.81%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.46%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $609,536
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.88
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.73
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 5/26/99)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -1.69% 2.65%
--------------------------------------------------------------------------------
1-Year 11.76% 10.69%
--------------------------------------------------------------------------------
5-Year 10.33% 10.68%
--------------------------------------------------------------------------------
Since
Inception 6.07% 8.00%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 23.9%
--------------------------------------------------------------------------------
Texas 10.4%
--------------------------------------------------------------------------------
New York 10.1%
--------------------------------------------------------------------------------
Washington 7.5%
--------------------------------------------------------------------------------
New Jersey 5.1%
--------------------------------------------------------------------------------
Wisconsin 4.6%
--------------------------------------------------------------------------------
Florida 3.8%
--------------------------------------------------------------------------------
Pennsylvania 3.4%
--------------------------------------------------------------------------------
Ohio 2.8%
--------------------------------------------------------------------------------
Indiana 2.6%
--------------------------------------------------------------------------------
Michigan 2.3%
--------------------------------------------------------------------------------
Louisiana 2.2%
--------------------------------------------------------------------------------
Colorado 2.1%
--------------------------------------------------------------------------------
Rhode Island 2.0%
--------------------------------------------------------------------------------
Other 17.2%
--------------------------------------------------------------------------------
Sectors
(as a % of total investments)
--------------------------------------------------------------------------------
Healthcare 18.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.5%
--------------------------------------------------------------------------------
Tax Obligation/General 12.4%
--------------------------------------------------------------------------------
Utilities 11.1%
--------------------------------------------------------------------------------
Transportation 10.9%
--------------------------------------------------------------------------------
Consumer Staples 5.1%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total invstments)
-------------------------------------------------
AAA/U.S. Guaranteed 67%
-------------------------------------------------
AA 11%
-------------------------------------------------
A 2% [PIE CHART]
-------------------------------------------------
BBB 8%
-------------------------------------------------
BB or Lower 6%
-------------------------------------------------
NR 6%
-------------------------------------------------
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.0855
Jun 0.0855
Jul 0.0855
Aug 0.0855
Sep 0.0855
Oct 0.0855
Nov 0.0855
Dec 0.0855
Jan 0.0855
Feb 0.0855
Mar 0.0825
Apr 0.0825
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/04 14.01
13.93
13.92
13.84
13.52
13.41
13.72
13.6
13.53
13.82
13.73
13.76
13.75
13.9
14
14.02
14.06
14.2
14.35
14.27
14.27
14.26
14.3
14.26
14.25
14.25
14.32
14.39
14.2
14.13
14.2
14.15
14.16
14.13
14.2
14.15
14.11
14.12
14.13
14.11
14.12
14.27
14.33
14.47
14.46
14.51
14.58
14.55
14.69
14.56
14.65
14.66
14.67
14.66
14.62
14.52
14.54
14.47
14.49
14.35
14.42
14.42
14.43
14.43
14.49
14.57
14.64
14.68
14.78
14.74
14.73
14.66
14.68
14.77
14.83
14.82
14.85
14.95
15.02
15
15
15
15.12
15.18
15.22
15.22
15.14
15.15
15.1
15.15
15.17
15.22
15.18
15.18
15.13
15.11
15.13
15.13
15.13
15.09
15.16
15.18
15.2
15.21
15.27
15.21
15.17
15.16
15.1
15.17
15.15
15.11
15.24
15.21
15.29
15.23
15.26
15.2
15.24
15.24
15.24
15.21
15.25
15.22
15.25
15.25
15.26
15.31
15.33
15.45
15.35
15.34
15.02
14.6
14.7
14.64
14.67
14.73
14.73
14.78
14.86
14.77
14.63
14.7
14.72
14.79
14.79
14.67
14.52
14.56
14.35
14.58
14.67
14.76
14.8
14.86
14.89
14.9
14.82
14.91
14.83
14.75
14.74
14.73
14.66
14.74
14.69
14.7
14.64
14.67
14.87
14.9
14.81
14.8
15.06
15.1
14.9
14.73
14.59
14.6
14.56
14.54
14.49
14.59
14.57
14.48
14.52
14.54
14.64
14.73
14.75
14.79
14.87
14.86
14.89
14.94
14.92
15.03
15.07
15
15.04
14.96
14.95
14.92
14.86
14.83
14.82
14.97
14.99
15.02
15.02
14.96
15.01
15.02
15.05
14.96
14.74
14.72
14.6
14.49
14.42
14.4
14.41
14.35
14.32
14.19
13.82
13.89
13.84
13.84
13.91
14.05
14.2
14.24
14.26
14.31
14.27
14.28
14.34
14.4
14.35
14.3
14.28
14.34
14.43
14.39
14.29
14.34
14.44
14.36
14.47
14.53
14.54
4/30/05 14.54
(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%. For
investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
12
Nuveen Dividend Advantage Municipal Fund 2
NXZ
Performance
Overview As of April 30, 2005
Credit Quality
(as a % of total invstments)
-------------------------------------------------
AAA/U.S. Guaranteed 56%
-------------------------------------------------
AA 10%
-------------------------------------------------
A 14% [PIE CHART]
-------------------------------------------------
BBB 9%
-------------------------------------------------
BB or Lower 8%
-------------------------------------------------
NR 3%
-------------------------------------------------
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.086
Jun 0.086
Jul 0.086
Aug 0.086
Sep 0.086
Oct 0.086
Nov 0.086
Dec 0.086
Jan 0.086
Feb 0.086
Mar 0.086
Apr 0.086
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/04 14.15
14.03
14
13.83
13.51
13.3
13.59
13.63
13.43
13.78
13.63
13.54
13.47
13.57
13.63
13.78
13.81
13.99
14.06
14.06
14.06
14
14.02
14
14
13.97
14.01
14
14
13.82
13.84
13.75
13.84
13.9
13.95
13.88
13.8
13.85
13.86
13.91
13.95
14.02
14.15
14.39
14.4
14.5
14.51
14.6
14.64
14.5
14.46
14.45
14.48
14.54
14.54
14.4
14.35
14.31
14.27
14.28
14.22
14.35
14.46
14.46
14.62
14.7
14.81
14.91
14.97
14.91
14.9
14.75
14.8
14.92
14.84
14.91
14.88
14.93
15.01
14.98
15.04
15.01
15.05
15.08
15.05
15.08
15.05
15.05
15.01
15.04
15.02
15.04
15.12
15.09
15.13
15.13
15.19
15.25
15.24
15.28
15.26
15.26
15.3
15.26
15.3
15.2
15.1
15.08
15.09
15.23
15.25
15.24
15.4
15.42
15.46
15.34
15.36
15.35
15.39
15.34
15.34
15.37
15.32
15.38
15.34
15.37
15.36
15.38
15.44
15.53
15.65
15.65
15.18
14.76
15
14.9
14.89
15.03
15.16
15.2
15.19
15.14
14.96
15.14
15.14
15.11
15.18
15.07
15.09
15.09
14.93
15.21
15.25
15.22
15.35
15.35
15.42
15.41
15.42
15.47
15.47
15.48
15.45
15.49
15.48
15.46
15.47
15.48
15.46
15.62
15.67
15.46
15.29
15.34
15.41
15.45
15.45
15.42
15.34
15.23
15.14
15.03
15.05
15.04
15.04
15
14.97
14.99
15.06
15.21
15.2
15.37
15.33
15.45
15.45
15.56
15.52
15.55
15.55
15.43
15.43
15.38
15.34
15.44
15.25
15.15
15.21
15.28
15.42
15.38
15.35
15.39
15.5
15.57
15.7
15.65
15.33
15.41
15.3
15.03
15.03
15
14.95
14.97
15.03
14.87
14.56
14.69
14.57
14.61
14.88
14.95
15.14
15.13
15.09
15.2
15.14
15.11
15.07
15.09
15.1
15.09
15.16
15.1
15.18
15.08
15.06
15.05
15.08
15.09
15.24
15.28
15.29
4/30/05 15.29
Fund Snapshot
--------------------------------------------------------------------------------
Share Price $ 15.29
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.97
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.26%
--------------------------------------------------------------------------------
Market Yield 6.75%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.38%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $467,516
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 23.93
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.56
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/27/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 2.81% 5.56%
--------------------------------------------------------------------------------
1-Year 15.88% 13.25%
--------------------------------------------------------------------------------
Since
Inception 7.26% 9.44%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 16.7%
--------------------------------------------------------------------------------
Michigan 9.8%
--------------------------------------------------------------------------------
Illinois 7.8%
--------------------------------------------------------------------------------
California 7.6%
--------------------------------------------------------------------------------
New York 4.2%
--------------------------------------------------------------------------------
Colorado 4.2%
--------------------------------------------------------------------------------
Washington 4.1%
--------------------------------------------------------------------------------
New Mexico 3.5%
--------------------------------------------------------------------------------
Florida 3.5%
--------------------------------------------------------------------------------
Indiana 3.3%
--------------------------------------------------------------------------------
Missouri 3.3%
--------------------------------------------------------------------------------
Nevada 3.1%
--------------------------------------------------------------------------------
Alabama 2.9%
--------------------------------------------------------------------------------
Massachusetts 2.7%
--------------------------------------------------------------------------------
Kansas 2.7%
--------------------------------------------------------------------------------
Louisiana 2.6%
--------------------------------------------------------------------------------
Oregon 2.6%
--------------------------------------------------------------------------------
Pennsylvania 2.5%
--------------------------------------------------------------------------------
Minnesota 2.2%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
Sectors
(as a % of total investments)
--------------------------------------------------------------------------------
Healthcare 25.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.6%
--------------------------------------------------------------------------------
Transportation 13.2%
--------------------------------------------------------------------------------
Water and Sewer 8.9%
--------------------------------------------------------------------------------
Utilities 7.7%
--------------------------------------------------------------------------------
Tax Obligation/General 6.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 5.4%
--------------------------------------------------------------------------------
Housing/Single Family 4.8%
--------------------------------------------------------------------------------
Other 11.7%
--------------------------------------------------------------------------------
13
Nuveen Dividend Advantage Municipal Fund 3
NZF
Performance
Overview As of April 30, 2005
Fund Snapshot
--------------------------------------------------------------------------------
Share Price $ 14.32
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.54
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.85%
--------------------------------------------------------------------------------
Market Yield 6.75%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.38%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $626,434
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 19.07
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.83
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 9/25/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 2.14% 4.39%
--------------------------------------------------------------------------------
1-Year 14.91% 12.89%
--------------------------------------------------------------------------------
Since
Inception 5.31% 8.78%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 12.2%
--------------------------------------------------------------------------------
Illinois 11.4%
--------------------------------------------------------------------------------
Washington 10.8%
--------------------------------------------------------------------------------
California 6.9%
--------------------------------------------------------------------------------
Michigan 6.0%
--------------------------------------------------------------------------------
Nevada 5.2%
--------------------------------------------------------------------------------
Colorado 5.2%
--------------------------------------------------------------------------------
New York 3.6%
--------------------------------------------------------------------------------
Iowa 3.5%
--------------------------------------------------------------------------------
Indiana 3.5%
--------------------------------------------------------------------------------
Wisconsin 3.4%
--------------------------------------------------------------------------------
Louisiana 2.1%
--------------------------------------------------------------------------------
Kentucky 2.1%
--------------------------------------------------------------------------------
Ohio 1.8%
--------------------------------------------------------------------------------
Missouri 1.7%
--------------------------------------------------------------------------------
Oregon 1.7%
--------------------------------------------------------------------------------
Other 18.9%
--------------------------------------------------------------------------------
Sectors
(as a % of total investments)
--------------------------------------------------------------------------------
Healthcare 18.1%
--------------------------------------------------------------------------------
Transportation 16.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.2%
--------------------------------------------------------------------------------
Tax Obligation/General 9.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 8.5%
--------------------------------------------------------------------------------
Water and Sewer 8.3%
--------------------------------------------------------------------------------
Utilities 7.4%
--------------------------------------------------------------------------------
Consumer Staples 5.4%
--------------------------------------------------------------------------------
Housing/Single Family 4.7%
--------------------------------------------------------------------------------
Other 10.4%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total invstments)
-------------------------------------------------
AAA/U.S. Guaranteed 72%
-------------------------------------------------
AA 10%
-------------------------------------------------
A 2% [PIE CHART]
-------------------------------------------------
BBB 9%
-------------------------------------------------
BB or Lower 2%
-------------------------------------------------
NR 5%
-------------------------------------------------
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.0805
Jun 0.0805
Jul 0.0805
Aug 0.0805
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0805
Apr 0.0805
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/04 13.38
13.3
13.36
13.23
12.82
12.75
13
12.9
12.84
13.02
12.97
12.89
12.9
13.01
13.15
13.24
13.28
13.26
13.37
13.42
13.42
13.31
13.39
13.28
13.31
13.31
13.31
13.37
13.36
13.07
13.2
13.19
13.11
13.09
13.15
13.17
13.1
13.16
13.17
13.19
13.24
13.33
13.48
13.67
13.75
13.76
13.85
13.88
13.98
13.85
13.81
13.85
13.83
13.9
13.91
13.8
13.87
13.84
13.82
13.8
13.76
13.82
13.83
13.83
13.86
13.9
13.94
13.91
14.01
14
14.02
13.92
13.97
14.01
14.06
14.03
14.14
14.15
14.16
14.18
14.23
14.23
14.35
14.3
14.24
14.32
14.39
14.38
14.3
14.4
14.42
14.46
14.57
14.48
14.5
14.51
14.52
14.48
14.4
14.38
14.34
14.33
14.39
14.43
14.45
14.52
14.41
14.41
14.3
14.45
14.41
14.4
14.49
14.5
14.51
14.45
14.45
14.44
14.42
14.48
14.49
14.43
14.43
14.4
14.39
14.4
14.45
14.5
14.45
14.49
14.62
14.62
14.39
13.95
14
14
14
14.07
14.16
14.26
14.31
14.37
14.25
14.32
14.33
14.34
14.32
14.17
14.2
14.16
14
14.1
14.14
14.12
14.14
14.17
14.22
14.1
14.07
14.07
14
13.95
13.99
14.03
14.07
14.08
14.15
14.03
14.07
14.15
14.18
14.24
14.3
14.26
14.45
14.51
14.69
14.62
14.5
14.43
14.32
14.12
14.17
14.18
14.24
14.16
14.14
14.13
14.15
14.23
14.34
14.4
14.39
14.39
14.49
14.53
14.53
14.57
14.6
14.54
14.57
14.56
14.5
14.45
14.39
14.3
14.37
14.43
14.45
14.46
14.45
14.51
14.54
14.6
14.69
14.55
14.46
14.45
14.3
14.19
14.16
14.18
14.22
14.18
14.07
13.91
13.67
13.79
13.8
13.79
13.95
14.1
14.14
14.12
14.15
14.23
14.15
14.16
14.13
14.21
14.09
14.07
14.07
14.08
14.18
14.16
14.12
14.1
14.15
14.18
14.26
14.35
14.32
4/30/05 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%. For
investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
14
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Portfolio of
Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.5% (1.0% of Total Investments)
$ 3,615 Alabama Water Pollution Control Authority, Revolving Fund Loan Bonds,
Series 1994A, 6.750%, 8/15/17 (Pre-refunded to 8/15/05) - AMBAC Insured 8/05 at 100.00 AAA $ 3,659,537
Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series
1997A:
3,640 5.625%, 2/01/22 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA 3,843,512
1,435 5.625%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 1,506,305
3,820 5.375%, 2/01/27 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 100.00 AAA 3,981,051
1,505 5.375%, 2/01/27 - FGIC Insured 2/07 at 100.00 AAA 1,555,312
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.3% (0.9% of Total Investments)
1,000 Arizona State Transportation Board, Highway Revenue Bonds, Series 2002B,
5.250%, 7/01/22 7/12 at 100.00 AAA 1,085,650
Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport
Revenue Bonds, Series 2002B:
5,365 5.750%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured 7/12 at 100.00 AAA 5,946,834
5,055 5.750%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/12 at 100.00 AAA 5,603,215
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.6% (0.4% of Total Investments)
5,080 Independence County, Arkansas, Hydroelectric Power Revenue Bonds, Series
2003, 5.350%, 5/01/28 - ACA Insured 5/13 at 100.00 A 5,233,264
------------------------------------------------------------------------------------------------------------------------------------
California - 12.9% (8.7% of Total Investments)
3,500 Alameda Corridor Transportation Authority, California, Subordinate Lien
Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 10/17 at 100.00 AAA 2,564,240
11,000 Anaheim Public Finance Authority, California, Subordinate Lease Revenue
Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/20 - FSA
Insured No Opt. Call AAA 5,428,170
2,000 California Health Facilities Financing Authority, Health Facility Revenue
Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 3/13 at 100.00 A 2,018,600
6,435 California, General Obligation Refunding Bonds, Series 2002, 6.000%,
4/01/16 - AMBAC Insured No Opt. Call AAA 7,700,250
4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 A 4,604,985
California Department of Water Resources, Power Supply Revenue Bonds,
Series 2002A:
4,000 6.000%, 5/01/15 5/12 at 101.00 A2 4,608,840
2,750 5.375%, 5/01/22 5/12 at 101.00 A2 2,993,705
6,925 East Bay Municipal Utility District, Alameda and Contra Costa Counties,
California, Subordinated Water System Revenue Refunding Bonds, Series
1996, 4.750%, 6/01/21 - FGIC Insured 6/06 at 100.00 AAA 6,965,234
10,000 Golden State Tobacco Securitization Corporation, California, Tobacco
Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 6/13 at 100.00 BBB 10,622,400
1,000 Mt. Diablo Hospital District, California, Insured Hospital Revenue Bonds,
Series 1993A, 5.125%, 12/01/23 - AMBAC Insured 6/05 at 101.00 AAA 1,043,370
13,450 Ontario Redevelopment Financing Authority, San Bernardino County,
California,Revenue Refunding Bonds, Redevelopment Project 1, Series
1995, 7.200%, 8/01/17 - MBIA Insured No Opt. Call AAA 17,429,586
17,585 Palmdale Community Redevelopment Agency, California, Residential Mortgage
Revenue Refunding Bonds, Series 1991A, 7.150%, 2/01/10 No Opt. Call AAA 19,288,811
2,325 Palmdale Community Redevelopment Agency, California, Restructured Single
Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16
(Alternative Minimum Tax) No Opt. Call AAA 3,177,368
10,000 San Bernardino County, California, Certificates of Participation, Medical
Center Financing Project, Series 1995, 5.500%, 8/01/15 (Pre-refunded to
8/01/05) - MBIA Insured 8/05 at 102.00 AAA 10,275,300
2,000 San Francisco Airports Commission, California, Revenue Bonds, San
Francisco International Airport, Second Series 1999, Issue 23B, 5.125%,
5/01/30 - FGIC Insured 5/09 at 101.00 AAA 2,072,880
2,000 San Francisco Airports Commission, California, Revenue Refunding Bonds,
San Francisco International Airport, Second Series 2001, Issue 27B,
5.125%, 5/01/26 - FGIC Insured 5/11 at 100.00 AAA 2,090,280
15
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 15,745 Walnut Valley Unified School District, Los Angeles County, California,
General Obligation Refunding Bonds, Series 1997A, 7.200%, 2/01/16 -
MBIA Insured 8/11 at 103.00 AAA $ 19,474,361
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 4.7% (3.1% of Total Investments)
3,000 Colorado Educational and Cultural Facilities Authority, Charter School
Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%,
8/15/34 - XLCA Insured 8/14 at 100.00 AAA 3,198,510
3,760 Colorado Health Facilities Authority, Revenue Refunding Bonds, Catholic
Health Initiatives, Series 2001, 5.250%, 9/01/21 9/11 at 100.00 AA 3,961,461
7,575 Denver City and County, Colorado, Airport System Revenue Bonds, Series
1997E, 5.250%, 11/15/23 - MBIA Insured 11/07 at 101.00 AAA 7,986,626
20,000 Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds,
Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 - XLCA Insured 12/13 at 100.00 AAA 20,841,200
10,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
1997B, 0.000%, 9/01/21 - MBIA Insured No Opt. Call AAA 4,876,095
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
2000B, 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 2,541,400
755 Jefferson County School District R1, Colorado, General Obligation Bonds,
Series 2004, 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 811,995
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.0% (1.4% of Total Investments)
5,590 District of Columbia, General Obligation Bonds, Series 1999B, 5.500%,
6/01/13 - FSA Insured 6/09 at 101.00 AAA 6,084,268
6,440 District of Columbia Tobacco Settlement Corporation, Tobacco Settlement
Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 5/11 at 101.00 BBB 6,581,165
6,000 Washington Convention Center Authority, District of Columbia, Senior Lien
Dedicated Tax Revenue Bonds, Series 1998, 5.250%, 10/01/10 - AMBAC
Insured 10/08 at 101.00 AAA 6,432,180
------------------------------------------------------------------------------------------------------------------------------------
Florida - 4.3% (2.9% of Total Investments)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community Development
District, Special Assessment Bonds, Commercial Project, Series 2002A,
5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,850,841
Broward County Housing Finance Authority, Florida, Multifamily Housing
Revenue Bonds, Venice Homes Apartments, Series 2001A:
1,545 5.700%, 1/01/32 (Alternative Minimum Tax) - FSA Insured 7/11 at 100.00 AAA 1,585,139
1,805 5.800%, 1/01/36 (Alternative Minimum Tax) - FSA Insured 7/11 at 100.00 AAA 1,860,540
3,195 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds,
Series 2000-11, 5.850%, 1/01/22 (Alternative Minimum Tax) - FSA Insured 1/10 at 100.00 AAA 3,350,437
10,050 Florida State Board of Education, Full Faith and Credit Public Education
Capital Outlay Refunding Bonds, Series 1999D, 5.750%, 6/01/22 6/10 at 101.00 AAA 11,174,595
7,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, Tampa
International Airport, Series 2003A, 5.250%, 10/01/17 (Alternative
Minimum Tax) - MBIA Insured 10/13 at 100.00 AAA 7,550,130
10,750 Martin County Industrial Development Authority, Florida, Industrial
Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A,
7.875%, 12/15/25 (Alternative Minimum Tax) 6/05 at 102.00 BB+ 10,941,565
2,570 Miami-Dade County Housing Finance Authority, Florida, Multifamily
Mortgage Revenue Bonds, Country Club Villas II Project, Series 2001-1A,
5.850%, 1/01/37 (Alternative Minimum Tax) - FSA Insured 6/11 at 100.00 AAA 2,699,425
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.1% (2.1% of Total Investments)
4,920 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2000A,
5.600%, 1/01/30 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 5,501,544
5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 1999A,
5.500%, 11/01/22 - FGIC Insured No Opt. Call AAA 5,871,750
2,000 George L. Smith II World Congress Center Authority, Atlanta, Georgia,
Revenue Refunding Bonds, Domed Stadium Project, Series 2000, 5.500%,
7/01/20 (Alternative Minimum Tax) - MBIA Insured 7/10 at 101.00 AAA 2,161,420
15,000 Private Colleges and Universities Authority, Georgia, Revenue Bonds,
Emory University, Series 1999A, 5.500%, 11/01/25 11/09 at 101.00 AA 16,238,250
16
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.2% (0.1% of Total Investments)
$ 735 Idaho Housing and Finance Association, Single Family Mortgage Bonds,
Series 2000G-2, 5.950%, 7/01/25 (Alternative Minimum Tax) 7/10 at 100.00 Aa2 $ 774,594
990 Idaho Housing and Finance Association, Single Family Mortgage Bonds,
Series 2000D, 6.200%, 7/01/14 (Alternative Minimum Tax) 1/10 at 100.00 A 1,030,679
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 19.6% (13.1% of Total Investments)
3,000 Chicago, Illinois, General Obligation Bonds, Library Projects, Series
1997, 5.750%, 1/01/17 (Pre-refunded to 1/01/08) - FGIC Insured 1/08 at 102.00 AAA 3,273,330
Chicago, Illinois, General Obligation Bonds, City Colleges
of Chicago Capital Improvement Project, Series 1999:
32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AAA 15,461,867
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AAA 14,863,217
10,000 Chicago Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/19 - FGIC
Insured No Opt. Call AAA 5,113,900
10,000 Chicago Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC
Insured No Opt. Call AAA 4,847,100
9,145 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1996A, 5.500%,
1/01/29 - MBIA Insured 1/07 at 101.00 AAA 9,519,305
DuPage County Forest Preserve District, Illinois, General Obligation
Bonds, Series 2000:
8,000 0.000%, 11/01/18 No Opt. Call AAA 4,357,200
15,285 0.000%, 11/01/19 No Opt. Call AAA 7,891,340
3,085 Illinois Health Facilities Authority, Revenue Bonds, Silver Cross
Hospital and Medical Centers, Series 1999, 5.250%, 8/15/15 8/09 at 101.00 A- 3,183,843
4,580 Illinois Health Facilities Authority, Revenue Bonds, Midwest Care Center
IX, Inc., Series 2000, 6.250%, 8/20/35 8/10 at 102.00 Aaa 5,029,664
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital,
Series 2003, 6.000%, 7/01/33 7/13 at 100.00 A- 3,225,030
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage Revenue
Refunding Bonds, Sinai Health System, Series 2003, 5.150%, 2/15/37 8/13 at 100.00 AAA 4,122,720
4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, Proctor
Community Hospital, Series 1991, 7.375%, 1/01/23 7/05 at 100.00 BB+ 4,416,325
5,000 Kane, McHenry, Cook and DeKalb Counties Community Unit School District
300, Carpentersville, Illinois, General Obligation Bonds, Series 2000,
5.500%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 5,545,850
3,700 Libertyville, Illinois, Affordable Housing Revenue Bonds, Liberty Towers
Project, Series 1999A, 7.000%, 11/01/29 (Alternative Minimum Tax) 11/09 at 100.00 A3 3,852,292
6,000 McHenry County Conservation District, Illinois, General Obligation Bonds,
Series 2001A, 5.625%, 2/01/21 (Pre-refunded to 2/01/11) - FGIC Insured 2/11 at 100.00 AAA 6,753,960
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding
Bonds, McCormick Place Expansion Project, Series 1996A:
9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 5,118,864
16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 8,115,655
23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 10,312,074
13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 5,075,200
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding
Bonds, McCormick Place Expansion Project, Series 1998A:
5,180 5.500%, 12/15/23 - FGIC Insured No Opt. Call AAA 6,099,346
5,100 5.500%, 12/15/23 - FGIC Insured No Opt. Call AAA 5,961,390
10,650 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Hospitality Facility, Series 1996A, 7.000%, 7/01/26 No Opt. Call AAA 14,157,471
17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and
Will Counties, Illinois, General Obligation Bonds, Series 1999, 5.750%,
6/01/23 - FSA Insured No Opt. Call AAA 21,462,832
6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding Bonds, Villa Vianney,
Series 1999A, 6.450%, 10/01/29 10/09 at 102.00 AAA 6,665,566
17
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 5.7% (3.8% of Total Investments)
$ 2,465 Danville Multi-School Building Corporation, Indiana, First Mortgage
Refunding Bonds, Series 2001, 5.250%, 7/15/18 - AMBAC Insured 7/11 at 100.00 AAA $ 2,692,865
14,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 - MBIA
Insured 8/10 at 101.50 AAA 15,295,140
Indiana Health Facility Financing Authority, Revenue Bonds, Ancilla
Systems Inc. Obligated Group, Series 1997:
15,380 5.250%, 7/01/17 - MBIA Insured 7/07 at 101.00 AAA 16,265,273
2,250 5.250%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 2,372,220
4,320 5.250%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 4,554,662
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, Community
Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 (WI, settling
5/04/05) - AMBAC Insured 5/15 at 100.00 AAA 2,073,320
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series
2000:
1,285 5.375%, 12/01/25 (Pre-refunded to 12/01/10) 12/10 at 100.00 Aa2*** 1,427,995
6,715 5.375%, 12/01/25 12/10 at 100.00 Aa2 7,263,884
1,800 Sunman Dearborn High School Building Corporation, Indiana, First Mortgage
Bonds, Series 2005, 5.000%, 7/15/25 - MBIA Insured 1/15 at 100.00 AAA 1,894,968
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.5% (0.3% of Total Investments)
5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2001B, 5.600%, 6/01/35 6/11 at 101.00 BBB 4,759,300
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.3% (0.9% of Total Investments)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, Series 2004A,
5.000%, 3/01/23 3/14 at 100.00 AA+ 4,047,834
5,790 Sedgwick County Unified School District 259, Wichita, Kansas, General
Obligation Bonds, Series 2000, 3.500%, 9/01/17 9/10 at 100.00 AA 5,496,447
3,200 Wyandotte County Unified School District 500, Kansas, General Obligation
Bonds, Series 2001, 4.000%, 9/01/21 - FSA Insured 9/11 at 100.00 AAA 3,137,728
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.4% (0.3% of Total Investments)
3,700 Louisville and Jefferson County Metropolitan Sewer District, Kentucky,
Sewer and Drainage System Revenue Bonds, Series 1997A, 6.250%, 5/15/26
(Pre-refunded to 5/15/07) - MBIA Insured 5/07 at 101.00 AAA 3,982,976
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 6.8% (4.6% of Total Investments)
1,425 East Baton Rouge Mortgage Finance Authority, Louisiana, GNMA/FNMA
Mortgage-Backed Securities Program Single Family Mortgage Revenue
Refunding Bonds, Series 1997B-1, 5.750%, 10/01/26 10/07 at 102.00 Aaa 1,485,962
4,000 Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, Series
2004, 5.250%, 11/01/25 - MBIA Insured 11/14 at 100.00 AAA 4,348,280
4,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General
Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured 7/14 at 100.00 AAA 4,948,995
35,700 Louisiana Stadium and Exposition District, Hotel Occupancy Tax Bonds,
Series 1996, 5.750%, 7/01/26 (Pre-refunded to 7/01/06) - FGIC Insured 7/06 at 102.00 AAA 37,632,084
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 9,885,800
6,250 5.875%, 5/15/39 5/11 at 101.00 BBB 6,222,438
------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.6% (0.4% of Total Investments)
5,680 Portland, Maine, General Airport Revenue Bonds, Series 2003A, 5.000%,
7/01/32 - FSA Insured 7/13 at 100.00 AAA 5,927,307
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 2.6% (1.8% of Total Investments)
1,110 Maryland Community Development Administration, Residential Revenue Bonds,
Series 2000H, 5.800%, 9/01/32 (Alternative Minimum Tax) 9/10 at 100.00 Aa2 1,117,792
7,720 Maryland Transportation Authority, Airport Parking Revenue Bonds,
Baltimore-Washington International Airport Passenger Facility, Series
2002B, 5.125%, 3/01/20 (Alternative Minimum Tax) - AMBAC Insured 3/12 at 101.00 AAA 8,147,920
18
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Maryland (continued)
$ 7,475 Montgomery County Housing Opportunities Commission, Maryland, GNMA/FHA-
Insured Multifamily Housing Revenue Bonds, Series 1994A, 6.250%,
7/01/28 7/05 at 101.00 Aa2 $ 7,583,686
7,090 Takoma Park, Maryland, Hospital Facilities Revenue Refunding and
Improvement Bonds, Washington Adventist Hospital, Series 1995, 6.500%,
9/01/12 - FSA Insured No Opt. Call AAA 8,170,162
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.7% (2.5% of Total Investments)
1,520 Massachusetts Educational Finance Authority, Student Loan Revenue
Refunding Bonds, Series 2000G, 5.700%, 12/01/11 (Alternative Minimum
Tax) - MBIA Insured 12/09 at 101.00 AAA 1,566,390
35 Massachusetts Municipal Wholesale Electric Company, Power Supply System
Revenue Bonds, Nuclear Project 6, Series 1987A, 8.750%, 7/01/18 (Pre-
refunded to 7/01/05) 7/05 at 100.00 Aaa 35,370
Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002E:
1,255 5.250%, 1/01/22 (Pre-refunded to 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 1,396,677
3,745 5.250%, 1/01/22 (Pre-refunded to 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 4,167,773
890 Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002C,
5.250%, 11/01/30 (Pre-refunded to 11/01/12) 11/12 at 100.00 AA*** 991,282
Massachusetts Development Finance Authority, Revenue Bonds, 100 Cambridge
Street Redevelopment, M/SRBC Project, Series 2002A:
4,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 4,197,640
5,625 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,890,163
1,420 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
Southcoast Health System Obligated Group, Series 1998A, 4.750%, 7/01/27
- MBIA Insured 7/08 at 101.00 Aaa 1,432,879
5,745 Massachusetts Industrial Finance Agency, Resource Recovery Revenue
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax) 12/08 at 102.00 BBB 5,896,611
8,500 Route 3 North Transportation Improvements Association, Massachusetts,
Lease Revenue Bonds, Series 2000, 5.375%, 6/15/33 (Pre-refunded to
6/15/10) - MBIA Insured 6/10 at 100.00 AAA 9,411,625
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 7.1% (4.8% of Total Investments)
17,000 Birmingham City School District, Oakland County, Michigan, School
Building and Site Bonds, Series 1998, 4.750%, 11/01/24 - FSA Insured 11/07 at 100.00 AAA 17,224,570
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds,
Series 2005A, 5.000%, 7/01/35 - MBIA Insured 7/15 at 100.00 AAA 5,254,050
3,000 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series
1997A, 5.000%, 7/01/21 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 3,158,130
3,730 Grand Rapids Housing Corporation, Michigan, FHA-Insured Mortgage Loan
Section 8 Assisted Multifamily Revenue Refunding Bonds, Elderly Project,
Series 1992, 7.375%, 7/15/41 7/05 at 103.00 AAA 3,845,630
4,030 Hancock Hospital Finance Authority, Michigan, FHA-Insured Mortgage
Hospital Revenue Bonds, Portage Health System Inc., Series 1998,
5.450%, 8/01/47 - MBIA Insured 8/08 at 100.00 AAA 4,254,350
1,500 Michigan State Building Authority, Revenue Refunding Bonds, Facilities
Program, Series 2001I, 5.000%, 10/15/24 10/11 at 100.00 AA- 1,580,280
5,000 Michigan State Building Authority, Revenue Refunding Bonds, Facilities
Program, Series 2003II, 5.000%, 10/15/29 - MBIA Insured 10/13 at 100.00 AAA 5,245,600
7,115 Michigan State Hospital Finance Authority, Hospital Revenue Refunding
Bonds, Henry Ford Health System, Series 2003A, 5.500%, 3/01/16 3/13 at 100.00 A1 7,684,983
5,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding
Bonds, Sisters of Mercy Health Corporation, Series 1993P, 5.375%,
8/15/14 - MBIA Insured No Opt. Call AAA 5,527,750
3,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution
Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A,
5.550%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 9/09 at 102.00 AAA 3,181,710
10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 1998A, 5.375%, 12/01/16 (Alternative Minimum Tax)
- MBIA Insured 12/08 at 101.00 AAA 10,625,700
19
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 4.1% (2.7% of Total Investments)
$ 7,475 Dakota County Community Development Agency, Minnesota, GNMA
Collateralized Mortgage Loan Multifamily Senior Housing Revenue Bonds,
Wingate Project, Series 2002A, 5.625%, 8/20/43 (Pre-refunded to 5/05/05) 5/05 at 100.00 Aaa $ 7,492,342
105 Dakota County Housing and Redevelopment Authority, Minnesota, FNMA
Collateralized Single Family Mortgage Revenue Bonds, Series 1994A,
6.900%, 10/01/27 (Alternative Minimum Tax) 10/05 at 101.00 AAA 106,190
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota,
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26 - FGIC
Insured 1/11 at 100.00 AAA 3,188,460
21,335 St. Paul Housing and Redevelopment Authority, Minnesota, Sales Tax
Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%,
11/01/23 - FSA Insured 11/15 at 103.00 AAA 26,941,625
890 St. Paul Housing and Redevelopment Authority, Minnesota, FNMA Mortgage-
Backed Securities Middle Income Program Phase II Single Family Mortgage
Revenue Refunding Bonds, Series 1995, 6.800%, 3/01/28 9/05 at 102.60 Aaa 914,377
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.3% (0.9% of Total Investments)
9,750 Mississippi Business Finance Corporation, Pollution Control Revenue
Refunding Bonds, System Energy Resources Inc. Project, Series 1998,
5.875%, 4/01/22 10/05 at 100.00 BBB- 9,872,363
2,475 Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds,
Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 9/14 at 100.00 N/R 2,559,769
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.6% (1.1% of Total Investments)
2,000 Missouri-Illinois Metropolitan District Bi-State Development Agency, Mass
Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension
Project, Series 2002B, 5.000%, 10/01/32 - FSA Insured 10/13 at 100.00 AAA 2,094,100
6,350 Kansas City, Missouri, Airport Revenue Bonds, General Improvement
Projects, Series 2003B, 5.250%, 9/01/17 - FGIC Insured 9/12 at 100.00 AAA 6,932,422
3,740 Missouri Health and Educational Facilities Authority, Revenue Bonds, SSM
Healthcare System, Series 2001A, 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 3,951,946
1,845 Missouri Health and Educational Facilities Authority, Revenue Bonds, BJC
Health System, Series 2003, 5.250%, 5/15/18 5/13 at 100.00 AA 1,989,113
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.8% (0.5% of Total Investments)
1,050 Montana Board of Housing, Single Family Mortgage Bonds, Series 1997A,
6.150%, 6/01/30 (Alternative Minimum Tax) 6/07 at 101.50 AA+ 1,075,431
1,095 Montana Board of Housing, Single Family Mortgage Bonds, Series 2000A-2,
6.450%, 6/01/29 (Alternative Minimum Tax) 12/09 at 100.00 AA+ 1,112,378
4,795 Montana Higher Education Student Assistance Corporation, Student Loan
Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31 (Alternative
Minimum Tax) 12/08 at 101.00 A2 4,947,865
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.2% (0.1% of Total Investments)
1,820 Nebraska Investment Finance Authority, Single Family Housing Revenue
Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative Minimum Tax) 9/10 at 100.00 AAA 1,847,791
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 3.0% (2.0% of Total Investments)
5,000 Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada
Water Authority Loan, Series 2001, 5.300%, 6/01/19 - FGIC Insured 6/11 at 100.00 AAA 5,468,900
10,900 Clark County School District, Nevada, General Obligation Bonds, Series
2002C, 5.500%, 6/15/19 (Pre-refunded to 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 12,367,140
10,465 Nevada, General Obligation Bonds, Municipal Bond Bank Project 52, Series
1996A, 6.000%, 5/15/21 (Pre-refunded to 5/15/06) 5/06 at 101.00 AAA 10,920,960
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 1.2% (0.8% of Total Investments)
New Hampshire Housing Finance Authority, FHLMC Multifamily Housing
Revenue Remarketed Bonds, Countryside LP Project, Series 1994:
3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,934,531
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,371,631
20
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 7.1% (4.8% of Total Investments)
$ 3,165 New Jersey Higher Education Assistance Authority, Student Loan Revenue
Bonds, Series 2000A, 6.000%, 6/01/13 (Alternative Minimum Tax) - MBIA
Insured 6/10 at 101.00 AAA $ 3,175,824
3,000 New Jersey Economic Development Authority, Transportation Sublease
Revenue Bonds, Light Rail Transit System, Series 1999A, 5.250%, 5/01/17
(Pre-refunded to 5/01/09) - FSA Insured 5/09 at 100.00 AAA 3,255,570
8,750 New Jersey Transportation Trust Fund Authority, Transportation System
Bonds, Series 1996B, 5.250%, 6/15/16 (Pre-refunded to 6/15/07) 6/07 at 102.00 A+*** 9,343,163
9,250 New Jersey Transportation Trust Fund Authority, Transportation System
Bonds, Series 2003C, 5.500%, 6/15/23 (Pre-refunded to 6/15/13) 6/13 at 100.00 AAA 10,582,925
4,500 New Jersey Transportation Trust Fund Authority, Transportation System
Bonds, Series 2001C, 5.500%, 12/15/18 - FSA Insured No Opt. Call AAA 5,190,795
10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%,
1/01/20 - FSA Insured 7/13 at 100.00 AAA 10,758,600
14,560 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 6/12 at 100.00 BBB 14,549,226
3,125 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 6/13 at 100.00 BBB 3,309,156
West Deptford Township, Gloucester County, New Jersey, General Obligation
Bonds, Series 2000:
3,150 5.500%, 9/01/21 (Pre-refunded to 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,513,951
3,335 5.500%, 9/01/22 (Pre-refunded to 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,720,326
------------------------------------------------------------------------------------------------------------------------------------
New York - 16.0% (10.7% of Total Investments)
1,500 Hempstead Industrial Development Agency, New York, Resource Recovery
Revenue Refunding Bonds, American Ref-Fuel Company of Hempstead, Series
2001, 5.000%, 12/01/10 (Mandatory put 6/01/10) No Opt. Call BBB 1,583,235
13,220 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds,
Series 2002A, 5.500%, 11/15/26 - FSA Insured 11/12 at 100.00 AAA 14,672,746
5 New York City, New York, General Obligation Bonds, Fiscal Series 1987D,
8.500%, 8/01/08 8/05 at 100.00 A1 5,069
12,500 New York City, New York, General Obligation Bonds, Fiscal Series 1997A,
7.000%, 8/01/05 No Opt. Call A1 12,634,750
6,300 New York City, New York, General Obligation Bonds, Fiscal Series 2000A,
6.250%, 5/15/26 - FSA Insured 5/10 at 101.00 AAA 7,180,803
16,295 New York City, New York, General Obligation Bonds, Fiscal Series 1996F,
5.750%, 2/01/15 (Pre-refunded to 2/01/06) 2/06 at 101.50 A1*** 16,911,114
10,000 New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%, 6/15/30
(Pre-refunded to 6/15/09) 6/09 at 101.00 AA+*** 11,177,200
New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 1996B:
7,270 5.750%, 6/15/26 (Pre-refunded to 6/15/06) - MBIA Insured 6/06 at 101.00 AAA 7,589,953
13,380 5.750%, 6/15/26 - MBIA Insured 6/06 at 101.00 AAA 13,966,847
New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 1997A:
3,495 5.500%, 6/15/24 (Pre-refunded to 6/15/06) - MBIA Insured 6/06 at 101.00 AAA 3,639,169
1,380 5.500%, 6/15/24 - MBIA Insured 6/06 at 101.00 AAA 1,430,177
7,810 New York City Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded to
8/15/09) 8/09 at 101.00 AAA 8,754,463
2,250 Dormitory Authority of the State of New York, Lease Revenue Bonds, State
University Dormitory Facilities, Series 1999C, 5.500%, 7/01/29 (Pre-
refunded to 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 2,492,100
1,500 Dormitory Authority of the State of New York, Revenue Bonds, St. Barnabas
Hospital, Series 1997, 5.450%, 8/01/35 - AMBAC Insured 8/07 at 101.00 AAA 1,583,775
2,070 Dormitory Authority of the State of New York, Insured Revenue Bonds, 853
Schools Program, Gateway-Longview Inc., Series 1998A, 5.500%, 7/01/18 -
AMBAC Insured 7/08 at 101.00 AAA 2,237,339
5,500 Dormitory Authority of the State of New York, FHA-Insured Mortgage
Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25 2/14 at 100.00 AAA 5,799,475
21
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
Dormitory Authority of the State of New York, Improvement Revenue Bonds,
Mental Health Services Facilities, Series 1996B:
$ 1,930 5.375%, 2/15/26 (Pre-refunded to 2/15/06) - MBIA Insured 2/06 at 102.00 AAA $ 2,008,956
35 5.375%, 2/15/26 (Pre-refunded to 2/15/06) - MBIA Insured 2/06 at 102.00 AAA 36,432
35 5.375%, 2/15/26 - MBIA Insured 2/06 at 102.00 AAA 36,280
17,000 Dormitory Authority of the State of New York, Third General Resolution
Consolidated Revenue Bonds, City University System, Series 1999-1,
5.500%, 7/01/29 (Pre-refunded to 7/01/09) - FSA Insured 7/09 at 101.00 AAA 18,829,200
3,000 Dormitory Authority of the State of New York, Third General Resolution
Consolidated Revenue Bonds, City University System, Series 1997-1,
5.375%, 7/01/24 (Pre-refunded to 1/01/08) - FSA Insured 1/08 at 102.00 AAA 3,252,750
Dormitory Authority of the State of New York, Revenue
Bonds, Marymount Manhattan College, Series 1999:
1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 AA 1,768,810
9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 10,211,786
3,000 New York State Energy Research and Development Authority, Pollution
Control Revenue Bonds, Rochester Gas and Electric Corporation, Series
1998A, 5.950%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured 9/08 at 102.00 AAA 3,291,780
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.2% (0.1% of Total Investments)
2,000 North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds,
Series 1998A, 5.000%, 1/01/20 - MBIA Insured 1/08 at 102.00 AAA 2,108,940
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.2% (2.8% of Total Investments)
7,500 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 5.000%,
1/01/31 - FSA Insured 1/10 at 101.00 AAA 7,728,975
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives,
Series 2004A, 5.000%, 5/01/30 5/14 at 100.00 AA 3,786,619
7,320 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program
Residential Mortgage Revenue Bonds, Series 1999C, 5.750%, 9/01/30
(Alternative Minimum Tax) 7/09 at 100.00 Aaa 7,373,509
6,800 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds,
Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102.00 N/R 6,843,248
13,900 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay
Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102.00 N/R 14,409,713
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.3% (0.2% of Total Investments)
3,400 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds,
American Airlines Inc., Series 2000B, 6.000%, 6/01/35 (Alternative
Minimum Tax) (Mandatory put 12/01/08) 6/09 at 100.00 B- 3,263,388
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.0% (0.7% of Total Investments)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, Portland
General Electric Company, Series 1985B, 4.800%, 6/01/10 No Opt. Call BBB 9,348,006
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.6% (2.4% of Total Investments)
Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania,
Guaranteed Water Revenue Bonds, Series 1998:
3,125 0.000%, 5/15/22 - FSA Insured No Opt. Call AAA 1,394,625
3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,318,500
3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,249,266
3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,118,227
4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,433,382
2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 891,212
3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 931,440
3,935 Carbon County Industrial Development Authority, Pennsylvania, Resource
Recovery Revenue Refunding Bonds, Panther Creek Partners Project,
Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) No Opt. Call BBB- 4,268,806
11,000 Delaware County Authority, Pennsylvania, Health System Revenue Bonds,
Catholic Health East Issue, Series 1998A, 4.875%, 11/15/18 - AMBAC
Insured 11/08 at 102.00 AAA 11,369,160
Pennsylvania Economic Development Financing Authority, Senior Lien
Resource Recovery Revenue Bonds, Northampton Generating Project, Series
1994A:
2,100 6.400%, 1/01/09 (Alternative Minimum Tax) 7/05 at 101.00 BBB- 2,124,045
4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 7/05 at 101.00 BBB- 4,539,510
22
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania (continued)
$ 700 Pennsylvania Economic Development Financing Authority, Subordinate
Resource Recovery Revenue Bonds, Northampton Generating Project, Series
1994C, 6.875%, 1/01/11 (Alternative Minimum Tax) 7/05 at 101.00 N/R $ 700,665
2,750 Pennsylvania Economic Development Financing Authority, Senior Lien
Resource Recovery Revenue Bonds, Northampton Generating Project, Series
1994B, 6.750%, 1/01/07 (Alternative Minimum Tax) No Opt. Call N/R 2,831,098
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.1% (0.1% of Total Investments)
1,250 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds,
Series 2000B, 5.875%, 7/01/21 - MBIA Insured 7/10 at 101.00 AAA 1,403,500
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.5% (0.3% of Total Investments)
2,000 Kent County Water Authority, Rhode Island, General Revenue Bonds, Series
2002A, 5.000%, 7/15/23 - MBIA Insured 7/12 at 100.00 AAA 2,123,320
Rhode Island Health and Educational Building Corporation, Revenue
Refunding Bonds, Salve Regina University, Series 2002:
1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA 1,349,284
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,152,522
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 4.0% (2.7% of Total Investments)
2,625 Medical University Hospital Authority, South Carolina, FHA-Insured
Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/25 - MBIA Insured 8/14 at 100.00 AAA 2,830,931
22,855 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds,
Series 2004A-2, 0.000%, 1/01/31 - AMBAC Insured No Opt. Call AAA 6,215,417
6,925 South Carolina, General Obligation Bonds, Series 1999A, 4.000%, 10/01/14 10/09 at 101.00 AAA 7,075,619
21,000 Tobacco Settlement Revenue Management Authority, South Carolina, Tobacco
Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 5/11 at 101.00 BBB 21,342,300
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.6% (1.0% of Total Investments)
2,260 Johnson City Health and Educational Facilities Board, Tennessee, Hospital
Revenue Refunding and Improvement Bonds, Johnson City Medical Center,
Series 1998C, 5.125%, 7/01/25 (Pre-refunded to 7/01/23) - MBIA Insured 7/23 at 100.00 AAA 2,402,290
1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds,
Series 1999D, 6.000%, 3/01/24 (Alternative Minimum Tax) - AMBAC Insured 3/10 at 101.00 AAA 1,872,023
6,000 Metropolitan Government of Nashville-Davidson County Health and
Educational Facilities Board, Tennessee, Revenue Refunding and
Improvement Bonds, Meharry Medical College, Series 1996, 6.000%,
12/01/19 - AMBAC Insured 12/17 at 100.00 AAA 7,201,740
3,165 Tennessee Housing Development Agency, Homeownership Program Bonds, Series
2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax) 7/10 at 101.00 AA 3,228,553
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 6.2% (4.2% of Total Investments)
3,740 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue Refunding
Bonds, Series 1999, 5.625%, 11/15/17 - AMBAC Insured 11/09 at 100.00 AAA 4,097,507
3,975 Bell County Health Facilities Development Corporation, Texas, Revenue
Bonds, Scott and White Memorial Hospital and Scott, Sherwood and
Brindley Foundation, Series 2000A, 6.125%, 8/15/23 - MBIA Insured 2/10 at 101.00 AAA 4,435,424
Central Texas Regional Mobility Authority, Travis and
Williamson Counties, Toll Road Revenue Bonds, Series 2005:
4,000 5.000%, 1/01/35 - FGIC Insured 1/15 at 100.00 AAA 4,153,600
1,500 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 AAA 1,537,965
5,690 Dallas-Ft. Worth International Airport Facility Improvement Corporation,
Texas, Revenue Refunding Bonds, American Airlines Inc., Series 2000B,
6.050%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/05) 11/05 at 100.00 CCC 5,627,182
5 Ft. Worth Housing Finance Corporation, Texas, Home Mortgage Revenue
Refunding Bonds, Series 1991A, 8.500%, 10/01/11 10/05 at 100.00 Aa2 5,015
1,000 Fort Worth, Texas, Water and Sewerage Revenue Bonds, Series 1998, 5.250%,
2/15/15 (Pre-refunded to 2/15/08) 2/08 at 100.00 AA*** 1,062,320
23
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 1,000 Harlingen Independent School District, Cameron County, Texas, Unlimited
Tax School Building Bonds, Series 1999, 5.650%, 8/15/29 8/09 at 100.00 AAA $ 1,080,420
1,625 Harris County Health Facilities Development Corporation, Texas, Revenue
Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 1,741,236
4,000 Houston Community College, Texas, Limited Tax General Obligation Bonds,
Series 2003, 5.000%, 2/15/27 - AMBAC Insured 2/13 at 100.00 AAA 4,161,760
3,885 Houston Independent School District, Public Facility Corporation, Harris
County, Texas, Lease Revenue Bonds, Cesar E. Chavez High School, Series
1998A, 0.000%, 9/15/19 - AMBAC Insured No Opt. Call AAA 2,006,136
1,690 Webb County, Laredo, Texas, Combination Tax and Sewer System, Revenue
Certificates of Obligation, Series 1998A, 4.500%, 2/15/18 - MBIA
Insured 2/08 at 100.00 AAA 1,703,182
Leander Independent School District, Williamson and Travis Counties,
Texas, Unlimited Tax School Building and Refunding Bonds, Series 1998:
4,930 0.000%, 8/15/20 8/06 at 46.47 AAA 2,154,657
3,705 0.000%, 8/15/22 8/06 at 41.33 AAA 1,438,466
465 Lubbock Housing Finance Corporation, Texas, GNMA Mortgage-Backed
Securities Program Single Family Mortgage Revenue Refunding Bonds,
Series 1997A, 6.125%, 12/01/17 6/07 at 102.00 AAA 469,980
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 5.000%, 3/01/27 -
FGIC Insured 3/12 at 100.00 AAA 3,606,115
6,835 San Antonio, Texas, Electric and Gas System Revenue Refunding Bonds, New
Series 1998A, 4.500%, 2/01/21 2/09 at 100.00 Aa1 6,881,273
6,000 Spring Branch Independent School District, Harris County, Texas, Limited
Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26 2/11 at 100.00 AAA 6,228,540
4,000 Tarrant Regional Water District, Texas, Water Revenue Refunding and
Improvement Bonds, Series 1999, 5.000%, 3/01/22 - FSA Insured 3/13 at 100.00 AAA 4,264,200
1,740 Texas, General Obligation Bonds, Water Financial Assistance, State
Participation Program, Series 1999C, 5.500%, 8/01/29 - MBIA Insured 8/09 at 100.00 AAA 1,860,043
------------------------------------------------------------------------------------------------------------------------------------
Utah - 4.5% (3.0% of Total Investments)
2,000 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, Special
Obligation Crossover, Sixth Series 1996B, 6.000%, 7/01/16 - MBIA
Insured 7/06 at 102.00 AAA 2,109,400
10,000 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds,
Series 1997B, 5.750%, 7/01/19 - MBIA Insured 7/07 at 102.00 AAA 10,740,200
Utah County, Utah, Hospital Revenue Bonds, IHC Health Services Inc.,
Series 1997:
12,885 5.250%, 8/15/21 - MBIA Insured 8/07 at 101.00 AAA 13,546,774
3,900 5.250%, 8/15/26 - MBIA Insured 8/07 at 101.00 AAA 4,014,855
4,070 Utah Housing Corporation, Single Family Mortgage Bonds, Series 2002A-1,
5.300%, 7/01/18 (Alternative Minimum Tax) 1/12 at 100.00 AA- 4,195,722
30 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000B,
6.250%, 7/01/22 (Alternative Minimum Tax) 1/10 at 100.00 AA 30,137
2,330 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000D-1,
6.050%, 7/01/14 (Alternative Minimum Tax) 7/10 at 100.00 AA- 2,407,636
2,710 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000E-1,
Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) 7/10 at 100.00 Aa1 2,818,698
685 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000E-1,
Class II, 6.150%, 1/01/27 (Alternative Minimum Tax) 7/10 at 100.00 AA 688,322
1,035 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2001A-2,
5.650%, 7/01/27 (Alternative Minimum Tax) 7/11 at 100.00 AA 1,068,223
870 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2001B-1,
5.750%, 7/01/19 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 909,977
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.3% (0.2% of Total Investments)
3,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series
1994-5, 7.000%, 11/01/27 (Alternative Minimum Tax) 5/05 at 102.00 Aa3 3,028,620
24
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands - 0.8% (0.6% of Total Investments)
$ 2,500 Virgin Islands Public Finance Authority, Refinery Revenue Bonds, Hovensa
LLC, Series 2003, 6.125%, 7/01/22 (Alternative Minimum Tax) 1/14 at 100.00 BBB $ 2,743,675
4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note,
Series 2003, 5.000%, 10/01/33 - RAAI Insured 10/14 at 100.00 AA 4,915,448
------------------------------------------------------------------------------------------------------------------------------------
Washington - 4.3% (2.9% of Total Investments)
12,235 Chelan County Public Utility District 1, Washington, Columbia River-Rock
Island Hydro-Electric System Revenue Refunding Bonds, Series 1997A,
0.000%, 6/01/26 - MBIA Insured No Opt. Call AAA 4,295,097
3,100 Cowlitz County Public Utilities District 1, Washington, Electric
Production Revenue Bonds, Series 2004, 5.000%, 9/01/28 - FGIC Insured 9/14 at 100.00 AAA 3,242,228
5,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear
Project 1, Series 2003A, 5.500%, 7/01/16 7/13 at 100.00 Aaa 5,545,700
1,815 Grant County Public Utility District 2, Washington, Revenue Bonds, Master
Lease Program, Wanapum Hydroelectric Development, Series 1997A, 5.625%,
1/01/26 (Pre-refunded to 1/01/06) - MBIA Insured 1/06 at 102.00 AAA 1,886,511
2,295 King County School District 414, Lake Washington, Washington, General
Obligation Bonds, Series 2000, 5.375%, 12/01/16 (Pre-refunded to
12/01/10) 12/10 at 100.00 Aa1*** 2,550,388
12,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2001D,
5.250%, 1/01/26 1/11 at 100.00 Aa1 12,558,480
5,000 Washington State Housing Finance Commission, Non-Profit Housing Revenue
Bonds, Kline Galland Center, Series 1999, 6.000%, 7/01/29 - RAAI
Insured 7/09 at 101.00 AA 5,471,250
4,500 Washington State Healthcare Facilities Authority, Revenue Bonds,
Providence Services, Series 1999, 5.375%, 12/01/19 - MBIA Insured 12/09 at 101.00 AAA 4,872,735
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.5% (0.5% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, Appalachian
Power Company, Series 2003L, 5.500%, 10/01/22 10/11 at 100.00 BBB 5,128,750
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.1% (1.4% of Total Investments)
11,620 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Marshfield Clinic, Series 1999, 6.250%, 2/15/29 - RAAI Insured 2/10 at 101.00 AA 12,912,841
7,490 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Millennium Housing Foundation Inc., Series 1998, 6.100%, 1/01/28 7/08 at 103.00 N/R 6,989,513
------------------------------------------------------------------------------------------------------------------------------------
$ 1,473,200 Total Long-Term Investments (cost $1,305,224,053) - 148.4% 1,406,407,524
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.3% (0.2% of Total Investments)
2,100 Chester County Industrial Development Authority, Pennsylvania, Secured
Revenue Bonds, Archdiocese of Philadelphia, Variable Rate Demand
Obligations, Series 2001, 3.080%, 7/01/31+ VMIG-1 2,100,000
985 Palm Beach County Health Facilities Authority, Florida, Variable Revenue
Bonds, Bethesda Healthcare System, Series 2001, 3.050%, 12/01/31+ VMIG-1 985,000
------------------------------------------------------------------------------------------------------------------------------------
$ 3,085 Total Short-Term Investments (cost $3,085,000) 3,085,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,308,309,053) -148.7% 1,409,492,524
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 17,606,604
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.5)% (479,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 948,099,128
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified market
index.
See accompanying notes to financial statements.
25
Nuveen Municipal Advantage Fund, Inc. (NMA)
Portfolio of
Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 3.2% (2.1% of Total Investments)
$ 10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants,
Series 1999A, 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA $ 10,934,800
5,075 Lauderdale County and Florence Healthcare Authority, Alabama, Revenue
Bonds, Coffee Health Group, Series 1999A, 5.250%, 7/01/24 - MBIA
Insured 7/09 at 101.00 AAA 5,421,876
5,155 Phenix City Industrial Development Board, Alabama, Environmental
Improvement Revenue Bonds, MeadWestvaco Corporation, Series 2002A,
6.350%, 5/15/35 (Alternative Minimum Tax) 5/12 at 100.00 BBB 5,575,545
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.4% (0.2% of Total Investments)
Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series
2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,205,933
1,280 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,353,024
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.7% (0.5% of Total Investments)
5,000 Maricopa County Pollution Control Corporation, Arizona, Remarketed
Revenue Refunding Bonds, Public Service Company of New Mexico, Series
1992A, 5.750%, 11/01/22 5/06 at 101.00 BBB 5,120,000
------------------------------------------------------------------------------------------------------------------------------------
California - 9.8% (6.6% of Total Investments)
2,500 Alameda Corridor Transportation Authority, California, Subordinate Lien
Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 10/17 at 100.00 AAA 1,831,600
3,000 California Health Facilities Financing Authority, Health Facility Revenue
Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 3/13 at 100.00 A 3,027,900
3,550 California Department of Water Resources, Power Supply Revenue Bonds,
Series 2002A, 5.375%, 5/01/22 5/12 at 101.00 A2 3,864,601
7,500 California State Public Works Board, Lease Revenue Bonds, Department of
Mental Health, Coalinga State Hospital, Series 2004A, 5.125%, 6/01/29 4/14 at 100.00 A- 7,826,325
9,955 Capistrano Unified School District, Orange County, California, Special
Tax Bonds, Community Facilities District, Series 2005, 0.000%, 9/01/31
- FGIC Insured No Opt. Call AAA 2,662,664
7,535 Contra Costa County, California, GNMA Mortgage-Backed Securities Program
Home Mortgage Revenue Bonds, Series 1989, 7.750%, 5/01/22 (Alternative
Minimum Tax) No Opt. Call AAA 10,140,226
6,925 East Bay Municipal Utility District, Alameda and Contra Costa Counties,
California, Subordinated Water System Revenue Refunding Bonds, Series
1996, 4.750%, 6/01/21 - FGIC Insured 6/06 at 100.00 AAA 6,965,234
3,360 Folsom Cordova Unified School District, Sacramento County, California,
General Obligation Bonds, School Facilities Improvement District 2,
Series 2002A, 0.000%, 7/01/27 - MBIA Insured No Opt. Call AAA 1,124,088
1,275 Madera Unified School District, Madera County, California, General
Obligation Bonds, Series 2002, 5.250%, 8/01/23 - FSA Insured 8/12 at 100.00 AAA 1,385,300
North Orange County Community College District, California, General
Obligation Bonds, Series 2003B:
7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AAA 2,889,951
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AAA 1,408,880
5,000 Palmdale Community Redevelopment Agency, California, Residential Mortgage
Revenue Refunding Bonds, Series 1991B, 7.375%, 2/01/12 No Opt. Call AAA 6,037,950
5,000 Palmdale Community Redevelopment Agency, California, Single Family
Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16
(Alternative Minimum Tax) No Opt. Call AAA 6,821,600
9,315 Perris, California, GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1989A, 7.600%, 1/01/23 (Alternative
Minimum Tax) No Opt. Call AAA 11,767,453
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.8% (2.5% of Total Investments)
8,350 Colorado Health Facilities Authority, Remarketed Revenue Bonds, Kaiser
Permanente System, Series 1994A, 5.350%, 11/01/16 7/06 at 102.00 AAA 8,720,406
26
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 2,650 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
1997B, 0.000%, 9/01/16 - MBIA Insured No Opt. Call AAA $ 1,614,195
1,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
2000A, 5.750%, 9/01/35 - MBIA Insured 9/10 at 102.00 AAA 1,120,060
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
2000B, 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 2,541,400
4,125 Municipal Subdistrict Northern Colorado Water District, Revenue Bonds,
Series 1997G, 5.250%, 12/01/15 - AMBAC Insured 12/07 at 101.00 AAA 4,384,091
Platte River Power Authority, Colorado, Power Revenue Refunding Bonds,
Series 2002EE:
2,000 5.375%, 6/01/17 6/12 at 100.00 AA- 2,206,480
5,000 5.375%, 6/01/18 6/12 at 100.00 AA- 5,509,650
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.7% (0.4% of Total Investments)
1,825 District of Columbia Housing Finance Agency, GNMA Collateralized Single
Family Mortgage Revenue Bonds, Series 1988F-1, 6.375%, 6/01/26
(Alternative Minimum Tax) 6/05 at 103.00 AAA 1,881,539
2,640 District of Columbia Housing Finance Agency, GNMA/FNMA Single Family
Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28 (Alternative
Minimum Tax) 6/07 at 102.00 AAA 2,677,963
------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.1% (1.4% of Total Investments)
2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, Stratford
Point Apartments, Series 2000O-1, 5.850%, 12/01/31 (Alternative Minimum
Tax) - FSA Insured 12/10 at 100.00 AAA 2,902,268
1,075 Orange County, Florida, Tourist Development Tax Revenue Bonds, Series
2000, 5.250%, 10/01/16 (Pre-refunded to 10/01/09) - AMBAC Insured 10/09 at 100.00 AAA 1,172,814
10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany Health System -
St. Mary's Hospital, Series 1993, 5.125%, 12/01/23 - MBIA Insured 6/05 at 100.50 AAA 10,276,075
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 0.6% (0.4% of Total Investments)
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 5.250%,
10/01/39 - FSA Insured 10/14 at 100.00 AAA 4,290,120
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.6% (0.4% of Total Investments)
1,520 Hawaii Housing Finance and Development Corporation, Single Family Mortgage
Purchase Revenue Bonds, Series 1997A, 5.750%, 7/01/30 (Alternative
Minimum Tax) 7/07 at 102.00 AAA 1,527,174
2,215 Hawaii Housing and Community Development Corporation, GNMA Collateralized
Multifamily Housing Revenue Bonds, Sunset Villas, Series 2000, 5.700%,
7/20/31 7/10 at 102.00 AAA 2,335,873
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 14.3% (9.5% of Total Investments)
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21
Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded to 7/01/10) - FGIC
Insured 7/10 at 101.00 AAA 6,853,252
4,000 Chicago Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1997, 5.750%, 12/01/20 (Pre-
refunded to 12/01/07) - AMBAC Insured 12/07 at 102.00 AAA 4,356,280
12,500 Chicago Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1997A, 5.250%, 12/01/27 - AMBAC
Insured 12/07 at 102.00 AAA 13,253,500
5,000 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare International
Airport, United Air Lines Inc. Project, Series 2001A, 6.375%, 11/01/35
(Alternative Minimum Tax) (Mandatory put 5/01/13) # No Opt. Call N/R 2,068,800
5,000 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds,
O'Hare International Airport, Series 2001A, 5.375%, 1/01/32
(Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,235,950
5,000 Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds,
Series 1997, 5.250%, 1/01/28 (Pre-refunded to 1/01/08) - AMBAC Insured 1/08 at 102.00 AAA 5,391,750
10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, Rush-
Presbyterian-St. Luke's Medical Center Obligated Group, Series 1996A,
6.250%, 11/15/20 - MBIA Insured 11/06 at 102.00 AAA 10,805,349
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush Lincoln
Health Center, Series 1996B, 5.750%, 2/15/22 2/07 at 102.00 A 6,386,015
3,935 Illinois Health Facilities Authority, Revenue Bonds, Victory Health
Services, Series 1997A, 5.375%, 8/15/16 8/07 at 101.00 Baa2 3,842,960
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical
Center, Series 2002, 5.750%, 5/15/22 5/12 at 100.00 Baa2 6,280,560
27
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Expansion Project, Series 1999A:
$ 13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA $ 14,715,599
10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 11,143,308
4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and
Will Counties, Illinois, General Obligation Bonds, Series 1990A,
7.200%, 11/01/20 - AMBAC Insured No Opt. Call AAA 5,908,976
1,940 University of Illinois, Auxiliary Facilities Systems Revenue Bonds,
Series 2003A, 5.000%, 4/01/23 - AMBAC Insured 4/13 at 100.00 AAA 2,061,075
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.5% (2.4% of Total Investments)
5,205 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 - MBIA
Insured 8/10 at 101.50 AAA 5,686,515
9,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding
and Improvement Bonds, Community Hospitals of Indiana, Series 1995,
5.700%, 5/15/22 - MBIA Insured 5/06 at 102.00 AAA 9,406,170
6,075 LaGrange County Jail Building Corporation, Indiana, First Mortgage Jail
Bonds, Series 1998, 5.400%, 10/01/21 10/09 at 101.00 A3 6,394,363
2,725 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Madison
Center Inc., Series 1999, 5.450%, 2/15/12 2/09 at 102.00 BBB 2,816,669
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.7% (0.4% of Total Investments)
945 Iowa Finance Authority, GNMA/FNMA Mortgage-Backed Securities Program
Single Family Mortgage Bonds, Series 1995C, 6.450%, 1/01/24 7/05 at 102.00 AAA 965,062
3,500 Marshalltown, Iowa, Pollution Control Revenue Refunding Bonds, Iowa
Electric Light and Power Company Project, Series 1993, 5.500%, 11/01/23
- MBIA Insured 5/05 at 101.00 AAA 3,541,790
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.8% (1.2% of Total Investments)
5,000 Burlington, Kansas, Environmental Improvement Revenue Bonds, Kansas City
Power and Light Company Project, Series 1998A, 4.750%, 9/01/15
(Mandatory put 10/01/07) No Opt. Call A3 5,139,250
4,935 Kansas Department of Transportation, Highway Revenue Bonds, Series 2004A,
5.000%, 3/01/22 3/14 at 100.00 AA+ 5,282,079
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and Electric
Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured 6/14 at 100.00 AAA 1,882,213
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.6% (1.1% of Total Investments)
5,500 Louisville and Jefferson County Metropolitan Sewer District, Kentucky,
Sewer and Drainage System Revenue Bonds, Series 1997A, 5.250%, 5/15/27
- MBIA Insured 5/07 at 101.00 AAA 5,749,700
4,950 Louisville and Jefferson County Metropolitan Sewer District, Kentucky,
Sewer and Drainage System Revenue Bonds, Series 1997B, 5.200%, 5/15/25
- MBIA Insured 11/07 at 101.00 AAA 5,199,134
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 7.5% (5.0% of Total Investments)
13,500 De Soto Parish, Louisiana, Pollution Control Revenue Refunding Bonds,
Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC
Insured 9/09 at 102.00 AAA 15,023,475
6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General
Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured 7/14 at 100.00 AAA 7,077,595
9,395 Louisiana Public Facilities Authority, Extended Care Facilities Revenue
Bonds, Comm-Care Corporation Project, Series 1994, 11.000%, 2/01/14 No Opt. Call BBB 11,875,186
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement
Asset-Backed Bonds, Series 2001B:
6,000 5.500%, 5/15/30 5/11 at 101.00 BBB 5,931,480
11,750 5.875%, 5/15/39 5/11 at 101.00 BBB 11,698,183
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.1% (0.7% of Total Investments)
1,750 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
UMass Memorial Healthcare, Series 1998A, 5.000%, 7/01/28 - AMBAC Insured 1/09 at 101.00 AAA 1,806,665
4,985 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds,
Series 77, 5.950%, 6/01/25 (Alternative Minimum Tax) - FSA Insured 12/09 at 100.00 AAA 5,010,274
475 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds,
Series 79, 5.950%, 12/01/27 (Alternative Minimum Tax) (Pre-refunded to
6/01/05) - FSA Insured 6/05 at 100.00 AAA 497,216
28
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.5% (1.0% of Total Investments)
$ 3,275 Michigan State Hospital Finance Authority, Revenue Refunding Bonds,
Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 8/05 at 100.00 Ba3 $ 3,278,013
Michigan State Hospital Finance Authority, Hospital Revenue Bonds,
Detroit Medical Center Obligated Group, Series 1998A:
4,995 5.250%, 8/15/23 8/08 at 101.00 Ba3 4,464,531
3,000 5.250%, 8/15/28 8/08 at 101.00 Ba3 2,640,840
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.0% (1.3% of Total Investments)
5,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota,
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/32 - FGIC
Insured 1/11 at 100.00 AAA 5,310,200
5,455 Minnesota Housing Finance Agency, Single Family Mortgage Revenue Bonds,
Series 2000C, 5.550%, 7/01/24 (Alternative Minimum Tax) 7/09 at 100.00 AA+ 5,474,038
2,770 Minnesota Housing Finance Agency, Single Family Mortgage Revenue Bonds,
Series 2000J, 5.400%, 1/01/23 (Alternative Minimum Tax) 1/10 at 100.00 AA+ 2,820,192
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.7% (0.4% of Total Investments)
2,060 Coahoma-Clarksdale Housing Development Corporation, Mississippi, FHA-
Insured Section 8 Assisted Multifamily Mortgage Revenue Refunding Bonds,
Gooden Estates and McLaurin Arms, Series 1990A, 8.000%, 8/01/24 8/05 at 100.00 AAA 2,064,120
2,560 Coahoma-Clarksdale Housing Development Corporation, Mississippi, FHA-
Insured Section 8 Assisted Multifamily Mortgage Revenue Refunding Bonds,
Gooden Estates and McLaurin Arms, Series 1990B, 8.000%, 8/01/24 8/05 at 100.00 AAA 2,565,120
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.3% (0.2% of Total Investments)
1,500 Missouri-Illinois Metropolitan District Bi-State Development Agency, Mass
Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension
Project, Series 2002B, 5.000%, 10/01/32 - FSA Insured 10/13 at 100.00 AAA 1,570,575
330 Missouri Housing Development Commission, Single Family Mortgage Revenue
Bonds, Homeownership Loan Program, Series 2000A-1, 7.500%, 3/01/31
(Alternative Minimum Tax) 9/09 at 102.00 AAA 347,563
------------------------------------------------------------------------------------------------------------------------------------
Montana - 1.6% (1.1% of Total Investments)
3,985 Montana Board of Housing, Single Family Program Bonds, Series 1995B,
6.400%, 12/01/27 (Alternative Minimum Tax) 12/05 at 102.00 AA+ 4,045,572
6,920 Montana Board of Housing, Single Family Mortgage Bonds, Series 1997A,
6.050%, 12/01/37 6/07 at 101.50 AA+ 7,174,102
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 3.8% (2.5% of Total Investments)
7,310 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, Series
2000, 5.500%, 7/01/19 7/10 at 100.00 AA 8,019,362
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, Series
1999A, 6.000%, 7/01/29 (Pre-refunded to 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 8,578,200
7,910 Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%,
1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 8,386,182
910 Nevada Housing Division, Single Family Mortgage Bonds, Senior Series
1997C-2, 5.750%, 4/01/29 (Alternative Minimum Tax) 4/07 at 102.00 Aaa 933,178
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.0% (2.0% of Total Investments)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2002:
15,880 5.750%, 6/01/32 6/12 at 100.00 BBB 15,868,249
5,000 6.125%, 6/01/42 6/12 at 100.00 BBB 5,035,050
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 1.1% (0.8% of Total Investments)
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding Bonds, Public
Service Company of New Mexico - San Juan Project, Series 1997B, 5.800%,
4/01/22 4/06 at 101.00 BBB 7,793,550
------------------------------------------------------------------------------------------------------------------------------------
New York - 16.6% (11.0% of Total Investments)
7,000 Metropolitan Transportation Authority, New York, State Service Contract
Refunding Bonds, Series 2002A, 5.125%, 1/01/29 7/12 at 100.00 AA- 7,306,670
29
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
Nassau County, New York, General Obligation Improvement Bonds, Series
2000F:
$ 3,980 7.000%, 3/01/11 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA $ 4,648,521
4,070 7.000%, 3/01/12 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,753,638
3,925 7.000%, 3/01/15 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,584,282
10,000 New York City, New York, General Obligation Bonds, Fiscal Series 1997G,
6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 10,840,400
7,435 New York City, New York, General Obligation Bonds, Fiscal Series 2000A,
5.750%, 5/15/20 5/10 at 101.00 A1*** 8,446,011
9,850 New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%, 6/15/31
(Pre-refunded to 6/15/09) - FGIC Insured 6/09 at 101.00 AAA 11,009,542
5,000 New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 1997B, 5.750%, 6/15/29
(Pre-refunded to 6/15/07) - FGIC Insured 6/07 at 101.00 AAA 5,346,250
10,000 New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 -
FSA Insured 12/14 at 100.00 AAA 10,501,500
10,000 New York City Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29 (Pre-refunded to
5/15/10) 5/10 at 101.00 AAA 11,476,000
4,975 New York City Industrial Development Agency, New York, Special Facilities
Revenue Bonds, British Airways PLC, Series 1998, 5.250%, 12/01/32
(Alternative Minimum Tax) 12/08 at 102.00 Ba2 4,218,750
3,000 New York City Industrial Development Agency, New York, Special Facilities
Revenue Bonds, British Airways PLC, Series 2002, 7.625%, 12/01/32
(Alternative Minimum Tax) 12/12 at 101.00 Ba2 3,152,370
3,655 Dormitory Authority of the State of New York, Revenue Bonds, State
University Educational Facilities, Series 1997, 5.125%, 5/15/27 (Pre-
refunded to 5/15/08) 5/08 at 101.00 AA-*** 3,932,086
Dormitory Authority of the State of New York, Revenue Bonds, Mental
Health Services Facilities Improvements, Series 1997B:
2,965 5.625%, 2/15/21 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 3,163,892
4,395 5.625%, 2/15/21 2/07 at 102.00 AA- 4,649,910
9,495 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series
94, 5.800%, 10/01/20 (Alternative Minimum Tax) 4/10 at 100.00 Aa1 9,987,601
5,000 New York State Urban Development Corporation, Service Contract Revenue
Bonds, Correctional Facilities, Series 1999C, 6.000%, 1/01/29 (Pre-
refunded to 1/01/09) - AMBAC Insured 1/09 at 101.00 AAA 5,578,200
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 3.2% (2.1% of Total Investments)
8,245 North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998
Trust Agreement, Series 7A, 6.250%, 1/01/29 (Alternative Minimum Tax) 7/09 at 100.00 AA 8,629,712
5,735 North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998
Trust Agreement, Series 8A, 5.950%, 1/01/27 (Alternative Minimum Tax) 1/10 at 100.00 AA 5,924,599
5,925 North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998
Trust Agreement, Series 9A, 5.875%, 7/01/31 (Alternative Minimum Tax) 1/10 at 100.00 AA 6,169,466
1,285 North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998
Trust Agreement, Series 10A, 5.400%, 7/01/32 (Alternative Minimum Tax)
- AMBAC Insured 7/10 at 100.00 AAA 1,316,714
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.4% (0.3% of Total Investments)
2,965 North Dakota Housing Finance Agency, Home Mortgage Finance Program Bonds,
Series 1998B, 5.500%, 7/01/29 (Alternative Minimum Tax) - MBIA Insured 7/08 at 102.00 Aaa 3,051,341
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.5% (3.0% of Total Investments)
5,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital
Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%,
11/15/18 11/09 at 101.00 Baa1 5,138,600
6,000 Cuyahoga County, Ohio, Hospital Revenue Bonds, University Hospitals
Health System, Series 1999, 5.500%, 1/15/30 - AMBAC Insured 7/09 at 101.00 AAA 6,456,480
Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering
Medical Center, Series 1999:
7,840 6.750%, 4/01/18 4/10 at 101.00 A2 8,696,755
5,000 6.750%, 4/01/22 4/10 at 101.00 A2 5,544,550
2,130 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program
Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31
(Alternative Minimum Tax) 8/10 at 100.00 Aaa 2,186,701
2,650 Ohio, General Obligation Bonds, Higher Education, Series 2003A, 5.000%,
5/01/22 5/13 at 100.00 AA+ 2,845,968
30
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.2% (1.4% of Total Investments)
Oklahoma State Industries Authority, Health System Revenue Bonds,
Integris Baptist Medical Center, Series 1999A:
$ 2,110 5.750%, 8/15/29 (Pre-refunded to 8/15/09) - MBIA Insured 8/09 at 101.00 AAA $ 2,358,811
2,890 5.750%, 8/15/29 - MBIA Insured 8/09 at 101.00 AAA 3,153,770
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds,
American Airlines Inc., Series 2001B, 5.650%, 12/01/35 (Alternative
Minimum Tax) (Mandatory put 12/01/08) 12/08 at 100.00 B- 9,363,000
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.3% (0.9% of Total Investments)
2,225 Carbon County Industrial Development Authority, Pennsylvania, Resource
Recovery Revenue Refunding Bonds, Panther Creek Partners Project,
Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) No Opt. Call BBB- 2,413,747
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2004A,
5.500%, 12/01/31 - AMBAC Insured 12/14 at 100.00 AAA 2,888,938
3,240 Washington County Authority, Pennsylvania, Capital Funding Revenue Bonds,
Capital Projects and Equipment Acquisition Program, Series 1999,
6.150%, 12/01/29 - AMBAC Insured No Opt. Call AAA 3,461,292
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 1.4% (0.9% of Total Investments)
4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 5.625%, 7/01/19 -
MBIA Insured 7/10 at 100.00 AAA 4,439,680
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR,
5.000%, 7/01/26 - XLCA Insured 7/15 at 100.00 AAA 5,338,750
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.9% (1.3% of Total Investments)
12,250 Rhode Island Health and Educational Building Corporation, Hospital
Financing Revenue Bonds, Lifespan Obligated Group, Series 1996, 5.500%,
5/15/16 - MBIA Insured 5/07 at 102.00 AAA 13,033,510
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 4.6% (3.1% of Total Investments)
10,000 Greenville County School District, South Carolina, Installment Purchase
Revenue Bonds, Series 2002, 6.000%, 12/01/20 (Pre-refunded to 12/01/12) 12/12 at 101.00 AA-*** 11,812,200
2,500 Lexington County Health Service District, South Carolina, Hospital
Revenue Refunding and Improvement Bonds, Series 2003, 5.750%, 11/01/28 11/13 at 100.00 A 2,677,400
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation Fee Revenue
Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC Insured 6/14 at 100.00 AAA 3,132,840
1,220 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds,
Series 2004A-2, 0.000%, 1/01/23 - FGIC Insured No Opt. Call AAA 522,172
South Carolina Public Service Authority, Revenue Refunding Bonds, Santee
Cooper Electric System, Series 2003A:
3,560 5.000%, 1/01/20 - AMBAC Insured 7/13 at 100.00 AAA 3,830,062
2,125 5.000%, 1/01/21 - AMBAC Insured 7/13 at 100.00 AAA 2,283,738
7,500 Tobacco Settlement Revenue Management Authority, South Carolina, Tobacco
Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 5/11 at 101.00 BBB 7,713,525
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 5.1% (3.4% of Total Investments)
6,000 Knox County Health, Educational and Housing Facilities Board, Tennessee,
Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc.,
Series 2002, 6.500%, 4/15/31 4/12 at 101.00 Baa3 6,226,680
20,415 Knox County Health, Educational and Housing Facilities Board, Tennessee,
Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A, 0.000%,
1/01/18 - FSA Insured 1/13 at 75.87 AAA 10,869,150
1,750 Metropolitan Government of Nashville-Davidson County, Tennessee, Electric
System Revenue Bonds, Series 2001A, 5.125%, 5/15/26 5/11 at 100.00 AA 1,833,493
14,385 Metropolitan Government of Nashville-Davidson County Health and
Educational Facilities Board, Tennessee, Revenue Bonds, Ascension
Health Credit Group, Series 1999A, 5.875%, 11/15/28 (Pre-refunded to
11/15/09) - AMBAC Insured 11/09 at 101.00 AAA 16,189,742
------------------------------------------------------------------------------------------------------------------------------------
Texas - 18.3% (12.2% of Total Investments)
11,810 Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds,
TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Alternative
Minimum Tax) (Mandatory put 11/01/11) (a) No Opt. Call BBB 12,825,778
6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston Lighting
and Power Company, Series 1998, 5.050%, 11/01/18 (Alternative Minimum
Tax) - AMBAC Insured No Opt. Call AAA 6,531,300
31
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 10,000 Central Texas Regional Mobility Authority, Travis and Williamson Counties,
Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 AAA $ 10,253,100
8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal Revenue Bonds,
Valero Energy Corporation, Series 1999, 5.700%, 4/01/32 (Alternative
Minimum Tax) 4/09 at 101.00 BBB- 8,551,368
10,000 Harris County Health Facilities Development Corporation, Texas, Special
Facilities Revenue Bonds, Texas Medical Center Project, Series 1996,
5.900%, 5/15/16 - MBIA Insured 5/06 at 102.00 AAA 10,483,400
5,000 Harris County Health Facilities Development Corporation, Texas, Thermal
Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 -
MBIA Insured 11/13 at 100.00 AAA 5,200,800
13,110 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series
2000B, 5.500%, 7/01/30 - FSA Insured 7/10 at 100.00 AAA 14,140,446
5,000 Houston Community College, Texas, Limited Tax General Obligation Bonds,
Series 2003, 5.000%, 2/15/28 - AMBAC Insured 2/13 at 100.00 AAA 5,198,850
Houston, Texas, Water Conveyance System Contract, Certificates of
Participation, Series 1993A-J:
5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call AAA 6,415,504
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,374,800
9,345 Leander Independent School District, Williamson and Travis Counties,
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34 (WI,
settling 5/10/05) - FGIC Insured 8/15 at 35.34 AAA 1,902,455
16,305 Matagorda County Navigation District 1, Texas, Revenue Bonds, Reliant
Energy Inc., Series 1999B, 5.950%, 5/01/30 (Alternative Minimum Tax) 5/09 at 101.00 BBB- 16,555,282
3,425 Sabine River Authority, Texas, Pollution Control Revenue Refunding Bonds,
TXU Electric Company, Series 2001A, 5.500%, 5/01/22 (Mandatory put
11/01/11) No Opt. Call BBB 3,697,801
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue
Refunding Bonds, Series 2002A, 6.000%, 10/01/21 10/12 at 100.00 Baa2 5,065,190
4,000 Texas, General Obligation Bonds, Water Financial Assistance, State
Participation Program, Series 1999C, 5.500%, 8/01/35 8/09 at 100.00 Aa1 4,279,240
6,840 Travis County Health Facilities Development Corporation, Texas, Revenue
Bonds, Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/24
(Pre-refunded to 11/15/09) - AMBAC Insured 11/09 at 101.00 AAA 7,674,959
2,500 Trinity River Authority of Texas, Pollution Control Revenue Refunding
Bonds, TXU Electric Company, Series 2001A, 5.000%, 5/01/27 (Alternative
Minimum Tax) (Mandatory put 11/01/06) No Opt. Call Baa2 2,576,600
245 Wood Glen Housing Finance Corporation, Texas, FHA-Insured Section 8
Assisted Mortgage Revenue Bonds, Copperwood I Project, Series 1990A,
7.625%, 1/01/10 - MBIA Insured 7/05 at 100.00 AAA 245,872
Wood Glen Housing Finance Corporation, Texas, FHA-Insured Section 8
Assisted Mortgage Revenue Refunding Bonds, Copperwood II Project,
Series 1990C:
20 7.625%, 1/01/10 - MBIA Insured 7/05 at 100.00 AAA 20,052
1,250 7.650%, 7/01/23 - MBIA Insured 7/05 at 100.00 AAA 1,254,013
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.3% (0.2% of Total Investments)
2,200 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds,
Series 1997B, 5.750%, 7/01/19 - MBIA Insured 7/07 at 102.00 AAA 2,362,844
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.9% (0.7% of Total Investments)
6,380 Capital Region Airport Authority, Richmond, Virginia, Revenue Bonds,
Richmond International Airport, Series 1995A, 5.625%, 7/01/20 (Pre-
refunded to 7/01/05) - AMBAC Insured 7/05 at 102.00 AAA 6,533,184
------------------------------------------------------------------------------------------------------------------------------------
Washington - 14.3% (9.6% of Total Investments)
8,810 Chelan County Public Utility District 1, Washington, Hydro Consolidated
System Revenue Bonds, Series 2001A, 5.600%, 1/01/36 (Alternative
Minimum Tax) - MBIA Insured 7/11 at 101.00 AAA 9,446,699
10,730 Chelan County Public Utility District 1, Washington, Hydro Consolidated
System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32
(Alternative Minimum Tax) - MBIA Insured 7/11 at 101.00 AAA 11,557,068
5,665 Chelan County Public Utility District 1, Washington, Hydro Consolidated
System Revenue Bonds, Series 2002B, 5.250%, 7/01/37 (Alternative
Minimum Tax) - AMBAC Insured 7/12 at 100.00 AAA 5,893,753
10,730 Pierce County School District 320, Sumner, Washington, Unlimited Tax
General Obligation Bonds, Series 2000, 6.250%, 12/01/17 (Pre-refunded
to 12/01/10) - FSA Insured 12/10 at 100.00 Aaa 12,401,198
10,550 Port of Seattle, Washington, Limited Tax General Obligation Bonds, Series
2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) 12/10 at 100.00 AA+ 11,452,342
32
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 6.000%, 2/01/10
(Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA $ 5,888,701
19,475 Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18,
Series 1999A, 6.000%, 9/01/29 - MBIA Insured 3/10 at 101.00 AAA 21,659,706
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18,
Series 1999B, 6.000%, 9/01/20 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 5,519,900
5,000 Washington State Healthcare Facilities Authority, Revenue Bonds,
Providence Services, Series 1999, 5.375%, 12/01/19 - MBIA Insured 12/09 at 101.00 AAA 5,414,150
8,750 Washington Public Power Supply System, Revenue Refunding Bonds, Nuclear
Project 3, Series 1998A, 5.125%, 7/01/18 7/08 at 102.00 Aaa 9,188,988
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.7% (0.6% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, Appalachian
Power Company, Series 2003L, 5.500%, 10/01/22 10/11 at 100.00 BBB 5,128,750
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 7.7% (5.2% of Total Investments)
7,750 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 6/12 at 100.00 BBB 7,923,519
2,250 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%,
11/01/29 - FSA Insured 11/14 at 100.00 Aaa 2,366,438
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding Bonds,
Madison Gas and Electric Company Projects, Series 2002A, 5.875%,
10/01/34 (Alternative Minimum Tax) 4/12 at 100.00 AA- 5,420,000
3,000 Southeast Wisconsin Professional Baseball Park District, Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 - MBIA Insured No Opt. Call AAA 3,492,720
2,580 Wisconsin Housing and Economic Development Authority, Home Ownership
Revenue Bonds, Series 2000B, 5.750%, 3/01/22 (Alternative Minimum Tax) 3/10 at 100.00 AA 2,617,018
Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Aurora Medical Group Inc., Series 1996:
10,000 5.600%, 11/15/16 - FSA Insured 5/06 at 102.00 AAA 10,444,800
20,000 5.750%, 11/15/25 - FSA Insured 5/06 at 102.00 AAA 20,899,000
------------------------------------------------------------------------------------------------------------------------------------
$ 1,009,455 Total Long-Term Investments (cost $952,183,067) - 149.8% 1,030,136,685
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 15,759,798
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (358,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 687,896,483
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
# On December 9, 2002, UAL Corporation, the holding company of
United Air Lines, Inc., filed for federal bankruptcy
protection. The Adviser determined that it was likely United
would not remain current on their interest payment obligations
with respect to these bonds and thus has stopped accruing
interest.
(WI) Security purchased on a when-issued basis.
(a) The issuer has received a preliminary adverse determination
from the Internal Revenue Service (the "IRS") regarding the
tax-exempt status of the bonds' coupon payments. The Fund will
continue to treat coupon payments as tax-exempt income until
such time that it is formally determined that the interest on
the bonds should be treated as taxable.
See accompanying notes to financial statements.
33
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Portfolio of
Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.4% (0.2% of Total Investments)
Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series
2005A:
$ 1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA $ 1,205,933
1,275 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,347,739
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.5% (0.3% of Total Investments)
3,000 Arizona State Transportation Board, Highway Revenue Bonds, Series 2001,
5.250%, 7/01/20 7/11 at 100.00 AAA 3,250,890
335 Pima County Industrial Development Authority, Arizona, FNMA/GNMA Single
Family Mortgage Revenue Bonds, Series 1997A, 7.100%, 11/01/29
(Alternative Minimum Tax) 5/07 at 105.85 AAA 339,204
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 1.8% (1.2% of Total Investments)
5,000 Arkansas Development Finance Authority, Hospital Revenue Bonds,
Washington Regional Medical Center, Series 2000, 7.000%, 2/01/15 2/10 at 100.00 BBB 5,554,650
3,480 Cabot School District 4, Lonoke County, Arkansas, General Obligation
Refunding Bonds, Series 2003, 5.000%, 2/01/27 - AMBAC Insured 8/08 at 100.00 Aaa 3,615,198
2,865 University of Arkansas, Fayetteville, Various Facilities Revenue Bonds, 12/12 at 100.00 Aaa 3,266,845
Series 2002, 5.500%, 12/01/20 (Pre-refunded to 12/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
California - 5.6% (3.7% of Total Investments)
3,225 California Health Facilities Financing Authority, Health Facility Revenue
Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 3/13 at 100.00 A 3,254,993
1,000 California Department of Water Resources, Power Supply Revenue Bonds,
Series 2002A, 5.750%, 5/01/17 5/12 at 101.00 A2 1,122,370
10,445 Castaic Lake Water Agency, California, Revenue Certificates of
Participation, Water System Improvement Project, Series 1999, 0.000%,
8/01/29 - AMBAC Insured No Opt. Call AAA 3,130,367
5,000 Golden State Tobacco Securitization Corporation, California, Enhanced
Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.000%, 6/01/38 -
AMBAC Insured 6/13 at 100.00 AAA 5,114,950
Los Angeles Department of Water and Power, California, Electric Plant
Revenue Bonds, Second Series 1993:
5,510 4.750%, 10/15/20 (Pre-refunded to 10/15/17) 10/17 at 100.00 Aaa 5,546,091
490 4.750%, 10/15/20 10/05 at 100.00 AA-*** 493,210
995 Los Angeles Department of Water and Power, California, Electric Plant
Revenue Bonds, Series 1994, 5.375%, 2/15/34 8/05 at 101.00 AA-*** 1,009,099
Orange County, California, Recovery Certificates of Participation, Series
1996A:
13,100 5.875%, 7/01/19 - MBIA Insured 7/06 at 102.00 AAA 13,818,273
690 6.000%, 7/01/26 - MBIA Insured 7/06 at 102.00 AAA 726,549
5,000 San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A, 5.650%,
1/15/17 - MBIA Insured 1/14 at 102.00 AAA 5,014,450
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 5.0% (3.3% of Total Investments)
3,000 Broomfield, Colorado, Master Facilities Lease Purchase Agreement,
Certificates of Participation, Series 1999, 5.750%, 12/01/24 - AMBAC
Insured 12/09 at 100.00 AAA 3,290,430
6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding and Improvement
Bonds, Series 2002A, 5.500%, 12/01/22 - AMBAC Insured 12/12 at 100.00 Aaa 6,965,980
11,465 Denver City and County, Colorado, Airport System Revenue Refunding Bonds,
Series 2000A, 6.000%, 11/15/18 (Alternative Minimum Tax) - AMBAC
Insured 11/10 at 100.00 AAA 12,705,972
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
2000B, 0.000%, 9/01/28 (Pre-refunded to 9/01/10) - MBIA Insured 9/10 at 31.42 AAA 5,207,600
34
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series
2004B:
$ 3,500 0.000%, 9/01/27 - MBIA Insured 9/20 at 67.94 AAA $ 1,078,665
13,300 0.000%, 9/01/31 - MBIA Insured 9/20 at 53.77 AAA 3,196,389
6,250 0.000%, 9/01/32 - MBIA Insured 9/20 at 50.83 AAA 1,417,563
8,000 0.000%, 3/01/36 - MBIA Insured No Opt. Call AAA 1,487,040
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 5.9% (3.9% of Total Investments)
15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2000A,
5.600%, 1/01/30 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 16,773,000
14,330 Fulton County Facilities Corporation, Georgia, Certificates of
Participation, Public Purpose Project, Series 1999, 5.500%, 11/01/18 -
AMBAC Insured 11/10 at 101.00 AAA 15,881,366
8,000 Georgia, General Obligation Bonds, Series 1995C, 7.250%, 7/01/08 No Opt. Call AAA 9,037,120
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 10.6% (7.0% of Total Investments)
6,500 Chicago, Illinois, Gas Supply Revenue Refunding Bonds, Peoples Gas Light
and Coke Company Project, Series 1995A, 6.100%, 6/01/25 (Pre-refunded
to 6/02/05) 6/05 at 102.00 Aa2 6,651,060
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 5.000%,
1/01/28 - MBIA Insured 1/09 at 101.00 AAA 5,402,880
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series 1993,
5.375%, 1/01/14 - AMBAC Insured No Opt. Call AAA 2,575,310
4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 5.000%,
1/01/33 - AMBAC Insured 7/13 at 100.00 AAA 4,150,480
5,210 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue
Bonds, Garden House of River Oaks West Development, Series 1992A,
6.875%, 1/01/20 7/05 at 100.00 A- 5,215,887
38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2000,
5.500%, 4/01/25 - MBIA Insured 4/10 at 100.00 AAA 41,657,764
1,975 Lake County Community High School District 127, Grayslake, Illinois,
General Obligation Bonds, Series 2002A, 9.000%, 2/01/13 - FGIC Insured No Opt. Call AAA 2,688,528
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Expansion Project, Series 2002A:
3,250 0.000%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 1,949,513
2,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 2,369,040
11,000 0.000%, 12/15/38 - MBIA Insured No Opt. Call AAA 2,096,930
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.2% (0.8% of Total Investments)
4,695 Indiana Educational Facilities Authority, Revenue Bonds, Butler
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured 2/11 at 100.00 AAA 5,091,211
13,949 Indianapolis, Indiana, Special Facility Revenue Bonds, United Air Lines
Inc., Indianapolis Maintenance Center Project, Series 1995A, 6.500%,
11/15/31 (Alternative Minimum Tax)# 11/05 at 102.00 N/R 1,309,572
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding Bonds,
Indianapolis Power and Light Company, Series 1991, 5.750%, 8/01/21 8/11 at 102.00 Baa2 2,094,600
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.6% (0.4% of Total Investments)
4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, IPSCO Project,
Series 1997, 6.000%, 6/01/27 (Alternative Minimum Tax) (Mandatory put
6/01/07) No Opt. Call N/R 4,342,040
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.6% (1.1% of Total Investments)
Jefferson County School District Finance Corporation, Kentucky, School
Building Revenue Bonds, Series 2000A:
3,045 5.250%, 7/01/17 - FSA Insured 1/10 at 101.00 AAA 3,306,139
7,490 5.250%, 7/01/20 - FSA Insured 1/10 at 101.00 AAA 8,059,989
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.6% (1.1% of Total Investments)
7,415 Louisiana Local Government Environmental Facilities and Community
Development Authority, Revenue Bonds, Baton Rouge Community College
Facilities Corporation, Series 2002, 5.000%, 12/01/32 - MBIA Insured 12/12 at 100.00 AAA 7,705,890
3,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General
Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured 7/14 at 100.00 AAA 3,565,405
35
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.6% (1.0% of Total Investments)
Frederick County, Maryland, General Obligation Public Facilities Bonds,
Series 2002:
$ 3,710 5.000%, 11/01/18 11/12 at 101.00 AA $ 4,051,988
3,890 5.000%, 11/01/19 11/12 at 101.00 AA 4,245,390
2,500 Maryland Department of Transportation, County Transportation Revenue
Bonds, Series 2002, 5.500%, 2/01/16 No Opt. Call AA 2,887,750
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.4% (2.2% of Total Investments)
Massachusetts Bay Transportation Authority, Assessment Bonds, Series
2000A:
4,150 5.250%, 7/01/30 (Pre-refunded to 7/01/10) 7/10 at 100.00 AAA 4,572,138
1,100 5.250%, 7/01/30 7/10 at 100.00 AAA 1,176,329
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, Series
2000A, 5.750%, 8/01/39 (Pre-refunded to 8/01/10) - FGIC Insured 8/10 at 101.00 AAA 11,349,200
6,195 University of Massachusetts Building Authority, Facilities Revenue Bonds,
Senior Series 2000A, 5.125%, 11/01/25 - MBIA Insured 11/10 at 100.00 AAA 6,583,488
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.3% (0.2% of Total Investments)
2,090 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax
General Obligation Bonds, Series 2000, 5.375%, 8/01/17 - AMBAC Insured 8/10 at 100.00 AAA 2,285,122
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 7.9% (5.2% of Total Investments)
13,675 Minnesota, General Obligation Bonds, Series 2000, 5.125%, 11/01/16 11/10 at 100.00 AAA 14,868,281
3,335 Minnesota Housing Finance Agency, Single Family Remarketed Mortgage Bonds,
Series 1998H-2, 6.050%, 7/01/31 (Alternative Minimum Tax) 1/11 at 101.00 AA+ 3,437,485
30,000 Minnesota Agricultural and Economic Development Board, Healthcare System
Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A,
6.375%, 11/15/29 11/10 at 101.00 A 32,867,700
3,310 St. Paul Housing and Redevelopment Authority, Minnesota, Sales Tax
Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%,
11/01/23 - FSA Insured 11/15 at 103.00 AAA 4,179,835
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.1% (0.7% of Total Investments)
5,900 Mississippi Business Finance Corporation, Pollution Control Revenue
Refunding Bonds, System Energy Resources Inc. Project, Series 1998,
5.875%, 4/01/22 10/05 at 100.00 BBB- 5,974,045
1,520 Mississippi Home Corporation, GNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Bonds, Series 1997D-5, 6.750%, 7/01/29
(Alternative Minimum Tax) 7/07 at 105.00 Aaa 1,544,107
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.3% (0.2% of Total Investments)
7,000 Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue
Bonds, Series 2004B-1, 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA 2,366,350
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 5.3% (3.5% of Total Investments)
9,555 Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada
Water Authority Loan, Series 2001, 5.300%, 6/01/20 - FGIC Insured 6/11 at 100.00 AAA 10,348,829
Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 3,035,860
5,315 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,795,035
21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 22,264,200
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.8% (2.5% of Total Investments)
400 Camden County Pollution Control Financing Authority, New Jersey, Solid
Waste Disposal and Resource Recovery System Revenue Bonds, Series
1991D, 7.250%, 12/01/10 6/05 at 100.00 B2 399,968
18,000 New Jersey Transportation Trust Fund Authority, Transportation System
Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded to 6/15/10) 6/10 at 100.00 AAA 20,248,380
5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and Income
Securities, Series 2004B, 0.000%, 1/01/35 - AMBAC Insured 1/17 at 100.00 AAA 3,173,900
3,165 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42 6/12 at 100.00 BBB 3,187,187
36
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 1.8% (1.2% of Total Investments)
$ 5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds,
Presbyterian Healthcare Services, Series 2001A, 5.500%, 8/01/21 8/11 at 101.00 Aa3 $ 6,368,131
5,675 University of New Mexico, Revenue Refunding Bonds, Series 1992A, 6.250%,
6/01/12 No Opt. Call AA 6,493,449
------------------------------------------------------------------------------------------------------------------------------------
New York - 21.2% (13.9% of Total Investments)
5,000 Long Island Power Authority, New York, Electric System General Revenue
Bonds, Series 1998A, 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 5,306,400
6,750 Nassau County Tobacco Settlement Corporation, New York, Tobacco
Settlement Asset-Backed Bonds, Series 1999A, 6.400%, 7/15/33 7/09 at 101.00 BBB- 7,033,703
New York City, New York, General Obligation Bonds, Fiscal Series 2002G:
1,000 5.000%, 8/01/17 8/12 at 100.00 A1 1,054,320
10,500 5.750%, 8/01/18 8/12 at 100.00 A1 11,698,995
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 2003A,
5.750%, 8/01/16 8/12 at 100.00 A1 5,570,950
New York City, New York, General Obligation Bonds, Fiscal Series 1997H:
1,510 6.125%, 8/01/25 (Pre-refunded to 8/01/07) 8/07 at 101.00 A1*** 1,631,661
8,490 6.125%, 8/01/25 8/07 at 101.00 A1 9,080,734
New York City, New York, General Obligation Bonds, Fiscal Series 1996I:
21,530 5.875%, 3/15/18 (Pre-refunded to 3/15/06) 3/06 at 101.50 A1*** 22,451,269
185 5.875%, 3/15/18 3/06 at 101.50 A1 191,851
17,870 New York City Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded to
8/15/09) 8/09 at 101.00 AAA 20,031,019
Dormitory Authority of the State of New York, Improvement Revenue Bonds,
Mental Health Services Facilities, Series 1997A:
19,290 5.750%, 2/15/27 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 20,625,833
465 5.750%, 2/15/27 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 497,201
245 5.750%, 2/15/28 2/07 at 102.00 AA- 260,582
4,500 New York State Energy Research and Development Authority, Gas Facilities
Revenue Bonds, Brooklyn Union Gas Company, Series 1989C, 5.600%,
6/01/25 (Alternative Minimum Tax) - MBIA Insured 7/05 at 101.00 AAA 4,576,095
4,785 New York State Medical Care Facilities Finance Agency, Secured Mortgage
Revenue Bonds, Brookdale Family Care Centers Inc., Series 1995A,
6.375%, 11/15/19 11/05 at 102.00 Aa1 4,961,519
7,805 New York State Power Authority, General Revenue Bonds, Series 2002A,
5.000%, 11/15/21 11/12 at 100.00 Aa2 8,335,038
10,000 Port Authority of New York and New Jersey, Special Project Bonds, JFK
International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22
(Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 10,777,500
5,400 New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed Bonds,
Series 2003A-1, 5.500%, 6/01/16 6/10 at 100.00 AA- 5,890,050
8,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, Series 1999-1,
6.250%, 7/15/34 7/09 at 101.00 BBB 8,315,520
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.2% (0.8% of Total Investments)
7,500 North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds,
Series 2003A, 5.250%, 1/01/19 - MBIA Insured 1/13 at 100.00 AAA 8,175,750
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 4.3% (2.8% of Total Investments)
22,905 Fargo, North Dakota, Health System Revenue Bonds, MeritCare Obligated
Group, Series 2000A, 5.625%, 6/01/31 - FSA Insured 6/10 at 101.00 AAA 25,066,545
North Dakota Water Commission, Water Development and Management Program
Bonds, Series 2000A:
2,230 5.700%, 8/01/18 (Pre-refunded to 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,505,851
2,450 5.750%, 8/01/19 (Pre-refunded to 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,758,970
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.6% (1.7% of Total Investments)
16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering
Medical Center, Series 1999, 6.300%, 4/01/12 No Opt. Call A2 18,302,114
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.0% (0.0% of Total Investments)
300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds,
American Airlines Inc., Series 2000B, 6.000%, 6/01/35 (Alternative
Minimum Tax) (Mandatory put 12/01/08) 6/09 at 100.00 B- 287,946
37
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.4% (1.6% of Total Investments)
$ 5,000 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 5.250%,
7/01/22 - MBIA Insured Portland, Oregon, Water System Revenue Bonds,
Series 2000A: 1/13 at 100.00 AAA $ 5,471,350
6,780 5.375%, 8/01/18 8/10 at 100.00 Aa1 7,409,591
3,880 5.500%, 8/01/20 8/10 at 100.00 Aa1 4,237,658
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 6.2% (4.1% of Total Investments)
5,000 Delaware County Industrial Development Authority, Pennsylvania, Resource
Recovery Revenue Refunding Bonds, Series 1997A, 6.200%, 7/01/19 1/08 at 102.00 BBB 5,218,050
15,000 Delaware River Port Authority, New Jersey and Pennsylvania, Revenue
Refunding Bonds, Series 1998B, 5.250%, 1/01/08 - AMBAC Insured No Opt. Call AAA 15,921,300
15,050 Pennsylvania, General Obligation Bonds, Second Series 2001, 5.000%,
9/15/14 9/11 at 101.00 AA 16,483,964
5,000 Pennsylvania Higher Education Assistance Agency, Capital Acquisition
Revenue Bonds, Series 2000, 5.875%, 12/15/30 (Pre-refunded to 12/15/10)
- MBIA Insured 12/10 at 100.00 AAA 5,686,400
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.9% (1.9% of Total Investments)
7,900 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed
Refunding Bonds, Series 2002, 5.375%, 5/15/33 5/12 at 100.00 BBB 7,964,227
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program Revenue
Bonds, Series 2003, 4.500%, 12/01/23 No Opt. Call AA*** 12,616,625
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 6.4% (4.2% of Total Investments)
24,730 Greenville County School District, South Carolina, Installment Purchase
Revenue Bonds, Series 2002, 5.500%, 12/01/22 12/12 at 101.00 AA- 26,996,999
21,570 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds,
Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured No Opt. Call AAA 6,199,434
1,405 Three Rivers Solid Waste Authority, South Carolina, Solid Waste Disposal
Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27 - MBIA Insured 1/07 at 102.00 AAA 1,480,083
10,000 Tobacco Settlement Revenue Management Authority, South Carolina, Tobacco
Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 5/11 at 101.00 BBB 10,284,700
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.9% (0.6% of Total Investments)
5,000 Knox County Health, Educational and Housing Facilities Board, Tennessee,
Hospital Revenue Bonds, East Tennessee Children's Hospital, Series
2003A, 5.000%, 7/01/23 - RAAI Insured 7/13 at 100.00 AA 5,186,400
1,200 Metropolitan Government of Nashville-Davidson County Health and
Educational Facilities Board, Tennessee, Revenue Refunding Bonds,
Blakeford at Green Hills, Series 1998, 5.650%, 7/01/16 7/05 at 100.00 N/R 1,199,940
------------------------------------------------------------------------------------------------------------------------------------
Texas - 24.1% (15.8% of Total Investments)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue Bonds,
American Airlines Inc., Series 1990, 7.500%, 12/01/29 (Alternative
Minimum Tax) 6/05 at 100.00 CCC 3,923,900
12,250 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue Refunding
Bonds, Series 1999, 5.800%, 11/15/29 - AMBAC Insured 11/09 at 100.00 AAA 13,401,500
11,255 Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds,
TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Alternative
Minimum Tax) (Mandatory put 11/01/11) (a) No Opt. Call BBB 12,223,043
Brownsville Independent School District, Cameron County, Texas, General
Obligation Bonds, Series 1999:
5,015 5.625%, 8/15/25 8/09 at 100.00 AAA 5,409,229
8,825 5.625%, 8/15/29 8/09 at 100.00 AAA 9,518,733
1,000 Cedar Hill Independent School District, Dallas County, Texas, General
Obligation Bonds, Series 2002, 0.000%, 8/15/32 - FGIC Insured No Opt. Call AAA 253,220
10,000 Central Texas Regional Mobility Authority, Travis and Williamson
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC
Insured 1/15 at 100.00 AAA 10,253,100
38
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
Clear Creek Independent School District, Galveston and
Harris Counties, Texas, Unlimited Tax Schoolhouse and
Refunding Bonds, Series 2000:
$ 16,740 5.400%, 2/15/18 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA $ 18,414,837
585 5.400%, 2/15/18 2/10 at 100.00 AAA 634,982
9,660 5.650%, 2/15/19 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 10,733,226
340 5.650%, 2/15/19 2/10 at 100.00 AAA 373,561
6,645 5.700%, 2/15/20 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 7,397,945
235 5.700%, 2/15/20 2/10 at 100.00 AAA 256,972
7,750 5.700%, 2/15/21 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 8,628,153
270 5.700%, 2/15/21 2/10 at 100.00 AAA 295,245
6,000 Dallas-Ft. Worth International Airport Facility Improvement Corporation,
Texas, Revenue Bonds, American Airlines Inc., Series 1999, 6.375%,
5/01/35 (Alternative Minimum Tax) 11/09 at 101.00 Caa2 4,115,460
11,750 Dallas-Ft. Worth International Airport Facility Improvement Corporation,
Texas, Revenue Refunding Bonds, American Airlines Inc., Series 2000C,
6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 11/07 at 100.00 CCC 10,876,975
21,500 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series
2000B, 5.500%, 7/01/30 - FSA Insured 7/10 at 100.00 AAA 23,189,900
1,250 Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding
Bonds, Series 2001A, 5.000%, 12/01/20 - FSA Insured 12/11 at 100.00 AAA 1,326,938
9,350 Leander Independent School District, Williamson and Travis Counties,
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/32 (WI,
settling 5/10/05) - FGIC Insured 8/15 at 39.49 AAA 2,129,463
15,000 San Antonio Independent School District, Bexar County, Texas, General
Obligation Bonds, Series 1999, 5.800%, 8/15/29 (Pre-refunded to
8/15/09) 8/09 at 100.00 AAA 16,625,550
4,150 Texas General Services Commission, Certificates of Participation, Series
1992, 7.500%, 9/01/22 9/05 at 100.00 A 4,214,034
3,970 Wichita Falls, Wichita County, Texas, Priority Lien Water and Sewerage
System Revenue Bonds, Series 2001, 5.000%, 8/01/21 - AMBAC Insured 8/11 at 100.00 AAA 4,207,843
------------------------------------------------------------------------------------------------------------------------------------
Washington - 18.3% (12.0% of Total Investments)
5,500 Clark County Public Utility District 1, Washington, Generating System
Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 - FSA Insured 1/11 at 100.00 AAA 5,825,930
2,755 Cowlitz County, Washington, Special Sewerage Revenue Refunding Bonds,
CSOB Wastewater Treatment Facilities, Series 2002, 5.500%, 11/01/16 -
FGIC Insured No Opt. Call AAA 3,171,556
10,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear
Project 3, Series 2001A, 5.500%, 7/01/17 - FSA Insured 7/11 at 101.00 AAA 11,072,500
2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 5.000%,
1/01/23 - FGIC Insured 1/12 at 100.00 AAA 2,641,550
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 5.625%, 2/01/30
- MBIA Insured 8/10 at 100.00 AAA 36,524,864
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 5.625%, 2/01/24
(Alternative Minimum Tax) - MBIA Insured 8/10 at 100.00 AAA 7,488,625
Seattle, Washington, General Obligation Refunding and Improvement Bonds,
Series 2002:
6,165 4.400%, 12/01/19 12/12 at 100.00 AAA 6,280,779
6,445 4.500%, 12/01/20 12/12 at 100.00 AAA 6,579,829
3,000 Spokane County School District 81, Spokane, Washington, General
Obligation Bonds, Series 2005, 0.000%, 6/01/24 (WI, settling 5/02/05)
- MBIA Insured 6/15 at 100.00 AAA 2,560,680
Tacoma, Washington, Electric System Revenue Refunding Bonds, Series
2001A:
6,630 5.750%, 1/01/17 - FSA Insured 1/11 at 101.00 AAA 7,427,390
3,500 5.750%, 1/01/18 - FSA Insured 1/11 at 101.00 AAA 3,916,535
12,530 Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-
Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 6/13 at 100.00 BBB 13,184,066
9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, Series
2002C, 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 9,522,000
7,890 Washington State Higher Education Facilities Authority, Revenue Bonds,
Pacific Lutheran University, Series 1999, 5.950%, 11/01/29 - RAAI
Insured 11/09 at 101.00 AA 8,652,647
3,520 Washington State Healthcare Facilities Authority, Revenue Bonds,
Children's Hospital and Regional Medical Center, Series 2001, 5.000%,
10/01/21 - AMBAC Insured 10/11 at 100.00 Aaa 3,676,957
39
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.8% (0.6% of Total Investments)
$ 4,425 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 6/12 at 100.00 BBB $ 4,524,070
1,250 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
United Lutheran Program for the Aging Inc., Series 1998, 5.700%,
3/01/28 3/08 at 101.00 N/R 1,128,025
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.4% (0.3% of Total Investments)
2,800 Jackson National Rural Utilities Cooperative Financing Corporation,
Wyoming, Guaranteed Gas Supply Revenue Bonds, Lower Valley Power and
Light Inc., Series 1997B, 5.875%, 5/01/26 (Alternative Minimum Tax) 5/07 at 101.00 A 2,904,272
------------------------------------------------------------------------------------------------------------------------------------
$ 1,105,889 Total Long-Term Investments (cost $996,786,413) - 152.0% 1,068,018,542
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 14,483,984
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (380,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 702,502,526
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding company of
United Air Lines, Inc., filed for federal bankruptcy
protection. The Adviser determined that it was likely United
would not remain current on their interest payment obligations
with respect to these bonds and thus has stopped accruing
interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
(a) The issuer has received a preliminary adverse determination
from the Internal Revenue Service (the "IRS") regarding the
tax-exempt status of the bonds' coupon payments. The Fund will
continue to treat coupon payments as tax-exempt income until
such time that it is formally determined that the interest on
the bonds should be treated as taxable.
See accompanying notes to financial statements.
40
Nuveen Dividend Advantage Municipal Fund (NAD)
Portfolio of
Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 0.3% (0.2% of Total Investments)
$ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, Series
2000, 5.750%, 12/01/20 6/10 at 102.00 A- $ 1,563,195
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.1% (0.1% of Total Investments)
750 Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series
2005A, 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 803,955
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.5% (1.7% of Total Investments)
15,000 Maricopa County Pollution Control Corporation, Arizona, Remarketed
Revenue Bonds, El Paso Electric Company, Series 1994A, 6.375%,
7/01/14 (Mandatory put 8/01/05) No Opt. Call BBB- 15,130,350
------------------------------------------------------------------------------------------------------------------------------------
California - 2.4% (1.7% of Total Investments)
2,605 California, General Obligation Bonds, Series 1997, 5.000%, 10/01/18 -
AMBAC Insured 10/07 at 101.00 AAA 2,741,268
2,475 Los Angeles Department of Water and Power, California, Power System
Revenue Bonds, Series 2001A-3, 5.375%, 7/01/20 7/06 at 100.00 AA- 2,519,129
9,375 Sacramento County Sanitation District Financing Authority, California,
Revenue Bonds, Series 2000A, 5.875%, 12/01/27 12/05 at 101.00 AA 9,636,844
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.1% (2.1% of Total Investments)
10,250 Denver City and County, Colorado, Airport System Revenue Bonds, Series
1996D, 5.500%, 11/15/25 - MBIA Insured 11/06 at 101.00 AAA 10,673,838
2,950 Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds,
Convention Center Hotel, Series 2003A, 5.000%, 12/01/22 - XLCA Insured 12/13 at 100.00 AAA 3,114,433
1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue Bonds, Boston
Lofts Project, Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax) 10/07 at 102.00 BB 1,476,342
3,205 Denver City and County, Colorado, Airport Special Facilities Revenue
Bonds, Rental Car Projects, Series 1999A, 6.000%, 1/01/12 (Alternative
Minimum Tax) - MBIA Insured 1/09 at 101.00 AAA 3,494,732
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.4% (0.3% of Total Investments)
2,700 Connecticut Development Authority, Health Facilities Revenue Refunding
Bonds, Alzheimer's Resource Center of Connecticut Inc., Series 1994A,
7.125%, 8/15/14 8/05 at 101.00 N/R 2,701,728
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.9% (0.6% of Total Investments)
5,000 Washington Convention Center Authority, District of Columbia, Senior Lien
Dedicated Tax Revenue Bonds, Series 1998, 5.250%, 10/01/13 - AMBAC
Insured 10/08 at 101.00 AAA 5,360,150
------------------------------------------------------------------------------------------------------------------------------------
Florida - 5.6% (3.8% of Total Investments)
1,630 Florida Housing Finance Agency, Housing Revenue Bonds, Mar Lago Village
Apartments, Series 1997F, 5.800%, 12/01/17 (Alternative Minimum Tax) -
AMBAC Insured 12/07 at 102.00 AAA 1,695,053
14,350 JEA St. John's River Power Park System, Florida, Revenue Refunding Bonds,
Issue 2, Series 2002-17, 5.250%, 10/01/13 10/11 at 100.00 Aa2 15,795,763
13,625 Martin County Industrial Development Authority, Florida, Industrial
Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A,
7.875%, 12/15/25 (Alternative Minimum Tax) 6/05 at 102.00 BB+ 13,867,798
2,405 Venice, Florida, Revenue Bonds, Bon Secours System, Revenue Bonds, Series
1996, 5.600%, 8/15/16 - MBIA Insured 8/06 at 102.00 AAA 2,530,445
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.4% (0.9% of Total Investments)
4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue Bonds,
Series 2000, 6.000%, 4/01/25 (Pre-refunded to 4/01/10) 4/10 at 101.00 AA*** 4,555,120
3,500 Gainesville and Hall County Hospital Authority, Georgia, Revenue
Anticipation Certificates, Northeast Georgia Health Services Inc.,
Series 1999, 5.500%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 3,757,915
41
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.3% (0.1% of Total Investments)
$ 575 Idaho Housing and Finance Association, Single Family Mortgage Bonds,
Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax) 7/09 at 101.00 Aa2 $ 577,317
655 Idaho Housing and Finance Association, Single Family Mortgage Bonds,
Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax) 1/10 at 100.00 Aa2 692,866
670 Idaho Housing and Finance Association, Single Family Mortgage Bonds,
Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax) 7/10 at 100.00 Aaa 672,801
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 34.9% (23.9% of Total Investments)
3,635 Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, Series
1999, 5.750%, 12/01/12 12/09 at 102.00 BBB+ 3,836,961
22,750 Chicago, Illinois, General Obligation Refunding Bonds, Emergency
Telephone System, Series 1999, 5.500%, 1/01/23 - FGIC Insured No Opt. Call AAA 26,552,435
7,250 Chicago Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1999A, 5.500%, 12/01/26 - FGIC
Insured No Opt. Call AAA 8,538,978
2,620 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series 1993,
5.375%, 1/01/14 - AMBAC Insured No Opt. Call AAA 2,933,614
Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue Bonds, Archer
Court Apartments, Series 1999A:
885 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 926,383
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,248,841
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,979,535
Chicago, Illinois, Wastewater Transmission Revenue Bonds, Series 1995:
3,795 5.125%, 1/01/25 (Pre-refunded to 1/01/06) - FGIC Insured 1/06 at 102.00 AAA 3,932,000
1,145 5.125%, 1/01/25 - FGIC Insured 1/06 at 102.00 AAA 1,180,506
5,100 Chicago, Illinois, Water Revenue Bonds, Series 1997, 5.250%, 11/01/27
(Pre-refunded to 11/01/07) - FGIC Insured 11/07 at 102.00 AAA 5,482,806
1,000 DuPage County Community School District 200, Wheaton, Illinois, General
Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - FSA Insured 11/13 at 100.00 Aaa 1,099,960
24,835 Illinois Development Finance Authority, Revenue Bonds, Presbyterian Home
of Lake Forest, Series 1999, 5.625%, 9/01/31 - FSA Insured 9/07 at 102.00 AAA 26,500,187
3,935 Illinois Development Finance Authority, Local Government Program Revenue
Bonds, Lake County School District 116 - Round Lake, Series 1999,
0.000%, 1/01/15 - MBIA Insured No Opt. Call Aaa 2,602,609
5,570 Illinois Finance Authority, Revenue Bonds, University of Chicago, Series
2004A, 5.000%, 7/01/34 7/14 at 100.00 Aa1 5,796,198
5,400 Illinois Health Facilities Authority, Revenue Bonds, Loyola University
Health System, Series 1997A, 5.000%, 7/01/24 - MBIA Insured 7/07 at 101.00 AAA 5,612,166
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush Lincoln
Health Center, Series 1996B, 5.500%, 2/15/16 2/07 at 102.00 A 5,694,557
17,280 Illinois Health Facilities Authority, Converted Adjustable Rate Revenue
Bonds, Highland Park Hospital, Series 1991A, 6.000%, 10/01/15
(Pre-refunded to 10/01/07) - FGIC Insured 10/07 at 102.00 AAA 18,826,906
9,920 Illinois Health Facilities Authority, Remarketed Revenue Bonds,
University of Chicago Project, Series 1985A, 5.500%, 8/01/20 8/11 at 103.00 Aa1 10,888,787
7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, Proctor
Community Hospital, Series 1991, 7.375%, 1/01/23 7/05 at 100.00 BB+ 7,247,174
5,000 Kane, McHenry, Cook and DeKalb Counties Community Unit School District
300, Carpentersville, Illinois, General Obligation Bonds, Series 2000,
5.500%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 5,545,850
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding
Bonds, McCormick Place Expansion Project, Series 1996A:
9,750 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 4,269,330
13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 5,372,900
20,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Expansion Project, Series 1999A, 5.500%, 12/15/24 -
FGIC Insured 12/09 at 101.00 AAA 22,420,645
Regional Transportation Authority, Cook, DuPage, Kane,
Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1999:
22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 26,927,226
3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,204,865
42
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%,
12/01/34 - FGIC Insured 12/14 at 100.00 AAA $ 1,398,800
4,500 Will County School District 122, New Lenox, Illinois, General Obligation
Bonds, Series 2000B, 0.000%, 11/01/18 - FSA Insured No Opt. Call Aaa 2,441,205
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.8% (2.6% of Total Investments)
8,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/26 - MBIA
Insured 8/10 at 101.50 AAA 8,740,080
8,755 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Charity Obligated Group, Series 1999D, 5.500%, 11/15/24 (Pre-refunded
to 11/15/09) - MBIA Insured 11/09 at 101.00 AAA 9,711,309
4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, Park Tudor
Foundation Inc., Project, Series 1999, 5.700%, 6/01/24 6/09 at 101.00 Aa3 4,479,571
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.8% (1.3% of Total Investments)
11,095 Iowa Higher Education Loan Authority, Private College Facility Revenue
Bonds, Waldorf College, Series 1999, 7.375%, 10/01/19 10/10 at 102.00 N/R 11,166,230
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.6% (0.4% of Total Investments)
3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 1999,
4.000%, 10/01/18 - FGIC Insured 10/06 at 101.00 AAA 3,818,995
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.6% (1.1% of Total Investments)
3,030 Hardin County School District Finance Corporation, Kentucky, School
Building Revenue Bonds, Series 2000, 5.750%, 2/01/20 2/10 at 101.00 Aa3 3,344,787
Kentucky Economic Development Finance Authority, Hospital System Revenue
Refunding and Improvement Bonds, Appalachian Regional Healthcare Inc.,
Series 1997:
1,850 5.850%, 10/01/17 4/08 at 102.00 BB- 1,790,171
5,000 5.875%, 10/01/22 4/08 at 102.00 BB- 4,722,400
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.2% (2.2% of Total Investments)
2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public Improvements,
Series 2000B, 5.625%, 5/01/25 - FGIC Insured 5/10 at 101.50 AAA 2,474,259
1,750 Louisiana Local Government Environmental Facilities and Community
Development Authority, GNMA Collateralized Mortgage Revenue Refunding
Bonds, Sharlo Apartments, Series 2002A, 6.500%, 6/20/37 6/12 at 105.00 Aaa 1,942,535
5,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General
Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured 7/14 at 100.00 AAA 5,694,005
9,545 Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30 5/11 at 101.00 BBB 9,435,996
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.6% (1.1% of Total Investments)
1,500 Boston Industrial Development Financing Authority, Massachusetts,
Subordinate Revenue Bonds, Crosstown Center Project, Series 2002,
8.000%, 9/01/35 (Alternative Minimum Tax) 9/12 at 102.00 N/R 1,487,910
785 Massachusetts Port Authority, Special Facilities Revenue Bonds, US
Airways Group Inc., Series 1996A, 5.875%, 9/01/23 (Alternative Minimum
Tax) - MBIA Insured 9/06 at 102.00 AAA 820,474
7,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, BOSFUEL
Corporation, Series 1997, 5.500%, 7/01/18 (Alternative Minimum Tax) -
MBIA Insured 7/07 at 102.00 AAA 7,411,530
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.3% (2.3% of Total Investments)
2,435 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series
2001A, 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 2,606,741
15,255 Michigan State Hospital Finance Authority, Hospital Revenue Bonds,
Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 8/08 at 101.00 Ba3 13,428,671
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 1998A, 5.375%, 12/01/16 (Alternative Minimum
Tax) - MBIA Insured 12/08 at 101.00 AAA 4,250,280
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.6% (0.4% of Total Investments)
2,250 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, Special
Facilities Revenue Bonds, Northwest Airlines Inc. Project, Series
2001A, 7.000%, 4/01/25 (Alternative Minimum Tax) 4/11 at 101.00 N/R 2,053,890
43
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Minnesota (continued)
$ 1,485 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, Series
1998H-1, 5.650%, 7/01/31 (Alternative Minimum Tax) 1/10 at 101.00 AA+ $ 1,498,617
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.8% (1.2% of Total Investments)
7,000 Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue
Bonds, Series 2004B-1, 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA 2,366,350
Missouri Health and Educational Facilities Authority,
Revenue Bonds, SSM Healthcare System, Series 2001A:
4,370 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 4,651,909
3,670 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 3,877,979
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.4% (0.3% of Total Investments)
1,485 Montana Board of Housing, Single Family Mortgage Bonds, Series 2000A-2,
6.450%, 6/01/29 (Alternative Minimum Tax) 12/09 at 100.00 AA+ 1,508,567
1,000 Montana Higher Education Student Assistance Corporation, Student Loan
Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32
(Alternative Minimum Tax) 12/09 at 100.00 A2 1,053,330
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.3% (0.2% of Total Investments)
1,700 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan Program,
Series 1993A-5A, 6.200%, 6/01/13 (Alternative Minimum Tax) - MBIA
Insured No Opt. Call AAA 1,762,271
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.1% (0.7% of Total Investments)
2,115 Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada
Water Authority Loan, Series 2001, 5.300%, 6/01/19 - FGIC Insured 6/11 at 100.00 AAA 2,313,345
8,000 Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 0.000%,
1/01/19 - AMBAC Insured No Opt. Call AAA 4,244,480
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.3% (0.2% of Total Investments)
1,530 New Hampshire Housing Finance Agency, Single Family Mortgage Acquisition
Revenue Bonds, Series 1995D, 6.550%, 7/01/26 (Alternative Minimum Tax) 7/05 at 102.00 Aa2 1,537,298
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 7.5% (5.1% of Total Investments)
2,745 New Jersey Higher Education Assistance Authority, Student Loan Revenue
Bonds, Series 2000A, 6.000%, 6/01/13 (Alternative Minimum Tax) - MBIA
Insured 6/10 at 101.00 AAA 2,754,388
1,620 New Jersey Health Care Facilities Financing Authority, FHA-Insured
Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001,
4.800%, 8/01/21 - AMBAC Insured 8/11 at 100.00 AAA 1,649,759
11,600 New Jersey Economic Development Authority, Solid Waste Facilities Revenue
Bonds, Bridgewater Resources Inc. Project, Series 1999B, 8.250%,
6/01/19 (Alternative Minimum Tax)# No Opt. Call N/R 6,032,000
675 New Jersey Economic Development Authority, Solid Waste Revenue Bonds,
Bridgewater Resources Inc. Project, Series 2003C, 0.000%, 6/30/05# No Opt. Call N/R 351,000
4,130 New Jersey Transit Corporation, Certificates of Participation, Federal
Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC
Insured No Opt. Call AAA 4,684,700
4,000 New Jersey Transportation Trust Fund Authority, Transportation System
Bonds, Series 1999A, 5.750%, 6/15/18 No Opt. Call A+ 4,675,760
10,000 Port Authority of New York and New Jersey, Special Project Bonds, JFK
International Air Terminal LLC, Sixth Series 1997, 5.900%, 12/01/17
(Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 10,830,000
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2002:
11,330 5.750%, 6/01/32 6/12 at 100.00 BBB 11,321,616
3,165 6.125%, 6/01/42 6/12 at 100.00 BBB 3,187,187
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.7% (0.5% of Total Investments)
4,000 University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds,
Series 2004, 5.000%, 7/01/32 - FSA Insured 7/14 at 100.00 AAA 4,151,760
44
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
New York - 14.8% (10.1% of Total Investments)
$ 5,000 Long Island Power Authority, New York, Electric System General Revenue
Bonds, Series 1998A, 5.250%, 12/01/26 - FSA Insured 6/08 at 101.00 AAA $ 5,306,400
Nassau County, New York, General Obligation Improvement Bonds, Series
1999B:
4,005 5.250%, 6/01/19 (Pre-refunded to 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 4,417,195
7,005 5.250%, 6/01/21 (Pre-refunded to 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 7,743,117
2,000 New York City, New York, General Obligation Bonds, Fiscal Series 1998E,
5.250%, 8/01/14 - AMBAC Insured 2/08 at 101.00 AAA 2,125,660
14,000 New York City, New York, General Obligation Bonds, Fiscal Series 1998F,
5.375%, 8/01/19 - MBIA Insured 2/08 at 101.00 AAA 14,944,440
5,000 New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 -
FSA Insured 12/14 at 100.00 AAA 5,250,750
10,000 New York City Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded to
8/15/09) 8/09 at 101.00 AAA 11,209,300
4,600 Dormitory Authority of the State of New York, Improvement Revenue Bonds,
Mental Health Services Facilities, Series 1996E, 5.250%, 2/15/18 -
AMBAC Insured 2/07 at 102.00 AAA 4,864,684
2,170 Dormitory Authority of the State of New York, Insured Revenue Bonds,
Franciscan Health Partnership Obligated Group - Frances Shervier Home
and Hospital, Series 1997, 5.500%, 7/01/17 - RAAI Insured 7/07 at 102.00 AA 2,312,678
Dormitory Authority of the State of New York, Improvement Revenue Bonds,
Mental Health Services Facilities, Series 1996B:
4,305 5.125%, 8/15/21 (Pre-refunded to 2/15/06) - MBIA Insured 2/06 at 102.00 AAA 4,471,302
85 5.125%, 8/15/21 (Pre-refunded to 2/15/06) - MBIA Insured 2/06 at 102.00 AAA 88,312
80 5.125%, 8/15/21 - MBIA Insured 2/06 at 102.00 AAA 82,826
7,500 Dormitory Authority of the State of New York, Secured Hospital Revenue
Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%,
8/15/21 - MBIA Insured 2/08 at 101.50 AAA 7,970,550
2,000 Dormitory Authority of the State of New York, Third General Resolution
Consolidated Revenue Bonds, City University System, Series 1997-1,
5.375%, 7/01/24 (Pre-refunded to 1/01/08) - FSA Insured 1/08 at 102.00 AAA 2,168,500
7,500 New York State Urban Development Corporation, Revenue Bonds, Correctional
Facilities, Series 1995-6, 5.375%, 1/01/25 (Pre-refunded to 1/01/06) -
AMBAC Insured 1/06 at 102.00 AAA 7,784,175
8,800 New York City Sales Tax Asset Receivable Corporation, New York, Dedicated
Revenue Bonds, Local Government Assistance Corporation, Series 2004A,
5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 9,306,088
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.6% (0.4% of Total Investments)
3,000 Wake County, North Carolina, General Obligation School Bonds, Series
2001B, 5.250%, 2/01/17 (Pre-refunded to 2/01/11) 2/11 at 102.00 AAA 3,373,320
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.1% (2.8% of Total Investments)
2,300 Amherst Exempted Village School District, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 2001, 5.125%, 12/01/21 -
FGIC Insured 12/11 at 100.00 Aaa 2,474,685
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage Revenue
Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24
(Alternative Minimum Tax) 7/05 at 103.00 Aa 3,700,612
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives,
Series 2004A, 5.000%, 5/01/30 5/14 at 100.00 AA 3,786,619
13,300 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay
Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102.00 N/R 13,787,711
1,115 Warren County, Ohio, Special Assessment Bonds, Waterstone Boulevard
Project, Series 1997, 5.500%, 12/01/17 12/07 at 101.00 Aa2 1,192,203
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.4% (0.3% of Total Investments)
2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and Redevelopment
Revenue Bonds, Series 2000A, 5.500%, 6/15/20 - AMBAC Insured 6/10 at 101.00 Aaa 2,586,967
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.9% (3.4% of Total Investments)
3,480 Allegheny County Hospital Development Authority, Pennsylvania, Revenue
Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%,
11/15/22 11/10 at 102.00 B1 4,112,873
1,970 Carbon County Industrial Development Authority, Pennsylvania, Resource
Recovery Revenue Refunding Bonds, Panther Creek Partners Project,
Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) No Opt. Call BBB- 2,137,115
45
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania (continued)
$ 18,900 Philadelphia Airport System, Pennsylvania, Revenue Refunding Bonds,
Series 1998A, 5.500%, 6/15/18 (Alternative Minimum Tax) - FGIC Insured 6/08 at 102.00 AAA $ 20,180,097
3,205 Philadelphia School District, Pennsylvania, General Obligation Bonds,
Series 2002B, 5.625%, 8/01/16 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 3,667,033
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.1% (1.4% of Total Investments)
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds,
Series 2003, 4.500%, 12/01/23 No Opt. Call AA*** 12,616,625
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 3.0% (2.0% of Total Investments)
2,015 Central Falls, Rhode Island, General Obligation School Bonds, Series
1999, 6.250%, 5/15/20 - RAAI Insured 5/09 at 102.00 AA 2,244,629
3,500 Providence Redevelopment Agency, Rhode Island, Revenue Bonds, Public
Safety and Municipal Building Projects, Series 1999A, 5.750%, 4/01/29
(Pre-refunded to 4/01/10) - AMBAC Insured 4/10 at 101.00 Aaa 3,954,650
12,000 Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement
Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32 6/12 at 100.00 BBB 12,102,000
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.0% (1.4% of Total Investments)
6,400 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue
Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative Minimum Tax) - AMBAC
Insured 3/10 at 101.00 AAA 7,047,616
2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue
Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 2,526,826
1,590 Tennessee Housing Development Agency, Homeownership Program Bonds, Series
2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax) 7/10 at 101.00 AA 1,621,927
1,190 Tennessee Housing Development Agency, Homeownership Program Bonds, Series
2000-2B, 6.250%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 AA 1,195,760
------------------------------------------------------------------------------------------------------------------------------------
Texas - 15.2% (10.4% of Total Investments)
1,000 Alliance Airport Authority, Texas, Special Facilities Revenue Bonds,
American Airlines Inc., Series 1990, 7.500%, 12/01/29 (Alternative
Minimum Tax) 6/05 at 100.00 CCC 784,780
Austin, Texas, Prior Lien Airport System Revenue Bonds, Series 1995A:
1,660 6.125%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/05) -
MBIA Insured 11/05 at 102.00 AAA 1,719,943
8,340 6.125%, 11/15/25 (Alternative Minimum Tax) - MBIA Insured 11/05 at 102.00 AAA 8,637,905
2,560 Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds,
TXU Electric Company, Series 1999C, 7.700%, 3/01/32 (Alternative
Minimum Tax) (a) 4/13 at 101.00 BBB 3,053,491
4,675 Carrollton-Farmers Branch Independent School District, Dallas County,
Texas, Unlimited Tax School Building Bonds, Series 1999, 6.000%,
2/15/20 (Pre-refunded to 2/15/09) 2/09 at 100.00 AAA 5,173,355
Coppell Independent School District, Dallas County, Texas, Unlimited Tax
School Building and Refunding Bonds, Series 1999:
5,130 0.000%, 8/15/20 8/09 at 52.47 AAA 2,233,705
7,000 0.000%, 8/15/21 8/09 at 49.48 AAA 2,874,340
7,345 0.000%, 8/15/23 8/09 at 44.01 AAA 2,682,247
7,000 0.000%, 8/15/24 8/09 at 41.50 AAA 2,410,730
7,350 0.000%, 8/15/25 8/09 at 39.14 AAA 2,332,229
7,000 0.000%, 8/15/26 8/09 at 36.91 AAA 2,090,340
2,000 Dallas-Ft. Worth International Airport Facility Improvement Corporation,
Texas, Revenue Refunding Bonds, American Airlines Inc., Series 2000B,
6.050%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/05) 11/05 at 100.00 CCC 1,977,920
6,000 Dallas-Ft. Worth International Airport Facility Improvement Corporation,
Texas, Revenue Refunding Bonds, American Airlines Inc., Series 2000C,
6.150%, 5/01/29 (Alternative Minimum Tax) 11/07 at 100.00 CCC 5,554,200
(Mandatory put 11/01/07)
820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue Bonds,
Series 2001, 5.000%, 12/01/31 - AMBAC Insured 12/11 at 100.00 AAA 846,092
46
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
Harris County Health Facilities Development Corporation, Texas, Revenue
Bonds, Christus Health, Series 1999A:
$ 12,240 5.375%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA $ 13,115,527
11,180 5.375%, 7/01/29 - MBIA Insured 7/09 at 101.00 AAA 11,916,315
2,205 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue
Refunding Bonds, Series 2001A, 0.000%, 11/15/20 - MBIA Insured No Opt. Call AAA 1,070,991
2,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention
and Entertainment Project, Series 2001B, 0.000%, 9/01/30 - AMBAC
Insured No Opt. Call AAA 699,550
2,500 Jefferson County, Texas, Certificates of Obligation, Series 2000, 6.000%,
8/01/25 (Pre-refunded to 8/01/10) - FSA Insured 8/10 at 100.00 AAA 2,831,100
4,245 Laredo Independent School District, Webb County, Texas, Unlimited Tax
School Building Bonds, Series 1999, 5.250%, 8/01/24 (Pre-refunded to
8/01/09) 8/09 at 100.00 AAA 4,609,900
2,000 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, Series 2001, 5.300%,
3/15/26 (Pre-refunded to 3/15/09) - FGIC Insured 3/09 at 100.00 AAA 2,113,780
9,345 Leander Independent School District, Williamson and Travis Counties,
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/33 (WI,
settling 5/10/05) - FGIC Insured 8/15 at 37.33 AAA 2,009,549
1,500 Port Arthur, Texas, Jefferson County, General Obligation Bonds, Series
1997, 5.000%, 2/15/21 (Pre-refunded to 2/15/07) - MBIA Insured 2/07 at 100.00 AAA 1,541,445
10,000 Tarrant County Health Facilities Development Corporation, Texas, Revenue
Bonds, Texas Health Resources System, Series 1997A, 5.250%, 2/15/17 -
MBIA Insured 2/08 at 102.00 AAA 10,656,800
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.5% (0.3% of Total Investments)
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series
1999C-2, Class II:
725 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 AAA 735,491
270 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 284,602
290 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1999D,
5.850%, 7/01/21 (Alternative Minimum Tax) 7/09 at 101.00 AA 291,088
105 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1999F,
6.300%, 7/01/21 (Alternative Minimum Tax) 7/09 at 101.50 Aa2 105,494
1,580 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series
2000F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) 7/10 at 100.00 AA- 1,619,642
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.6% (0.4% of Total Investments)
3,395 Virginia Small Business Financing Authority, Industrial Development Water
Revenue Bonds, S.I.L. Clean Water, LLC Project, Series 1999, 7.250%,
11/01/24 (Alternative Minimum Tax) 11/09 at 102.00 N/R 3,405,762
------------------------------------------------------------------------------------------------------------------------------------
Washington - 11.1% (7.5% of Total Investments)
4,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear
Project 3, Series 2003A, 5.500%, 7/01/17 7/13 at 100.00 Aaa 4,413,040
Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18,
Series 1999B:
1,755 6.000%, 9/01/15 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 1,941,592
2,590 6.000%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 2,865,369
Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18,
Series 1999C:
875 6.000%, 9/01/15 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 968,030
1,260 6.000%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 1,393,963
9,760 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series 2001A,
5.625%, 1/01/21 - FSA Insured 1/11 at 101.00 AAA 10,774,747
7,490 Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-
Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 6/13 at 100.00 BBB 7,880,978
11,605 Washington, Certificates of Participation, Washington Convention and
Trade Center, Series 1999, 5.250%, 7/01/16 - MBIA Insured 7/09 at 100.00 AAA 12,416,654
3,350 Washington, General Obligation Compound Interest Bonds, Series 1999S-2,
0.000%, 1/01/18 - FSA Insured No Opt. Call AAA 1,889,601
47
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
Washington, General Obligation Compound Interest Bonds, Series 1999S-3:
$ 17,650 0.000%, 1/01/20 No Opt. Call Aa1 $ 8,914,486
18,470 0.000%, 1/01/21 No Opt. Call Aa1 8,836,417
4,800 Washington Public Power Supply System, Revenue Refunding Bonds, Nuclear
Project 3, Series 1997A, 5.250%, 7/01/16 - FSA Insured 7/07 at 102.00 AAA 5,098,992
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 6.7% (4.6% of Total Investments)
2,250 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%,
11/01/29 - FSA Insured 11/14 at 100.00 Aaa 2,366,438
3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding Bonds,
Dairyland Power Cooperative, Series 1997C, 5.550%, 2/01/15 - AMBAC
Insured 12/08 at 102.00 AAA 4,129,773
4,180 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Kenosha Hospital and Medical Center Inc., Series 1999, 5.625%, 5/15/29 5/09 at 101.00 A 4,317,856
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, FH
Healthcare Development Inc., Series 1999:
8,375 6.250%, 11/15/20 11/09 at 101.00 N/R 9,019,875
5,000 6.250%, 11/15/28 11/09 at 101.00 N/R 5,323,550
12,700 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Mercy Health System Corporation, Series 1999, 5.500%, 8/15/25 - AMBAC
Insured 8/09 at 101.00 Aaa 13,674,213
2,200 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 8/13 at 100.00 A 2,241,509
------------------------------------------------------------------------------------------------------------------------------------
$ 930,025 Total Long-Term Investments (cost $828,954,311) - 146.5% 892,855,257
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 11,680,452
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.4)% (295,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 609,535,709
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
# Non-income producing security. In June 2003, Waste Solutions
Group, Inc. (an entity formed for the benefit of Nuveen
Dividend Advantage Municipal Fund (NAD) which owns various
interests in the Bridgewater Resources Inc. project) took
possession of 45% of the Bridgewater Resources Inc. assets on
behalf of the Fund. Bridgewater Resources Inc. emerged from
bankruptcy in June 2003. NAD, via Waste Solutions Group Inc.,
has agreed to allow debt service reserve monies to be used for
capital expenses, and has also agreed to a debt service
moratorium until December 2005. Nuveen Asset Management will
continue to actively monitor the Bridgewater Resources, Inc.
project, and to cause NAD and Waste Solutions Group Inc. to
act in what it believes is in the best interests of fund
shareholders.
(WI) Security purchased on a when-issued basis.
(a) The issuer has received a preliminary adverse determination
from the Internal Revenue Service (the "IRS") regarding the
tax-exempt status of the bonds' coupon payments. The Fund will
continue to treat coupon payments as tax-exempt income until
such time that it is formally determined that the interest on
the bonds should be treated as taxable.
See accompanying notes to financial statements.
48
Nuveen Dividend Advantage Municipal Fund 2 (NXZ)
Portfolio of
Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 4.2% (2.9% of Total Investments)
$ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2001A,
5.750%, 6/01/31 6/11 at 101.00 A2 $ 19,687,145
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.6% (0.4% of Total Investments)
2,500 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport
Revenue Bonds, Series 2002B, 5.250%, 7/01/32 (Alternative Minimum Tax)
- FGIC Insured 7/12 at 100.00 AAA 2,607,450
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.5% (0.3% of Total Investments)
2,240 Arkansas Development Finance Authority, Single Family Mortgage Revenue
Bonds, GNMA Mortgage-Backed Securities Program, Series 2002C, 5.400%,
1/01/34 (Alternative Minimum Tax) 1/12 at 100.00 AAA 2,315,421
------------------------------------------------------------------------------------------------------------------------------------
California - 11.1% (7.6% of Total Investments)
6,000 California Educational Facilities Authority, Revenue Bonds, Stanford
University, Series 2001Q, 5.250%, 12/01/32 6/11 at 101.00 AAA 6,397,080
13,825 California, Department of Veterans Affairs, Home Purchase Revenue Bonds,
Series 2001A, 5.550%, 12/01/25 - AMBAC Insured 6/06 at 101.00 AAA 14,285,373
11,200 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/28 8/13 at 100.00 A 11,892,048
1,500 California Statewide Community Development Authority, Senior Lien Revenue
Bonds, East Valley Tourist Authority, Series 2003B, 9.250%, 10/01/20 10/15 at 103.00 N/R 1,658,730
6,000 California Statewide Community Development Authority, Revenue Bonds,
Kaiser Permanente System, Series 2004G, 2.300%, 4/01/34 (Mandatory put
5/01/07) (a) No Opt. Call A+ 5,876,940
5,000 Golden State Tobacco Securitization Corporation, California, Tobacco
Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 6/13 at 100.00 BBB 5,311,200
6,000 Los Angeles Regional Airports Improvement Corporation, California,
Sublease Revenue Bonds, Los Angeles International Airport, American
Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%, 12/01/24
(Alternative Minimum Tax) 12/12 at 102.00 B- 6,290,520
210 Yuba County Water Agency, California, Yuba River Development Revenue
Bonds, Pacific Gas and Electric Company, Series 1966A, 4.000%, 3/01/16 9/05 at 100.00 Baa3 209,990
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 6.1% (4.2% of Total Investments)
2,910 Colorado Educational and Cultural Facilities Authority, Charter School
Revenue Bonds, Peak-to-Peak Charter School, Series 2001, 7.500%,
8/15/21 (Pre-refunded to 8/15/11) 8/11 at 100.00 AAA 3,527,095
2,500 Colorado Educational and Cultural Facilities Authority, Revenue Bonds,
Colorado Lutheran High School Association, Series 2004A, 7.625%,
6/01/34 6/14 at 100.00 N/R 2,654,775
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series
2000B, 0.000%, 9/01/28 (Pre-refunded to 9/01/10) - MBIA Insured 9/10 at 31.42 AAA 2,603,800
1,885 Eagle County Air Terminal Corporation, Colorado, Airport Terminal Revenue
Bonds, Series 2001, 7.125%, 5/01/31 (Alternative Minimum Tax) 5/11 at 101.00 N/R 1,992,709
755 Jefferson County School District R1, Colorado, General Obligation Bonds,
Series 2004, 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 811,995
5,000 Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds,
Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured 6/11 at 102.00 AAA 5,272,850
Northwest Parkway Public Highway Authority, Colorado, Senior Lien Revenue
Bonds, Series 2001B:
22,000 0.000%, 6/15/28 - FSA Insured 6/11 at 35.65 AAA 5,991,260
17,650 0.000%, 6/15/29 - AMBAC Insured 6/11 at 33.45 AAA 4,511,340
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue
Bonds, Series 2003, 8.000%, 12/01/25 6/14 at 101.00 N/R 1,111,970
49
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.3% (0.2% of Total Investments)
$ 1,210 District of Columbia Tobacco Settlement Corporation, Tobacco Settlement
Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 5/11 at 101.00 BBB $ 1,236,523
------------------------------------------------------------------------------------------------------------------------------------
Florida - 5.0% (3.5% of Total Investments)
15,000 Jacksonville, Florida, Transportation Revenue Bonds, Series 2001, 5.250%,
10/01/29 - MBIA Insured 10/11 at 100.00 AAA 16,096,050
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International
Airport, Series 2002, 5.375%, 10/01/32 (Alternative Minimum Tax) - FGIC
Insured 10/12 at 100.00 AAA 3,161,460
4,000 Miami-Dade County Health Facility Authority, Florida, Hospital Revenue
Refunding Bonds, Miami Children's Hospital, Series 2001A, 5.125%,
8/15/26 - AMBAC Insured 8/11 at 101.00 AAA 4,210,880
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 2.2% (1.5% of Total Investments)
Honolulu Board of Water Supply, Hawaii, Water System Revenue Bonds,
Series 2001:
3,000 5.250%, 7/01/26 - FSA Insured 7/11 at 100.00 AAA 3,211,590
6,725 5.250%, 7/01/31 - FSA Insured 7/11 at 100.00 AAA 7,199,314
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 11.4% (7.8% of Total Investments)
2,500 Chicago, Illinois, General Obligation Refunding Bonds, Series 1996B,
5.125%, 1/01/25 - FGIC Insured 1/06 at 102.00 AAA 2,578,550
15,270 Chicago, Illinois, General Obligation Refunding Bonds, Series 2001A,
5.250%, 1/01/33 - MBIA Insured 1/11 at 101.00 AAA 16,209,716
3,670 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing Revenue
Bonds, Stone Terrace Apartments, Series 2001A, 5.750%, 12/20/42
(Alternative Minimum Tax) 12/11 at 100.00 A+ 3,808,983
1,755 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare International
Airport, United Air Lines Inc. Project, Series 2001A, 6.375%, 11/01/35
(Alternative Minimum Tax) (Mandatory put 5/01/13)# No Opt. Call N/R 726,149
1,770 Chicago, Illinois, FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative Minimum Tax) 4/11 at 105.00 AAA 1,835,154
3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago Charter
School Foundation, Series 2002A, 6.250%, 12/01/32 12/21 at 100.00 BBB 3,304,974
5,000 Illinois Development Finance Authority, Revenue Bonds, Illusion
Wesleyan university Series 2001, 5.500%, 9/01/32 - AMBAC
Insured 9/11 at 100.00 AAA 5,454,000
3,100 Illinois Development Finance Authority, Revenue Bonds, Midwestern
University, Series 2001B, 6.000%, 5/15/31 5/11 at 101.00 A- 3,349,364
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward Hospital
Obligated Group, Series 2001B, 5.250%, 2/15/34 - FSA Insured 2/11 at 101.00 AAA 5,255,900
3,000 Illinois Educational Facilities Authority, Student Housing Revenue Bonds,
Educational Advancement Foundation Fund, University Center Project,
Series 2002, 6.250%, 5/01/34 5/12 at 101.00 Baa2 3,102,090
2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/15/16 6/11 at 100.00 AAA 2,515,559
4,980 Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding
Bonds, McCormick Place Expansion Project, Series 1996A, 5.250%, 6/15/27
- AMBAC Insured 6/06 at 102.00 AAA 5,177,457
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.8% (3.3% of Total Investments)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31 9/11 at 100.00 A+ 2,086,620
2,500 Indiana Health Facility Financing Authority, Hospital Revenue Refunding
Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA
Insured No Opt. Call AAA 3,051,600
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series
2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,276,840
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,397,740
2,978 Indianapolis, Indiana, Special Facility Revenue Bonds, United Air Lines
Inc., Indianapolis Maintenance Center Project, Series 1995A, 6.500%,
11/15/31 (Alternative Minimum Tax)# 11/05 at 102.00 N/R 279,549
6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Madison
Center Inc., Series 1999, 5.800%, 2/15/24 2/09 at 102.00 BBB 6,161,793
50
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.2% (0.2% of Total Investments)
$ 1,000 Iowa Higher Education Loan Authority, Private College Facility Revenue
Bonds, Wartburg College, Series 2002, 5.500%, 10/01/28 - ACA Insured 10/12 at 100.00 A $ 1,055,690
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 3.9% (2.7% of Total Investments)
17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and Improvement
Bonds, Via Christi Health System Inc., Series 2001-III, 5.625%,
11/15/31 11/11 at 101.00 A+ 18,105,340
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.8% (2.6% of Total Investments)
18,060 Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement
Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 5/11 at 101.00 BBB 17,980,355
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.9% (2.7% of Total Investments)
2,875 Massachusetts Port Authority, Special Facilities Revenue Bonds, BOSFUEL
Corporation, Series 1997, 5.750%, 7/01/39 (Alternative Minimum Tax) -
MBIA Insured 7/07 at 102.00 AAA 3,058,914
15,000 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue
Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured 1/07 at 102.00 AAA 15,339,450
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 14.3% (9.8% of Total Investments)
Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series
2001A:
15,390 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 17,012,106
20,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 21,989,200
14,610 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 15,640,443
4,000 Michigan Municipal Bond Authority, Public School Academy Revenue Bonds,
Detroit Academy of Arts and Sciences Charter School, Series 2001A,
8.000%, 10/01/31 10/09 at 102.00 Ba1 4,310,600
Michigan State Hospital Finance Authority, Revenue Refunding Bonds,
Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/05 at 100.00 Ba3 2,001,500
4,000 6.500%, 8/15/18 8/05 at 100.00 Ba3 4,003,680
2,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds,
Detroit Medical Center Obligated Group, Series 1998A, 5.125%,
8/15/18 8/08 at 101.00 Ba3 1,823,940
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 3.2% (2.2% of Total Investments)
14,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, Airport
Revenue Bonds, Series 2001A, 5.250%, 1/01/32 - FGIC Insured 1/11 at 100.00 AAA 14,879,480
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 4.7% (3.3% of Total Investments)
21,000 Missouri Health and Educational Facilities Authority, Revenue Bonds, SSM
Healthcare System, Series 2001A, 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 22,190,070
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.9% (0.6% of Total Investments)
3,960 Montana Board of Housing, Single Family Program Bonds, Series 2001A-2,
5.700%, 6/01/32 (Alternative Minimum Tax) 12/10 at 100.00 AA+ 4,101,134
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 4.5% (3.1% of Total Investments)
12,275 Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%,
1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,013,955
3,500 Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%,
1/01/40 1/10 at 102.00 N/R 3,662,645
Henderson, Nevada, Healthcare Facility Revenue Bonds, Catholic Healthcare
West, Series 1998A:
1,670 5.250%, 7/01/18 (Pre-refunded to 7/01/08) 7/08 at 101.00 BBB+*** 1,788,303
2,330 5.250%, 7/01/18 7/08 at 101.00 A- 2,395,636
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.2% (1.5% of Total Investments)
8,000 New Hampshire Business Finance Authority, Pollution Control Remarketed
Revenue Refunding Bonds, Connecticut Light and Power Company, Series
1992A, 5.850%, 12/01/22 10/08 at 102.00 A3 8,377,200
1,995 New Hampshire Housing Finance Agency, Single Family Mortgage Acquisition
Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative Minimum Tax) 5/11 at 100.00 Aa2 2,003,219
51
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.9% (1.3% of Total Investments)
$ 3,995 New Jersey Economic Development Authority, Special Facilities Revenue
Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30
(Alternative Minimum Tax) 11/10 at 101.00 B $ 3,515,880
505 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 6/12 at 100.00 BBB 504,626
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement
Asset-Backed Bonds, Series 2003:
1,500 6.375%, 6/01/32 6/13 at 100.00 BBB 1,552,515
425 6.750%, 6/01/39 6/13 at 100.00 BBB 450,045
2,700 6.250%, 6/01/43 6/13 at 100.00 BBB 2,748,627
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 5.2% (3.5% of Total Investments)
New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds,
Presbyterian Healthcare Services, Series 2001A:
12,000 5.500%, 8/01/25 8/11 at 101.00 Aa3 12,708,240
10,800 5.500%, 8/01/30 8/11 at 101.00 Aa3 11,396,484
------------------------------------------------------------------------------------------------------------------------------------
New York - 6.1% (4.2% of Total Investments)
6,000 Long Island Power Authority, New York, Electric System General Revenue
Bonds, Series 2001L, 5.375%, 5/01/33 5/11 at 100.00 A- 6,312,900
12,000 New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 2001C, 5.125%, 6/15/33 6/11 at 101.00 AA+ 12,522,960
5,000 New York City Industrial Development Agency, New York, Special Facilities
Revenue Bonds, JFK Airport - American Airlines Inc., Series 2002B,
8.500%, 8/01/28 (Alternative Minimum Tax) 8/12 at 101.00 CCC 4,487,600
4,900 Dormitory Authority of the State of New York, Revenue Bonds, Mount Sinai
NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19 7/10 at 101.00 Ba1 5,218,157
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.7% (1.2% of Total Investments)
2,950 North Carolina Capital Facilities Financing Agency, Revenue Bonds,
Johnson and Wales University, Series 2003A, 5.000%, 4/01/33 - XLCA
Insured 4/13 at 100.00 AAA 3,066,614
4,500 North Carolina Eastern Municipal Power Agency, Power System Revenue
Refunding Bonds, Series 1999B, 5.600%, 1/01/15 1/09 at 102.00 BBB 4,798,035
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.7% (0.5% of Total Investments)
3,005 North Dakota Housing Finance Agency, Home Mortgage Finance Program
Refunding Bonds, Series 2001A, 5.550%, 1/01/32 (Alternative Minimum
Tax) 7/10 at 100.00 Aa2 3,072,552
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.4% (0.3% of Total Investments)
1,845 Columbus City School District, Franklin County, Ohio, General Obligation
Bonds, Series 2003, 5.000%, 12/01/28 - FGIC Insured 6/13 at 100.00 AAA 1,936,881
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.8% (0.6% of Total Investments)
Oklahoma Development Finance Authority, Revenue Refunding Bonds,
Hillcrest Healthcare System, Series 1999A:
2,655 5.125%, 8/15/10 (Pre-refunded to 8/15/09) 8/09 at 101.00 AAA 2,873,799
1,000 5.200%, 8/15/11 (Pre-refunded to 8/15/09) 8/09 at 101.00 AAA 1,085,390
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 3.8% (2.6% of Total Investments)
8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue Refunding
Bonds, Legacy Health System, Series 2001, 5.250%, 5/01/21 5/11 at 101.00 AA 8,508,480
9,000 Oregon Department of Administrative Services, Certificates of
Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured 5/11 at 101.00 AAA 9,374,850
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.7% (2.5% of Total Investments)
5,000 Allegheny County Hospital Development Authority, Pennsylvania, Revenue
Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%,
11/15/30 11/10 at 102.00 B1 5,909,300
2,225 Carbon County Industrial Development Authority, Pennsylvania, Resource
Recovery Revenue Refunding Bonds, Panther Creek Partners Project,
Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) No Opt. Call BBB- 2,413,747
52
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania (continued)
$ 8,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds,
UPMC Health System, Series 2001A, 6.000%, 1/15/31 1/11 at 101.00 A+ $ 8,803,200
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.1% (0.1% of Total Investments)
630 South Carolina Public Service Authority, Revenue Refunding Bonds, Santee
Cooper Electric System, Series 1996A, 5.750%, 1/01/22 - MBIA Insured 1/06 at 102.00 AAA 654,110
------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 1.1% (0.7% of Total Investments)
4,820 South Dakota Housing Development Authority, Remarketed Homeownership
Mortgage Bonds, Series 1997E-4, 5.450%, 5/01/18 (Alternative Minimum
Tax) 5/09 at 102.00 AAA 5,027,983
------------------------------------------------------------------------------------------------------------------------------------
Texas - 24.1% (16.7% of Total Investments)
7,500 Austin, Texas, Electric Utility System Revenue Refunding Bonds, Series
2001, 5.000%, 11/15/30 - FSA Insured (PLG) 11/10 at 100.00 AAA 7,715,400
Dallas-Fort Worth International Airport Public Facility Corporation,
Texas, Airport Hotel Revenue Bonds, Series 2001:
15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,766,500
1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,835,190
6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health
System, Series 2004A, 7.125%, 9/01/34 9/14 at 100.00 N/R 6,441,540
10,000 Gulf Coast Industrial Development Authority, Texas, Solid Waste Disposal
Revenue Bonds, Citgo Petroleum Corporation Project, Series 1998,
8.000%, 4/01/28 (Alternative Minimum Tax) 4/12 at 100.00 Ba3 11,419,400
3,000 Harris County Health Facilities Development Corporation, Texas, Revenue
Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 3,214,590
40,000 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue
Refunding Bonds, Series 2001A, 0.000%, 11/15/40 - MBIA Insured 11/30 at 54.04 AAA 5,795,600
30,980 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue
Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured 11/11 at 100.00 AAA 32,239,337
Hays Consolidated Independent School District, Hays County, Texas,
General Obligation School Building Bonds, Series 2001:
10,715 0.000%, 8/15/25 (Pre-refunded to 8/15/11) 8/11 at 43.18 AAA 3,679,745
12,940 0.000%, 8/15/26 (Pre-refunded to 8/15/11) 8/11 at 40.60 AAA 4,179,102
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention
and Entertainment Project, Series 2001B:
5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call AAA 1,399,100
5,000 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,323,700
5,000 Metro Health Facilities Development Corporation, Texas, Hospital Revenue
Bonds, Wilson N. Jones Memorial Hospital, Series 2001, 7.250%, 1/01/31 1/11 at 100.00 B1 5,098,600
10,500 Texas, General Obligation Bonds, Water Financial Assistance Program,
Series 2001, 5.250%, 8/01/35 8/11 at 100.00 Aa1 11,038,335
2,000 Tom Green County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Shannon Health System Project, Series 2001,
6.750%, 5/15/21 5/11 at 101.00 Baa3 2,156,480
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.2% (0.1% of Total Investments)
5,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue Bonds,
Route 895 Connector Toll Road, Series 1998B, 0.000%, 8/15/33 8/08 at 23.55 BB 917,050
------------------------------------------------------------------------------------------------------------------------------------
Washington - 6.0% (4.1% of Total Investments)
Seattle, Washington, Municipal Light and Power Revenue Refunding
and Improvement Bonds, Series 2001:
4,820 5.500%, 3/01/19 - FSA Insured 3/11 at 100.00 AAA 5,295,204
7,250 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 7,531,663
3,500 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series .
2001A, 5.750%, 1/01/18 - FSA Insured 1/11 at 101.00 AAA 3,916,535
1,010 Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-
Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 6/13 at 100.00 BBB 1,062,722
53
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 2,100 Washington, Certificates of Participation, Washington Convention and
Trade Center, Series 1999, 5.125%, 7/01/13 - MBIA Insured 7/09 at 100.00 AAA $ 2,247,714
7,500 Washington State Healthcare Facilities Authority, Revenue Bonds, Sisters
of Providence Health System, Series 2001A, 5.250%, 10/01/21 -
MBIA Insured 10/11 at 100.00 AAA 8,030,475
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1% (0.8% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds,
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 10/11 at 100.00 BBB 5,128,750
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.7% (0.4% of Total Investments)
1,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26 5/12 at 100.00 N/R 1,046,900
2,100 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 8/13 at 100.00 A 2,139,625
------------------------------------------------------------------------------------------------------------------------------------
$ 747,473 Total Long-Term Investments (cost $629,869,916) - 145.4% 679,992,638
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 9,522,909
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.5)% (222,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 467,515,547
======================================================================================================================
Forward Swap Contracts outstanding at April 30, 2005: Swap Unrealized
Effective Termination Appreciation
Notional Amount Date(2) Date (Depreciation)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated January 11, 2005, to pay semi-annually
the notional amount multiplied by 5.235% (annualized) and receive
quarterly the notional amount multiplied by the three-month USD-LIBOR
(United States Dollar-London Inter-Bank Offered Rates). $17,700,000 8/17/05 8/17/25 $(583,127)
Agreement with Morgan Stanley dated January 31, 2005, to pay
semi-annually the notional amount multiplied by 5.058% (annualized)
and receive quarterly the notional amount multiplied by the
three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered
Rates). $12,500,000 8/16/05 8/16/35 (57,172)
------------------------------------------------------------------------------------------------------------------------------------
$(640,299)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each
forward swap contract.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
# On December 9, 2002, UAL Corporation, the holding company of
United Air Lines, Inc., filed for federal bankruptcy
protection. The Adviser determined that it was likely United
would not remain current on their interest payment obligations
with respect to these bonds and thus has stopped accruing
interest.
(PLG) Portion of security, with an aggregate market value of
$421,775, has been pledged to collateralize the net payment
obligations under forward swap contracts.
(a) The issuer has received a preliminary adverse determination
from the Internal Revenue Service (the "IRS") regarding the
tax-exempt status of the bonds' coupon payments. The Fund will
continue to treat coupon payments as tax-exempt income until
such time that it is formally determined that the interest on
the bonds should be treated as taxable.
See accompanying notes to financial statements.
54
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
Portfolio of
Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 0.9% (0.6% of Total Investments)
$ 5,655 Alabama State Port Authority, Revenue Bonds, State Docks Department
Facilities, Series 2001, 5.250%, 10/01/26 (Alternative Minimum Tax) -
AMBAC Insured 10/11 at 100.00 AAA $ 5,869,890
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.7% (0.5% of Total Investments)
4,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, Series
1998A, 5.250%, 7/01/14 (Alternative Minimum Tax) - AMBAC Insured 7/08 at 100.00 AAA 4,160,640
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.9% (0.6% of Total Investments)
Sebastian County Health Facilities Board, Arkansas, Hospital Revenue
Improvement Bonds, Sparks Regional Medical Center, Series 2001A:
1,805 5.500%, 11/01/13 11/11 at 101.00 Baa1 1,932,198
1,900 5.500%, 11/01/14 11/11 at 101.00 Baa1 2,016,413
1,745 5.250%, 11/01/21 11/11 at 101.00 Baa1 1,776,061
------------------------------------------------------------------------------------------------------------------------------------
California - 10.2% (6.9% of Total Investments)
5,000 California Infrastructure Economic Development Bank, Revenue Bonds,
Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 8/11 at 102.00 A+ 5,327,100
18,850 California, General Obligation Veterans Welfare Bonds, Series 2001BZ,
5.350%, 12/01/21 (Alternative Minimum Tax) - MBIA Insured 6/07 at 101.00 AAA 19,312,391
1,500 California Statewide Community Development Authority, Senior Lien
Revenue Bonds, East Valley Tourist Authority, Series 2003B, 9.250%, 10/15 at 103.00 N/R 1,658,730
10/01/20 (a)
5,000 California Statewide Community Development Authority, Revenue Bonds,
Kaiser Permanente System, Series 2004G, 2.300%, 4/01/34 (Mandatory put
5/01/07) No Opt. Call A+ 4,897,450
Los Angeles Regional Airports Improvement Corporation,
California, Lease Revenue Refunding Bonds, LAXFUEL Corporation
at Los Angeles International Airport, Series 2001:
13,955 5.750%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 15,367,665
5,000 5.375%, 1/01/21 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 5,250,300
1,500 5.250%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 1,554,945
10,000 5.500%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 10,450,000
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 7.7% (5.2% of Total Investments)
2,250 Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited
Tax General Obligation Bonds, Series 2002, 7.375%, 12/01/32 12/12 at 100.00 N/R 2,375,235
1,775 Colorado Educational and Cultural Facilities Authority, Charter School
Revenue Bonds, Weld County School District 6 - Frontier Academy, Series
2001, 7.375%, 6/01/31 6/11 at 100.00 Ba1 1,839,326
3,250 Colorado Educational and Cultural Facilities Authority, Charter School
Revenue Bonds, Montessori Peaks Building Foundation, Series 2002A,
8.000%, 5/01/32 5/12 at 102.00 N/R 3,400,183
1,700 Colorado Educational and Cultural Facilities Authority, Charter School
Revenue Bonds, Belle Creek Education Center, Series 2002A, 7.625%,
3/15/32 3/12 at 100.00 N/R 1,724,837
3,380 Colorado Housing Finance Authority, Multifamily Project Bonds, Class I,
Series 2001A-1, 5.500%, 4/01/31 (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,502,694
10,100 Colorado Springs, Colorado, Utility System Revenue Refunding and
Improvement Bonds, Series 1997A, 5.375%, 11/15/26 11/07 at 100.00 AA 10,561,065
2,000 Denver City and County, Colorado, Airport System Revenue Refunding Bonds,
Series 2001A, 5.500%, 11/15/16 (Alternative Minimum Tax) - FGIC Insured 11/11 at 100.00 AAA 2,170,240
Denver City and County, Colorado, Airport System Revenue Bonds, Series
1996A:
19,150 5.750%, 11/15/16 - MBIA Insured 11/06 at 101.00 AAA 20,132,012
1,105 5.500%, 11/15/25 - MBIA Insured 11/06 at 101.00 AAA 1,150,692
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue 6/14 at 101.00 N/R 1,111,970
Bonds, Series 2003, 8.000%, 12/01/25
55
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Delaware - 0.5% (0.3% of Total Investments)
$ 2,835 Delaware State Housing Authority, Multifamily Mortgage Revenue Bonds,
Series 2001A, 5.400%, 7/01/24 7/12 at 100.00 Aa3 $ 2,846,652
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.0% (0.7% of Total Investments)
6,000 District of Columbia, Revenue Bonds, Catholic University of America,
Series 1999, 5.625%, 10/01/29 - AMBAC Insured 10/09 at 101.00 AAA 6,546,240
------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.0% (1.3% of Total Investments)
2,000 Dade County, Florida, Water and Sewerage System Revenue Bonds, Series
1997, 5.375%, 10/01/16 - FGIC Insured 10/07 at 102.00 AAA 2,148,820
2,230 Florida State Board of Education, Full Faith and Credit Public Education
Capital Outlay Refunding Bonds, Series 1995D, 4.750%, 6/01/22
(Pre-refunded to 6/01/05) 6/05 at 101.00 AAA 2,256,760
Orange County Housing Finance Authority, Florida, Multifamily Housing
Revenue Bonds, Oak Glen Apartments, Series 2001G:
1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA 1,140,570
2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,260,060
4,175 Pace Property Finance Authority Inc., Florida, Utility System Improvement
and Revenue Refunding Bonds, Series 1997, 5.250%, 9/01/17 - AMBAC
Insured 9/07 at 102.00 AAA 4,459,902
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.3% (1.6% of Total Investments)
5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 5.625%,
1/01/30 (Alternative Minimum Tax) - FGIC Insured 1/10 at 101.00 AAA 5,297,250
2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series
2001, 7.900%, 12/01/24 12/11 at 101.00 N/R 2,946,996
3,740 Gainesville and Hall County Hospital Authority, Georgia, Revenue
Anticipation Certificates, Northeast Georgia Health Services Inc.,
Series 2001, 5.500%, 5/15/31 5/11 at 100.00 A- 3,868,132
2,000 Henry County Water and Sewerage Authority, Georgia, Revenue Bonds, Series
2000, 5.625%, 2/01/30 (Pre-refunded to 2/01/10) - FGIC Insured 2/10 at 101.00 AAA 2,242,180
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.9% (0.6% of Total Investments)
5,125 Hawaii, Highway Revenue Bonds, Series 2001, 5.375%, 7/01/21 (Pre-refunded
to 7/01/11) - FSA Insured 7/11 at 100.00 AAA 5,721,806
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 16.6% (11.2% of Total Investments)
3,000 Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21
Program, Series 2001A, 5.500%, 1/01/31 - FGIC Insured 1/11 at 100.00 AAA 3,249,900
2,500 Chicago, Illinois, General Obligation Refunding Bonds, Series 1996B,
5.125%, 1/01/25 - FGIC Insured 1/06 at 102.00 AAA 2,578,550
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%,
1/01/19 (Alternative Minimum Tax) - FSA Insured 1/11 at 101.00 AAA 8,976,744
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds,
O'Hare International Airport, Series 2001A, 5.375%, 1/01/32
(Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,183,590
1,750 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 1/01/28
- FGIC Insured 7/08 at 102.00 AAA 1,859,008
10,800 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 5.375%, 1/01/30
(Pre-refunded to 1/01/09) - FGIC Insured 1/09 at 101.00 AAA 11,795,760
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds,
Series 2001A:
2,220 5.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 2,528,580
8,610 5.500%, 1/01/26 (Pre-refunded to 1/01/11) - AMBAC Insured 1/11 at 100.00 AAA 9,627,013
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 5.000%,
11/01/26 (Pre-refunded to 11/01/11) - AMBAC Insured 11/11 at 100.00 AAA 10,983,100
1,100 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical
Center, Series 2000, 6.500%, 5/15/30 5/10 at 101.00 Baa2 1,181,873
15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola University
Health System, Series 2001A, 6.125%, 7/01/31 7/11 at 100.00 Baa1 15,812,250
9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement
Communities Inc., Series 2001, 5.875%, 12/01/31 12/11 at 101.00 BBB+ 9,335,700
56
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 2,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding
Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 6/15/29
- FGIC Insured No Opt. Call AAA $ 2,359,740
16,900 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Expansion Project, Series 1999A, 5.250%, 12/15/28 -
FGIC Insured 12/09 at 101.00 AAA 18,055,791
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 5.1% (3.5% of Total Investments)
Clark-Pleasant Community School Building Corporation, Indiana, First
Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 - AMBAC Insured 1/12 at 100.00 AAA 1,328,907
1,000 5.000%, 1/15/26 - AMBAC Insured 1/12 at 100.00 AAA 1,037,240
Evansville Vanderburgh Public Library Lease Corporation, Indiana, First
Mortgage Bonds, Series 2001:
2,000 5.750%, 7/15/18 (Pre-refunded to 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,289,220
2,750 5.125%, 1/15/24 (Pre-refunded to 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 3,045,075
3,435 Gary, Indiana, GNMA/FHA Mortgage Revenue Bonds, Windsor Square Project,
Series 2001A, 5.375%, 10/20/41 (Alternative Minimum Tax) 11/11 at 102.00 AAA 3,516,856
1,250 Hamilton Southeastern Cumberland Campus School Building Corporation,
Indiana, First Mortgage Bonds, Series 2001, 5.125%, 1/15/23 - AMBAC
Insured 1/12 at 100.00 AAA 1,336,538
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, Community
Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 (WI, settling
5/04/05) - AMBAC Insured 5/15 at 100.00 AAA 2,902,648
9,500 Indiana Educational Facilities Authority, Revenue Bonds, Butler
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured 2/11 at 100.00 AAA 10,301,705
2,650 Indianapolis, Indiana, Special Facility Revenue Bonds, United Airlines
Inc., Indianapolis Maintenance Center Project, Series 1995A, 6.500%,
11/15/31 (Alternative Minimum Tax) # 11/05 at 102.00 N/R 248,790
3,500 University of Southern Indiana, Student Fee Bonds, Series 2001H, 5.000%,
10/01/21 - AMBAC Insured 10/11 at 100.00 Aaa 3,720,850
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds,
Series 2001:
1,150 5.625%, 7/15/18 - AMBAC Insured 1/13 at 101.00 AAA 1,297,671
1,090 5.500%, 7/15/22 - AMBAC Insured 1/13 at 101.00 AAA 1,219,230
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 5.2% (3.5% of Total Investments)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical
Center, Series 2001, 5.250%, 5/15/31 - FSA Insured 5/11 at 100.00 AAA 2,092,560
Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue
Bonds, Series 2001B:
28,000 5.300%, 6/01/25 6/11 at 101.00 BBB 26,588,800
3,950 5.600%, 6/01/35 6/11 at 101.00 BBB 3,759,847
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 3.1% (2.1% of Total Investments)
18,500 Louisville and Jefferson County Metropolitan Sewer District, Kentucky,
Sewer and Drainage System Revenue Bonds, Series 2001A, 5.125%, 5/15/27
- MBIA Insured 11/11 at 101.00 AAA 19,567,265
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.2% (2.1% of Total Investments)
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement
Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 5/11 at 101.00 BBB 19,802,285
------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.1% (0.8% of Total Investments)
Maine State Housing Authority, Mortgage Purchase Bonds, Series 2001B:
4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,792,003
2,120 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 2,186,759
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 2.1% (1.4% of Total Investments)
Maryland Community Development Administration, Multifamily Housing Insured
Mortgage Loans, Series 2001B:
715 5.250%, 5/15/21 (Alternative Minimum Tax) 5/11 at 100.00 Aa2 741,748
1,570 5.250%, 7/01/21 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 1,629,739
10,600 Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run
Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 9/05 at 102.00 N/R 10,835,002
57
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.9% (0.6% of Total Investments)
$ 5,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air
Lines Inc., Series 2001A, 5.500%, 1/01/18 (Alternative Minimum Tax) -
AMBAC Insured 1/11 at 101.00 AAA $ 5,292,500
355 Massachusetts Housing Finance Agency, Single Family Housing Revenue
Bonds, Series 71, 5.650%, 6/01/31 (Alternative Minimum Tax) - FSA
Insured 6/09 at 100.00 AAA 356,328
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 8.9% (6.0% of Total Investments)
15,000 Detroit City School District, Wayne County, Michigan, Unlimited Tax
School Building and Site Improvement Bonds, Series 2001A, 6.000%,
5/01/29 - FSA Insured No Opt. Call AAA 18,859,950
11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum
Health, Series 2001A, 5.500%, 1/15/31 7/11 at 101.00 AA 11,694,430
3,485 Michigan State Hospital Finance Authority, Hospital Revenue Refunding
Bonds, Sisters of Mercy Health Corporation, Series 1993P, 5.375%,
8/15/14 - MBIA Insured No Opt. Call AAA 3,852,842
Michigan State Hospital Finance Authority, Hospital Revenue Refunding
Bonds, Sparrow Obligated Group, Series 2001:
1,400 5.500%, 11/15/21 11/11 at 101.00 A+ 1,487,304
2,500 5.625%, 11/15/31 11/11 at 101.00 A+ 2,642,975
1,355 Michigan State Hospital Finance Authority, Hospital Revenue Bonds,
Detroit Medical Center Obligated Group, Series 1998A, 5.250%,
8/15/23 8/08 at 101.00 Ba3 1,211,099
12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds,
William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA
Insured 11/11 at 100.00 AAA 13,288,938
2,395 Ypsilanti Community Utilities Authority, Washtenaw County, Michigan,
General Obligation Bonds, Sanitary Sewerage System 3, Series 2001,
5.100%, 5/01/31 - FGIC Insured 5/11 at 100.00 AAA 2,551,777
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.4% (0.3% of Total Investments)
2,360 Dakota County Community Development Agency, Minnesota, GNMA
Collateralized Multifamily Housing Revenue Bonds, Rose Apartments
Project, Series 2001, 6.350%, 10/20/37 (Alternative Minimum Tax) 10/11 at 105.00 Aaa 2,513,872
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.4% (0.9% of Total Investments)
2,155 Mississippi Business Finance Corporation, GNMA Collateralized Retirement
Facility Mortgage Revenue Refunding Bonds, Aldersgate Retirement
Community Inc. Project, Series 1999A, 5.450%, 5/20/34 5/09 at 103.00 AAA 2,283,438
6,420 Mississippi, Highway Revenue Bonds, Series 1999, 5.250%, 6/01/05 No Opt. Call AAA 6,435,344
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.5% (1.7% of Total Investments)
2,000 Fenton, Missouri, Tax Increment Refunding and Improvement Revenue Bonds,
Gravois Bluffs Redevelopment Project, Series 2002, 6.125%, 10/01/21 10/12 at 100.00 N/R 2,062,340
Missouri Development Finance Board, Cultural Facilities Revenue Bonds,
Nelson Gallery Foundation, Series 2001A:
3,335 5.250%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 3,656,761
3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,812,597
3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 4,013,546
2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,210,911
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.8% (0.6% of Total Investments)
5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater
Mining Company Project, Series 2000, 8.000%, 7/01/20 (Alternative
Minimum Tax) 7/10 at 101.00 Ba3 5,267,000
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.0% (0.7% of Total Investments)
Nebraska Investment Finance Authority, Single Family Housing Revenue
Bonds, Series 2001D:
2,570 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,660,079
3,460 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,552,174
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 7.5% (5.1% of Total Investments)
35,000 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, Series
2000, 5.500%, 7/01/30 - MBIA Insured 7/10 at 100.00 AAA 37,938,950
4,000 Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%,
1/01/40 1/10 at 102.00 N/R 4,185,880
58
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Nevada (continued)
$ 470 Nevada Housing Division, Single Family Mortgage Senior Bonds, Series
1998A-1, 5.300%, 4/01/18 (Alternative Minimum Tax) 4/08 at 101.50 Aaa $ 484,307
4,290 University of Nevada, Revenue Bonds, Community College System, Series
2001A, 5.250%, 7/01/26 - FGIC Insured 1/12 at 100.00 AAA 4,619,300
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.4% (0.2% of Total Investments)
2,000 New Hampshire Health and Education Authority, Hospital Revenue Bonds,
Concord Hospital, Series 2001, 5.500%, 10/01/21 - FSA Insured 10/11 at 101.00 Aaa 2,207,540
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.4% (1.6% of Total Investments)
10,000 New Jersey Economic Development Authority, Water Facilities Revenue
Bonds, American Water Company, Series 2002A, 5.250%, 11/01/32
(Alternative Minimum Tax) - AMBAC Insured 11/12 at 101.00 Aaa 10,530,200
4,125 New Jersey Transit Corporation, Certificates of Participation, Federal
Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC
Insured No Opt. Call AAA 4,679,029
------------------------------------------------------------------------------------------------------------------------------------
New York - 5.3% (3.6% of Total Investments)
1,780 East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds,
Gates Senior Housing Inc. Project, Series 2001, 5.300%, 4/20/31 10/11 at 101.00 AAA 1,849,758
5,350 Metropolitan Transportation Authority, New York, Dedicated Tax Fund
Bonds, Series 2001A, 5.000%, 11/15/31 (Pre-refunded to 11/15/11) - FGIC
Insured 11/11 at 100.00 AAA 5,884,625
4,155 Monroe County Airport Authority, New York, Revenue Refunding Bonds,
Greater Rochester International Airport, Series 1999, 5.750%, 1/01/13
(Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,655,844
2,500 New York City, New York, General Obligation Bonds, Fiscal Series 2002G,
5.625%, 8/01/20 - MBIA Insured 8/12 at 100.00 AAA 2,791,825
New York City Municipal Water Finance Authority, New York, Water and
Sewerage System Revenue Bonds, Fiscal Series 2001A:
8,610 5.500%, 6/15/33 - MBIA Insured 6/10 at 101.00 AAA 9,377,323
5,710 5.500%, 6/15/33 - FGIC Insured 6/10 at 101.00 AAA 6,218,875
2,000 New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed Bonds,
Series 2003B-1C, 5.500%, 6/01/16 6/11 at 100.00 AA- 2,210,080
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.3% (0.2% of Total Investments)
1,800 North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds,
Series 2003A, 5.500%, 1/01/13 No Opt. Call A3 2,007,594
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.6% (1.8% of Total Investments)
4,325 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program
Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19
(Alternative Minimum Tax) - FSA Insured 3/08 at 101.50 AAA 4,454,145
7,800 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay
Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102.00 N/R 8,086,026
Portage County, Ohio, General Obligation Bonds, Series 2001:
1,870 5.000%, 12/01/21 - FGIC Insured 12/11 at 100.00 AAA 1,992,915
1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AAA 1,885,725
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.4% (0.3% of Total Investments)
2,500 Oklahoma Development Finance Authority, Revenue Refunding Bonds,
Hillcrest Healthcare System, Series 1999A, 5.625%, 8/15/29 (Pre-
refunded to 8/15/09) 8/09 at 101.00 AAA 2,755,725
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.5% (1.7% of Total Investments)
4,700 Oregon Health, Housing, Educational and Cultural Facilities Authority,
Revenue Bonds, PeaceHealth Project, Series 2001, 5.250%, 11/15/21 -
AMBAC Insured 11/11 at 101.00 AAA 5,051,842
10,000 Oregon Housing and Community Services Department, Multifamily Housing
Revenue Bonds, Series 2000A, 6.050%, 7/01/42 (Alternative Minimum Tax) 7/10 at 100.00 Aaa 10,392,200
59
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.9% (1.4% of Total Investments)
Allegheny County Hospital Development Authority, Pennsylvania, Revenue
Bonds, West Penn Allegheny Health System, Series 2000B:
$ 2,000 9.250%, 11/15/22 11/10 at 102.00 B1 $ 2,363,720
2,000 9.250%, 11/15/30 11/10 at 102.00 B1 2,363,720
3,500 Pennsylvania Economic Development Financing Authority, Senior Lien
Resource Recovery Revenue Bonds, Northampton Generating Project, Series
3,205 Philadelphia School District, Pennsylvania, General Obligation Bonds,
Series 2002B, 5.625%, 8/01/16 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 3,667,033
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.6% (1.1% of Total Investments)
2,185 Greenville County, South Carolina, Special Source Revenue Bonds, Road
Improvement Project, Series 2001, 5.500%, 4/01/21 - AMBAC Insured 4/11 at 101.00 AAA 2,403,238
6,850 South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series
2001A, 5.500%, 10/01/22 (Pre-refunded to 10/01/11) - AMBAC Insured 10/11 at 100.00 Aaa 7,713,443
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.4% (1.0% of Total Investments)
5,210 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds,
Series 2001A, 5.500%, 3/01/14 (Alternative Minimum Tax) - FSA Insured 3/11 at 100.00 AAA 5,664,520
1,530 Tennessee Housing Development Agency, Homeownership Program Bonds, Series
1998-2, 5.350%, 7/01/23 (Alternative Minimum Tax) 1/09 at 101.00 AA 1,578,486
1,640 Tennessee Housing Development Agency, Homeownership Program Bonds, Series
2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax) 7/11 at 100.00 AA 1,694,645
------------------------------------------------------------------------------------------------------------------------------------
Texas - 18.1% (12.2% of Total Investments)
1,125 Brushy Creek Municipal Utility District, Williamson County, Texas,
Combination Unlimited Tax and Revenue Refunding Bonds, Series 2001,
5.125%, 6/01/26 - FSA Insured 6/09 at 100.00 Aaa 1,182,656
3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding
and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 (Alternative
Minimum Tax) - FGIC Insured 11/11 at 100.00 AAA 4,068,603
5,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health
System, Series 2004A, 7.000%, 9/01/25 9/14 at 100.00 N/R 5,386,350
Collins and Denton Counties, Frisco, Texas, General Obligation Bonds,
Series 2001:
1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AAA 2,014,878
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AAA 2,117,220
4,040 Harris County, Texas, Tax and Revenue Certificates of Obligation, Series
2001, 5.000%, 8/15/27 8/11 at 100.00 AA+ 4,188,632
7,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series
1998B, 5.250%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured 7/08 at 101.00 AAA 7,400,050
Houston, Texas, Subordinate Lien Airport System Revenue Refunding Bonds,
Series 2001A:
2,525 5.500%, 7/01/13 (Alternative Minimum Tax) - FGIC Insured 1/12 at 100.00 AAA 2,751,669
2,905 5.500%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured 1/12 at 100.00 AAA 3,166,682
6,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding
Bonds, Series 2001B, 5.500%, 12/01/29 - MBIA Insured No Opt. Call AAA 7,000,260
Jefferson County Health Facilities Development Corporation,
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist
Hospital of Southeast Texas, Series 2001:
8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 AAA 9,004,475
8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 AAA 9,222,415
10,700 Laredo Independent School District, Webb County, Texas, General
Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25 8/11 at 100.00 AAA 11,213,921
2,500 Matagorda County Navigation District 1, Texas, Collateralized Revenue
Refunding Bonds, Houston Light and Power Company, Series 1997, 5.125%,
11/01/28 (Alternative Minimum Tax) - AMBAC Insured No Opt. Call AAA 2,714,550
1,540 Medina Valley Independent School District, Medina County, Texas, General
Obligation Bonds, Series 2001, 5.250%, 2/15/26 2/11 at 100.00 Aaa 1,613,581
5,430 Mineral Wells Independent School District, Pale Pinto and Parker Counties,
Texas, Unlimited School Tax Building and Refunding Bonds, Series 1998,
4.750%, 2/15/22 2/08 at 100.00 Aaa 5,520,681
60
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 3,000 North Central Texas Health Facilities Development Corporation, Revenue
Bonds, Texas Health Resources System, Series 1997B, 5.375%, 2/15/26 -
MBIA Insured 2/08 at 102.00 AAA $ 3,187,890
3,045 Port of Houston Authority, Harris County, Texas, General Obligation Port
Improvement Bonds, Series 2001B, 5.500%, 10/01/17 (Alternative Minimum
Tax) - FGIC Insured 10/11 at 100.00 AAA 3,314,817
11,380 Texas Department of Housing and Community Affairs, Residential Mortgage
Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) 7/11 at 100.00 AAA 11,681,456
15,700 Texas Water Development Board, Senior Lien State Revolving Fund Revenue
Bonds, Series 1996B, 5.125%, 7/15/18 1/07 at 100.00 AAA 16,191,881
------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.0% (0.7% of Total Investments)
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
2,170 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 2,223,903
670 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 692,398
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
2,695 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 2,723,513
680 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 AA- 685,250
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.3% (0.9% of Total Investments)
7,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue Bonds,
Route 895 Connector Toll Road, Series 1998B, 0.000%, 8/15/13 8/08 at 77.58 BB 4,457,880
3,660 Virginia Housing Development Authority, Commonwealth Mortgage Bonds,
Series 2001J-1, 5.200%, 7/01/19 - MBIA Insured 7/11 at 100.00 AAA 3,703,444
------------------------------------------------------------------------------------------------------------------------------------
Washington - 15.9% (10.8% of Total Investments)
Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity
Village Project, Series 2001A:
1,000 5.500%, 12/01/27 - MBIA Insured 12/11 at 100.00 Aaa 1,089,720
2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,195,800
2,090 Public Utility District 1, Benton County, Washington, Electric Revenue
Refunding Bonds, Series 2001A, 5.625%, 11/01/15 - FSA Insured 11/11 at 100.00 AAA 2,341,490
1,500 Grays Harbor County Public Utility District 1, Washington, Electric
System Revenue Bonds, Series 2001, 5.125%, 1/01/22 - AMBAC Insured 1/11 at 100.00 AAA 1,597,335
2,475 Klickitat County Public Utility District 1, Washington, Electric Revenue
Bonds, Series 2001B, 5.000%, 12/01/26 - AMBAC Insured 12/11 at 100.00 AAA 2,567,639
12,955 Port of Seattle, Washington, Passenger Facility Charge Revenue Bonds,
Series 1998B, 5.300%, 12/01/16 (Alternative Minimum Tax) - AMBAC
Insured 12/08 at 101.00 AAA 13,721,936
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535 5.625%, 4/01/18 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 2,774,152
16,000 5.100%, 4/01/24 (Alternative Minimum Tax) - FGIC Insured 10/08 at 100.00 AAA 16,298,720
5,680 Seattle, Washington, Municipal Light and Power Revenue Refunding and
Improvement Bonds, Series 2001, 5.500%, 3/01/18 - FSA Insured 3/11 at 100.00 AAA 6,239,991
4,530 Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series
2001, 5.250%, 12/01/21 - AMBAC Insured 12/11 at 100.00 AAA 4,890,362
2,250 Washington, Certificates of Participation, Washington Convention and
Trade Center, Series 1999, 5.250%, 7/01/14 - MBIA Insured 7/09 at 100.00 AAA 2,417,333
Washington State Healthcare Facilities Authority, Revenue Bonds, Group
Health Cooperative of Puget Sound, Series 2001:
3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 AAA 3,268,929
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,165,719
3,720 Washington State Healthcare Facilities Authority, Revenue Bonds,
Children's Hospital and Regional Medical Center, Series 2001, 5.375%,
10/01/18 - AMBAC Insured 10/11 at 100.00 Aaa 4,049,890
Washington State Healthcare Facilities Authority, Revenue Bonds, Good
Samaritan Hospital, Series 2001:
5,480 5.500%, 10/01/21 - RAAI Insured 10/11 at 101.00 AA 5,868,642
25,435 5.625%, 10/01/31 - RAAI Insured 10/11 at 101.00 AA 27,323,549
61
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of Investments April 30, 2005 (Unaudited)
Principal Optional Call Market
Amount (000) Description(1) Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 5.0% (3.4% of Total Investments)
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001:
$ 3,705 5.375%, 1/01/20 - FGIC Insured 1/12 at 100.00 Aaa $ 4,029,929
1,850 5.000%, 1/01/21 - FGIC Insured 1/12 at 100.00 Aaa 1,960,630
1,735 Evansville Community School District, Dane, Green and Rock Counties,
Wisconsin, General Obligation Refunding Bonds, Series 2001, 5.500%,
4/01/20 (Pre-refunded to 4/01/11) - FGIC Insured 4/11 at 100.00 AAA 1,945,213
12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds,
Dairyland Power Cooperative, Series 1997B, 5.550%, 2/01/15 - AMBAC
Insured 12/08 at 102.00 AAA 13,278,143
3,180 Wisconsin, Clean Water Revenue Bonds, Series 1999-1, 5.500%, 6/01/17 (Pre
-refunded to 6/01/09) 6/09 at 100.00 AA+*** 3,483,436
4,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Froedtert and Community Health Obligated Group, Series 2001, 5.375%,
10/01/30 10/11 at 101.00 AA- 4,161,040
2,500 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Marshfield Clinic, Series 2001B, 6.000%, 2/15/25 2/12 at 100.00 BBB+ 2,641,418
------------------------------------------------------------------------------------------------------------------------------------
$ 872,140 Total Long-Term Investments (cost $872,443,293) - 147.0% 920,747,081
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.4% (0.3% of Total Investments)
1,000 Clark County School District, Nevada, General Obligation Bonds, Variable
Rate Demand Obligations, Series 2001B, 2.890%, 6/15/21 - FSA Insured+ A-1+ 1,000,000
1,500 Illinois Health Facilities Authority, Revenue Bonds, Resurrection
Healthcare System, Variable Rate Demand Obligations, Series 1999A,
3.040%, 5/15/29 - FSA Insured+ A-1+ 1,500,000
------------------------------------------------------------------------------------------------------------------------------------
$ 2,500 Total Short-Term Investments (cost $2,500,000) 2,500,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $ 874,943,293) - 147.4% 923,247,081
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 15,186,685
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.8)% (312,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 626,433,766
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
# On December 9, 2002, UAL Corporation, the holding company of
United Air Lines, Inc., filed for federal bankruptcy
protection. The Adviser determined that it was likely United
would not remain current on their interest payment obligations
with respect to these bonds and thus has stopped accruing
interest.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified market
index.
(a) The issuer has received a preliminary adverse determination
from the Internal Revenue Service (the "IRS") regarding the
tax-exempt status of the bonds' coupon payments. The Fund will
continue to treat coupon payments as tax-exempt income until
such time that it is formally determined that the interest on
the bonds should be treated as taxable.
See accompanying notes to financial statements.
62
Statement of
Assets and Liabilities April 30, 2005 (Unaudited)
Performance Municipal Market
Plus Advantage Opportunity
(NPP) (NMA) (NMO)
---------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost
$1,308,309,053, $952,183,067,
$996,786,413, $828,954,311,
$629,869,916 and $874,943,293,
respectively) $ 1,409,492,524 $ 1,030,136,685 $ 1,068,018,542
Cash -- -- 571,082
Receivables:
Interest 22,181,960 18,505,913 17,340,470
Investments sold 1,235,481 3,613,476 2,000,466
Other assets 88,872 55,307 57,657
---------------------------------------------------------------------------------------------------
Total assets 1,432,998,837 1,052,311,381 1,087,988,217
---------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 2,719,859 3,703,695 --
Payable for investments purchased 2,034,620 1,882,831 4,592,870
Forward swaps, at value -- -- --
Accrued expenses:
Management fees 708,827 525,898 542,424
Other 304,127 204,866 231,362
Preferred share dividends payable 132,276 97,608 119,035
---------------------------------------------------------------------------------------------------
Total liabilities 5,899,709 6,414,898 5,485,691
---------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 479,000,000 358,000,000 380,000,000
---------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 948,099,128 $ 687,896,483 $ 702,502,526
===================================================================================================
Common shares outstanding 59,914,073 43,025,594 45,540,872
===================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 15.82 $ 15.99 $ 15.43
===================================================================================================
NET ASSETS APPLICABLE TO
COMMON SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 599,141 $ 430,256 $ 455,409
Paid-in surplus 836,423,631 601,030,545 635,502,550
Undistributed net investment income 9,288,051 7,977,521 5,603,138
Accumulated net realized gain (loss)
from investments and forward swaps 604,834 504,543 (10,290,700)
Net unrealized appreciation of
investments and forward swaps 101,183,471 77,953,618 71,232,129
---------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 948,099,128 $ 687,896,483 $ 702,502,526
===================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
===================================================================================================
Dividend Dividend Dividend
Advantage Advantage 2 Advantage 3
(NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------
Assets
Investments, at market value (cost
$1,308,309,053, $952,183,067,
$996,786,413, $828,954,311,
$629,869,916 and $874,943,293,
respectively) $ 892,855,257 $ 679,992,638 $ 923,247,081
Cash -- -- --
Receivables:
Interest 13,872,157 11,581,931 15,532,987
Investments sold 1,631,743 387,090 6,532,018
Other assets 49,819 20,471 23,027
---------------------------------------------------------------------------------------------------
Total assets 908,408,976 691,982,130 945,335,113
---------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 1,382,338 1,453,479 3,356,498
Payable for investments purchased 1,988,803 -- 3,074,230
Forward swaps, at value -- 640,299 --
Accrued expenses:
Management fees 270,933 180,411 242,242
Other 154,085 115,113 156,510
Preferred share dividends payable 77,108 77,281 71,867
---------------------------------------------------------------------------------------------------
Total liabilities 3,873,267 2,466,583 6,901,347
---------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 295,000,000 222,000,000 312,000,000
---------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 609,535,709 $ 467,515,547 $ 626,433,766
===================================================================================================
Common shares outstanding 39,267,491 29,282,000 40,310,119
===================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 15.52 $ 15.97 $ 15.54
===================================================================================================
NET ASSETS APPLICABLE TO
COMMON SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 392,675 $ 292,820 $ 403,101
Paid-in surplus 558,011,161 416,097,281 572,804,348
Undistributed net investment income 5,405,546 5,895,104 5,614,102
Accumulated net realized gain (loss)
from investments and forward swaps (18,174,619) (4,252,081) (691,573)
Net unrealized appreciation of
investments and forward swaps 63,900,946 49,482,423 48,303,788
---------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 609,535,709 $ 467,515,547 $ 626,433,766
===================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
===================================================================================================
See accompanying notes to financial statements.
63
Statement of
Operations Six Months Ended April 30, 2005 (Unaudited)
PERFORMANCE MUNICIPAL
PLUS ADVANTAGE
(NPP) (NMA)
-----------------------------------------------------------------------------
INVESTMENT INCOME $ 36,198,185 $ 27,523,455
-----------------------------------------------------------------------------
EXPENSES
Management fees 4,297,221 3,185,468
Preferred shares - auction fees 593,829 443,822
Preferred shares - dividend
disbursing agent fees 24,795 24,795
Shareholders' servicing agent fees
and expenses 89,218 55,681
Custodian's fees and expenses 144,982 105,420
Directors'/Trustees' fees and expenses 12,262 8,800
Professional fees 30,450 38,137
Shareholders' reports - printing and
mailing expenses 62,168 47,681
Stock exchange listing fees 11,668 10,898
Investor relations expense 99,595 72,485
Other expenses 42,194 35,508
-----------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 5,408,382 4,028,695
Custodian fee credit (37,861) (33,276)
Expense reimbursement -- --
-----------------------------------------------------------------------------
Net expenses 5,370,521 3,995,419
-----------------------------------------------------------------------------
Net investment income 30,827,664 23,528,036
-----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 605,352 556,527
Net realized gain (loss) from
forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments (328,384) 218,133
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
-----------------------------------------------------------------------------
Net realized and unrealized gain (loss) 276,968 774,660
-----------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (4,044,311) (2,964,868)
From accumulated net realized gains
from investments (69,318) (47,587)
-----------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (4,113,629) (3,012,455)
-----------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations $ 26,991,003 $ 21,290,241
=============================================================================
MARKET DIVIDEND DIVIDEND DIVIDEND
OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 27,642,832 $ 23,315,850 $ 18,121,497 $ 23,483,672
-----------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 3,290,771 2,766,907 2,104,400 2,850,339
Preferred shares - auction fees 471,096 365,719 275,219 386,795
Preferred shares - dividend
disbursing agent fees 19,836 14,877 14,877 14,877
Shareholders' servicing agent fees
and expenses 60,737 7,828 3,310 4,520
Custodian's fees and expenses 110,612 98,294 72,237 94,395
Directors'/Trustees' fees and expenses 9,105 7,769 5,694 7,955
Professional fees 32,434 213,561 24,397 21,427
Shareholders' reports - printing and
mailing expenses 46,777 41,189 29,612 40,784
Stock exchange listing fees 8,869 7,684 1,237 1,705
Investor relations expense 75,773 63,081 46,590 63,348
Other expenses 34,889 26,748 21,650 23,084
-----------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 4,160,899 3,613,657 2,599,223 3,509,229
Custodian fee credit (28,866) (33,912) (20,137) (20,074)
Expense reimbursement -- (1,121,369) (1,017,005) (1,387,034)
-----------------------------------------------------------------------------------------------------------------
Net expenses 4,132,033 2,458,376 1,562,081 2,102,121
-----------------------------------------------------------------------------------------------------------------
Net investment income 23,510,799 20,857,474 16,559,416 21,381,551
-----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investment 3,963,749 2,694,107 (57,416) (9,148)
Net realized gain (loss) from
forward swaps -- -- (3,952,217) --
Change in net unrealized appreciation
(depreciation) of investments (5,327,913) (4,981,863) 11,500,810 7,947,673
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- 2,892,109 --
-----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (1,364,164) (2,287,756) 10,383,286 7,938,525
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,090,602) (2,453,586) (1,869,346) (2,534,712)
From accumulated net realized gains
from investments -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (3,090,602) (2,453,586) (1,869,346) (2,534,712)
-----------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations $ 19,056,033 $ 16,116,132 $ 25,073,356 $ 26,785,364
=================================================================================================================
See accompanying notes to financial statements.
64
Statement of
Changes in Net Assets (Unaudited)
PERFORMANCE PLUS (NPP)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/05 10/31/04
-----------------------------------------------------------------------------
OPERATIONS
Net investment income $ 30,827,664 $ 62,636,215
Net realized gain (loss) from investments 605,352 6,618,657
Net realized gain (loss) from
forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments (328,384) 18,902,259
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
Distributions to Preferred shareholders:
From net investment income (4,044,311) (4,452,180)
From accumulated net realized gains
from investments (69,318) --
-----------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 26,991,003 83,704,951
-----------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (28,980,418) (58,236,491)
From accumulated net realized gains
from investments (904,764) --
-----------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (29,885,182) (58,236,491)
-----------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- --
-----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,894,179) 25,468,460
Net assets applicable to Common
shares at the beginning of period 950,993,307 925,524,847
-----------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 948,099,128 $ 950,993,307
=============================================================================
Undistributed net investment income at
the end of period $ 9,288,051 $ 11,485,116
=============================================================================
MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO)
--------------------------------- ----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/05 10/31/04 4/30/05 10/31/04
-----------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 23,528,036 $ 47,557,854 $ 23,510,799 $ 47,042,202
Net realized gain (loss) from investments 556,527 687,024 3,963,749 (1,201,262)
Net realized gain (loss) from
forward swaps -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 218,133 17,410,047 (5,327,913) 17,743,454
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
Distributions to Preferred shareholders:
From net investment income (2,964,868) (3,307,419) (3,090,602) (3,607,167)
From accumulated net realized gains
from investments (47,587) (42,016) -- --
-----------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 21,290,241 62,305,490 19,056,033 59,977,227
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (21,943,056) (44,397,396) (21,313,132) (43,172,754)
From accumulated net realized gains
from investments (641,084) (599,790) -- --
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (22,584,140) (44,997,186) (21,313,132) (43,172,754)
-----------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- 734,804 -- --
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,293,899) 18,043,108 (2,257,099) 16,804,473
Net assets applicable to Common
shares at the beginning of period 689,190,382 671,147,274 704,759,625 687,955,152
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 687,896,483 $ 689,190,382 $ 702,502,526 $ 704,759,625
=================================================================================================================
Undistributed net investment income at
the end of period $ 7,977,521 $ 9,357,409 $ 5,603,138 $ 6,496,073
=================================================================================================================
See accompanying notes to financial statements.
65
Statement of
Changes in Net Assets (Unaudited) (continued)
DIVIDEND ADVANTAGE (NAD)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/05 10/31/04
-----------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,857,474 $ 42,956,260
Net realized gain (loss) from investments 2,694,107 1,200,358
Net realized gain (loss) from
forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments (4,981,863) 16,389,360
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
Distributions to Preferred shareholders:
From net investment income (2,453,586) (2,680,807)
From accumulated net realized gains
from investments -- --
-----------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 16,116,132 57,865,171
-----------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (19,908,619) (40,278,262)
From accumulated net realized gains
from investments -- --
-----------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (19,908,619) (40,278,262)
-----------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- 475,057
-----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,792,487) 18,061,966
Net assets applicable to Common
shares at the beginning of period 613,328,196 595,266,230
-----------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 609,535,709 $ 613,328,196
=============================================================================
Undistributed net investment income at
the end of period $ 5,405,546 $ 6,910,277
=============================================================================
DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
---------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/05 10/31/04 4/30/05 10/31/04
-----------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 16,559,416 $ 32,923,303 $ 21,381,551 $ 42,967,136
Net realized gain (loss) from investments (57,416) (470,534) (9,148) 530,482
Net realized gain (loss) from
forward swaps (3,952,217) -- -- --
Change in net unrealized appreciation
(depreciation) of investments 11,500,810 18,712,940 7,947,673 23,226,246
Change in net unrealized appreciation
(depreciation) of forward swaps 2,892,109 (3,532,408) -- --
Distributions to Preferred shareholders:
From net investment income (1,869,346) (2,061,411) (2,534,712) (2,880,639)
From accumulated net realized gains
from investments -- (52,111) -- --
-----------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 25,073,356 45,519,779 26,785,364 63,843,225
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (15,109,512) (30,219,035) (19,469,788) (38,879,112)
From accumulated net realized gains
from investments -- (850,299) -- --
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (15,109,512) (31,069,334) (19,469,788) (38,879,112)
-----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 9,963,844 14,450,445 7,315,576 24,964,113
Net assets applicable to Common
shares at the beginning of period 457,551,703 443,101,258 619,118,190 594,154,077
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 467,515,547 $ 457,551,703 $ 626,433,766 $ 619,118,190
=================================================================================================================
Undistributed net investment income at
the end of period $ 5,895,104 $ 6,314,546 $ 5,614,102 $ 6,237,051
=================================================================================================================
See accompanying notes to financial statements.
66
Notes to
Financial Statements (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Performance Plus Municipal Fund, Inc.
(NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market
Opportunity Fund, Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD),
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) and Nuveen Dividend Advantage
Municipal Fund 3 (NZF). Performance Plus (NPP), Municipal Advantage (NMA),
Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York
Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF)
are traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. Prices of
derivative investments are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. If the pricing service is
unable to supply a price for a derivative investment each Fund may use a market
quote provided by a major broker/dealer in such investments. If it is determined
that market prices for an investment are unavailable or inappropriate, the Board
of Directors/Trustees of the Funds, or its designee, may establish a fair value
for the investment. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Securities purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any securities so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At April 30, 2005,
Performance Plus (NPP), Municipal Advantage (NMA), Market Opportunity (NMO),
Dividend Advantage (NAD) and Dividend Advantage 3 (NZF) had outstanding
when-issued purchase commitments of $2,034,620, $1,882,831, $4,592,870,
$1,988,803 and $2,848,468, respectively. There were no such outstanding purchase
commitments in Dividend Advantage 2 (NXZ).
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
67
Notes to
Financial Statements (Unaudited) (continued)
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate on each Series is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable weekly at the end of each rate period. The number
of Preferred shares outstanding, by Series and in total, for each Fund is as
follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 4,000 3,000 4,000 4,000 3,000 --
Series T 4,000 3,000 4,000 4,000 3,000 --
Series W 4,000 3,000 3,200 -- -- 4,160
Series TH 3,160 2,320 -- 3,800 -- 4,160
Series F 4,000 3,000 4,000 -- 2,880 4,160
-----------------------------------------------------------------------------------------------------------------
Total 19,160 14,320 15,200 11,800 8,880 12,480
=================================================================================================================
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract. The Funds may close out a contract prior to the effective date at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash. Each Fund intends, but is
not obligated to, terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. To minimize such credit risk, all counterparties are required to
pledge collateral daily (based on the daily valuation of each swap) on behalf of
each Fund with a value approximately equal to the amount of any unrealized gain
above a pre-determined threshold. Reciprocally, when any of the Funds have an
unrealized loss on a swap contract, the Funds have instructed the custodian to
pledge assets of the Funds as collateral with a value approximately equal to the
amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the swap valuations
fluctuate, either up or down, by at least the pre-determined threshold amount.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, its Officers and Director/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
68
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
MUNICIPAL MARKET
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO)
--------------------------- --------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/05 10/31/04 4/30/05 10/31/04 4/30/05 10/31/04
----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- 45,261 -- --
==================================================================================================================================
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
4/30/05 10/31/04 4/30/05 10/31/04 4/30/05 10/31/04
----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 29,786 -- -- -- --
==================================================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended April 30, 2005, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
----------------------------------------------------------------------------------------------------------------------------------
Purchases $34,098,198 $58,832,574 $40,872,419 $51,391,980 $ 8,652,452 $ 6,985,456
Sales and maturities 29,282,400 55,516,620 39,931,662 49,256,493 12,191,240 11,390,000
==================================================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At April 30, 2005, the cost of investments was as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
----------------------------------------------------------------------------------------------------------------------------------
Cost of investments $1,307,694,314 $951,139,162 $996,262,929 $828,164,536 $629,462,648 $874,810,806
==================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2005, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $102,953,528 $83,563,829 $87,453,254 $71,005,257 $54,162,711 $50,876,061
Depreciation (1,155,318) (4,566,306) (15,697,641) (6,314,536) (3,632,721) (2,439,786)
-----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $101,798,210 $78,997,523 $71,755,613 $64,690,721 $50,529,990 $48,436,275
===================================================================================================================================
69
Notes to
Financial Statements (Unaudited) (continued)
The tax components of undistributed net investment income and net realized gains
at October 31, 2004, the Funds' last fiscal 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 * $15,580,820 $12,161,503 $9,702,437 $9,380,605 $8,540,409 $9,414,844
Undistributed net ordinary income ** 238,651 -- -- 138,779 22,426 40,697
Undistributed net long-term
capital gains 973,564 686,687 -- -- -- --
==================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2004, paid on November 1, 2004.
** 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 fiscal year ended October 31,
2004, the Funds' last fiscal year end, 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 $62,627,198 $47,642,154 $46,733,618 $42,925,745 $32,249,670 $41,658,844
Distributions from net ordinary income ** -- 11,261 -- -- 11 --
Distributions from net long-term
capital gains -- 641,806 -- -- 902,410 --
==================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2004, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MARKET DIVIDEND DIVIDEND DIVIDEND
OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMO) (NAD) (NXZ) (NZF)
----------------------------------------------------------------------------------------------------------------------------------
Expiration year:
2007 $ -- $ 1,724,693 $ -- $ --
2008 -- 14,462,547 -- --
2009 -- -- -- --
2010 1,622,794 -- -- 690,125
2011 11,657,833 4,594,300 -- --
2012 973,824 -- 246,691 --
----------------------------------------------------------------------------------------------------------------------------------
Total $14,254,451 $20,781,540 $246,691 $690,125
==================================================================================================================================
70
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Directors/Trustees, effective August 1, 2004, a
complex-wide management fee structure was adopted for all funds sponsored by the
Adviser, or its predecessor and its affiliates. This fee structure separates
each fund's management fee into two components - a complex-level component,
based on the aggregate amount of all fund assets managed by the Adviser, and a
specific fund-level component, based only on the amount of assets within each
individual fund. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser. Under no
circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As of May 31, 2005,
the complex-level fee rate was .1905%; that is, the funds' effective management
fees were reduced by approximately .0095%.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
----------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================================================
DIVIDEND ADVANTAGE (NAD)
DIVIDEND ADVANTAGE 2 (NXZ)
DIVIDEND ADVANTAGE 3 (NZF)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
----------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
----------------------------------------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
71
Notes to
Financial Statements (Unaudited) (continued)
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
----------------------------------------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================================================
DIVIDEND ADVANTAGE (NAD)
DIVIDEND ADVANTAGE 2 (NXZ)
DIVIDEND ADVANTAGE 3 (NZF)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
----------------------------------------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================================================
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 their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
72
For the first ten years of Dividend Advantage's (NAD) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion
of its fees and expenses beyond July 31, 2009.
For the first ten years of Dividend Advantage 2's (NXZ) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any
portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Dividend Advantage 3's (NZF) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any
portion of its fees and expenses beyond September 30, 2011.
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. The settlement of transactions (C) and (D) above would likely
be deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which would result in
the automatic termination of each agreement under the 1940 Act. The Board of
Directors/Trustees will consider approval of new ongoing investment management
agreements for each Fund and the submission of those agreements for approval by
each respective Fund's shareholders. Those agreements, if approved by a Fund's
shareholders, would take effect upon such approval. There can be no assurance
that these approvals will be obtained.
73
Notes to
Financial Statements (Unaudited) (continued)
7. Subsequent Event - Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2005, to shareholders of record on
May 15, 2005, as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
----------------------------------------------------------------------------------------------------------------------------------
Dividend per share $.0780 $.0830 $.0760 $.0825 $.0860 $.0805
==================================================================================================================================
74
Financial Highlights (Unaudited)
75
Financial
Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
----------------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) $15.87 $ .51 $ .01 $(.07) $ -- $ .45
2004 15.45 1.04 .42 (.07) -- 1.39
2003 15.38 1.07 .05 (.07) -- 1.05
2002 15.57 1.09 (.22) (.10) (.01) .76
2001 14.36 1.10 1.17 (.23) -- 2.04
2000 13.69 1.12 .69 (.29) -- 1.52
MUNICIPAL ADVANTAGE (NMA)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 16.02 .55 .01 (.07) -- .49
2004 15.62 1.11 .41 (.08) -- 1.44
2003 15.41 1.13 .25 (.07) (.01) 1.30
2002 15.65 1.15 (.22) (.10) (.03) .80
2001 14.61 1.16 1.10 (.24) (.03) 1.99
2000 13.98 1.24 .63 (.33) -- 1.54
MARKET OPPORTUNITY (NMO)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 15.48 .52 (.03) (.07) -- .42
2004 15.11 1.03 .37 (.08) -- 1.32
2003 14.60 1.03 .50 (.08) -- 1.45
2002 15.24 1.11 (.70) (.11) (.01) .29
2001 14.45 1.16 .80 (.26) (.01) 1.69
2000 14.11 1.24 .38 (.34) -- 1.28
DIVIDEND ADVANTAGE (NAD)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 15.62 .53 (.06) (.06) -- .41
2004 15.17 1.09 .46 (.07) -- 1.48
2003 14.94 1.10 .19 (.07) -- 1.22
2002 14.84 1.13 .01 (.10) -- 1.04
2001 13.59 1.16 1.21 (.24) -- 2.13
2000 12.78 1.15 .84 (.31) -- 1.68
DIVIDEND ADVANTAGE 2 (NXZ)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 15.63 .57 .35 (.06) -- .86
2004 15.13 1.12 .51 (.07) -- 1.56
2003 14.89 1.16 .17 (.07) -- 1.26
2002 15.07 1.15 (.32) (.10) -- .73
2001(a) 14.33 .52 .88 (.09) -- 1.31
DIVIDEND ADVANTAGE 3 (NZF)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 15.36 .53 .19 (.06) -- .66
2004 14.74 1.06 .59 (.07) -- 1.58
2003 14.56 1.07 .10 (.07) -- 1.10
2002 14.47 1.03 .16 (.10) -- 1.09
2001(b) 14.33 .03 .14 -- -- .17
============================================================================================================================
Less Distributions
-----------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) $ (.48) $ (.02) $ (.50) $ -- $ 15.82 $ 14.2500
2004 (.97) -- (.97) -- 15.87 14.9500
2003 (.95) (.03) (.98) -- 15.45 14.6400
2002 (.90) (.04) (.94) (.01) 15.38 14.2800
2001 (.83) -- (.83) -- 15.57 14.5800
2000 (.84) -- (.84) (.01) 14.36 12.1875
MUNICIPAL ADVANTAGE (NMA)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) (.51) (.01) (.52) -- 15.99 15.2000
2004 (1.03) (.01) (1.04) -- 16.02 15.7000
2003 (1.02) (.07) (1.09) -- 15.62 15.4400
2002 (.94) (.10) (1.04) -- 15.41 14.6600
2001 (.87) (.08) (.95) -- 15.65 14.8500
2000 (.91) -- (.91) -- 14.61 12.8750
MARKET OPPORTUNITY (NMO)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) (.47) -- (.47) -- 15.43 13.9300
2004 (.95) -- (.95) -- 15.48 14.4400
2003 (.94) -- (.94) -- 15.11 14.2900
2002 (.91) (.02) (.93) -- 14.60 13.8000
2001 (.87) (.03) (.90) -- 15.24 14.6500
2000 (.94) -- (.94) -- 14.45 13.0000
DIVIDEND ADVANTAGE (NAD)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) (.51) -- (.51) -- 15.52 14.5400
2004 (1.03) -- (1.03) -- 15.62 15.3100
2003 (.99) -- (.99) -- 15.17 15.1200
2002 (.94) -- (.94) -- 14.94 14.5000
2001 (.88) -- (.88) -- 14.84 15.1400
2000 (.86) -- (.86) (.01) 13.59 12.6250
DIVIDEND ADVANTAGE 2 (NXZ)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) (.52) -- (.52) -- 15.97 15.2900
2004 (1.03) (.03) (1.06) -- 15.63 15.3800
2003 (1.01) (.01) (1.02) -- 15.13 14.8500
2002 (.91) (.01) (.92) .01 14.89 13.9100
2001(a) (.45) -- (.45) (.12) 15.07 14.9600
DIVIDEND ADVANTAGE 3 (NZF)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) (.48) -- (.48) -- 15.54 14.3200
2004 (.96) -- (.96) -- 15.36 14.5000
2003 (.93) -- (.93) .01 14.74 13.8000
2002 (.91) -- (.91) (.09) 14.56 13.5300
2001(b) -- -- -- (.03) 14.47 15.0700
=========================================================================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income
and reinvested capital gains distributions, if any, at the average price
paid per share at the time of reinvestment. Total Return on Common Share
Net Asset Value is the combination of changes in Common Share net asset
value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. Total returns are
not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares, where applicable.
(a) For the period March 27, 2001 (commencement of operations) through October
31, 2001.
(b) For the period September 25, 2001 (commencement of operations) through
October 31, 2001.
(c) For the six months ended April 30, 2005.
76
Total Returns
-----------------------------
Based
on
Based Common
on Share Net
Market Asset
Value** Value**
-------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-------------------------------------------------------------------
Year Ended 10/31:
2005(c) (1.34)% 2.88%
2004 9.10 9.30
2003 9.58 6.97
2002 4.51 5.03
2001 26.96 14.51
2000 .90 11.47
MUNICIPAL ADVANTAGE (NMA)
-------------------------------------------------------------------
Year Ended 10/31:
2005(c) .18 3.14
2004 8.82 9.57
2003 13.17 8.71
2002 5.89 5.39
2001 23.35 13.97
2000 1.46 11.48
MARKET OPPORTUNITY (NMO)
-------------------------------------------------------------------
Year Ended 10/31:
2005(c) (.30) 2.75
2004 7.97 9.00
2003 10.62 10.24
2002 .49 2.03
2001 20.03 11.93
2000 2.97 9.41
DIVIDEND ADVANTAGE (NAD)
-------------------------------------------------------------------
Year Ended 10/31:
2005(c) (1.69) 2.65
2004 8.37 10.06
2003 11.41 8.41
2002 2.01 7.26
2001 27.35 16.03
2000 (.79) 13.61
DIVIDEND ADVANTAGE 2 (NXZ)
-------------------------------------------------------------------
Year Ended 10/31:
2005(c) 2.81 5.56
2004 11.16 10.67
2003 14.39 8.67
2002 (.81) 5.16
2001(a) 2.75 8.39
DIVIDEND ADVANTAGE 3 (NZF)
-------------------------------------------------------------------
Year Ended 10/31:
2005(c) 2.14 4.39
2004 12.45 11.10
2003 9.04 7.82
2002 (4.26) 7.20
2001(b) .47 .98
===================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Before Credit/Refund After Credit/Refund***
-------------------------- -----------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
----------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) $948,099 1.15%* 6.57%* 1.15%* 6.58%* 2%
2004 950,993 1.17 6.69 1.17 6.70 11
2003 925,525 1.18 6.89 1.18 6.90 10
2002 921,376 1.18 7.11 1.17 7.12 11
2001 932,937 1.15 7.29 1.14 7.30 14
2000 860,556 1.17 8.09 1.16 8.10 25
MUNICIPAL ADVANTAGE (NMA)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 687,896 1.18* 6.90* 1.17* 6.91* 5
2004 689,190 1.19 7.00 1.18 7.00 4
2003 671,147 1.21 7.27 1.20 7.27 7
2002 662,270 1.22 7.55 1.22 7.55 17
2001 672,673 1.23 7.60 1.22 7.61 18
2000 628,099 1.23 8.77 1.23 8.77 39
MARKET OPPORTUNITY (NMO)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 702,503 1.20* 6.76* 1.19* 6.76* 4
2004 704,760 1.21 6.75 1.19 6.77 4
2003 687,955 1.25 6.94 1.25 6.94 9
2002 664,914 1.24 7.50 1.24 7.51 13
2001 694,025 1.23 7.73 1.23 7.74 11
2000 658,070 1.25 8.76 1.23 8.77 52
DIVIDEND ADVANTAGE (NAD)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 609,536 1.16* 6.55* .78* 6.93* 6
2004 613,328 1.14 6.69 .70 7.12 7
2003 595,266 1.35 6.78 .89 7.24 3
2002 586,045 1.25 7.24 .80 7.70 7
2001 581,089 1.26 7.56 .78 8.04 12
2000 531,571 1.22 8.34 .73 8.83 37
DIVIDEND ADVANTAGE 2 (NXZ)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 467,516 1.14* 6.78* .68* 7.23* 1
2004 457,552 1.14 6.87 .69 7.32 3
2003 443,101 1.17 7.20 .71 7.66 11
2002 435,907 1.17 7.32 .70 7.79 9
2001(a) 441,308 1.13* 5.56* .63* 6.06* 5
DIVIDEND ADVANTAGE 3 (NZF)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005(c) 626,434 1.14* 6.49* .68* 6.95* 1
2004 619,118 1.15 6.64 .69 7.10 3
2003 594,154 1.17 6.80 .71 7.26 3
2002 586,799 1.17 6.78 .70 7.25 7
2001(b) 583,100 .72* 2.05* .42* 2.36* 1
======================================================================================================================
Preferred Shares at End of Period
-------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-----------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-----------------------------------------------------------------------
Year Ended 10/31: $479,000 $25,000 &74,483
2005(c) 479,000 25,000 74,634
2004 479,000 25,000 73,305
2003 479,000 25,000 73,089
2002 444,000 25,000 77,530
2001 444,000 25,000 73,455
2000
MUNICIPAL ADVANTAGE (NMA)
-----------------------------------------------------------------------
Year Ended 10/31: 358,000 25,000 73,037
2005(c) 358,000 25,000 73,128
2004 358,000 25,000 71,868
2003 358,000 25,000 71,248
2002 358,000 25,000 71,974
2001 358,000 25,000 68,862
2000
MARKET OPPORTUNITY (NMO)
-----------------------------------------------------------------------
Year Ended 10/31: 380,000 25,000 71,217
2005(c) 380,000 25,000 71,366
2004 380,000 25,000 70,260
2003 380,000 25,000 68,744
2002 380,000 25,000 70,660
2001 380,000 25,000 68,294
2000
DIVIDEND ADVANTAGE (NAD)
-----------------------------------------------------------------------
Year Ended 10/31: 295,000 25,000 76,656
2005(c) 295,000 25,000 76,977
2004 295,000 25,000 75,446
2003 295,000 25,000 74,665
2002 295,000 25,000 74,245
2001 295,000 25,000 70,048
2000
DIVIDEND ADVANTAGE 2 (NXZ)
-----------------------------------------------------------------------
Year Ended 10/31: 222,000 25,000 77,648
2005(c) 222,000 25,000 76,526
2004 222,000 25,000 74,899
2003 222,000 25,000 74,089
2002 222,000 25,000 74,697
2001(a)
DIVIDEND ADVANTAGE 3 (NZF)
-----------------------------------------------------------------------
Year Ended 10/31: 312,000 25,000 75,195
2005(c) 312,000 25,000 74,609
2004 312,000 25,000 72,608
2003 312,000 25,000 72,019
2002 -- -- --
2001(b)
=======================================================================
See accompanying notes to financial statements.
77
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 EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
78
Other Useful
Information
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2004, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
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.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
79
[GRAPHIC OMITTED]
Learn more
about Nuveen Funds at
www.nuveen.com/etf
Nuveen Investments:
SERVING Investors
For GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $115 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
[LOGO]
NUVEEN
Investments
ESA-B-0405D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Dividend Advantage Municipal Fund 3
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: July 8, 2005
-------------------------------------------------------------------
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, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.