-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V6Kttp9zjPTyw6djjBBKaqOiddpCp8Ij5xCu83k0yB6KlSWEMBGSVzGRFlch8QkU RDWmBHAZ2J0Z0Beu3tzQdg== 0000891804-03-001204.txt : 20030529 0000891804-03-001204.hdr.sgml : 20030529 20030529100554 ACCESSION NUMBER: 0000891804-03-001204 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030529 EFFECTIVENESS DATE: 20030529 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND CENTRAL INDEX KEY: 0001074769 IRS NUMBER: 364270661 STATE OF INCORPORATION: MA FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09135 FILM NUMBER: 03722553 BUSINESS ADDRESS: STREET 1: C/O JOHN NUVEEN & CO INC STREET 2: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 8002578787 MAIL ADDRESS: STREET 1: JOHN NUVEEN & CO INC STREET 2: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 N-30D 1 nv29085.txt ESA-A-0303D SEMIANNUAL REPORT March 31, 2003 Nuveen Municipal Closed-End Exchange-Traded Funds NEW YORK NNY NNP NAN NXK Photo of: 2 women with graduation cap and gown. Photo of: Woman and girl looking at photo album. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments FASTER INFORMATION RECEIVE YOUR NUVEEN FUND REPORT ELECTRONICALLY By registering for electronic delivery, you will receive an email as soon as your Nuveen Fund information is available. Click on the link and you will be taken directly to the report. Your Fund report can be viewed and saved on your computer. Your report will arrive faster via email than by traditional mail. Registering is easy and only takes a few minutes (see instructions at right). SOME COMMON CONCERNS: WILL MY EMAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your email address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving you reports electronically, it's a simple process to go back to regular mail delivery. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM 2 Refer to the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your email address (e.g. yourID@providerID.com), and a personal, 4-digit PIN number of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation email within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on Enrollment Today. 3 You'll be taken to a screen that asks for your Social Security number and email address. Fill in this information, then click Enroll. 4 You should get a confirmation email within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "I'D ALSO LIKE TO DIRECT YOUR ATTENTION TO THE INSIDE FRONT COVER OF THIS REPORT, WHICH EXPLAINS THE QUICK AND EASY PROCESS TO BEGIN RECEIVING FUND REPORTS LIKE THIS VIA E-MAIL AND THE INTERNET." Dear SHAREHOLDER I am pleased to report that over the period covered by this report, your Nuveen New York Fund has continued to provide you with attractive tax-free monthly income and a solid total return. For specific information about the performance of your Fund, please read the Portfolio Manager's Comments and Performance Overview sections of this report. With interest rates at historically low levels, many have begun to wonder how fixed-income investments will perform if interest rates begin to rise. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that municipal bond investments like your Nuveen Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. I'd also like to direct your attention to the inside front cover of this report, which explains the quick and easy process to begin receiving Fund reports like this via e-mail and the internet. Thousands of Nuveen Fund shareholders already have signed-up, and they are getting their Fund information faster and more conveniently than ever. I urge you to consider joining them. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, Timothy R. Schwertfeger Chairman of the Board May 15, 2003 1 Nuveen New York Municipal Closed-End Exchange-Traded Funds (NNY, NNP, NAN, NXK) Portfolio Manager's COMMENTS Portfolio manager Paul Brennan reviews U.S. and state economic conditions, key investment strategies, and the recent performance of the Funds. With twelve years of investment experience, Paul has managed NNY, NNP, and NAN since 1999, and NXK since its inception in March 2001. WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? In a number of ways, underlying economic and market conditions have not changed significantly since our last shareholder report dated September 30, 2002. We believe the most influential factors affecting the performance of the U.S. economy and the municipal market continued to be the slow pace of economic growth and interest rates that remained at 40-year lows. In addition, continued geopolitical concerns, centering on Iraq and the ongoing threat of terrorism, also had an impact during this reporting period. In the municipal market, the sluggish economic recovery and a general lack of inflationary pressures created conditions that helped many bonds perform well during the period ended March 31, 2003. After record issuance of $357 billion in calendar year 2002, municipal bond new issue supply nationwide remained strong during the first quarter of 2003. More than $83 billion in new municipal bonds were issued in January, February and March 2003, up 22% over the same period in 2002. Demand for municipal bonds also remained strong over most of this reporting period, as many individual investors continued to seek tax-free income and increased diversification for their portfolios. Institutional investors, including traditional municipal bond purchasers such as property/casualty insurance companies as well as non-traditional purchasers such as hedge funds, arbitrage accounts, and pension funds, also were active municipal buyers over this reporting period. HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW YORK? Despite a diverse economic base and per capita income levels that rank among the highest in the nation, the economies of both New York state and New York City have been significantly impacted by anemic growth, continued declines in the financial sector, the national recession in manufacturing, and a decline in tourism. Like many other government entities, New York state and city are grappling with budget deficits stemming largely from a decline in tax revenues. Although the state managed to close a $5.8 billion shortfall in its fiscal 2003 budget by cutting expenses and drawing on rainy day reserves, it was unsuccessful in plugging a gap that subsequently appeared and ended fiscal 2003 with a $2 billion deficit. The state's proposed $90.8 billion fiscal 2004 budget includes a gap of $11.5 billion, and the state has indicated that without some form of special financing it may face a cash crisis as 2003 unfolds. Although a balanced budget was scheduled to be enacted by April 1, negotiations were still underway at the end of this reporting period, and - for the 19th consecutive year - the state was temporarily operating without a budget. In New York City, the budgetary impact of the tax revenue decline was compounded by soaring public security costs. However, through expenditure reductions, federal and state aid, and Transitional Finance Authority (TFA) borrowing, 2 the city was successful in balancing its fiscal 2003 budget. A subsequent shortfall was closed with further spending cuts and the largest property tax increase (18.5%) in New York City history, enabling the city to end fiscal 2003 with a projected $900 million surplus. Despite this surplus and $2.6 billion in spending cuts over the past 16 months, the city is again facing a deficit of about $3.8 billion in its fiscal 2004 budget. One proposal under study would reinstate the tax on the city's 800,000 commuters, which could raise as much as $1.4 billion, but which requires approval from the state government. If the commuter tax is not approved, a contingency plan that includes the layoff of 15,000 city employees is being evaluated. To date, New York City has taken the steps, no matter how difficult, to keep its budget balanced. This has been motivated in part by the state-mandated control and review processes that grew out of the city's fiscal problems in the 1970s. In March 2003, Moody's reconfirmed its A2 and Standard & Poor's its AA credit ratings for the state. Moody's currently rates New York City A2 with a declining outlook, while S&P has assigned the city an A rating with a negative outlook. Municipal issuance in New York continued to be very robust, with $49 billion of new bonds in calendar year 2002, an increase of 117% over 2001, and $9 billion in the first quarter of 2003, up 91% over January-March 2002. HOW DID THESE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED MARCH 31, 2003? Individual results for these Funds, as well as selected benchmarks, are presented in the accompanying table. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 3/31/03 EQUIVALENT3 3/31/03 3/31/03 3/31/03 - ------------------------------------------------------------------------- NNY 4.98% 7.66% 8.01% 9.67% 11.58% - ------------------------------------------------------------------------- NNP 6.35% 9.77% 13.85% 9.67% 11.58% - ------------------------------------------------------------------------- NAN 6.46% 9.94% 13.47% 9.67% 11.58% - ------------------------------------------------------------------------- NXK 6.49% 9.98% 14.19% 9.67% 11.58% - ------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For the twelve months ended March 31, 2003, the three leveraged Funds - NNP, NAN, and NXK - all outperformed the unleveraged, unmanaged Lehman Brothers New York Tax-Free Bond Index as well as their Lipper fund peer group average. Much of this outperformance of the Lehman index is attributable to the relatively long durations4 of these three Funds. A longer duration generally will help a Fund perform well during periods of declining interest rates, as was the case over much of the twelve-month period. As of March 31, 2003, the durations of these three Funds ranged from 9.17 to 10.67, compared with 7.55 for the Lehman New York index. In addition, these three Funds also benefited from their use of leverage, a strategy that can provide the opportunity for additional income for common shareholders. Over the twelve-month period ended March 31, 2003, the total return of NNY was constrained to some degree by its comparatively shorter duration of 6.07, and by the fact that it is an unleveraged Fund - which meant that it did not benefit from this strategy like the other New York Funds over the one-year period. In addition to duration and leverage, the relative performances of these Funds also were influenced by factors including call exposure, portfolio trading activity, and the price movement of specific sectors and holdings. During the twelve-month period, for example, the Funds' allocations of insured bonds and pre-refunded issues generally helped their overall performance. At the same time, each of these Funds was affected negatively by its holdings of bonds backed by American Airlines and British Airways. Over the one-year period, the market value of most airline-backed bonds fell, impacting the total returns shown in the nearby chart. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? As short-term interest rates remained at historically low levels, the dividend-paying capabilities of NNP, 1 The total annual returns on common share net asset value (NAV) for these Nuveen Funds are compared with the total annual return of the Lehman Brothers New York Tax-Exempt Bond Index, an unleveraged index comprising a broad range of investment-grade New York municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of these Nuveen New York Funds are compared with the average annualized return of the 17 funds in the Lipper New York Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a combined federal and state income tax rate of 35%. 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. With the exception of NNY, which is unleveraged, references to duration in this commentary are intended to indicate Fund duration unless otherwise noted. 3 NAN, and NXK benefited from the Funds' use of leverage. The amount of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable the Funds to reduce the amount of income they pay MuniPreferred shareholders, which can potentially leave more earnings to support common share dividends. During the twelve months ended March 31, 2003, the continued low level of short-term interest rates enabled us to implement four dividend increases in NNP and NAN and three in NXK. For NNY, which is unleveraged, this interest rate environment led to a dividend cut in June 2002, as higher-yielding issues that matured or were called from the Fund's portfolio had to be replaced with bonds paying current lower market yields. Over the course of this twelve-month period, strong demand and favorable market conditions helped the share prices of all four Funds rise. Since their NAVs also increased sharply, these Funds continued to trade at a discount to their common share net asset values as of March 31, 2003 (see charts on individual Performance Overview pages). WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE PERIOD ENDED MARCH 31, 2003? Over this reporting period, our strategic focus across all of the Funds continued to be on diversifying their portfolios, enhancing call protection, and positioning the Funds more defensively in anticipation of potential changes in the interest rate environment. Given the recent steepness of the municipal yield curve, we sought value in long-intermediate securities (i.e., bonds that mature in 15 to 20 years). In many cases, securities in this part of the yield curve were offering yields similar to those of longer-term bonds but, in our opinion, with less interest rate risk. The purchase of these long-intermediate bonds helped to moderate the durations of these Funds, making their portfolios less sensitive to interest rate changes while still allowing them to provide competitive yields and returns. As the economic recovery continued to be sluggish and growth remained slow, we also tried to be ready for a scenario in which interest rates might stay relatively low over a longer period of time than some are now suggesting. We believe that structuring the portfolios with bonds offering maturities of 15 to 20 years helps to position the Funds for this environment as well. During 2002, the Metropolitan Transportation Authority (MTA), which includes the Triborough Bridge and Tunnel Authority, restructured its debt program by issuing $15 billion in new bonds. As the new MTA issues came to market, all of the previous debt was either advance refunded or escrowed to maturity. Since we had accumulated large positions in MTA bonds in anticipation of the restructuring, the advance refunding increased our allocations of pre-refunded bonds in each of these Funds, benefiting the Funds' performance through significant price appreciation as well as enhanced credit quality. As of the end of the reporting period, each of these Funds held 4% to 5% of its portfolio in bonds backed by the master tobacco settlement agreement of 1998. In their current efforts to close their budget deficits, both New York state and city had planned to issue additional tobacco bonds. However, increased issuance of tobacco bonds by other states, as well as pending court cases against the tobacco companies, have recently weakened the prices of outstanding tobacco settlement bonds and forced some issuers to offer higher yields for new securities. In general, the prices of New York tobacco-backed bonds, especially those issued by New York City, have held up better than many issued in other states due to New York's more comprehensive debt service coverage. However, in view of current market conditions, both New York city and state have put their plans for additional tobacco issuance on hold. At the present time, our strategy is to maintain our current tobacco holdings while we evaluate the evolving situation. 4 In general, the heavy issuance in the New York market over the past year provided us with increased opportunities to purchase bonds with the types of structures that we favor, especially as we worked to shorten the Funds' durations against the risk of rising interest rates. We also continued to look for individual issues that we believed would perform well regardless of the future direction of interest rates. From a sector perspective, our portfolios generally maintained meaningful concentrations in education bonds. Overall, we emphasized highly rated or insured bonds, particularly in essential service areas such as water and sewer issues. In the current geopolitical and economic climate, we believed that maintaining strong credit quality remained a vital requirement. As of March 31, 2003, each of these Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 76% to 82%. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE FUNDS IN PARTICULAR? In the municipal market, new issuance volume nationally should remain strong, as issuers continue to take advantage of the low rate environment. Given the current budget deficits in both New York city and state and their continued need for spending on infrastructure, education, and healthcare, we expect to see significant issuance of new municipal debt in New York. We think demand for tax-exempt municipal bonds should also remain solid, as investors continue to look for ways to rebalance their portfolios and reduce overall investment risk. Over coming months, we will continue to closely monitor the budgetary situation in New York and watch for any impact on the state's credit rating. Over the next two years, we believe that all these Funds will offer good levels of call protection. As of March 31, 2003, the percentage of bonds eligible for calls during 2003 and 2004 ranged from zero in NXK to 8% in NNP. The number of actual calls over the next two years will depend largely on market interest rates during this time. In coming months, we plan to closely watch several areas of the market, including progress toward resolution of New York city and state budget deficits, the credit environment generally within the state, and the direction of interest rates and inflation. We believe these Funds' portfolios currently are well-structured, and we intend to be highly selective in adding bonds to our portfolios. In general, we plan to remain focused on strategies that can add value for our shareholders and provide support for the Funds' long-term dividend-paying capabilities. Municipal bonds have performed well in recent years. However, there is no guarantee this trend will continue, which is why we believe it's important to maintain an appropriate balance of investments. As part of a well-structured, well-balanced portfolio, we believe your Nuveen Fund can continue to play an important role in helping you reach your long-term financial objectives. 5 Nuveen New York Municipal Value Fund, Inc. Performance OVERVIEW As of March 31, 2003 NNY PIE CHART: CREDIT QUALITY AAA/U.S. GUARANTEED 49% AA 27% A 12% BBB 7% NR 4% BB OR LOWER 1% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $9.40 - -------------------------------------------------- Common Share Net Asset Value $9.95 - -------------------------------------------------- Market Yield 4.98% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.11% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 7.66% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $150,519 - -------------------------------------------------- Average Effective Maturity (Years) 20.79 - -------------------------------------------------- Average Duration 6.07 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/87) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 8.93% 8.01% - -------------------------------------------------- 5-Year 3.36% 4.85% - -------------------------------------------------- 10-Year 3.92% 5.20% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/Limited 18% - -------------------------------------------------- Long-Term Care 15% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- U.S. Guaranteed 10% - -------------------------------------------------- Utilities 10% - -------------------------------------------------- BAR CHART: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/02 0.0405 5/02 0.0405 6/02 0.039 7/02 0.039 8/02 0.039 9/02 0.039 10/02 0.039 11/02 0.039 12/02 0.039 1/03 0.039 2/03 0.039 3/03 0.039 LINE CHART: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 4/1/02 9.08 9.15 9.12 9.19 9.22 9.1 9.14 9.13 9.04 9.06 9.06 9.08 9.2 9.16 9.21 9.22 9.16 9.36 9.44 9.36 9.23 9.35 9.39 9.28 9.4 9.4 9.45 9.21 8.95 9.07 9.09 9.17 9.07 8.93 8.88 9.09 8.92 8.84 9.05 9.05 8.93 8.96 8.95 8.92 9.06 9.11 9.15 9.23 9.32 9.2 9.1 3/31/03 9.36 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. 6 Nuveen New York Performance Plus Municipal Fund, Inc. Performance OVERVIEW As of March 31, 2003 NNP PIE CHART: CREDIT QUALITY AAA/U.S. GUARANTEED 47% AA 31% A 13% BBB 7% NR 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $15.58 - -------------------------------------------------- Common Share Net Asset Value $16.48 - -------------------------------------------------- Market Yield 6.35% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.07% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 9.77% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $246,543 - -------------------------------------------------- Average Effective Maturity (Years) 20.14 - -------------------------------------------------- Leverage-Adjusted Duration 9.39 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/89) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 12.16% 13.85% - -------------------------------------------------- 5-Year 4.74% 7.22% - -------------------------------------------------- 10-Year 5.26% 6.92% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/Limited 21% - -------------------------------------------------- Education and Civic Organizations 16% - -------------------------------------------------- U.S. Guaranteed 12% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- Utilities 9% - -------------------------------------------------- BAR CHART: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 4/02 0.0775 5/02 0.0775 6/02 0.079 7/02 0.079 8/02 0.079 9/02 0.08 10/02 0.08 11/02 0.08 12/02 0.081 1/03 0.081 2/03 0.081 3/03 0.0825 LINE CHART: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 4/1/02 15.2 15.15 14.96 14.96 15.1 15.24 15.18 15.42 15.65 15.65 15.87 15.8 15.98 15.95 15.91 15.67 15.78 16.18 16.03 16.01 15.86 16.19 16.14 16.15 16.22 16.48 16.66 16.15 15.35 15.31 15.59 15.6 15.45 15.35 15.38 15.46 15.38 15.28 15.56 15.78 15.41 15.38 15.3 15.21 15.4 15.18 15.24 15.39 15.58 15.34 15.21 3/31/03 15.54 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.2332 per share. 7 Nuveen New York Dividend Advantage Municipal Fund Performance OVERVIEW As of March 31, 2003 NAN PIE CHART: CREDIT QUALITY AAA/U.S. GUARANTEED 51% AA 31% A 12% BBB 3% NR 3% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.85 - -------------------------------------------------- Common Share Net Asset Value $15.47 - -------------------------------------------------- Market Yield 6.46% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.23% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 9.94% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $142,092 - -------------------------------------------------- Average Effective Maturity (Years) 20.44 - -------------------------------------------------- Leverage-Adjusted Duration 9.17 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/99) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 14.34% 13.47% - -------------------------------------------------- Since Inception 5.75% 8.07% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 23% - -------------------------------------------------- Education and Civic Organizations 16% - -------------------------------------------------- Tax Obligation/Limited 15% - -------------------------------------------------- Tax Obligation/General 10% - -------------------------------------------------- Utilities 7% - -------------------------------------------------- BAR CHART: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/02 0.0715 5/02 0.0715 6/02 0.073 7/02 0.073 8/02 0.073 9/02 0.075 10/02 0.075 11/02 0.075 12/02 0.077 1/03 0.077 2/03 0.077 3/03 0.08 LINE CHART: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 4/1/02 14.25 14.17 14.33 14.12 14.33 14.57 14.36 14.52 14.54 14.49 14.42 14.5 14.82 14.92 14.8 14.69 14.72 14.75 14.75 14.84 14.84 14.79 15.22 15.3 15.4 15.41 15.4 15.01 14.23 14.47 14.71 14.78 14.59 14.25 14.25 14.7 14.57 14.63 14.75 14.78 14.65 14.71 14.67 14.63 14.6 14.54 14.63 14.89 14.97 14.95 14.68 3/3103 14.84 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. 8 Nuveen New York Dividend Advantage Municipal Fund 2 Performance OVERVIEW As of March 31, 2003 NXK PIE CHART: CREDIT QUALITY AAA/U.S. GUARANTEED 51% AA 30% A 5% BBB 11% NR 3% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.24 - -------------------------------------------------- Common Share Net Asset Value $15.17 - -------------------------------------------------- Market Yield 6.49% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.27% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 9.98% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $97,928 - -------------------------------------------------- Average Effective Maturity (Years) 22.03 - -------------------------------------------------- Leverage-Adjusted Duration 10.67 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 13.92% 14.19% - -------------------------------------------------- Since Inception 3.42% 9.01% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Utilities 13% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Education and Civic Organizations 13% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- U.S. Guaranteed 11% - -------------------------------------------------- BAR CHART: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 4/02 0.071 5/02 0.071 6/02 0.071 7/02 0.071 8/02 0.071 9/02 0.072 10/02 0.072 11/02 0.072 12/02 0.074 1/03 0.074 2/03 0.074 3/03 0.077 LINE CHART: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 4/1/02 13.59 13.9 14.1 13.79 14.1 14.12 14 13.89 14.05 14.1 14.18 14.05 14.27 14.19 14.11 14.35 14.33 14.62 14.64 14.46 14.46 14.49 14.83 14.72 14.7 14.79 14.66 14.42 13.85 13.65 13.84 13.93 13.63 13.46 13.61 13.84 13.78 13.66 13.8 14.22 13.95 13.98 14.06 14.08 14.06 13.85 13.8 13.97 14.37 14.34 14 3/31/03 14.06 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.0647 per share. 9 Shareholder MEETING REPORT The Shareholder Meeting was held in Chicago, Illinois on December 18, 2002.
NNY NNP - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Preferred Common Common Shares Shares Shares Shares Shares Shares Series-M Series-T Series-W Series-F ==================================================================================================================================== Robert P. Bremner For -- 13,082,099 1,453 708 1,934 517 Withhold -- 134,071 2 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 13,216,170 1,455 708 1,936 517 ==================================================================================================================================== Lawrence H. Brown For -- 13,079,872 1,453 708 1,934 517 Withhold -- 136,298 2 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 13,216,170 1,455 708 1,936 517 ==================================================================================================================================== Anne E. Impellizzeri For 12,946,463 13,085,309 1,453 708 1,934 517 Withhold 154,901 130,861 2 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 13,101,364 13,216,170 1,455 708 1,936 517 ==================================================================================================================================== Peter R. Sawers For -- 13,078,309 1,453 708 1,934 517 Withhold -- 137,861 2 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 13,216,170 1,455 708 1,936 517 ==================================================================================================================================== Judith M. Stockdale For -- 13,079,009 1,419 708 1,934 517 Withhold -- 137,161 36 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 13,216,170 1,455 708 1,936 517 ==================================================================================================================================== William J. Schneider For -- -- 1,453 708 1,934 517 Withhold -- -- 2 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,455 708 1,936 517 ==================================================================================================================================== Timothy R. Schwertfeger For -- -- 1,453 708 1,934 517 Withhold -- -- 2 -- 2 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,455 708 1,936 517 ====================================================================================================================================
10
NAN NXK APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Preferred Preferred Common Shares Common Shares Shares Series-F Shares Series-W ==================================================================================================================================== Robert P. Bremner For 8,900,253 2,749 6,319,756 1,837 Withhold 88,463 7 67,211 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,988,716 2,756 6,386,967 1,837 ==================================================================================================================================== Lawrence H. Brown For 8,895,944 2,749 6,319,756 1,837 Withhold 92,772 7 67,211 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,988,716 2,756 6,386,967 1,837 ==================================================================================================================================== Anne E. Impellizzeri For 8,896,644 2,749 6,320,656 1,837 Withhold 92,072 7 66,311 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,988,716 2,756 6,386,967 1,837 ==================================================================================================================================== Peter R. Sawers For 8,899,587 2,749 6,319,756 1,837 Withhold 89,129 7 67,211 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,988,716 2,756 6,386,967 1,837 ==================================================================================================================================== Judith M. Stockdale For 8,899,286 2,749 6,320,656 1,837 Withhold 89,430 7 66,311 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,988,716 2,756 6,386,967 1,837 ==================================================================================================================================== William J. Schneider For -- 2,749 -- 1,837 Withhold -- 7 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,756 -- 1,837 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,749 -- 1,837 Withhold -- 7 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,756 -- 1,837 ==================================================================================================================================== 11
Nuveen New York Municipal Value Fund, Inc. (NNY) Portfolio of INVESTMENTS March 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.0% $ 500 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A $ 466,180 Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33 440 Erie Tobacco Asset Securitization Corporation, Erie County, New 7/10 at 101.00 A 450,767 York Tobacco Settlement Asset-Backed Bonds, Series 2000, Senior, 6.000%, 7/15/20 Monroe Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2000: 150 6.000%, 6/01/15 6/10 at 101.00 A 152,061 805 6.150%, 6/01/25 6/10 at 101.00 A 792,957 1,295 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 A 1,304,842 Pass-Through Bonds, Series 2000, 5.800%, 6/01/23 465 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 A 440,211 Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 1,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 A- 1,015,210 Tobacco Settlement Asset-Backed Bonds Series A, 6.500%, 7/15/27 365 Rensselaer Tobacco Asset Securitization Corporation, New York, 6/12 at 100.00 A 343,257 Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.200%, 6/01/25 1,250 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A1 1,242,900 Series 1999-1, 6.250%, 7/15/27 1,250 Westchester Tobacco Asset Securitization Corporation, New York, 7/10 at 101.00 A 1,290,213 Tobacco Settlement Asset-Backed Bonds, Series 1999, 6.750%, 7/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.9% City of Albany Industrial Development Agency, New York, Civic Facility Revenue Bonds, The Albany Law School of Union University Project, Series 2000A: 600 5.700%, 10/01/20 - RAAI Insured 10/10 at 100.00 AA 647,742 750 5.750%, 10/01/30 - RAAI Insured 10/10 at 100.00 AA 803,453 2,000 Trust for Cultural Resources of the City of New York, New York, 4/07 at 101.00 AAA 2,181,700 Revenue Bonds, Series 1997A (American Museum of Natural History), 5.650%, 4/01/27 - MBIA Insured 575 Trust for Cultural Resources for the City of New York, 7/10 at 101.00 A 629,171 New York, Revenue Bonds, Series 2000 (The Museum of American Folk Art), 6.000%, 7/01/22 - ACA Insured 1,100 New York City Industrial Development Agency, New York, 1/12 at 100.00 A- 1,117,204 Civic Facility Revenue Bonds, The YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 Dormitory Authority of the State of New York, City University System Consolidated Second General Resolution Revenue Bonds, Series 1993A: 1,000 5.750%, 7/01/18 No Opt. Call AA- 1,163,450 1,050 6.000%, 7/01/20 No Opt. Call AA- 1,255,055 1,000 Dormitory Authority of the State of New York, Long Island 9/06 at 102.00 AA 1,042,920 University Insured Revenue Bonds, Series 1996, 5.500%, 9/01/20 - RAAI Insured 750 Dormitory Authority of the State of New York, Pratt Institute 7/09 at 102.00 AA 820,920 Revenue Bonds Series 1999, 6.000%, 7/01/24 - RAAI Insured 1,250 Dormitory Authority of the State of New York, Marymount 7/09 at 101.00 AA 1,384,225 Manhattan College Insured Revenue Bonds, Series 1999, 6.250%, 7/01/29 - RAAI Insured 800 Dormitory Authority of the State of New York, D'Youville 7/11 at 102.00 AA 847,768 College Insured Revenue Bonds, Series 2001, 5.250%, 7/01/20 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 11.1% 500 Cattaraugus County Industrial Development Agency, New York, 8/08 at 102.00 A+ 505,570 Civic Facility Revenue Bonds, Series 1998A (Olean General Hospital Project), 5.250%, 8/01/23 925 Nassau County Industrial Development Agency, New York, Civic No Opt. Call N/R 924,454 Facility Revenue Refunding Bonds, Series B, North Shore Health System Obligated Group Projects, 5.875%, 11/01/11 500 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AAA 534,040 Health System Bonds 1999 Series A, 5.125%, 2/15/14 - AMBAC Insured 12 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 1,000 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA $ 1,049,840 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/22 - AMBAC Insured 500 New York City Industrial Development Agency, New York, Civic 7/12 at 100.00 Baa3 515,430 Facility Revenue Bonds, Staten Island University Hospital Project, Series 2001B, 6.375%, 7/01/31 2,250 Dormitory Authority of the State of New York, The Rosalind 2/07 at 102.00 AAA 2,371,928 and Joseph Gurwin Jewish Geriatric Center of Long Island, Inc., FHA-Insured Mortgage Nursing Home Revenue Bonds, Series 1997, 5.700%, 2/01/37 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, Mount Sinai 7/10 at 101.00 BBB- 1,057,690 New York University Health Obligated Group Revenue Bonds, Series 2000A, 6.500%, 7/01/25 1,250 Dormitory Authority of the State of New York, Catholic Health 7/10 at 101.00 A3 1,373,475 Services of Long Island Revenue Bonds, Series 2000A, St. Catherine of Sienna Medical Center, 6.500%, 7/01/20 3,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 3,153,060 Hospital Insured Mortgage Revenue Bonds, 1994 Series A Refunding, 5.500%, 8/15/24 - MBIA Insured 2,305 New York State Medical Care Facilities Financing Agency, 8/05 at 102.00 AAA 2,557,905 Hospital and Nursing Home - FHA-Insured Mortgage Revenue Bonds, 1995 Series B, 6.250%, 2/15/15 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/05 at 100.00 BBB- 1,026,930 Mount Sinai New York University Health Obligated Group, Series 2002C, 6.000%, 7/01/26 1,150 Newark-Wayne Community Hospital, Inc., New York, Hospital 9/03 at 102.00 N/R 1,126,977 Revenue Improvement and Refunding Bonds, Series 1993A, 7.600%, 9/01/15 500 City of Yonkers Industrial Development Authority, New York, 7/11 at 101.00 BB 504,230 Civic Facility Revenue Bonds, St. John's Riverside Hospital Project, Series 2001A, 7.125%, 7/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.3% 400 East Syracuse Housing Authority, New York, Mortgage Revenue 4/10 at 102.00 AAA 444,532 Refunding Bonds, Series 2001A (FHA- Insured Mortgage Loan - Bennett Manor Section 8 Assisted Project), 6.700%, 4/01/21 1,500 New York City Housing Development Corporation, New York, 4/03 at 102.00 AAA 1,559,625 Multifamily Mortgage Revenue Bonds (FHA-Insured Mortgage Loan), 1993 Series A, 6.550%, 10/01/15 New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2001A: 1,000 5.400%, 11/01/21 5/11 at 101.00 AA 1,053,720 1,000 5.500%, 11/01/31 5/11 at 101.00 AA 1,045,380 1,000 5.600%, 11/01/42 5/11 at 101.00 AA 1,046,820 410 New York State Housing Finance Agency, Multifamily Housing 8/11 at 101.00 Aa1 432,197 Revenue Bonds, Secured Mortgage Program, 2001 Series B, 5.625%, 8/15/33 (Alternative Minimum Tax) 440 New York State Housing Finance Agency, Multifamily Housing 8/11 at 100.00 Aa1 466,558 Revenue Bonds, Secured Mortgage Program, 2001 Series E, 5.600%, 8/15/20 (Alternative Minimum Tax) 590 New York State Housing Finance Agency, Multifamily Housing 8/11 at 100.00 Aa1 620,898 Revenue Bonds, Secured Mortgage Program, 2001 Series F, 5.700%, 8/15/32 (Alternative Minimum Tax) 1,275 County of Westchester Industrial Development Agency, New York, 8/11 at 102.00 Aaa 1,338,062 Civic Facility Revenue Bonds, Series 2001A, GNMA Collateralized Mortgage Loan, Living Independently for the Elderly Inc. Project, 5.375%, 8/20/21 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.1% 3,750 State of New York Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 3,898,500 Revenue Bonds, Series 73-A, 5.250%, 10/01/17 (Alternative Minimum Tax) 840 State of New York Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 840,764 Thirty Third Series A, 4.750%, 4/01/23 (Alternative Minimum Tax) (WI, settling 4/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 14.7% 1,000 Town of Babylon Industrial Development Agency, New York, 8/09 at 101.00 AAA 1,090,780 Civic Facility Revenue Bonds, Series 2000B (WSNCHS East, Inc. Project), 6.000%, 8/01/24 - MBIA Insured 2,015 Village of East Rochester Housing Authority, New York, 8/07 at 102.00 AAA 2,141,320 FHA-Insured Mortgage Revenue Bonds (St. John's Meadows Project), Series 1997A, 5.750%, 8/01/37 - MBIA Insured 3,125 Village of East Rochester Housing Authority, New York, 8/08 at 101.00 AAA 3,206,781 FHA-Insured Mortgage Revenue Bonds (St. John's Meadows Project), Series 1998A, 5.250%, 8/01/38 13 Nuveen New York Municipal Value Fund, Inc. (NNY) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 705 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R $ 744,952 Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2000, 8.125%, 7/01/19 530 New York City Industrial Development Agency, New York, Civic 7/11 at 101.00 N/R 530,827 Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2001-A1, 7.250%, 7/01/16 3,000 Dormitory Authority of the State of New York, Hebrew Home 2/07 at 102.00 AA 3,360,090 for the Aged at Riverdale, FHA-Insured Mortgage Nursing Home Revenue Bonds, 6.125%, 2/01/37 2,000 Dormitory Authority of the State of New York, German 8/06 at 102.00 AA- 2,123,120 Masonic Home Corporation, FHA-Insured Mortgage Revenue Bonds, Series 1996, 5.950%, 8/01/26 3,000 Dormitory Authority of the State of New York, W.K. Nursing 8/06 at 102.00 AAA 3,378,630 Home Corporation, FHA-Insured Mortgage Revenue Bonds, Series 1996, 6.125%, 2/01/36 1,000 Dormitory Authority of the State of New York, Eger Health 2/08 at 102.00 AAA 1,014,040 Care Center of Staten Island, FHA-Insured Mortgage Nursing Home Revenue Bonds, Series 1998, 5.100%, 2/01/28 1,000 Dormitory Authority of the State of New York, Concord Nursing 7/10 at 101.00 A1 1,089,850 Home, Inc. Revenue Bonds, Series 2000, 6.500%, 7/01/29 145 New York State Medical Care Facilities Finance Agency, 8/03 at 101.00 AAA 149,098 Hospital and Nursing Home Insured Mortgage Revenue Bonds, 1992 Series C, 6.550%, 8/15/12 3,000 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/08 at 102.00 AAA 3,233,490 Revenue Bonds (Loretto Rest Residential Health Care Facility Project), Series 1997A, 5.600%, 8/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 2.5% 1,000 County of Nassau, New York, General Improvement Bonds, 3/10 at 100.00 AAA 1,145,490 Series E, 6.000%, 3/01/19 - FSA Insured 10 The City of New York, New York, General Obligation Bonds, No Opt. Call AAA 10,159 Fiscal 1992 Series C, 6.300%, 8/01/03 - AMBAC Insured 805 The City of New York, New York, General Obligation Bonds, No Opt. Call A 839,011 Fiscal 1995 Series D, 6.600%, 2/01/04 1,000 City of Niagara Falls, Niagara County, New York, Water No Opt. Call AAA 1,245,890 Treatment Plant Serial Bonds, Series 1994, 7.250%, 11/01/11 (Alternative Minimum Tax) - MBIA Insured 550 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100.00 A 582,912 Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 18.2% 1,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 1,020,600 Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A: 2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,089,760 1,000 5.000%, 11/15/30 11/12 at 100.00 AA- 1,007,160 560 Monroe Newpower Corporation, New York, Power Facilities Revenue 1/13 at 102.00 BBB+ 568,428 Bonds, Series 2003, 5.500%, 1/01/34 1,000 Nassau County Interim Finance Authority, New York, Sales Tax 11/10 at 100.00 AAA 1,141,590 Secure Bonds, Series 2000A, 5.750%, 11/15/16 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 AAA 2,220,060 Lease Revenue Bonds (The City of New York Issue), Series 1999, 5.750%, 5/15/30 - AMBAC Insured 25 Dormitory Authority of the State of New York, Judicial Facilities 4/03 at 114.14 Baa 28,685 Lease Revenue Bonds (Suffolk County Issue), Series 1991A, 9.500%, 4/15/14 3,125 Dormitory Authority of the State of New York, Mental Health 2/06 at 102.00 AAA 3,259,375 Services Facilities Improvement Revenue Bonds, Series 1996B, 5.375%, 2/15/26 - FSA Insured 780 New York State Housing Finance Agency, H.E.L.P.-Suffolk Housing 5/03 at 100.00 Baa1 809,445 Revenue Bonds, 1989 Series A, 8.100%, 11/01/05 10 New York State Housing Finance Agency, Service Contract 9/04 at 102.00 AAA 10,824 Obligation Revenue Bonds, 1994 Series A, 6.375%, 9/15/14 1,810 Dormitory Authority of the State of New York, Service Contract 4/12 at 100.00 AA- 1,974,402 Bonds, Child Care Facilities Development Program Issue, Series 2002, 5.375%, 4/01/16 600 Dormitory Authority of the State of New York, State Personal 3/13 at 100.00 AA 637,536 Income Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22 1,620 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 AA 1,693,305 Revenue Bonds, Series 2002A, 5.125%, 3/15/21 14 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 600 New York State Urban Development Corporation Project Revenue No Opt. Call AA- $ 692,466 Bonds (University Facilities Grants), 1995 Refunding Series, 5.875%, 1/01/21 1,750 New York State Urban Development Corporation, Correctional No Opt. Call AA- 1,941,170 and Youth Facilities Service Contract Revenue Bonds, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) 3,000 City School District of the City of Niagara Falls, New York, 6/08 at 101.00 AAA 3,164,340 Certificates of Participation (High School Facility), Series 1998, 5.375%, 6/15/28 - MBIA Insured 750 Niagara Falls City School District, Niagara County, New York, 6/09 at 101.00 BBB- 811,238 Certificates of Participation (High School Facility), Series 2000, 6.625%, 6/15/28 1,230 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,304,157 Agreement Revenue Bonds, Series 1999 (John P. Colahan Court Complex), 5.000%, 4/15/16 - AMBAC Insured 1,500 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101.00 BBB- 1,664,040 (Virgin Islands Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24 1,120 City of Yonkers Industrial Development Agency, New York, 2/11 at 100.00 BBB- 1,196,272 Civic Facility Revenue Bonds, Community Development Properties, Yonkers, Inc. Project, Series 2001A, 6.625%, 2/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.9% 1,000 Buffalo and Fort Erie Public Bridge Authority, New York, 1/05 at 101.00 AAA 1,071,190 Toll Bridge System Revenue Bonds, Series 1995, 5.750%, 1/01/25 - MBIA Insured 500 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 548,705 Revenue Bonds, Series 2002A Refunding, 5.500%, 11/15/19 - AMBAC Insured 1,100 New York City Industrial Development Agency, New York, 12/08 at 102.00 BBB- 606,936 Special Facility Revenue Bonds, Series 1998 (1998 British Airways PLC Project), 5.250%, 12/01/32 (Alternative Minimum Tax) 1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 Caa2 302,500 Special Facility Revenue Bonds, American Airlines, Inc. John F. Kennedy International Airport Project, Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) 500 Niagara Frontier Transportation Authority, New York (Buffalo 4/09 at 101.00 AAA 528,125 Niagara International Airport), Airport Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 2,587,725 Purpose Revenue Bonds, Series 2002B Refunding, 5.000%, 11/15/21 Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Refunding Bonds, Series 2002E: 780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 895,307 800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 844,800 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 10.1% 2,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 2,371,703 Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 - AMBAC Insured 1,000 Metropolitan Transportation Authority, New York, Dedicated 10/10 at 100.00 AAA 1,137,730 Tax Fund Bonds, Series 1996A, 5.250%, 4/01/26 (Pre-refunded to 10/01/10) - MBIA Insured 20 City of New York, New York, General Obligation Bonds, 10/07 at 101.00 Aaa 23,482 Fiscal 1997 Series G, 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 330 City of New York, New York, General Obligation Bonds, No Opt. Call A*** 345,220 Fiscal 1995 Series D, 6.600%, 2/01/04 85 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 101,737 Water and Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.100%, 6/15/31 (Pre-refunded to 6/15/10) - MBIA Insured 3,755 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 4,731,413 Facilities Lease Revenue Bonds (Suffolk County Issue), Series 1986, 7.375%, 7/01/16 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 1,120,610 State University Educational Facilities, Series 2002A, 5.000%, 5/15/17 (Pre-refunded to 5/15/12) - FGIC Insured 2,000 New York State Urban Development Corporation, Correctional 1/09 at 101.00 AAA 2,355,260 Facilities Service Contract Revenue Bonds, Series C, 6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured 2,600 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 2,965,274 Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30 (Pre-refunded to 1/01/22) 15 Nuveen New York Municipal Value Fund, Inc. (NNY) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.6% $ 1,945 County of Cattaraugus Industrial Development Agency, No Opt. Call N/R $ 1,732,703 New York, Tax-Exempt Industrial Development Revenue Bonds, Series 1999A (Laidlaw Energy and Environmental, Inc. Project), 8.500%, 7/01/21 (Alternative Minimum Tax) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 1,500 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 1,537,860 2,500 5.250%, 12/01/26 6/08 at 101.00 A- 2,567,225 2,330 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,409,546 General Revenue Bonds, Series 2001A, 5.375%, 9/01/21 750 Long Island Power Authority, New York, Electric System 5/11 at 100.00 A- 766,725 General Revenue Bonds, 2000 Series L, 5.375%, 5/01/33 New York City Industrial Development Agency, New York, Industrial Development Revenue Bonds, (Brooklyn Navy Yard Cogeneration Partners, L.P. Project), Series 1997: 1,000 6.200%, 10/01/22 (Alternative Minimum Tax) No Opt. Call BBB- 1,004,280 1,000 5.750%, 10/01/36 (Alternative Minimum Tax) 10/08 at 102.00 BBB- 939,480 1,500 Power Authority of the State of New York, Revenue Bonds, 11/10 at 100.00 Aa2 1,541,235 Series 2000A, 5.250%, 11/15/40 500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 527,145 Solid Waste Disposal Facility Revenue Bonds, American Ref- Fuel Company of Niagara, Series 2001A, 5.450%, 11/15/26 (Alternative Minimum Tax) (Mandatory put 11/15/12) Suffolk County Industrial Development Agency, New York, Industrial Development Revenue Bonds, Series 1998 (Nissequogue Cogen Partners Facility): 1,000 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 957,680 575 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 525,791 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.3% 300 Monroe County Water Authority, New York, Water Revenue 8/11 at 101.00 AA 311,949 Bonds, Series 2001, 5.150%, 8/01/22 500 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 552,085 Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 - MBIA Insured 1,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 1,077,120 Water and Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.500%, 6/15/32 - FGIC Insured 1,250 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 1,335,850 Water and Sewer System Revenue Bonds, Fiscal 2001 Series A, 5.500%, 6/15/33 1,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA 1,649,670 Water and Sewer System Revenue Bonds, Fiscal 2001 Series D, 5.500%, 6/15/17 415 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 484,724 Water and Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.100%, 6/15/31 - MBIA Insured 740 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 798,438 Water and Sewer System Revenue Bonds, Fiscal 2003 Series A, 5.375%, 6/15/19 3,065 Western Nassau County Water Authority, New York, System 5/06 at 102.00 AAA 3,341,676 Revenue Bonds, Series 1995, 5.650%, 5/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 140,435 Total Long-Term Investments (cost $139,539,827) - 98.7% 148,560,983 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 1,957,948 -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $150,518,931 ==================================================================================================================== * 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. See accompanying notes to financial statements. 16
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) Portfolio of INVESTMENTS March 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.8% $ 1,000 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A $ 932,360 Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33 1,105 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101.00 A 1,132,039 New York Tobacco Settlement Asset-Backed Bonds, Series 2000, Senior, 6.000%, 7/15/20 Monroe Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2000: 400 6.000%, 6/01/15 6/10 at 101.00 A 405,496 895 6.150%, 6/01/25 6/10 at 101.00 A 881,611 2,295 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 A 2,312,442 Pass-Through Bonds, Series 2000, 5.800%, 6/01/23 970 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 A 918,289 Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 2,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 A- 2,538,025 Tobacco Settlement Asset-Backed Bonds Series A, 6.500%, 7/15/27 920 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 A 865,196 New York, Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.200%, 6/01/25 3,750 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A1 3,728,700 Series 1999-1, 6.250%, 7/15/27 3,000 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 A 3,096,510 New York, Tobacco Settlement Asset-Backed Bonds, Series 1999, 6.750%, 7/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 23.2% 1,500 City of Albany Industrial Development Agency, New York, Civic 12/09 at 101.00 AA 1,788,090 Facility Revenue Bonds (The University Heights Association, Inc.- Albany Law School Project), Series 1999A, 6.750%, 12/01/29 - RAAI Insured 2,700 Town of Brookhaven Industrial Development Agency, Civic Facility 12/07 at 101.00 A3 2,829,492 Revenue Bonds, Series 2000 (St. Joseph's College - New York Civic Facility), 6.000%, 12/01/20 1,285 Cattaraugus County Industrial Development Agency, New York, 9/08 at 101.00 BBB 1,308,580 Civic Facility Revenue Bonds (St. Bonaventure University - Construction Project), Series 1998B, 5.000%, 9/15/13 County of Monroe Industrial Development Agency, New York, Civic Facility Revenue Bonds (St. John Fisher College Project), Series 1999: 1,000 5.375%, 6/01/17 - RAAI Insured 6/09 at 102.00 AA 1,070,110 2,365 5.375%, 6/01/24 - RAAI Insured 6/09 at 102.00 AA 2,443,707 3,000 Trust for Cultural Resources of the City of New York, New York, 4/07 at 101.00 AAA 3,272,550 Revenue Bonds, Series 1997A (American Museum of Natural History), 5.650%, 4/01/27 - MBIA Insured 1,000 Trust for Cultural Resources of the City of New York, New York, 7/09 at 101.00 AAA 1,108,170 Revenue Bonds, Series 1999A (American Museum of Natural History), 5.750%, 7/01/29 - AMBAC Insured 750 Trust for Cultural Resources for the City of New York, 7/10 at 101.00 A 820,658 New York, Revenue Bonds, Series 2000 (The Museum of American Folk Art), 6.000%, 7/01/22 - ACA Insured 1,250 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 1,341,788 Bonds (State University Dormitory Facilities Issue), Series 1999C, 5.500%, 7/01/29 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Lease Revenue 7/10 at 101.00 AA- 2,230,340 Bonds (State University Dormitory Facilities Issue), Series 2001A, 6.000%, 7/01/30 2,500 Dormitory Authority of the State of New York, State University No Opt. Call AA- 2,964,625 Educational Facilities Revenue Bonds, Series 1993A, 5.875%, 5/15/17 3,000 Dormitory Authority of the State of New York, City University No Opt. Call AAA 3,599,430 System Consolidated Revenue Bonds, Series 1993B, 6.000%, 7/01/14 - FSA Insured 17 Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 2,850 Dormitory Authority of the State of New York, Upstate 7/10 at 101.00 AAA $ 3,158,655 Community Colleges Revenue Bonds, Series 2000A, 5.750%, 7/01/29 - FSA Insured 580 Dormitory Authority of the State of New York, Fashion Institute 7/10 at 101.00 AAA 621,018 of Technology Revenue Bonds, Series 2000, 5.375%, 7/01/20 - FSA Insured 5,590 Dormitory Authority of the State of New York, University of 7/09 at 101.00 A+ 6,042,958 Rochester Revenue Bonds, Series 1999A, 5.500%, 7/01/16 Dormitory Authority of the State of New York, Pratt Institute Revenue Bonds, Series 1999: 1,250 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 1,424,013 1,000 6.000%, 7/01/24 - RAAI Insured 7/09 at 102.00 AA 1,094,560 3,810 6.000%, 7/01/28 -RAAI Insured 7/09 at 102.00 AA 4,165,892 8,345 Dormitory Authority of the State of New York, Marymount 7/09 at 101.00 AA 9,241,086 Manhattan College Insured Revenue Bonds, Series 1999, 6.250%, 7/01/29 - RAAI Insured Dormitory Authority of the State of New York, City University System Consolidated Third General Resolution Revenue Bonds, 1998 Series 2: 1,490 5.000%, 7/01/17 - FSA Insured 7/08 at 101.00 AAA 1,558,600 1,055 5.000%, 7/01/18 - FSA Insured 7/08 at 101.00 AAA 1,098,508 2,120 Dormitory Authority of the State of New York, Series 2001-1, No Opt. Call AAA 2,428,863 New York University Revenue Bonds, 5.500%, 7/01/20 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, Columbia University 7/12 at 100.00 AAA 1,090,430 Revenue Bonds, Series 2002B, 5.375%, 7/01/19 295 Dormitory Authority of the State of New York, State University 5/08 at 101.00 AAA 293,059 Educational Facilities Revenue Bonds, Series 1998B, 4.750%, 5/15/28 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 15.9% New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A: 1,000 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,056,340 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,049,840 750 New York City Industrial Development Agency, New York, 7/12 at 100.00 Baa3 773,145 Civic Facility Revenue Bonds, Staten Island University Hospital Project, Series 2001B, 6.375%, 7/01/31 2,000 Dormitory Authority of the State of New York, St. Vincent's 8/03 at 100.00 AAA 2,062,600 Hospital and Medical Center of New York, FHA-Insured Mortgage Revenue Bonds, Series 1991, 7.400%, 8/01/30 1,000 Dormitory Authority of the State of New York, St. James 2/08 at 102.00 AA 1,055,370 Mercy Hospital FHA-Insured Mortgage, Hospital Revenue Bonds, Series 1998, 5.250%, 2/01/18 8,000 Dormitory Authority of the State of New York (Catholic Health 7/09 at 101.00 AAA 8,449,040 Services of Long Island Obligated Group), St. Charles Hospital and Rehabilitation Center Revenue Bonds, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 3,400 Dormitory Authority of the State of New York, Mount Sinai 7/10 at 101.00 BBB- 3,596,146 New York University Health Obligated Group Revenue Bonds, Series 2000A, 6.500%, 7/01/25 3,750 Dormitory Authority of the State of New York, Catholic Health 7/10 at 101.00 A3 4,120,425 Services of Long Island Revenue Bonds, Series 2000A, St. Catherine of Sienna Medical Center, 6.500%, 7/01/20 1,700 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 A3 1,748,246 Lenox Hill Hospital Obligated Group, Series 2001, 5.500%, 7/01/30 2,365 New York State Medical Care Facilities Finance Agency, 8/03 at 101.00 AAA 2,455,225 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 5,500 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 5,780,610 Hospital Insured Mortgage Revenue Bonds, 1994 Series A Refunding, 5.500%, 8/15/24 - MBIA Insured 1,980 New York State Medical Care Facilities Financing Agency, 8/05 at 102.00 AAA 2,197,246 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1995 Series B, 6.250%, 2/15/15 1,705 New York State Medical Care Facilities Financing Agency, 2/05 at 102.00 Aa2 1,791,307 FHA-Insured Mortgage Project Revenue Bonds, 1995 Series C, 6.250%, 8/15/15 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 2,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/05 at 100.00 BBB- $ 2,053,860 Mount Sinai New York University Health Obligated Group, Series 2002C, 6.000%, 7/01/26 1,100 City of Yonkers Industrial Development Authority, New York, 7/11 at 101.00 BB 1,109,306 Civic Facility Revenue Bonds, St. John's Riverside Hospital Project, Series 2001A, 7.125%, 7/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.2% New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2001A: 1,610 5.500%, 11/01/31 5/11 at 101.00 AA 1,683,062 2,000 5.600%, 11/01/42 5/11 at 101.00 AA 2,093,640 New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2002A: 910 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 941,340 450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 465,912 1,140 New York State Housing Finance Agency, Multifamily 5/03 at 100.00 AAA 1,143,078 Housing Revenue Bonds, 1989 Series B,v 7.550%, 11/01/29 (Alternative Minimum Tax) - AMBAC Insured 1,585 New York State Housing Finance Agency, Multifamily Housing 8/03 at 101.00 Aa1 1,652,759 Revenue Bonds (Secured Mortgage Program), 1992 Series A, 7.000%, 8/15/12 (Alternative Minimum Tax) 1,100 New York State Housing Finance Agency, Multifamily 8/09 at 101.00 Aa1 1,155,880 Housing Revenue Bonds (Secured Mortgage Program), Series 1999I, 6.200%, 2/15/20 (Alternative Minimum Tax) 3,565 Puerto Rico Housing Finance Corporation, Multifamily Mortgage 4/03 at 100.00 A 3,641,648 Revenue Bonds, Portfolio A, Series I, 7.500%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.7% 3,620 State of New York Mortgage Agency, Homeowner 11/09 at 100.00 Aa1 3,979,683 Mortgage Revenue Bonds, Series 88, 6.250%, 4/01/30 (Alternative Minimum Tax) 1,140 State of New York Mortgage Agency, Homeowner Mortgage 1/06 at 102.00 AAA 1,197,524 Revenue Bonds, 1995 Series 52, 6.100%, 4/01/26 (Alternative Minimum Tax) - MBIA Insured 1,000 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 1,039,850 Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative Minimum Tax) 1,250 State of New York Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 1,299,500 Revenue Bonds, Series 73-A, 5.250%, 10/01/17 (Alternative Minimum Tax) 7,095 State of New York Mortgage Agency, Homeowner Mortgage 4/11 at 100.00 Aa1 7,364,468 Revenue Bonds, Series 97, 5.500%, 4/01/31 (Alternative Minimum Tax) 1,660 State of New York Mortgage Agency, Mortgage Revenue 4/13 at 101.00 Aaa 1,661,511 Bonds, Thirty Third Series A, 4.750%, 4/01/23 (Alternative Minimum Tax) (WI, settling 4/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 7.9% 1,785 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 1,886,156 Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2000, 8.125%, 7/01/19 1,350 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 1,352,106 Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2001-A1, 7.250%, 7/01/16 3,000 Dormitory Authority of the State of New York, Hebrew 2/07 at 102.00 AA 3,360,090 Home for the Aged at Riverdale, FHA-Insured Mortgage Nursing Home Revenue Bonds, 6.125%, 2/01/37 1,375 Dormitory Authority of the State of New York, The Miriam 7/10 at 102.00 A 1,503,040 Osborn Memorial Home Association Revenue Bonds, Series 2000B, 6.375%, 7/01/29 - ACA Insured 2,490 New York State Medical Care Facilities Finance Agency, 2/06 at 102.00 AA+ 2,771,046 FHA-Insured Mortgage Hospital and Nursing Home Revenue Bonds, 1995 Series C, 6.100%, 8/15/15 1,520 Dormitory Authority of the State of New York, Shorefront 2/13 at 102.00 AAA 1,541,508 Jewish Geriatric Center Inc, FHA-Insured Mortgage Nursing Home Revenue Bonds, Series 2002, 5.200%, 2/01/32 2,755 County of Oswego Industrial Development Agency, New York, 2/09 at 101.00 AAA 2,856,191 Civic Facility Revenue Bonds, Series 1999A (FHA-Insured Mortgage-Bishops Commons Inc. Project), 5.375%, 2/01/49 4,000 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/08 at 102.00 AAA 4,311,320 Revenue Bonds (Loretto Rest Residential Health Care Facility Project), Series 1997A, 5.600%, 8/01/17 19 Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 2.9% $ 745 Village of Freeport, Nassau County, New York, Various 4/10 at 101.00 Aaa $ 865,794 Purposes Serial Bonds, 2000 Series A, 6.000%, 4/01/18 - FGIC Insured 1,275 County of Nassau, New York, General Obligations, Serial 3/10 at 100.00 AAA 1,499,132 General Improvement Bonds, Series F, 6.500%, 3/01/18 - FSA Insured 245 City of New York, New York, General Obligation Bonds, Fiscal 5/03 at 101.50 AAA 249,875 1993 Series E, 5.750%, 5/15/13 - FSA Insured 2,095 City of Niagara Falls, Niagara County, New York, Water No Opt. Call AAA 2,691,907 Treatment Plant Serial Bonds, Series 1994, 8.000%, 11/01/09 (Alternative Minimum Tax) - MBIA Insured 1,350 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100.00 A 1,430,784 Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured County of Oneida, New York, General Obligations, Public Improvement Bonds, Series 2000: 200 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 218,912 200 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 217,612 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 31.2% 2,000 Battery Park City Authority, New York, Junior Revenue Bonds, 11/06 at 102.00 AAA 2,147,160 Series 1996A, 5.500%, 11/01/29 - AMBAC Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 2,175 5.750%, 7/01/18 No Opt. Call AA- 2,534,245 2,000 5.125%, 1/01/29 7/12 at 100.00 AA- 2,041,200 1,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 1,015,100 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A: 5,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 5,224,400 2,500 5.000%, 11/15/30 11/12 at 100.00 AA- 2,517,900 1,680 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ 1,705,284 Revenue Bonds, Series 2003, 5.500%, 1/01/34 2,000 Nassau Health Care Corporation, Nassau County, New York, 8/09 at 102.00 AAA 2,198,040 Health System Revenue Bonds (Guaranteed), Series 1999, 5.750%, 8/01/29 - FSA Insured 4,575 New York City Transit Authority, Metropolitan Transportation 1/10 at 101.00 AAA 5,158,496 Authority, Triborough Bridge and Tunnel Authority, New York, Certificates of Participation, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 AAA 3,330,090 Lease Revenue Bonds (The City of New York Issue), Series 1999, 5.750%, 5/15/30 - AMBAC Insured Dormitory Authority of the State of New York, Nassau County BOCES Program, Revenue Bonds, Series 2001A: 1,265 5.250%, 8/15/17 - FSA Insured 8/11 at 100.00 AAA 1,362,038 1,385 5.250%, 8/15/18 - FSA Insured 8/11 at 100.00 AAA 1,482,144 Dormitory Authority of the State of New York, Mental Health Facilities Improvement Revenue Bonds, Series 2000D: 1,755 5.875%, 2/15/18 - FSA Insured 8/10 at 100.00 AAA 1,948,436 1,690 5.875%, 2/15/19 - FSA Insured 8/10 at 100.00 AAA 1,866,098 2,080 5.875%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 2,296,736 5 New York State Medical Care Facilities Finance Agency, Mental 8/03 at 101.00 AA- 5,073 Health Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 1,200 Dormitory Authority of the State of New York, State Personal 3/13 at 100.00 AA 1,275,072 Income Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/10 at 101.00 AAA 1,136,720 Fund Bonds, Series 2000B, 5.750%, 4/01/16 - FGIC Insured 1,500 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,586,700 Fund, Series 2003A, Second General, 5.250%, 4/01/22 - MBIA Insured (WI, settling 4/03/03) 4,200 New York State Thruway Authority, Local Highway and Bridge 4/11 at 100.00 AA- 4,510,296 Service Contract Bonds, Series 2001, 5.250%, 4/01/17 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 6,500 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 AA $ 6,794,125 Revenue Bonds, Series 2002A, 5.125%, 3/15/21 New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2002A, State Facilities and Equipment: 2,860 5.375%, 3/15/19 3/12 at 100.00 AA 3,083,166 2,000 5.375%, 3/15/20 3/12 at 100.00 AA 2,143,780 4,000 New York State Urban Development Corporation, Correctional No Opt. Call AA- 4,436,960 and Youth Facilities Service Contract Revenue Bonds, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) 5,000 City School District of the City of Niagara Falls, New York, 6/08 at 101.00 AAA 5,273,900 Certificates of Participation (High School Facility), Series 1998, 5.375%, 6/15/28 - MBIA Insured 2,750 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101.00 AAA 3,146,688 Revenue Bonds, Series B, 5.875%, 7/01/35 - MBIA Insured 3,480 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101.00 BBB- 3,860,573 (Virgin Islands Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24 2,520 City of Yonkers Industrial Development Agency, New York, 2/11 at 100.00 BBB- 2,691,612 Civic Facility Revenue Bonds, Community Development Properties, Yonkers, Inc. Project, Series 2001A, 6.625%, 2/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.6% 1,580 Albany, New York, Parking Authority, Parking Revenue Bonds, 10/11 at 101.00 BBB+ 1,678,481 Series 2001B, 5.250%, 10/15/12 1,900 New York City Industrial Development Agency, New York, 12/08 at 102.00 BBB- 1,048,344 Special Facility Revenue Bonds, Series 1998 (1998 British Airways PLC Project), 5.250%, 12/01/32 (Alternative Minimum Tax) 1,455 New York State Thruway Authority, General Revenue Bonds, 1/04 at 102.00 AAA 1,475,967 Series B, 5.000%, 1/01/20 - MBIA Insured 1,000 Niagara Frontier Transportation Authority, New York (Buffalo 4/09 at 101.00 AAA 1,056,250 Niagara International Airport), Airport Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 1,925 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 2,040,519 Bonds, One Hundred Twentieth Series, 5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured 2,040 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102.00 Caa2 377,400 1996 Series A (American Airlines, Inc. Project), 6.250%, 6/01/26 (Alternative Minimum Tax) 2,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AA- 2,089,940 Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/19 6,250 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 6,469,313 Purpose Revenue Bonds, Series 2002B Refunding, 5.000%, 11/15/21 2,400 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 AAA 2,534,400 Revenue Refunding Bonds, Series 2002E, 5.250%, 11/15/22 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 17.7% Longwood Central School District, Suffolk County, New York, Serial Bonds, Series 2000: 1,500 5.750%, 6/15/17 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,763,610 1,500 5.750%, 6/15/18 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,763,610 4,525 Metropolitan Transportation Authority, New York, Commuter 7/11 at 100.00 AAA 5,131,305 Facilities Revenue Bonds, Series 1998A, 5.250%, 7/01/28 (Pre-refunded to 7/01/11) 3,500 Metropolitan Transportation Authority, New York, Dedicated 10/10 at 100.00 AAA 3,982,055 Tax Fund Bonds, Series 1996A, 5.250%, 4/01/26 (Pre-refunded to 10/01/10) - MBIA Insured 5,000 Metropolitan Transportation Authority, New York, Dedicated Tax 10/15 at 100.00 AAA 5,327,750 Fund Bonds, Series 1998A, 4.500%, 4/01/18 (Pre-refunded to 10/01/15) - FGIC Insured 1,350 City of New York, New York, General Obligation Bonds, 4/03 at 100.00 AAA 1,391,013 Fiscal 1990 Series B, 7.250%, 10/01/06 - FGIC Insured 2,600 City of New York, New York, General Obligation Bonds, 2/05 at 101.00 Aaa 2,872,454 Fiscal 1995 Series F, 6.375%, 2/15/06 (Pre-refunded to 2/15/05) 145 City of New York, New York, General Obligation Bonds, 5/03 at 101.50 AAA 148,006 Fiscal 1993 Series E, 5.750%, 5/15/13 (Pre-refunded to 5/15/03) - FSA Insured 21 Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 505 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA $ 604,440 Water and Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.100%, 6/15/31 (Pre-refunded to 6/15/10) - MBIA Insured 315 New York State Environmental Facilities Corporation, State 11/04 at 102.00 AAA 350,261 Water Pollution Control Revolving Fund Revenue Bonds, Series 1994 D Pooled Loan Issue, 6.900%, 5/15/15 (Pre-refunded to 11/15/04) 5,535 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,202,576 State University Educational Facilities, Series 2002A, 5.000%, 5/15/17 (Pre-refunded to 5/15/12) - FGIC Insured 355 Dormitory Authority of the State of New York, State University 5/08 at 101.00 AAA 397,224 Educational Facilities Revenue Bonds, Series 1998B, 4.750%, 5/15/28 (Pre-refunded to 5/15/08) - FSA Insured 3,000 New York State Urban Development Corporation, Correctional 1/09 at 101.00 AAA 3,532,890 Facilities Service Contract Revenue Bonds, Series C, 6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured 1,600 Triborough Bridge and Tunnel Authority, New York, General No Opt. Call AAA 1,730,240 Purpose Revenue Bonds, Series 1993B, 5.000%, 1/01/20 7,500 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 8,553,675 Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30 (Pre-refunded to 1/01/22) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.0% 1,000 Islip Resource Recovery Agency, New York, Resource Recovery 7/04 at 102.00 AAA 1,068,460 System Revenue Bonds (1985 Facility), Series 1994B, 6.125%, 7/01/13 (Alternative Minimum Tax) - AMBAC Insured Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 3,500 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 3,588,340 2,500 5.250%, 12/01/26 6/08 at 101.00 A- 2,567,225 5,130 5.500%, 12/01/29 6/03 at 101.00 A- 5,210,849 5,000 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 5,104,900 General Revenue Bonds, Series 2001A, 5.375%, 9/01/25 5,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 4,697,400 Industrial Development Revenue Bonds (Brooklyn Navy Yard Cogeneration Partners, L.P. Project) Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax) 4,000 Power Authority of the State of New York, Series 2000A 11/10 at 100.00 Aa2 4,109,960 Revenue Bonds, 5.250%, 11/15/40 2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 2,092,420 Solid Waste Disposal Facility Revenue Refunding Bonds, American Ref-Fuel Company of Niagara L.P. Facility, Series 2001D, 5.550%, 11/15/24 (Mandatory put 11/15/15) 4,000 Suffolk County Industrial Development Agency, New York, 1/09 at 101.00 N/R 3,657,680 1998 Industrial Development Revenue Bonds (Nissequogue Cogen Partners Facility), 5.500%, 1/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.1% 700 Monroe County Water Authority, New York, Water Revenue 8/11 at 101.00 AA 727,881 Bonds, Series 2001, 5.150%, 8/01/22 1,250 New York City Municipal Water Finance Authority, 6/09 at 101.00 AAA 1,346,400 New York, Water and Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.500%, 6/15/32 - FGIC Insured 5,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 5,343,400 Water and Sewer System Revenue Bonds, Fiscal 2001 Series A, 5.500%, 6/15/33 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA 2,199,560 Water and Sewer System Revenue Bonds, Fiscal 2001 Series D, 5.500%, 6/15/17 2,495 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,914,185 Water and Sewer System Revenue Bonds, Fiscal 2000 Series B, 6.100%, 6/15/31 - MBIA Insured 2,225 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 2,400,708 Water and Sewer System Revenue Bonds, Fiscal 2003 Series A, 5.375%, 6/15/19 715 New York State Environmental Facilities Corporation, State 6/03 at 100.00 AAA 735,163 Water Pollution Control, Revolving Fund Revenue Bonds, Series 1990 A (New York City Municipal Water Finance Authority Project), 7.500%, 6/15/12 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 175 New York State Environmental Facilities Corporation, State 11/04 at 102.00 AAA $ 192,418 Water Pollution Control Revolving Fund Revenue Bonds, Pooled Loan Issue, Series 1994D, 6.900%, 5/15/15 New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, Pooled Loan Issue, Series 2002F: 1,000 5.250%, 11/15/17 11/12 at 100.00 AAA 1,092,710 3,345 5.250%, 11/15/19 11/12 at 100.00 AAA 3,608,115 4,060 5.250%, 11/15/20 11/12 at 100.00 AAA 4,342,940 - ------------------------------------------------------------------------------------------------------------------------------------ $ 344,025 Total Long-Term Investments (cost $342,132,733) - 148.2% 365,474,353 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 5,368,723 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.4)% (124,300,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $246,543,076 ==================================================================================================================== * 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. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 23
Nuveen New York Dividend Advantage Municipal Fund (NAN) Portfolio of INVESTMENTS March 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 7.1% $ 1,000 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A $ 932,360 Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33 660 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101.00 A 676,150 New York Tobacco Settlement Asset-Backed Bonds, Senior Series 2000, 6.000%, 7/15/20 Monroe Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2000: 265 6.000%, 6/01/15 6/10 at 101.00 A 268,641 2,055 6.150%, 6/01/25 6/10 at 101.00 A 2,024,257 1,505 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 A 1,516,438 Pass-Through Bonds, Series 2000, 5.800%, 6/01/23 635 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 A 601,148 Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 530 Rensselaer Tobacco Asset Securitization Corporation, New York, 6/12 at 100.00 A 498,428 Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.200%, 6/01/25 2,250 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A1 2,237,220 Series 1999-1, 6.250%, 7/15/27 1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 A 1,290,213 New York, Tobacco Settlement Asset-Backed Bonds, Series 1999, 6.750%, 7/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 23.8% Village of Kenmore Housing Authority, New York, Tax-Exempt Student Housing Revenue Bonds (State University of New York at Buffalo Student Apartment Project), Series 1999A: 3,000 5.500%, 8/01/19 - RAAI Insured 8/09 at 102.00 AA 3,205,290 2,750 8/01/24 - RAAI Insured 8/09 at 102.00 AA 2,874,025 3,070 County of Monroe Industrial Development Agency, New York, 6/09 at 102.00 AA 3,172,170 Civic Facility Revenue Bonds (St. John Fisher College Project), Series 1999, 5.375%, 6/01/24 - RAAI Insured 500 Trust for Cultural Resources for the City of New York, 7/10 at 101.00 A 547,105 New York, Revenue Bonds, Series 2000 (The Museum of American Folk Art), 6.000%, 7/01/22 - ACA Insured 1,800 New York City Industrial Development Agency, New York, 1/12 at 100.00 A- 1,828,152 Civic Facility Revenue Bonds, The YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 3,500 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AA- 3,716,055 Bonds (State University Dormitory Facilities Issue), Series 1999B, 5.375%, 7/01/19 1,000 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 1,073,430 Bonds (State University Dormitory Facilities Issue), Series 1999C, 5.500%, 7/01/29 - MBIA Insured 2,500 Dormitory Authority of the State of New York, Rochester 7/07 at 101.00 AAA 2,625,475 Institute of Technology Insured Revenue Bonds, Series 1997, 5.250%, 7/01/22 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Siena College 7/07 at 102.00 AAA 1,129,190 Insured Revenue Bonds, Series 1997, 5.700%, 7/01/17 - MBIA Insured 500 Dormitory Authority of the State of New York, Fashion Institute 7/10 at 101.00 AAA 535,360 of Technology Revenue Bonds, Series 2000, 5.375%, 7/01/20 - FSA Insured 3,000 Dormitory Authority of the State of New York, Series 1999A, 7/09 at 101.00 A+ 3,243,090 University of Rochester Revenue Bonds, 5.500%, 7/01/16 500 Dormitory Authority of the State of New York, Pace University 7/10 at 101.00 AAA 572,330 Insured Revenue Bonds, Series 2000, 6.000%, 7/01/29 - MBIA Insured Dormitory Authority of the State of New York, Pratt Institute Revenue Bonds, Series 1999: 1,750 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 1,993,618 750 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 820,057 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,250 Dormitory Authority of the State of New York, Marymount 7/09 at 101.00 AA $ 1,384,225 Manhattan College Insured Revenue Bonds, Series 1999, 6.250%, 7/01/29 - RAAI Insured 1,500 Industrial Development Agency of Niagara County, New York, 11/11 at 101.00 AA 1,552,110 Civic Facility Revenue Bonds, Niagara University Project, Series 2001A, 5.350%, 11/01/23 - RAAI Insured 3,565 Rensselaer County Industrial Development Agency, 8/09 at 101.00 A+ 3,596,016 New York, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute Non-Residential Project), Series 1999 B, 5.125%, 8/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 33.5% City of Albany Industrial Development Agency, New York, Civic Facility Revenue Bonds (Albany Medical Center Project), Series 1999: 1,120 6.000%, 5/01/19 5/09 at 101.00 N/R 995,042 1,460 6.000%, 5/01/29 5/09 at 101.00 N/R 1,232,532 1,500 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 1,574,760 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/22 - AMBAC Insured Dormitory Authority of the State of New York, Frances Schervier Home and Hospital Insured Revenue Bonds (Franciscan Health Partnership Obligated Group), Series 1997: 2,000 5.500%, 7/01/17 - RAAI Insured 7/07 at 102.00 AA 2,172,420 2,000 5.500%, 7/01/27 - RAAI Insured 7/07 at 102.00 AA 2,086,400 Dormitory Authority of the State of New York, Victory Memorial Hospital, FHA-Insured Mortgage Hospital Revenue Bonds, Series 1999: 2,375 5.250%, 8/01/15 - MBIA Insured 8/09 at 101.00 AAA 2,551,795 2,000 5.375%, 8/01/25 - MBIA Insured 8/09 at 101.00 AAA 2,081,840 4,850 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 5,110,397 Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%, 8/15/21 - MBIA Insured 2,625 Dormitory Authority of the State of New York, The Memorial 2/09 at 101.00 AAA 2,760,975 Hospital of William F. and Gertrude F. Jones, Inc., FHA-Insured Mortgage Hospital Revenue Bonds, Series 1999, 5.250%, 8/01/19 - MBIA Insured 4,825 Dormitory Authority of the State of New York, Montefiore 8/09 at 101.00 AAA 5,043,621 Medical Center FHA-Insured Mortgage Hospital Revenue Bonds, Series 1999, 5.450%, 8/01/29 - AMBAC Insured 1,575 Dormitory Authority of the State of New York, Mount Sinai 7/10 at 101.00 BBB- 1,665,862 New York University Health Obligated Group Revenue Bonds, Series 2000A, 6.500%, 7/01/25 2,000 Dormitory Authority of the State of New York, Catholic Health 7/10 at 101.00 A3 2,197,560 Services of Long Island Revenue Bonds, Series 2000A, St. Catherine of Sienna Medical Center, 6.500%, 7/01/20 5,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 Aa2 5,239,650 Hospital Insured Mortgage Revenue Bonds, 1994 Series A, 5.250%, 8/15/14 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/05 at 100.00 BBB- 1,026,930 Mount Sinai New York University Health Obligated Group, Series 2002C, 6.000%, 7/01/26 4,000 Ulster County Industrial Development Agency, New York, 11/09 at 101.00 A2 4,050,080 Civic Facility Revenue Bonds (The Kingston Hospital Project - Letter of Credit Secured), Series 1999, 5.650%, 11/15/24 3,825 Yates County Industrial Development Agency, New York, Civic 8/09 at 101.00 AAA 4,049,872 Facility Revenue Bonds (Soldiers and Sailors Memorial Hospital of Yates County Project - FHA-Insured), Series 1999A, 5.650%, 2/01/39 650 City of Yonkers Industrial Development Authority, New York, 7/11 at 101.00 BB 655,499 Civic Facility Revenue Bonds, St. John's Riverside Hospital Project, Series 2001A, 7.125%, 7/01/31 3,000 City of Yonkers Industrial Development Agency, New York, 2/09 at 101.00 AAA 3,120,870 Mortgage Revenue Bonds (FHA-Insured Mortgage Michael Malotz Skilled Nursing Pavilion Project), Series 1999, 5.450%, 2/01/29 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.0% 1,000 New York City Housing Development Corporation, New York, 11/10 at 101.00 AA 1,059,400 Multifamily Housing Revenue Bonds, Series 2000A, 5.850%, 11/01/20 (Alternative Minimum Tax) 3,000 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 3,136,140 Multifamily Housing Revenue Bonds, Series 2001A, 5.500%, 11/01/31 25 Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.3% $ 645 Guam Housing Corporation, Single Family Mortgage Revenue No Opt. Call AAA $ 702,399 Bonds (Guaranteed Mortgage-Backed Securities Program), 1998 Series A, 5.750%, 9/01/31 (Alternative Minimum Tax) 5,700 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 5,927,145 Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative Minimum Tax) 840 State of New York Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 840,764 Thirty Third Series A, 4.750%, 4/01/23 (Alternative Minimum Tax) (WI, settling 4/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.0% Appleridge Retirement Community, Inc., New York, Mortgage Revenue Bonds (GNMA Collateralized Mortgage Loan - Appleridge Retirement Community, Inc. Project), Series 1999: 1,150 5.700%, 9/01/31 9/09 at 102.00 Aaa 1,237,860 1,250 5.750%, 9/01/41 9/09 at 102.00 Aaa 1,348,800 890 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 940,436 Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2000, 8.125%, 7/01/19 750 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 751,170 Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2001-A1, 7.250%, 7/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 15.0% Monticello Central School District, Sullivan County, New York, Serial Bonds, Series 2000: 300 6.000%, 6/15/18 - FGIC Insured 6/09 at 101.00 AAA 349,053 335 6.000%, 6/15/19 - FGIC Insured 6/09 at 101.00 AAA 388,443 300 6.000%, 6/15/20 - FGIC Insured 6/09 at 101.00 AAA 347,859 County of Nassau, New York, General Improvement Bonds, Series E: 1,400 6.000%, 3/01/17 - FSA Insured 3/10 at 100.00 AAA 1,608,222 740 6.000%, 3/01/19 - FSA Insured 3/10 at 100.00 AAA 847,663 5,000 City of New York, New York, General Obligation Bonds, 5/09 at 101.00 AAA 5,113,000 Fiscal 1999 Series J, 5.125%, 5/15/29 - MBIA Insured 800 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100.00 A 847,872 Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured Orange County, New York, General Obligation Bonds, Series 1997: 3,040 5.125%, 9/01/22 9/07 at 101.00 Aa1 3,133,419 1,195 5.125%, 9/01/23 9/07 at 101.00 Aa1 1,227,803 City of Rochester, New York, General Obligation Serial Bonds, Series 1999: 720 5.250%, 10/01/18 - MBIA Insured No Opt. Call AAA 813,852 720 5.250%, 10/01/19 - MBIA Insured No Opt. Call AAA 811,634 2,280 Rockland County, New York, General Obligation Bonds, 10/09 at 101.00 AA- 2,581,393 Series 1999, 5.600%, 10/15/16 City School District of the City of Rye, Westchester County, New York, General Obligations Serial Bonds, Series 1999: 650 5.600%, 8/15/17 8/08 at 101.00 Aaa 732,167 675 5.600%, 8/15/18 8/08 at 101.00 Aaa 756,452 675 5.600%, 8/15/19 8/08 at 101.00 Aaa 752,537 1,000 Yonkers, New York, General Obligation Bonds, Series 1999C 6/09 at 101.00 AAA 1,041,160 School Issue, 5.000%, 6/01/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.6% Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 1,000 5.750%, 1/01/17 No Opt. Call AA- 1,163,430 1,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,020,600 2,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 2,030,200 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A: 2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,089,760 2,000 5.000%, 11/15/30 11/12 at 100.00 AA- 2,014,320 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,130 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ $ 1,147,007 Revenue Bonds, Series 2003, 5.500%, 1/01/34 2,500 Nassau County Interim Finance Authority, New York, Sales Tax 11/10 at 100.00 AAA 2,853,975 Secure Bonds, Series 2000A, 5.750%, 11/15/16 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 AAA 2,220,060 Lease Revenue Bonds (The City of New York Issue), Series 1999, 5.750%, 5/15/30 - AMBAC Insured 1,960 Dormitory Authority of the State of New York, Mental Health 8/10 at 100.00 AAA 2,176,031 Facilities Improvement Revenue Bonds, Series 2000D, 5.875%, 8/15/18 - FSA Insured 1,000 New York State Medical Care Facilities Finance Agency, Mental 2/04 at 102.00 AAA 1,030,490 Health Services Facilities Improvement Revenue Bonds, 1994 Series A, 5.250%, 8/15/23 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Service Contract 4/12 at 100.00 AA- 1,070,670 Bonds, Child Care Facilities Development Program Issue, Series 2002, 5.375%, 4/01/19 600 Dormitory Authority of the State of New York, State Personal 3/13 at 100.00 AA 637,536 Income Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,052,860 Fund, Series 2003A, Second General, 5.250%, 4/01/23 - MBIA Insured (WI, settling 4/03/03) 2,900 New York State Thruway Authority, Local Highway and Bridge 4/08 at 101.00 AAA 3,188,782 Service Contract Bonds, Series 1998A, 5.375%, 4/01/16 - MBIA Insured 1,000 New York State Urban Development Corporation, State Personal 3/12 at 100.00 AA 1,024,510 Income Tax Revenue Bonds, Series 2002A, State Facilities and Equipment, 5.125%, 3/15/27 3,345 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 3,653,442 Agreement Revenue Bonds, Series 1999 (John P. Colahan Court Complex), 5.250%, 10/15/15 - AMBAC Insured 750 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101.00 BBB- 832,020 (Virgin Islands Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24 1,400 City of Yonkers Industrial Development Agency, New York, Civic 2/11 at 100.00 BBB- 1,495,340 Facility Revenue Bonds, Community Development Properties, Yonkers, Inc. Project, Series 2001A, 6.625%, 2/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.1% 1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 1,043,960 Revenue Bonds, Series 2002A Refunding, 5.125%, 11/15/22 - FGIC Insured 1,000 New York City Industrial Development Agency, New York, Special 8/12 at 101.00 Caa2 302,500 Facility Revenue Bonds, American Airlines, Inc. John F. Kennedy International Airport Project, Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) 500 Niagara Frontier Transportation Authority, New York (Buffalo 4/09 at 101.00 AAA 528,125 Niagara International Airport), Airport Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 3,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,180,030 Bonds, One Hundred Twentieth Series, 5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured 1,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AA- 1,086,460 Purpose Revenue Bonds, Series 2001A, 5.250%, 1/01/16 2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 2,587,725 Purpose Revenue Bonds, Series 2002B Refunding, 5.000%, 11/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 9.3% 1,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 1,317,613 Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 - AMBAC Insured 6,520 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 7,443,167 Fund Bonds, Series 1999A, 5.250%, 4/01/23 (Pre-refunded to 10/01/14) - FSA Insured 4,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 4,390,320 Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28 (Pre-refunded to 1/01/22) 27 Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.9% Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: $ 4,800 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA $ 4,921,152 5,575 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 5,740,578 2,000 Power Authority of the State of New York, Revenue Bonds, 11/10 at 100.00 Aa2 2,063,860 Series 2000A, 5.250%, 11/15/30 1,325 Suffolk County Industrial Development Agency, New York, No Opt. Call N/R 1,367,678 1998 Industrial Development Revenue Bonds (Nissequogue Cogen Partners Facility), 4.875%, 1/01/08 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.5% 6,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 6,625,020 Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 - MBIA Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 2,137,360 Water and Sewer System Revenue Bonds, Fiscal 2001 Series A, 5.500%, 6/15/33 1,130 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 1,219,236 Water and Sewer System Revenue Bonds, Fiscal 2003 Series A, 5.375%, 6/15/19 1,955 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 2,136,245 Clean Water and Drinking Water Revolving Funds Revenue Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ $ 197,085 Total Long-Term Investments (cost $194,859,184) - 146.1% 207,617,363 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 3,474,722 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.6)% (69,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $142,092,085 ==================================================================================================================== * 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. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 28
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) Portfolio of INVESTMENTS March 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.5% $ 500 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A $ 466,180 Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33 630 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 A 596,415 Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 320 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 A 300,938 New York, Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.200%, 6/01/25 5,000 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A1 4,971,600 Series 1999-1, 6.250%, 7/15/27 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 18.4% 2,750 City of Albany Industrial Development Agency, New York, Civic 7/11 at 101.00 Aaa 2,893,000 Facility Revenue Bonds, St. Rose College Project, Series 2001A, 5.375%, 7/01/31 - AMBAC Insured 1,975 Town of Amherst Industrial Development Agency, New York, 8/11 at 102.00 AAA 2,055,600 Civic Facility Revenue Bonds, UBF Faculty-Student Housing Corporation, Series 2001A, 5.250%, 8/01/31 - AMBAC Insured 2,190 County of Monroe Industrial Development Agency, New York, 6/11 at 102.00 AA 2,253,291 Civic Facility Revenue Bonds, St. John Fisher College Project, Series 2001, 5.250%, 6/01/26 - RAAI Insured 1,100 New York City Industrial Development Agency, New York, 1/12 at 100.00 A- 1,117,204 Civic Facility Revenue Bonds, The YMCA of Greater New York, Series 2002, 5.250%, 8/01/21 2,000 Dormitory Authority of the State of New York, Insured 7/08 at 101.00 AAA 2,061,760 Revenue Bonds Series 1998, New York Medical College, 5.000%, 7/01/21 - MBIA Insured 1,265 Dormitory Authority of the State of New York, City University 7/08 at 102.00 AAA 1,316,928 System Consolidated Third General Resolution Revenue Bonds, 1998 Series 1, 5.250%, 7/01/25 - FGIC Insured 5,000 Dormitory Authority of the State of New York, City University 1/08 at 102.00 AAA 5,295,150 System Consolidated Third General Resolution Revenue Bonds, 1997 Series 1, 5.375%, 7/01/24 - FSA Insured 1,000 Dormitory Authority of the State of New York, Series 2000, 7/11 at 101.00 AAA 1,041,180 Canisius College Revenue Bonds, 5.250%, 7/01/30 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.1% 925 Nassau County Industrial Development Agency, New York, No Opt. Call N/R 924,454 Civic Facility Revenue Refunding Bonds, North Shore Health System Obligated Group Projects, Series B, 5.875%, 11/01/11 850 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 A3 870,664 Health System Bonds, 1999 Series A, 5.250%, 2/15/17 500 New York City Industrial Development Agency, New York, 7/12 at 101.00 BBB- 521,025 Civic Facility Revenue Bond, Staten Island University Hospital Project, Series 2002C, 6.450%, 7/01/32 500 New York City Industrial Development Agency, New York, 7/12 at 100.00 Baa3 515,430 Civic Facility Revenue Bonds, Staten Island University Hospital Project, Series 2001B, 6.375%, 7/01/31 415 Dormitory Authority of the State of New York, NYACK Hospital, 7/06 at 102.00 Ba3 388,527 Revenue Bonds, Series 1996, 6.000%, 7/01/06 1,500 Dormitory Authority of the State of New York (United Health 2/08 at 102.00 AAA 1,550,970 Services), FHA-Insured Mortgage Revenue Refunding Bonds, Series 1997, 5.375%, 8/01/27 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Montefiore 8/09 at 101.00 AAA 3,141,390 Medical Center FHA-Insured Mortgage Hospital Revenue Bonds, Series 1999, 5.500%, 8/01/38 - AMBAC Insured 2,505 Dormitory Authority of the State of New York, The New York 8/09 at 101.00 AAA 2,795,931 Hospital Medical Center of Queens, FHA-Insured Mortgage Revenue Bonds, Series 1999, 5.550%, 8/15/29 - AMBAC Insured 29 Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 2,640 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 A3 $ 2,714,923 Lenox Hill Hospital Obligated Group, Series 2001, 5.500%, 7/01/30 1,250 Dormitory Authority of the State of New York, Revenue Bonds, 2/05 at 100.00 BBB- 1,283,663 Mount Sinai New York University Health Obligated Group, Series 2002C, 6.000%, 7/01/26 Suffolk County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Huntington Hospital Project Bonds, Series 2002C: 425 6.000%, 11/01/22 11/12 at 100.00 Baa1 446,943 610 5.875%, 11/01/32 11/12 at 100.00 Baa1 628,202 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.6% 3,930 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 4,191,384 Multifamily Housing Revenue Bonds, Series 2001B, 5.250%, 11/01/16 1,000 New York City Housing Development Corporation, New York, 11/11 at 100.00 AA 1,023,250 Multifamily Housing Revenue Bonds, Series 2001C2, 5.400%, 11/01/33 (Alternative Minimum Tax) New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2002A: 455 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 470,670 225 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 232,956 1,475 New York State Housing Finance Agency, Multifamily Housing 2/11 at 100.00 Aa1 1,532,864 Revenue Bonds, Series 2001L, Secured Mortgage Program, 5.700%, 2/15/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.2% 4,000 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 4,159,400 Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.8% 525 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 525,819 Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2001-A1, 7.250%, 7/01/16 2,150 Dormitory Authority of the State of New York, New York 7/11 at 102.00 AAA 2,204,481 State Rehabilitation Association, Pooled Loan Program No. 1, Insured Revenue Bonds, Series 2001A, 5.000%, 7/01/23 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 11.3% 1,775 Bath Central School District, Steuben County, New York, 6/12 at 100.00 AAA 1,703,450 General Obligation Bonds, Series 2002, 4.000%, 6/15/18 - FGIC Insured 5,000 County of Nassau, New York, General Obligations, Serial 6/09 at 102.00 AAA 5,227,150 General Improvement Bonds, Series B, 5.250%, 6/01/22 - AMBAC Insured 4,000 City of New York, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 4,160,680 1998 Series H, 5.375%, 8/01/27 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 18.5% Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 1,000 5.750%, 1/01/17 No Opt. Call AA- 1,163,430 1,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,020,600 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A: 1,750 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 1,828,540 1,000 5.000%, 11/15/30 11/12 at 100.00 AA- 1,007,160 560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ 568,428 Revenue Bonds, Series 2003, 5.500%, 1/01/34 1,670 Nassau County Interim Finance Authority, New York, Sales 11/10 at 100.00 AAA 1,832,608 Tax Secure Bonds, Series 2000A, 5.375%, 11/15/17 - MBIA Insured 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) State of New York Municipal Bond Bank Agency, Special Program Revenue Bonds, City of Buffalo, 2001 Series A: $ 1,070 5.250%, 5/15/23 - AMBAC Insured 5/11 at 100.00 AAA $ 1,117,743 1,125 5.250%, 5/15/24 - AMBAC Insured 5/11 at 100.00 AAA 1,171,327 Dormitory Authority of the State of New York, Service Contract Bonds, Child Care Facilities Development Program Issue, Series 2002: 1,905 5.375%, 4/01/17 4/12 at 100.00 AA- 2,064,639 1,000 5.375%, 4/01/19 4/12 at 100.00 AA- 1,070,670 400 Dormitory Authority of the State of New York, State Personal 3/13 at 100.00 AA 425,024 Income Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22 2,500 New York State Urban Development Corporation, State 3/12 at 100.00 AA 2,561,275 Personal Income Tax Revenue Bonds, Series 2002A, State Facilities and Equipment, 5.125%, 3/15/27 2,250 Virgin Islands Public Finance Authority Revenue and Refunding 10/08 at 101.00 BBB- 2,268,563 Bonds (Virgin Islands Matching Fund Loan Notes), Series 1998A (Senior Lien/Refunding), 5.500%, 10/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 14.3% Albany Parking Authority, New York, Parking Revenue Bonds, Series 2001A: 2,000 5.625%, 7/15/20 7/11 at 101.00 BBB+ 2,094,080 1,500 5.625%, 7/15/25 7/11 at 101.00 BBB+ 1,540,245 1,000 New York City Industrial Development Agency, New York, 12/12 at 101.00 BBB- 752,200 Special Facilities Revenue Bonds, British Airways PLC Project, Series 2002, 7.625%, 12/01/32 1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 Caa2 302,500 Special Facility Revenue Bonds, American Airlines, Inc. John F. Kennedy International Airport Project, Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) 3,400 Niagara Frontier Transportation Authority, New York (Buffalo 4/09 at 101.00 AAA 3,591,250 Niagara International Airport), Airport Revenue Bonds, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 2,195 Port Authority of New York and New Jersey, Consolidated Bonds, 10/07 at 101.00 AAA 2,287,234 One Hundred Twentieth Series, 5.500%, 10/15/35 (Alternative Minimum Tax) - MBIA Insured 2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 2,587,725 Purpose Revenue Bonds, Series 2002B Refunding, 5.000%, 11/15/21 780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 895,307 Revenue Refunding Bonds, Series 2002E, 5.500%, 11/15/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 15.9% 3,750 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 4,193,925 Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 4,205 New York State Urban Development Corporation, Correctional 1/11 at 100.00 AAA 4,699,886 Facilities Service Contract Revenue Bonds, Series C, 5.125%, 1/01/21 (Pre-refunded to 1/01/11) - FSA Insured 3,000 Triborough Bridge and Tunnel Authority, New York, General 1/11 at 100.00 AAA 3,370,470 Purpose Revenue Bonds, Series 1996B, 5.200%, 1/01/22 (Pre-refunded to 1/01/11) 3,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 3,292,740 Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28 (Pre-refunded to 1/01/22) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 19.2% 5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 5,148,500 Revenue Bonds, Series 1998A, 5.250%, 12/01/26 - AMBAC Insured 1,500 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- 1,533,450 Revenue Bonds, 2000 Series L, 5.375%, 5/01/33 New York City Industrial Development Agency, New York, Industrial Development Revenue Bonds (Brooklyn Navy Yard Cogeneration Partners, L.P. Project), Series 1997: 1,000 6.200%, 10/01/22 (Alternative Minimum Tax) No Opt. Call BBB- 1,004,280 2,000 5.750%, 10/01/36 (Alternative Minimum Tax) 10/08 at 102.00 BBB- 1,878,960 31 Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued) Portfolio of INVESTMENTS March 31, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,500 Power Authority of the State of New York, Revenue Bonds, 11/10 at 100.00 Aa2 $ 3,596,215 Series 2000A, 5.250%, 11/15/40 450 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 474,431 Solid Waste Disposal Facility Revenue Bonds, American Ref-Fuel Company of Niagara, Series 2001A, 5.450%, 11/15/26 (Alternative Minimum Tax) (Mandatory put 11/15/12) 2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa1 2,092,420 Solid Waste Disposal Facility Revenue Refunding Bonds, American Ref-Fuel Company of Niagara L.P. Facility, Series 2001D, 5.550%, 11/15/24 (Mandatory put 11/15/15) Suffolk County Industrial Development Agency, New York, 1998 Industrial Development Revenue Bonds (Nissequogue Cogen Partners Facility): 1,250 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,197,100 2,000 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,828,840 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.9% 6,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 6,412,080 Water and Sewer System Revenue Bonds, Fiscal 2001 Series A, 5.500%, 6/15/33 1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA 1,099,780 Water and Sewer System Revenue Bonds, Fiscal 2001 Series D, 5.500%, 6/15/17 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,074,720 Water and Sewer System Revenue Bonds, Fiscal 2002 Series A, 5.250%, 6/15/33 - FGIC Insured 1,000 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 1,092,710 Clean Water and Drinking Water Revolving Funds Revenue Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ $ 137,645 Total Long-Term Investments (cost $137,586,758) - 145.7% 142,724,527 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 2,203,798 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.0)% (47,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $97,928,325 ==================================================================================================================== * 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. N/R Investment is not rated. See accompanying notes to financial statements. 32
Statement of ASSETS AND LIABILITIES March 31, 2003 (Unaudited) NEW YORK NEW YORK NEW YORK NEW YORK DIVIDEND DIVIDEND VALUE PERFORMANCE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $139,539,827, $342,132,733, $194,859,184 and $137,586,758, respectively) $148,560,983 $365,474,353 $207,617,363 $142,724,527 Cash 658,686 3,208,480 2,435,791 10,033 Interest receivable 2,250,399 5,705,833 3,074,967 2,320,804 Other assets 11,933 27,371 10,551 1,385 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 151,482,001 374,416,037 213,138,672 145,056,749 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased 840,000 3,244,795 1,889,150 -- Accrued expenses: Management fees 65,752 201,395 61,980 43,017 Other 57,318 106,811 93,754 79,606 Preferred share dividends payable N/A 19,960 1,703 5,801 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 963,070 3,572,961 2,046,587 128,424 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value N/A 124,300,000 69,000,000 47,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $150,518,931 $246,543,076 $142,092,085 $ 97,928,325 ==================================================================================================================================== Common shares outstanding 15,120,364 14,957,607 9,183,464 6,457,000 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 9.95 $ 16.48 $ 15.47 $ 15.17 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 151,204 $ 149,576 $ 91,835 $ 64,570 Paid-in surplus 144,261,147 217,764,064 130,339,445 91,616,693 Undistributed (Over-distribution of) net investment income (266,552) 2,702,684 1,600,502 970,182 Accumulated net realized gain (loss) from investments (2,648,024) 2,585,132 (2,697,876) 139,111 Net unrealized appreciation of investments 9,021,156 23,341,620 12,758,179 5,137,769 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $150,518,931 $246,543,076 $142,092,085 $ 97,928,325 ==================================================================================================================================== Authorized shares: Common 250,000,000 200,000,000 Unlimited Unlimited Preferred N/A 1,000,000 Unlimited Unlimited ==================================================================================================================================== N/A - Fund is not authorized to issue Preferred shares. See accompanying notes to financial statements. 33
Statement of OPERATIONS Six Months Ended March 31, 2003 (Unaudited)
NEW YORK NEW YORK NEW YORK NEW YORK DIVIDEND DIVIDEND VALUE PERFORMANCE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 3,897,543 $ 9,775,076 $ 5,466,817 $ 3,735,627 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 422,618 1,178,420 675,039 466,368 Preferred shares - auction fees N/A 154,949 86,014 58,589 Preferred shares - dividend disbursing agent fees N/A 19,945 4,986 4,986 Shareholders' servicing agent fees and expenses 30,315 28,776 3,552 1,356 Custodian's fees and expenses 23,762 49,061 29,560 19,728 Directors'/Trustees' fees and expenses 1,016 2,335 1,594 673 Professional fees 138,851 9,206 7,461 5,668 Shareholders' reports - printing and mailing expenses 13,257 17,201 8,246 9,428 Stock exchange listing fees 8,091 7,005 5,780 471 Investor relations expense 15,135 27,107 14,467 10,059 Other expenses 4,653 16,077 8,571 7,459 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 657,698 1,510,082 845,270 584,785 Custodian fee credit (2,074) (7,881) (2,717) (2,747) Expense reimbursement -- -- (313,999) (215,801) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 655,624 1,502,201 528,554 366,237 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 3,241,919 8,272,875 4,938,263 3,369,390 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments (1,905,576) 3,908,252 (443,439) 159,116 Change in net unrealized appreciation (depreciation) of investments (859,650) (10,009,055) (3,393,912) (2,930,385) - ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (2,765,226) (6,100,803) (3,837,351) (2,771,269) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From and in excess of net investment income N/A (411,085) (374,157) (229,981) From accumulated net realized gains from investments N/A (359,677) -- (47,699) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders N/A (770,762) (374,157) (277,680) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 476,693 $ 1,401,310 $ 726,755 $ 320,441 ==================================================================================================================================== N/A - Fund is not authorized to issue Preferred shares. See accompanying notes to financial statements. 34
Statement of CHANGES IN NET ASSETS (Unaudited)
NEW YORK VALUE (NNY) NEW YORK PERFORMANCE PLUS (NNP) --------------------------------- --------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 3/31/03 9/30/02 3/31/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 3,241,919 $ 7,070,992 $ 8,272,875 $ 16,974,339 Net realized gain (loss) from investments (1,905,576) 727,823 3,908,252 3,072,903 Change in net unrealized appreciation (depreciation) of investments (859,650) 4,003,348 (10,009,055) 12,819,022 Distributions to Preferred Shareholders: From and in excess of net investment income N/A N/A (411,085) (1,680,916) From accumulated net realized gains from investments N/A N/A (359,677) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 476,693 11,802,163 1,401,310 31,185,348 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From and in excess of net investment income (3,538,166) (7,359,327) (7,290,407) (13,893,897) From accumulated net realized gains from investments -- -- (3,458,002) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,538,166) (7,359,327) (10,748,409) (13,893,897) - ------------------------------------------------------------------------------------------------------------------------------------ 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 (3,061,473) 4,442,836 (9,347,099) 17,291,451 Net assets applicable to Common shares at the beginning of period 153,580,404 149,137,568 255,890,175 238,598,724 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $150,518,931 $153,580,404 $246,543,076 $255,890,175 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (266,552) $ (91,138) $ 2,702,684 $ 2,241,208 ==================================================================================================================================== N/A - Fund is not authorized to issue Preferred shares. See accompanying notes to financial statements. 35
Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
NEW YORK NEW YORK DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK) --------------------------------- --------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 3/31/03 9/30/02 3/31/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,938,263 $ 9,864,731 $ 3,369,390 $ 6,728,300 Net realized gain (loss) from investments (443,439) 1,609,916 159,116 463,421 Change in net unrealized appreciation (depreciation) of investments (3,393,912) 6,491,120 (2,930,385) 5,889,462 Distributions to Preferred Shareholders: From and in excess of net investment income (374,157) (987,619) (229,981) (684,180) From accumulated net realized gains from investments -- -- (47,699) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 726,755 16,978,148 320,441 12,397,003 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From and in excess of net investment income (4,233,577) (7,860,612) (2,865,160) (5,475,548) From accumulated net realized gains from investments -- -- (413,137) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,233,577) (7,860,612) (3,278,297) (5,475,548) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 39,957 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,506,822) 9,157,493 (2,957,856) 6,921,455 Net assets applicable to Common shares at the beginning of period 145,598,907 136,441,414 100,886,181 93,964,726 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $142,092,085 $145,598,907 $ 97,928,325 $100,886,181 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 1,600,502 $ 1,202,731 $ 970,182 $ 703,010 ==================================================================================================================================== See accompanying notes to financial statements. 36
Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The New York Funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen New York Municipal Value Fund, Inc. (NNY), Nuveen New York Performance Plus Municipal Fund, Inc. (NNP), Nuveen New York Dividend Advantage Municipal Fund (NAN) and Nuveen New York Dividend Advantage Municipal Fund 2 (NXK). All of the Funds' Common shares trade on the New York Stock Exchange, with the exception of New York Dividend Advantage 2's Common shares (NXK) which trade on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and New York state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within the state of New York. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities 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 and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the security. 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 such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The 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 March 31, 2003, New York Value (NNY), New York Performance Plus (NNP) and New York Dividend Advantage (NAN) had outstanding when-issued purchase commitments of $840,000, $3,244,795 and $1,889,150, respectively. There were no such outstanding purchase commitments in New York Dividend Advantage 2 (NXK). Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. 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 and New York state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared and paid 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 accounting principles generally accepted in the United States. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. 37 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Preferred Shares New York Value (NNY) is not authorized to issue Preferred shares. The Funds below have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one or more Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE ADVANTAGE 2 (NNP) (NAN) (NXK) - -------------------------------------------------------------------------------- Number of shares: Series M 1,600 -- -- Series T 800 -- -- Series W 2,000 -- 1,880 Series TH -- -- -- Series F 572 2,760 -- - -------------------------------------------------------------------------------- Total 4,972 2,760 1,880 ================================================================================ Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended March 31, 2003. 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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:
NEW YORK NEW YORK VALUE (NNY) PERFORMANCE PLUS (NNP) ------------------------ ---------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 3/31/03 9/30/02 3/31/03 9/30/02 - -------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- -- -- -- ======================================================================================================== NEW YORK NEW YORK DIVIDEND DIVIDEND ADVANTAGE (NAN) ADVANTAGE 2 (NXK) ------------------------ ----------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 3/31/03 9/30/02 3/31/03 9/30/02 - -------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- 3,034 -- -- ========================================================================================================
38 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term securities during the six months ended March 31, 2003, were as follows:
NEW YORK NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND VALUE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - --------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $10,195,605 $25,250,277 $ 8,138,365 $4,587,664 Short-term securities -- -- -- -- Sales and maturities: Long-term municipal securities 12,678,393 35,255,392 11,128,684 7,637,485 Short-term securities -- -- -- -- =========================================================================================================
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 timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At March 31, 2003, the cost of investments were as follows:
NEW YORK NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND VALUE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - --------------------------------------------------------------------------------------------------------- Cost of Investments $139,358,371 $341,906,738 $194,785,071 $137,559,504 =========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments at March 31, 2003, were as follows:
NEW YORK NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND VALUE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $10,646,801 $26,472,094 $13,952,102 $ 6,300,708 Depreciation (1,444,189) (2,904,479) (1,119,810) (1,135,685) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments $ 9,202,612 $23,567,615 $12,832,292 $ 5,165,023 =========================================================================================================
The tax components of undistributed net investment income and net realized gains at September 30, 2002, the Funds' last fiscal year end, were as follows:
NEW YORK NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND VALUE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $450,050 $3,161,131 $1,891,939 $1,143,780 Undistributed net ordinary income * -- 31,265 -- 55,027 Undistributed net long-term capital gains -- 2,494,559 -- 390,300 =========================================================================================================
The tax character of distributions paid during the period ended September 30, 2002, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
NEW YORK NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND VALUE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $7,371,424 $15,484,246 $8,813,594 $6,152,442 Distributions from net ordinary income * 40,825 27,024 -- -- Distributions from net long-term capital gains -- -- -- -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 39 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) At September 30, 2002, 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: NEW YORK NEW YORK DIVIDEND VALUE ADVANTAGE (NNY) (NAN) - -------------------------------------------------------------------------------- Expiration year: 2008 $621,578 $ 575,964 2009 120,870 1,678,473 - -------------------------------------------------------------------------------- Total $742,448 $2,254,437 ================================================================================ 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under New York Value's (NNY) investment management agreement with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company), the Fund pays an annual management fee, payable monthly, of .35 of 1% of the average daily net assets of the Fund, as well as 4.125% of the gross interest income of the Fund. Under New York Performance Plus's (NNP) investment management agreement with the Adviser, the Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of the Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- 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 ================================================================================ Under New York Dividend Advantage's (NAN) and New York Dividend Advantage 2's (NXK) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- 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 ================================================================================ 40 For the first ten years of New York Dividend Advantage's (NAN) 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 New York Dividend Advantage (NAN) for any portion of its fees and expenses beyond July 31, 2009. For the first ten years of New York Dividend Advantage 2's (NXK) 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 New York Dividend Advantage 2 (NXK) for any portion of its fees and expenses beyond March 31, 2011. 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. 6. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid May 1, 2003, to shareholders of record on April 15, 2003, as follows: NEW YORK NEW YORK NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND VALUE PLUS ADVANTAGE ADVANTAGE 2 (NNY) (NNP) (NAN) (NXK) - -------------------------------------------------------------------------------- Dividend per share $.0390 $.0825 $.0800 $.0770 ================================================================================ 41 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions from and From and in Excess Distributions in Excess of Net from of Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== NEW YORK VALUE (NNY) Year Ended 9/30: 2003(c) $10.16 $ .21 $ (.19) $N/A $N/A $ .02 $ (.23) $-- $ (.23) 2002 9.86 .47 .32 N/A N/A .79 (.49) -- (.49) 2001 9.51 .50 .36 N/A N/A .86 (.51) -- (.51) 2000 9.53 .52 (.03) N/A N/A .49 (.51) -- (.51) 1999 10.39 .51 (.76) N/A N/A (.25) (.51) (.10) (.61) 1998 10.28 .55 .20 N/A N/A .75 (.55) (.09) (.64) NEW YORK PERFORMANCE PLUS (NNP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) 17.11 .55 (.41) (.03) (.02) .09 (.49) (.23) (.72) 2002 15.95 1.13 1.07 (.11) -- 2.09 (.93) -- (.93) 2001 14.67 1.16 1.26 (.26) -- 2.16 (.88) -- (.88) 2000 14.65 1.23 .12 (.30) (.02) 1.03 (.95) (.06) (1.01) 1999 16.24 1.24 (1.56) (.22) -- (.54) (1.03) -- (1.03) 1998 16.23 1.31 .02 (.23) -- 1.10 (1.09) -- (1.09) NEW YORK DIVIDEND ADVANTAGE (NAN) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) 15.85 .54 (.42) (.04) -- .08 (.46) -- (.46) 2002 14.86 1.07 .89 (.11) -- 1.85 (.86) -- (.86) 2001 13.42 1.08 1.40 (.24) -- 2.24 (.80) -- (.80) 2000 13.27 1.08 .18 (.29) -- .97 (.82) -- (.82) 1999(a) 14.33 .27 (.95) (.05) -- (.73) (.21) -- (.21) NEW YORK DIVIDEND ADVANTAGE 2 (NXK) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) 15.62 .52 (.42) (.04) (.01) .05 (.44) (.06) (.50) 2002 14.55 1.04 .99 (.11) -- 1.92 (.85) -- (.85) 2001(b) 14.33 .44 .33 (.07) -- .70 (.35) -- (.35) ==================================================================================================================================== Total Returns ----------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ============================================================================== NEW YORK VALUE (NNY) Year Ended 9/30 2003(c) $-- $ 9.95 $ 9.4000 2.36% .26% 2002 -- 10.16 9.4200 4.55 8.26 2001 -- 9.86 9.4900 14.66 9.23 2000 -- 9.51 8.7500 6.17 5.29 1999 -- 9.53 8.7500 (8.04) (2.58) 1998 -- 10.39 10.1250 .87 7.57 NEW YORK PERFORMANCE PLUS (NNP) - ------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) -- 16.48 15.5800 (1.74) .59 2002 -- 17.11 16.6000 14.44 13.65 2001 -- 15.95 15.3900 15.56 15.01 2000 -- 14.67 14.1250 (.71) 7.45 1999 (.02) 14.65 15.3125 (8.25) (3.65) 1998 -- 16.24 17.7500 .63 7.00 NEW YORK DIVIDEND ADVANTAGE (NAN) - ------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) -- 15.47 14.8500 (.97) .57 2002 -- 15.85 15.4700 13.57 12.95 2001 -- 14.86 14.4400 24.06 16.98 2000 -- 13.42 12.3125 (8.62) 7.82 1999(a) (.12) 13.27 14.3750 (2.76) (5.93) NEW YORK DIVIDEND ADVANTAGE 2 (NXK) - ------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) -- 15.17 14.2400 (.11) .44 2002 -- 15.62 14.7800 8.48 13.67 2001(b) (.13) 14.55 14.4600 (1.29) 4.02 ============================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------ Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ----------------------------- Ratio of Net Ratio 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 ============================================================================================================ NEW YORK VALUE (NNY) Year Ended 9/30 2003(c) $150,519 .88%* 4.32%* .87%* 4.33%* 7% 2002 153,580 .79 4.76 .78 4.76 11 2001 149,138 .76 5.13 .74 5.15 23 2000 143,843 .74 5.52 .73 5.53 33 1999 144,079 .74 5.10 .74 5.10 19 1998 157,086 .75 5.37 .75 5.37 36 NEW YORK PERFORMANCE PLUS (NNP) - ------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) 246,543 1.23* 6.73* 1.22* 6.73* 7 2002 255,890 1.24 7.08 1.23 7.09 19 2001 238,599 1.29 7.47 1.28 7.49 19 2000 219,427 1.29 8.61 1.27 8.63 44 1999 218,751 1.20 7.89 1.19 7.90 22 1998 240,374 1.17 8.10 1.17 8.10 30 NEW YORK DIVIDEND ADVANTAGE (NAN) - ------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) 142,092 1.20* 6.58* .75* 7.03* 4 2002 145,599 1.21 6.76 .75 7.22 11 2001 136,441 1.25 7.01 .78 7.49 18 2000 123,171 1.31 7.89 .79 8.42 19 1999(a) 121,801 1.10* 5.36* .65* 5.81* 25 NEW YORK DIVIDEND ADVANTAGE 2 (NXK) - ------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2003(c) 97,928 1.21* 6.50* .76* 6.95* 3 2002 100,886 1.21 6.69 .74 7.16 16 2001(b) 93,965 1.12* 5.63* .69* 6.06* 11 ============================================================================================================ Preferred Shares at End of Period ---------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================ NEW YORK VALUE (NNY) Year Ended 9/30 2003(c) $ N/A $ N/A $ N/A 2002 N/A N/A N/A 2001 N/A N/A N/A 2000 N/A N/A N/A 1999 N/A N/A N/A 1998 N/A N/A N/A NEW YORK PERFORMANCE PLUS (NNP) - ------------------------------------------------------------- Year Ended 9/30: 2003(c) 124,300 25,000 74,586 2002 124,300 25,000 76,466 2001 124,300 25,000 72,988 2000 124,300 25,000 69,132 1999 124,300 25,000 68,997 1998 104,300 25,000 82,616 NEW YORK DIVIDEND ADVANTAGE (NAN) - ------------------------------------------------------------ Year Ended 9/30: 2003(c) 69,000 25,000 76,483 2002 69,000 25,000 77,753 2001 69,000 25,000 74,435 2000 69,000 25,000 69,627 1999(a) 69,000 25,000 69,131 NEW YORK DIVIDEND ADVANTAGE 2 (NXK) - ------------------------------------------------------------ Year Ended 9/30: 2003(c) 47,000 25,000 77,090 2002 47,000 25,000 78,663 2001(b) 47,000 25,000 74,981 ============================================================ N/A Fund is not authorized to issue Preferred shares. * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. 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 May 26, 1999 (commencement of operations) through September 30,1999. (b) For the period March 28, 2001 (commencement of operations) through September 30, 2001. (c) For the six months ended March 31, 2003. See accompanying notes to financial statements. 42-43 SPREAD
Build Your Wealth AUTOMATICALLY SIDEBAR TEXT: 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 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. FLEXIBILITY 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. 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. 44 Fund INFORMATION BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 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 Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL POLICY CHANGE On November 14, 2002, the Board adopted a policy that allows these Funds, in addition to investments in municipal bonds, to invest up to 5% of its net assets (including assets attributable to preferred shares, if any) in tax-exempt or taxable fixed-income securities or equity securities for the purpose of acquiring control of an issuer whose municipal bonds (a) the Fund already owns and (b) have deteriorated or are expected shortly to deteriorate significantly in credit quality, provided Nuveen Advisory determines that such investment should enable the Fund to better maximize the value of its existing investment in such issuer. This policy is a non-fundamental policy of each Fund which means that it can be changed at any time by the Board of Trustees without vote of the shareholders. 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 (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. Average Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. 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 a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. 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 NAV is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. 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. - --------- Each Fund intends to repurchase shares of its own common or preferred stock, where applicable, in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six-month period ended March 31, 2003. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 45 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. A premier asset management firm managing $80 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 tax-free 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. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. Distributed by NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 | www.nuveen.com ESA-A-0303D -----END PRIVACY-ENHANCED MESSAGE-----