-----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, BMc9snKhczoTfCcH4odZ8OoDmJMMPk7zGhWzXS27LCxw+6ErcLO+TTDtEqvvgvPt K8MM+6+G8HUdY5IQLeX3vQ== 0000891804-01-501250.txt : 20010704 0000891804-01-501250.hdr.sgml : 20010704 ACCESSION NUMBER: 0000891804-01-501250 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010430 FILED AS OF DATE: 20010703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND CENTRAL INDEX KEY: 0001083839 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-09297 FILM NUMBER: 1674256 BUSINESS ADDRESS: STREET 1: JOHN NUVEEN & CO STREET 2: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 MAIL ADDRESS: STREET 1: JOHN NUVEEN & CO STREET 2: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 N-30D 1 nv24580ed.txt FSA-2-4-01 Semiannual Report April 30, 2001 Logo: NUVEEN Investments Municipal Closed-End Exchange-Traded Funds Dependable, tax-free income to help you keep more of what you earn. PERFORMANCE PLUS NPP MUNICIPAL ADVANTAGE NMA MARKET OPPORTUNITY NMO DIVIDEND ADVANTAGE NAD DIVIDEND ADVANTAGE 2 NXZ photo: 2 men & child photo: 2 men & horse Invest well. Look ahead. LEAVE YOUR MARK.(SM) photo: blue sky photo: hand on PC mouse. LESS MAIL, MORE FREEDOM WITH ONLINE FUND REPORTS There is a new way to receive your Nuveen Fund updates faster than ever. Nuveen now can link you with electronic versions of the important financial information we send you by regular mail. By registering for online access via the internet, you will be able to view and save the Fund information you currently receive in the mail. This information can be stored on your computer and retrieved any time. In addition, you can select only the specific pages you want to view or print. With this new service, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click your computer mouse on the internet address provided. You'll be saving time, as well as saving your Fund paper, printing and distribution expenses. Registering for electronic access is easy and only takes a few minutes. (see box on right) The e-mail address you provide is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. SIGN UP TODAY-- Here's what you need to do... If your Nuveen Fund dividends are PAID TO YOUR BROKERAGE ACCOUNT, follow the steps outlined below: 1 Go to www.investordelivery.com 2 Look at the address sheet that accompanied this report. Enter the personal 13-character enrollment number imprinted near your name on the address sheet. 3 You'll be taken to a page with several options. Select the New Enrollment-Create screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN 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 e-mail 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 COME DIRECTLY TO YOU FROM NUVEEN, follow the steps outlined below: 1 Go to www.nuveen.com 2 Select the Exchange-Traded Funds section, then click on Tools. Select the E-Report Enrollment option. 3 You'll be taken to a screen that asks for your social security number and e-mail address. Fill in this information, then click Submit. 4 Confirm the information you entered is correct, then click Submit again. 5 You should get a confirmation e-mail 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. Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "Your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy." Dear Shareholder I am pleased to have this opportunity to report on the recent performance of your Nuveen Fund. During the period covered by this report, your Fund continued to meet its primary objective of providing you with attractive monthly tax-free income from a portfolio of quality municipal bonds. Detailed information on your Fund can be found in the Portfolio Managers' Comments and Performance Overview sections later in this report. I urge you to take the time to read them. I am especially pleased to welcome shareholders of our newest Fund, Dividend Advantage 2, to the Nuveen investor family. While your Fund is too new to provide a separate Performance Overview page, we have included some preliminary portfolio information in this report. We look forward to providing a detailed performance review in our next shareholder report. In addition to providing you with steady tax-free income, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and judicious trading by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In turbulent times like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. With strong long-term performance achieved through consistent, disciplined professional management, your Nuveen Fund also illustrates the power of taking a long-term view toward financial growth and success. Invest Well.Look Ahead.Leave Your Mark. Today, perhaps more than ever, investors have the ability to make a lasting impact on their families and their world for generations to come. For more than 100 years, Nuveen has specialized in offering quality investments such as the Nuveen Funds to those seeking to accumulate and preserve wealth and establish a lasting legacy. Our mission continues to be to provide assistance to you and your financial advisor by offering the investment services and products that can help you leave your mark. We thank you for continuing to choose Nuveen Investments as your partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 15, 2001 Sidebar text: "Today, perhaps more than ever, investors have the ability to make a lasting impact on their families and their world for generations to come." Nuveen National Municipal Closed-End Exchange-Traded Funds (NPP, NMA, NMO, NAD, NXZ) Portfolio Manager's Comments Portfolio managers Bill Fitzgerald, Steve Peterson, Rick Huber and Tom Spalding discuss national economic and market conditions, key investment strategies, and the performance of the Nuveen Municipal Closed-End Exchange-Traded Funds. Bill, who has 13 years of experience with Nuveen, has managed NMO since 1990. Steve, also a 13-year Nuveen veteran, has managed NPP since 1998, the same year Rick, a 15-year veteran, took over management of NMA. Steve also has managed NAD since its inception in 1999. Tom Spalding, a 25-year Nuveen veteran, assumed portfolio management responsibility for the new Nuveen Dividend Advantage Municipal Fund 2 (NXZ) upon its inception in March 2001. WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? The major factors affecting the economy and the municipal market over the past twelve months were the Federal Reserve's reductions in short-term interest rates and a generally slower rate of economic growth. In January 2001, the Fed began a series of fed funds rate cuts that brought this benchmark rate to 4.50% by the close of the reporting period. (The Fed reduced rates by another 50 basis points on May 15, bringing the federal funds rate to 4.00%, its lowest level since 1994.) The consensus among many market observers is that the Fed is poised to continue easing rates as long as signs of a significant economic slowdown remain. In the municipal market, continued tight new issue supply helped many bonds perform well. Generally positive economic conditions over the past decade enabled more cities and states to use pay-as-you-go funding for necessary projects, rather than financing obtained through new issuance. On the demand side, municipal bonds continued to be highly sought after by individual investors looking for diversification, tax-free income, and an alternative to a volatile stock market. As a result, municipal bond prices trended generally higher over this reporting period. Nevertheless, we believe the municipal market continued to represent good value. As of April 30, 2001, long-term municipal yields were 97% of 30-year Treasury yields, compared with 101% in April 2000. HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS? For the year ended April 30, 2001, the Nuveen Municipal Closed-End Exchange-Traded Funds produced total returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and the Funds' Lipper Peer Group2 are also presented. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ---------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 4/30/01 EQUIVALENT3 4/30/01 4/30/01 4/30/01 - ---------------------------------------------------------------- NPP 5.86% 8.49% 13.70% 10.37% 12.00% - ---------------------------------------------------------------- NMA 5.98% 8.67% 13.74% 10.37% 12.00% - ---------------------------------------------------------------- NMO 6.06% 8.78% 11.85% 10.37% 12.00% - ---------------------------------------------------------------- NAD 5.97% 8.65% 15.78% 10.37% 12.00% - ---------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Since mid-2000, the combination of relatively tight municipal supply, Fed easing and generally favorable technicals produced a generally positive total return environment. The Funds' participation in this recovery is reflected in the total returns on NAV listed in the previous table. During the twelve months ended April 30, 2001, the yield on the Bond Buyer 25 Revenue Bond Index fell from 6.07% to 5.63%. In this environment of falling yields (and rising bond values), funds with longer durations4 would be expected to perform well. As of April 30, 2001, the durations of NPP, NMA and NMO ranged from 11.92 to 12.67, compared with 7.60 for the unleveraged Lehman Brothers Municipal Bond Index. NAD, which was established in May 1999, had a duration of 15.01, which served as the main driver of its performance in this market environment. While NXZ's initial investment process was not completed by the end of the reporting period, we expect it will 1 The Funds' performances are compared with that of the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The Funds' total returns are compared with the average annualized return of the 53 funds in the Lipper General Leveraged 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 federal income tax rate of 31%. 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. Unless otherwise noted, references to duration in this commentary are intended to indicate Fund duration. have a relatively long duration characteristic of a new Fund once this process is completed. HOW DID THIS ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? All of these Funds use leverage as a way to potentially enhance the dividends paid to common shareholders. This benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. In 1999 and 2000, as the Federal Reserve increased short-term rates, the dividends paid to MuniPreferred shareholders grew. This, combined with the pressure of bond calls in several of the Funds, was sufficient to cause decreases in common share dividends during 2000. With the recent decline in short-term rates, the Funds have more income remained with which to pay common shareholder dividends. As a result, we were able to increase the common share dividends of NPP in March 2001 and NAD in both December 2000 and March 2001. In the coming months, lower short-term rates should continue to have beneficial effects on the Funds' income by further reducing the amount the Funds pay their MuniPreferred shareholders. This, in turn, should help dividend stability in the face of continuing bond calls within several of these portfolios. Recently, many investors have again turned to tax-free fixed-income investments as a way to add balance to their portfolios and reduce overall risk. As a result, the share prices of these Funds improved (see the charts on the individual Performance Overview pages). As investors recognized the opportunity offered by these Nuveen Funds, robust demand caused the discount (share price below NAV) on NAD to move to a premium (share price above NAV), while the discounts on the other Funds narrowed significantly over the past twelve months. NXZ has consistently traded at a premium since its inception. With the market prices of NPP, NMA, and NMO remaining lower than the actual value of the bonds in their portfolios, shareholders may want to consider taking advantage of this opportunity to add to their holdings of these Nuveen Funds. WHAT KEY STRATEGIES WERE USED TO MANAGE THE NATIONAL NUVEEN FUNDS DURING THE YEAR ENDED APRIL 30, 2001? As evidenced by their strong twelve-month total returns on NAV, these Nuveen Funds were well structured going into this period. Despite the tight supply of new municipal issuance during most of the past year, the Funds continued to meet their goal of keeping assets fully invested and working for shareholders. However, lower supply also meant relatively fewer opportunities to make trades that would substantially enhance the Funds' holdings. As issuance did become available in the market, we focused on strengthening long-term dividend-payment capabilities, enhancing call protection, and purchasing bonds with the potential to add value and diversification to the Funds' portfolios. One of the sectors where we found value was healthcare, where change has created opportunities in selected hospital issues. This is an area where the expertise of Nuveen research analysts is instrumental in helping us find and understand the issuers offering the best upside potential for our Funds. During the past twelve months, the healthcare sector was one of our top performers, and the Funds benefited from their weightings in this sector, which ranked among the top five holdings in each Fund except NXZ. Another area of the market that we are watching closely is independent power plants, due to supply-and-demand dynamics now facing the electricity industry. This is an area we believe holds significant potential, and over the past year we have added several of these issues to NPP. The transportation sector, which saw heavier issuance than most of the municipal market, also provided several opportunities to take advantage of widening spreads. As airports try to find solutions to overcrowding and delay problems through the addition of runways and expanded facilities, we expect to see this level of issuance continue and even increase. In NMO, we purchased several bonds issued for airports including Chicago, Indianapolis, Denver, and Dallas. NMO also recently leveraged Nuveen staff expertise in the complexities of tobacco-backed credits in purchasing a block of A1 rated South Carolina tobacco bonds secured by the 1998 $250 billion master settlement agreement between four major tobacco companies and 46 states. NMO also continues to hold bonds issued by Erie County, New York, for the CanFibre project in Lackawanna, which has been affected by the bankruptcy of the facility's general contractor. These bonds have continued to meet their interest payments, and we are monitoring this holding very closely to try to ensure that any eventual resolution serves the best interests of our shareholders. As NPP, NMA, and NMO worked through significant bond call exposure over the past couple of years, we focused on strategically managing the durations of these three Funds to counter the effects of the call process and keep the Funds' durations well positioned to take advantage of market gains. In NMA, these strategies included purchasing short sinking funds with average lives of five to ten years to balance the new bonds being added from the long end of the yield curve using call proceeds. We also continued to work to shorten the duration of NAD to bring it more into alignment with its peers. NPP, NMA and NMO have been reducing their holdings in U.S. guaranteed bonds. At the end of April 2000, this sector accounted for 17% of NPP and 11% of both NMA and NMO. By April 30, 2001, this allocation had been reduced to 12% in NPP, 4% in NMO, and 7% in NMA. As part of our strategy to enhance the call protection of the Funds, we continue to carefully assess opportunities to sell these bonds as we find attractive long-term reinvestment alternatives in the marketplace. NPP, NMA, NMO and NAD all continued to offer excellent credit quality, with between 70% and 81% of their portfolios invested in bonds rated AAA/U.S. guaranteed and AA as of April 30, 2001. The Funds also had allocations of BBB and non-rated bonds that ranged from 9% to 17%, which generally provided higher yields during 2000. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS IN PARTICULAR? Overall, our outlook for the fixed-income markets during the next twelve months continues to be positive. Demand for tax-exempt municipal bonds is anticipated to remain strong, as investors look for ways to rebalance their portfolios and reduce potential risk. If interest rates continue to fall and the pace of refundings accelerates, new municipal issuance nationwide in 2001 could exceed $200 billion and provide new investment opportunities. We will, of course, continue to closely monitor the economy, including Federal Reserve policies and the impact of the tax reduction bill, in order to be prepared to respond appropriately to any developing situations. Looking specifically at these Nuveen Funds, all of the Funds offer excellent call protection for the remainder of 2001, with the portion of callable bonds ranging from 1% of NAD's portfolio to 6% of NMO. In 2002 and 2003, this level of protection continues, with possible calls ranging from zero to about 12% of the Funds' portfolios, depending on the interest rate environment during this period. In general, we believe these levels are manageable, and we foresee no problems in working through them. While we cannot control the direction of interest rates, we continue to work to reduce the Funds' call exposure and to actively manage the Funds to mitigate the longer-term effects of the bond call process. This includes selling bonds with short call dates and pre- refunded bonds with short maturities at attractive points of the interest rate cycle. In reinvesting the proceeds from these sales as well as any calls, we are looking to the longer end of yield curve as one way to enhance future call protection. As value-oriented investors, we also plan to continue to look for areas of the market that can add value for our shareholders and strengthen the Funds' dividend-payment capabilities. Over the next twelve months, we expect these to include the healthcare sector, tobacco bonds, and more generally, among bonds rated A and BBB. We will also continue to manage the Funds' durations to keep them well positioned to take advantage of market opportunities. We believe these Nuveen Funds will continue to play an important role in investors' long-range financial programs, providing balance and diversification, dependable tax-free income, and quality investments. Nuveen Performance Plus Municipal Fund, Inc. Performance Overview As of April 30, 2001 NPP Pie Chart: Credit Quality AAA/U.S. Guaranteed 66% AA 15% A 10% BBB 5% NR 4% PORTFOLIO STATISTICS ==================================================== Share Price $14.03 - ---------------------------------------------------- Net Asset Value $14.74 - ---------------------------------------------------- Market Yield 5.86% - ---------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.49% - ---------------------------------------------------- Fund Net Assets ($000) $1,327,387 - ---------------------------------------------------- Average Effective Maturity (Years) 19.06 - ---------------------------------------------------- Leverage-Adjusted Duration 12.67 ==================================================== ANNUALIZED TOTAL RETURN (Inception 6/89) ==================================================== ON SHARE PRICE ON NAV ==================================================== 1-Year 26.45% 13.70% - ---------------------------------------------------- 5-Year 5.43% 6.29% - ---------------------------------------------------- 10-Year 6.59% 7.42% ==================================================== TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) ==================================================== Tax Obligation/Limited 14% - ---------------------------------------------------- Utilities 13% - ---------------------------------------------------- U.S. Guaranteed 12% - ---------------------------------------------------- Tax Obligation/General 11% - ---------------------------------------------------- Healthcare 11% ==================================================== Bar Chart: 2000-2001 Monthly Tax-Free Dividends Per Share2 5/00 0.072 6/00 0.067 7/00 0.067 8/00 0.067 9/00 0.067 10/00 0.067 11/00 0.067 12/00 0.067 1/01 0.067 2/01 0.067 3/01 0.0685 4/01 0.0685 Line Chart: Share Price Performance 5/5/00 11.69 11.44 11.56 11.75 12.19 11.94 11.88 11.81 12 12.25 12.13 12.31 12.44 12.5 12.75 12.63 12.69 12.81 12.88 12.56 12.25 12.25 12.31 12.25 12.13 12.19 12.31 12.13 11.94 12.31 12.44 12.44 12.88 13.19 13.75 13.94 14 13.88 13.9 13.96 13.69 13.65 13.72 13.83 13.69 13.76 13.94 13.72 13.84 13.92 4/30/01 14 Weekly Closing Price Past performance is not predictive of future results. 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 31%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2000 of $0.0019 per share. Nuveen Municipal Advantage Fund, Inc. Performance Overview As of April 30, 2001 NMA Pie Chart: Credit Quality AAA/U.S. Guaranteed 64% AA 17% A 7% BBB 11% NR 1% PORTFOLIO STATISTICS ==================================================== Share Price $14.05 - ---------------------------------------------------- Net Asset Value $14.91 - ---------------------------------------------------- Market Yield 5.98% - ---------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.67% - ---------------------------------------------------- Fund Net Assets ($000) $998,970 - ---------------------------------------------------- Average Effective Maturity (Years) 22.51 - ---------------------------------------------------- Leverage-Adjusted Duration 12.42 ==================================================== ANNUALIZED TOTAL RETURN (Inception 12/89) ==================================================== ON SHARE PRICE ON NAV ==================================================== 1-Year 23.77% 13.74% - ---------------------------------------------------- 5-Year 5.52% 6.33% - ---------------------------------------------------- 10-Year 6.35% 7.58% ==================================================== TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) ==================================================== Housing/Single Family 17% - ---------------------------------------------------- Healthcare 16% - ---------------------------------------------------- Utilities 12% - ---------------------------------------------------- Tax Obligation/Limited 12% - ---------------------------------------------------- Transportation 10% ==================================================== Bar Chart: 2000-2001 Monthly Tax-Free Dividends Per Share2 5/00 0.077 6/00 0.072 7/00 0.072 8/00 0.072 9/00 0.072 10/00 0.072 11/00 0.072 12/00 0.07 1/01 0.07 2/01 0.07 3/01 0.07 4/01 0.07 Line Chart: Share Price Performance 5/5/00 12.38 12.13 12.38 12.44 12.75 12.31 12.31 12.38 12.56 12.75 12.75 12.81 13.06 12.81 12.94 12.94 13.06 13.25 13.25 13.06 12.94 13 12.75 12.69 12.44 12.56 12.88 12.81 12.63 12.5 12.63 12.88 13.06 13.25 13.81 13.81 14.06 14.13 14.3 14.19 14.14 14.12 14.24 14.45 14.07 13.94 14.2 14.07 13.95 14.22 4/30/01 14.1 Weekly Closing Price Past performance is not predictive of future results. 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 31%. 2 The Fund also paid shareholders capital gains and net ordinary income distribution in December 2000 of $0.0928 per share. Nuveen Municipal Market Opportunity Fund, Inc. Performance Overview As of April 30, 2001 NMO Pie Chart: Credit Quality AAA/U.S. Guaranteed 55% AA 15% A 16% BBB 12% NR 2% PORTFOLIO STATISTICS ==================================================== Share Price $14.25 - ---------------------------------------------------- Net Asset Value $14.69 - ---------------------------------------------------- Market Yield 6.06% - ---------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.78% - ---------------------------------------------------- Fund Net Assets ($000) $1,049,079 - ---------------------------------------------------- Average Effective Maturity (Years) 22.00 - ---------------------------------------------------- Leverage-Adjusted Duration 11.92 ==================================================== ANNUALIZED TOTAL RETURN (Inception 3/90) ==================================================== ON SHARE PRICE ON NAV ==================================================== 1-Year 22.52% 11.85% - ---------------------------------------------------- 5-Year 5.65% 5.67% - ---------------------------------------------------- 10-Year 6.50% 7.25% ==================================================== TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) ==================================================== Transportation 23% - ---------------------------------------------------- Tax Obligation/Limited 19% - ---------------------------------------------------- Tax Obligation/General 18% - ---------------------------------------------------- Healthcare 10% - ---------------------------------------------------- Utilities 6% ==================================================== Bar Chart: 2000-2001 Monthly Tax-Free Dividends Per Share2 5/00 0.078 6/00 0.075 7/00 0.075 8/00 0.075 9/00 0.075 10/00 0.075 11/00 0.075 12/00 0.072 1/01 0.072 2/01 0.072 3/01 0.072 4/01 0.072 Line Chart: Share Price Performance 5/5/00 12.5 12.25 12.38 12.44 12.75 12.69 12.63 12.69 12.94 13.31 13.25 13.19 13.25 13 13.44 13.31 13.5 13.63 13.56 13.5 13.38 13.31 13.25 12.88 12.63 12.81 13.19 12.81 12.94 12.94 13 12.81 13.06 13.5 13.94 14.13 14.31 14.5 14.53 14.4 14.32 14.16 14.32 14.4 14.14 13.78 14 14 14.07 14 4/30/01 14.21 Weekly Closing Price Past performance is not predictive of future results. 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 31%. 2 The Fund also paid shareholders a capital gains distribution in December 2000 of $0.0259 per share. Nuveen Dividend Advantage Municipal Fund Performance Overview As of April 30, 2001 NAD Pie Chart: Credit Quality AAA/U.S. Guaranteed 59% AA 17% A 2% BBB 5% NR 12% Other 5% PORTFOLIO STATISTICS ==================================================== Share Price $14.77 - ---------------------------------------------------- Net Asset Value $14.01 - ---------------------------------------------------- Market Yield 5.97% - ---------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.65% - ---------------------------------------------------- Fund Net Assets ($000) $843,403 - ---------------------------------------------------- Average Effective Maturity (Years) 20.95 - ---------------------------------------------------- Leverage-Adjusted Duration 15.01 ==================================================== ANNUALIZED TOTAL RETURN (Inception 5/99) ==================================================== ON SHARE PRICE ON NAV ==================================================== 1-Year 27.79% 15.78% - ---------------------------------------------------- Since Inception 5.50% 5.08% ==================================================== TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) ==================================================== Healthcare 20% - ---------------------------------------------------- Tax Obligation/Limited 18% - ---------------------------------------------------- Tax Obligation/General 15% - ---------------------------------------------------- Transportation 13% - ---------------------------------------------------- Utilities 9% ==================================================== Bar Chart: 2000-2001 Monthly Tax-Free Dividends Per Share 5/00 0.0725 6/00 0.0695 7/00 0.0695 8/00 0.0695 9/00 0.0695 10/00 0.0695 11/00 0.0695 12/00 0.0705 1/01 0.0705 2/01 0.0705 3/01 0.0735 4/01 0.0735 Line Chart: Share Price Performance 5/5/00 12.75 12.06 11.94 12 12.38 12.56 12.38 12.19 12.25 12.5 12.38 12.25 12.31 13 13.06 12.94 12.81 12.88 13 12.88 12.88 13.13 12.88 12.69 12.44 12.44 12.94 12.75 13 13.13 13.63 13.69 13.75 13.94 14.5 14.5 14.63 14.69 14.78 14.77 14.32 14.21 14.84 14.79 14.72 14.5 14.65 14.75 14.7 14.8 4/30/01 14.76 Weekly Closing Price Past performance is not predictive of future results. 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 31%. Nuveen Performance Plus Municipal Fund, Inc. (NPP) Portfolio of Investments April 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.1% $ 3,615 Alabama Water Pollution Control Authority, Revolving Fund Loan 8/05 at 100 AAA $ 3,925,239 Bonds, Series 1994, 6.750%, 8/15/17 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997-A: 5,075 5.625%, 2/01/22 2/07 at 101 AAA 5,147,674 5,325 5.375%, 2/01/27 2/07 at 100 AAA 5,258,704 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.0% 410 Alaska Housing Finance Corporation, Collateralized Bonds, 6/01 at 101 AAA 412,804 1989 First Series (Veterans Mortgage Program), 7.450%, 12/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.4% 5,155 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101 1/2 N/R*** 5,516,005 No. 1 of Yuma County, Arizona, HospitalRevenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.1% 11,000 Anaheim Public Financing Authority, Lease Revenue Bonds No Opt. Call AAA 3,741,980 (Anaheim Public Improvements Project), Subordinate Lease Revenue Bonds, 1997 Series C, 0.000%, 9/01/20 7,475 California Housing Finance Agency, Home Mortgage Revenue 2/10 at 24 5/8 AAA 1,093,518 Bonds, Series 2000F, 0.000%, 8/01/31(Alternative Minimum Tax) 1,000 Mt. Diablo Hospital District, California Insured Hospital 12/03 at 102 AAA 985,480 Revenue Bonds, 1993 Series A, 5.125%, 12/01/23 13,450 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA 16,710,953 County, California), 1995 Revenue Refunding Bonds (Ontario Redevelopment Project No.1), 7.200%, 8/01/17 20,420 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 23,126,263 Residential Mortgage Revenue Refunding Bonds, 1991 Series A, 7.150%, 2/01/10 2,325 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 3,010,364 Restructured Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) 10,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102 AAA 10,887,300 Series 1995 (Medical Center Financing Project), 5.500%, 8/01/15 (Pre-refunded to 8/01/05) 2,000 Airport Commission, City and County of San Francisco, California, 5/09 at 101 AAA 1,924,100 San Francisco International Airport, Second Series Revenue Bonds, Issue 23B Bonds, 5.125%, 5/01/30 15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103 AAA 18,886,757 California, General Obligation Refunding Bonds, Series 1997A, 7.200%, 2/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 2.2% 3,790 City and County of Denver, Colorado, Airport System Revenue 11/07 at 101 AAA 3,709,046 Bonds, Series 1997E, 5.250%, 11/15/23 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 1,020 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,096,286 3,980 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 4,218,243 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 1,000 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 1,020,310 3,720 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,775,391 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 5,145 8.750%, 11/15/05 (Alternative Minimum Tax) 11/01 at 102 A 5,376,937 1,715 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,799,172 4,755 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 4,954,995 955 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 979,324 2,640 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 2,689,025 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.0% $ 4,905 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/10 at 100 AAA $ 5,011,537 Bonds, 2000 Series 11, 5.850%, 1/01/22 (Alternative Minimum Tax) 10,050 State Board of Education of Florida, Full Faith and Credit, 6/10 at 101 AA+ 10,467,075 Public Education Capital Outlay Refunding Bonds, 1999 Series D, 5.750%, 6/01/22 10,750 Martin County Industrial Development Authority, Florida, 12/04 at 102 BBB- 11,172,260 Industrial Development Revenue Bonds, (Indiantown Cogeneration LP Project), Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.9% 4,920 City of Atlanta (Georgia), Airport General Revenue and 1/10 at 101 AAA 5,015,005 Refunding Bonds, Series 2000A, 5.600%,1/01/30 5,000 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, No Opt. Call AAA 5,189,500 Series 1999A, 5.500%, 11/01/22 2,000 George L. Smith II World Congress Center Authority, Refunding 7/10 at 101 AAA 2,008,340 Revenue Bonds (Domed Stadium Project), Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) 1,175 Georgia Housing and Finance Authority, Home Ownership 6/02 at 102 Aa 1,205,820 Opportunity Program Bonds, Series 1992-A2, 6.875%, 12/01/20 (Alternative Minimum Tax) 10,000 Development Authority of Monroe County (Georgia), Pollution 10/01 at 100 A+ 10,054,800 Control Revenue Bonds (Georgia Power Company Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24 15,000 Private Colleges and Universities Authority (Georgia), 11/09 at 101 Aa1 15,151,350 Revenue Bonds (Emory University Project), Series 1999A, 5.500%, 11/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.2% 1,530 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100 Aa2 1,574,263 Bonds, 2000 Series G2, 5.950%, 7/01/25 (Alternative Minimum Tax) 1,335 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100 A1 1,403,699 Bonds, 2000 Series D, 6.200%,7/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.7% 3,000 City of Chicago (Illinois), General Obligation Library Bonds, 1/08 at 102 AAA 3,119,040 Series 1997, 5.750%, 1/01/17 City of Chicago (Illinois), General Obligation Bonds (City Colleges of Chicago Capital Improvement Project), Series 1999: 32,170 0.000%, 1/01/21 No Opt. Call AAA 10,528,598 32,670 0.000%, 1/01/22 No Opt. Call AAA 10,061,380 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A: 10,000 0.000%, 12/01/19 No Opt. Call AAA 3,428,000 21,800 0.000%, 12/01/23 No Opt. Call AAA 5,820,382 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1999A: 10,000 0.000%, 12/01/20 No Opt. Call AAA 3,239,800 30,160 0.000%, 12/01/22 No Opt. Call AAA 8,618,220 9,145 City of Chicago, Chicago-Midway Airport Revenue Bonds, 1/07 at 101 AAA 9,111,987 Series 1996A, 5.500%, 1/01/29 Forest Preserve District of DuPage County, Illinois, General Obligation Limited Tax Bonds, Series 2000: 8,000 0.000%, 11/01/18 No Opt. Call AAA 3,074,000 15,285 0.000%, 11/01/19 No Opt. Call AAA 5,511,007 3,500 Illinois Development Finance Authority, Pollution Control 3/05 at 102 AAA 3,875,900 Refunding Revenue Bonds (Commonwealth Edison Company Project), Series 1994D, 6.750%, 3/01/15 Illinois Development Finance Authority, Multifamily Housing Revenue Bonds, Series 1992 (Town and Garden Apartments Project): 4,155 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 N/R 4,294,733 5,960 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 N/R 6,131,708 10,000 Illinois Educational Facilities Authority, Adjustable Demand 12/03 at 102 AAA 10,728,400 Revenue Bonds, The University of Chicago, Series 1985 Remarketed, 5.700%, 12/01/25 (Pre-refunded to 12/01/03) 12,910 Illinois Health Facilities Authority, Revenue Bonds, 8/04 at 102 AA+ 13,104,037 Series 1994A (Northwestern Memorial Hospital), 6.000%, 8/15/24 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 4,620 Illinois Health Facilities Authority (Northwestern Memorial 8/01 at 100 AA+ $ 4,671,097 Hospital), Revenue Bonds, Series 1989B, 7.200%, 8/15/07 3,835 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/09 at 101 A- 3,586,339 Series 1999 (Silver Cross Hospital and Medical Centers), 5.250%, 8/15/15 4,750 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/08 at 102 A 4,398,738 Series 1998 (Midwest Physician Group Ltd.), 5.500%, 11/15/19 3,570 Illinois Health Facilities Authority, Tax-Exempt Revenue Bonds, 12/12 at 102 AAA 3,851,744 Series 1999A (GNMA Collateralized - Midwest Care Center IV, Inc.), 6.375%, 12/01/24 4,580 Illinois Health Facilities Authority, GNMA Collateralized 8/10 at 102 Aaa 4,774,558 Series 2000 (Midwest Care Center IX), 6.250%, 8/20/35 4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/01 at 102 Baa3 3,605,112 Series 1991 (Proctor Community Hospital Project), 7.375%, 1/01/23 3,700 Village of Libertyville, Illinois, Affordable Housing Revenue 11/09 at 100 A2 3,744,807 Bonds, Series 1999A (Liberty Towers Project), 7.000%, 11/01/29 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Refunding Bonds, Series 1996A: 16,570 0.000%, 12/15/20 No Opt. Call AAA 5,415,905 23,550 0.000%, 12/15/22 No Opt. Call AAA 6,796,530 23,575 0.000%, 12/15/23 No Opt. Call AAA 6,409,571 10,280 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 10,610,399 McCormick Place Expansion Project Refunding Bonds, Series 1998A, 5.500%, 12/15/23 10,650 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 13,140,716 McCormick Place Hospitality Facilities Revenue Bonds, Series 1996A, 7.000%, 7/01/26 17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 19,011,754 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999, 5.750%, 6/01/23 6,090 Sherman, Illinois, Mortgage Revenue Bonds (Villa Vianney), 10/09 at 102 AAA 6,325,500 GNMA Series 1999 Refunding, 6.450%, 10/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.5% 3,750 Fort Wayne International Airport, Air Trade Center Building 1/08 at 101 Aaa 3,515,663 Corporation (Allen County, Indiana), First Mortgage Bonds, Series 1998, 5.000%, 1/15/20 (Alternative Minimum Tax) 5,000 Fort Wayne South Side School Building Corporation, First 1/04 at 102 AAA 5,404,700 Mortgage Bonds, Series 1994, Allen County, Indiana, 6.125%, 1/15/12 (Pre-refunded to 1/15/04) 5,250 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/04 at 102 AAA 5,477,063 Series 1994A, Guarantee Revenue Bonds, 6.000%, 2/01/16 14,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101 1/2 AAA 13,829,200 Revenue Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 Indiana Health Facility Financing Authority, Revenue Bonds, Series 1997 (Ancilla Systems Incorporated Obligated Group): 15,380 5.250%, 7/01/17 7/07 at 101 AAA 15,189,134 4,320 5.250%, 7/01/22 7/07 at 101 AAA 4,316,933 6,000 5.250%, 7/01/22 7/07 at 101 AAA 5,780,580 4,980 Indiana Municipal Power Agency, Special Obligation Bonds, 11/02 at 100 AAA 4,947,032 First Crossover Series and Power Supply System Refunding Revenue Bonds, 1998 Series B, 5.300%, 1/01/16 (Pre-refunded to 11/26/02) 8,000 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100 AA 7,924,160 Bonds, Series 2000, 5.375%, 12/01/25 5,730 Michigan City School Building Corporation, First Mortgage 12/04 at 102 AAA 6,254,410 Bonds, Series 1994A, LaPorte and Porter Counties, Indiana, 6.125%, 12/15/09 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.3% 4,025 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, 5/01 at 100 Aaa 4,030,716 1988 Issue B (GNMA Mortgage-Backed Securities Program), 8.250%, 5/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% 5,790 Sedgwick County Unified School District No. 259, Wichita, 9/10 at 100 AA 4,679,189 Kansas, General Obligation Bonds, Series 2000, 3.500%, 9/01/17 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.3% $ 10,000 County of Carroll, Kentucky, Collateralized Pollution Control 9/02 at 102 A1 $10,582,700 Revenue Bonds (Kentucky UtilitiesCompany Project), 1992 Series A, 7.450%, 9/15/16 3,700 Louisville and Jefferson County Metropolitan Sewer District 5/07 at 101 AAA 3,943,090 (Commonwealth of Kentucky), Sewer and Drainage System Revenue Bonds, Series 1997A, 6.250%, 5/15/26 2,605 County of Trimble, Kentucky, Pollution Control Revenue Bonds, 9/02 at 102 AAA 2,734,990 1990 Series B (Louisville Gas and Electric Company Project), 6.550%, 11/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.2% 4,035 East Baton Rouge Mortgage Finance Authority, Single Family 10/07 at 102 Aaa 4,104,765 Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1997B-1, 5.750%, 10/01/26 35,700 Louisiana Stadium and Exposition District, Hotel Occupancy Tax 7/06 at 102 AAA 39,232,872 Bonds, Series 1996, 5.750%, 7/01/26 (Pre-refunded to 7/01/06) 5,630 New Orleans Housing Development Corporation, Multifamily 6/03 at 100 AAA 5,817,986 Housing Revenue Refunding Bonds, Series 1990A (Curran Place Apartments/Fannie Mae Collateralized), 7.700%, 8/01/23 6,500 City of Shreveport, State of Louisiana, Water and Sewer 6/03 at 103 AAA 6,817,590 Revenue Bonds, 1986 Series A, 5.950%, 12/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.7% 9,000 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102 AA 9,070,560 1994 Series A, 5.700%, 11/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.4% 2,000 Community Development Administration, Maryland Department of 9/10 at 100 Aa2 2,012,700 Housing and Community Development, Residential Revenue Bonds, Series H, 5.800%, 9/01/32 (Alternative Minimum Tax) 7,475 Housing Opportunities Commission of Montgomery County 7/04 at 102 Aa2 7,730,346 (Maryland), Multifamily Housing Revenue Bonds, 1994 Series A, 6.250%, 7/01/28 7,090 City of Takoma Park, Maryland, Hospital Facilities Refunding No Opt. Call AAA 8,177,464 and Improvement Revenue Bonds (Washington Adventist Hospital), Series 1995, 6.500%, 9/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.1% 2,280 Massachusetts Educational Financing Authority, Education Loan 12/10 at 101 AAA 2,420,790 Revenue and Refunding Bonds, Issue G, Series 2000A, 5.700%, 12/01/11 (Alternative Minimum Tax) 350 Massachusetts Municipal Wholesale Electric Company, Power No Opt. Call BBB+ 390,456 Supply System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18 10,100 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 10,519,251 Revenue Bonds, New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25 1,420 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 Aaa 1,238,638 Revenue Bonds, Southcoast Health System Obligated Group Issue, Series A, 4.750%, 7/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.6% 17,000 School District of the City of Birmingham, County of Oakland, 11/07 at 100 AAA 15,360,520 State of Michigan, School Building and Site Bonds, Series 1998, 4.750%, 11/01/24 9,500 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101 AAA 9,030,225 (Senior Lien) Bonds, Series 1997-A, 5.000%, 7/01/21 4,105 Grand Rapids Housing Corporation, Multifamily Revenue 1/04 at 104 AAA 4,251,507 Refunding Bonds, Series 1992 (FHA-Insured Mortgage Loan - Section 8 Assisted Elderly Project), 7.375%, 7/15/41 4,030 City of Hancock Hospital Finance Authority, FHA-Insured 8/08 at 100 AAA 3,928,766 Mortgage Hospital Revenue Bonds (Portage Health System, Inc.), Series 1998, 5.450%, 8/01/47 15,000 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102 AAA 14,974,050 Revenue Bonds, 1993 Series A, 5.250%, 1/01/18 3,000 Michigan Strategic Fund, Limited Obligation Refunding 9/09 at 102 AAA 3,003,270 Revenue Bonds (The Detroit EdisonCompany - Pollution Control Bonds Project), Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax) 10,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 102 AAA 10,028,500 County Airport, Airport Revenue Bonds, Series 1998A, 5.375%, 12/01/16 (Alternative Minimum Tax) Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.4% $ 5,920 The Dakota County Housing and Redevelopment Authority, Single 4/04 at 102 AAA $ 6,149,282 Family Mortgage Revenue Bonds (Fannie Mae Mortgage-Backed Securities Program), Series 1994A, 6.900%, 10/01/27 (Alternative Minimum Tax) 23,250 The Housing and Redevelopment Authority of the City of St. Paul, 11/15 at 103 AAA 27,830,715 Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project), Series 1996, 7.100%, 11/01/23 The Housing and Redevelopment Authority of the City of St. Paul, Minnesota, Single Family Mortgage Revenue Refunding Bonds (Middle Income Program - Phase II FNMA Mortgage-Backed Securities Program), Series 1995: 1,330 6.400%, 3/01/21 3/05 at 102 Aaa 1,393,534 9,655 6.800%, 3/01/28 3/05 at 102 19/32 Aaa 10,271,472 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.7% 9,750 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102 BBB- 8,861,385 Revenue Refunding Bonds (System Energy Resources, Inc. Project), Series 1998, 5.875%, 4/01/22 685 Mississippi Home Corporation, Single Family Mortgage Revenue 4/05 at 102 Aaa 701,783 Bonds, Series 1995B, 6.550%, 4/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.3% 4,155 Missouri Housing Development Commission, Single Family 5/01 at 100 AAA 4,160,900 Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1988 Series A, 8.300%, 5/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.7% 4,985 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100 AA+ 5,219,943 2000 Series A2, 6.450%, 6/01/29 (Alternative Minimum Tax) 4,795 Montana Higher Education Student Assistance Corporation, 12/08 at 101 A2 4,623,051 Student Loan Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.3% 3,905 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100 AAA 3,979,429 Revenue Bonds, 2000 Series E, 5.850%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.9% 10,505 State of Nevada, Limited Tax General Obligation Bonds (Nevada 5/06 at 101 AA*** 11,549,092 Municipal Bond Bank Project No. 52), Series 1996A, 6.000%, 5/15/21 (Pre-refunded to 5/15/06) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.8% New Hampshire Housing Finance Authority, Multifamily Housing Revenue Bonds, 1994 Issue Remarketing (Countryside Limited Partnership - Countryside Project): 3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101 Aaa 3,791,380 6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101 Aaa 7,097,790 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.8% 4,615 Higher Education Student Assistance Authority of the State of 6/10 at 101 AAA 4,950,418 New Jersey, Student Loan Revenue Bonds, 2000 Series A, 6.000%, 6/01/13 (Alternative Minimum Tax) 3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100 AAA 3,034,170 Project Sublease Revenue Bonds (New Jersey Transit Corporation - Light Rail Transit System Projects), 1999 Series A Bonds, 5.250%, 5/01/17 8,750 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102 AA 8,879,500 System Bonds, 1996 Series B, 5.250%, 6/15/16 Township of West Deptford, County of Gloucester, New Jersey, General Obligation Bonds, Series of 2000: 3,150 5.500%, 9/01/21 9/10 at 100 Aaa 3,237,255 3,335 5.500%, 9/01/22 9/10 at 100 Aaa 3,424,145 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.0% 11,900 Long Island Power Authority, New York, Electric System No Opt. Call AAA 3,389,120 General Revenue Bonds, Series 2000A, 0.000%, 6/01/24 5 The City of New York, New York, General Obligation Bonds, 8/01 at 100 A 5,064 Fiscal 1987 Series D, 8.500%, 8/01/08 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series C: $ 7,910 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA $ 8,348,847 90 6.625%, 8/01/14 8/02 at 101 1/2 AAA 94,272 12,500 The City of New York, New York, General Obligation Bonds, No Opt. Call A 13,934,000 Fiscal 1997 Series A, 7.000%, 8/01/05 16,295 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 17,000,899 Fiscal 1996 Series F, 5.750%, 2/01/15 20,650 New York City Municipal Water Finance Authority, Water 6/06 at 101 AAA 21,286,846 and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 4,875 New York City Municipal Water Finance Authority, Water 6/06 at 101 AAA 4,926,383 and Sewer System Revenue Bonds, Fiscal 1997 Series A, 5.500%, 6/15/24 1,915 New York City Municipal Water Finance Authority, Water 6/07 at 101 AAA 1,836,657 and Sewer System Revenue Bonds, Fiscal 1998 Series B, 5.125%, 6/15/30 10,000 New York City Municipal Water Finance Authority, Water 6/09 at 101 AA 10,383,900 and Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/30 7,810 New York City Transitional Finance Authority, Future Tax 8/09 at 101 AA+ 8,176,289 Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24 2,250 Dormitory Authority of the State of New York, Lease 7/09 at 101 AAA 2,280,420 Revenue Bonds (State University Dormitory Facilities Issue), Series 1999C, 5.500%, 7/01/29 4,000 Dormitory Authority of the State of New York, State 5/01 at 100 AA- 4,002,920 University Educational Facilities Revenue Bonds, Series 1990B, 6.000%, 5/15/17 1,500 Dormitory Authority of the State of New York, Revenue Bonds 8/07 at 101 AAA 1,489,500 (St. Barnabas Hospital), Series 1997, 5.450%, 8/01/35 2,070 Dormitory Authority of the State of New York, Insured 7/08 at 101 AAA 2,121,502 Revenue Bonds (853 Schools Program - 1998 Issue 1), Gateway-Longview, Inc. Insured Revenue Bonds, Series 1998A, 5.500%, 7/01/18 4,300 Dormitory Authority of the State of New York, Mental 8/08 at 101 AAA 3,683,294 Health Services Facilities Improvement Revenue Bonds, Series 1998F, 4.500%, 8/15/28 4,625 Dormitory Authority of the State of New York, Mental Health 2/09 at 101 AAA 4,316,189 Services Facilities Improvement Revenue Bonds, Series 1999C, 4.750%, 8/15/19 17,000 Dormitory Authority of the State of New York, City University 7/09 at 101 AAA 17,229,840 System Consolidated Third General Resolution Revenue Bonds, 1999 Series 1, 5.500%, 7/01/29 3,000 Dormitory Authority of the State of New York, City University 1/08 at 102 AAA 3,003,870 System Consolidated Third General Resolution Revenue Bonds, 1997 Series 1, 5.375%, 7/01/24 2,000 Dormitory Authority of the State of New York, Mental Health 2/06 at 102 AAA 1,999,820 Services Facilities Improvement Revenue Bonds, Series 1996B, 5.375%, 2/15/26 Dormitory Authority of the State of New York, Marymount Manhattan College Insured Revenue Bonds, Series 1999: 1,580 6.375%, 7/01/13 7/09 at 101 AA 1,759,978 9,235 6.125%, 7/01/21 7/09 at 101 AA 9,822,715 3,000 New York State Energy Research and Development Authority, 9/08 at 102 AAA 3,141,210 Pollution Control Revenue Bonds (Rochester Gas and Electric Corporation Project), Series 1998A, 5.950%, 9/01/33 (Alternative Minimum Tax) 14,750 New York State Medical Care Facilities Finance Agency, 2/04 at 102 AAA 15,010,190 Mental Health Services Facilities Improvement Revenue Bonds, 1993 Series F Refunding, 5.375%, 2/15/14 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.4% 5,000 North Carolina Municipal Power Agency Number 1, Catawba 1/08 at 102 AAA 4,791,750 Electric Revenue Bonds, Series 1998A, 5.000%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.6% 7,500 North Dakota Housing Finance Agency, Housing Finance Program 7/10 at 100 Aa3 7,895,775 Bonds (Home Mortgage Finance Program), 2000 Series A Refunding, 6.500%, 1/01/31 (Alternative Minimum Tax) Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.1% $ 8,500 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101 AAA $ 7,979,035 Series 2000A, 5.000%, 1/01/31 19,500 Ohio Housing Finance Agency, Residential Mortgage Revenue 7/09 at 100 Aaa 19,726,200 Bonds (Fixed Rate), 1999 Series C (Mortgage-Backed Securities Program), 5.750%, 9/01/30 (Alternative Minimum Tax) Ohio Water Development Authority, State of Ohio, Solid Waste Disposal Revenue Bonds (Bay Shore Power Project), Convertible Series 1998B: 15,500 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102 N/R 13,031,780 2,500 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102 N/R 2,278,250 12,000 6.625%, 9/01/20 9/09 at 102 N/R 10,992,600 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.3% 3,400 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, No Opt. Call Baa1 3,425,704 Revenue Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.9% 2,750 State of Oregon, Housing and Community Services Department, Mortgage 1/10 at 100 Aa2 2,875,015 Revenue Bonds (Single Family Mortgage Program), Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax) 9,150 Port St. Helen's Pollution Control (Portland General Electric), No Opt. Call A3 9,253,761 1985-B Variable Rate Demand Bonds, 4.800%, 6/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.9% Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania, Guaranteed Water Revenue Bonds, Series of 1998: 3,125 0.000%, 5/15/22 No Opt. Call AAA 949,156 3,125 0.000%, 5/15/23 No Opt. Call AAA 895,000 3,135 0.000%, 5/15/24 No Opt. Call AAA 846,826 3,155 0.000%, 5/15/26 No Opt. Call AAA 757,011 4,145 0.000%, 11/15/26 No Opt. Call AAA 966,614 2,800 0.000%, 5/15/28 No Opt. Call AAA 598,332 3,000 0.000%, 11/15/28 No Opt. Call AAA 622,710 4,985 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 5,091,480 Resource Recovery Revenue Refunding Bonds, 2000 Series (Panther Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax) 3,000 Cumberland County Municipal Authority, Pennsylvania, Carlisle 11/04 at 102 BBB- 2,927,460 Hospital and Health Services First Mortgage Revenue and Refunding Bonds, Series 1994, 6.800%, 11/15/14 11,000 Delaware County Authority (Pennsylvania), Health System 11/08 at 102 AAA 10,132,210 Revenue Bonds, Catholic Health East Issue, Series 1998A, 4.875%, 11/15/18 Pennsylvania Economic Development Finance Authority, Resource Recovery Revenue Bonds, Senior Series 1994A (Northampton Generating Project): 2,600 6.400%, 1/01/09 (Alternative Minimum Tax) 1/04 at 102 BBB- 2,582,658 4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 1/04 at 102 BBB- 4,466,835 1,000 Pennsylvania Economic Development Financing Authority, 1/04 at 102 N/R 992,570 Resource Recovery Revenue Subordinate Bonds, Series 1994C (Northampton Generating Project), 6.875%, 1/01/11 (Alternative Minimum Tax) 6,250 Pennsylvania Economic Development Financing Authority, No Opt. Call N/R 6,343,000 Resource Recovery Revenue Bonds (Northampton Generating Project), Senior Lien Series 1994B, 6.750%, 1/01/07 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.1% 1,250 Puerto Rico Highway and Transportation Authority, 7/10 at 101 AAA 1,337,813 Transportation Revenue Bonds, Series B, 5.875%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.5% 2,000 Greenville Hospital System, Board of Trustees, Hospital 5/06 at 102 AAA 1,942,840 Revenue Bonds (South Carolina), Series 1996B, 5.250%, 5/01/23 6,925 State of South Carolina, General Obligation State Capital 10/09 at 101 AAA 6,269,480 Improvement Bonds, Series 1999A, 4.000%, 10/01/14 25,000 Tobacco Settlement Revenue Management Authority, Tobacco 5/11 at 101 A1 24,778,000 Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.7% The Health and Educational Facilities Board of the City of Johnson City, Tennessee, Hospital Revenue Refunding and Improvement Bonds, Series 1998C (Johnson City Medical Center Hospital): $ 2,260 5.125%, 7/01/25 (Pre-refunded to 7/01/23) 7/23 at 100 AAA $ 2,201,421 1,740 5.125%, 7/01/25 1/09 at 101 AAA 1,688,270 1,700 Memphis-Shelby County Airport Authority (Tennessee), Airport 3/10 at 101 AAA 1,778,880 Revenue Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative Minimum Tax) 6,930 The Health, Educational and Housing Facility Board of the 1/03 at 103 AAA 7,142,335 City of Memphis, Tennessee, Multifamily Mortgage Revenue Refunding Bonds (Riverdale Plaza Apartments Project), Series 1993, 6.350%, 7/20/28 6,000 The Health and Educational Facilities Board of the 12/17 at 100 AAA 6,563,460 Metropolitan Government of Nashville and Davidson County (Tennessee), Revenue Refunding and Improvement Bonds (Meharry Medical College Project), Series 1996, 6.000%, 12/01/19 15,000 Tennessee Housing Development Agency, Homeownership Program 7/10 at 101 AA 15,854,850 Bonds, Issue 2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 5.3% 11,800 City of Austin, Texas, Combined Utility Systems Revenue 11/02 at 100 AAA 11,904,194 Refunding Bonds, Series 1992, 5.750%, 11/15/16 4,000 Bell County Health Facilities Development Corporation, 2/10 at 101 AAA 4,241,360 Texas, Hospital Revenue Bonds (Scott and White Memorial Hospital - Scott, Sherwood and Brindley Foundation Project), Series 2000A, 6.125%, 8/15/23 18,690 Dallas-Fort Worth International Airport Facilities No Opt. Call BBB- 19,132,392 Improvement Corporation, Texas, Revenue Refunding Bonds, Series 2000B, American Airlines, 6.050%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/05) 2,625 Fort Worth Housing Finance Corporation, Home Mortgage 10/01 at 103 Aa 2,716,770 Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 1,500 Harris County Health Facilities Development Corporation, 7/09 at 101 AAA 1,429,275 Texas, Revenue Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24 440 Hidalgo County Housing Finance Corporation, Texas, Single 4/04 at 102 Aaa 451,968 Family Mortgage Revenue Bonds (GNMA and FNMA Collateralized), Series 1994A, 6.750%, 10/01/15 (Alternative Minimum Tax) 3,885 Houston Independent School District Public Facility No Opt. Call AAA 1,380,496 Corporation (Harris County, Texas), Lease Revenue Bonds (Cesar E. Chavez High School), Series 1998A, 0.000%, 9/15/19 City of Houston Water and Sewer System, Texas, Junior Lien Revenue Refunding Bonds, Series 1998A and 1998B: 28,500 0.000%, 12/01/24 No Opt. Call AAA 7,281,465 48,815 0.000%, 12/01/27 No Opt. Call AAA 10,417,121 1,690 City of Laredo, Texas (Webb County), Combination Tax and 2/08 at 100 AAA 1,508,714 Sewer System Revenue Certificates of Obligation, Series 1998A, 4.500%, 2/15/18 Leander Independent School District (Williamson and Travis Counties, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1998: 4,930 0.000%, 8/15/20 8/06 at 46 15/32 AAA 1,565,374 3,705 0.000%, 8/15/22 8/06 at 41 5/16 AAA 1,036,326 1,805 The Lubbock Housing Finance Corporation (Texas), Single 6/07 at 102 AAA 1,851,695 Family Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed Securities Program), Series 1997A, 6.125%, 12/01/17 6,050 City of San Antonio, Texas, Electric and Gas Systems 2/09 at 100 Aa1 5,244,019 Revenue Refunding Bonds, New Series 1998A, 4.500%, 2/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.8% 13,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 8/07 at 101 AAA 12,596,740 (IHC Health Services, Inc.), 5.250%, 8/15/21 1,100 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100 AA 1,148,631 2000 Issue B (Federally Insured or Guaranteed Mortgage Loans), 6.250%, 7/01/22 (Alternative Minimum Tax) 3,350 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA- 3,518,405 2000 Series D1, 6.050%, 7/01/14 (Alternative Minimum Tax) 3,600 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA- 3,735,828 2000 Series E-1, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTAH (continued) $ 1,400 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA $ 1,451,758 2000 Series E-1, Class II, 6.150%, 1/01/27 (Alternative Minimum Tax) 1,300 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100 AA 1,281,371 2001 Series A2, 5.650%, 7/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.7% 9,500 Vermont Housing Finance Agency, Single Family Housing 11/04 at 102 A+ 9,899,095 Bonds, Series 5, 7.000%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.2% 16,000 Metropolitan Washington Airports Authority, Airport System 10/04 at 100 AAA 16,011,520 Revenue Bonds, Series 1994A, 5.500%, 10/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 2.6% 12,235 Public Utility District No. 1 of Chelan County, Washington, No Opt. Call AAA 2,852,101 Columbia River-Rock IslandHydro-Electric System Revenue Refunding Bonds, Series 1997A, 0.000%, 6/01/26 1,815 Grant County Public Utility District 2, Wanapum Hydro-Electric 1/06 at 102 AAA 1,830,899 Revenue Bonds, Series 1997A (Master Lease Program), 5.625%, 1/01/26 5,000 Washington State Housing Finance Commission, Nonprofit 7/09 at 101 AA 5,079,400 Housing Revenue Bonds (The Kline Galland Center Project), Series 1999, 6.000%, 7/01/29 4,500 Washington Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101 AAA 4,468,410 Series 1999 (Providence Services), 5.375%, 12/01/19 16,000 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 16,280,160 No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 520 Washington Public Power Supply System, Nuclear Project No Opt. Call Aaa 529,464 No. 2 Revenue Bonds, Series 1981A, 14.375%, 7/01/01 4,000 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 4,045,880 No. 3 Refunding Revenue Bonds, Series 1993B, 5.700%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.2% 1,895 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 1,955,146 Bonds, 1992 Series C, 7.200%, 11/01/18 (Alternative Minimum Tax) 660 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 688,610 Bonds, 1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.0% 8,900 Wisconsin Health and Educational Facilities Authority, 8/03 at 102 AAA 8,576,660 Revenue Bonds, Series 1993 (Aurora Health Care Obligated Group), 5.250%, 8/15/23 11,400 Wisconsin Health and Educational Facilities Authority, 2/10 at 101 AA 11,859,990 Revenue Bonds, Series 1999 (Marshfield Clinic), 6.250%, 2/15/29 7,490 Wisconsin Health and Educational Facilities Authority, 7/08 at 103 N/R 6,771,330 Revenue Bonds, Series 1998 (The Millennium Housing Foundation Inc. Project), 6.100%, 1/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,546,170 Total Investments (cost $1,262,852,054) - 98.3% 1,305,329,914 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 22,056,938 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,327,386,852 ==================================================================================================================== * 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. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Nuveen Municipal Advantage Fund, Inc. (NMA) Portfolio of Investments April 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.0% $ 15,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA $ 14,650,350 Warrants, Series 1999-A, 5.375%, 2/01/36 5,075 The Health Care Authority of Lauderdale County and the 7/09 at 101 AAA 4,919,248 City of Florence, Alabama, Series 1999-A (Coffee Health Group), 5.250%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.4% 3,700 Alaska Housing Finance Corporation, General Housing Purpose 12/02 at 102 Aa2*** 3,833,940 Bonds, 1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.5% 5,000 Maricopa County Pollution Control Corporation, Arizona, 5/06 at 101 BBB- 4,703,650 Public Service Company of New Mexico,Pollution Control Revenue Refunding Bonds (Remarketing), Series 1992A, 5.750%, 11/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.7% 7,500 California Statewide Communities Development Authority, 4/09 at 101 BBB 6,676,875 Certificates of Participation, The Internext Group, 5.375%, 4/01/30 7,535 County of Contra Costa, California, 1989 Home Mortgage No Opt. Call AAA 9,492,593 Revenue Bonds (GNMA Mortgage-Backed Securities Program), 7.750%, 5/01/22 (Alternative Minimum Tax) 1,750 City of Hope National Medical Center, City of Duarte, 4/09 at 101 BBB 1,534,330 California, Certificates of Participation, Series 1999A, 5.250%, 4/01/31 14,490 Palm Desert Financing Authority, Tax Allocation Revenue 8/02 at 102 AAA 14,937,886 Bonds (Project Area No. 2), 1992 Series A, 6.125%, 8/01/22 5,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 6,154,150 California, Residential Mortgage Revenue Refunding Bonds, Series 1991-B, 7.375%, 2/01/12 5,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 6,468,150 California, Single Family Mortgage Revenue Bonds, Series 1986A Restructured, 8.000%, 3/01/16 (Alternative Minimum Tax) 9,315 City of Perris, California, Single Family Mortgage Revenue No Opt. Call AAA 11,849,612 Bonds (GNMA Mortgage-Backed Securities), 1989 Series A, 7.600%, 1/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.8% 9,000 Colorado Health Facilities Authority, Revenue Bonds, 7/06 at 102 A 8,459,010 1994 Series A, Kaiser Permanente Remarketed, 5.350%, 11/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.5% 5,000 Connecticut Housing Finance Authority, Housing Mortgage 11/09 at 100 AA 5,063,750 Finance Program Bonds, 2000 Series B-2, 5.750%, 11/15/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.3% 6,585 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103 AAA 6,731,648 Single Family Mortgage Revenue Bonds, Series 1988F-1, 6.375%, 6/01/26 (Alternative Minimum Tax) 6,260 District of Columbia Housing Finance Agency, Single Family 6/07 at 102 AAA 6,376,373 Revenue Bonds, Series 1997-B, 5.900%, 12/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.4% 2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100 AAA 2,830,968 2000 Series O-1, Stratford Point Apartments, 5.850%, 12/01/31 (Alternative Minimum Tax) 10,990 City of Tampa, Florida, Allegany Health System Revenue Bonds, 12/03 at 102 AAA 10,787,564 St. Mary's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.1% 10,235 Georgia Housing and Finance Authority, Single Family Mortgage 3/10 at 100 AAA 10,800,381 Bonds, 2000 Series A2, 6.450%, 12/01/30 (Alternative Minimum Tax) Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.6% $ 3,735 Housing Finance and Development Corporation (State of Hawaii), 7/07 at 102 Aaa $ 3,768,578 Single Family Mortgage Purchase Revenue Bonds, 1997 Series A, 5.750%, 7/01/30 (Alternative Minimum Tax) 2,215 Housing and Community Development Corporation of Hawaii, 7/10 at 102 AAA 2,242,643 Multifamily Housing Revenue Bonds, Series 2000 (GNMA Collateralized - Sunset Villas), 5.700%, 7/20/31 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 7.4% 5,865 City of Chicago (Illinois), General Obligation Bonds 7/10 at 101 AAA 6,808,092 (Neighborhoods Alive 21 Program), Series 2000A, 6.500%, 1/01/35 (Pre-refunded to 7/01/10) 4,000 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 4,124,040 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997, 5.750%, 12/01/20 12,500 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 11,998,125 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/27 5,000 City of Chicago, Illinois, Chicago-O'Hare International No Opt. Call Baa2 4,994,200 Airport, Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13) 5,000 City of Chicago (Illinois), Second Lien Wastewater 1/08 at 102 AAA 4,832,600 Transmission Revenue Bonds, Series 1997, 5.250%, 1/01/28 10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102 AAA 10,670,415 Series 1996A (Rush-Presbyterian-St.Luke's Medical Center Obligated Group), 6.250%, 11/15/20 6,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102 A- 5,512,500 Series 1996B (Sarah Bush Lincoln Health Center), 5.750%, 2/15/22 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Bonds, Series 1999A: 12,455 5.500%, 12/15/24 12/09 at 101 AAA 12,508,806 10,000 5.250%, 12/15/28 12/09 at 101 AAA 9,680,800 2,500 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,055,400 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1990A, 7.200%, 11/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.1% 7,425 Fort Wayne International Airport Building Corporation, Airport 1/04 at 101 Aa 7,543,503 Improvement Bonds, Series 1994, Fort Wayne, Indiana, 5.900%, 1/01/14 (Alternative Minimum Tax) 5,205 Indiana Health Facility Financing Authority, Hospital 8/10 at 101 1/2 AAA 5,141,499 Revenue Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 9,000 Indiana Health Facility Financing Authority, Hospital 5/06 at 102 AAA 9,090,630 Revenue Refunding and Improvement Bonds, Series 1995 (Community Hospitals Projects), 5.700%, 5/15/22 6,075 LaGrange County Jail Building Corporation, First Mortgage 10/09 at 101 A3 5,975,127 Jail Bonds, Series 1998 (LaGrange County, Indiana), 5.400%, 10/01/21 3,215 Mooresville Consolidated School Building Corporation, First 1/04 at 102 A*** 3,494,319 Mortgage Bonds, Series 1994B, Morgan County, Indiana, 6.400%, 7/15/15 (Pre-refunded to 1/15/04) - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.7% 3,650 Iowa Finance Authority, Single Family Mortgage Bonds, 1/05 at 102 AAA 3,739,863 1995 Series C, 6.450%, 1/01/24 3,500 City of Marshalltown, Iowa, Pollution Control Revenue 11/03 at 102 AAA 3,470,985 Refunding Bonds (Iowa Electric Light and Power Company Project), Series 1993, 5.500%, 11/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.2% 2,420 Sedgwick County, Kansas and Shawnee County, Kansas, Single No Opt. Call Aaa 2,461,237 Family Mortgage Revenue Bonds (Mortgaged-Backed Securities Program), 1997 Series A-1, 5.100%, 12/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.8% 5,500 Louisville and Jefferson County Metropolitan Sewer District 5/07 at 101 AAA 5,410,130 (Commonwealth of Kentucky), Sewer and Drainage System Revenue Bonds, Series 1997A, 5.250%, 5/15/27 12,750 Louisville and Jefferson County Metropolitan Sewer District 11/07 at 101 AAA 12,450,503 (Commonwealth of Kentucky), Sewer and Drainage System Revenue Bonds, Series 1997B, 5.200%, 5/15/25 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.9% $ 13,500 Parish of De Soto, State of Louisiana, Pollution Control 9/09 at 102 AAA $ 14,061,465 Revenue Refunding Bonds (Cleco Utility Group Inc. Project), Series 1999, 5.875%, 9/01/29 2,525 Parish of Jefferson Home Mortgage Authority, Louisiana, No Opt. Call AAA 2,581,005 Tax-Exempt Agency Mortgage-Backed Securities, Series 1995A, 5.900%, 12/01/16 (Alternative Minimum Tax) 10,000 Louisiana Public Facilities Authority, Extended Care No Opt. Call BBB 12,575,300 Facilities Revenue Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.3% 7,000 Massachusetts Health and Educational Facilities Authority, 1/09 at 101 AAA 6,403,950 Revenue Bonds, UMass Memorial Health Issue A, 5.000%, 7/01/28 10,300 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 10,653,908 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 10,430 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100 AAA 10,931,787 Revenue Bonds, Series 77, 5.950%, 6/01/25 (Alternative Minimum Tax) 5,300 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100 AAA 5,421,158 Revenue Bonds, Series 79, 5.950%, 12/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.4% Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The Detroit Medical Center Obligated Group), Series 1998A: 1,000 5.250%, 8/15/23 8/08 at 101 BBB- 767,750 4,000 5.250%, 8/15/28 8/08 at 101 BBB- 2,982,480 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.9% 3,120 Minneapolis Community Development Agency, Limited Tax 6/01 at 100 A- 3,130,702 Supported Development Revenue Bonds, Common Bond Fund, Series 1988-1, 8.750%, 12/01/17 (Alternative Minimum Tax) 2,340 Minneapolis Community Development Agency, Limited Tax 6/01 at 101 A- 2,368,454 Supported Development Revenue Bonds, Common Bond Fund, Series 1989-1, 8.250%, 6/01/19 (Alternative Minimum Tax) 9,155 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100 AA+ 9,499,777 2000 Series C, 5.550%, 7/01/24 (Alternative Minimum Tax) 4,000 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100 AA+ 4,125,640 Revenue Bonds, 2000 Series J, 5.400%, 1/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.4% 5,065 Coahoma-Clarksdale Housing Development Corporation, 8/03 at 100 AAA 5,236,045 1990 Multifamily Mortgage Revenue Refunding Bonds (Gooden Estates and McLaurin Arms Project), Series B, 8.000%, 8/01/24 1,540 Greenwood-Leflore Housing Development Corporation, 8/01 at 100 AA- 1,547,423 1990 Multifamily Mortgage Revenue Refunding Bonds (Ivory Apartment Project), Series D, 7.950%, 2/01/22 2,545 Greenwood-Leflore Housing Development Corporation, 8/01 at 100 AA- 2,555,638 1990 Multifamily Mortgage Revenue Refunding Bonds (Bishop Apartment Project), Series B, 7.950%, 8/01/22 2,590 Greenwood-Leflore Housing Development Corporation, 6/02 at 100 AA- 2,638,045 1990 Multifamily Mortgage Revenue Refunding Bonds (Jones Apartment Projects), Series C, 7.950%, 8/01/22 1,625 Greenwood-Leflore Housing Development Corporation, 3/02 at 100 AA- 1,648,270 1990 Multifamily Mortgage Revenue Refunding Bonds (McNeace Apartment Projects), Series A, 7.950%, 8/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.3% 2,500 Missouri Housing Development Commission, Single Family 9/09 at 102 AAA 2,837,225 Mortgage Revenue Bonds (Homeownership Loan Program), 2000 Series A-1, 7.500%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 2.4% 15,540 Montana Board of Housing, Single Family Program Bonds, 12/05 at 102 AA+ 16,136,270 1995 Series B (Federally Insured or Guaranteed Mortgage Loan), 6.400%, 12/01/27 (Alternative Minimum Tax) 7,225 Montana Board of Housing, Single Family Program Bonds, 6/07 at 101 1/2 AA+ 7,425,638 1997 Series A, 6.050%, 12/01/37 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.2% $ 7,310 Clark County, Nevada, General Obligation Limited Tax Bond 7/10 at 101 AA $ 7,417,165 Bank Bonds, Series 2000 (Additionally Secured by Pledged Revenues), 5.500%, 7/01/19 7,500 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/10 at 101 AAA 7,977,750 Bonds, Series 1999A, 6.000%, 7/01/29 7,000 Director of the State of Nevada, Department of Business and 1/10 at 100 AAA 6,746,040 Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.375%, 1/01/40 5,000 Las Vegas Convention and Visitors Authority, Nevada, 7/09 at 101 AAA 5,312,100 Revenue Bonds, Series 1999, 5.500%, 7/01/10 4,360 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102 Aaa 4,370,769 1997 Series C-2 Senior Bonds, 5.750%, 4/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.8% 2,880 Business Finance Authority of the State of New Hampshire, 12/04 at 102 AAA 3,029,328 Water Facility Revenue Bonds (Pennichuck Water Works, Inc. - 1994 Issue), Series A, 6.350%, 12/01/19 1,670 Business Finance Authority of the State of New Hampshire, 12/04 at 102 AAA 1,762,986 Water Facility Revenue Bonds (Pennichuck Water Works, Inc.), Series B, 6.450%, 12/01/16 (Alternative Minimum Tax) 2,955 New Hampshire Housing Finance Authority, Single Family 7/01 at 100 Aa3 2,965,224 Residential Mortgage Bonds, 1989 Series A, 7.900%, 7/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.7% 7,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101 Baa3 7,021,500 Refunding Bonds, Series 1997B (Public Service Company of New Mexico - San Juan Project), 5.800%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.2% County of Nassau, New York, General Obligations, Serial General Improvement Bonds, Series F: 3,980 7.000%, 3/01/11 3/10 at 100 AAA 4,690,589 4,070 7.000%, 3/01/12 3/10 at 100 AAA 4,780,419 3,925 7.000%, 3/01/15 3/10 at 100 AAA 4,554,374 The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series G: 95 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 Aaa 106,598 9,905 6.000%, 10/15/26 10/07 at 101 A 10,430,856 5,685 The City of New York, New York, General Obligation Bonds, 4/09 at 101 A 5,434,633 Fiscal 1999 Series I, 5.000%, 4/15/20 The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series B: 6,515 9.500%, 6/01/03 No Opt. Call A*** 7,297,517 1,485 9.500%, 6/01/03 No Opt. Call A 1,654,884 7,435 The City of New York, New York, General Obligation Bonds, 5/10 at 101 A 7,746,452 Fiscal 2000 Series E, 5.750%, 5/15/20 9,750 New York City Municipal Water Finance Authority, Water and 6/09 at 101 AAA 10,160,182 Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/31 5,000 New York City Municipal Water Finance Authority, Water and 6/07 at 101 AAA 5,163,150 Sewer System Revenue Bonds, Fiscal 1997 Series B, 5.750%, 6/15/29 10,000 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA+ 10,712,400 Secured Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29 8,850 New York City Industrial Development Agency, Special 12/08 at 102 A2 7,954,380 Facility Revenue Bonds, Series 1998 (1998 British Airways PLC Project), 5.250%, 12/01/32 (Alternative Minimum Tax) 7,360 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 AA- 7,470,547 Services Facilities Improvement Revenue Bonds, Series 1997B, 5.625%, 2/15/21 3,655 Dormitory Authority of the State of New York, State 5/08 at 101 AA- 3,500,978 University Educational Facilities Revenue Bonds, Series 1997, 5.125%, 5/15/27 1,025 New York State Housing Finance Agency, Health Facilities 5/01 at 102 A 1,036,173 Revenue Bonds (New York City), 1990 Series A Refunding, 8.000%, 11/01/08 9,495 State of New York Mortgage Agency, Homeowner Mortgage 4/10 at 100 Aa1 9,691,831 Revenue Bonds, Series 94, 5.800%, 10/01/20 (Alternative Minimum Tax) 5,000 New York State Urban Development Corporation, Correctional 1/09 at 101 AAA 5,313,550 Facilities Service Contract Revenue Bonds, Series C, 6.000%, 1/01/29 5,000 Suffolk County Industrial Development Agency, Solid Waste No Opt. Call AAA 5,501,400 Disposal Facility Revenue Bonds (Ogden Martin Systems of Huntington - Limited Partnership Resource Recovery Facility), Series 1999, 5.950%, 10/01/09 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.4% $ 10,540 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 100 AAA $ 10,576,574 Revenue Bonds, Refunding Series 1993 B, 5.500%, 1/01/17 10,970 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100 AA 11,387,628 Revenue Bonds, Series 7A (1998 Trust Agreement), 6.250%, 1/01/29 (Alternative Minimum Tax) 12,920 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100 AA 13,570,780 Revenue Bonds, Series 8-A (1998 Trust Agreement), 5.950%, 1/01/27 (Alternative Minimum Tax) 6,000 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100 AA 6,119,820 Revenue Bonds, Series 9A (1998 Trust Agreement), 5.875%, 7/01/31 (Alternative Minimum Tax) 2,000 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100 AAA 1,950,960 Program Bonds, Series 10A (1998 Trust Agreement), 5.400%, 7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.0% 5,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101 Baa1 4,285,400 Hospital Facilities Revenue Bonds, Series 1998A (Summa Health System Project), 5.375%, 11/15/18 6,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (University 7/09 at 101 AAA 6,029,700 Hospitals Health System, Inc.), Series 1999, 5.500%, 1/15/30 3,000 Hamilton Local School District, Franklin County, Ohio, 12/11 at 100 AAA 2,827,110 School Facilities Construction and Improvement Bonds, General Obligation - Unlimited Tax, 5.000%, 12/01/28 5,000 County of Montgomery, Ohio, Hospital Facilities Revenue 4/10 at 101 BBB+ 5,052,500 Bonds, Series 1999 (Kettering Medical Center Network Obligated Group), 6.750%, 4/01/18 6,650 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 6,869,450 Bonds, Mortgage-Backed Securities Program, 2000 Series D, 5.450%, 9/01/31 (Alternative Minimum Tax) 2,850 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/10 at 100 Aaa 2,806,937 Bonds, Mortgage-Backed Securities Program, 2001 Series A, 5.500%, 9/01/34 11,500 Ohio Air Quality Development Authority, State of Ohio, 12/04 at 100 Baa3 11,747,020 Pollution Control Revenue Refunding Bonds, Series 1999-C (Ohio Edison Company Project), 5.800%, 6/01/16 (Optional put 12/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 3.0% 10,480 Central Oklahoma Transportation and Parking Authority 7/06 at 100 AAA 10,509,763 (Oklahoma City, Oklahoma), Parking System Revenue and Refunding Bonds, Series 1996, 5.250%, 7/01/16 705 Cleveland County Home Loan Authority (Oklahoma), Single 8/01 at 102 Aa2 721,709 Family Mortgage Revenue Refunding Bonds, Series 1992, 8.375%, 2/01/12 5,000 Oklahoma Industries Authority, Health System Revenue and 8/09 at 101 AAA 5,075,150 Refunding Bonds (Obligated Group consisting of INTEGRIS Baptist Medical Center, Inc., INTEGRIS South Oklahoma City Hospital Corporation and INTEGRIS Rural Health, Inc.), Revenue Refunding Bonds, Series 1999A, 5.750%, 8/15/29 13,615 Trustees of the Tulsa Municipal Airport Trust, Revenue 6/01 at 102 Baa1 13,929,507 Bonds, Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.8% 3,500 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/03 at 102 AAA 3,539,375 Bonds, Issue 1993, 5.800%, 7/01/18 2,310 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 100 AAA 2,267,819 Revenue Bonds, Series 1993, 5.000%, 6/15/16 4,480 Venango Housing Corporation, Multifamily Mortgage Revenue 2/03 at 100 AAA 4,586,714 Refunding Bonds (FHA-Insured Mortgage/Evergreen Arbors Project), 1990 Series A, 8.000%, 2/01/24 6,750 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 7,519,838 Revenue Bonds (Capital Projectsand Equipment Acquisition Program), Series of 1999, 6.150%, 12/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.3% 6,000 Rhode Island Convention Center Authority, Refunding Revenue 5/04 at 102 AAA 5,659,560 Bonds, 1993 Series C, 5.000%, 5/15/23 The Housing Authority of the City of Providence, Rhode Island, Multifamily Mortgage Revenue Bonds (FHA-Insured Mortgage Loan - Cathedral Square Apartments II Project), 1992 Series: 435 7.375%, 4/01/10 (Alternative Minimum Tax) 4/02 at 105 AAA 461,287 1,060 7.400%, 4/01/20 (Alternative Minimum Tax) 4/02 at 105 AAA 1,124,586 3,050 7.500%, 10/01/32 (Alternative Minimum Tax) 4/02 at 105 AAA 3,241,388 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND (continued) $ 12,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA $ 12,412,435 Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.500%, 5/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.2% 5,000 Piedmont Municipal Power Agency (South Carolina), Electric 1/09 at 101 BBB- 4,414,800 Revenue Bonds, 1999A Refunding Series, 5.250%, 1/01/21 7,500 Tobacco Settlement Revenue Management Authority, Tobacco 5/11 at 101 A1 7,451,925 Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.8% 14,385 The Health and Educational Facilities Board of the 11/09 at 101 AAA 14,841,292 Metropolitan Government of Nashville and Davidson County, Tennessee, Revenue Bonds (Ascension Health Credit Group), Series 1999A, 5.875%, 11/15/28 3,035 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102 AA 3,170,665 Program Bonds, 1994 Series A, 6.900%, 7/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 9.4% 5,000 Brazos River Authority (Texas), Pollution Control Revenue 5/08 at 102 AAA 4,966,650 Refunding Bonds (Texas Utilities Electric Company Project), Series 1998A, 5.550%, 5/01/33 (Alternative Minimum Tax) 5,000 Brazos River Authority (Texas), Pollution Control Revenue 4/08 at 102 AAA 4,974,700 Refunding Bonds (Texas Utilities Electric Company Project), Series 1995C, 5.550%, 6/01/30 (Alternative Minimum Tax) 6,000 Brazos River Authority (Texas), Revenue Refunding Bonds No Opt. Call AAA 5,747,760 (Houston Lighting and Power Company Project), Series 1998, 5.050%, 11/01/18 (Alternative Minimum Tax) 4,925 The Cameron County Housing Finance Corporation, Single Family 9/02 at 103 AAA 5,052,361 Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1992, 6.750%, 3/01/26 3,000 El Paso Housing Finance Corporation, Multifamily Housing 7/01 at 102 AAA 3,063,240 Revenue Refunding Bonds (Las Flores Development Company Project), Series 1990A, 7.500%, 3/20/25 8,400 Gulf Coast Waste Disposal Authority (Texas), Waste Disposal 4/09 at 101 BBB- 7,358,232 Revenue Bonds (Valero Energy Corporation Project), Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax) 4,000 Harris County Health Facilities Development Corporation (Texas), 10/09 at 101 AA 3,661,480 Hospital Revenue Bonds (Texas Children's Hospital Project), Series 1999A 5.250%, 10/01/29 10,000 Harris County Health Facilities Development Corporation 5/06 at 102 AAA 10,387,200 (Texas), Special Facilities Revenue Bonds (Texas Medical Center Project), Series 1996, 5.900%, 5/15/16 7,500 City of Houston, Texas, Airport System Subordinate Lien 7/10 at 100 AAA 7,440,150 Revenue Bonds, Series 2000B, 5.500%, 7/01/30 4,500 City of Houston, Texas, Airport System Subordinate Lien 7/08 at 100 AAA 4,136,040 Revenue Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax) City of Houston, Texas, Water Conveyance System Contract, Certificates of Participation, Series 1993 A-J: 5,490 6.800%, 12/15/10 No Opt. Call AAA 6,356,048 2,000 6.800%, 12/15/11 No Opt. Call AAA 2,323,400 16,305 Matagorda County Navigation District Number One (Texas), 5/09 at 101 Baa1 15,171,150 Revenue Refunding Bonds (Reliant Energy, Inc. Project), Series 1999B, 5.950%, 5/01/30 4,000 State of Texas, General Obligation Water Financial Assistance 8/09 at 100 Aa1 3,986,760 Bonds, Series 1999C (State Participation Program), 5.500%, 8/01/35 6,500 Travis County Health Facilities Development Corporation 11/09 at 101 AAA 6,700,785 (Texas), Revenue Bonds (Ascension Health Credit Group), Series 1999A, 5.875%, 11/15/24 The Wood Glen Housing Finance Corporation (Texas), Mortgage Revenue Refunding Bonds, Series 1990C (FHA-Insured Mortgage Loan - Section 8 Assisted Copperwood II Project): 935 7.625%, 1/01/10 7/01 at 102 AAA 957,345 1,250 7.650%, 7/01/23 7/01 at 102 AAA 1,278,850 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 0.6% 6,000 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101 BBB- 6,380,040 (Virgin Islands Gross Receipts Taxes Loan Notes), Series 1999A, 6.375%, 10/01/19 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.7% $ 6,380 Capital Region Airport Commission, Richmond, Virginia, 7/05 at 102 AAA $ 6,515,958 International Airport Projects, Airport Revenue Bonds, Series 1995A, 5.625%, 7/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.0% 8,810 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101 AAA 8,670,097 Chelan Hydro Consolidated System Revenue Bonds, Series 2001A, 5.600%, 1/01/36 (Alternative Minimum Tax) 10,730 Sumner School District No. 320 of Pierce County, Washington, 12/10 at 100 Aaa 11,736,796 Unlimited Tax General Obligation Bonds, Series 2000, 6.250%, 12/01/17 10,550 Port of Seattle (Washington), Limited Tax General Obligation 12/10 at 100 AA+ 10,763,532 Bonds, 2000 Series B, 5.750%, 12/01/25 (Alternative Minimum Tax) 5,315 Port of Seattle (Washington), Revenue Bonds, Series 2000B, No Opt. Call AAA 5,756,145 6.000%, 2/01/10 (Alternative Minimum Tax) 19,295 Port of Seattle (Washington), Special Facility Revenue Bonds 3/10 at 101 AAA 20,401,761 (Terminal 18 Project), Series 1999A, 6.000%, 9/01/29 5,000 Port of Seattle (Washington), Special Facility Revenue Bonds 3/10 at 101 AAA 5,239,800 (Terminal 18 Project), Series 1999C, 6.000%, 9/01/20 (Alternative Minimum Tax) 5,250 Everett School District No. 2, Snohomish County, Washington, 12/03 at 102 AAA 5,694,045 Unlimited Tax General Obligation Bonds, Series 1993, 6.200%, 12/01/12 (Pre-refunded to 12/01/03) 9,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/08 at 101 Aaa 8,198,190 Series 1998 (Children's Hospital and Regional Medical Center), 5.000%, 10/01/28 5,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101 AAA 4,964,900 Series 1999 (Providence Services), 5.375%, 12/01/19 8,750 Washington Public Power Supply System, Nuclear Project 7/08 at 102 Aa1 8,432,900 No. 3 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.9% 3,000 Southeast Wisconsin Professional Baseball Park District, No Opt. Call AAA 3,119,100 Sales Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 4,955 Wisconsin Housing and Economic Development Authority, Home 3/10 at 100 AA 5,172,123 Ownership Revenue Bonds, 2000 Series B, 5.750%, 3/01/22 (Alternative Minimum Tax) Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1996 (Aurora Medical Group, Inc. Project): 10,000 5.600%, 11/15/16 5/06 at 102 AAA 10,174,700 20,000 5.750%, 11/15/25 5/06 at 102 AAA 20,212,600 - ------------------------------------------------------------------------------------------------------------------------------------ $ 958,860 Total Investments (cost $943,061,783) - 98.1% 979,722,708 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 19,247,682 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 998,970,390 ==================================================================================================================== * 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. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) Portfolio of Investments April 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.0% $ 5,000 Arizona Transportation Board, Highway Revenue Bonds, 7/11 at 100 AAA $ 5,005,500 Series 2001, 5.250%, 7/01/20 3,225 The Industrial Development Authority of the County of 7/10 at 102 Baa3 3,286,662 Maricopa, Education Revenue Bonds (Arizona Charter Schools Project I), Series 2000A, 6.750%, 7/01/29 2,055 The Industrial Development Authority of the County of Pima, 5/07 at 105 27/32 AAA 2,276,344 Single Family Mortgage Revenue Bonds, Series 1997A, 7.100%, 11/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.8% 5,000 Arkansas Development Finance Authority, Hospital Revenue Bonds 2/10 at 100 BBB- 5,052,950 (Washington Regional Medical Center), Series 2000, 7.000%, 2/01/15 4,000 Baxter County, Arkansas, Hospital Revenue Improvement Bonds, 9/09 at 100 BBB 3,711,280 Series 1999B (Baxter County Regional Hospital), 5.600%, 9/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.8% 8,745 Bell Community Redevelopment Agency, Bell Redevelopment Area, 11/03 at 102 AAA 9,172,980 Tax Allocation Refunding Bonds, Series 1994, 6.350%, 11/01/23 6,810 California Health Facilities Financing Authority, Kaiser 5/03 at 102 A 6,569,675 Permanente Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 2,500 The Community Redevelopment Agency of the City of Los Angeles, 7/01 at 100 BBB*** 2,533,250 California, Tax Allocation Refunding Bonds (Central Business District Redevelopment Project), Series G, 6.750%, 7/01/10 Department of Water and Power of the City of Los Angeles (California), Electric Plant Revenue Bonds, Second Issue of 1993: 5,510 4.750%, 10/15/20 (Pre-refunded to 10/15/17) 10/03 at 102 Aa3*** 5,179,731 490 4.750%, 10/15/20 10/03 at 102 Aa3*** 460,629 Department of Water and Power of the City of Los Angeles (California), Electric Plant Revenue Bonds, Issue of 1994: 995 5.375%, 2/15/34 2/04 at 102 Aa3*** 996,990 11,085 5.375%, 2/15/34 2/04 at 102 Aa3 11,829,247 County of Orange, California, 1996 Recovery Certificates of Participation, Series A: 13,000 5.875%, 7/01/19 7/06 at 102 AAA 13,657,280 180 6.000%, 7/01/26 7/06 at 102 AAA 192,298 5,870 Sacramento Municipal Utility District (California), Electric 9/03 at 100 AAA 5,425,993 Revenue Refunding Bonds, 1993 Series G, 4.750%, 9/01/21 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding Revenue Bonds, Series 1997A: 5,000 0.000%, 1/15/17 1/14 at 102 AAA 3,725,600 5,000 0.000%, 1/15/26 No Opt. Call AAA 1,224,750 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.8% 3,000 City and County of Broomfield Building Corporation, Colorado, 12/09 at 100 AAA 3,090,960 Master Facilities Lease Purchase Agreement, Certificates of Participation, Series 1999, 5.750%, 12/01/24 24,900 Colorado Health Facilities Authority, Retirement Facilities No Opt. Call AAA 5,071,632 Revenue Bonds (Liberty Heights), Series 1991B, 0.000%, 7/15/24 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 3,240 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 3,322,523 (Pre-refunded to 11/15/01) 9,010 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 9,177,316 2,785 City and County of Denver, Colorado, Airport System Revenue 11/02 at 102 A 2,951,710 Bonds, Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax) 6,020 City and County of Denver, Colorado, Airport System Revenue 11/02 at 102 A 6,326,719 Bonds, Series 1992C, 6.750%, 11/15/22 (Alternative Minimum Tax) City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 3,955 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 4,109,166 3,940 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,998,667 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) $ 11,465 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA $ 12,064,046 Refunding Bonds, Series 2000A, 6.000%, 11/15/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.5% 5,525 Miami-Dade County Industrial Development Authority, Special No Opt. Call Baa3 5,582,792 Facilities Revenue Bonds (United Air Lines, Inc. Project), Series 2000, 6.050%, 3/01/35 (Alternative Minimum Tax) (Mandatory put 3/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.7% 15,000 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101 AAA 15,289,650 Bonds, Series 2000A, 5.600%, 1/01/30 14,000 Fulton County Facilities Corporation, Certificates of 11/10 at 101 AAA 14,329,700 Participation (Fulton County, Georgia - Public Purpose Project), Series 1999, 5.500%, 11/01/18 8,000 State of Georgia, General Obligation Bonds, 1995 Series C, No Opt. Call AAA 9,450,240 7.250%, 7/01/08 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 7.7% 6,500 City of Chicago, Illinois, Gas Supply Refunding Revenue 6/05 at 102 AA- 6,723,145 Bonds, 1995 Series A (The Peoples Gas Light and Coke Company Project), 6.100%, 6/01/25 11,250 City of Chicago (Illinois), Chicago-Midway Airport 1/09 at 101 AAA 10,419,638 Revenue Bonds, Series 1998B, 5.000%, 1/01/28 4,000 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 4,759,360 Certificates of Participation, 8.750%, 1/01/06 5,210 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102 A 5,336,082 Housing Revenue Bonds (Garden House of River Oaks West Development), Series 1992A, 6.875%, 1/01/20 1,345 Illinois Housing Development Authority, Section 8 Elderly 3/03 at 102 A 1,401,732 Housing Revenue Bonds (Village Center Development), Series 1992C, 6.600%, 3/01/07 38,645 State of Illinois, General Obligation Bonds, Illinois First, 4/10 at 100 AAA 38,873,006 Series of April 2000, 5.500%, 4/01/25 1,055 City of Peoria, Peoria County, City of Pekin, Tazewell 8/01 at 102 AA 1,083,232 and Peoria Counties, and City of Waukegan, Lake County (Illinois), Jointly, GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax) Regional Transportation Authority of Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 2000A: 5,575 5.750%, 7/01/10 No Opt. Call AAA 6,073,795 5,650 6.000%, 7/01/11 No Opt. Call AAA 6,269,353 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.0% 9,175 Fort Wayne (Indiana), Economic Development Revenue Bonds 4/08 at 102 N/R 8,166,117 (Oaklawn Court Apartments Project), Series 1998A, 7.000%, 4/01/28 (Alternative Minimum Tax) 20,695 Indianapolis Airport Authority, Specialty Facility Revenue 11/05 at 102 Baa2 19,683,221 Bonds, Series 1995A (United Air Lines, Inc. - Indianapolis Maintenance Center Project), 6.500%, 11/15/31 (Alternative Minimum Tax) 3,750 The Indianapolis Local Public Improvement Bond Bank, 2/03 at 102 AA 3,990,900 Series 1992D Bonds, 6.750%, 2/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.4% 4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, No Opt. Call N/R 4,163,113 Series 1997 (IPSCO Project), 6.000%, 6/01/27 (Alternative Minimum Tax) (Mandatory put 6/01/07) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.0% Jefferson County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2000A: 3,045 5.250%, 7/01/17 1/10 at 101 AAA 3,063,331 7,490 5.250%, 7/01/20 1/10 at 101 AAA 7,422,440 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.8% 19,150 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100 AAA 18,646,738 Bonds, 2000 Series A, 5.250%, 7/01/30 5,400 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 5,624,154 Revenue Bonds, New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25 4,175 Massachusetts Health and Educational Facilities Authority, 7/01 at 101 BBB 3,855,320 Revenue Bonds, Goddard Memorial Hospital Issue, Series B, 9.000%, 7/01/15 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) $ 6,400 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA $ 5,804,864 Revenue Bonds, Senior Series 1997C,5.000%, 1/01/37 10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101 AAA 10,299,000 2000 Series A, 5.750%, 8/01/39 6,195 University of Massachusetts Building Authority, Facilities 11/10 at 100 AAA 5,960,953 Revenue Bonds, Senior Series 2000A, Commonwealth Guaranteed, 5.125%, 11/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.3% 4,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 4,643,640 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 8,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB 8,671,275 (Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 5.2% 13,675 State of Minnesota, General Obligation Bonds, 11/10 at 100 AAA 13,788,639 Series 2000, 5.125%, 11/01/16 5,000 Minnesota Housing Finance Agency, Single Family Mortgage 1/11 at 101 AA+ 5,197,150 Bonds, Remarketed 1998 Series H-2, 6.050%, 7/01/31 (Alternative Minimum Tax) 30,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101 A 30,998,700 Health Care System Revenue Bonds, Series 2000A (Fairview Health Services), 6.375%, 11/15/29 3,600 The Housing and Redevelopment Authority of the City of 11/15 at 103 AAA 4,309,272 St. Paul, Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project), Series 1996, 7.100%, 11/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.0% 5,900 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102 BBB- 5,362,274 Revenue Refunding Bonds (System Energy Resources, Inc. Project), Series 1998, 5.875%, 4/01/22 4,950 Mississippi Home Corporation, Single Family Mortgage Revenue 7/07 at 105 Aaa 5,232,101 Bonds, Series 1997D, Class 5, 6.750%, 7/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.9% 21,000 Director of the State of Nevada, Department of Business 1/10 at 100 AAA 20,238,120 and Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.375%, 1/01/40 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.4% 1,670 Pollution Control Financing Authority of Camden County No Opt. Call B2 1,656,523 (New Jersey), Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991 C, 7.125%, 12/01/01 (Alternative Minimum Tax) 1,815 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 1,711,364 (New Jersey), Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10 21,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100 AA 22,196,580 System Bonds, 2000 Series B, 5.750%, 6/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.4% 4,120 New Mexico Mortgage Finance Authority, Single Family Mortgage 9/01 at 101 AAA 4,208,415 Program Senior Bonds, 1990 Series A (Federally Insured or Guaranteed Mortgage Loans), 7.800%, 9/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 17.9% 10,000 Erie County Industrial Development Agency (New York), Solid 12/10 at 103 N/R 5,000,000 Waste Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna Project), 9.050%, 12/01/25 (Alternative Minimum Tax) 11,000 Nassau County Tobacco Settlement Corporation (New York), 7/09 at 101 A- 11,373,340 Tobacco Settlement Asset-Backed Bonds, Series A, 6.400%, 7/15/33 10,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 10,283,100 Fiscal 1996 Series G, 5.750%, 2/01/20 21,715 The City of New York, New York, General Obligation Bonds, 3/06 at 101 1/2 A 22,647,225 Fiscal 1996 Series I, 5.875%, 3/15/18 10,000 The City of New York, New York, General Obligation Bonds, 8/07 at 101 A 10,595,700 Fiscal 1997 Series H, 6.125%, 8/01/25 6,750 The City of New York, New York, General Obligation Bonds, 2/05 at 101 Aaa 7,491,893 Fiscal 1995 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 2,550 New York City Municipal Water Finance Authority, Water and 6/02 at 101 1/2 AAA 2,602,683 Sewer System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 17,870 New York City Transitional Finance Authority, Future Tax 8/09 at 101 AA+ $ 18,708,103 Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24 15,000 Dormitory Authority of the State of New York, City University No Opt. Call A3 16,503,600 System Consolidated Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/03 20,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 AA- 20,482,000 Services Facilities Improvement Revenue Bonds, Series 1997A, 5.750%, 2/15/27 4,500 New York State Energy Research and Development Authority, 7/03 at 102 AAA 4,538,745 Gas Facilities Revenue Bonds, Series C (The Brooklyn Union Gas Company Project), 5.600%, 6/01/25 (Alternative Minimum Tax) 900 New York State Housing Finance Agency (New York City), 5/01 at 102 A 909,810 Health Facilities Revenue Bonds, 1990 Series A Refunding, 8.000%, 11/01/08 5,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 5,630,150 Brookdale Hospital Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) 4,785 New York State Medical Care Facilities Finance Agency, 11/05 at 102 Aa1 5,104,542 Health Center Projects Revenue Bonds (Secured Mortgage Program), Series 1995A, 6.375%, 11/15/19 10,000 The Port Authority of New York and New Jersey, Special 12/07 at 102 AAA 10,408,100 Project Bonds, Series 6 (JFK International Air Terminal LLC Project), 5.750%, 12/01/22 (Alternative Minimum Tax) 7,000 Triborough Bridge and Tunnel Authority, New York, 1/10 at 100 Aa3 7,078,750 General Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30 26,500 TSASC, Inc. (New York), Tobacco Flexible Amortization Bonds, 7/09 at 101 Aa2 27,253,130 Series 1999-1, 6.250%, 7/15/34 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.0% 10,500 North Carolina Eastern Municipal Power Agency, Power System 1/02 at 102 BBB 10,796,625 Revenue Bonds, Refunding Series 1991 A, 6.250%, 1/01/03 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 2.7% 22,905 City of Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101 AAA 23,061,441 MertiCare Obligated Group, Series 2000A, 5.625%, 6/01/31 North Dakota State Water Commission, Water Development Trust Fund, Water Development and Management Program Bonds, 2000 Series A: 2,230 5.700%, 8/01/18 8/10 at 100 AAA 2,316,680 2,450 5.750%, 8/01/19 8/10 at 100 AAA 2,548,662 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.6% 16,140 County of Montgomery, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call BBB+ 16,487,817 Series 1999 (Kettering Medical Center - Network Obligated Group), 6.300%, 4/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.8% 5,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa1 5,115,500 Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) 3,300 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, No Opt. Call Baa1 3,324,948 Revenue Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.0% City of Portland, Oregon, Water System Revenue Bonds, 2000 Series A: 6,780 5.375%, 8/01/18 8/10 at 100 Aa1 6,903,057 3,655 5.500%, 8/01/20 8/10 at 100 Aa1 3,730,366 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.5% 5,000 Delaware County Industrial Development Authority 1/08 at 102 BB- 4,787,500 (Pennsylvania), Refunding Revenue Bonds, Series A 1997 (Resource Recovery Facility), 6.200%, 7/01/19 15,000 Delaware River Port Authority, Revenue Refunding Bonds, No Opt. Call AAA 15,902,550 Series B of 1998, 5.250%, 1/01/08 5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100 AAA 5,193,200 Acquisition Bonds, Series of 2000, 5.875%, 12/15/30 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.5% $ 3,640 South Carolina Jobs-Economic Development Authority, Economic 9/02 at 102 N/R*** $ 3,894,618 Development Revenue Bonds (Carolinas Hospital System Project), Series 1992, 7.550%, 9/01/22 (Pre-refunded to 9/01/02) 2,335 Three Rivers Solid Waste Authority (South Carolina), Solid 1/07 at 102 AAA 2,275,691 Waste Disposal Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27 10,000 Tobacco Settlement Revenue Management Authority, Tobacco 5/11 at 101 A1 9,935,900 Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.2% 3,000 The Health and Educational Facilities Board of the 7/03 at 102 N/R 2,390,970 Metropolitan Government of Nashville and Davidson County, Tennessee, Revenue Refunding Bonds, Series 1998 (The Blakeford at Green Hills), 5.650%, 7/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 16.2% 6,000 Alliance Airport Authority, Inc., Special Facilities Revenue 6/01 at 102 BBB- 6,131,160 Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) Arlington Independent School District (Tarrant County, Texas), Unlimited Tax Refunding and Improvement Bonds, Series 1995: 3,710 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 2,046,955 3,710 0.000%, 2/15/13 2/05 at 62 15/16 Aaa 1,905,901 12,000 City of Austin, Texas, Hotel Occupancy Tax Subordinate Lien 11/09 at 100 AAA 12,327,120 Revenue Refunding Bonds, Series 1999, 5.800%, 11/15/29 Brownsville Independent School District (Cameron County, Texas), Unlimited Tax School Building Bonds, Series 1999: 5,015 5.625%, 8/15/25 8/09 at 100 AAA 5,070,817 8,825 5.625%, 8/15/29 8/09 at 100 AAA 8,905,661 Clear Creek Independent School District, Galveston and Harris Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000: 17,325 5.400%, 2/15/18 2/10 at 100 AAA 17,430,683 10,000 5.650%, 2/15/19 2/10 at 100 AAA 10,236,900 6,880 5.700%, 2/15/20 2/10 at 100 AAA 7,048,904 8,020 5.700%, 2/15/21 2/10 at 100 AAA 8,205,663 6,000 Dallas-Fort Worth International Airport Facilities Improvement 11/09 at 101 BBB- 5,991,720 Corporation, Texas, Revenue Bonds (American Airlines, Inc.), Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax) 14,375 Dallas-Fort Worth International Airport Facilities Improvement No Opt. Call BBB- 14,840,463 Corporation, Texas, Revenue Refunding Bonds (American Airlines, Inc.), Series 2000C, 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 21,500 City of Houston, Texas, Airport System Subordiniate Lien 7/10 at 100 AAA 21,328,430 Revenue Bonds, Series 2000B, 5.500%, 7/01/30 6,235 City of Houston, Texas, Water and Sewer System Revenue Bonds, 12/09 at 100 AAA 5,777,289 Refunding Series 1999A, 5.000%, 12/01/28 22,500 City of Houston, Texas, Water and Sewer System Junior Lien 12/10 at 100 AAA 21,633,975 Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30 15,000 San Antonio Independent School District (Bexar County, Texas), 8/09 at 100 AAA 15,418,650 Unlimited Tax School Building Bonds, Series 1999, 5.800%, 8/15/29 4,538 General Services Commission (An Agency of the State of Texas), 9/01 at 101 A 4,640,624 as Lessee, Participation Interests, 7.500%, 9/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.1% 4,750 Tooele County, Hazardous Waste Disposal Revenue Bonds 8/05 at 102 N/R 950,000 (Laidlaw Inc./USPCI Clive Project), Series 1995, 6.750%, 8/01/10 (Alternative Minimum Tax) # - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.2% 2,000 Virginia Housing Development Authority, Multifamily 5/02 at 102 AA+ 2,072,500 Housing Bonds, 1992 Series D, 7.050%, 5/01/18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 6.2% $ 5,500 Public Utility District No. 1 of Clark County, Washington, 1/11 at 100 AAA $ 5,313,660 Generating System Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A 8/10 at 100 AAA 33,799,448 , 5.625%, 2/01/30 6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100 AAA 7,009,145 5.625%, 2/01/24 (Alternative Minimum Tax) 9,000 Washington Higher Education Facilities Authority, Revenue 4/08 at 101 AAA 8,817,210 and Refunding Bonds (The University of Puget Sound Project), Series 1998, 5.375%, 10/01/30 7,890 Washington Higher Education Facilities Authority, Revenue 11/09 at 101 AA 8,163,389 Bonds (Pacific Lutheran University Project), Series 1999, 5.950%, 11/01/29 2,275 Washington Public Power Supply System, Nuclear Project 7/01 at 102 Aaa 2,333,536 No. 1 Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.6% 4,995 City of Milwaukee, Milwaukee County, Wisconsin, General No Opt. Call AA 5,360,284 Obligation Corporate Purpose Bonds, Series R, 5.500%, 9/01/08 1,750 Wisconsin Health and Educational Facilities Authority, 3/08 at 101 N/R 1,353,468 Revenue Bonds, Series 1998 (United Lutheran Program for the Aging, Inc.), 5.700%, 3/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.3% 2,800 National Rural Utilities Cooperative Finance Corporation, 5/07 at 101 A+ 2,822,900 Town of Jackson, Wyoming, Guaranteed Gas Supply Revenue Bonds (Lower Valley Power and Light, Inc. Project), Series 1997B, 5.875%, 5/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,053,493 Total Investments (cost $1,002,789,642) - 98.5% 1,033,112,678 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 15,966,319 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,049,078,997 ==================================================================================================================== * 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. Securities are normally considered to be equivalent to AAA rated securities. # Non-income producing security, in the case of a bond, generally denotes that issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. N/R Investment is not rated. See accompanying notes to financial statements.
Nuveen Dividend Advantage Municipal Fund (NAD) Portfolio of Investments April 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.5% $ 4,370 BMC Special Care Facilities Financing Authority of the City 11/08 at 102 AAA $ 4,269,883 of Montgomery (Alabama), Revenue Bonds,Series 1999-A (Baptist Medical Center), 5.250%, 5/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.1% 15,000 Maricopa County Pollution Control Corporation, Arizona, No Opt. Call BB+ 15,288,150 Pollution Control Revenue Remarketing Bonds, Series 1994A (El Paso Electric Company), 6.375%, 7/01/14 (Mandatory put 8/01/05) 2,500 The Industrial Development Authority of the City of Mesa, 1/10 at 101 AAA 2,538,900 Arizona, Revenue Bonds (Discovery Health System), Series 1999A, 5.625%, 1/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 1.7% 4,835 City of Los Angeles Unified School District, California, 7/08 at 102 AAA 4,670,755 General Obligation Bonds, 1997 Series A, 5.000%, 7/01/21 9,375 Sacramento County Sanitation Districts Financing Authority, 12/05 at 101 AA 9,708,188 Revenue Bonds, Series 2000A (Sacramento Regional County Sanitation District), 5.875%, 12/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 1.8% 10,000 City and County of Denver (Colorado), Airport Revenue Bonds, 11/06 at 101 AAA 10,045,600 Series 1996D, 5.500%, 11/15/25 1,475 City and County of Denver (Colorado), Multifamily Housing 10/07 at 102 AAA 1,483,717 Revenue Bonds (FHA-Insured Mortgage Loan - The Boston Lofts Project), Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax) 3,205 City and County of Denver (Colorado), Airport Special 1/09 at 101 AAA 3,444,670 Facilities Revenue Bonds (Rental Car Projects), Series 1999A, 6.000%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.4% Connecticut Development Authority, Health Facility Refunding Revenue Bonds (Alzheimers Resource Center of Connecticut, Inc. Project), Series 1994A: 1,045 6.875%, 8/15/04 No Opt. Call N/R 1,019,596 2,700 7.125%, 8/15/14 8/04 at 102 N/R 2,535,570 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.9% 1,630 Florida Housing Finance Agency, Housing Revenue Bonds, 12/07 at 102 AAA 1,665,029 1997 Series F (Mar Lago Village Apartments Project), 5.800%, 12/01/17 (Alternative Minimum Tax) 13,625 Martin County Industrial Development Authority, Florida, 12/04 at 102 BBB- 14,160,190 Industrial Development Revenue Bonds (Indiantown Cogeneration LP Project), Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.9% 4,000 Forsyth County Water and Sewerage Authority, Georgia, 4/10 at 102 Aa2 4,483,920 Revenue Bonds, Series 2000, 6.000%, 4/01/25 3,500 The Hospital Authority of Hall County and the City of 5/09 at 101 AAA 3,520,020 Gainesville, Revenue Anticipation Certificates (Northeast Georgia Health System, Inc. Project), Series 1999, 5.500%, 5/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.7% 1,395 Idaho Housing and Finance Association, Single Family 7/09 at 101 Aa2 1,417,418 Mortgage Bonds, 1999 Series E, 5.750%, 1/01/21 2,410 Idaho Housing and Finance Association, Single Family 1/10 at 100 Aa2 2,516,088 Mortgage Bonds, 2000 Series D, 6.350%, 7/01/22 2,000 Idaho Housing and Finance Association, Single Family 7/10 at 100 Aaa 2,059,900 Mortgage Bonds, 2000 Series E, 5.950%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 21.6% 3,500 Village of Channahon (Illinois), Revenue Refunding Bonds, 12/09 at 102 BBB+ 3,252,340 Series 1999 (Morris Hospital), 5.750%, 12/01/12 22,750 City of Chicago (Illinois), General Obligation Bonds No Opt. Call AAA 23,464,123 (Emergency Telephone System), Refunding Series 1999, 5.500%, 1/01/23 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 7,250 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA $ 7,466,920 Education of the City of Chicago, Illinois,Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1999A, 5.500%, 12/01/26 City of Chicago, Multifamily Housing Revenue Bonds (Archer Court Apartments), Series 1999A (FHA-Insured/GNMA): 1,000 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101 AAA 981,640 1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101 AAA 1,182,243 1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101 AAA 1,861,129 4,940 City of Chicago (Illinois), Wastewater Transmission 1/06 at 102 AAA 4,680,403 Revenue Bonds, Series 1995, 5.125%, 1/01/25 3,250 City of Chicago (Illinois), Water Revenue Bonds, 11/06 at 102 AAA 3,018,308 Series 1995, 5.000%, 11/01/25 5,000 City of Chicago (Illinois), Water Revenue Bonds, 11/07 at 102 AAA 4,834,100 Series 1997, 5.250%, 11/01/27 24,835 Illinois Development Finance Authority, Refunding Revenue 9/07 at 102 AAA 25,079,625 Bonds, Series 1999 (The Presbyterian Home Lake Forest Project), 5.625%, 9/01/31 3,935 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 1,891,869 Program Revenue Bonds, Series 1999A (Round Lake Community - Unit School District Number 116 Project), 0.000%, 1/01/15 2,750 Illinois Educational Facilities Authority, Revenue Bonds 9/09 at 100 AAA 2,797,878 (MJH Education Assistance Illinois LLC), Series 1998D, 5.450%, 9/01/14 Illinois Health Facilities Authority, Revenue Bonds, Series 1997A (Loyola University Health System): 1,600 5.000%, 7/01/24 (Pre-refunded to 7/01/07) 7/07 at 101 AAA 1,689,712 5,400 5.000%, 7/01/24 7/07 at 101 AAA 4,998,402 5,265 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102 A- 4,884,498 Series 1996B (Sarah Bush Lincoln Health Center), 5.500%, 2/15/16 17,280 Illinois Health Facilities Authority, Converted Adjustable 10/07 at 102 AAA 18,326,822 Rate Revenue Bonds, Series 1991A (Highland Park Hospital), 6.000%, 10/01/15 10,000 Illinois Health Facilities Authority, Revenue Bonds, 8/11 at 103 Aa1 9,981,400 University of Chicago, Series 1985A, Remarketed, 5.500%, 8/01/20 (WI, settling 5/01/01) 7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/01 at 102 Baa3 5,915,977 Series 1991 (Proctor Community Hospital Project), 7.375%, 1/01/23 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Refunding Bonds, Series 1996A: 9,750 0.000%, 12/15/22 No Opt. Call AAA 2,813,850 13,000 0.000%, 12/15/24 No Opt. Call AAA 3,329,170 20,500 Metropolitan Pier and Exposition Authority (Illinois), 12/09 at 101 AAA 20,588,560 McCormick Place Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999: 22,650 5.750%, 6/01/19 No Opt. Call AAA 24,221,910 3,500 5.750%, 6/01/23 No Opt. Call AAA 3,724,665 4,500 School District Number 122, Will County, Illinois (New Lenox), No Opt. Call Aaa 1,694,160 Capital Appreciation Bonds, Series 2000B, 0.000%, 11/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.4% 8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101 1/2 AAA 7,929,760 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/26 8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101 AAA 8,703,346 Bonds (Charity Obligated Group), Series 1999D, 5.500%, 11/15/24 4,190 City of Indianapolis, Indiana, Economic Development Revenue 6/09 at 101 Aa3 4,247,571 Bonds (Park Tudor Foundation Inc., Project), Series 1999, 5.700%, 6/01/24 28,645 The Indianapolis Local Public Improvement Bond Bank (Indiana) No Opt. Call AAA 8,206,506 , Series 1999E, 0.000%, 2/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.4% 11,260 Iowa Higher Education Loan Authority, Private College 10/10 at 102 N/R 11,623,022 Facility Revenue Bonds (Waldorf College Project), Series 1999, 7.375%, 10/01/19 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% $ 3,825 City of Wichita, Kansas, Water and Sewer Utility 10/06 at 101 AAA $ 3,238,628 Revenue Bonds, Series 1999, 4.000%, 10/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 4.4% 3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101 Aa3 3,159,320 School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20 Kentucky Economic Development Finance Authority, Hospital System Refunding and Improvement Revenue Bonds, Series 1997 (Appalachian Regional Healthcare, Inc. Project): 1,850 5.850%, 10/01/17 4/08 at 102 N/R 1,384,374 7,000 5.875%, 10/01/22 4/08 at 102 N/R 5,004,160 3,000 Louisville and Jefferson County Metropolitan Sewer District 11/07 at 101 AAA 2,929,530 (Commonwealth of Kentucky), Sewer and Drainage System Revenue Bonds, Series 1997B, 5.200%, 5/15/25 City of Newport Public Properties Corporation, Kentucky, First Mortgage Revenue Bonds, Series 2000A (Public Parking and Plaza Project): 17,240 8.375%, 1/01/18 7/10 at 104 N/R 17,178,453 3,000 8.500%, 1/01/27 7/10 at 104 N/R 2,987,610 4,985 8.375%, 1/01/27 7/10 at 104 N/R 4,845,071 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.3% 2,245 City of Lafayette, State of Louisiana, Public Improvement 5/10 at 101 1/2 AAA 2,290,192 Sales Tax Bonds, Series 2000B, 5.625%, 5/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.6% 5,000 Community Development Administration, Maryland Department of 9/09 at 100 Aa2 5,124,900 Housing and Community Development, Residential Revenue Bonds, 2000 Series G, 5.950%, 9/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.3% 785 Massachusetts Port Authority, Special Facilities Revenue 9/06 at 102 AAA 804,123 Bonds (US Air Project), Series 1996-A, 5.875%, 9/01/23 (Alternative Minimum Tax) 1,745 Massachusetts Housing Finance Agency, Single Family Housing 12/04 at 102 Aa3 1,818,447 Revenue Bonds, Series 32, 6.600%, 12/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.6% 9,000 The Economic Development Corporation of the County of 7/07 at 101 BB+ 9,179,730 Midland, Michigan, Subordinated Pollution Control Limited Obligation Revenue Refunding Bonds (Midland Cogeneration Project), Series 2000A, 6.875%, 7/23/09 (Alternative Minimum Tax) 4,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 102 AAA 4,011,400 County Airport, Airport Revenue Bonds, Series 1998A, 5.375%, 12/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.4% 3,480 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101 AA+ 3,506,518 Bonds, 1998 Series H-1 Fixed Rate (Remarketing), 5.650%, 7/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.0% 6,715 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100 AA+ 7,031,478 2000 Series A2, 6.450%, 6/01/29 (Alternative Minimum Tax) 1,000 Montana Higher Education Student Assistance Corporation, 12/09 at 100 A2 1,019,080 Student Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.3% 2,000 Nebraska Higher Education Loan Program Inc., Senior No Opt. Call AAA 2,140,560 Subordinate Bonds, Series A-5A, 6.200%,6/01/13 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 2.0% 16,360 New Hampshire Housing Finance Authority, Single Family 7/05 at 102 Aa2 17,197,141 Mortgage Acquisition Revenue Bonds, 1995 Series D, 6.550%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.7% 4,000 Higher Education Student Assistance Authority of the State of 6/10 at 101 AAA 4,290,720 New Jersey, Student Loan Revenue Bonds, 2000 Series A, 6.000%, 6/01/13 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY (continued) $ 15,600 New Jersey Economic Development Authority, Solid Waste No Opt. Call N/R $ 12,168,000 Facilities Revenue Bonds (Bridgewater Resources Inc. Project), Series 1999B, 8.250%, 6/01/19 (Alternative Minimum Tax) 4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA 4,320,560 System Bonds, 1999 Series A, 5.750%, 6/15/18 10,000 The Port Authority of New York and New Jersey, Special Project 12/07 at 102 AAA 10,636,600 Bonds, Series 6 (JFK International Air Terminal LLC Project), 5.900%, 12/01/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 14.7% 2,000 County of Cattaraugus Industrial Development Agency, New York, No Opt. Call N/R 1,938,840 Tax-Exempt Industrial DevelopmentRevenue Bonds, Series 1999A (Laidlaw Energy and Environmental, Inc. Project), 8.500%, 7/01/21 (Alternative Minimum Tax) 5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101 AAA 4,920,250 Revenue Bonds, Series 1998A, 5.250%, 12/01/26 County of Nassau, New York, General Obligations, Serial General Improvement Bonds, Series B: 5,005 5.250%, 6/01/19 6/09 at 102 AAA 4,984,530 7,005 5.250%, 6/01/20 6/09 at 102 AAA 6,975,439 7,005 5.250%, 6/01/21 6/09 at 102 AAA 6,965,982 7,005 6/01/22 6/09 at 102 AAA 6,956,105 2,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101 AAA 2,057,080 Fiscal 1998 Series E, 5.250%, 8/01/14 14,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101 AAA 14,144,760 Fiscal 1998 Series F, 5.375%, 8/01/19 5,000 New York City Transitional Finance Authority, Future 8/07 at 101 AA+ 4,726,500 Tax Secured Bonds, Fiscal 1998 Series A, 5.000%, 8/15/27 10,000 New York City Transitional Finance Authority, Future Tax 8/09 at 101 AA+ 10,469,000 Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24 12,350 New York City Transitional Finance Authority, Future Tax 5/10 at 101 AA+ 12,497,459 Secured Bonds, Fiscal 2000 Series C, 5.500%, 11/01/29 14,970 Dormitory Authority of the State of New York, Mental Health 2/06 at 102 AAA 14,581,978 Services Facilities Improvement Revenue Bonds, Series 1996B, 5.125%, 8/15/21 4,400 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 AAA 4,409,416 Services Facilities Improvement Revenue Bonds, Series 1996E, 5.250%, 2/15/18 2,170 Dormitory Authority of the State of New York, Frances Schervier 7/07 at 102 AA 2,187,577 Home and Hospital Insured Revenue Bonds (Franciscan Health Partnership Obligated Group), Series 1997, 5.500%, 7/01/17 7,500 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101 1/2 AAA 7,412,100 Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%, 8/15/21 10,000 Dormitory Authority of the State of New York, City University 7/09 at 101 AAA 10,135,200 System Consolidated Third General Resolution Revenue Bonds, 1999 Series 1, 5.500%, 7/01/29 2,000 Dormitory Authority of the State of New York, City University 1/08 at 102 AAA 2,002,580 System Consolidated Third General Resolution Revenue Bonds, 1997 Series 1, 5.375%, 7/01/24 7,500 Empire Development Corporation, New York State Urban 1/06 at 102 AAA 7,503,525 Development Corporation, Correctional Capital Facilities Revenue Bonds, Series 6, 5.375%, 1/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.2% 1,950 North Carolina Municipal Power Agency Number 1, Catawba 1/08 at 102 AAA 1,868,783 Electric Revenue Bonds, Series 1998A, 5.000%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.9% 2,300 Amherst Exempted Village School District, Ohio, General 12/11 at 100 Aaa 2,242,776 Obligation Unlimited Tax School Improvement Bonds, Series 2001, 5.125%, 12/01/21 (WI, settling 5/02/01) 3,635 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103 Aa 3,487,492 Bonds, Series 1994A (FHA-Insured Mortgage Loan - Hamilton Creek Apartments Project), 5.550%, 7/01/24 (Alternative Minimum Tax) Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO (continued) Ohio Water Development Authority, State of Ohio, Solid Waste Disposal Revenue Bonds (Bay Shore Power Project), Convertible Series 1998B: $ 5,750 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102 N/R $ 4,834,370 14,000 6.625%, 9/01/20 9/09 at 102 N/R 12,824,700 1,115 Warren County, Ohio, Special Assessment Bonds, Waterstone 12/07 at 101 Aa2 1,140,957 Boulevard, Series 1997 General Obligation, 5.500%, 12/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.3% 2,255 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101 Aaa 2,285,420 Redevelopment Bonds, 2000 Series A, 5.500%, 6/15/20 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.3% Allegheny County Hospital Development Authority, Pennsylvania, Health System Revenue Bonds, Series 2000B, West Penn Allegheny Health System: 5,480 9.250%, 11/15/22 11/10 at 102 B+ 5,436,653 9,000 9.250%, 11/15/30 11/10 at 102 B+ 8,902,350 2,495 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,548,293 Resource Recovery Revenue Refunding Bonds, 2000 Series (Panther Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax) 18,900 City of Philadelphia, Pennsylvania, Airport Revenue Refunding 6/08 at 102 AAA 18,999,603 Bonds, Series 1998A (Philadelphia Airport System), 5.500%, 6/15/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.7% 1,875 City of Central Falls, Rhode Island, General Obligation 5/09 at 102 AA 1,980,113 School Bonds, 6.250%, 5/15/20 3,500 Providence Redevelopment Agency, Rhode Island (Public Safety 4/10 at 101 Aaa 3,605,140 and Municipal Building Projects), Revenue Bonds, 1999 Series A, 5.750%, 4/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.1% 2,105 The Health, Educational and Housing Facilities Board of the 4/09 at 101 Baa1 1,942,136 County of Knox, Revenue Bonds, Series 1999 (University Health System, Inc.), 5.625%, 4/01/24 5,260 Memphis-Shelby County Airport Authority (Tennessee), Airport 3/10 at 101 AAA 5,504,064 Revenue Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative Minimum Tax) 7,525 Tennessee Housing Development Agency, Homeownership Program 7/10 at 101 AA 7,953,850 Bonds, Issue 2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax) 2,500 Tennessee Housing Development Agency, Homeownership 7/10 at 100 AA 2,605,950 Program Bonds, Issue 2000-2B, 6.250%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.0% 10,000 City of Austin, Texas, Airport System Prior Lien Revenue 11/05 at 102 AAA 10,397,000 Bonds, Series 1995A, 6.125%, 11/15/25 (Alternative Minimum Tax) 4,675 Carrollton-Farmers Branch Independent School District 2/09 at 100 AAA 4,904,028 (Dallas County, Texas), School Building Unlimited Tax Bonds, Series 1999, 6.000%, 2/15/20 Coppell Independent School District (Dallas County, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1999: 5,130 0.000%, 8/15/20 8/09 at 52 15/32 AAA 1,630,724 7,000 0.000%, 8/15/21 8/09 at 49 15/32 AAA 2,088,520 7,345 0.000%, 8/15/23 8/09 at 44 AAA 1,932,616 7,000 0.000%, 8/15/24 8/09 at 41 1/2 AAA 1,730,820 7,350 0.000%, 8/15/25 8/09 at 39 1/8 AAA 1,707,552 7,000 0.000%, 8/15/26 8/09 at 36 29/32 AAA 1,527,610 10,000 Dallas-Fort Worth International Airport Facilities Improvement No Opt. Call BBB- 10,236,700 Corporation, Texas, Revenue Refunding Bonds, Series 2000B (American Airlines), 6.050%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/05) Harris County Health Facilities Development Corporation, Texas, Revenue Bonds, Christus Health, Series 1999A: 12,000 5.375%, 7/01/24 7/09 at 101 AAA 11,434,200 11,000 5.375%, 7/01/29 7/09 at 101 AAA 10,390,380 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 2,835 Harris County Housing Finance Corporation, Texas, 7/12 at 103 N/R $ 2,516,289 Multifamily Housing Revenue Bonds (Windfern Pointe and Waterford Place Apartments Projects), 1999 Junior Subordinate Series D, 9.000%, 7/01/29 12,150 Harris County Housing Finance Corporation, Texas, 7/09 at 102 A 10,635,989 Multifamily Housing Revenue Bonds (Windfern Pointe and Waterford Place Apartments Projects), 1999 Senior Series A, 6.000%, 7/01/29 30,000 City of Houston Water and Sewer System, Texas, Junior Lien No Opt. Call AAA 8,637,300 Revenue Refunding Bonds, Series 1998Aand 1998B, 0.000%, 12/01/22 2,500 Jefferson County, Texas, Certificates of Obligation, 8/10 at 100 AAA 2,640,475 Series 2000, 6.000%, 8/01/25 4,245 Laredo Independent School District (Webb County, Texas), 8/09 at 100 AAA 4,098,208 Unlimited Tax School Building Bonds, Series1999, 5.250%, 8/01/24 14,250 Leander Independent School District (Williamson and Travis 8/09 at 35 7/8 AAA 3,136,710 Counties, Texas), Unlimited Tax School Building and Refunding Bonds, Series 2000, 0.000%, 8/15/25 1,500 City of Port Arthur, Jefferson County, Texas, General 2/07 at 100 AAA 1,417,890 Obligation Bonds, Series 1997, 5.000%, 2/15/21 10,000 Tarrant County Health Facilities Development Corporation, 2/08 at 102 AAA 9,784,000 Texas, Texas Health Resources System Revenue Bonds, Series 1997A, 5.250%, 2/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.4% 935 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 AAA 971,727 1994 Issue F (Federally Insured or Guaranteed Mortgage Loans), 7.000%, 7/01/27 (Alternative Minimum Tax) Utah Housing Finance Agency, Single Family Mortgage Bonds, 1999 Series C-2 Class I Bonds: 3,190 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101 1/2 AAA 3,238,648 1,575 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101 1/2 AA 1,601,240 2,665 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101 AA 2,731,625 1999 Series D (Federally Insured or Guaranteed Loans), 5.850%, 7/01/21 (Alternative Minimum Tax) 995 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101 1/2 Aa2 1,051,198 1999 Series F, 6.300%, 7/01/21 1,800 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA- 1,858,212 2000 Series F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.0% 4,815 Metropolitan Washington Airports Authority, Virginia, Airport 10/04 at 100 AAA 4,818,467 System Revenue Bonds, Series 1994A, 5.500%, 10/01/24 (Alternative Minimum Tax) 3,395 Virginia Small Business Financing Authority, Industrial 11/09 at 102 N/R 3,357,282 Development Revenue Bonds (S.I.L. Clean Water, LLC Project), Series 1999, 7.250%, 11/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.4% Port of Seattle (Washington), Special Facility Revenue Bonds (Terminal 18 Project), Series 1999B: 1,755 6.000%, 9/01/15 (Alternative Minimum Tax) 3/10 at 101 AAA 1,861,195 2,590 6.000%, 9/01/16 (Alternative Minimum Tax) 3/10 at 101 AAA 2,734,470 Port of Seattle (Washington), Special Facility Revenue Bonds (Terminal 18 Project), Series 1999C: 875 6.000%, 9/01/15 (Alternative Minimum Tax) 3/10 at 101 AAA 927,946 1,260 6.000%, 9/01/16 (Alternative Minimum Tax) 3/10 at 101 AAA 1,330,283 11,605 State of Washington, Certificates of Participation (Washington 7/09 at 100 AAA 11,598,153 State Convention and Trade Center), Series 1999, 5.250%, 7/01/16 3,350 State of Washington, General Obligation Compound Interest No Opt. Call AAA 1,311,626 Bonds, Series 1999S-2, 0.000%, 1/01/18 State of Washington, General Obligation Compound Interest Bonds, Series 1999S-3: 17,650 0.000%, 1/01/20 No Opt. Call AA+ 6,180,854 18,470 0.000%, 1/01/21 No Opt. Call AA+ 6,066,841 4,800 Washington Public Power Supply System, Nuclear Project 7/07 at 102 AAA 4,801,200 No. 3 Refunding Revenue Bonds, Series 1997-A, 5.250%, 7/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.3% 3,800 Wisconsin Health and Educational Facilities Authority, Revenu e 5/09 at 101 A 3,357,906 Bonds, Series 1999 (Kenosha Hospital and Medical Center, Inc. Project), 5.625%, 5/15/29 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1999 (FH Healthcare Development, Inc. Project): $ 8,225 6.250%, 11/15/20 11/09 at 101 N/R $ 7,340,810 5,000 6.250%, 11/15/28 11/09 at 101 N/R 4,333,000 12,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101 Aaa 12,723,350 Bonds, Series 1999 (Mercy Health System Corporation), 5.500%, 8/15/25 - ------------------------------------------------------------------------------------------------------------------------------------ $ 968,845 Total Investments (cost $821,823,981) - 98.7% 832,558,113 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 10,845,369 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 843,403,482 ==================================================================================================================== * 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.
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) Portfolio of Investments April 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 3.0% $ 12,220 Valdez Marine Terminal (BP Pipelines, Inc.), 5.850%, 8/01/25 8/03 at 102 AA+ $ 12,292,098 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.5% 6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101 AAA 5,914,140 Stanford University, Series Q, 5.250%, 12/01/32 (WI, settling 5/03/01) 13,825 State of California, Veterans General Obligation Bonds, Series 2001, 6/06 at 101 AAA 13,741,635 5.550%, 12/01/25 (WI, settling 5/03/01) 3,000 Department of Water and Power of the City of Los Angeles, 7/11 at 100 AA 2,810,100 California, Waterworks Revenue Bonds, Series 2001A Refunding, 5.125%, 7/01/41 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.4% 1,580 City and County of Denver, Colorado, Airport System Revenue 11/02 at 102 A 1,660,501 Bonds, Series 1992C, 6.750%, 11/15/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.2% 15,270 City of Chicago, Illinois, General Obligation Bonds, 1/11 at 101 AAA 14,578,269 Project and Refunding Series 2001A, 5.250%, 1/01/33 3,710 City of Chicago, Illinois, Multifamily Housing Revenue Bonds 12/11 at 100 AAA 3,661,139 (Stone Terrace Apartments Project), FHA-Insured/GNMA, Series 2001A, 5.750%, 12/20/42 (Alternative Minimum Tax) 1,755 City of Chicago, Illinois, O'Hare International Airport, No Opt. Call Baa2 1,752,964 Special Facility Revenue Bonds (United Air Lines Inc. Project), Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13) 5,000 City of Chicago, Collateralized Single Family Mortgage 4/11 at 105 AAA 5,295,150 Revenue Bonds, Series 2001A, 6.250%, 10/01/32 5,000 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100 AAA 4,927,550 Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32 7,000 Illinois Health Facilities Authority, Revenue Bonds, 2/11 at 101 AAA 6,655,530 Series 2001, Edward Hospital Obligation Group, 5.250%, 2/15/34 4,980 Metropolitan Pier and Exposition Authority (Illinois), 6/06 at 102 AAA 4,816,855 McCormick Place Expansion Project Refunding Bonds, Series 1996A, 5.250%, 6/15/27 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.2% 6,000 St. Joseph County Hospital Authority, Indiana, Health System 2/09 at 102 BBB 5,094,840 Revenue Bonds (Madison Center Inc.Project), Series 1999, 5.800%, 2/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 8.3% 15,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 13,605,150 System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37 20,000 Massachusetts Water Resources Authority, General Revenue Bonds, 7/02 at 100 Aaa 20,508,800 1992 Series A, 5.500%, 7/15/22 (Pre-refunded to 7/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.4% 2,000 Michigan State Hospital Finance Authority, Hospital 8/08 at 101 BBB- 1,566,960 Revenue Bonds (The Detroit Medical Center Obligated Group), Series 1998A, 5.125%, 8/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.7% 8,000 Director of the State of Nevada, Department of Business and 1/10 at 100 AAA 7,709,760 Industry, Las Vegas Monorail Project Revenue Bonds, First Tier Series 2000, 5.375%, 1/01/40 4,000 Henderson, Nevada, Health Care Facility Revenue Bonds, 7/08 at 101 BBB 3,369,920 Catholic Healthcare West, Series 1998A, 5.250%, 7/01/18 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 6.1% $ 12,200 Business Finance Authority of the State of New Hampshire, 10/03 at 102 A3 $ 11,763,484 Pollution Control Refunding Revenue Bonds (The United Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33 8,000 New Hampshire Business Finance Authority, Pollution Control 10/08 at 102 BBB 7,794,000 Revenue Bonds, Connecticut Light and Power Company, Series 1992A Refunding, Remarketed, 5.850%, 12/01/22 5,215 New Hampshire Housing Finance Authority, Single Family 5/11 at 100 Aa2 5,219,589 Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative Minimum Tax) (WI, settling 5/15/01) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.0% 3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101 BB 4,057,242 Revenue Bonds (Continental Airlines Inc. Project), Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.7% 20,000 New York City Municipal Water Finance Authority, Water and 6/11 at 101 AA 19,120,000 Sewer System Revenue Bonds, Fiscal 2001 Series C, 5.125%, 6/15/33 (WI, settling 5/15/01) - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.1% 4,500 North Carolina Eastern Municipal Power Agency, Power System 1/09 at 102 BBB 4,394,700 Revenue Bonds, Series 1999B Refunding, 5.600%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.5% 15,000 State of Oregon, Department of Administrative Services, 5/11 at 101 AAA 14,211,600 Certificates of Participation, 2001 Series D, 5.000%, 5/01/26 (WI, settling 5/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 6.6% City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, Fourteenth Series: 10,000 6.375%, 7/01/14 7/03 at 102 BBB 10,159,400 17,000 6.375%, 7/01/26 7/03 at 102 BBB 16,767,610 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.2% 4,820 South Dakota Housing Development Authority, Home Ownership 5/09 at 102 AAA 4,772,619 Mortgage Bonds, 1997 Series E4, Remarketed, 5.450%, 5/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 16.5% 7,500 City of Austin, Texas, Electric Utility System Revenue Bonds, 11/10 at 100 AAA 6,919,350 Series 2001 Refunding, 5.000%, 11/15/30 Dallas-Fort Worth International Airport Public Facility Improvement Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001: 15,000 5.250%, 1/15/26 1/09 at 100 AAA 14,426,700 1,750 5.200%, 1/15/31 1/09 at 100 AAA 1,659,980 40,000 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 54 1/32 AAA 3,557,600 Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 (WI, settling 5/17/01) 30,980 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100 AAA 29,097,655 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 (WI, settling 5/17/01) Hays Consolidated Independent School District, Hays County, Texas, General Obligation School Building Bonds, Series 2001: 10,715 0.000%, 8/15/25 (WI, settling 5/15/01) 8/11 at 43 3/16 AAA 2,489,309 12,940 0.000%, 8/15/26 (WI, settling 5/15/01) 8/11 at 43 3/16 AAA 2,823,896 City of Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Series 2001B Convention Project: 5,000 0.000%, 9/01/30 (WI, settling 5/08/01) No Opt. Call AAA 880,150 5,000 0.000%, 9/01/31 (WI, settling 5/08/01) No Opt. Call AAA 829,500 5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100 Baa3 4,963,100 Hospital Revenue Bonds (Wilson N. Jones Memorial Hospital Project), Series 2001, 7.250%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.7% 3,100 Salt Lake City, Utah, Hospital Revenue Bonds, Series 1992 8/02 at 100 AA+ 3,014,161 (IHC Hospitals, Inc.), 5.500%, 2/15/21 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.0% $ 17,250 The City of Seattle, Washington, Municipal Light and Power 3/11 at 100 AAA $ 16,344,722 Improvements and Refunding Revenue Bonds, Series 2001, 5.125%, 3/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ $ 389,305 Total Investments (cost $318,128,058) - 77.1% 315,227,728 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 5.4% 6,000 Allentown Commercial and Industrial Development Authority, Diocese of Allentown Aa-3 6,000,000 Variable Rate Demand Bonds, 4.350%, 12/01/29+ 6,000 Long Island Power Authority (New York), Electric System Revenue Bonds, Series 6 of 1998, VMIG-1 6,000,000 Subordinate Lien, Variable Rate Demand Obligations, 4.250%, 5/01/33+ 10,000 Louisiana Offshore Terminal Authority, Deepwater Port Refunding Revenue Bonds VMIG-1 10,000,000 (Loop Inc. Project), First Stage Series 1992A, Variable Rate Demand Bonds, 4.350%, 9/01/08+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 22,000 Total Short-Term Investments (cost $22,000,000) 22,000,000 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 17.5% 71,441,173 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 408,668,901 ==================================================================================================================== * 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. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
Statement of Net Assets April 30, 2001 (Unaudited)
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $1,305,329,914 $ 979,722,708 $1,033,112,678 $832,558,113 $315,227,728 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value -- -- -- -- 22,000,000 Cash 3,220,599 3,164,542 -- 10,105,690 167,829,807 Receivables: Interest 21,973,157 18,945,553 19,388,753 15,029,668 3,234,830 Investments sold 2,166,260 995,000 992,622 928,660 -- Other assets 71,074 37,554 38,404 461,424 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 1,332,761,004 1,002,865,357 1,053,532,457 859,083,555 508,292,365 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- -- 98,779 -- -- Payable for investments purchased -- -- -- 12,246,962 98,604,950 Accrued expenses: Management fees 680,047 515,504 540,668 227,745 105,738 Organization and offering costs -- -- -- -- 877,500 Other 382,227 208,573 354,680 167,574 35,276 Preferred share dividends payable 207,805 162,315 181,385 161,033 -- Common share dividends payable 4,104,073 3,008,575 3,277,948 2,876,759 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 5,374,152 3,894,967 4,453,460 15,680,073 99,623,464 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $1,327,386,852 $ 998,970,390 $1,049,078,997 $843,403,482 $408,668,901 ==================================================================================================================================== Preferred shares, at liquidation value $ 444,000,000 $ 358,000,000 $ 380,000,000 $295,000,000 $ -- ==================================================================================================================================== Preferred shares outstanding 17,760 14,320 15,200 11,800 -- ==================================================================================================================================== Common shares outstanding 59,914,073 42,980,333 45,540,872 39,133,266 28,757,000 ==================================================================================================================================== Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 14.74 $ 14.91 $ 14.69 $ 14.01 $ 14.21 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of Operations Six Months Ended April 30, 2001 (Unaudited)
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ)* - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $38,212,166 $28,900,489 $30,736,271 $24,881,759 $ 639,061 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 4,099,518 3,107,239 3,264,965 2,635,479 219,315 Preferred shares - auction fees 550,439 443,821 471,096 365,720 -- Preferred shares - dividend disbursing agent fees 24,795 24,795 19,836 14,876 -- Shareholders' servicing agent fees and expenses 77,777 49,549 51,093 5,979 814 Custodian's fees and expenses 139,393 140,861 130,228 109,094 8,681 Directors'/Trustees' fees and expenses 5,406 4,237 4,511 3,886 181 Professional fees 6,217 23,090 22,594 8,710 2,821 Shareholders' reports - printing and mailing expenses 65,389 63,220 66,332 29,654 25,589 Stock exchange listing fees 26,381 19,340 19,237 9,917 90 Investor relations expense 90,665 64,004 69,693 46,848 -- Organization costs -- -- -- -- 15,000 Other expenses 32,099 26,873 28,622 19,069 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 5,118,079 3,967,029 4,148,207 3,249,232 272,491 Custodian fee credit (47,504) (30,573) (39,762) (41,907) (2,899) Expense reimbursement -- -- -- (1,264,281) (118,237) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 5,070,575 3,936,456 4,108,445 1,943,044 151,355 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 33,141,591 24,964,033 26,627,826 22,938,715 487,706 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain from investment transactions 3,119,296 2,765,864 3,211,749 878,255 -- Change in net unrealized appreciation (depreciation) of investments 19,230,191 14,519,242 9,442,162 15,170,326 (2,900,330) - ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments 22,349,487 17,285,106 12,653,911 16,048,581 (2,900,330) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations $55,491,078 $42,249,139 $39,281,737 $38,987,296 $(2,412,624) =================================================================================================================================== * For the period March 28, 2001 (commencement of operations) through April 30, 2001. See accompanying notes to financial statements.
Statement of Changes in Net Assets (Unaudited)
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO) --------------------------------- --------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/01 10/31/00 4/30/01 10/31/00 4/30/01 10/31/00 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 33,141,591 $ 67,143,144 $ 24,964,033 $ 53,192,098 $ 26,627,826 $ 56,383,707 Net realized gain (loss) from investment transactions 3,119,296 (140,796) 2,765,864 5,276,331 3,211,749 2,019,290 Change in net unrealized appreciation (depreciation) of investments 19,230,191 41,980,342 14,519,242 22,257,513 9,442,162 14,986,145 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 55,491,078 108,982,690 42,249,139 80,725,942 39,281,737 73,389,142 - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From and in excess of net investment income: Common shareholders (24,379,044) (50,585,361) (18,849,651) (39,288,175) (19,816,252) (42,645,002) Preferred shareholders (8,281,339) (17,642,520) (6,028,181) (14,261,879) (6,840,465) (15,316,935) From accumulated net realized gains from investment transactions: Common shareholders -- -- (3,280,164) -- (1,179,509) -- Preferred shareholders -- -- (1,219,554) -- (436,392) -- - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (32,660,383) (68,227,881) (29,377,550) (53,550,054) (28,272,618) (57,961,937) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Preferred shares: Net proceeds from sale of shares -- 43,368,937 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions -- 43,368,937 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 22,830,695 84,123,746 12,871,589 27,175,888 11,009,119 15,427,205 Net assets at the beginning of period 1,304,556,157 1,220,432,411 986,098,801 958,922,913 1,038,069,878 1,022,642,673 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $1,327,386,852 $1,304,556,157 $998,970,390 $986,098,801 $1,049,078,997 $1,038,069,878 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 823,199 $ 341,991 $ 852,302 $ 762,594 $ (151,925) $ (129,003) =================================================================================================================================== See accompanying notes to financial statements.
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) ----------------------------- ---------------------------- FOR THE PERIOD 3/28/01 SIX MONTHS ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS) 4/30/01 10/31/00 THROUGH 4/30/01 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 22,938,715 $ 44,835,517 $ 487,706 Net realized gain (loss) from investment transactions 878,255 (14,146,371) -- Change in net unrealized appreciation (depreciation) of investments 15,170,326 46,830,048 (2,900,330) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 38,987,296 77,519,194 (2,412,624) - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From and in excess of net investment income: Common shareholders (16,746,919) (33,894,651) -- Preferred shareholders (5,511,976) (11,945,290) -- From accumulated net realized gains from investment transactions: Common shareholders -- -- -- Preferred shareholders -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (22,258,895) (45,839,941) -- - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- 410,981,250 Net proceeds from shares issued to shareholders due to reinvestment of distributions 103,691 109,260 -- Preferred shares: Net proceeds from sale of shares -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions 103,691 109,260 410,981,250 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 16,832,092 31,788,513 408,568,626 Net assets at the beginning of period 826,571,390 794,782,877 100,275 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $843,403,482 $826,571,390 $408,668,901 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 642,324 $ (37,496) $ 487,706 =================================================================================================================================== See accompanying notes to financial statements.
Notes to Financial Statements (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding stock exchange symbols are Nuveen Performance Plus Municipal Fund, Inc. (NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market Opportunity Fund, Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD) and Nuveen Dividend Advantage Municipal Fund 2 (NXZ). Performance Plus (NPP), Advantage (NMA), Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York Stock Exchange while Dividend Advantage 2 (NXZ) is traded on the American Stock Exchange. Each Fund seeks to provide current income exempt from regular federal income tax by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. 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. 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 in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At April 30, 2001, Dividend Advantage (NAD) and Dividend Advantage 2 (NXZ) had outstanding when-issued purchase commitments of $12,246,962 and $98,604,950, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities. Federal 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 income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions 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 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. Preferred Shares The following Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set by the auction agent. The number of shares outstanding, by Series and in total, for each Fund is as follows: PERFORMANCE DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE (NPP) (NMA) (NMO) (NAD) - -------------------------------------------------------------------------------- Number of shares: Series M 4,000 3,000 4,000 4,000 Series T 4,000 3,000 4,000 4,000 Series W 4,000 3,000 3,200 -- Series Th 1,760 2,320 -- 3,800 Series F 4,000 3,000 4,000 -- - -------------------------------------------------------------------------------- Total 17,760 14,320 15,200 11,800 ================================================================================ Effective May 18, 2001, Dividend Advantage 2 (NXZ) issued 3,000 Series M, 3,000 Series T and 2,880 Series F $25,000 stated value Preferred shares. 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 period ended April 30, 2001. 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. Organization and Offering Costs Costs incurred by Performance Plus (NPP) in connection with its offering of Preferred Shares ($631,063) were recorded as a reduction of the proceeds from the sale of shares. Nuveen Investments, a wholly owned subsidiary of The John Nuveen Company, has agreed to reimburse all organization expenses (approximately $15,000) and pay all offering costs (other than the sales load) that exceed $.03 per Common Share for Dividend Advantage 2 (NXZ). Dividend Advantage 2's (NXZ) share of offering costs ($862,500) was recorded as a reduction of the proceeds from the sale of shares. 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 from operations during the reporting period. Actual results may differ from those estimates. Audit Guide In November 2000, the American Institute of Certified Public Accountants (AICPA) issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the "Guide"). The Guide is effective for annual financial statements issued for fiscal years beginning after December 15, 2000. It is not anticipated that the adoption of the Guide will have a significant effect on the financial statements. 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO) --------------------------- --------------------------- --------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/01 10/31/00 4/30/01 10/31/00 4/30/01 10/31/00 - ---------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- -- -- -- Shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------- -- -- -- -- -- -- ========================================================================================================== Preferred shares sold -- 1,760 -- -- -- -- ========================================================================================================== DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) ------------------------------ --------------------------- FOR THE PERIOD 3/28/01 SIX MONTHS ENDED YEAR ENDED (COMMENCEMENT OF 4/30/01 10/3100 OPERATIONS) THROUGH 4/30/01 - ----------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- 28,750,000 Shares issued to shareholders due to reinvestment of distributions 7,471 8,415 -- - ----------------------------------------------------------------------------------------------------------- 7,471 8,415 28,750,000 =========================================================================================================== Preferred shares sold -- -- -- ===========================================================================================================
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The following Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 1, 2001, to shareholders of record on May 15, 2001, as follows: PERFORMANCE DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE (NPP) (NMA) (NMO) (NAD) - -------------------------------------------------------------------------------- Dividend per share $.0685 $.0700 $.0720 $.0735 ================================================================================ Dividend Advantage 2 (NXZ) declared a Common share dividend distribution from its tax-exempt net investment income of $.0745 per share which was paid on June 1, 2001, to shareholders of record on May 21, 2001. 4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term municipal securities during the six months ended April 30, 2001, were as follows:
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ)* - --------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $128,729,310 $136,936,815 $81,211,201 $61,017,828 $318,148,333 Short-term municipal securities 38,750,000 28,830,000 10,300,000 30,750,000 22,000,000 Sales and maturities: Long-term municipal securities 109,826,110 111,398,603 57,806,387 48,238,082 -- Short-term municipal securities 38,750,000 41,830,000 18,300,000 30,750,000 -- ========================================================================================================= * For the period March 28, 2001 (commencement of operations) through April 30, 2001.
At April 30, 2001, the identified cost of investments owned for federal income tax purposes were as follows:
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ) - --------------------------------------------------------------------------------------------------------- $1,262,852,054 $943,061,783 $1,002,789,642 $821,823,981 $340,128,058 =========================================================================================================
At October 30, 2000, 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: PERFORMANCE DIVIDEND PLUS ADVANTAGE (NPP) (NAD) - -------------------------------------------------------------------------------- Expiration year: 2007 $301,903 $ 5,737,317 2008 140,796 14,462,547 - -------------------------------------------------------------------------------- Total $442,699 $20,199,864 ================================================================================ 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at April 30, 2001, were as follows:
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ) - --------------------------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $ 55,814,137 $41,970,968 $ 45,982,509 $ 23,228,740 $ 167,908 depreciation (13,336,277) (5,310,043) (15,659,473) (12,494,608) (3,068,238) - --------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) $ 42,477,860 $36,660,925 $ 30,323,036 $ 10,734,132 $(2,900,330) ===========================================================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' (excluding Dividend Advantage (NAD) and Dividend Advantage 2 (NXZ)) investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays to the Adviser an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets of each Fund as follows: AVERAGE DAILY NET ASSETS MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500 of 1% For the next $125 million .6375 of 1 For the next $250 million .6250 of 1 For the next $500 million .6125 of 1 For the next $1 billion .6000 of 1 For the next $3 billion .5875 of 1 For net assets over $5 billion .5750 of 1 ================================================================================ Under Dividend Advantage's (NAD) and Dividend Advantage 2's (NXZ) 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 of each Fund as follows: AVERAGE DAILY NET ASSETS MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500 of 1% For the next $125 million .6375 of 1 For the next $250 million .6250 of 1 For the next $500 million .6125 of 1 For the next $1 billion .6000 of 1 For net assets over $2 billion .5750 of 1 ================================================================================ The Adviser has agreed to waive part of its management fees or reimburse certain expenses of Dividend Advantage (NAD) in an amount equal to .30% of the average daily net assets for the period May 26, 1999 (commencement of operations) through July 31, 2004, .25% of the average daily net assets for the year ended July 31, 2005, .20% of the average daily net assets for the year ended July 31, 2006, .15% of the average daily net assets for the year ended July 31, 2007, .10% of the average daily net assets for the year ended July 31, 2008, and .05% of the average daily net assets for the year ended July 31, 2009. The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion of its fees and expenses beyond July 31, 2009. The Adviser has also agreed to waive part of its management fees or reimburse certain expenses of Dividend Advantage 2 (NXZ) in an amount equal to .30% of the average daily net assets for the period March 28, 2001 (commencement of operations) through March 31, 2006, .25% of the average daily net assets for the year ended March 31, 2007, .20% of the average daily net assets for the year ended March 31, 2008, .15% of the average daily net assets for the year ended March 31, 2009, .10% of the average daily net assets for the year ended March 31, 2010, and .05% of the average daily net assets for the year ended March 31, 2011. The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) 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. 7. COMPOSITION OF NET ASSETS At April 30, 2001, net assets consisted of:
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ) - ----------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $ 444,000,000 $358,000,000 $ 380,000,000 $295,000,000 $ -- Common shares, $.01 par value per share 599,141 429,803 455,409 391,333 287,570 Paid-in surplus 836,810,055 600,264,175 635,242,310 555,957,186 410,793,955 Undistributed (Over-distribution of) net investment income 823,199 852,302 (151,925) 642,324 487,706 Accumulated net realized gain (loss) from investment transactions 2,676,597 2,763,185 3,210,167 (19,321,493) -- Net unrealized appreciation (depreciation) of investments 42,477,860 36,660,925 30,323,036 10,734,132 (2,900,330) - ----------------------------------------------------------------------------------------------------------------- Net assets $1,327,386,852 $998,970,390 $1,049,078,997 $843,403,482 $408,668,901 ================================================================================================================= Authorized shares: Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited =================================================================================================================
8. INVESTMENT COMPOSITION At April 30, 2001, the revenue sources by municipal purpose, expressed as a percent of long-term investments, were as follows:
PERFORMANCE DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NPP) (NMA) (NMO) (NAD) (NXZ) - --------------------------------------------------------------------------------------------------------- Consumer Staples 2% 1% 5% --% --% Education and Civic Organizations 5 -- 4 6 3 Energy -- 1 -- -- 4 Healthcare 11 16 10 20 6 Housing/Multifamily 5 4 2 3 1 Housing/Single Family 10 17 2 8 5 Long-Term Care 1 2 -- 3 2 Tax Obligation/General 11 9 18 15 11 Tax Obligation/Limited 14 12 19 18 22 Transportation 8 10 23 13 9 U.S. Guaranteed 12 7 4 -- 7 Utilities 13 12 6 9 23 Water and Sewer 8 8 5 4 7 Other -- 1 2 1 -- - --------------------------------------------------------------------------------------------------------- 100% 100% 100% 100% 100% =========================================================================================================
Certain long-term investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (59% for Performance Plus (NPP), 55% for Advantage (NMA), 43% for Opportunity (NMO), 56% for Dividend Advantage (NAD) and 55% for Dividend Advantage 2 (NXZ)). For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. Financial Highlights (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------ --------------------------------------------------------- From and From and in Excess in Excess of Net of Net Net Investment Investment Capital Capital Realized/ Income to Income to Gains to Gains to Beginning Net Unrealized Common Preferred Common Preferred Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) Total holders holders+ holders holders+ Total ========================================================================================================================== PERFORMANCE PLUS (NPP) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) $14.36 $ .55 $ .38 $ .93 $ (.41) $(.14) $ -- $-- $ (.55) 2000 13.69 1.12 .69 1.81 (.84) (.29) -- -- (1.13) 1999 15.43 1.12 (1.73) (.61) (.91) (.21) (.01) -- (1.13) 1998 15.22 1.19 .20 1.39 (.95) (.23) -- -- (1.18) 1997 15.07 1.24 .15 1.39 (1.00) (.24) -- -- (1.24) 1996 15.21 1.27 (.12) 1.15 (1.04) (.25) -- -- (1.29) ADVANTAGE (NMA) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 14.61 .58 .41 .99 (.44) (.14) (.08) (.03) (.69) 2000 13.98 1.24 .63 1.87 (.91) (.33) -- -- (1.24) 1999 15.85 1.24 (1.85) (.61) (1.00) (.24) -- -- (1.24) 1998 15.68 1.24 .17 1.41 (1.00) (.24) -- -- (1.24) 1997 15.48 1.27 .21 1.48 (1.03) (.25) -- -- (1.28) 1996 15.57 1.29 (.07) 1.22 (1.05) (.26) -- -- (1.31) OPPORTUNITY (NMO) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 14.45 .58 .29 .87 (.44) (.15) (.03) (.01) (.63) 2000 14.11 1.24 .38 1.62 (.94) (.34) -- -- (1.28) 1999 15.96 1.26 (1.83) (.57) (1.01) (.24) (.01) -- (1.26) 1998 15.85 1.25 .15 1.40 (1.01) (.24) (.03) (.01) (1.29) 1997 15.66 1.29 .20 1.49 (1.04) (.26) -- -- (1.30) 1996 15.77 1.30 (.10) 1.20 (1.05) (.26) -- -- (1.31) DIVIDEND ADVANTAGE (NAD) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 13.59 .59 .40 .99 (.43) (.14) -- -- (.57) 2000 12.78 1.15 .84 1.99 (.86) (.31) -- -- (1.17) 1999(a) 14.33 .39 (1.47) (1.08) (.30) (.07) -- -- (.37) DIVIDEND ADVANTAGE 2 (NXZ) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(b) 14.33 .02 (.11) (.09) -- -- -- -- -- ========================================================================================================================== Total Returns ------------------- Offering Costs and Based Preferred Ending Based on Share Net Ending on Net Underwriting Asset Market Market Asset Discounts Value Value Value** Value** ====================================================================================== PERFORMANCE PLUS (NPP) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) $-- $14.74 $14.0300 18.62% 5.47% 2000 (.01) 14.36 12.1875 .90 11.47 1999 -- 13.69 12.9375 (10.76) (5.63) 1998 -- 15.43 15.4375 9.48 7.87 1997 -- 15.22 15.0000 5.94 7.89 1996 -- 15.07 15.1250 6.17 6.15 ADVANTAGE (NMA) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) -- 14.91 14.0500 13.29 5.58 2000 -- 14.61 12.8750 1.46 11.48 1999 (.02) 13.98 13.6250 (8.16) (5.83) 1998 -- 15.85 15.8125 5.58 7.65 1997 -- 15.68 15.9375 12.57 8.20 1996 -- 15.48 15.1250 7.04 6.37 OPPORTUNITY (NMO) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) -- 14.69 14.2500 13.28 4.85 2000 -- 14.45 13.0000 2.97 9.41 1999 (.02) 14.11 13.5625 (9.18) (5.49) 1998 -- 15.96 15.9375 5.40 7.45 1997 -- 15.85 16.1250 13.01 8.12 1996 -- 15.66 15.2500 8.82 6.15 DIVIDEND ADVANTAGE (NAD) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) -- 14.01 14.7700 20.54 6.24 2000 (.01) 13.59 12.6250 (.79) 13.61 1999(a) (.10) 12.78 13.6250 (7.29) (8.83) DIVIDEND ADVANTAGE 2 (NXZ) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2001(b) (.03) 14.21 15.0100 .07 (.84) ====================================================================================== Ratios/Supplemental Data ----------------------------------------------------------------- Before Credit/Reimbursement ------------------------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Ending Net Assets Net Assets Total Total Net Applicable Applicable Net Assets Net Assets Assets to Common to Common Including Including (000) Shares++ Shares++ Preferred++ Preferred++ ======================================================================================== PERFORMANCE PLUS (NPP) - ---------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) $1,327,387 1.15%* 7.46%* .77%* 4.98%* 2000 1,304,556 1.17 8.09 .77 5.29 1999 1,220,432 1.15 7.48 .79 5.16 1998 1,322,187 1.11 7.74 .77 5.38 1997 1,304,197 1.12 8.24 .77 5.69 1996 1,290,635 1.13 8.47 .78 5.83 ADVANTAGE (NMA) - ---------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 998,970 1.24* 7.77* .80* 5.00* 2000 986,099 1.23 8.77 .78 5.51 1999 958,923 1.16 8.12 .77 5.41 1998 975,410 1.12 7.84 .78 5.41 1997 962,058 1.14 8.23 .78 5.64 1996 951,656 1.14 8.37 .78 5.72 OPPORTUNITY (NMO) - ---------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 1,049,079 1.23* 7.90* .79* 5.07* 2000 1,038,070 1.25 8.76 .78 5.51 1999 1,022,643 1.15 8.18 .77 5.50 1998 1,021,207 1.09 7.88 .77 5.55 1997 1,011,202 1.10 8.25 .77 5.78 1996 1,000,987 1.10 8.29 .77 5.81 DIVIDEND ADVANTAGE (NAD) - ---------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 843,403 1.18* 7.86* .77* 5.13* 2000 826,571 1.22 8.34 .77 5.28 1999(a) 794,783 1.06* 6.10* .76* 4.41* DIVIDEND ADVANTAGE 2 (NXZ) - ---------------------------------------------------------------------------------------- Year Ended 10/31: 2001(b) 408,669 .75* 1.10* -- -- ======================================================================================== Ratios/Supplemental Data --------------------------------------------------------------- Municipal Auction Rate Cumulative After Credit/Reimbursement*** Preferred Stock at End of Period -------------------------------------------------- ------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Net Assets Net Assets Total Total Aggregate Liquidation Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset to Common to Common Including Including Turnover Outstanding Value Coverage Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share =========================================================================================================================== PERFORMANCE PLUS (NPP) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 1.14%* 7.47%* .76%* 4.99%* 8% $444,000 $25,000 $74,740 2000 1.16 8.10 .76 5.30 25 444,000 25,000 73,455 1999 1.12 7.51 .77 5.18 30 400,000 25,000 76,277 1998 1.11 7.74 .77 5.38 23 400,000 25,000 82,637 1997 1.12 8.24 .77 5.69 12 400,000 25,000 81,512 1996 1.13 8.47 .78 5.83 15 400,000 25,000 80,665 ADVANTAGE (NMA) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 1.23* 7.78* .79* 5.01* 11 358,000 25,000 69,761 2000 1.23 8.77 .77 5.52 39 358,000 25,000 68,862 1999 1.16 8.12 .77 5.41 29 358,000 25,000 66,964 1998 1.12 7.84 .78 5.41 8 300,000 25,000 81,284 1997 1.14 8.23 .78 5.64 8 300,000 25,000 80,172 1996 1.14 8.37 .78 5.72 13 300,000 25,000 79,305 OPPORTUNITY (NMO) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) 1.22* 7.92* .78* 5.07* 6 380,000 25,000 69,018 2000 1.23 8.77 .77 5.51 52 380,000 25,000 68,294 1999 1.14 8.19 .77 5.50 31 380,000 25,000 67,279 1998 1.09 7.88 .77 5.55 13 300,000 25,000 85,101 1997 1.10 8.25 .77 5.78 20 300,000 25,000 84,267 1996 1.10 8.29 .77 5.81 19 300,000 25,000 83,416 DIVIDEND ADVANTAGE (NAD) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(c) .71* 8.34* .46* 5.44* 6 295,000 25,000 71,475 2000 .73 8.83 .46 5.59 37 295,000 25,000 70,048 1999(a) .58* 6.58* .42* 4.76* 16 295,000 25,000 67,354 DIVIDEND ADVANTAGE 2 (NXZ) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(b) .44* 1.42* -- -- -- -- -- -- =========================================================================================================================== * 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 Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in 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 October 31, 1999. (b) For the period March 28, 2001 (commencement of operations) through April 30, 2001. (c) For the six months ended April 30, 2001.
Build Your Wealth Automatically Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account. NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen 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. 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, TRANSFER AGENT AND SHAREHOLDER SERVICES J.P. Morgan Chase &Co. 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six-month period ended April 30, 2001. Any future repurchases will be reported to shareholders in the next annual or semiannual report. Serving Investors for Generations For over a century, generations of Americans have relied on Nuveen Investments to help them grow and keep the money they've earned. Financial advisors, investors and their families have associated Nuveen Investments with quality, expertise and dependability since 1898. That is why financial advisors have entrusted the assets of more than 1.3 million investors to Nuveen. With the know-how that comes from a century of experience, Nuveen continues to build upon its reputation for quality. Now, financial advisors and investors can count on Nuveen Investments to help them design customized solutions that meet the far-reaching financial goals unique to family wealth strategies - solutions that can translate into legacies. To find out more about how Nuveen Investments' products and services can help you preserve your financial security, talk with your financial advisor, or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. Photo of: John Nuveen, Sr. Invest well. Look ahead. LEAVE YOUR MARK. (SM) Logo: Nuveen Investments Nuveen Investments o 333 West Wacker Drive FSA-2-4-01 Chicago, IL 60606 o www.nuveen.com -----END PRIVACY-ENHANCED MESSAGE-----