UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10345
---------------------
Nuveen Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2007
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
--------------------------------
SEMIANNUAL REPORT April 30, 2007
--------------------------------
Nuveen Investments
Municipal Closed-End Funds
NUVEEN PERFORMANCE
PLUS MUNICIPAL
FUND, INC.
NPP
NUVEEN MUNICIPAL
ADVANTAGE FUND, INC.
NMA
NUVEEN MUNICIPAL
MARKET OPPORTUNITY
FUND, INC.
NMO
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND
NAD
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND 2
NXZ
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND 3
NZF
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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NUVEEN
INVESTMENTS
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Managers' Comments,
the Dividend and Share Price Information, and the Performance Overview
sections of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well-balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit
from greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with
investing. For more information about this important investment strategy,
I encourage you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues
to be to assist you and your financial advisor by offering investment
services and products that can help you to secure your financial
objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
CHAIRMAN OF THE BOARD
June 15, 2007
Nuveen Investments Municipal Closed-End Funds
NPP, NMA, NMO, NAD, NXZ, NZF
Portfolio Managers'
COMMENTS
PORTFOLIO MANAGERS TOM SPALDING AND PAUL BRENNAN REVIEW KEY INVESTMENT
STRATEGIES AND THE SIX-MONTH PERFORMANCE OF THESE SIX NATIONAL FUNDS. A 30-YEAR
VETERAN OF NUVEEN, TOM HAS MANAGED NXZ SINCE ITS INCEPTION IN 2001 AND NPP, NMA,
NMO, AND NAD SINCE 2003. WITH 16 YEARS OF INVESTMENT EXPERIENCE AT NUVEEN, PAUL
ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR NZF IN JULY 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2007?
During this six-month period, we continued to see a further flattening of the
municipal bond yield curve. In this environment, where the slope of the yield
curve remained a dominant market factor, we continued to emphasize a disciplined
approach to duration 1 management and yield curve positioning. As part of this
approach, our purchases for the Funds' portfolios focused mainly on attractively
priced bonds with maturities of 20 years and longer in NPP, NMA, NMO, NAD, and
NXZ and 25 years and longer in NZF. We believed that bonds in this range of the
curve generally offered more attractive yields, better value, and reward
opportunities more commensurate with their risk levels.
Our duration management strategies during this period included the use of
inverse floating rate trusts, 2 a type of derivative financial instrument, in
all six of these Funds. The inverse floaters had the dual benefit of increasing
the Funds' distributable income and bringing their durations closer to our
preferred strategic target. In past shareholder reports, we also discussed the
use of forward interest rate swaps and futures contracts, which are additional
types of derivative instruments, as duration management tools. During this
reporting period, NZF continued to use both of these tools to help increase net
asset value (NAV) volatility.
We also continued to put emphasis on individual credit selection, using a
long-term relative value approach. During this period, the municipal market saw
steady new money issuance as well as a number of major advance refundings 3 and
debt restructurings, which provided us with an increased number of bonds from
which to choose. For the six months ended April 30, 2007, municipal issuance
nationwide
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 An inverse floating rate trust is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse
floating rate securities in which the Funds invested during the six-month
period, are further defined within the "Notes to Financial Statements" and
"Glossary of Terms Used in This Report" sections of this shareholder
report.
3 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
4
totaled $223.7 billion, up 32% compared with the six-month period ended April
30, 2006. During the first four months of 2007, supply increased 37% over that
of the first four months of 2006--to $135.4 billion--primarily due to a 71%
increase in refundings during this period.
Much of the new supply was highly rated and/or insured, and this factor,
combined with the enhanced credit quality resulting from a number of advance
refundings, meant that the Funds' allocations of credits rated AAA generally
increased over this period. We also continued to work to maintain the Funds'
weightings of lower credit quality bonds because of their strong performance and
support for the Funds' income streams. However, as credit spreads continued to
tighten, we generally found fewer attractively structured lower-rated credit
opportunities in the market.
In NPP, NMA, NMO, NAD, and NXZ, most of the cash we redeployed during this
period came from called holdings, which we used to enhance the Funds'
diversification by investing in a variety of essential services sectors such as
water and sewer and utilities. We also continued to keep these Funds well
diversified geographically, looking to states with stronger issuance, including
California, Texas, New York, Florida and Illinois for many of the additions to
our portfolios.
In NZF, in addition to reinvesting a few bond call proceeds, we selectively sold
some of the Fund's holdings that were nearing redemption. We continued to
redeploy proceeds to bonds that could help us increase income-generating
potential, such as credits with unusual types of coupons, including zero coupon
and discount bonds. This purchase activity during this period was also directed
toward higher-grade bonds with interesting structures and characteristics that
represented opportunities to add value, manage duration and volatility, and
support earnings.
5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/07
CUMULATIVE ANNUALIZED
----------- --------------------------------------
6-MONTH 1-YEAR 5-YEAR 10-YEAR
-----------------------------------------------------------------------------
NPP 1.41% 7.32% 6.80% 6.69%
-----------------------------------------------------------------------------
NMA 1.45% 6.85% 7.29% 6.92%
-----------------------------------------------------------------------------
NMO 1.19% 6.65% 6.80% 6.20%
-----------------------------------------------------------------------------
NAD 1.44% 7.06% 7.58% NA
-----------------------------------------------------------------------------
NXZ 2.08% 7.24% 8.52% NA
-----------------------------------------------------------------------------
NZF 1.84% 6.95% 8.40% NA
-----------------------------------------------------------------------------
Lehman
Municipal
Bond Index 4 1.59% 5.78% 5.16% 5.81%
-----------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average 5 1.66% 7.42% 7.34% 6.60%
-----------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended April 30, 2007, the cumulative returns on NAV for NXZ
and NZF exceeded the return on the Lehman Brothers Municipal Bond Index, while
NPP, NMA, NMO and NAD under-performed the index return, NXZ and NZF also
outperformed the average return for their Lipper peer group for this period,
while the remaining four Funds trailed the group average.
Factors that influenced the Funds' returns during this period included duration,
individual security selection, exposure to lower-rated credits, sector
allocations and advance refunding activity.
As the yield curve continued to flatten over the course of this period,
municipal bonds with maturities of 20 years and longer, as measured by the
Lehman Brothers Municipal Bond Index, performed best, generally outpacing
municipal bonds with shorter maturities. As mentioned earlier, one of our
strategies during this period focused on adding
4 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman Brothers Index do not reflect any expenses.
5 The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 56; 1 year, 56; 5 years, 45; and 10 years, 39. Fund
and Lipper returns assume reinvestment of dividends.
6
longer bonds to our portfolios. This purchase activity and our duration
management strategies helped to extend the Funds' durations and bring them
closer in line with our preferred strategic range.
During this period, we also continued to employ strategies that we believed
could help to strengthen the future income streams of our portfolios. In
addition to income potential, the Funds' holdings of zero coupon bonds, which we
continued to build, also provided a positive impact on performance for this
period.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their weightings in lower-quality credits. The outperformance of these credit
sectors was largely the result of investor demand for the higher yields
typically associated with lower-rated bonds, which drove up their value. NXZ,
NZF, and NAD had heavier exposures to subinvestment-grade (bonds rated BB or
lower) and non-rated bonds than the other three Funds, which was especially
helpful during this period.
Among the lower-rated holdings making positive contributions to the Funds'
returns for this period were industrial development bonds and health care
(including hospitals) credits. Lower-rated bonds backed by the 1998 master
tobacco settlement agreement, which comprised approximately 3% to 5% of the
portfolios of these Funds as of April 30, 2007, performed well.
We also continued to see positive contributions from advance refunding activity,
which benefited the Funds through price appreciation and enhanced credit
quality. Two of the more significant advance refundings during this period
involved BBB rated tobacco bonds issued by California's Golden State Tobacco
Securitization Corporation and New Jersey's Tobacco Settlement Financing
Corporation, which were upgraded to AAA as a result of the refundings.
At the same time, holdings of older, previously pre-refunded bonds tended to
underperform the general municipal market during this period, particularly those
with effective maturities between 5 and 10 years. Entering this period, NMO had
a significantly heavier weighting in older pre-refunded bonds than the other
Funds in this report.
7
Dividend and Share Price
INFORMATION
These six Funds use leverage to potentially enhance opportunities for additional
income for common shareholders. Although the Funds' use of this strategy
continued to provide incremental income, the extent of this benefit was reduced
during this period due to high short-term interest rates that, in turn, kept the
Funds' borrowing costs high. Older, higher-yielding bonds that matured or were
called also had an impact on the Funds' income streams, as proceeds were
reinvested into bonds currently available in the market, which generally offered
lower yields. While bond calls had the greater impact, the combination of both
of these factors resulted in one monthly dividend reduction in NMO, NAD, and NZF
over the six-month period ended April 30, 2007. The dividends of NPP, NMA and
NXZ remained stable throughout this six-month period.
Due to normal portfolio activity, common shareholders of the following Funds
also received capital gains and/or net ordinary income distributions at the end
of December 2006, as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPP $0.0461 $0.0008
--------------------------------------------------------------------------------
NMO -- $0.0014
--------------------------------------------------------------------------------
NAD -- $0.0024
--------------------------------------------------------------------------------
NZF $0.0198 --
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2007, all the
Funds had positive UNII balances for both financial statements and based on our
best estimate, tax purposes.
As of April 30, 2007, the Funds' share prices were trading at premiums or
discounts to their NAVs as shown in the accompanying chart:
4/30/07 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NPP -2.44% -3.46%
--------------------------------------------------------------------------------
NMA +2.43% +1.86%
--------------------------------------------------------------------------------
NMO -1.45% -1.08%
--------------------------------------------------------------------------------
NAD -1.89% -0.52%
--------------------------------------------------------------------------------
NXZ +6.99% +6.01%
--------------------------------------------------------------------------------
NZF +2.93% +3.31%
--------------------------------------------------------------------------------
8
Nuveen Performance Plus Municipal Fund, Inc.
NPP
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 77%
AA 7%
A 5%
BBB 7%
BB or Lower 2%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0705 $0.0670 $0.0670 $0.0670 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640
----------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.53
$14.54
$14.45
$14.34
$14.46
$14.50
$14.55
$14.43
$14.25
$14.33
$14.45
$14.35
$14.43
$14.82
$14.74
$14.65
$14.89
$14.93
$14.98
$15.10
$14.94
$14.97
$14.98
$14.93
$14.69
$14.88
$15.08
$15.18
$15.13
$15.07
$15.03
$15.20
$15.19
$14.88
$14.82
$15.15
$15.06
$15.00
$15.01
$15.12
$15.18
$15.27
$15.19
$15.22
$15.27
$15.28
$15.17
$15.24
$15.20
$15.10
$15.07
$15.12
4/30/07 $15.19
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.19
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.57
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.44%
--------------------------------------------------------------------------------
Market Yield 5.06%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.03%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 933,016
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.46
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.32
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/22/89)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 3.55% 1.41%
-----------------------------------
1-Year 10.62% 7.32%
-----------------------------------
5-Year 7.90% 6.80%
-----------------------------------
10-Year 6.76% 6.69%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 14.9%
--------------------------------------------------------------------------------
California 10.2%
--------------------------------------------------------------------------------
New York 6.5%
--------------------------------------------------------------------------------
New Jersey 5.9%
--------------------------------------------------------------------------------
Michigan 4.5%
--------------------------------------------------------------------------------
Indiana 4.4%
--------------------------------------------------------------------------------
Texas 4.4%
--------------------------------------------------------------------------------
Florida 4.2%
--------------------------------------------------------------------------------
Colorado 4.2%
--------------------------------------------------------------------------------
Massachusetts 3.8%
--------------------------------------------------------------------------------
Washington 3.3%
--------------------------------------------------------------------------------
South Carolina 2.9%
--------------------------------------------------------------------------------
Utah 2.8%
--------------------------------------------------------------------------------
Nevada 2.5%
--------------------------------------------------------------------------------
Ohio 2.4%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Georgia 2.1%
--------------------------------------------------------------------------------
Minnesota 2.0%
--------------------------------------------------------------------------------
Louisiana 2.0%
--------------------------------------------------------------------------------
Other 14.8%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 27.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.3%
--------------------------------------------------------------------------------
Tax Obligation/General 14.3%
--------------------------------------------------------------------------------
Transportation 9.8%
--------------------------------------------------------------------------------
Utilities 9.8%
--------------------------------------------------------------------------------
Health Care 8.8%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0469 per share.
9
Nuveen Municipal Advantage Fund, Inc.
NMA
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 16.05
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.67
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.43%
--------------------------------------------------------------------------------
Market Yield 5.35%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.43%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 676,770
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.40
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.64
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/89)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 4.00% 1.45%
-----------------------------------
1-Year 11.73% 6.85%
-----------------------------------
5-Year 8.55% 7.29%
-----------------------------------
10-Year 7.38% 6.92%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 10.5%
--------------------------------------------------------------------------------
Illinois 10.2%
--------------------------------------------------------------------------------
New York 9.5%
--------------------------------------------------------------------------------
Washington 8.9%
--------------------------------------------------------------------------------
California 8.0%
--------------------------------------------------------------------------------
Louisiana 7.5%
--------------------------------------------------------------------------------
Colorado 4.7%
--------------------------------------------------------------------------------
Nevada 3.7%
--------------------------------------------------------------------------------
Tennessee 3.3%
--------------------------------------------------------------------------------
Ohio 2.8%
--------------------------------------------------------------------------------
Florida 2.6%
--------------------------------------------------------------------------------
South Carolina 2.6%
--------------------------------------------------------------------------------
New Jersey 2.5%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
Alabama 1.9%
--------------------------------------------------------------------------------
Wisconsin 1.9%
--------------------------------------------------------------------------------
Missouri 1.7%
--------------------------------------------------------------------------------
Oklahoma 1.6%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 32.2%
--------------------------------------------------------------------------------
Utilities 13.5%
--------------------------------------------------------------------------------
Health Care 10.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.7%
--------------------------------------------------------------------------------
Transportation 10.2%
--------------------------------------------------------------------------------
Tax Obligation/General 7.8%
--------------------------------------------------------------------------------
Other 14.7%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 72%
AA 8%
A 4%
BBB 13%
BB or Lower 3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0755 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715 $0.0715
---------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.53
$14.54
$14.45
$14.34
$14.46
$14.50
$14.55
$14.43
$14.25
$14.33
$14.45
$14.35
$14.43
$14.82
$14.74
$14.65
$14.89
$14.93
$14.98
$15.10
$14.94
$14.97
$14.98
$14.93
$14.69
$14.88
$15.08
$15.18
$15.13
$15.07
$15.03
$15.20
$15.19
$14.88
$14.82
$15.15
$15.06
$15.00
$15.01
$15.12
$15.18
$15.27
$15.19
$15.22
$15.27
$15.28
$15.17
$15.24
$15.20
$15.10
$15.07
$15.12
4/30/07 $15.19
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
10
Nuveen Municipal Market Opportunity Fund, Inc.
NMO
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 79%
AA 7%
A 4%
BBB 7%
BB or Lower 2%
N/R 1%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0685 $0.0660 $0.0660 $0.0660 $0.0660 $0.0660 $0.0660 $0.0660 $0.0660 $0.0660 $0.0635 $0.0635
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.12
$14.17
$14.24
$14.23
$14.21
$14.19
$14.11
$14.05
$13.80
$13.97
$13.90
$13.89
$13.99
$14.32
$14.42
$14.43
$14.63
$14.56
$14.58
$14.63
$14.67
$14.77
$14.93
$14.93
$14.60
$14.75
$14.92
$15.04
$15.01
$15.04
$15.11
$15.24
$15.27
$15.01
$15.09
$15.17
$15.26
$15.42
$15.35
$15.28
$15.16
$15.17
$15.23
$15.29
$15.16
$15.23
$14.99
$15.02
$15.23
$15.04
$15.00
$15.04
$14.98
$14.17
$14.24
$14.23
$14.21
$14.19
$14.11
$14.05
$13.80
$13.97
$13.90
$13.89
$13.99
$14.32
$14.42
$14.43
$14.63
$14.56
$14.58
$14.63
$14.67
$14.77
$14.93
$14.93
$14.60
$14.75
$14.92
$15.04
$15.01
$15.04
$15.11
$15.24
$15.27
$15.01
$15.09
$15.17
$15.26
$15.42
$15.35
$15.28
$15.16
$15.17
$15.23
$15.29
$15.16
$15.23
$14.99
$15.02
$15.23
$15.04
$15.00
$15.04
4/30/07 $14.98
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.98
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.20
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.45%
--------------------------------------------------------------------------------
Market Yield 5.09%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.07%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 692,530
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.22
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.41
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/90)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 2.48% 1.19%
-----------------------------------
1-Year 12.12% 6.65%
-----------------------------------
5-Year 7.45% 6.80%
-----------------------------------
10-Year 6.42% 6.20%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 16.0%
--------------------------------------------------------------------------------
Washington 11.2%
--------------------------------------------------------------------------------
Illinois 8.6%
--------------------------------------------------------------------------------
New York 7.3%
--------------------------------------------------------------------------------
California 7.3%
--------------------------------------------------------------------------------
Minnesota 4.9%
--------------------------------------------------------------------------------
South Carolina 4.8%
--------------------------------------------------------------------------------
New Jersey 4.2%
--------------------------------------------------------------------------------
Nevada 3.9%
--------------------------------------------------------------------------------
Colorado 3.4%
--------------------------------------------------------------------------------
Georgia 2.8%
--------------------------------------------------------------------------------
Massachusetts 2.8%
--------------------------------------------------------------------------------
North Dakota 2.7%
--------------------------------------------------------------------------------
Ohio 2.5%
--------------------------------------------------------------------------------
Pennsylvania 2.4%
--------------------------------------------------------------------------------
Puerto Rico 1.9%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 34.2%
--------------------------------------------------------------------------------
Tax Obligation/General 16.9%
--------------------------------------------------------------------------------
Transportation 14.6%
--------------------------------------------------------------------------------
Health Care 7.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 7.6%
--------------------------------------------------------------------------------
Utilities 6.6%
--------------------------------------------------------------------------------
Other 12.4%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2006 of $0.0014 per share.
11
Nuveen Dividend Advantage Municipal Fund
NAD
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.06
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.35
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.89%
--------------------------------------------------------------------------------
Market Yield 5.30%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.36%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 603,112
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.79
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.58
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 1.10% 1.44%
-----------------------------------
1-Year 10.38% 7.06%
-----------------------------------
5-Year 7.02% 7.58%
-----------------------------------
Since
Inception 6.52% 7.31%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 22.9%
--------------------------------------------------------------------------------
Texas 9.9%
--------------------------------------------------------------------------------
New York 9.6%
--------------------------------------------------------------------------------
Washington 7.6%
--------------------------------------------------------------------------------
Florida 6.1%
--------------------------------------------------------------------------------
Wisconsin 4.5%
--------------------------------------------------------------------------------
New Jersey 3.8%
--------------------------------------------------------------------------------
Pennsylvania 3.3%
--------------------------------------------------------------------------------
Louisiana 3.3%
--------------------------------------------------------------------------------
Nevada 2.9%
--------------------------------------------------------------------------------
Ohio 2.7%
--------------------------------------------------------------------------------
California 2.5%
--------------------------------------------------------------------------------
Indiana 2.4%
--------------------------------------------------------------------------------
Michigan 2.4%
--------------------------------------------------------------------------------
Rhode Island 2.1%
--------------------------------------------------------------------------------
Other 14.0%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 21.0%
--------------------------------------------------------------------------------
Tax Obligation/General 16.7%
--------------------------------------------------------------------------------
Health Care 15.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.2%
--------------------------------------------------------------------------------
Transportation 10.9%
--------------------------------------------------------------------------------
Utilities 6.3%
--------------------------------------------------------------------------------
Consumer Staples 5.1%
--------------------------------------------------------------------------------
Other 10.8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 72%
AA 11%
A 4%
BBB 6%
BB or Lower 5%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0715 $0.0690 $0.0690 $0.0690 $0.0690 $0.0690 $0.0690 $0.0690 $0.0690 $0.0690 $0.0665 $0.0665
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.45
$14.52
$14.60
$14.68
$14.86
$14.98
$14.71
$14.35
$14.13
$14.35
$14.45
$14.49
$14.48
$14.74
$14.85
$14.69
$14.85
$14.88
$15.07
$15.14
$15.06
$15.13
$15.22
$15.36
$15.12
$15.14
$15.27
$15.27
$15.37
$15.35
$15.29
$15.56
$15.63
$15.48
$15.55
$15.79
$15.78
$15.78
$15.79
$15.58
$15.54
$15.46
$15.40
$15.46
$15.39
$15.45
$15.32
$14.88
$14.93
$14.94
$14.84
$14.91
4/30/07 $15.06
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2006 of $0.0024 per share.
12
Nuveen Dividend Advantage Municipal Fund 2
NXZ
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 68%
AA 7%
A 8%
BBB 9%
BB or Lower 6%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0820 $0.0795 $0.0795 $0.0795 $0.0765 $0.0765 $0.0765 $0.0765 $0.0765 $0.0765 $0.0765 $0.0765
---------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $16.28
$16.48
$16.41
$16.42
$16.26
$16.32
$16.25
$16.23
$16.04
$16.08
$16.20
$16.09
$16.14
$16.36
$16.42
$16.40
$16.64
$16.91
$16.99
$16.78
$16.70
$16.76
$16.73
$16.68
$16.32
$16.39
$16.55
$16.69
$16.71
$16.75
$16.63
$16.70
$16.87
$16.74
$16.80
$16.92
$17.00
$17.12
$16.95
$16.98
$17.04
$16.94
$16.89
$16.83
$16.96
$16.98
$16.89
$17.00
$17.04
$16.96
$17.05
$17.03
4/30/07 $17.00
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 17.00
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.89
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 6.99%
--------------------------------------------------------------------------------
Market Yield 5.40%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.50%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 466,879
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.49
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.89
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 5.90% 2.08%
-----------------------------------
1-Year 10.99% 7.24%
-----------------------------------
5-Year 10.77% 8.52%
-----------------------------------
Since
Inception 8.76% 8.32%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 16.6%
--------------------------------------------------------------------------------
Michigan 9.4%
--------------------------------------------------------------------------------
Illinois 7.3%
--------------------------------------------------------------------------------
New York 6.6%
--------------------------------------------------------------------------------
Nevada 4.9%
--------------------------------------------------------------------------------
Colorado 4.8%
--------------------------------------------------------------------------------
California 4.6%
--------------------------------------------------------------------------------
New Mexico 3.5%
--------------------------------------------------------------------------------
Louisiana 3.4%
--------------------------------------------------------------------------------
Washington 3.4%
--------------------------------------------------------------------------------
Florida 3.3%
--------------------------------------------------------------------------------
Missouri 3.2%
--------------------------------------------------------------------------------
Indiana 3.1%
--------------------------------------------------------------------------------
Alabama 2.9%
--------------------------------------------------------------------------------
Massachusetts 2.7%
--------------------------------------------------------------------------------
Kansas 2.6%
--------------------------------------------------------------------------------
Oregon 2.5%
--------------------------------------------------------------------------------
Pennsylvania 2.3%
--------------------------------------------------------------------------------
Other 12.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 32.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.8%
--------------------------------------------------------------------------------
Transportation 13.9%
--------------------------------------------------------------------------------
Health Care 13.6%
--------------------------------------------------------------------------------
Tax Obligation/General 6.2%
--------------------------------------------------------------------------------
Utilities 5.8%
--------------------------------------------------------------------------------
Other 12.0%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
13
Nuveen Dividend Advantage Municipal Fund 3
NZF
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.82
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.37
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.93%
--------------------------------------------------------------------------------
Market Yield 5.35%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.43%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 620,472
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.93
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.13
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 2.51% 1.84%
-----------------------------------
1-Year 10.93% 6.95%
-----------------------------------
5-Year 9.47% 8.40%
-----------------------------------
Since
Inception 7.51% 7.61%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 13.0%
--------------------------------------------------------------------------------
Texas 11.6%
--------------------------------------------------------------------------------
Washington 10.1%
--------------------------------------------------------------------------------
California 7.8%
--------------------------------------------------------------------------------
Michigan 6.0%
--------------------------------------------------------------------------------
Nevada 5.0%
--------------------------------------------------------------------------------
Colorado 4.1%
--------------------------------------------------------------------------------
Iowa 3.8%
--------------------------------------------------------------------------------
Indiana 3.4%
--------------------------------------------------------------------------------
Wisconsin 2.8%
--------------------------------------------------------------------------------
New York 2.7%
--------------------------------------------------------------------------------
New Jersey 2.6%
--------------------------------------------------------------------------------
Louisiana 2.2%
--------------------------------------------------------------------------------
Kentucky 2.1%
--------------------------------------------------------------------------------
Missouri 1.7%
--------------------------------------------------------------------------------
Alaska 1.7%
--------------------------------------------------------------------------------
Maryland 1.7%
--------------------------------------------------------------------------------
Oregon 1.6%
--------------------------------------------------------------------------------
Georgia 1.6%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 27.4%
--------------------------------------------------------------------------------
Transportation 15.4%
--------------------------------------------------------------------------------
Tax Obligation/General 11.7%
--------------------------------------------------------------------------------
Health Care 10.2%
--------------------------------------------------------------------------------
Utilities 6.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 5.3%
--------------------------------------------------------------------------------
Water and Sewer 4.2%
--------------------------------------------------------------------------------
Other 13.5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 80%
AA 5%
A 1%
BBB 6%
BB or Lower 2%
N/R 6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0770 $0.0730 $0.0730 $0.0730 $0.0730 $0.0730 $0.0730 $0.0730 $0.0730 $0.0730 $0.0705 $0.0705
------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $15.30
$15.41
$15.58
$15.39
$15.42
$15.43
$15.39
$15.03
$14.75
$14.82
$14.92
$14.91
$15.03
$15.34
$15.28
$15.17
$15.36
$15.39
$15.40
$15.54
$15.53
$15.67
$15.78
$15.78
$15.52
$15.70
$15.80
$15.91
$15.99
$15.83
$15.88
$15.99
$16.18
$15.92
$16.25
$16.08
$16.18
$16.07
$15.89
$15.90
$16.00
$15.98
$15.83
$15.99
$16.00
$16.19
$15.91
$15.91
$15.88
$15.95
$15.80
$15.80
4/30/07 $15.82
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006
of $0.0198 per share.
14
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
Jefferson County, Alabama, Sewer Revenue
Refunding Warrants, Series 1997A:
$ 1,435 5.625%, 2/01/22 - FGIC Insured 8/07 at 101.00 AAA $ 1,451,359
1,505 5.375%, 2/01/27 - FGIC Insured 7/07 at 101.00 AAA 1,506,716
------------------------------------------------------------------------------------------------------------------------------------
2,940 Total Alabama 2,958,075
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Arizona State Transportation Board, 7/12 at 100.00 AAA 1,073,000
Highway Revenue Bonds, Series 2002B, 5.250%, 7/01/22
(Pre-refunded 7/01/12)
Phoenix, Arizona, Civic Improvement Corporation,
Senior Lien Airport Revenue Bonds, Series 2002B:
5,365 5.750%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AAA 5,803,106
5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AAA 5,472,695
------------------------------------------------------------------------------------------------------------------------------------
11,420 Total Arizona 12,348,801
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,080 Independence County, Arkansas, Hydroelectric Power 5/13 at 100.00 A 5,343,093
Revenue Bonds, Series 2003, 5.350%,
5/01/28 - ACA Insured
1,000 Washington County, Arkansas, Hospital Revenue 2/15 at 100.00 BBB 1,016,960
Bonds, Washington Regional Medical Center,
Series 2005A, 5.000%, 2/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,080 Total Arkansas 6,360,053
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.3% (10.2% OF TOTAL INVESTMENTS)
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 2,896,425
Subordinate Lien Revenue Bonds, Series
2004A, 0.000%, 10/01/25 - AMBAC Insured
11,000 Anaheim Public Finance Authority, California, No Opt. Call AAA 6,269,780
Subordinate Lease Revenue Bonds, Public
Improvement Project, Series 1997C, 0.000%,
9/01/20 - FSA Insured
California Department of Water Resources, Power
Supply Revenue Bonds, Series 2002A:
4,000 6.000%, 5/01/15 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 4,470,360
3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,458,242
3,365 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,427,825
Facility Revenue Bonds, Adventist
Health System/West, Series 2003A, 5.000%, 3/01/33
California Health Facilities Financing Authority,
Revenue Bonds, Kaiser Permanante System, Series 2006:
5,000 5.000%, 4/01/37 4/16 at 100.00 A+ 5,139,250
7,000 5.250%, 4/01/39 4/16 at 100.00 A+ 7,353,080
2,380 California Infrastructure Economic Development 10/11 at 101.00 A- 2,488,195
Bank, Revenue Bonds, J. David Gladstone
Institutes, Series 2001, 5.250%, 10/01/34
5,300 California, General Obligation Bonds, Series 2004, 2/09 at 100.00 A+ (4) 5,443,100
5.100%, 2/01/34 (Pre-refunded 2/01/09)
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 5,260,400
6,435 California, General Obligation Refunding Bonds, Series No Opt. Call AAA 7,498,899
2002, 6.000%, 4/01/16 - AMBAC Insured
5,000 Coast Community College District, Orange County, 8/18 at 100.00 AAA 3,869,400
California, General Obligation Bonds, Series
2006C, 0.000%, 8/01/32 - FSA Insured
2,990 East Bay Municipal Utility District, Alameda and Contra 6/07 at 100.00 AAA 2,991,346
Costa Counties, California, Water
System Subordinated Revenue Refunding Bonds, Series
1996, 4.750%, 6/01/21 - FGIC Insured
Golden State Tobacco Securitization Corporation,
California, Enhanced Tobacco Settlement Asset-Backed
Bonds, Series 2007A-1:
5,000 5.000%, 6/01/33 6/17 at 100.00 BBB 4,988,950
1,500 5.125%, 6/01/47 6/17 at 100.00 BBB 1,504,620
15
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA $ 11,609,700
Tobacco Settlement Asset-Backed
Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
8,000 Golden State Tobacco Securitization Corporation, 6/15 at 100.00 A 8,293,040
California, Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2005A, 5.000%, 6/01/45
1,000 Mt. Diablo Hospital District, California, Insured 7/07 at 100.00 AAA 1,063,690
Hospital Revenue Bonds, Series 1993A,
5.125%, 12/01/23 - AMBAC Insured (ETM)
13,450 Ontario Redevelopment Financing Authority, San No Opt. Call AAA 16,621,376
Bernardino County, California, Revenue
Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.200%, 8/01/17 - MBIA Insured
11,270 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 11,834,514
Residential Mortgage Revenue Refunding
Bonds, Series 1991A, 7.150%, 2/01/10 (ETM)
2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,044,378
Restructured Single Family Mortgage
Revenue Bonds, Series 1986D, 8.000%, 4/01/16
(Alternative Minimum Tax) (ETM)
2,000 San Francisco Airports Commission, California, 5/09 at 101.00 AAA 2,078,820
Revenue Bonds, San Francisco International
Airport, Second Series 1999, Issue 23B, 5.125%, 5/01/30
(Pre-refunded 5/01/09) - FGIC Insured
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,084,720
Refunding Bonds, San Francisco
International Airport, Second Series 2001, Issue 27B,
5.125%, 5/01/26 - FGIC Insured
3,000 San Joaquin Hills Transportation Corridor Agency, No Opt. Call AAA 890,940
Orange County, California, Toll Road Revenue
Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - MBIA Insured
15,745 Walnut Valley Unified School District, Los Angeles 8/11 at 103.00 AAA 18,348,433
County, California, General Obligation
Refunding Bonds, Series 1997A, 7.200%, 2/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
139,435 Total California 142,929,483
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.2% (4.2% OF TOTAL INVESTMENTS)
5,240 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 5,585,368
General Obligation Bonds, Series 2005,
5.000%, 12/15/24 - FSA Insured
3,000 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 3,204,630
Charter School Revenue Bonds,
Peak-to-Peak Charter School, Series 2004, 5.250%,
8/15/34 - XLCA Insured
5,860 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA (4) 6,207,264
Bonds, Catholic Health Initiatives,
Series 2001, 5.250%, 9/01/21 (Pre-refunded 9/01/11)
7,575 Denver City and County, Colorado, Airport System Revenue 11/07 at 101.00 AAA 7,703,321
Bonds, Series 1997E, 5.250%,
11/15/23 - MBIA Insured
20,000 Denver Convention Center Hotel Authority, Colorado, 12/13 at 100.00 AAA 21,500,797
Senior Revenue Bonds, Convention Center
Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded
12/01/13) - XLCA Insured
10,615 E-470 Public Highway Authority, Colorado, Senior No Opt. Call AAA 5,768,085
Revenue Bonds, Series 1997B, 0.000%,
9/01/21 - MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 3,262,600
Bonds, Series 2000B, 0.000%,
9/01/32 - MBIA Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 805,698
Obligation Bonds, Series 2004, 5.000%,
12/15/22 - FSA Insured
4,125 Municipal Subdistrict Northern Colorado Water District, 12/07 at 101.00 AAA 4,201,931
Revenue Bonds, Series 1997G, 5.250%,
12/01/15 (Pre-refunded 12/01/07) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
67,170 Total Colorado 58,239,694
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,745 District of Columbia Tobacco Settlement Corporation, 5/11 at 101.00 BBB 6,165,017
Tobacco Settlement Asset-Backed Bonds,
Series 2001, 6.250%, 5/15/24
5,590 District of Columbia, General Obligation Bonds, 6/09 at 101.00 AAA 5,840,656
Series 1999B, 5.500%, 6/01/13 - FSA Insured
5,000 Washington Convention Center Authority, 10/16 at 100.00 AAA 4,967,600
District of Columbia, Senior Lien Dedicated Tax
Revenue Bonds, Series 2007A, 4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,335 Total District of Columbia 16,973,273
------------------------------------------------------------------------------------------------------------------------------------
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.3% (4.2% OF TOTAL INVESTMENTS)
Broward County Housing Finance Authority, Florida,
Multifamily Housing Revenue Bonds, Venice Homes
Apartments, Series 2001A:
$ 1,545 5.700%, 1/01/32 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA $ 1,578,666
1,805 5.800%, 1/01/36 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,847,760
5,300 Escambia County Health Facilities Authority, Florida, No Opt. Call AA 5,762,796
Revenue Bonds, Ascension Health Credit
Group, Series 2003A, 5.250%, 11/15/14
2,130 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 2,188,319
Revenue Bonds, Series 2000-11, 5.850%,
1/01/22 - FSA Insured (Alternative Minimum Tax)
10,050 Florida State Board of Education, Full Faith and Credit 6/10 at 101.00 AAA 10,704,758
Public Education Capital Outlay
Refunding Bonds, Series 1999D, 5.750%, 6/01/22
7,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 7,497,000
Bonds, Tampa International Airport,
Series 2003A, 5.250%, 10/01/17 - MBIA Insured
(Alternative Minimum Tax)
10,000 JEA, Florida, Electric System Revenue Bonds, 4/15 at 100.00 AAA 10,468,000
Series 2006-3A, 5.000%, 10/01/41 - FSA Insured
10,750 Martin County Industrial Development Authority, 6/07 at 100.00 BB+ 10,859,220
Florida, Industrial Development Revenue Bonds,
Indiantown Cogeneration LP, Series 1994A,
7.875%, 12/15/25 (Alternative Minimum Tax)
2,570 Miami-Dade County Housing Finance Authority, 6/11 at 100.00 AAA 2,665,733
Florida, Multifamily Mortgage Revenue Bonds,
Country Club Villas II Project, Series
2001-1A, 5.850%, 1/01/37 - FSA Insured (Alternative
Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue 10/15 at 100.00 AAA 3,661,350
Bonds, Miami International Airport, Series 2005A,
5.000%, 10/01/37 - XLCA Insured (Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport 5/12 at 102.00 AA 1,838,703
Community Development District, Special
Assessment Bonds, Commercial Project,
Series 2002A, 5.625%, 5/01/32 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
56,350 Total Florida 59,072,305
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.1% (2.1% OF TOTAL INVESTMENTS)
4,920 Atlanta, Georgia, Airport General Revenue 1/10 at 101.00 AAA 5,204,376
Refunding Bonds, Series 2000A, 5.600%, 1/01/30
(Pre-refunded 1/01/10) - FGIC Insured
5,000 Atlanta, Georgia, Water and Wastewater No Opt. Call AAA 5,566,800
Revenue Bonds, Series 1999A, 5.500%, 11/01/22 -
FGIC Insured
2,000 George L. Smith II World Congress Center 7/10 at 101.00 AAA 2,104,460
Authority, Atlanta, Georgia, Revenue Refunding Bonds,
Domed Stadium Project, Series 2000,
5.500%, 7/01/20 - MBIA Insured (Alternative Minimum Tax)
15,000 Private Colleges and Universities Authority, 11/09 at 101.00 AA (4) 15,796,800
Georgia, Revenue Bonds, Emory University, Series
1999A, 5.500%, 11/01/25 (Pre-refunded 11/01/09)
------------------------------------------------------------------------------------------------------------------------------------
26,920 Total Georgia 28,672,436
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
570 Idaho Housing and Finance Association, 1/10 at 100.00 Aa3 576,926
Single Family Mortgage Bonds, Series 2000D, 6.200%,
7/01/14 (Alternative Minimum Tax)
315 Idaho Housing and Finance Association, 7/10 at 100.00 Aa2 320,021
Single Family Mortgage Bonds, Series 2000G-2, 5.950%,
7/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
885 Total Idaho 896,947
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 22.3% (14.9% OF TOTAL INVESTMENTS)
10,000 Chicago Board of Education, Illinois, No Opt. Call AAA 5,919,200
Unlimited Tax General Obligation Bonds, Dedicated Tax
Revenues, Series 1998B-1, 0.000%, 12/01/19 - FGIC Insured
10,000 Chicago Board of Education, Illinois, No Opt. Call AAA 5,647,600
Unlimited Tax General Obligation Bonds, Dedicated Tax
Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured
Chicago, Illinois, General Obligation
Bonds, City Colleges, Series 1999:
32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AAA 18,032,250
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AAA 17,502,626
3,000 Chicago, Illinois, General Obligation Bonds, 1/08 at 102.00 AAA 3,100,200
Library Projects, Series 1997, 5.750%, 1/01/17
(Pre-refunded 1/01/08) - FGIC Insured
9,145 Chicago, Illinois, Revenue Bonds, Midway 7/07 at 101.00 AAA 9,248,796
Airport, Series 1996A, 5.500%, 1/01/29 - MBIA Insured
17
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,665 Chicago, Illinois, Third Lien General Airport 1/16 at 100.00 AAA $ 1,751,580
Revenue Bonds, O'Hare International Airport,
Series 2005A, 5.000%, 1/01/33 - FGIC Insured
DuPage County Forest Preserve District, Illinois,
General Obligation Bonds, Series 2000:
8,000 0.000%, 11/01/18 No Opt. Call AAA 4,966,320
15,285 0.000%, 11/01/19 No Opt. Call AAA 9,078,984
4,000 Illinois Health Facilities Authority, FHA-Insured 8/13 at 100.00 AAA 4,170,400
Mortgage Revenue Refunding Bonds, Sinai
Health System, Series 2003, 5.150%, 2/15/37
1,180 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 1,258,753
Lake Forest Hospital, Series 2002A,
5.750%, 7/01/29
3,000 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 3,274,440
Lake Forest Hospital, Series 2003,
6.000%, 7/01/33
4,580 Illinois Health Facilities Authority, Revenue Bonds, 8/10 at 102.00 Aaa 4,947,957
Midwest Care Center IX Inc., Series 2000,
6.250%, 8/20/35
2,645 Illinois Health Facilities Authority, Revenue Bonds, 8/09 at 101.00 A 2,711,733
Silver Cross Hospital and Medical
Centers, Series 1999, 5.250%, 8/15/15 (Mandatory put 4/01/08)
7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, 12/13 at 57.71 AAA 3,119,893
Community College District 516, General
Obligation Bonds, Series 2005E, 0.000%, 12/15/24 - FGIC Insured
5,000 Kane, McHenry, Cook and DeKalb Counties Community 12/11 at 100.00 AAA 5,370,800
Unit School District 300, Carpentersville,
Illinois, General Obligation Bonds, Series 2000,
5.500%, 12/01/19 (Pre-refunded 12/01/11) -
MBIA Insured
3,700 Libertyville, Illinois, Affordable Housing Revenue 11/09 at 100.00 A3 3,797,310
Bonds, Liberty Towers Project, Series
1999A, 7.000%, 11/01/29 (Alternative Minimum Tax)
6,000 McHenry County Conservation District, Illinois, 2/11 at 100.00 AAA 6,404,100
General Obligation Bonds, Series 2001A,
5.625%, 2/01/21 (Pre-refunded 2/01/11) - FGIC Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 5,310,400
Revenue Bonds, McCormick Place Expansion
Project, Series 2002A, 5.250%, 6/15/42 - MBIA Insured
10,650 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 14,095,595
Revenue Bonds, McCormick Place
Hospitality Facility, Series 1996A, 7.000%, 7/01/26 (ETM)
Metropolitan Pier and Exposition Authority, Illinois,
Revenue Refunding Bonds, McCormick Place
Expansion Project, Series 1996A:
9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 5,811,268
16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 9,342,663
23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 12,114,120
13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 6,099,470
5,100 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 5,937,471
Revenue Refunding Bonds, McCormick Place
Expansion Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured
5,180 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 6,044,956
Revenue Refunding Bonds, McCormick Place
Expansion Project, Series 1998A, 5.500%, 12/15/23 -
FGIC Insured (ETM)
17,865 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 21,315,979
Lake, McHenry and Will Counties,
Illinois, General Obligation Bonds, Series 1999,
5.750%, 6/01/23 - FSA Insured
6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding 10/09 at 102.00 AAA 6,527,506
Bonds, Villa Vianney, Series 1999A,
6.450%, 10/01/29
10,000 Will County Community High School District 210 No Opt. Call Aaa 5,102,900
Lincoln-Way, Illinois, General Obligation
Bonds, Series 2006, 0.000%, 1/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
281,695 Total Illinois 208,005,270
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.6% (4.4% OF TOTAL INVESTMENTS)
2,465 Danville Multi-School Building Corporation, Indiana, 7/11 at 100.00 AAA 2,603,139
First Mortgage Refunding Bonds, Series
2001, 5.250%, 7/15/18 - AMBAC Insured
14,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 AAA 14,937,020
Revenue Bonds, Clarian Health Obligated
Group, Series 2000A, 5.500%, 2/15/30
(Pre-refunded 8/15/10) - MBIA Insured
2,500 Indiana Health Facility Financing Authority, No Opt. Call AAA 2,861,300
Hospital Revenue Refunding Bonds, Columbus
Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
Indiana Health Facility Financing Authority, Revenue Bonds,
Ancilla Systems Inc. Obligated Group, Series 1997:
$ 15,380 5.250%, 7/01/17 - MBIA Insured (ETM) 7/07 at 101.00 AAA $ 15,570,251
4,320 5.250%, 7/01/22 - MBIA Insured (ETM) 7/07 at 101.00 AAA 4,373,006
2,250 5.250%, 7/01/22 - MBIA Insured (ETM) 7/07 at 101.00 AAA 2,277,608
2,000 Indiana Health Facility Financing Authority, Revenue 5/15 at 100.00 AAA 2,091,880
Bonds, Community Hospitals of Indiana,
Series 2005A, 5.000%, 5/01/35 - AMBAC Insured
Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series 2000:
1,285 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA (4) 1,357,731
6,715 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA (4) 7,095,069
3,105 Indiana University, Student Fee Revenue Bonds, 8/13 at 100.00 AAA 3,345,234
Series 2003O, 5.250%, 8/01/20 - FGIC Insured
1,000 Marion County Convention and Recreational 6/11 at 100.00 AAA 1,044,410
Facilities Authority, Indiana, Excise Taxes Lease
Rental Revenue Refunding Senior Bonds,
Series 2001A, 5.000%, 6/01/21 - MBIA Insured
2,395 Shelbyville Central Renovation School Building 7/15 at 100.00 AAA 2,376,415
Corporation, Indiana, First Mortgage Bonds,
Series 2005, 4.375%, 7/15/26 - MBIA Insured
1,800 Sunman Dearborn High School Building Corporation, 1/15 at 100.00 AAA 1,896,912
Indiana, First Mortgage Bonds, Series 2005,
5.000%, 7/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
59,215 Total Indiana 61,829,975
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,500 Iowa Finance Authority, Health Facility Revenue 7/16 at 100.00 BBB- 1,576,470
Bonds, Care Initiatives Project, Series 2006A,
5.500%, 7/01/21
5,000 Iowa Tobacco Settlement Authority, Tobacco 6/11 at 101.00 AAA 5,395,150
Settlement Asset-Backed Revenue Bonds, Series
2001B, 5.600%, 6/01/35 (Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Iowa 6,971,620
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway 3/14 at 100.00 AAA 4,004,097
Revenue Bonds, Series 2004A, 5.000%, 3/01/23
5,790 Sedgwick County Unified School District 259, 9/10 at 100.00 AA 5,514,512
Wichita, Kansas, General Obligation Bonds, Series
2000, 3.500%, 9/01/17
3,200 Wyandotte County Unified School District 500, 9/11 at 100.00 AAA 3,136,512
Kansas, General Obligation Bonds, Series 2001,
4.000%, 9/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Kansas 12,655,121
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.0% (2.0% OF TOTAL INVESTMENTS)
930 East Baton Rouge Mortgage Finance Authority, 10/07 at 102.00 Aaa 941,839
Louisiana, GNMA/FNMA Mortgage-Backed Securities
Program Single Family Mortgage Revenue
Refunding Bonds, Series 1997B-1, 5.750%, 10/01/26
4,000 Lafayette City and Parish, Louisiana, 11/14 at 100.00 AAA 4,326,720
Utilities Revenue Bonds, Series 2004, 5.250%, 11/01/25 -
MBIA Insured
4,650 Louisiana Public Facilities Authority, 7/14 at 100.00 AAA 4,938,951
Revenue Bonds, Baton Rouge General Hospital, Series
2004, 5.250%, 7/01/33 - MBIA Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
10,000 5.500%, 5/15/30 5/11 at 101.00 BBB 10,454,200
6,680 5.875%, 5/15/39 5/11 at 101.00 BBB 7,133,906
------------------------------------------------------------------------------------------------------------------------------------
26,260 Total Louisiana 27,795,616
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,680 Portland, Maine, Airport Revenue Bonds, 7/13 at 100.00 AAA 5,919,696
Series 2003A, 5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7% (1.1% OF TOTAL INVESTMENTS)
7,720 Maryland Transportation Authority, Airport 3/12 at 101.00 AAA 8,092,336
Parking Revenue Bonds, Baltimore-Washington
International Airport Passenger Facility,
Series 2002B, 5.125%, 3/01/20 - AMBAC Insured
(Alternative Minimum Tax)
19
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND (continued)
$ 7,090 Takoma Park, Maryland, Hospital Facilities
Revenue Refunding and Improvement Bonds, Washington No Opt. Call AAA $ 7,690,098
Adventist Hospital, Series 1995, 6.500%,
9/01/12 - FSA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
14,810 Total Maryland 15,782,434
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.7% (3.8% OF TOTAL INVESTMENTS)
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
4,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 4,178,680
5,625 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,876,269
1,140 Massachusetts Educational Finance Authority, Student 12/09 at 101.00 AAA 1,164,088
Loan Revenue Refunding Bonds, Series
2000G, 5.700%, 12/01/11 - MBIA Insured
(Alternative Minimum Tax)
8,730 Massachusetts Health and Educational Facilities 10/15 at 100.00 AAA 9,276,062
Authority, Revenue Bonds, Berkshire Health
System, Series 2005F, 5.000%, 10/01/19 - AGC Insured
1,530 Massachusetts Health and Educational Facilities 7/08 at 101.00 Aaa 1,547,626
Authority, Revenue Bonds, Southcoast Health
System Obligated Group, Series 1998A, 4.750%,
7/01/27 - MBIA Insured
5,745 Massachusetts Industrial Finance Agency, Resource 12/08 at 102.00 BBB 5,955,439
Recovery Revenue Refunding Bonds, Ogden
Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
10,150 Massachusetts Turnpike Authority, Metropolitan 7/07 at 102.00 AAA 10,301,946
Highway System Revenue Bonds, Senior Series
1997A, 5.000%, 1/01/37 - MBIA Insured
890 Massachusetts, General Obligation Bonds, 11/12 at 100.00 AA (4) 956,056
Consolidated Loan, Series 2002C, 5.250%, 11/01/30
(Pre-refunded 11/01/12)
Massachusetts, General Obligation Bonds,
Consolidated Loan, Series 2002E:
1,255 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 1,349,276
3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 4,026,324
8,500 Route 3 North Transportation Improvements 6/10 at 100.00 AAA 8,922,535
Association, Massachusetts, Lease Revenue Bonds,
Series 2000, 5.375%, 6/15/33
(Pre-refunded 6/15/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,310 Total Massachusetts 53,554,301
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.7% (4.5% OF TOTAL INVESTMENTS)
17,000 Birmingham City School District, Oakland County, 11/07 at 100.00 AAA 17,050,150
Michigan, School Building and Site Bonds,
Series 1998, 4.750%, 11/01/24 - FSA Insured
5,000 Detroit, Michigan, Second Lien Sewerage Disposal 7/15 at 100.00 AAA 5,254,500
System Revenue Bonds, Series 2005A, 5.000%,
7/01/35 - MBIA Insured
3,000 Detroit, Michigan, Senior Lien Water Supply 7/07 at 101.00 AAA 3,036,000
System Revenue Bonds, Series 1997A, 5.000%,
7/01/21 (Pre-refunded 7/01/07) - MBIA Insured
4,030 Hancock Hospital Finance Authority, Michigan, 8/08 at 100.00 AAA 4,114,469
FHA-Insured Mortgage Hospital Revenue Bonds,
Portage Health System Inc., Series 1998,
5.450%, 8/01/47 (Pre-refunded 8/01/08) - MBIA Insured
1,500 Michigan State Building Authority, Revenue 10/11 at 100.00 AA- 1,563,780
Bonds, Facilities Program, Series 2001I,
5.000%, 10/15/24
5,000 Michigan State Building Authority, Revenue 10/13 at 100.00 AAA 5,241,400
Refunding Bonds, Facilities Program, Series 2003II,
5.000%, 10/15/29 - MBIA Insured
7,115 Michigan State Hospital Finance Authority, 3/13 at 100.00 A1 (4) 7,752,077
Hospital Revenue Refunding Bonds, Henry Ford Health
System, Series 2003A, 5.500%, 3/01/16 (Pre-refunded 3/01/13)
5,000 Michigan State Hospital Finance Authority, No Opt. Call AAA 5,292,300
Hospital Revenue Refunding Bonds, Sisters of Mercy
Health Corporation, Series 1993P, 5.375%,
8/15/14 - MBIA Insured (ETM)
3,000 Michigan Strategic Fund, Collateralized Limited 9/09 at 102.00 AAA 3,150,000
Obligation Pollution Control Revenue Refunding
Bonds, Detroit Edison Company, Series 1999A,
5.550%, 9/01/29 - MBIA Insured (Alternative
Minimum Tax)
10,000 Wayne County, Michigan, Airport Revenue Bonds, 12/08 at 101.00 AAA 10,300,500
Detroit Metropolitan Wayne County Airport,
Series 1998A, 5.375%, 12/01/16 - MBIA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
60,645 Total Michigan 62,755,176
------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.0% (2.0% OF TOTAL INVESTMENTS)
$ 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA $ 3,159,600
Subordinate Airport Revenue
Bonds, Series 2001C, 5.250%, 1/01/26
(Pre-refunded 1/01/11) - FGIC Insured
20,165 St. Paul Housing and Redevelopment Authority, 11/15 at 103.00 AAA 24,782,580
Minnesota, Sales Tax Revenue Refunding Bonds,
Civic Center Project, Series 1996, 7.100%,
11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,165 Total Minnesota 27,942,180
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.3% (0.9% OF TOTAL INVESTMENTS)
9,750 Mississippi Business Finance Corporation, 10/07 at 100.00 BBB- 9,855,105
Pollution Control Revenue Refunding Bonds, System
Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,556,131
Revenue Bonds, Baptist Memorial
Healthcare, Series 2004B-1, 5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
12,225 Total Mississippi 12,411,236
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6% (1.1% OF TOTAL INVESTMENTS)
6,350 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AAA 6,756,845
Improvement Projects, Series 2003B,
5.250%, 9/01/17 - FGIC Insured
1,845 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 1,963,080
Revenue Bonds, BJC Health System, Series
2003, 5.250%, 5/15/18
3,815 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 4,066,332
Revenue Bonds, SSM Healthcare System,
Series 2001A, 5.250%, 6/01/28 (Pre-refunded
6/01/11) - AMBAC Insured
2,000 Missouri-Illinois Metropolitan District Bi-State 10/13 at 100.00 AAA 2,096,020
Development Agency, Mass Transit Sales Tax
Appropriation Bonds, Metrolink Cross County
Extension Project, Series 2002B, 5.000%,
10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,010 Total Missouri 14,882,277
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.7% (0.4% OF TOTAL INVESTMENTS)
535 Montana Board of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 540,591
Series 1997A-1, 6.150%, 6/01/30
(Alternative Minimum Tax)
670 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 683,702
Series 2000A-2, 6.450%, 6/01/29
(Alternative Minimum Tax)
4,795 Montana Higher Education Student Assistance Corporation, 12/08 at 101.00 A2 4,902,456
Student Loan Revenue Bonds,
Subordinate Series 1998B, 5.500%, 12/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Montana 6,126,749
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,405 Nebraska Investment Finance Authority, Single 9/10 at 100.00 AAA 1,415,636
Family Housing Revenue Bonds, Series 2000E,
5.850%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.7% (2.5% OF TOTAL INVESTMENTS)
10,900 Clark County School District, Nevada, General 6/12 at 100.00 AAA 11,815,709
Obligation Bonds, Series 2002C, 5.500%, 6/15/19
(Pre-refunded 6/15/12) - MBIA Insured
5,000 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 5,303,550
Southern Nevada Water Authority Loan,
Series 2001, 5.300%, 6/01/19 (Pre-refunded
6/01/11) - FGIC Insured
6,980 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 7,202,453
Industry, Revenue Bonds, Las Vegas
Monorail Project, First Tier, Series 2000, 5.375%,
1/01/40 - AMBAC Insured
10,000 Reno, Nevada, Health Facilities Revenue Bonds, 7/17 at 100.00 A 10,547,500
Catholic Healthcare West, Series 2007A,
5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
32,880 Total Nevada 34,869,212
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.6% (1.0% OF TOTAL INVESTMENTS)
3,265 New Hampshire Health and Education Facilities Authority, 1/15 at 100.00 A 3,384,695
Revenue Bonds, Southern New Hampshire
University, Series 2005, 5.000%, 1/01/30 - ACA Insured
21
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE (continued)
New Hampshire Housing Finance Authority, FHLMC
Multifamily Housing Remarketed Revenue Bonds,
Countryside LP, Series 1994:
$ 3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa $ 3,901,304
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,253,636
------------------------------------------------------------------------------------------------------------------------------------
13,935 Total New Hampshire 14,539,635
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.8% (5.9% OF TOTAL INVESTMENTS)
3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100.00 AAA 3,093,360
Sublease Revenue Bonds, Light Rail
Transit System, Series 1999A, 5.250%, 5/01/17
(Pre-refunded 5/01/09) - FSA Insured
2,260 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,325,337
Loan Revenue Bonds, Series 2000A,
6.000%, 6/01/13 - MBIA Insured (Alternative Minimum Tax)
8,750 New Jersey Transportation Trust Fund Authority, 6/07 at 102.00 AAA 8,940,138
Transportation System Bonds, Series 1996B,
5.250%, 6/15/16 (Pre-refunded 6/15/07)
4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 5,142,690
System Bonds, Series 2001C,
5.500%, 12/15/18 - FSA Insured
9,250 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 10,157,333
System Bonds, Series 2003C,
5.500%, 6/15/23 (Pre-refunded 6/15/13)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
35,000 0.000%, 12/15/29 - FSA Insured No Opt. Call AAA 13,103,300
10,000 0.000%, 12/15/30 - FGIC Insured No Opt. Call AAA 3,576,400
10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,628,500
5.000%, 1/01/20 - FSA Insured
11,960 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 12,786,436
Settlement Asset-Backed Bonds,
Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12)
4,450 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 5,174,193
Settlement Asset-Backed Bonds,
Series 2003, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
West Deptford Township, Gloucester County, New Jersey, General
Obligation Bonds, Series 2000:
3,150 5.500%, 9/01/21 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,330,810
3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,526,429
------------------------------------------------------------------------------------------------------------------------------------
105,655 Total New Jersey 81,784,926
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.8% (6.5% OF TOTAL INVESTMENTS)
5,500 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 5,772,415
Mortgage Revenue Bonds, Kaleida
Health, Series 2004, 5.050%, 2/15/25
5 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 5,056
Revenue Bonds, Mental Health
Services Facilities, Series 1996B, 5.375%, 2/15/26 -
MBIA Insured
2,070 Dormitory Authority of the State of New York, Insured 7/08 at 101.00 AAA 2,134,750
Revenue Bonds, 853 Schools Program,
Gateway-Longview Inc., Series 1998A, 5.500%,
7/01/18 - AMBAC Insured
2,250 Dormitory Authority of the State of New York, 7/09 at 101.00 AAA 2,359,395
Lease Revenue Bonds, State University Dormitory
Facilities, Series 1999C, 5.500%, 7/01/29
(Pre-refunded 7/01/09) - MBIA Insured
Dormitory Authority of the State of New York, Revenue
Bonds, Marymount Manhattan College, Series 1999:
1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 AA 1,672,304
9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 9,741,817
1,500 Dormitory Authority of the State of New York, 8/07 at 101.00 AAA 1,520,835
Revenue Bonds, St. Barnabas Hospital, Series
1997, 5.450%, 8/01/35 - AMBAC Insured
3,000 Dormitory Authority of the State of New York, 1/08 at 102.00 AAA 3,093,840
Third General Resolution Consolidated Revenue
Bonds, City University System, Series 1997-1,
5.375%, 7/01/24 (Pre-refunded 1/01/08) -
FSA Insured
17,000 Dormitory Authority of the State of New York, 7/09 at 101.00 AAA 17,826,540
Third General Resolution Consolidated Revenue
Bonds, City University System, Series 1999-1,
5.500%, 7/01/29 (Pre-refunded 7/01/09) -
FSA Insured
1,500 Hempstead Industrial Development Agency, New York, No Opt. Call BB+ 1,538,790
Resource Recovery Revenue Refunding Bonds,
American Ref-Fuel Company of Hempstead LP, Series
2001, 5.000%, 12/01/10 (Mandatory
put 6/01/10)
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 13,220 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA $ 14,264,777
Dedicated Tax Fund Bonds, Series 2002A,
5.500%, 11/15/26 - FSA Insured
10,000 New York City Municipal Water Finance Authority, 6/09 at 101.00 AA+ (4) 10,529,300
New York, Water and Sewerage System Revenue
Bonds, Fiscal Series 2000A, 5.750%, 6/15/30
(Pre-refunded 6/15/09)
7,810 New York City Transitional Finance Authority, 8/09 at 101.00 AAA 8,248,610
New York, Future Tax Secured Bonds, Fiscal
Series 2000A, 5.750%, 8/15/24 (Pre-refunded 8/15/09)
5 New York City, New York, General Obligation Bonds, 8/07 at 100.00 AA- 5,057
Fiscal Series 1987D, 8.500%, 8/01/08
6,300 New York City, New York, General Obligation Bonds, 5/10 at 101.00 AAA 6,789,825
Fiscal Series 2000A, 6.250%, 5/15/26 -
FSA Insured
3,000 New York State Energy Research and Development 9/08 at 102.00 AAA 3,134,310
Authority, Pollution Control Revenue Bonds,
Rochester Gas and Electric Corporation, Series 1998A,
5.950%, 9/01/33 - MBIA Insured
(Alternative Minimum Tax)
2,320 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 2,432,706
Tobacco Settlement Asset-Backed and
State Contingency Contract-Backed Bonds, Series
2003A-1, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
86,295 Total New York 91,070,327
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 5,065,816
Healthcare System Revenue Bonds, DBA
Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45
2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/08 at 102.00 AAA 2,055,080
Revenue Bonds, Series 1998A, 5.000%,
1/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,900 Total North Carolina 7,120,896
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.5% (2.4% OF TOTAL INVESTMENTS)
6,720 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 6,892,637
5.000%, 1/01/31 - FSA Insured
780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 Aaa 813,088
5.000%, 1/01/31 (Pre-refunded
1/01/10) - FSA Insured
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,781,875
Initiatives, Series 2004A,
5.000%, 5/01/30
1,305 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 7/09 at 100.00 Aaa 1,313,965
Program Residential Mortgage
Revenue Bonds, Series 1999C, 5.750%, 9/01/30 (Alternative
Minimum Tax)
6,400 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/08 at 102.00 N/R 6,507,136
Bonds, Bay Shore Power, Series
1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
13,300 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 13,753,929
Bonds, Bay Shore Power, Series
1998B, 6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
32,155 Total Ohio 33,062,630
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,400 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B 3,466,368
Bonds, American Airlines Inc.,
Series 2000B, 6.000%, 6/01/35 (Mandatory put 12/01/08)
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0% (0.7% OF TOTAL INVESTMENTS)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call Baa1 9,241,317
Portland General Electric
Company, Series 1985B, 4.800%, 6/01/10
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3% (2.2% OF TOTAL INVESTMENTS)
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Guaranteed Water Revenue Bonds, Series 1998:
3,125 0.000%, 5/15/22 - FSA Insured No Opt. Call AAA 1,645,469
3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,569,375
3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,503,201
3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,377,441
4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,770,744
2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 1,113,644
3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 1,167,330
23
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 2,845 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- $ 2,957,349
Resource Recovery Revenue
Refunding Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative
Minimum Tax)
11,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/08 at 102.00 AAA 11,276,760
Catholic Health East, Series 1998A,
4.875%, 11/15/18 - AMBAC Insured
Pennsylvania Economic Development Financing Authority,
Senior Lien Resource Recovery Revenue
Bonds, Northampton Generating Project, Series 1994A:
1,400 6.400%, 1/01/09 (Alternative Minimum Tax) 7/07 at 100.00 BB+ 1,401,316
4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 7/07 at 100.00 BB+ 4,569,255
500 Pennsylvania Economic Development Financing Authority, 7/07 at 100.00 N/R 500,025
Subordinate Resource Recovery Revenue
Bonds, Northampton Generating Project, Series 1994C,
6.875%, 1/01/11 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
42,730 Total Pennsylvania 30,851,909
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,250 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,343,025
Revenue Bonds, Series 2000B, 5.875%,
7/01/21 (Pre-refunded 7/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 AAA 2,095,000
Bonds, Series 2002A, 5.000%,
7/15/23 - MBIA Insured
Rhode Island Health and Educational Building Corporation,
Revenue Refunding Bonds, Salve Regina University, Series 2002:
1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA 1,340,325
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,146,388
7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 7,054,390
Homeownership Opportunity Bond Program,
Series 50A, 4.650%, 10/01/34
------------------------------------------------------------------------------------------------------------------------------------
11,340 Total Rhode Island 11,636,103
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.3% (2.9% OF TOTAL INVESTMENTS)
2,625 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,802,345
FHA-Insured Mortgage Revenue Bonds,
Series 2004A, 5.250%, 2/15/25 - MBIA Insured
22,855 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 8,026,905
Revenue Bonds, Series 2004A-2,
0.000%, 1/01/31 - AMBAC Insured
6,925 South Carolina, General Obligation Bonds, Series 1999A, 10/09 at 101.00 Aaa 6,995,427
4.000%, 10/01/14
21,000 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 22,335,177
Tobacco Settlement
Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
53,405 Total South Carolina 40,159,854
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.3% (0.8% OF TOTAL INVESTMENTS)
2,860 Johnson City Health and Educational Facilities Board, Tennessee, 7/23 at 100.00 AAA 2,942,282
Hospital Revenue Refunding
and Improvement Bonds, Johnson City Medical Center, Series
1998C, 5.125%, 7/01/25
(Pre-refunded 7/01/23) - MBIA Insured
1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,803,751
Revenue Bonds, Series 1999D,
6.000%, 3/01/24 - AMBAC Insured (Alternative Minimum Tax)
6,000 Metropolitan Government of Nashville-Davidson County Health and 12/17 at 100.00 AAA 7,063,320
Educational Facilities Board,
Tennessee, Revenue Refunding and Improvement Bonds, Meharry
Medical College, Series 1996,
6.000%, 12/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,560 Total Tennessee 11,809,353
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.6% (4.4% OF TOTAL INVESTMENTS)
3,975 Bell County Health Facilities Development Corporation, Texas, 2/10 at 101.00 AAA 4,259,133
Revenue Bonds, Scott and White
Memorial Hospital and Scott, Sherwood and Brindley Foundation,
Series 2000A, 6.125%,
8/15/23 (Pre-refunded 2/15/10) - MBIA Insured
5,000 Bexar Metropolitan Water District, Texas, Waterworks System 5/16 at 100.00 AAA 5,268,550
Revenue Bonds, Series 2006,
5.000%, 5/01/35 - MBIA Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Central Texas Regional Mobility Authority, Travis and Williamson
Counties, Toll Road Revenue Bonds, Series 2005:
$ 4,000 5.000%, 1/01/35 - FGIC Insured 1/15 at 100.00 AAA $ 4,174,400
3,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 AAA 3,107,040
1,000 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/08 at 100.00 AA (4) 1,012,550
Series 1998, 5.250%, 2/15/15
(Pre-refunded 2/15/08)
1,000 Harlingen Independent School District, Cameron County, Texas, 8/09 at 100.00 AAA 1,043,410
Unlimited Tax School Building
Bonds, Series 1999, 5.650%, 8/15/29 (Pre-refunded 8/15/09)
1,625 Harris County Health Facilities Development Corporation, Texas, 7/09 at 101.00 AAA 1,694,258
Revenue Bonds, Christus
Health, Series 1999A, 5.375%, 7/01/24 (Pre-refunded
7/01/09) - MBIA Insured
4,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 4,171,120
Obligation Bonds, Series 2003, 5.000%,
2/15/27 - AMBAC Insured
3,885 Houston Independent School District, Public Facility No Opt. Call AAA 2,314,333
Corporation, Harris County, Texas, Lease
Revenue Bonds, Cesar E. Chavez High School, Series
1998A, 0.000%, 9/15/19 - AMBAC Insured
33,855 Leander Independent School District, Williamson and Travis 8/14 at 23.67 AAA 5,714,385
Counties, Texas, General Obligation
Bonds, Series 2006, 0.000%, 8/15/40
Leander Independent School District, Williamson and Travis
Counties, Texas, Unlimited Tax
School Building and Refunding Bonds, Series 1998:
4,930 0.000%, 8/15/20 8/07 at 49.08 AAA 2,383,803
3,705 0.000%, 8/15/22 8/07 at 43.67 AAA 1,593,706
285 Lubbock Housing Finance Corporation, Texas, GNMA Mortgage-Backed 6/07 at 102.00 AAA 287,100
Securities Program Single
Family Mortgage Revenue Refunding Bonds,
Series 1997A, 6.125%, 12/01/17
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 AAA 3,614,398
5.000%, 3/01/27 - FGIC Insured
6,835 San Antonio, Texas, Electric and Gas System Revenue 2/09 at 100.00 Aa1 6,863,707
Refunding Bonds, New Series 1998A,
4.500%, 2/01/21
6,000 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 6,295,620
Texas, Limited Tax Schoolhouse and
Refunding Bonds, Series 2001, 5.125%, 2/01/26
(Pre-refunded 2/01/11)
4,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 4,187,080
Refunding and Improvement Bonds, Series
1999, 5.000%, 3/01/22 - FSA Insured
1,740 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 AAA 1,798,986
State Participation Program,
Series 1999C, 5.500%, 8/01/29 - MBIA Insured
1,690 Webb County, Laredo, Texas, Combination Tax and Sewer System, 2/08 at 100.00 AAA 1,695,966
Revenue Certificates of
Obligation, Series 1998A, 4.500%, 2/15/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
94,005 Total Texas 61,479,545
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.2% (2.8% OF TOTAL INVESTMENTS)
3,315 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 3,391,809
Refunding Bonds, Series 1997B, 5.750%,
7/01/19 (Pre-refunded 7/01/07) - MBIA Insured
6,685 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 6,840,493
Refunding Bonds, Series 1997B, 5.750%,
7/01/19 - MBIA Insured
Utah County, Utah, Hospital Revenue Bonds, IHC Health
Services Inc., Series 1997:
12,885 5.250%, 8/15/21 - MBIA Insured (ETM) 8/07 at 101.00 AAA 13,068,998
3,900 5.250%, 8/15/26 - MBIA Insured (ETM) 8/07 at 101.00 AAA 3,955,692
3,255 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 3,367,363
Series 2002A-1, 5.300%, 7/01/18
(Alternative Minimum Tax)
20 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AA 20,389
Series 2000B, 6.250%, 7/01/22
(Alternative Minimum Tax)
1,445 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 1,448,309
Series 2000D-1, 6.050%, 7/01/14
(Alternative Minimum Tax)
635 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 646,779
Series 2000E-1, Class II, 6.150%,
1/01/27 (Alternative Minimum Tax)
1,755 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aa1 1,763,196
Series 2000E-1, Class III, 6.000%,
1/01/15 (Alternative Minimum Tax)
25
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH (continued)
$ 895 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA $ 917,563
Series 2001A-2, 5.650%, 7/01/27
(Alternative Minimum Tax)
705 Utah Housing Finance Agency, Single Family Mortgage 1/11 at 100.00 Aaa 716,618
Bonds, Series 2001B-1, 5.750%, 7/01/19
(Alternative Minimum Tax)
3,000 Utah Water Finance Agency, Revenue Bonds, Pooled Loan 10/12 at 100.00 Aaa 3,179,490
Financing Program, Series 2002C, 5.250%,
10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,495 Total Utah 39,316,699
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.8% (0.6% OF TOTAL INVESTMENTS)
4,700 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 AA 4,917,563
Taxes Loan Note, Series 2003, 5.000%,
10/01/33 - RAAI Insured
2,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 2,759,650
Refinery Project - Hovensa LLC, Series
2003, 6.125%, 7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Virgin Islands 7,677,213
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.0% (3.3% OF TOTAL INVESTMENTS)
12,235 Chelan County Public Utility District 1, Washington, No Opt. Call AAA 5,242,575
Columbia River-Rock Island Hydro-Electric
System Revenue Refunding Bonds, Series 1997A, 0.000%,
6/01/26 - MBIA Insured
3,100 Cowlitz County Public Utilities District 1, Washington, 9/14 at 100.00 AAA 3,252,024
Electric Production Revenue Bonds,
Series 2004, 5.000%, 9/01/28 - FGIC Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,430,350
Bonds, Nuclear Project 1, Series
2003A, 5.500%, 7/01/16
10,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AAA 10,030,000
Bonds, Providence Health Care
Services, Series 2006A, 4.625%, 10/01/34 - FGIC Insured
4,685 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 4,921,077
Bonds, Providence Services, Series
1999, 5.375%, 12/01/19 (Pre-refunded 12/01/09) - MBIA Insured
5,000 Washington State Housing Finance Commission, Non-Profit 7/09 at 101.00 AA 5,247,100
Housing Revenue Bonds, Kline Galland
Center, Series 1999, 6.000%, 7/01/29 - RAAI Insured
12,000 Washington, Motor Vehicle Fuel Tax General Obligation 1/11 at 100.00 Aa1 12,475,320
Bonds, Series 2001D, 5.250%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
52,020 Total Washington 46,598,446
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,260,550
Bonds, Appalachian Power Company,
Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 11,620 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 AA $ 12,389,825
Revenue Bonds, Marshfield Clinic,
Series 1999, 6.250%, 2/15/29 - RAAI Insured
7,490 Wisconsin Health and Educational Facilities Authority, 7/08 at 103.00 N/R 7,763,460
Revenue Bonds, Millennium Housing
Foundation Inc., Series 1998, 6.100%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
19,110 Total Wisconsin 20,153,285
------------------------------------------------------------------------------------------------------------------------------------
$ 1,528,720 Total Investments (cost $1,302,301,741) - 149.8% 1,397,939,647
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligation - (0.7)% (6,665,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 20,741,128
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (479,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 933,015,775
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27
Nuveen Municipal Advantage Fund, Inc. (NMA)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.1% (1.9% OF TOTAL INVESTMENTS)
$ 10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $ 10,382,700
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded
2/01/09) - FGIC Insured
5,075 Lauderdale County and Florence Healthcare Authority, Alabama, 7/09 at 101.00 AAA 5,256,127
Revenue Bonds, Coffee Health Group, Series 1999A,
5.250%, 7/01/24 - MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, Environmental 5/12 at 100.00 BBB 5,533,222
Improvement Revenue Bonds, MeadWestvaco Corporation, Series
2002A, 6.350%, 5/15/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,230 Total Alabama 21,172,049
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4% (0.2% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General Housing
Purpose Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,202,906
1,280 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,358,374
------------------------------------------------------------------------------------------------------------------------------------
2,405 Total Alaska 2,561,280
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,000 Maricopa County Pollution Control Corporation, Arizona, 5/07 at 100.50 BBB 5,032,400
Remarketed Revenue Refunding Bonds, Public Service Company of
New Mexico, Series 1992A, 5.750%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.7% (8.0% OF TOTAL INVESTMENTS)
2,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 2,068,875
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/25 - AMBAC Insured
Calexico Unified School District, Imperial County, California,
General Obligation Bonds, Series 2005B:
4,070 0.000%, 8/01/32 - FGIC Insured No Opt. Call AAA 1,322,954
6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call AAA 1,906,142
3,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 3,056,010
Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
7,500 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 7,890,600
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.125%, 6/01/29
9,955 Capistrano Unified School District, Orange County, California, No Opt. Call AAA 3,394,755
Special Tax Bonds, Community Facilities District,
Series 2005, 0.000%, 9/01/31 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,800 0.000%, 2/01/33 - FGIC Insured 2/15 at 38.73 AAA 1,025,012
3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call AAA 1,000,931
7,535 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 9,634,100
Program Home Mortgage Revenue Bonds, Series 1989, 7.750%,
5/01/22 (Alternative Minimum Tax) (ETM)
8,145 Cupertino Union School District, Santa Clara County, California, 8/13 at 55.54 AAA 3,424,973
General Obligation Bonds, Series 2003B,
0.000%, 8/01/25 - FGIC Insured
2,990 East Bay Municipal Utility District, Alameda and Contra Costa 6/07 at 100.00 AAA 2,991,346
Counties, California, Water System Subordinated Revenue
Refunding Bonds, Series 1996, 4.750%, 6/01/21 - FGIC Insured
2,000 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 779,140
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2004B, 0.000%,
10/01/28 - MBIA Insured
3,360 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 1,393,930
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2002A,
0.000%, 7/01/27 - MBIA Insured
2,315 Gateway Unified School District, California, General Obligation No Opt. Call AAA 735,962
Bonds, Series 2004B, 0.000%, 8/01/32 - FGIC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB $ 1,003,080
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
3,000 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,302,390
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
0.000%, 6/01/26 - FSA Insured
1,275 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,358,462
General Obligation Bonds, Series 2002, 5.250%,
8/01/23 - FSA Insured
North Orange County Community College District, California,
General Obligation Bonds, Series 2003B:
7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AAA 3,488,794
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AAA 1,723,880
5,000 Palmdale Community Redevelopment Agency, California, Residential No Opt. Call AAA 5,673,150
Mortgage Revenue Refunding Bonds, Series 1991B,
7.375%, 2/01/12 (ETM)
5,000 Palmdale Community Redevelopment Agency, California, Single No Opt. Call AAA 6,534,750
Family Restructured Mortgage Revenue Bonds, Series 1986A,
8.000%, 3/01/16 (Alternative Minimum Tax) (ETM)
9,315 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 11,493,779
Single Family Mortgage Revenue Bonds, Series 1989A,
7.600%, 1/01/23 (Alternative Minimum Tax) (ETM)
7,660 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 3,756,770
California, Senior Lien Toll Road Revenue Bonds, Series
1993, 0.000%, 1/01/24 (ETM)
23,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 6,830,540
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
7,250 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 2,366,980
County, California, General Obligation Bonds, Series 2005A,
0.000%, 9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
141,610 Total California 86,157,305
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.5% (4.7% OF TOTAL INVESTMENTS)
8,350 Colorado Health Facilities Authority, Remarketed Revenue Bonds, 7/07 at 101.50 AAA 8,527,354
Kaiser Permanente System, Series 1994A, 5.350%, 11/01/16 (ETM)
9,440 Colorado Health Facilities Authority, Revenue Bonds, Catholic 9/16 at 100.00 AA 9,199,469
Health Initiatives, Series 2006A, 4.500%, 9/01/38
Denver City and County, Colorado, Airport Revenue
Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 AAA 5,723,382
3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 AAA 3,515,094
1,445 6.601%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 AAA 1,723,986
2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 2,051,540
Revenue Bonds, Convention Center Hotel, Series 2006, 4.750%,
12/01/35 - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior
Revenue Bonds, Series 1997B:
2,650 0.000%, 9/01/16 - MBIA Insured No Opt. Call AAA 1,813,051
8,645 0.000%, 9/01/26 - MBIA Insured No Opt. Call AAA 3,705,247
1,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 1,080,270
Series 2000A, 5.750%, 9/01/35 (Pre-refunded
9/01/10) - MBIA Insured
E-470 Public Highway Authority, Colorado, Senior
Revenue Bonds, Series 2000B:
7,500 0.000%, 9/01/29 - MBIA Insured No Opt. Call AAA 2,812,350
10,000 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 3,262,600
Platte River Power Authority, Colorado, Power Revenue
Refunding Bonds, Series 2002EE:
1,030 5.375%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2 (4) 1,110,917
4,890 5.375%, 6/01/18 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2 (4) 5,274,158
Platte River Power Authority, Colorado, Power Revenue
Refunding Bonds, Series 2002EE:
970 5.375%, 6/01/17 6/12 at 100.00 AA 1,040,296
110 5.375%, 6/01/18 6/12 at 100.00 AA 117,966
------------------------------------------------------------------------------------------------------------------------------------
66,695 Total Colorado 50,957,680
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,725 District of Columbia Housing Finance Agency, GNMA/FNMA Single 6/07 at 102.00 AAA 1,751,048
Family Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.2% (2.6% OF TOTAL INVESTMENTS)
$ 2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA $ 2,867,144
Stratford Point Apartments, Series 2000O-1, 5.850%,
12/01/31 - FSA Insured (Alternative Minimum Tax)
14,730 South Miami Florida Health Facilities Authority, Hospital 8/17 at 100.00 AA- 15,128,593
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (WI/DD, Settling 5/16/07)
10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany Health 6/07 at 100.00 AAA 10,189,767
System - St. Mary's Hospital, Series 1993, 5.125%,
12/01/23 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
27,630 Total Florida 28,185,504
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 4,298,200
5.250%, 10/01/39 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,215 Hawaii Housing and Community Development Corporation, GNMA 7/10 at 102.00 AAA 2,325,484
Collateralized Multifamily Housing Revenue Bonds, Sunset
Villas, Series 2000, 5.700%, 7/20/31
650 Hawaii Housing Finance and Development Corporation, Single Family 7/07 at 102.00 AAA 652,789
Mortgage Purchase Revenue Bonds, Series 1997A, 5.750%,
7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,865 Total Hawaii 2,978,273
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.2% (10.2% OF TOTAL INVESTMENTS)
12,500 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 12,833,375
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
4,000 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 4,125,200
Obligation Bonds, Dedicated Tax Revenues, Series 1997, 5.750%,
12/01/20 (Pre-refunded 12/01/07) - AMBAC Insured
3,510 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 1,368,900
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/28 - FGIC Insured
2,720 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 923,984
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/31 - FGIC Insured
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,404,639
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded 7/01/10) - FGIC Insured
5,000 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AAA 5,231,600
Bonds, O'Hare International Airport, Series 2001A, 5.375%,
1/01/32 - AMBAC Insured (Alternative Minimum Tax)
5,000 Chicago, Illinois, Second Lien Wastewater Transmission Revenue 1/08 at 102.00 AAA 5,149,600
Bonds, Series 1997, 5.250%, 1/01/28 (Pre-refunded
1/01/08) - AMBAC Insured
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 6,336,180
Medical Center, Series 2002, 5.750%, 5/15/22
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 8/07 at 102.00 A 6,294,033
Lincoln Health Center, Series 1996B, 5.750%, 2/15/22
4,210 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 N/R (4) 4,269,824
Health Services, Series 1997A, 5.375%, 8/15/16
(Pre-refunded 8/15/07)
10,740 Lake and McHenry Counties Community Unit School District 118, 1/15 at 66.94 Aaa 5,126,095
Wauconda, Illinois, General Obligation Bonds, Series 2005B,
0.000%, 1/01/23 - FSA Insured
1,090 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 599,304
Bonds, McCormick Place Expansion Project, Series 1993A,
0.000%, 6/15/21 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 1999A:
13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 14,118,466
10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,845,323
3,175 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 697,484
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 6/15/41 - MBIA Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,876,220
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 6/15/24 - MBIA Insured
4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,684,174
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,940 University of Illinois, Auxiliary Facilities Systems Revenue Bonds, 4/13 at 100.00 AAA $ 2,031,917
Series 2003A, 5.000%, 4/01/23 - AMBAC Insured
7,500 Valley View Public Schools, Community Unit School District 365U of No Opt. Call AAA 3,358,275
Will County, Illinois, General Obligation Bonds, Series 2005,
0.000%, 11/01/25 - MBIA Insured
23,125 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 11,267,656
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
137,025 Total Illinois 109,542,249
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.2% OF TOTAL INVESTMENTS)
5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 5,553,371
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
9,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/07 at 101.00 AAA 9,097,830
Refunding and Improvement Bonds, Community Hospitals of Indiana,
Series 1995, 5.700%, 5/15/22 (Pre-refunded 5/17/07) -
MBIA Insured
6,075 LaGrange County Jail Building Corporation, Indiana, First 10/09 at 101.00 A3 (4) 6,369,455
Mortgage Jail Bonds, Series 1998, 5.400%, 10/01/21
(Pre-refunded 10/01/09)
2,330 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 2,417,725
Madison Center Inc., Series 1999, 5.450%, 2/15/12
------------------------------------------------------------------------------------------------------------------------------------
22,610 Total Indiana 23,438,381
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.8% (1.1% OF TOTAL INVESTMENTS)
5,000 Burlington, Kansas, Environmental Improvement Revenue Bonds, No Opt. Call A3 5,015,950
Kansas City Power and Light Company Project, Series 1998A,
4.750%, 9/01/15 (Mandatory put 10/01/07)
4,935 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 5,242,549
Series 2004A, 5.000%, 3/01/22
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and 6/14 at 100.00 AAA 1,875,160
Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,685 Total Kansas 12,133,659
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,500 Louisville and Jefferson County Metropolitan Sewer District, 5/07 at 101.00 AAA 5,560,445
Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997A,
5.250%, 5/15/27 - MBIA Insured
4,950 Louisville and Jefferson County Metropolitan Sewer District, 11/07 at 101.00 AAA 5,031,329
Kentucky, Sewer and Drainage System Revenue Bonds, Series
1997B, 5.200%, 5/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,450 Total Kentucky 10,591,774
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 12.0% (7.5% OF TOTAL INVESTMENTS)
13,500 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 14,348,204
Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%,
9/01/29 - AMBAC Insured
7,190 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 8,924,588
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
805 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call N/R (4) 1,001,203
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14 (ETM)
6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 7,063,231
General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured
20,775 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 20,437,199
4.500%, 5/01/41 - FGIC Insured (UB)
10,000 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 10,529,500
5.000%, 5/01/41 - FGIC Insured (UB)
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
6,000 5.500%, 5/15/30 5/11 at 101.00 BBB 6,272,520
11,750 5.875%, 5/15/39 5/11 at 101.00 BBB 12,548,413
------------------------------------------------------------------------------------------------------------------------------------
76,670 Total Louisiana 81,124,858
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 1,750 Massachusetts Health and Educational Facilities Authority, Revenue 1/09 at 101.00 AAA $ 1,790,705
Bonds, UMass Memorial Healthcare, Series 1998A, 5.000%,
7/01/28 - AMBAC Insured
605 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 615,715
Revenue Bonds, Series 77, 5.950%, 6/01/25 - FSA Insured
(Alternative Minimum Tax)
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
2,000 5.125%, 1/01/17 - MBIA Insured 1/09 at 100.00 AAA 2,042,040
5,000 5.000%, 1/01/37 - MBIA Insured 7/07 at 102.00 AAA 5,074,850
------------------------------------------------------------------------------------------------------------------------------------
9,355 Total Massachusetts 9,523,310
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.7% (1.0% OF TOTAL INVESTMENTS)
Michigan State Hospital Finance Authority, Hospital Revenue Bonds,
Detroit Medical Center Obligated Group, Series 1998A:
4,995 5.250%, 8/15/23 8/08 at 101.00 BB- 5,011,134
3,000 5.250%, 8/15/28 8/08 at 101.00 BB- 3,001,980
3,275 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, 8/07 at 100.00 BB- 3,277,489
Detroit Medical Center Obligated Group, Series
1993A, 6.500%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
11,270 Total Michigan 11,290,603
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 5,266,000
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%,
1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
2,375 Minnesota Housing Finance Agency, Single Family Mortgage Revenue 7/09 at 100.00 AA+ 2,393,121
Bonds, Series 2000C, 5.550%, 7/01/24 (Alternative Minimum Tax)
1,795 Minnesota Housing Finance Agency, Single Family Mortgage Revenue 1/10 at 100.00 AA+ 1,806,326
Bonds, Series 2000J, 5.400%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,170 Total Minnesota 9,465,447
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.7% (1.7% OF TOTAL INVESTMENTS)
12,005 Kansas City Municipal Assistance Corporation, Missouri, Leasehold No Opt. Call AAA 4,606,559
Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 - AMBAC Insured
11,000 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 100.00 AAA 11,583,330
Bonds, Washington University, Series 2001A, 5.125%, 6/15/41
(Pre-refunded 6/15/11)
175 Missouri Housing Development Commission, Single Family Mortgage 9/09 at 102.00 AAA 183,234
Revenue Bonds, Homeownership Loan Program, Series 2000A-1,
7.500%, 3/01/31 (Alternative Minimum Tax)
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,572,015
Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink
Cross County Extension Project, Series 2002B, 5.000%,
10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,680 Total Missouri 17,945,138
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.0% (0.7% OF TOTAL INVESTMENTS)
6,920 Montana Board of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 7,031,204
Series 1997A-1, 6.050%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.9% (3.7% OF TOTAL INVESTMENTS)
7,310 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, 7/10 at 100.00 AA+ (4) 7,703,059
Series 2000, 5.500%, 7/01/19 (Pre-refunded 7/01/10)
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AAA 8,081,250
Series 1999A, 6.000%, 7/01/29 (Pre-refunded
7/01/10) - MBIA Insured
7,910 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 8,162,092
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
15,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 A 15,759,000
Catholic Healthcare West, Series 2007B, 5.250%, 7/01/31 (UB)
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 360 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/07 at 102.00 Aaa $ 362,444
Series 1997C-2, 5.750%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
38,080 Total Nevada 40,067,845
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.0% (2.5% OF TOTAL INVESTMENTS)
15,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 5,364,600
System Bonds, Series 2006C, 0.000%, 12/15/30 - FGIC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
13,045 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 13,946,410
5,050 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 5,614,085
2,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,465,250
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
35,595 Total New Jersey 27,390,345
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1% (0.7% OF TOTAL INVESTMENTS)
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding Bonds, 10/07 at 100.50 BBB 7,573,275
Public Service Company of New Mexico - San Juan Project,
Series 1997B, 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.1% (9.5% OF TOTAL INVESTMENTS)
560 Dormitory Authority of the State of New York, Revenue Bonds, Mental 5/07 at 102.00 AA- 571,906
Health Services Facilities Improvements, Series
1997B, 5.625%, 2/15/21
3,655 Dormitory Authority of the State of New York, Revenue Bonds, State 5/08 at 101.00 AA- (4) 3,747,983
University Educational Facilities, Series 1997, 5.125%,
5/15/27 (Pre-refunded 5/15/08)
440 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 433,950
Series 2006A, 4.500%, 2/15/47 - MBIA Insured
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,320,810
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
Nassau County, New York, General Obligation Improvement
Bonds, Series 2000F:
3,980 7.000%, 3/01/11 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,338,678
4,070 7.000%, 3/01/12 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,436,788
3,925 7.000%, 3/01/15 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,278,721
4,975 New York City Industrial Development Agency, New York, Special 12/08 at 102.00 Ba2 4,978,632
Facilities Revenue Bonds, British Airways PLC, Series 1998,
5.250%, 12/01/32 (Alternative Minimum Tax)
3,000 New York City Industrial Development Agency, New York, Special 12/12 at 101.00 Ba2 3,335,520
Facilities Revenue Bonds, British Airways PLC, Series 2002,
7.625%, 12/01/32 (Alternative Minimum Tax)
5,000 New York City Municipal Water Finance Authority, New York, Water 6/07 at 101.00 AAA 5,062,000
and Sewerage System Revenue Bonds, Fiscal Series 1997B, 5.750%,
6/15/29 (Pre-refunded 6/15/07) - FGIC Insured
9,850 New York City Municipal Water Finance Authority, New York, Water 6/09 at 101.00 AAA 10,371,361
and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%,
6/15/31 (Pre-refunded 6/15/09) - FGIC Insured
10,000 New York City Municipal Water Finance Authority, New York, Water 12/14 at 100.00 AAA 10,526,900
and Sewerage System Revenue Bonds, Fiscal Series 2005B,
5.000%, 6/15/36 - FSA Insured
10,000 New York City Transitional Finance Authority, New York, Future Tax 5/10 at 101.00 AAA 10,767,600
Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29
(Pre-refunded 5/15/10)
10,000 New York City, New York, General Obligation Bonds, Fiscal Series 10/07 at 101.00 Aaa 10,202,400
1997G, 6.000%, 10/15/26 (Pre-refunded 10/15/07)
7,435 New York City, New York, General Obligation Bonds, Fiscal Series 5/10 at 101.00 AA- (4) 7,952,699
2000A, 5.750%, 5/15/20 (Pre-refunded 5/15/10)
8,305 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, 4/10 at 100.00 Aa1 8,574,663
Series 94, 5.800%, 10/01/20 (Alternative Minimum Tax)
5,000 New York State Urban Development Corporation, Service Contract 1/09 at 101.00 AAA 5,240,000
Revenue Bonds, Correctional Facilities, Series 1999C, 6.000%,
1/01/29 (Pre-refunded 1/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
97,195 Total New York 102,140,611
------------------------------------------------------------------------------------------------------------------------------------
33
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.3% (1.4% OF TOTAL INVESTMENTS)
$ 1,175 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AAA $ 1,198,218
Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 - AMBAC
Insured (Alternative Minimum Tax)
6,240 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100.00 AA 6,406,358
Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29
(Alternative Minimum Tax)
2,420 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100.00 AA 2,441,586
Bonds, 1998 Trust Agreement, Series 8A, 5.950%, 1/01/27
(Alternative Minimum Tax)
5,135 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100.00 AA 5,270,718
Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,970 Total North Carolina 15,316,880
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,985 North Dakota Housing Finance Agency, Home Mortgage Finance Program 7/08 at 102.00 Aaa 2,008,919
Bonds, Series 1998B, 5.500%, 7/01/29 - MBIA Insured
(Alternative Minimum Tax)
2,250 Ward County Health Care, North Dakota, Revenue Bonds, Trinity 7/16 at 100.00 BBB+ 2,321,280
Obligated Group, Series 2006, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
4,235 Total North Dakota 4,330,199
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.4% (2.8% OF TOTAL INVESTMENTS)
5,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101.00 Baa1 5,134,250
Hospital Facilities Revenue Bonds, Summa Health System,
Series 1998A, 5.375%, 11/15/18
6,000 Cuyahoga County, Ohio, Hospital Revenue Bonds, University 7/09 at 101.00 AAA 6,284,220
Hospitals Health System, Series 1999, 5.500%, 1/15/30
(Pre-refunded 7/15/09) - AMBAC Insured
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
7,840 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 8,558,144
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,458,000
1,475 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 1,494,131
Program Residential Mortgage Revenue Bonds, Series 2000D,
5.450%, 9/01/31 (Alternative Minimum Tax)
2,650 Ohio, General Obligation Bonds, Higher Education, Series 2003A, 5/13 at 100.00 AA+ 2,782,951
5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
27,965 Total Ohio 29,711,696
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.6% (1.6% OF TOTAL INVESTMENTS)
2,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 AAA 1,974,360
Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
2,890 Oklahoma State Industries Authority, Health System Revenue Bonds, 8/09 at 101.00 AAA 3,025,252
Integris Baptist Medical Center, Series 1999A, 5.750%,
8/15/29 - MBIA Insured
2,110 Oklahoma State Industries Authority, Health System Revenue Bonds, 8/09 at 101.00 AAA 2,226,345
Integris Baptist Medical Center, Series 1999A, 5.750%, 8/15/29
(Pre-refunded 8/15/09) - MBIA Insured
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 12/08 at 100.00 B 10,104,600
American Airlines Inc., Series 2001B, 5.650%, 12/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Oklahoma 17,330,557
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,610 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,673,579
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 1,485,900
Bonds, Series 96A, 4.650%, 10/01/31 (Alternative Minimum Tax)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/14 at 100.00 AAA 2,865,434
2004A, 5.500%, 12/01/31 - AMBAC Insured
3,240 Washington County Authority, Pennsylvania, Capital Funding Revenue No Opt. Call AAA 3,489,674
Bonds, Capital Projects and Equipment Acquisition Program,
Series 1999, 6.150%, 12/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,950 Total Pennsylvania 9,514,587
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA $ 5,293,400
2005RR, 5.000%, 7/01/26 - XLCA Insured
4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 5.625%, 7/10 at 100.00 AAA 4,240,960
7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,000 Total Puerto Rico 9,534,360
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,235 Rhode Island Health and Educational Building Corporation, Hospital 5/07 at 102.00 AAA 1,261,170
Financing Revenue Bonds, Lifespan Obligated Group, Series 1996,
5.500%, 5/15/16 - MBIA Insured
11,015 Rhode Island Health and Educational Building Corporation, Hospital 5/07 at 102.00 AAA 11,242,680
Financing Revenue Bonds, Lifespan Obligated Group, Series 1996,
5.500%, 5/15/16 (Pre-refunded 5/15/07) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,250 Total Rhode Island 12,503,850
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.1% (2.6% OF TOTAL INVESTMENTS)
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 11,218,800
Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20
(Pre-refunded 12/01/12)
2,500 Lexington County Health Service District, South Carolina, Hospital 11/13 at 100.00 A+ 2,699,325
Revenue Refunding and Improvement Bonds, Series
2003, 5.750%, 11/01/28
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation Fee 6/14 at 100.00 AAA 3,135,390
Revenue Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC Insured
1,220 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 620,651
Bonds, Series 2004A-2, 0.000%, 1/01/23 - FGIC Insured
2,125 South Carolina Public Service Authority, Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,258,556
Santee Cooper Electric System, Series 2003A, 5.000%,
1/01/21 - AMBAC Insured
7,500 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 8,102,250
Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
26,345 Total South Carolina 28,034,972
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,945 South Dakota Health and Educational Facilities Authority, Revenue 5/17 at 100.00 AA- 3,045,748
Bonds, Sanford Health, Series 2007, 5.000%, 11/01/40
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 5.2% (3.3% OF TOTAL INVESTMENTS)
6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 6,194,220
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,415 Knox County Health, Educational and Housing Facilities Board, 1/13 at 75.87 AAA 12,175,914
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A, 0.000%, 1/01/18 - FSA Insured
14,385 Metropolitan Government of Nashville-Davidson County Health and 11/09 at 101.00 AAA 15,262,772
Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/28
(Pre-refunded 11/15/09) - AMBAC Insured
1,750 Metropolitan Government of Nashville-Davidson County, Tennessee, 5/11 at 100.00 AA 1,814,628
Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26
------------------------------------------------------------------------------------------------------------------------------------
42,550 Total Tennessee 35,447,534
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.6% (10.5% OF TOTAL INVESTMENTS)
11,810 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call Baa2 12,172,803
Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36
(Mandatory put 11/01/11) (Alternative Minimum Tax)
6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston No Opt. Call AAA 6,475,680
Lighting and Power Company, Series 1998, 5.050%, 11/01/18 - AMBAC
Insured (Alternative Minimum Tax)
10,000 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 AAA 10,356,800
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%,
1/01/45 - FGIC Insured
4,250 Ennis Independent School District, Ellis County, Texas, General 8/16 at 60.73 Aaa 1,685,338
Obligation Bonds, Series 2006, 0.000%, 8/15/26
35
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal Revenue 4/09 at 101.00 BBB $ 8,651,244
Bonds, Valero Energy Corporation, Series 1999, 5.700%, 4/01/32
(Alternative Minimum Tax)
5,000 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 5,190,400
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
1,540 Houston Community College, Texas, Limited Tax General Obligation 2/13 at 100.00 AAA 1,605,881
Bonds, Series 2003, 5.000%, 2/15/28 - AMBAC Insured
3,460 Houston Community College, Texas, Limited Tax General Obligation 2/13 at 100.00 AAA 3,685,869
Bonds, Series 2003, 5.000%, 2/15/28 (Pre-refunded
2/15/13) - AMBAC Insured
13,110 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 13,732,987
Series 2000B, 5.500%, 7/01/30 - FSA Insured
Houston, Texas, Water Conveyance System Contract, Certificates of
Participation, Series 1993A-J:
5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call AAA 6,036,475
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,247,580
9,345 Leander Independent School District, Williamson and Travis 8/15 at 35.34 AAA 2,255,883
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/34 - FGIC Insured
16,305 Matagorda County Navigation District 1, Texas, Revenue Bonds, 5/09 at 101.00 BBB- 16,758,441
Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30
(Alternative Minimum Tax)
3,425 Sabine River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call Baa2 3,505,042
Bonds, TXU Electric Company, Series 2001A, 5.500%, 5/01/22
(Mandatory put 11/01/11)
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 Baa2 4,981,060
Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21
4,000 Texas, General Obligation Bonds, Water Financial Assistance, State 8/09 at 100.00 Aa1 4,137,360
Participation Program, Series 1999C, 5.500%, 8/01/35
6,840 Travis County Health Facilities Development Corporation, Texas, 11/09 at 101.00 AAA 7,257,377
Revenue Bonds, Ascension Health Credit Group, Series 1999A,
5.875%, 11/15/24 (Pre-refunded 11/15/09) - AMBAC Insured
245 Wood Glen Housing Finance Corporation, Texas, FHA-Insured Section 7/07 at 100.00 AAA 245,786
8 Assisted Mortgage Revenue Bonds, Copperwood I Project, Series
1990A, 7.625%, 1/01/10 - MBIA Insured (ETM)
3,000 Wylie Independent School District, Taylor County, Texas, General 8/15 at 74.57 AAA 1,554,420
Obligation Bonds, Series 2005, 0.000%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
118,920 Total Texas 112,536,426
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
730 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/07 at 102.00 AAA 746,914
Bonds, Series 1997B, 5.750%, 7/01/19 (Pre-refunded 7/01/07) -
MBIA Insured
1,470 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/07 at 102.00 AAA 1,504,192
Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,200 Total Utah 2,251,106
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,855 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 2,264,186
Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46
(WI/DD, Settling 5/03/07)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.2% (8.9% OF TOTAL INVESTMENTS)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 9,391,548
Consolidated System Revenue Bonds, Series 2001A, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax)
5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,909,048
Consolidated System Revenue Bonds, Series 2002B, 5.250%,
7/01/37 - AMBAC Insured (Alternative Minimum Tax)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,465,434
Consolidated System Revenue Refunding Bonds, Series 2001C,
5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax)
10,730 Pierce County School District 320, Sumner, Washington, Unlimited 12/10 at 100.00 Aaa 11,646,235
Tax General Obligation Bonds, Series 2000, 6.250%, 12/01/17
(Pre-refunded 12/01/10) - FSA Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 10,550 Port of Seattle, Washington, Limited Tax General Obligation Bonds, 12/10 at 100.00 AAA $ 11,140,800
Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax)
5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 6.000%, No Opt. Call AAA 5,618,646
2/01/10 - MBIA Insured (Alternative Minimum Tax)
19,475 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 20,853,048
Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded
3/01/10) - MBIA Insured
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 5,305,150
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
8,750 Washington Public Power Supply System, Revenue Refunding Bonds, 7/08 at 102.00 Aaa 9,040,763
Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
5,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 5,251,950
Providence Services, Series 1999, 5.375%, 12/01/19
(Pre-refunded 12/01/09) - MBIA Insured
1,270 Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, No Opt. Call AAA 592,773
Series 2003F, 0.000%, 12/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
91,295 Total Washington 96,215,395
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,260,550
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (1.9% OF TOTAL INVESTMENTS)
6,995 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco 6/12 at 100.00 BBB 7,499,060
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27
1,685 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 1,821,401
5.000%, 11/01/29 (Pre-refunded 11/01/14) - FSA Insured
565 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 595,131
5.000%, 11/01/29 - FSA Insured
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding Bonds, 4/12 at 100.00 AA- 5,370,400
Madison Gas and Electric Company Projects, Series 2002A, 5.875%,
10/01/34 (Alternative Minimum Tax)
3,000 Southeast Wisconsin Professional Baseball Park District, Sales Tax No Opt. Call AAA 3,437,700
Revenue Refunding Bonds, Series 1998A, 5.500%,
12/15/19 - MBIA Insured
1,525 Wisconsin Housing and Economic Development Authority, Home 3/10 at 100.00 AA 1,549,507
Ownership Revenue Bonds, Series 2000B, 5.750%, 3/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,770 Total Wisconsin 20,273,199
------------------------------------------------------------------------------------------------------------------------------------
1,175,615 Total Investments (cost $1,004,680,494) - 159.0% 1,075,923,683
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.4)% (36,290,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.7)% (4,863,222)
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (358,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 676,770,461
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.7% (0.4% OF TOTAL INVESTMENTS)
Henry County Water Authority, Alabama, Water
Revenue Bonds, Series 2006:
$ 1,935 5.000%, 1/01/36 - RAAI Insured 1/16 at 100.00 AA $ 2,011,452
2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 AA 2,580,449
------------------------------------------------------------------------------------------------------------------------------------
4,420 Total Alabama 4,591,901
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4% (0.2% OF TOTAL INVESTMENTS)
Alaska Housing Finance Corporation, General
Housing Purpose Bonds, Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,202,906
1,275 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,353,068
------------------------------------------------------------------------------------------------------------------------------------
2,400 Total Alaska 2,555,974
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3% (0.8% OF TOTAL INVESTMENTS)
5,000 Arkansas Development Finance Authority, Hospital Revenue Bonds, 2/10 at 100.00 BBB (4) 5,403,850
Washington Regional Medical Center, Series 2000, 7.000%,
2/01/15 (Pre-refunded 2/01/10)
3,480 Cabot School District 4, Lonoke County, Arkansas, General 8/08 at 100.00 Aaa 3,521,064
Obligation Refunding Bonds, Series 2003, 5.000%,
2/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,480 Total Arkansas 8,924,914
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.5% (7.3% OF TOTAL INVESTMENTS)
1,350 Antelope Valley Union High School District, Los Angeles County, No Opt. Call AAA 506,979
California, General Obligation Bonds, Series 2004B, 0.000%,
8/01/29 - MBIA Insured
7,800 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 6,837,324
Settlement Asset-Backed Bonds, Los Angeles County Securitization
Corporation, Series 2006A, 0.000%, 6/01/36 (Mandatory
put 6/01/23)
1,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 1,106,240
Bonds, Series 2002A, 5.750%, 5/01/17 (Pre-refunded 5/01/12)
1,350 California Educational Facilities Authority, Revenue Refunding No Opt. Call Aaa 315,266
Bonds, Loyola Marymount University, Series 2001A, 0.000%,
10/01/39 - MBIA Insured
4,295 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 4,375,188
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
4,000 California Health Facilities Financing Authority, Revenue Bonds, 3/16 at 100.00 A+ 4,200,120
Kaiser Permanante System, Series 2006, 5.250%, 3/01/45
25,000 California General Obligation Bonds, Series 2005, 4.750%, 3/16 at 100.00 AAA 25,735,000
3/01/35 - MBIA Insured (UB)
10,445 Castaic Lake Water Agency, California, Revenue Certificates of No Opt. Call AAA 3,922,515
Participation, Water System Improvement Project, Series 1999,
0.000%, 8/01/29 - AMBAC Insured
8,365 Cupertino Union School District, Santa Clara County, California, 8/13 at 52.66 AAA 3,325,088
General Obligation Bonds, Series 2003B, 0.000%,
8/01/26 - FGIC Insured
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,332,900
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B,
5.000%, 6/01/38 (Pre-refunded 6/01/13) - AMBAC Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,003,080
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.125%, 6/01/47
3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,519,455
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
0.000%, 6/01/26 - FSA Insured
1,500 Lincoln Unified School District, Placer County, California, No Opt. Call AAA 644,115
Community Facilities District 1, Special Tax Bonds, Series
2005, 0.000%, 9/01/26 - AMBAC Insured
490 Los Angeles Department of Water and Power, California, Electric 10/07 at 100.00 AA- (4) 490,417
Plant Revenue Bonds, Second Series 1993, 4.750%, 10/15/20 (ETM)
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 995 Los Angeles Department of Water and Power, California, Electric 8/07 at 100.00 AA- (4) $ 996,234
Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34 (ETM)
1,000 Pajaro Valley Unified School District, Santa Cruz County, No Opt. Call AAA 375,540
California, General Obligation Bonds, Series 2005B,
0.000%, 8/01/29 - FSA Insured
6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call AAA 1,771,020
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
5,000 5.650%, 1/15/17 - MBIA Insured 1/14 at 102.00 AAA 5,606,000
26,000 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 7,721,480
5,000 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 1,725,750
County, California, General Obligation Bonds, Series 2005A,
0.000%, 9/01/28 - MBIA Insured
4,825 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 2,047,441
California, General Obligation Bonds, Series 2005C, 0.000%,
8/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
123,915 Total California 79,557,152
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.4% (3.4% OF TOTAL INVESTMENTS)
1,085 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 AAA 1,168,024
Series 2006, 5.250%, 10/01/40 - XLCA Insured
3,000 Broomfield, Colorado, Master Facilities Lease Purchase Agreement, 12/09 at 100.00 Aaa 3,139,680
Certificates of Participation, Series 1999, 5.750%,
12/01/24 - AMBAC Insured
6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding and 12/12 at 100.00 Aaa 6,801,564
Improvement Bonds, Series 2002A, 5.500%, 12/01/22 - AMBAC Insured
11,465 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 12,209,193
Refunding Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC Insured
(Alternative Minimum Tax)
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 AAA 5,540,400
Series 2000B, 0.000%, 9/01/28 (Pre-refunded
9/01/10) - MBIA Insured
E-470 Public Highway Authority, Colorado,
Toll Revenue Bonds, Series 2004B:
3,800 0.000%, 9/01/27 - MBIA Insured 9/20 at 67.94 AAA 1,416,792
13,300 0.000%, 9/01/31 - MBIA Insured 9/20 at 53.77 AAA 3,904,614
6,250 0.000%, 9/01/32 - MBIA Insured 9/20 at 50.83 AAA 1,732,000
8,000 0.000%, 3/01/36 - MBIA Insured No Opt. Call AAA 1,808,080
------------------------------------------------------------------------------------------------------------------------------------
73,185 Total Colorado 37,720,347
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.9% (1.2% OF TOTAL INVESTMENTS)
3,420 Washington Convention Center Authority, District of Columbia, 10/08 at 100.00 AAA 3,472,668
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
4.750%, 10/01/28 (Pre-refunded 10/01/08) - AMBAC Insured
10,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 9,935,200
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,420 Total District of Columbia 13,407,868
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.5% (2.8% OF TOTAL INVESTMENTS)
15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 1/10 at 101.00 AAA 15,867,000
2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured
14,330 Fulton County Facilities Corporation, Georgia, Certificates of 11/10 at 101.00 AAA 15,264,459
Participation, Public Purpose Project, Series 1999,
5.500%, 11/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,330 Total Georgia 31,131,459
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.7% (8.6% OF TOTAL INVESTMENTS)
4,245 Bolingbrook, Illinois, General Obligation Refunding Bonds, Series No Opt. Call AAA 1,433,324
2002B, 0.000%, 1/01/32 - FGIC Insured
4,600 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 2,597,896
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
39
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA $ 4,168,800
5.000%, 1/01/33 - AMBAC Insured
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,506,586
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 1/09 at 101.00 AAA 5,368,703
5.000%, 1/01/28 - MBIA Insured
10,000 Illinois Finance Authority, Northwestern University, Illinois, 2/15 at 100.00 Aaa 10,464,900
General Revenue Bonds, Series 2006, 5.000%, 12/01/42 (UB)
5,210 Illinois Housing Development Authority, Section 8 Elderly Housing 7/07 at 100.00 BBB 5,267,050
Revenue Bonds, Garden House of River Oaks West Development,
Series 1992A, 6.875%, 1/01/20
38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/10 at 100.00 AAA 40,312,529
Series 2000, 5.500%, 4/01/25 - MBIA Insured
Lake and McHenry Counties Community Unit School District 118,
Wauconda, Illinois, General Obligation Bonds, Series 2005B:
10,230 0.000%, 1/01/22 - FSA Insured 1/15 at 70.63 Aaa 5,162,979
6,780 0.000%, 1/01/24 - FSA Insured 1/15 at 63.44 Aaa 3,053,102
1,975 Lake County Community High School District 127, Grayslake, No Opt. Call AAA 2,499,264
Illinois, General Obligation Bonds, Series 2002A, 9.000%,
2/01/13 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
3,250 0.000%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 2,191,605
3,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 3,416,136
3,700 0.000%, 6/15/30 - MBIA Insured No Opt. Call AAA 1,344,765
3,280 0.000%, 6/15/37 - MBIA Insured No Opt. Call AAA 863,427
11,715 0.000%, 12/15/38 - MBIA Insured No Opt. Call AAA 2,885,522
4,170 0.000%, 6/15/39 - MBIA Insured No Opt. Call AAA 1,003,052
------------------------------------------------------------------------------------------------------------------------------------
122,620 Total Illinois 94,539,640
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.0% (0.6% OF TOTAL INVESTMENTS)
4,695 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 4,949,563
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding Bonds, 8/11 at 102.00 Baa1 2,104,040
Indianapolis Power and Light Company,
Series 1991, 5.750%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
6,695 Total Indiana 7,053,603
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, IPSCO No Opt. Call N/R 4,219,721
Project, Series 1997, 6.000%, 6/01/27 (Mandatory put 6/01/07)
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,710,550
Revolving Fund Leveraged Bonds, Series 2002-II, 5.500%, 11/01/21
500 Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical 4/16 at 100.00 A1 500,890
Center, Series 2006, 4.625%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Kansas 3,211,440
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6% (1.0% OF TOTAL INVESTMENTS)
Jefferson County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2000A:
3,045 5.250%, 7/01/17 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA 3,192,561
7,490 5.250%, 7/01/20 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA 7,852,965
------------------------------------------------------------------------------------------------------------------------------------
10,535 Total Kentucky 11,045,526
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 7,415 Louisiana Local Government Environmental Facilities and Community 12/12 at 100.00 AAA $ 7,686,834
Development Authority, Revenue Bonds, Baton Rouge Community
College Facilities Corporation, Series 2002, 5.000%, 12/01/32 -
MBIA Insured
3,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 3,558,169
General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,765 Total Louisiana 11,245,003
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 2,816,375
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.5% (2.8% OF TOTAL INVESTMENTS)
1,100 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 1,144,143
Series 2000A, 5.250%, 7/01/30
4,150 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 4,343,639
Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
8,315 Massachusetts Turnpike Authority, Metropolitan Highway System 7/07 at 102.00 AAA 8,439,476
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA
Insured
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AAA 10,696,600
Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) - FGIC
Insured
6,195 University of Massachusetts Building Authority, Facilities 11/10 at 100.00 AAA 6,487,714
Revenue Bonds, Senior Series 2000A, 5.125%, 11/01/25
(Pre-refunded 11/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,760 Total Massachusetts 31,111,572
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.0% (0.7% OF TOTAL INVESTMENTS)
5,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 5,033,150
Revenue Bonds, Series 2006D, 4.625%, 7/01/32 - FSA Insured
2,090 Grand Rapids Building Authority, Kent County, Michigan, Limited 8/10 at 100.00 AAA 2,195,587
Tax General Obligation Bonds, Series 2000, 5.375%, 8/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,090 Total Michigan 7,228,737
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 7.7% (4.9% OF TOTAL INVESTMENTS)
930 Minnesota Agricultural and Economic Development Board, Healthcare 11/10 at 101.00 A 1,002,494
System Revenue Bonds, Fairview Hospital and Healthcare Services,
Series 2000A, 6.375%, 11/15/29
29,070 Minnesota Agricultural and Economic Development Board, Healthcare 11/10 at 101.00 A (4) 31,848,218
System Revenue Bonds, Fairview Hospital and Healthcare Services,
Series 2000A, 6.375%, 11/15/29 (Pre-refunded 11/15/10)
2,290 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 2,310,770
Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative
Minimum Tax)
13,675 Minnesota, General Obligation Bonds, Series 2000, 5.125%, 11/01/16 11/10 at 100.00 AAA 14,327,981
3,130 St. Paul Housing and Redevelopment Authority, Minnesota, Sales 11/15 at 103.00 AAA 3,846,739
Tax Revenue Refunding Bonds, Civic Center Project, Series 1996,
7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
49,095 Total Minnesota 53,336,202
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0% (0.6% OF TOTAL INVESTMENTS)
5,900 Mississippi Business Finance Corporation, Pollution Control 10/07 at 100.00 BBB- 5,963,602
Revenue Refunding Bonds, System Energy Resources Inc. Project,
Series 1998, 5.875%, 4/01/22
1,090 Mississippi Home Corporation, GNMA Mortgage-Backed Securities 7/07 at 105.00 Aaa 1,115,484
Program Single Family Mortgage Revenue Bonds, Series 1997D-5,
6.750%, 7/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,990 Total Mississippi 7,079,086
------------------------------------------------------------------------------------------------------------------------------------
41
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri, Leasehold
Revenue Bonds, Series 2004B-1:
$ 7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA $ 2,942,380
5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AAA 1,750,100
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Missouri 4,692,480
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.2% (3.9% OF TOTAL INVESTMENTS)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
6,125 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 4,086,233
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 3,721,725
5,685 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 2,386,506
21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 21,669,270
10,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare 7/17 at 100.00 A 10,547,500
West, Series 2007A, 5.250%, 7/01/31 (UB)
2,135 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2005B, 6/15 at 33.61 AAA 482,467
0.000%, 6/01/37 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
53,445 Total Nevada 42,893,701
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.7% (4.2% OF TOTAL INVESTMENTS)
18,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AAA 19,103,220
System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded
6/15/10)
35,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 10,404,100
System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured
5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and Income 1/17 at 100.00 AAA 3,608,100
Securities, Series 2004B, 0.000%, 1/01/35 - AMBAC Insured
3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue Bonds, No Opt. Call Aaa 1,359,630
Series 2005A, 0.000%, 9/01/25 - MBIA Insured
3,525 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 3,918,743
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,100 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,388,225
2,925 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,401,015
2,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,972,200
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
71,550 Total New Jersey 46,155,233
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.8% (1.1% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,373,286
Bonds, Presbyterian Healthcare Services, Series 2001A, 5.500%,
8/01/21 (Pre-refunded 8/01/11)
5,675 University of New Mexico, Revenue Refunding Bonds, Series 1992A, No Opt. Call AA 6,084,735
6.250%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
11,600 Total New Mexico 12,458,021
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.6% (7.3% OF TOTAL INVESTMENTS)
70 Dormitory Authority of the State of New York, Revenue Bonds, 5/07 at 102.00 AA- 71,497
Mental Health Services Facilities Improvements, Series 1997A,
5.750%, 2/15/27
3,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 3,162,240
Revenue Bonds, Series 2006B, 5.000%, 12/01/35
6,750 Nassau County Tobacco Settlement Corporation, New York, Tobacco 7/09 at 101.00 AAA 7,201,508
Settlement Asset-Backed Bonds, Series 1999A, 6.400%, 7/15/33
(Pre-refunded 7/15/09)
17,870 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AAA 18,873,579
Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded 8/15/09)
630 New York City, New York, General Obligation Bonds, Fiscal Series 8/07 at 101.00 AA- 639,652
1997H, 6.125%, 8/01/25
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 9,370 New York City, New York, General Obligation Bonds, Fiscal Series 8/07 at 101.00 AA- (4) $ 9,518,327
1997H, 6.125%, 8/01/25 (Pre-refunded 8/01/07)
New York City, New York, General Obligation Bonds, Fiscal Series
2002G:
1,000 5.000%, 8/01/17 8/12 at 100.00 AA- 1,045,690
6,530 5.750%, 8/01/18 8/12 at 100.00 AA- 7,078,977
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 AA- 5,456,000
2003A, 5.750%, 8/01/16
10,000 Port Authority of New York and New Jersey, Special Project Bonds, 12/07 at 102.00 AAA 10,303,400
JFK International Air Terminal LLC, Sixth Series 1997, 5.750%,
12/01/22 - MBIA Insured (Alternative Minimum Tax)
7,805 Power Authority of the State of New York, General Revenue Bonds, 11/12 at 100.00 Aa2 8,229,046
Series 2002A, 5.000%, 11/15/21
8,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, Series 7/09 at 101.00 AAA 8,509,920
1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24) (Pre-refunded
7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
76,025 Total New York 80,089,836
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 1,964,296
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45
4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA 3,961,840
Bonds, Mission St. Joseph's Health System, Series 2007, 4.500%,
10/01/31
7,500 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 1/13 at 100.00 AAA 8,031,825
Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,400 Total North Carolina 13,957,961
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 4.2% (2.7% OF TOTAL INVESTMENTS)
23,035 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 24,335,324
Obligated Group, Series 2000A, 5.625%, 6/01/31 - FSA Insured
North Dakota Water Commission, Water Development and Management
Program Bonds, Series 2000A:
2,230 5.700%, 8/01/18 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,366,409
2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,603,591
------------------------------------------------------------------------------------------------------------------------------------
27,715 Total North Dakota 29,305,324
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0% (2.5% OF TOTAL INVESTMENTS)
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,718,400
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA Insured
(UB)
16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A 17,729,306
Kettering Medical Center, Series 1999, 6.300%, 4/01/12
------------------------------------------------------------------------------------------------------------------------------------
26,140 Total Ohio 27,447,706
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.0% (0.0% OF TOTAL INVESTMENTS)
300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 6/09 at 100.00 B 305,856
American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.4% (1.5% OF TOTAL INVESTMENTS)
5,000 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 1/13 at 100.00 AAA 5,324,400
5.250%, 7/01/22 - MBIA Insured
Portland, Oregon, Water System Revenue Bonds, Series 2000A:
6,780 5.375%, 8/01/18 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1 (4) 7,133,577
3,880 5.500%, 8/01/20 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1 (4) 4,097,086
------------------------------------------------------------------------------------------------------------------------------------
15,660 Total Oregon 16,555,063
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.8% (2.4% OF TOTAL INVESTMENTS)
5,000 Delaware County Industrial Development Authority, Pennsylvania, 1/08 at 102.00 BB+ 5,153,450
Resource Recovery Revenue Refunding Bonds, Series 1997A, 6.200%,
7/01/19
5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100.00 Aaa 5,368,150
Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30
(Pre-refunded 12/15/10) - MBIA Insured
43
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 15,050 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA $ 15,950,592
5.000%, 9/15/14
------------------------------------------------------------------------------------------------------------------------------------
25,050 Total Pennsylvania 26,472,192
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.9% (1.9% OF TOTAL INVESTMENTS)
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA 12,609,500
Revenue Bonds, Series 2003, 4.500%, 12/01/23
7,325 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 7,670,960
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
19,825 Total Puerto Rico 20,280,460
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.5% (4.8% OF TOTAL INVESTMENTS)
24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 27,125,840
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
(Pre-refunded 12/01/12)
21,570 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 7,935,603
Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured
3,560 South Carolina Public Service Authority, Revenue Refunding Bonds, 7/13 at 100.00 AAA 3,779,723
Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/20 -
AMBAC Insured
665 Three Rivers Solid Waste Authority, South Carolina, Solid Waste 7/07 at 102.00 AAA 678,945
Disposal Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27
- MBIA Insured
11,665 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 12,601,700
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/28
------------------------------------------------------------------------------------------------------------------------------------
62,190 Total South Carolina 52,121,811
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 7/13 at 100.00 AA 5,183,500
Tennessee, Hospital Revenue Bonds, East Tennessee Children's
Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 25.3% (16.0% OF TOTAL INVESTMENTS)
2,500 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 2,432,825
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
12,250 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue 11/09 at 100.00 AAA 12,881,978
Refunding Bonds, Series 1999, 5.800%, 11/15/29 (Pre-refunded
11/15/09) - AMBAC Insured
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Baa2 11,600,754
Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%,
5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax)
Brownsville Independent School District, Cameron County, Texas,
General Obligation Bonds, Series 1999:
5,015 5.625%, 8/15/25 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 5,226,633
8,825 5.625%, 8/15/29 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 9,197,415
1,000 Cedar Hill Independent School District, Dallas County, Texas, No Opt. Call AAA 327,710
General Obligation Bonds, Series 2002, 0.000%, 8/15/32 - FGIC
Insured
15,000 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 AAA 15,535,200
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45
- FGIC Insured
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
585 5.400%, 2/15/18 2/10 at 100.00 AAA 610,594
340 5.650%, 2/15/19 2/10 at 100.00 AAA 357,180
235 5.700%, 2/15/20 2/10 at 100.00 AAA 247,182
270 5.700%, 2/15/21 2/10 at 100.00 AAA 283,997
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
16,740 5.400%, 2/15/18 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 17,489,450
9,660 5.650%, 2/15/19 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 10,155,944
6,645 5.700%, 2/15/20 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 6,994,926
7,750 5.700%, 2/15/21 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 8,158,115
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,500 Comal Independent School District, Comal, Bexar, Guadalupe, Hays, No Opt. Call Aaa $ 1,269,200
and Kendall Counties, Texas, General Obligation Bonds, Series
2005A, 0.000%, 2/01/23
6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/09 at 101.00 CCC+ 6,215,640
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
11,750 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC+ 11,796,295
Corporation, Texas, Revenue Refunding Bonds, American Airlines
Inc., Series 2000C, 6.150%, 5/01/29 (Mandatory put 11/01/07)
(Alternative Minimum Tax)
Ennis Independent School District, Ellis County, Texas, General
Obligation Bonds, Series 2006:
3,950 0.000%, 8/15/30 8/16 at 49.21 Aaa 1,257,680
4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,210,440
1,440 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call AAA 470,981
Convention and Entertainment Project, Series 2001B, 0.000%,
9/01/32 - AMBAC Insured
1,250 Houston, Texas, Junior Lien Water and Sewerage System Revenue 12/11 at 100.00 AAA 1,311,200
Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - FSA Insured
21,500 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 22,521,680
Series 2000B, 5.500%, 7/01/30 - FSA Insured
9,350 Leander Independent School District, Williamson and Travis 8/15 at 39.49 AAA 2,524,500
Counties, Texas, General Obligation Bonds, Series 2005, 0.000%,
8/15/32 - FGIC Insured
6,000 Leander Independent School District, Williamson and Travis 8/14 at 35.27 AAA 1,514,820
Counties, Texas, General Obligation Bonds, Series 2006, 0.000%,
8/15/33
15,000 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,700,200
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded 8/15/09)
5,000 White Settlement Independent School District, Tarrant County, 8/15 at 36.81 AAA 1,257,150
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34
3,970 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 4,170,366
Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/21
(Pre-refunded 8/01/11) - AMBAC Insured
Wylie Independent School District, Taylor County, Texas, General
Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/23 8/15 at 67.10 AAA 1,395,240
2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 876,760
------------------------------------------------------------------------------------------------------------------------------------
194,780 Total Texas 174,992,055
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 17.7% (11.2% OF TOTAL INVESTMENTS)
5,500 Clark County Public Utility District 1, Washington, Generating 1/11 at 100.00 AAA 5,685,185
System Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 -
FSA Insured
2,755 Cowlitz County, Washington, Special Sewerage Revenue Refunding No Opt. Call AAA 3,067,748
Bonds, CSOB Wastewater Treatment Facilities, Series 2002,
5.500%, 11/01/16 - FGIC Insured
10,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/11 at 101.00 AAA 10,748,700
Nuclear Project 3, Series 2001A, 5.500%, 7/01/17 - FSA Insured
2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 5.000%, 1/12 at 100.00 AAA 2,606,475
1/01/23 - FGIC Insured
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 5.625%, 8/10 at 100.00 AAA 35,409,645
2/01/30 (Pre-refunded 8/01/10) - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 5.625%, 8/10 at 100.00 AAA 7,285,407
2/01/24 - MBIA Insured (Alternative Minimum Tax)
Seattle, Washington, General Obligation Refunding and Improvement
Bonds, Series 2002:
6,165 4.400%, 12/01/19 12/12 at 100.00 AAA 6,264,318
6,445 4.500%, 12/01/20 12/12 at 100.00 AAA 6,561,074
3,000 Spokane County School District 81, Spokane, Washington, General 6/15 at 100.00 AAA 2,900,130
Obligation Bonds, Series 2005, 5.000%, 6/01/24 - MBIA Insured
6,630 Tacoma, Washington, Electric System Revenue Refunding Bonds, 1/11 at 101.00 AAA 7,153,505
Series 2001A, 5.750%, 1/01/17 (Pre-refunded 1/01/11) - FSA
Insured
3,520 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 Aaa 3,701,210
Children's Hospital and Regional Medical Center, Series 2001,
5.000%, 10/01/21 (Pre-refunded 10/01/11) - AMBAC Insured
45
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 7,890 Washington State Higher Education Facilities Authority, Revenue 11/09 at 101.00 AA (4) $ 8,385,571
Bonds, Pacific Lutheran University, Series 1999, 5.950%,
11/01/29 (Pre-refunded 11/01/09) - RAAI Insured
11,955 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 13,165,563
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/12 at 100.00 AAA 9,447,840
Series 2002C, 5.000%, 1/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
115,800 Total Washington 122,382,371
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,995 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 4,282,880
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/27
1,755 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 1,747,647
Bonds, Divine Savior Healthcare, Series 2006, 4.750%, 5/01/25
1,250 Wisconsin Health and Educational Facilities Authority, Revenue 3/08 at 101.00 N/R 1,264,713
Bonds, United Lutheran Program for the Aging Inc., Series 1998,
5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Wisconsin 7,295,240
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,800 Jackson National Rural Utilities Cooperative Financing 5/07 at 101.00 A 2,831,360
Corporation, Wyoming, Guaranteed Gas Supply Revenue Bonds,
Lower Valley Power and Light Inc., Series 1997B, 5.875%,
5/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,248,695 Total Investments (cost $1,025,584,256) - 158.3% 1,096,196,690
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.3)% (36,660,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 12,992,962
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.9)% (380,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 692,529,652
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46
Nuveen Dividend Advantage Municipal Fund (NAD)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102.00 A- $ 1,581,105
Series 2000, 5.750%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
750 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 12/14 at 100.00 AAA 801,938
Series 2005A, 5.250%, 12/01/34 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 3.8% (2.5% OF TOTAL INVESTMENTS)
1,535 Alameda Corridor Transportation Authority, California, Senior No Opt. Call AAA 395,278
Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 - MBIA
Insured
5,500 Anaheim Public Finance Authority, California, Subordinate Lease No Opt. Call AAA 2,137,080
Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%,
9/01/28 - FSA Insured
200 California, General Obligation Bonds, Series 1997, 5.000%, 10/07 at 101.00 AAA 203,026
10/01/18 - AMBAC Insured
California, General Obligation Bonds, Series 1997:
2,195 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,228,781
210 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 213,232
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 5,260,400
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
5,000 5.000%, 6/01/33 6/17 at 100.00 BBB 4,988,950
1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 1,003,080
3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,519,455
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
0.000%, 6/01/26 - FSA Insured
17,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 5,048,660
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
41,140 Total California 22,997,942
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.4% (1.6% OF TOTAL INVESTMENTS)
3,205 Denver City and County, Colorado, Airport Special Facilities 1/09 at 101.00 AAA 3,333,617
Revenue Bonds, Rental Car Projects, Series 1999A, 6.000%,
1/01/12 - MBIA Insured (Alternative Minimum Tax)
2,950 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 AAA 3,171,368
Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/22
(Pre-refunded 12/01/13) - XLCA Insured
1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue Bonds, 10/07 at 102.00 AAA 1,504,721
Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
8,515 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 3,826,641
Series 1997B, 0.000%, 9/01/25 - MBIA Insured
12,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/26 at 54.77 AAA 2,793,625
Series 2006A, 0.000%, 9/01/38 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,645 Total Colorado 14,629,972
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,700 Connecticut Development Authority, Health Facilities Revenue 8/07 at 100.00 N/R 2,710,233
Refunding Bonds, Alzheimer's Resource Center of Connecticut
Inc., Series 1994A, 7.125%, 8/15/14
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 9.2% (6.1% OF TOTAL INVESTMENTS)
1,630 Florida Housing Finance Agency, Housing Revenue Bonds, Mar Lago 12/07 at 102.00 AAA 1,673,537
Village Apartments, Series 1997F, 5.800%, 12/01/17 - AMBAC
Insured (Alternative Minimum Tax)
15,000 Florida State Board of Education, Public Education Capital Outlay 6/15 at 101.00 AAA 15,000,600
Bonds, Series 2005E, 4.500%, 6/01/35
47
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 14,350 JEA St. John's River Power Park System, Florida, Revenue Refunding 10/11 at 100.00 Aa2 $ 15,196,507
Bonds, Issue 2, Series 2002-17, 5.250%, 10/01/13
2,500 Marion County Hospital District, Florida, Revenue Bonds, Munroe 10/17 at 100.00 A2 2,547,700
Regional Medical Center, Series 2007, 5.000%, 10/01/34 (WI/DD,
Settling 5/09/07)
13,625 Martin County Industrial Development Authority, Florida, 6/07 at 100.00 BB+ 13,763,430
Industrial Development Revenue Bonds, Indiantown Cogeneration
LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
7,370 South Miami Florida Health Facilities Authority, Hospital Revenue, 8/17 at 100.00 AA- 7,569,432
Baptist Health System Obligation Group, Series 2007, 5.000%,
8/15/42 (WI/DD, Settling 5/16/07)
------------------------------------------------------------------------------------------------------------------------------------
54,475 Total Florida 55,751,206
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.3% (0.9% OF TOTAL INVESTMENTS)
4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/10 at 101.00 AA (4) 4,286,440
Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded 4/01/10)
880 Gainesville and Hall County Hospital Authority, Georgia, Revenue 5/09 at 101.00 AAA 914,434
Anticipation Certificates, Northeast Georgia Health Services
Inc., Series 1999, 5.500%, 5/15/29 - MBIA Insured
2,620 Gainesville and Hall County Hospital Authority, Georgia, Revenue 5/09 at 101.00 AAA 2,737,507
Anticipation Certificates, Northeast Georgia Health Services
Inc., Series 1999, 5.500%, 5/15/29 (Pre-refunded 5/15/09) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,500 Total Georgia 7,938,381
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
210 Idaho Housing and Finance Association, Single Family Mortgage 7/09 at 101.00 Aa2 213,093
Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax)
255 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 260,689
Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax)
400 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 406,620
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
865 Total Idaho 880,402
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 34.5% (22.9% OF TOTAL INVESTMENTS)
2,875 Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, 12/09 at 102.00 BBB+ 2,980,714
Series 1999, 5.750%, 12/01/12
7,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 8,569,355
Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 5.500%,
12/01/26 - FGIC Insured
Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue Bonds,
Archer Court Apartments, Series 1999A:
810 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 841,307
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,243,965
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,973,703
22,750 Chicago, Illinois, General Obligation Refunding Bonds, Emergency No Opt. Call AAA 26,475,992
Telephone System, Series 1999, 5.500%, 1/01/23 - FGIC Insured
2,620 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series No Opt. Call AAA 2,855,328
1993, 5.375%, 1/01/14 - AMBAC Insured
3,340 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 3,513,680
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
190 DuPage County Community School District 200, Wheaton, Illinois, 11/13 at 100.00 Aaa 205,004
General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - FSA
Insured
810 DuPage County Community School District 200, Wheaton, Illinois, 11/13 at 100.00 Aaa 881,240
General Obligation Bonds, Series 2003B, 5.250%, 11/01/20
(Pre-refunded 11/01/13) - FSA Insured
500 Hoffman Estates Park District, Cook County, Illinois, General 12/09 at 102.00 AAA 526,120
Obligation Bonds, Series 1999, 5.375%, 12/01/29 - MBIA Insured
3,935 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 2,897,655
Revenue Bonds, Lake County School District 116 - Round Lake,
Series 1999, 0.000%, 1/01/15 - MBIA Insured
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 24,835 Illinois Development Finance Authority, Revenue Bonds, 9/07 at 102.00 AAA $ 25,462,827
Presbyterian Home of Lake Forest, Series 1999, 5.625%, 9/01/31
- FSA Insured
5,570 Illinois Finance Authority, Revenue Bonds, University of Chicago, 7/14 at 100.00 Aa1 5,820,260
Series 2004A, 5.000%, 7/01/34
17,280 Illinois Health Facilities Authority, Converted Adjustable Rate 10/07 at 102.00 AAA 17,780,602
Revenue Bonds, Highland Park Hospital, Series 1991A, 6.000%,
10/01/15 (Pre-refunded 10/01/07) - FGIC Insured
9,880 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 10,681,762
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
5,400 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/07 at 101.00 AAA 5,461,020
University Health System, Series 1997A, 5.000%, 7/01/24 - MBIA
Insured
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 8/07 at 102.00 A 5,599,690
Lincoln Health Center, Series 1996B, 5.500%, 2/15/16
1,500 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA 1,527,360
Series 2005E, 4.800%, 1/01/36 - FGIC Insured
11,345 Lake and McHenry Counties Community Unit School District 118, 1/15 at 60.14 Aaa 4,835,466
Wauconda, Illinois, General Obligation Bonds, Series 2005B,
0.000%, 1/01/25 - FSA Insured
3,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 3,235,320
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
22,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 23,609,473
Bonds, McCormick Place Expansion Project, Series 1999A, 5.500%,
12/15/24 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series 1996A:
9,750 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 5,015,400
13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 6,387,810
Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999:
22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 26,359,389
3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,176,095
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,397,890
5.250%, 12/01/34 - FGIC Insured
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 5,102,900
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/23 - FSA Insured
4,500 Will County School District 122, New Lenox, Illinois, General No Opt. Call Aaa 2,793,555
Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
219,715 Total Illinois 208,210,882
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.7% (2.4% OF TOTAL INVESTMENTS)
8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 9,210,260
Bonds, Charity Obligated Group, Series 1999D, 5.500%, 11/15/24
(Pre-refunded 11/15/09) - MBIA Insured
8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 8,535,440
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/26 (Pre-refunded 8/15/10) - MBIA Insured
4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, Park 6/09 at 101.00 Aa3 (4) 4,396,735
Tudor Foundation Inc., Project, Series 1999, 5.700%, 6/01/24
(Pre-refunded 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
20,945 Total Indiana 22,142,435
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS)
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue 6/15 at 100.00 BBB 7,330,890
Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 10/07 at 100.50 AAA 3,820,372
1999, 4.000%, 10/01/18 - FGIC Insured
1,000 Wyandotte County-Kansas City Unified Government, Kansas, Sales Tax 12/15 at 100.00 N/R 1,042,840
Special Obligation Bonds, Redevelopment Project Area B, Series
2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
4,825 Total Kansas 4,863,212
------------------------------------------------------------------------------------------------------------------------------------
49
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.7% (1.1% OF TOTAL INVESTMENTS)
$ 3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101.00 Aa3 (4) $ 3,219,587
School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20
(Pre-refunded 2/01/10)
Kentucky Economic Development Finance Authority, Hospital System
Revenue Refunding and Improvement Bonds, Appalachian Regional
Healthcare Inc., Series 1997:
1,850 5.850%, 10/01/17 4/08 at 102.00 BB- 1,888,110
5,000 5.875%, 10/01/22 4/08 at 102.00 BB- 5,097,550
------------------------------------------------------------------------------------------------------------------------------------
9,880 Total Kentucky 10,205,247
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.9% (3.3% OF TOTAL INVESTMENTS)
2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public 5/10 at 101.50 AAA 2,397,907
Improvements, Series 2000B, 5.625%, 5/01/25 (Pre-refunded
5/01/10) - FGIC Insured
1,750 Louisiana Local Government Environmental Facilities and Community 6/12 at 105.00 Aaa 1,933,295
Development Authority, GNMA Collateralized Mortgage Revenue
Refunding Bonds, Sharlo Apartments, Series 2002A, 6.500%,
6/20/37
5,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 5,682,449
General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured
5,445 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AAA 5,356,464
2006, 4.500%, 5/01/41 - FGIC Insured (UB)
13,570 Louisiana Transportation Authority, Senior Lien Toll Road Revenue 12/10 at 38.73 AAA 4,466,023
Bonds, Series 2005B, 0.000%, 12/01/28 - AMBAC Insured
9,545 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 9,978,534
Settlement Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
37,905 Total Louisiana 29,814,672
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.7% (1.8% OF TOTAL INVESTMENTS)
1,485 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 N/R 1,507,795
Subordinate Revenue Bonds, Crosstown Center Project, Series
2002, 8.000%, 9/01/35 (Alternative Minimum Tax)
4,365 Massachusetts Health and Educational Facilities Authority, Revenue 10/15 at 100.00 AAA 4,638,031
Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19
- AGC Insured
7,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/07 at 102.00 AAA 7,155,960
BOSFUEL Corporation, Series 1997, 5.500%, 7/01/18 - MBIA
Insured (Alternative Minimum Tax)
785 Massachusetts Port Authority, Special Facilities Revenue Bonds, 9/07 at 101.00 AAA 802,105
US Airways Group Inc., Series 1996A, 5.875%, 9/01/23 - MBIA
Insured (Alternative Minimum Tax)
2,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 100.00 AAA 2,042,040
Revenue Bonds, Senior Series 1997A, 5.125%, 1/01/17 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
15,635 Total Massachusetts 16,145,931
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.6% (2.4% OF TOTAL INVESTMENTS)
2,435 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 2,581,879
Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC
Insured
15,255 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 BB- 15,265,068
Detroit Medical Center Obligated Group, Series 1998A, 5.250%,
8/15/28
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 4,120,200
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/16 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
21,690 Total Michigan 21,967,147
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
990 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101.00 AA+ 1,008,800
Series 1998H-1, 5.650%, 7/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.2% (1.5% OF TOTAL INVESTMENTS)
Kansas City Municipal Assistance Corporation, Missouri, Leasehold
Revenue Bonds, Series 2004B-1:
7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA 2,942,380
5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AAA 1,918,600
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 2,185 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA $ 2,308,911
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21 -
AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,332,356
3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 3,911,780
------------------------------------------------------------------------------------------------------------------------------------
20,040 Total Missouri 13,414,027
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.3% (0.2% OF TOTAL INVESTMENTS)
915 Montana Board of Housing, Single Family Mortgage Bonds, Series 12/09 at 100.00 AA+ 933,712
2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
1,000 Montana Higher Education Student Assistance Corporation, Student 12/09 at 100.00 A2 1,049,160
Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,915 Total Montana 1,982,872
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,300 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call AAA 1,349,855
Program, Series 1993A-5A, 6.200%, 6/01/13 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.3% (2.9% OF TOTAL INVESTMENTS)
2,115 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AAA 2,243,402
Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19
(Pre-refunded 6/01/11) - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
8,000 0.000%, 1/01/19 - AMBAC Insured No Opt. Call AAA 4,863,840
3,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 3,095,610
15,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 A 15,821,250
Catholic Healthcare West, Series 2007B, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
28,115 Total Nevada 26,024,102
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.1% (0.1% OF TOTAL INVESTMENTS)
860 New Hampshire Housing Finance Authority, Single Family Mortgage 7/07 at 100.00 Aa2 878,731
Acquisition Revenue Bonds, Series 1995D, 6.550%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.8% (3.8% OF TOTAL INVESTMENTS)
920 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 927,682
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001, 4.800%, 8/01/21 - AMBAC Insured
1,965 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 AAA 2,021,808
Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA Insured
(Alternative Minimum Tax)
4,130 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,522,763
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/13 - AMBAC Insured
4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,602,040
System Bonds, Series 1999A, 5.750%, 6/15/18
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 7,836,400
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
9,305 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 9,947,976
3,165 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,518,531
1,365 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 1,587,140
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
------------------------------------------------------------------------------------------------------------------------------------
44,850 Total New Jersey 34,964,340
------------------------------------------------------------------------------------------------------------------------------------
51
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 4,000 University of New Mexico, FHA-Insured Mortgage Hospital Revenue 7/14 at 100.00 AAA $ 4,187,280
Bonds, Series 2004, 5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.6% (9.6% OF TOTAL INVESTMENTS)
2,170 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AA 2,218,478
Bonds, Franciscan Health Partnership Obligated Group - Frances
Shervier Home and Hospital, Series 1997, 5.500%, 7/01/17 - RAAI
Insured
15 Dormitory Authority of the State of New York, Revenue Bonds, 5/07 at 101.00 AAA 15,149
Mental Health Services Facilities Improvements, Series 1996B,
5.125%, 8/15/21 - MBIA Insured
7,500 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 7,707,525
Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series
1998H, 5.300%, 8/15/21 - MBIA Insured
2,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 2,062,560
Resolution Consolidated Revenue Bonds, City University System,
Series 1997-1, 5.375%, 7/01/24 (Pre-refunded 1/01/08) - FSA
Insured
5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 5,135,300
Revenue Bonds, Series 1998A, 5.250%, 12/01/26 (Pre-refunded
6/01/08) - FSA Insured
Nassau County, New York, General Obligation Improvement Bonds,
Series 1999B:
4,005 5.250%, 6/01/19 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 4,211,298
7,005 5.250%, 6/01/21 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 7,365,828
6,000 New York City Industrial Development Agency, New York, American 8/16 at 101.00 B 7,255,620
Airlines-JFK International Airport Special Facility Revenue
Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
5,000 New York City Municipal Water Finance Authority, New York, Water 12/14 at 100.00 AAA 5,263,450
and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%,
6/15/36 - FSA Insured
8,800 New York City Sales Tax Asset Receivable Corporation, New York, 10/14 at 100.00 AAA 9,313,040
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A, 5.000%, 10/15/32 - AMBAC Insured
10,000 New York City Transitional Finance Authority, New York, Future Tax 8/09 at 101.00 AAA 10,561,600
Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded 8/15/09)
New York City, New York, General Obligation Bonds, Fiscal Series
1998F:
1,980 5.250%, 8/01/14 - AMBAC Insured 2/08 at 101.00 AAA 2,020,234
13,860 5.375%, 8/01/19 - MBIA Insured 2/08 at 101.00 AAA 14,174,622
New York City, New York, General Obligation Bonds, Fiscal Series
1998F:
20 5.250%, 8/01/14 (Pre-refunded 2/01/08) - AMBAC Insured 2/08 at 101.00 Aaa 20,438
140 5.375%, 8/01/19 (Pre-refunded 2/01/08) - MBIA Insured 2/08 at 101.00 AAA 143,192
10,000 Port Authority of New York and New Jersey, Special Project Bonds, 12/07 at 102.00 AAA 10,312,600
JFK International Air Terminal LLC, Sixth Series 1997, 5.900%,
12/01/17 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
83,495 Total New York 87,780,934
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.7% (0.4% OF TOTAL INVESTMENTS)
3,830 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 3,959,607
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0% (2.7% OF TOTAL INVESTMENTS)
2,300 Amherst Exempted Village School District, Ohio, Unlimited Tax 12/11 at 100.00 Aaa 2,439,495
General Obligation School Improvement Bonds, Series 2001,
5.125%, 12/01/21 (Pre-refunded 12/01/11) - FGIC Insured
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage 7/07 at 101.00 Aa2 3,652,048
Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A,
5.550%, 7/01/24 (Alternative Minimum Tax)
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,781,875
Initiatives, Series 2004A, 5.000%, 5/01/30
12,700 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 13,133,451
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
1,115 Warren County, Ohio, Limited Tax General Obligations, Series 12/07 at 101.00 Aa2 1,136,988
1997, 5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
23,400 Total Ohio 24,143,857
------------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aaa $ 2,501,693
Redevelopment Revenue Bonds, Series 2000A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.0% (3.3% OF TOTAL INVESTMENTS)
3,480 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 Ba3 4,102,607
Revenue Bonds, West Penn Allegheny Health System, Series 2000B,
9.250%, 11/15/22
1,425 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,481,273
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,485,900
Revenue Bonds, Series 96A, 4.650%, 10/01/31 (Alternative
Minimum Tax)
18,900 Philadelphia Airport System, Pennsylvania, Revenue Refunding 6/08 at 102.00 AAA 19,549,213
Bonds, Series 1998A, 5.500%, 6/15/18 - FGIC Insured
(Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,499,283
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,510 Total Pennsylvania 30,118,276
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.1% (1.4% OF TOTAL INVESTMENTS)
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA 12,609,500
Revenue Bonds, Series 2003, 4.500%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.2% (2.1% OF TOTAL INVESTMENTS)
2,015 Central Falls, Rhode Island, General Obligation School Bonds, 5/09 at 102.00 AA 2,139,708
Series 1999, 6.250%, 5/15/20 - RAAI Insured
3,500 Providence Redevelopment Agency, Rhode Island, Revenue Bonds, 4/10 at 101.00 Aaa 3,729,670
Public Safety and Municipal Building Projects, Series 1999A,
5.750%, 4/01/29 (Pre-refunded 4/01/10) - AMBAC Insured
12,500 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 13,371,500
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
18,015 Total Rhode Island 19,240,878
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Greenville, South Carolina, Hospital Facilities Revenue Bonds, 5/11 at 101.00 AAA 1,548,510
Series 2001, 5.000%, 5/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9% (1.3% OF TOTAL INVESTMENTS)
6,400 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 6,790,592
Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured
(Alternative Minimum Tax)
2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 2,510,263
Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured
1,910 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 1,983,401
Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C,
5.250%, 9/01/36
115 Tennessee Housing Development Agency, Homeownership Program Bonds, 7/10 at 100.00 AA 117,249
Series 2000-2B, 6.250%, 1/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,850 Total Tennessee 11,401,505
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.0% (9.9% OF TOTAL INVESTMENTS)
2,560 Brazos River Authority, Texas, Pollution Control Revenue Refunding 4/13 at 101.00 Baa2 2,926,541
Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32
(Alternative Minimum Tax)
4,675 Carrollton-Farmers Branch Independent School District, Dallas 2/09 at 100.00 AAA 4,863,169
County, Texas, Unlimited Tax School Building Bonds, Series 1999,
6.000%, 2/15/20 (Pre-refunded 2/15/09)
2,820 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 AAA 2,920,618
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45
- FGIC Insured
53
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Coppell Independent School District, Dallas County, Texas,
Unlimited Tax School Building and Refunding Bonds, Series 1999:
$ 5,130 0.000%, 8/15/20 8/09 at 52.47 AAA $ 2,442,393
7,000 0.000%, 8/15/21 8/09 at 49.48 AAA 3,134,810
7,345 0.000%, 8/15/23 8/09 at 44.01 AAA 2,925,367
7,000 0.000%, 8/15/24 8/09 at 41.50 AAA 2,629,200
7,350 0.000%, 8/15/25 8/09 at 39.14 AAA 2,602,268
7,000 0.000%, 8/15/26 8/09 at 36.91 AAA 2,336,180
820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 864,387
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
Harris County Health Facilities Development Corporation, Texas,
Revenue Bonds, Christus Health, Series 1999A:
12,240 5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 12,761,669
11,180 5.375%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 11,656,492
2,205 Harris County-Houston Sports Authority, Texas, Senior Lien No Opt. Call AAA 1,244,304
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/20 - MBIA
Insured
2,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call AAA 897,175
Convention and Entertainment Project, Series 2001B, 0.000%,
9/01/30 - AMBAC Insured
2,500 Jefferson County, Texas, Certificates of Obligation, Series 2000, 8/10 at 100.00 AAA 2,674,925
6.000%, 8/01/25 (Pre-refunded 8/01/10) - FSA Insured
2,000 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, Series 2001, 3/09 at 100.00 AAA 2,059,020
5.300%, 3/15/26 (Pre-refunded 3/15/09) - FGIC Insured
30,095 Leander Independent School District, Williamson and Travis 8/12 at 27.94 AAA 6,676,275
Counties, Texas, General Obligation Bonds, Series 2004, 0.000%,
8/15/34
9,345 Leander Independent School District, Williamson and Travis 8/15 at 37.33 AAA 2,384,751
Counties, Texas, General Obligation Bonds, Series 2005, 0.000%,
8/15/33 - FGIC Insured
33,160 Leander Independent School District, Williamson and Travis 8/14 at 26.50 AAA 6,272,214
Counties, Texas, General Obligation Bonds, Series 2006, 0.000%,
8/15/38
1,000 San Antonio, Texas, Water System Revenue Bonds, Series 2005, 5/15 at 100.00 AAA 1,022,450
4.750%, 5/15/37 - MBIA Insured
10,000 Tarrant County Health Facilities Development Corporation, Texas, 2/08 at 102.00 AAA 10,312,700
Revenue Bonds, Texas Health Resources System, Series 1997A,
5.250%, 2/15/17 - MBIA Insured
7,000 White Settlement Independent School District, Tarrant County, 8/15 at 34.92 AAA 1,668,450
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/35
Wylie Independent School District, Taylor County, Texas, General
Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/20 8/15 at 78.46 AAA 1,640,820
3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,475,190
------------------------------------------------------------------------------------------------------------------------------------
180,925 Total Texas 90,391,368
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series
1999C-2, Class II:
360 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 AAA 365,159
120 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 124,631
100 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/09 at 101.00 AA 101,554
1999D, 5.850%, 7/01/21 (Alternative Minimum Tax)
40 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/09 at 101.50 Aa2 40,810
1999F, 6.300%, 7/01/21 (Alternative Minimum Tax)
1,020 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/10 at 100.00 AA- 1,042,430
2000F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,640 Total Utah 1,674,584
------------------------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 3,395 Virginia Small Business Financing Authority, Industrial 11/09 at 102.00 N/R $ 2,371,883
Development Water Revenue Bonds, S.I.L. Clean Water, LLC
Project, Series 1999, 7.250%, 11/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.5% (7.6% OF TOTAL INVESTMENTS)
4,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/13 at 100.00 AAA 4,371,760
Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 - XLCA Insured
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999B:
1,755 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 1,864,530
2,590 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 2,751,642
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999C:
875 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 929,609
1,260 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 1,338,637
9,760 Tacoma, Washington, Electric System Revenue Refunding Bonds, 1/11 at 101.00 AAA 10,489,170
Series 2001A, 5.625%, 1/01/21 (Pre-refunded 1/01/11) - FSA
Insured
4,800 Washington Public Power Supply System, Revenue Refunding Bonds, 7/07 at 102.00 AAA 4,907,136
Nuclear Project 3, Series 1997A, 5.250%, 7/01/16 (Pre-refunded
7/01/07) - FSA Insured
7,145 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 7,868,503
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
11,605 Washington, Certificates of Participation, Washington Convention 7/09 at 100.00 AAA 11,973,575
and Trade Center, Series 1999, 5.250%, 7/01/16 - MBIA Insured
3,350 Washington, General Obligation Compound Interest Bonds, Series No Opt. Call AAA 2,154,519
1999S-2, 0.000%, 1/01/18 - FSA Insured
Washington, General Obligation Compound Interest Bonds, Series
1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call Aa1 10,257,474
18,470 0.000%, 1/01/21 No Opt. Call Aa1 10,229,055
------------------------------------------------------------------------------------------------------------------------------------
83,260 Total Washington 69,135,610
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.9% (4.5% OF TOTAL INVESTMENTS)
650 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 697,424
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.000%,
6/01/17
1,690 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 1,826,806
5.000%, 11/01/29 (Pre-refunded 11/01/14) - FSA Insured
560 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 589,865
5.000%, 11/01/29 - FSA Insured
3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding 12/08 at 102.00 AAA 3,984,079
Bonds, Dairyland Power Cooperative, Series 1997C, 5.550%,
2/01/15 - AMBAC Insured
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, FH Healthcare Development Inc., Series 1999:
8,375 6.250%, 11/15/20 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 8,961,501
5,000 6.250%, 11/15/28 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 5,350,150
4,180 Wisconsin Health and Educational Facilities Authority, Revenue 5/09 at 101.00 A 4,312,966
Bonds, Kenosha Hospital and Medical Center Inc., Series 1999,
5.625%, 5/15/29
55
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 12,700 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101.00 Aaa $ 13,237,210
Bonds, Mercy Health System Corporation, Series 1999, 5.500%,
8/15/25 - AMBAC Insured
2,200 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 2,250,864
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
39,165 Total Wisconsin 41,210,865
------------------------------------------------------------------------------------------------------------------------------------
$ 1,070,080 Total Investments (cost $850,188,531) - 150.9% 909,870,672
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.3)% (13,630,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 1,870,874
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.9)% (295,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 603,111,546
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
56
Nuveen Dividend Advantage Municipal Fund 2 (NXZ)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.9% OF TOTAL INVESTMENTS)
$ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/11 at 101.00 A2 (4) $ 20,044,194
2001A, 5.750%, 6/01/31 (Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,955 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/11 at 100.00 AAA 3,152,010
Settlement Asset-Backed Bonds, Series 2001, 5.500%, 6/01/29
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,120 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 3,257,374
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,540 Arkansas Development Finance Authority, Single Family Mortgage 1/12 at 100.00 AAA 1,584,290
Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series
2002C, 5.400%, 1/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.9% (4.6% OF TOTAL INVESTMENTS)
6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,332,340
Stanford University, Series 2001Q, 5.250%, 12/01/32
11,200 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/28 8/13 at 100.00 A+ 11,963,840
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,003,080
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,804,850
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
6,000 Los Angeles Regional Airports Improvement Corporation, California, 12/12 at 102.00 B 6,812,340
Sublease Revenue Bonds, Los Angeles International Airport,
American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%,
12/01/24 (Alternative Minimum Tax)
150 Yuba County Water Agency, California, Yuba River Development 9/07 at 100.00 Baa3 149,993
Revenue Bonds, Pacific Gas and Electric Company, Series 1966A,
4.000%, 3/01/16
------------------------------------------------------------------------------------------------------------------------------------
29,350 Total California 32,066,443
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.1% (4.8% OF TOTAL INVESTMENTS)
2,730 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 AAA 3,098,195
School Revenue Bonds, Peak-to-Peak Charter School, Series 2001,
7.500%, 8/15/21 (Pre-refunded 8/15/11)
Denver City and County, Colorado, Airport Revenue Bonds, Series
2006:
1,790 6.601%, 11/15/23 - FGIC Insured (IF) 11/16 at 100.00 AAA 2,135,595
3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 AAA 3,515,094
1,445 6.601%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 AAA 1,723,986
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 AAA 2,770,200
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA
Insured
1,280 Eagle County Air Terminal Corporation, Colorado, Airport Terminal 5/11 at 101.00 N/R 1,385,370
Revenue Bonds, Series 2001, 7.125%, 5/01/31 (Alternative Minimum
Tax)
755 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 805,698
Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured
5,000 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 5,292,900
Bonds, Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured
Northwest Parkway Public Highway Authority, Colorado, Senior Lien
Revenue Bonds, Series 2001B:
22,000 0.000%, 6/15/28 - FSA Insured 6/11 at 35.65 AAA 6,548,960
17,650 0.000%, 6/15/29 - AMBAC Insured 6/11 at 33.45 AAA 4,930,351
57
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment 6/14 at 101.00 N/R $ 1,112,320
Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
66,950 Total Colorado 33,318,669
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,075 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 1,153,593
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
5,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 4,967,600
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%,
10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,075 Total District of Columbia 6,121,193
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.9% (3.3% OF TOTAL INVESTMENTS)
15,000 Jacksonville, Florida, Transportation Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 15,795,600
5.250%, 10/01/29 - MBIA Insured
4,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 4,254,120
Revenue Refunding Bonds, Miami Children's Hospital, Series
2001A, 5.125%, 8/15/26 (Pre-refunded 8/15/11) - AMBAC Insured
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 3,167,520
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,000 Total Florida 23,217,240
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.2% (1.5% OF TOTAL INVESTMENTS)
Honolulu Board of Water Supply, Hawaii, Water System Revenue
Bonds, Series 2001:
3,000 5.250%, 7/01/26 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 3,184,530
6,725 5.250%, 7/01/31 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 7,138,655
------------------------------------------------------------------------------------------------------------------------------------
9,725 Total Hawaii 10,323,185
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.0% (7.3% OF TOTAL INVESTMENTS)
3,620 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 A+ 3,754,411
Revenue Bonds, Stone Terrace Apartments, Series 2001A, 5.750%,
12/20/42 (Alternative Minimum Tax)
1,085 Chicago, Illinois, FNMA/GNMA Collateralized Single Family Mortgage 4/11 at 105.00 AAA 1,089,232
Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative
Minimum Tax)
14,920 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.250%, 1/11 at 101.00 AAA 15,658,540
1/01/33 - MBIA Insured
350 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.250%, 1/11 at 101.00 AAA 371,683
1/01/33 (Pre-refunded 1/01/11) - MBIA Insured
285 Chicago, Illinois, General Obligation Refunding Bonds, Series 7/07 at 101.00 AAA 287,157
1996B, 5.125%, 1/01/25 - FGIC Insured
3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago 12/12 at 100.00 BBB (4) 3,576,355
Charter School Foundation, Series 2002A, 6.250%, 12/01/32
(Pre-refunded 12/01/12)
910 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 AAA 965,656
Wesleyan University, Series 2001, 5.500%, 9/01/32 - AMBAC
Insured
4,090 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 Aaa 4,384,766
Wesleyan University, Series 2001, 5.500%, 9/01/32 (Pre-refunded
9/01/11) - AMBAC Insured
3,100 Illinois Development Finance Authority, Revenue Bonds, Midwestern 5/11 at 101.00 A- (4) 3,389,013
University, Series 2001B, 6.000%, 5/15/31 (Pre-refunded 5/15/11)
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 5,310,500
Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34
(Pre-refunded 2/15/11) - FSA Insured
2,500 Illinois Housing Development Authority, Homeowner Mortgage 2/16 at 100.00 AA 2,548,525
Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative
Minimum Tax)
2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/15/16 6/11 at 100.00 AAA 2,432,476
4,980 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/07 at 101.00 AAA 5,045,935
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 5.250%, 6/15/27 - AMBAC Insured
1,000 Montgomery, Illinois, Lakewood Creek Project Special Assessment 3/16 at 100.00 AA 1,002,310
Bonds, Series 2007, 4.700%, 3/01/30 - RAAI Insured
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 3,360 Northfield Township High School District Number 225, Cook County, 12/16 at 69.01 AAA $ 1,485,859
Illinois, Glenbrook, General Obligation School Bonds, Series
2007B, 0.000%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
50,655 Total Illinois 51,302,418
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.6% (3.1% OF TOTAL INVESTMENTS)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A- 2,027,920
Bonds, Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,861,300
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 6/13 at 100.00 AAA 4,194,240
Series 2003A, 5.000%, 6/01/23 - FSA Insured
6,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 6/13 at 100.00 AAA 6,419,700
Series 2003A, 5.000%, 6/01/24 (Pre-refunded 6/01/13) - FSA
Insured
6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 6,338,937
Madison Center Inc., Series 1999, 5.800%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
20,600 Total Indiana 21,842,097
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.2% OF TOTAL INVESTMENTS)
1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 A (4) 1,083,800
Revenue Bonds, Wartburg College, Series 2002, 5.500%, 10/01/28
(Pre-refunded 10/01/12) - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.9% (2.6% OF TOTAL INVESTMENTS)
17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 18,074,570
Improvement Bonds, Via Christi Health System Inc., Series
2001-III, 5.625%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.1% (3.4% OF TOTAL INVESTMENTS)
3,960 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AAA 3,895,610
2006, 4.500%, 5/01/41 - FGIC Insured (UB)
18,825 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 20,104,158
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
22,785 Total Louisiana 23,999,768
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.0% (2.7% OF TOTAL INVESTMENTS)
2,875 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/07 at 102.00 AAA 2,940,493
BOSFUEL Corporation, Series 1997, 5.750%, 7/01/39 - MBIA
Insured (Alternative Minimum Tax)
15,585 Massachusetts Turnpike Authority, Metropolitan Highway System 7/07 at 102.00 AAA 15,818,307
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
18,460 Total Massachusetts 18,758,800
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 14.1% (9.4% OF TOTAL INVESTMENTS)
Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds,
Series 2001A:
20,000 5.500%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 21,569,799
15,390 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 16,293,855
14,610 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 15,491,275
4,000 Michigan Municipal Bond Authority, Public School Academy Revenue 10/09 at 102.00 Ba1 4,237,880
Bonds, Detroit Academy of Arts and Sciences Charter School,
Series 2001A, 8.000%, 10/01/31
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 2,004,560
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/07 at 100.00 BB- 2,001,280
4,000 6.500%, 8/15/18 8/07 at 100.00 BB- 4,003,040
------------------------------------------------------------------------------------------------------------------------------------
62,000 Total Michigan 65,601,689
------------------------------------------------------------------------------------------------------------------------------------
59
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.2% (2.1% OF TOTAL INVESTMENTS)
$ 14,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA $ 14,744,800
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32
(Pre-refunded 1/01/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.8% (3.2% OF TOTAL INVESTMENTS)
21,000 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 22,383,479
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28
(Pre-refunded 6/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,600 Montana Board of Housing, Single Family Program Bonds, Series 12/10 at 100.00 AA+ 2,638,324
2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.4% (4.9% OF TOTAL INVESTMENTS)
12,275 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 12,666,204
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured
3,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 3,678,220
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40
2,330 Henderson, Nevada, Healthcare Facility Revenue Bonds, Catholic 7/08 at 101.00 A (4) 2,393,842
Healthcare West, Series 1998A, 5.250%, 7/01/18 (Pre-refunded
7/01/08)
8,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 A 8,404,800
Catholic Healthcare West, Series 2007B, 5.250%, 7/01/31 (UB)
7,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 A 7,383,250
Healthcare West, Series 2007A, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
33,105 Total Nevada 34,526,316
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.1% (1.4% OF TOTAL INVESTMENTS)
8,000 New Hampshire Business Finance Authority, Pollution Control 10/08 at 102.00 Baa1 8,300,720
Remarketed Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1992A, 5.850%, 12/01/22
1,285 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100.00 Aa2 1,302,322
Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,285 Total New Hampshire 9,603,042
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.4% (1.6% OF TOTAL INVESTMENTS)
3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 4,263,664
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
415 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 443,677
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,200 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,501,950
425 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 494,165
3,085 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,503,789
------------------------------------------------------------------------------------------------------------------------------------
10,120 Total New Jersey 11,207,245
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 5.3% (3.5% OF TOTAL INVESTMENTS)
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
12,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 12,907,920
10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 11,617,128
------------------------------------------------------------------------------------------------------------------------------------
22,800 Total New Mexico 24,525,048
------------------------------------------------------------------------------------------------------------------------------------
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.6% (6.4% OF TOTAL INVESTMENTS)
$ 1,300 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 $ 1,395,329
Mount Sinai NYU Health Obligated Group, Series 2000A, 6.625%,
7/01/19
3,600 Dormitory Authority of the State of New York, Revenue Bonds, Mount 7/10 at 101.00 Baa1 (4) 3,947,976
Sinai NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19
(Pre-refunded 7/01/10)
1,980 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 1,952,775
Series 2006A, 4.500%, 2/15/47 - MBIA Insured
6,000 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- (4) 6,391,860
Revenue Bonds, Series 2001L, 5.375%, 5/01/33 (Pre-refunded
5/01/11)
12,800 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 12,834,304
Revenue Bonds, Series 2006B, 4.500%, 11/15/32 - FSA Insured (UB)
5,000 New York City Industrial Development Agency, New York, Special 8/12 at 101.00 B 5,901,100
Facilities Revenue Bonds, JFK Airport - American Airlines Inc.,
Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax)
12,000 New York City Municipal Water Finance Authority, New York, Water 6/11 at 101.00 AA+ 12,568,080
and Sewerage System Revenue Bonds, Fiscal Series 2001C, 5.125%,
6/15/33
------------------------------------------------------------------------------------------------------------------------------------
42,680 Total New York 44,991,424
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,950 North Carolina Capital Facilities Financing Agency, Revenue Bonds, 4/13 at 100.00 AAA 3,065,404
Johnson and Wales University, Series 2003A, 5.000%, 4/01/33 -
XLCA Insured
4,500 North Carolina Eastern Municipal Power Agency, Power System 1/09 at 102.00 BBB 4,698,360
Revenue Refunding Bonds, Series 1999B, 5.600%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
7,450 Total North Carolina 7,763,764
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,165 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 2,236,597
Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,845 Columbus City School District, Franklin County, Ohio, General 6/13 at 100.00 AAA 1,973,025
Obligation Bonds, Series 2003, 5.000%, 12/01/28 (Pre-refunded
6/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8% (0.5% OF TOTAL INVESTMENTS)
Oklahoma Development Finance Authority, Revenue Refunding Bonds,
Hillcrest Healthcare System, Series 1999A:
2,655 5.125%, 8/15/10 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 2,763,457
1,000 5.200%, 8/15/11 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 1,042,480
------------------------------------------------------------------------------------------------------------------------------------
3,655 Total Oklahoma 3,805,937
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.8% (2.5% OF TOTAL INVESTMENTS)
8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 AA- 8,378,800
Refunding Bonds, Legacy Health System, Series 2001, 5.250%,
5/01/21
9,000 Oregon Department of Administrative Services, Certificates of 5/11 at 101.00 AAA 9,332,100
Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Oregon 17,710,900
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.5% (2.3% OF TOTAL INVESTMENTS)
5,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 Ba3 5,904,000
Revenue Bonds, West Penn Allegheny Health System, Series 2000B,
9.250%, 11/15/30
1,605 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,668,381
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
8,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 8,637,840
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
14,605 Total Pennsylvania 16,210,221
------------------------------------------------------------------------------------------------------------------------------------
61
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 24.9% (16.6% OF TOTAL INVESTMENTS)
$ 7,500 Austin, Texas, Electric Utility System Revenue Refunding Bonds, 11/10 at 100.00 AAA $ 7,740,225
Series 2001, 5.000%, 11/15/30 - FSA Insured
Dallas-Fort Worth International Airport Public Facility
Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001:
15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,303,150
1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,783,250
6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional 9/14 at 100.00 N/R 6,613,800
Health System, Series 2004A, 7.125%, 9/01/34
10,000 Gulf Coast Industrial Development Authority, Texas, Solid Waste 4/12 at 100.00 Baa3 11,420,700
Disposal Revenue Bonds, Citgo Petroleum Corporation Project,
Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax)
3,000 Harris County Health Facilities Development Corporation, Texas, 7/09 at 101.00 AAA 3,127,860
Revenue Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24
(Pre-refunded 7/01/09) - MBIA Insured
30,980 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA 32,586,312
Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured
40,000 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 54.04 AAA 7,274,400
Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 -
MBIA Insured
Hays Consolidated Independent School District, Hays County,
Texas, General Obligation School Building Bonds, Series 2001:
10,715 0.000%, 8/15/25 (Pre-refunded 8/15/11) 8/11 at 43.18 AAA 3,927,905
12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 4,460,806
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds,
Convention and Entertainment Project, Series 2001B:
5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call AAA 1,794,350
5,540 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,898,226
5,000 Metro Health Facilities Development Corporation, Texas, Hospital 1/11 at 100.00 B1 5,185,600
Revenue Bonds, Wilson N. Jones Memorial Hospital, Series 2001,
7.250%, 1/01/31
10,500 Texas, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aa1 11,012,085
Program, Series 2001, 5.250%, 8/01/35
2,000 Tom Green County Health Facilities Development Corporation, Texas, 5/11 at 101.00 Baa3 2,163,160
Hospital Revenue Bonds, Shannon Health System Project,
Series 2001, 6.750%, 5/15/21
------------------------------------------------------------------------------------------------------------------------------------
165,925 Total Texas 116,291,829
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2% (0.2% OF TOTAL INVESTMENTS)
5,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 23.55 AAA 1,122,100
Bonds, Route 895 Connector Toll Road, Series 1998B, 0.000%,
8/15/33 (Pre-refunded 8/15/08)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.1% (3.4% OF TOTAL INVESTMENTS)
Seattle, Washington, Municipal Light and Power Revenue Refunding
and Improvement Bonds, Series 2001:
4,820 5.500%, 3/01/19 - FSA Insured 3/11 at 100.00 AAA 5,107,031
7,250 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 7,537,028
7,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 AAA 7,854,375
Sisters of Providence Health System, Series 2001A, 5.250%,
10/01/21 - MBIA Insured
965 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 1,062,716
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
2,100 Washington, Certificates of Participation, Washington Convention 7/09 at 100.00 AAA 2,161,278
and Trade Center, Series 1999, 5.125%, 7/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,635 Total Washington 23,722,428
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.1% (0.8% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,260,550
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/12 at 100.00 N/R (4) $ 1,147,020
Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26
(Pre-refunded 5/01/12)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 2,148,552
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
3,100 Total Wisconsin 3,295,572
------------------------------------------------------------------------------------------------------------------------------------
$ 756,685 Total Long-Term Investments (cost $642,887,561) - 149.4% 697,760,341
============------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,200 New York City Municipal Water Finance Authority, New York, Water VMIG-1 1,200,000
and Sewerage System Revenue Bonds, Variable Rate Demand
Obligations, Fiscal Series 1994C, 4.070%, 6/15/23 - FGIC
Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,200,000) 1,200,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $644,087,561) - 149.7% 698,960,341
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.0)% (23,365,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 13,283,664
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.5)% (222,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 466,879,005
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The
rate disclosed is that in effect at the end of the reporting period.
This rate changes periodically based on market conditions or a specified
market index.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
63
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0% (0.6% OF TOTAL INVESTMENTS)
$ 5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 AAA $ 5,996,166
Department Facilities, Series 2001, 5.250%, 10/01/26
(Pre-refunded 10/01/11) - AMBAC Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.6% (1.7% OF TOTAL INVESTMENTS)
4,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 4,051,320
Series 1998A, 5.250%, 7/01/14 - AMBAC Insured (Alternative
Minimum Tax)
12,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 12,299,000
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
16,500 Total Alaska 16,350,320
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
Sebastian County Health Facilities Board, Arkansas, Hospital
Revenue Improvement Bonds, Sparks Regional Medical Center,
Series 2001A:
1,805 5.500%, 11/01/13 11/11 at 101.00 Baa2 1,892,561
1,900 5.500%, 11/01/14 11/11 at 101.00 Baa2 1,987,457
1,745 5.250%, 11/01/21 11/11 at 101.00 Baa2 1,779,621
------------------------------------------------------------------------------------------------------------------------------------
5,450 Total Arkansas 5,659,639
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.0% (7.8% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Health Facility
Revenue Bonds, Adventist Health System/West, Series 2003A:
855 5.000%, 3/01/28 3/13 at 100.00 A 873,596
140 5.000%, 3/01/33 3/13 at 100.00 A 142,614
1,000 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 1,034,110
Sutter Health, Series 2007A, 5.000%, 11/15/42 (WI/DD, Settling
5/01/07)
10,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 11,208,600
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series
2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured
(UB)
5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 5,289,550
Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%,
8/01/31
18,850 California, General Obligation Veterans Welfare Bonds, Series 6/07 at 101.00 AAA 18,956,126
2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative Minimum
Tax)
365 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 366,124
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
Los Angeles Regional Airports Improvement Corporation, California,
Lease Revenue Refunding Bonds, LAXFUEL Corporation at Los Angeles
International Airport, Series 2001:
13,955 5.750%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 14,951,108
5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 5,224,450
1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 1,555,755
10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 10,519,400
10,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 2,969,800
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
3,000 San Mateo County Community College District, California, General No Opt. Call AAA 1,071,720
Obligation Bonds, Series 2006C, 0.000%, 9/01/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
79,665 Total California 74,162,953
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.3% (4.1% OF TOTAL INVESTMENTS)
2,250 Canterberry Crossing Metropolitan District II, Parker, Colorado, 12/12 at 100.00 N/R 2,448,698
Limited Tax General Obligation Bonds, Series 2002, 7.375%,
12/01/32
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,605 Colorado Educational and Cultural Facilities Authority, Charter 3/12 at 100.00 N/R $ 1,750,590
School Revenue Bonds, Belle Creek Education Center, Series
2002A, 7.625%, 3/15/32
3,240 Colorado Educational and Cultural Facilities Authority, Charter 3/10 at 102.00 N/R (4) 3,601,292
School Revenue Bonds, Montessori Peaks Building Foundation,
Series 2002A, 8.000%, 5/01/32 (Pre-refunded 3/01/10)
1,775 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 (4) 2,000,461
School Revenue Bonds, Weld County School District 6 - Frontier
Academy, Series 2001, 7.375%, 6/01/31 (Pre-refunded 6/01/11)
3,560 Colorado Educational and Cultural Facilities Authority, Revenue 5/16 at 102.00 N/R 3,541,168
Bonds, Montessori Peaks Academy, Series 2006, 5.400%, 5/01/26
3,380 Colorado Housing Finance Authority, Multifamily Project Bonds, 10/11 at 100.00 AAA 3,488,667
Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative Minimum
Tax)
10,100 Colorado Springs, Colorado, Utility System Revenue Refunding and 11/07 at 100.00 AA 10,175,144
Improvement Bonds, Series 1997A, 5.375%, 11/15/26
Denver City and County, Colorado, Airport Revenue Bonds, Series
2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 AAA 5,723,382
1,100 6.601%, 11/15/24 - FGIC Insured (IF) 11/16 at 100.00 AAA 1,312,377
1,445 6.601%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 AAA 1,723,986
2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 2,119,600
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC Insured
(Alternative Minimum Tax)
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment 6/14 at 101.00 N/R 1,112,320
Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
36,820 Total Colorado 38,997,685
------------------------------------------------------------------------------------------------------------------------------------
DELAWARE - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,560 Delaware Housing Authority, Multifamily Mortgage Revenue Bonds, 7/12 at 100.00 Aa3 2,635,776
Series 2001A, 5.400%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.7% (1.1% OF TOTAL INVESTMENTS)
6,000 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 6,291,180
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
1,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 980,580
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.498%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax Revenue 10/16 at 100.00 Aaa 3,270,234
Bonds, Residual Series 1730, 1731, 1736, 7.230%, 10/01/30
(WI/DD, Settling 5/03/07) - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
10,335 Total District of Columbia 10,541,994
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.0% (1.3% OF TOTAL INVESTMENTS)
2,000 Dade County, Florida, Water and Sewerage System Revenue Bonds, 10/07 at 102.00 AAA 2,052,760
Series 1997, 5.375%, 10/01/16 - FGIC Insured
Orange County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA 1,137,034
2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,253,453
4,175 Pace Property Finance Authority Inc., Florida, Utility System 9/07 at 102.00 AAA 4,278,081
Improvement and Revenue Refunding Bonds, Series 1997, 5.250%,
9/01/17 - AMBAC Insured
2,455 South Miami Florida Health Facilities Authority, Hospital Revenue, 8/17 at 100.00 AA- 2,521,432
Baptist Health System Obligation Group, Series 2007, 5.000%,
8/15/42 (WI/DD, Settling 5/16/07)
------------------------------------------------------------------------------------------------------------------------------------
11,930 Total Florida 12,242,760
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.3% (1.6% OF TOTAL INVESTMENTS)
5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 AAA 5,234,850
5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax)
2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, 12/11 at 101.00 N/R 2,990,655
Series 2001, 7.900%, 12/01/24
2,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 2,022,780
Revenue Bonds, Elderly Care, Lenbrook Square Project, Series
2006A, 5.125%, 7/01/42
3,740 Gainesville and Hall County Hospital Authority, Georgia, Revenue 5/11 at 100.00 A- 3,880,923
Anticipation Certificates, Northeast Georgia Health Services
Inc., Series 2001, 5.500%, 5/15/31
65
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA (continued)
$ 500 Gainesville Redevelopment Authority, Georgia, Educational 3/17 at 100.00 N/R $ 511,605
Facilities Revenue Bonds, Riverside Military Academy Project,
Series 2007, 5.125%, 3/01/37
------------------------------------------------------------------------------------------------------------------------------------
13,940 Total Georgia 14,640,813
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.9% (13.0% OF TOTAL INVESTMENTS)
16,000 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 AAA 17,523,360
General Obligation Bonds, Series 2006, 5.000%, 12/01/35 (UB)
285 Chicago, Illinois, General Obligation Refunding Bonds, Series 7/07 at 101.00 AAA 287,157
1996B, 5.125%, 1/01/25 - FGIC Insured
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 8,832,108
5.500%, 1/01/19 - FSA Insured (Alternative Minimum Tax)
1,750 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 7/08 at 102.00 AAA 1,807,453
1/01/28 - FGIC Insured
5,800 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 5.375%, 1/09 at 101.00 AAA 6,014,426
1/01/30 (Pre-refunded 1/01/09) - FGIC Insured
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AAA 5,179,284
Bonds, O'Hare International Airport, Series 2001A, 5.375%,
1/01/32 - AMBAC Insured (Alternative Minimum Tax)
8,610 Chicago, Illinois, Second Lien Wastewater Transmission Revenue 1/11 at 100.00 AAA 9,141,323
Bonds, Series 2001A, 5.500%, 1/01/26 (Pre-refunded 1/01/11) -
AMBAC Insured
2,220 Chicago, Illinois, Second Lien Wastewater Transmission Revenue No Opt. Call AAA 2,476,432
Bonds, Series 2001A, 5.500%, 1/01/16 - MBIA Insured
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 11/11 at 100.00 AAA 10,541,000
5.000%, 11/01/26 (Pre-refunded 11/01/11) - AMBAC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,751,580
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
2,415 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 2,543,333
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/24 - AMBAC Insured
1,100 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa2 1,175,515
Medical Center, Series 2000, 6.500%, 5/15/30
9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB 9,479,340
Retirement Communities Inc., Series 2001, 5.875%, 12/01/31
15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa2 (4) 16,305,000
University Health System, Series 2001A, 6.125%, 7/01/31
(Pre-refunded 7/01/11)
5,000 Lake County School District 38, Big Hallow, Illinois, General No Opt. Call Aaa 2,657,700
Obligation Bonds, Series 2005, 0.000%, 2/01/22 - AMBAC Insured
7,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 7,549,080
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
16,900 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 17,572,958
Bonds, McCormick Place Expansion Project, Series 1999A,
5.250%, 12/15/28 - FGIC Insured
2,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,364,120
Refunding Bonds, McCormick Place Expansion Project, Series
1998A, 5.500%, 6/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
118,070 Total Illinois 123,201,169
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.2% (3.4% OF TOTAL INVESTMENTS)
Clark-Pleasant Community School Building Corporation, Indiana,
First Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,326,786
1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,057,200
Evansville Vanderburgh Public Library Lease Corporation, Indiana,
First Mortgage Bonds, Series 2001:
2,000 5.750%, 7/15/18 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,178,700
2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,922,040
1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 AAA 1,328,200
Corporation, Indiana, First Mortgage Bonds, Series 2001,
5.125%, 1/15/23 (Pre-refunded 1/15/12) - AMBAC Insured
9,500 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 10,015,090
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
66
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 4,230 Indiana Finance Authority, Educational Facilities Revenue Bonds, 6/15 at 100.00 Aa3 $ 4,422,930
Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,928,632
Community Hospitals of Indiana, Series 2005A, 5.000%,
5/01/35 - AMBAC Insured
3,500 University of Southern Indiana, Student Fee Bonds, Series 2001H, 10/11 at 100.00 Aaa 3,667,090
5.000%, 10/01/21 - AMBAC Insured
Wayne County Jail Holding Corporation, Indiana, First Mortgage
Bonds, Series 2001:
1,150 5.625%, 7/15/18 - AMBAC Insured 1/13 at 101.00 AAA 1,262,585
1,090 5.500%, 7/15/22 - AMBAC Insured 1/13 at 101.00 AAA 1,185,408
------------------------------------------------------------------------------------------------------------------------------------
30,525 Total Indiana 32,294,661
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 5.8% (3.8% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River 5/11 at 100.00 Aaa 2,074,640
Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured
Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2001B:
28,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 29,656,479
3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,262,169
------------------------------------------------------------------------------------------------------------------------------------
33,950 Total Iowa 35,993,288
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.1% (2.1% OF TOTAL INVESTMENTS)
18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 19,510,654
Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A,
5.125%, 5/15/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.4% (2.2% OF TOTAL INVESTMENTS)
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 21,241,525
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.0% (0.7% OF TOTAL INVESTMENTS)
Maine State Housing Authority, Single Family Mortgage Purchase
Bonds, Series 2001B:
4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,723,129
1,690 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,705,835
------------------------------------------------------------------------------------------------------------------------------------
6,300 Total Maine 6,428,964
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,000 Howard County, Maryland, Retirement Community Revenue Bonds, 4/17 at 100.00 N/R 1,024,830
Vantage House, Series 2007B, 5.250%, 4/01/37
1,570 Maryland Community Development Administration, Insured 7/11 at 100.00 Aa2 1,607,916
Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001B,
5.250%, 7/01/21 (Alternative Minimum Tax)
2,000 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 2,025,000
Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%,
12/01/31
10,600 Maryland Energy Financing Administration, Revenue Bonds, AES 9/07 at 100.00 N/R 10,589,082
Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative
Minimum Tax)
555 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB+ 557,187
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
15,725 Total Maryland 15,804,015
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 BBB- 1,030,310
Cove, Series 2007, 5.250%, 10/01/26 (WI/DD, Settling 5/01/07)
5,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 AAA 5,285,150
Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 - AMBAC
Insured (Alternative Minimum Tax)
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 951,990
Series 2007, Residual Trust 7039, 5.247%, 8/01/46 - FSA
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Massachusetts 7,267,450
------------------------------------------------------------------------------------------------------------------------------------
67
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 9.2% (6.0% OF TOTAL INVESTMENTS)
$ 15,000 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA $ 18,678,600
Tax School Building and Site Improvement Bonds, Series 2001A,
6.000%, 5/01/29 - FSA Insured
11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum 7/11 at 101.00 AA (4) 11,838,640
Health, Series 2001A, 5.500%, 1/15/31 (Pre-refunded 7/15/11)
1,235 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 AA- 1,322,166
10/15/18 Program, Series 2001I, 5.500%,
1,355 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 BB- 1,359,377
Detroit Medical Center Obligated Group, Series 1998A, 5.250%,
8/15/23
3,485 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 3,688,733
Refunding Bonds, Sisters of Mercy Health Corporation, Series
1993P, 5.375%, 8/15/14 - MBIA Insured (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Sparrow Obligated Group, Series 2001:
1,400 5.500%, 11/15/21 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 1,513,540
2,500 5.625%, 11/15/31 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 2,715,700
12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 AAA 13,175,430
Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31
- MBIA Insured
2,395 Ypsilanti Community Utilities Authority, Washtenaw County, 5/11 at 100.00 AAA 2,526,438
Michigan, General Obligation Bonds, Sanitary Sewerage System 3,
Series 2001, 5.100%, 5/01/31 (Pre-refunded 5/01/11) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
51,010 Total Michigan 56,818,624
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,320 Dakota County Community Development Agency, Minnesota, GNMA 10/11 at 105.00 Aaa 2,463,144
Collateralized Multifamily Housing Revenue Bonds, Rose
Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative
Minimum Tax)
1,000 Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions 8/16 at 100.00 N/R 1,013,610
Hospital Parking Ramp Project, Series 2007-1, 5.000%, 8/01/36
------------------------------------------------------------------------------------------------------------------------------------
3,320 Total Minnesota 3,476,754
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/09 at 103.00 AAA 2,242,040
Retirement Facility Mortgage Revenue Refunding Bonds, Aldersgate
Retirement Community Inc. Project, Series 1999A, 5.450%, 5/20/34
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 Cape Girardeau County Industrial Development Authority, Missouri, 6/17 at 100.00 N/R 1,017,800
Health Facilities Revenue Bonds, Southeast Missouri Hospital
Association, Series 2007, 5.000%, 6/01/36
1,825 Fenton, Missouri, Tax Increment Refunding and Improvement Revenue 10/12 at 100.00 N/R (4) 2,038,087
Bonds, Gravois Bluffs Redevelopment Project, Series 2002,
6.125%, 10/01/21 (Pre-refunded 10/01/12)
Missouri Development Finance Board, Cultural Facilities Revenue
Bonds, Nelson Gallery Foundation, Series 2001A:
3,335 5.250%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 3,540,269
3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,726,041
3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 3,922,427
2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,154,566
------------------------------------------------------------------------------------------------------------------------------------
15,405 Total Missouri 16,399,190
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B2 5,171,500
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6% (1.1% OF TOTAL INVESTMENTS)
Nebraska Investment Finance Authority, Single Family Housing
Revenue Bonds, Series 2001D:
2,255 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,275,972
3,035 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,062,527
4,490 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 4,740,542
Revenue Bonds, Nebraska City 2, Series 2006A, 5.000%, 2/01/49
- AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
9,780 Total Nebraska 10,079,041
------------------------------------------------------------------------------------------------------------------------------------
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.7% (5.0% OF TOTAL INVESTMENTS)
$ 35,000 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, 7/10 at 100.00 AAA $ 36,881,949
Series 2000, 5.500%, 7/01/30 (Pre-refunded 7/01/10) - MBIA
Insured (5)
2,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 2,063,740
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 4,203,680
Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series
2000, 7.375%, 1/01/40
205 Nevada Housing Division, Single Family Mortgage Bonds, Senior 4/08 at 101.50 Aaa 206,189
Series 1998A-1, 5.300%, 4/01/18 (Alternative Minimum Tax)
4,290 University of Nevada, Revenue Bonds, Community College System, 1/12 at 100.00 AAA 4,575,371
Series 2001A, 5.250%, 7/01/26 (Pre-refunded 1/01/12) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
45,495 Total Nevada 47,930,929
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,000 New Hampshire Health and Education Authority, Hospital Revenue 10/11 at 101.00 Aaa 2,143,020
Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.0% (2.6% OF TOTAL INVESTMENTS)
10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 Aaa 10,568,800
Revenue Bonds, American Water Company, Series 2002A, 5.250%,
11/01/32 - AMBAC Insured (Alternative Minimum Tax)
4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,517,288
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/13 - AMBAC Insured
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 7,836,400
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
2,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,903,380
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
36,125 Total New Jersey 24,825,868
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.1% (2.7% OF TOTAL INVESTMENTS)
900 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 914,391
Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/32
1,780 East Rochester Housing Authority, New York, GNMA Secured Revenue 10/11 at 101.00 AAA 1,850,132
Bonds, Gates Senior Housing Inc., Series 2001, 5.300%, 4/20/31
5,015 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 4,946,044
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
4,155 Monroe County Airport Authority, New York, Revenue Refunding No Opt. Call AAA 4,524,712
Bonds, Greater Rochester International Airport, Series 1999,
5.750%, 1/01/13 - MBIA Insured (Alternative Minimum Tax)
7,000 New York City Industrial Development Agency, New York, American 8/16 at 101.00 B 8,464,890
Airlines-JFK International Airport Special Facility Revenue
Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
1,715 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 AAA 1,873,329
2002G, 5.625%, 8/01/20 - MBIA Insured
785 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 Aaa 859,434
2002G, 5.625%, 8/01/20 (Pre-refunded 8/01/12) - MBIA Insured
2,000 New York State Tobacco Settlement Financing Corporation, Tobacco 6/11 at 100.00 AA- 2,123,980
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
23,350 Total New York 25,556,912
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Charlotte-Mecklenburg Hospital Authority, North Carolina,
Healthcare System Revenue Bonds, DBA Carolinas Healthcare System,
Series 2005A:
1,750 4.875%, 1/15/32 1/15 at 100.00 AA 1,788,220
3,000 5.000%, 1/15/45 1/15 at 100.00 AA 3,101,520
69
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (continued)
$ 1,800 North Carolina Municipal Power Agency 1, Catawba Electric Revenue No Opt. Call A3 $ 1,941,318
Bonds, Series 2003A, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total North Carolina 6,831,058
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.2% (1.4% OF TOTAL INVESTMENTS)
2,030 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 3/08 at 101.50 AAA 2,072,346
Program Residential Mortgage Revenue Bonds, Series 1998A-1,
5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax)
7,400 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 7,652,562
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
Portage County, Ohio, General Obligation Bonds, Series 2001:
1,870 5.000%, 12/01/21 - FGIC Insured 12/11 at 100.00 AAA 1,963,163
1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AAA 1,853,934
------------------------------------------------------------------------------------------------------------------------------------
13,075 Total Ohio 13,542,005
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,500 Oklahoma Development Finance Authority, Revenue Refunding Bonds, 8/09 at 101.00 AAA 2,629,325
Hillcrest Healthcare System, Series 1999A, 5.625%, 8/15/29
(Pre-refunded 8/15/09)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5% (1.6% OF TOTAL INVESTMENTS)
4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AAA 4,967,900
Authority, Revenue Bonds, PeaceHealth Project, Series 2001,
5.250%, 11/15/21 - AMBAC Insured
10,000 Oregon Housing and Community Services Department, Multifamily 7/10 at 100.00 Aaa 10,283,100
Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,700 Total Oregon 15,251,000
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
2,000 9.250%, 11/15/22 11/10 at 102.00 Ba3 2,357,820
2,000 9.250%, 11/15/30 11/10 at 102.00 Ba3 2,361,600
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 503,655
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,500 Pennsylvania Economic Development Financing Authority, Senior 7/07 at 100.00 B+ 3,535,350
Lien Resource Recovery Revenue Bonds, Northampton Generating
Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,499,283
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,205 Total Pennsylvania 12,257,708
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
2,185 Greenville County, South Carolina, Special Source Revenue Bonds, 4/11 at 101.00 AAA 2,347,367
Road Improvement Project, Series 2001, 5.500%, 4/01/21
(Pre-refunded 4/01/11) - AMBAC Insured
6,850 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/11 at 100.00 Aaa 7,341,008
Series 2001A, 5.500%, 10/01/22 (Pre-refunded 10/01/11) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,035 Total South Carolina 9,688,375
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,680 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- 677,451
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2006, 0.000%, 1/01/41
5,210 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 5,469,562
Revenue Bonds, Series 2001A, 5.500%, 3/01/14 - FSA Insured
(Alternative Minimum Tax)
275 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 285,568
Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C,
5.250%, 9/01/36
945 Tennessee Housing Development Agency, Homeownership Program Bonds, 1/09 at 101.00 AA 962,284
Series 1998-2, 5.350%, 7/01/23 (Alternative Minimum Tax)
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 975 Tennessee Housing Development Agency, Homeownership Program Bonds, 7/11 at 100.00 AA $ 997,942
Series 2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,085 Total Tennessee 8,392,807
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.8% (11.6% OF TOTAL INVESTMENTS)
5,445 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA 5,254,479
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
1,125 Brushy Creek Municipal Utility District, Williamson County, Texas, 6/09 at 100.00 Aaa 1,149,593
Combination Unlimited Tax and Revenue Refunding Bonds, Series
2001, 5.125%, 6/01/26 - FSA Insured
Collins and Denton Counties, Frisco, Texas, General Obligation
Bonds, Series 2001:
1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AAA 1,985,674
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AAA 2,087,305
3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 4,067,140
Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35
- FGIC Insured (Alternative Minimum Tax)
5,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional 9/14 at 100.00 N/R 5,497,850
Health System, Series 2004A, 7.000%, 9/01/25
4,040 Harris County, Texas, Tax and Revenue Certificates of Obligation, 8/11 at 100.00 AA+ 4,169,482
Series 2001, 5.000%, 8/15/27
6,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 7,184,640
Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - MBIA Insured
(ETM)
7,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/08 at 101.00 AAA 7,174,300
Series 1998B, 5.250%, 7/01/14 - FGIC Insured (Alternative
Minimum Tax)
Houston, Texas, Subordinate Lien Airport System Revenue Refunding
Bonds, Series 2001A:
2,525 5.500%, 7/01/13 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 2,685,817
2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 3,102,133
4,735 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 5,005,842
General Obligation Bonds, Series 2007, Residuals 07-1001,
5.871%, 8/01/43 (IF)
Jefferson County Health Facilities Development Corporation,
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of
Southeast Texas, Series 2001:
8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 AAA 8,922,790
8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 AAA 8,966,820
10,700 Laredo Independent School District, Webb County, Texas, General 8/11 at 100.00 AAA 11,139,449
Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25
2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 2,741,175
Revenue Refunding Bonds, Houston Light and Power Company, Series
1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative Minimum Tax)
1,540 Medina Valley Independent School District, Medina County, Texas, 2/11 at 100.00 Aaa 1,623,360
General Obligation Bonds, Series 2001, 5.250%, 2/15/26
(Pre-refunded 2/15/11)
5,430 Mineral Wells Independent School District, Pale Pinto and Parker 2/08 at 100.00 Aaa 5,455,630
Counties, Texas, Unlimited School Tax Building and Refunding
Bonds, Series 1998, 4.750%, 2/15/22
2,905 North Central Texas Health Facilities Development Corporation, 2/08 at 102.00 AAA 2,990,552
Revenue Bonds, Texas Health Resources System, Series 1997B,
5.375%, 2/15/26 - MBIA Insured
95 North Central Texas Health Facilities Development Corporation, 2/08 at 102.00 Aaa 98,108
Revenue Bonds, Texas Health Resources System, Series 1997B,
5.375%, 2/15/26 (Pre-refunded 2/15/08) - MBIA Insured
3,045 Port of Houston Authority, Harris County, Texas, General 10/11 at 100.00 AAA 3,212,475
Obligation Port Improvement Bonds, Series 2001B, 5.500%,
10/01/17 - FGIC Insured (Alternative Minimum Tax)
10,665 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 10,971,512
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/37 8/15 at 31.98 AAA 1,985,069
9,110 0.000%, 8/15/40 8/15 at 27.11 AAA 1,681,433
7,110 0.000%, 8/15/44 8/15 at 21.88 AAA 1,055,764
------------------------------------------------------------------------------------------------------------------------------------
125,750 Total Texas 110,208,392
------------------------------------------------------------------------------------------------------------------------------------
71
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.8% (0.5% OF TOTAL INVESTMENTS)
Utah Housing Corporation, Single Family Mortgage Bonds, Series
2001E:
$ 1,695 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- $ 1,729,205
535 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 546,813
Utah Housing Corporation, Single Family Mortgage Bonds, Series
2001F-1:
2,175 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 2,189,660
550 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 555,627
------------------------------------------------------------------------------------------------------------------------------------
4,955 Total Utah 5,021,305
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
250 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 252,948
Residential Care Facilities Mortgage Revenue Bonds,
Westminster-Cantebury of the Blue Ridge, Series 2007, 5.000%,
1/01/31
7,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 77.58 AAA 5,174,470
Bonds, Route 895 Connector Toll Road, Series 1998B, 0.000%,
8/15/13 (Pre-refunded 8/15/08)
------------------------------------------------------------------------------------------------------------------------------------
7,250 Total Virginia 5,427,418
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 15.5% (10.1% OF TOTAL INVESTMENTS)
Bellingham Housing Authority, Washington, Housing Revenue Bonds,
Varsity Village Project, Series 2001A:
1,000 5.500%, 12/01/27 - MBIA Insured 12/11 at 100.00 Aaa 1,063,110
2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,134,520
1,500 Grays Harbor County Public Utility District 1, Washington, 1/11 at 100.00 AAA 1,573,425
Electric System Revenue Bonds, Series 2001, 5.125%, 1/01/22
(Pre-refunded 1/01/11) - AMBAC Insured
2,475 Klickitat County Public Utility District 1, Washington, Electric 12/11 at 100.00 AAA 2,611,100
Revenue Bonds, Series 2001B, 5.000%, 12/01/26 (Pre-refunded
12/01/11) - AMBAC Insured
12,955 Port of Seattle, Washington, Passenger Facility Charge Revenue 12/08 at 101.00 AAA 13,321,497
Bonds, Series 1998B, 5.300%, 12/01/16 - AMBAC Insured
(Alternative Minimum Tax)
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535 5.625%, 4/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 2,696,581
16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum Tax) 10/08 at 100.00 AAA 16,168,320
2,090 Public Utility District 1, Benton County, Washington, Electric 11/11 at 100.00 AAA 2,252,059
Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15 - FSA
Insured
5,680 Seattle, Washington, Municipal Light and Power Revenue Refunding 3/11 at 100.00 AAA 6,018,244
and Improvement Bonds, Series 2001, 5.500%, 3/01/18 - FSA
Insured
4,530 Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, 12/11 at 100.00 AAA 4,826,489
Series 2001, 5.250%, 12/01/21 (Pre-refunded 12/01/11) - AMBAC
Insured
3,720 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 Aaa 3,967,864
Children's Hospital and Regional Medical Center, Series 2001,
5.375%, 10/01/18 (Pre-refunded 10/01/11) - AMBAC Insured
Washington State Healthcare Facilities Authority, Revenue Bonds,
Good Samaritan Hospital, Series 2001:
5,480 5.500%, 10/01/21 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 AA (4) 5,912,372
25,435 5.625%, 10/01/31 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 AA (4) 27,570,267
Washington State Healthcare Facilities Authority, Revenue Bonds,
Group Health Cooperative of Puget Sound, Series 2001:
3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 AAA 3,197,230
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,098,820
------------------------------------------------------------------------------------------------------------------------------------
91,320 Total Washington 96,411,898
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.3% (2.8% OF TOTAL INVESTMENTS)
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series
2001:
3,705 5.375%, 1/01/20 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 Aaa 3,971,167
1,850 5.000%, 1/01/21 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 Aaa 1,953,397
12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds, 12/08 at 102.00 AAA 12,809,703
Dairyland Power Cooperative, Series 1997B, 5.550%, 2/01/15 -
AMBAC Insured
72
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ $ 1,005,950
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2007, 5.000%, 9/01/33 (WI/DD, Settling 5/01/07)
350 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 371,952
Bonds, Froedtert and Community Health Obligated Group, Series
2001, 5.375%, 10/01/30
3,650 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 N/R (4) 3,916,487
Bonds, Froedtert and Community Health Obligated Group, Series
2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11)
2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ 2,681,525
Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25
50 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 51,156
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
25,355 Total Wisconsin 26,761,337
------------------------------------------------------------------------------------------------------------------------------------
$ 949,235 Total Investments (cost $902,961,739) - 153.1% 950,036,338
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.0)% (30,780,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 13,215,197
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (312,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 620,471,535
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
----------------------------------------------------------------------------------------------
Merrill Lynch $26,750,000 Pay 3-Month USD-LIBOR 5.184% Semi-Annually
==============================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (6) DATE (DEPRECIATION)
--------------------------------------------------------
Merrill Lynch 10/30/07 10/30/16 $106,542
========================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
FUTURES CONTRACTS OUTSTANDING AT APRIL 30, 2007:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
COUNTERPARTY POSITION CONTRACTS EXPIRATION APRIL 30, 2007 (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------
U.S. 3-Year Treasury Bond Long 159 6/07 $17,768,250 $25,609
==============================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Portion of the investment, with an aggregate market value of $179,141,
has been pledged to collateralize the net payment obligations under
forward swap contract.
(6) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
73
Statement of
ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
PERFORMANCE MUNICIPAL MARKET
PLUS ADVANTAGE OPPORTUNITY
(NPP) (NMA) (NMO)
------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,302,301,741,
$1,004,680,494, $1,025,584,256, $850,188,531,
$644,087,561, $902,961,739,
respectively) $1,397,939,647 $1,075,923,683 $1,096,196,690
Cash -- -- --
Receivables:
Interest 20,183,764 16,604,749 15,971,921
Investments sold 6,182,000 2,646,836 170,000
Variation margin on futures contracts -- -- --
Unrealized appreciation on forward swaps -- -- --
Other assets 122,474 83,404 84,826
------------------------------------------------------------------------------------------------------------------
Total assets 1,424,427,885 1,095,258,672 1,112,423,437
------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 4,534,538 5,977,364 2,291,689
Floating rate obligations 6,665,000 36,290,000 36,660,000
Payable for investments purchased -- 17,318,032 --
Accrued expenses:
Management fees 694,916 514,504 532,582
Other 293,736 217,398 220,144
Preferred share dividends payable 223,920 170,913 189,370
------------------------------------------------------------------------------------------------------------------
Total liabilities 12,412,110 60,488,211 39,893,785
------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 479,000,000 358,000,000 380,000,000
------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 933,015,775 $ 676,770,461 $ 692,529,652
==================================================================================================================
Common shares outstanding 59,914,073 43,176,828 45,557,788
==================================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 15.57 $ 15.67 $ 15.20
==================================================================================================================
NET ASSETS APPLICABLE TO
COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 599,141 $ 431,768 $ 455,578
Paid-in surplus 836,423,631 603,443,947 635,757,048
Undistributed (Over-distribution of) net
investment income 207,135 1,399,715 481,125
Accumulated net realized gain (loss)
from investments and
derivative transactions 147,962 251,842 (14,776,533)
Net unrealized appreciation (depreciation)
of investments and derivative
transactions 95,637,906 71,243,189 70,612,434
------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 933,015,775 $ 676,770,461 $ 692,529,652
==================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
==================================================================================================================
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,302,301,741,
$1,004,680,494, $1,025,584,256, $850,188,531,
$644,087,561, $902,961,739,
respectively) $ 909,870,672 $ 698,960,341 $ 950,036,338
Cash -- -- 2,010,519
Receivables:
Interest 12,442,983 11,217,603 15,049,199
Investments sold 1,460,000 9,676,500 5,066,054
Variation margin on futures contracts -- -- 134,156
Unrealized appreciation on forward swaps -- -- 106,542
Other assets 72,931 38,926 74,255
-----------------------------------------------------------------------------------------------------------------
Total assets 923,846,586 719,893,370 972,477,063
-----------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,305,209 7,194,474 --
Floating rate obligations 13,630,000 23,365,000 30,780,000
Payable for investments purchased 10,071,929 -- 8,715,237
Accrued expenses:
Management fees 337,373 232,780 273,386
Other 224,044 111,929 126,581
Preferred share dividends payable 166,485 110,182 110,324
-----------------------------------------------------------------------------------------------------------------
Total liabilities 25,735,040 31,014,365 40,005,528
-----------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 295,000,000 222,000,000 312,000,000
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 603,111,546 $ 466,879,005 $ 620,471,535
=================================================================================================================
Common shares outstanding 39,287,298 29,377,055 40,363,448
=================================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 15.35 $ 15.89 $ 15.37
=================================================================================================================
NET ASSETS APPLICABLE TO
COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 392,873 $ 293,771 $ 403,634
Paid-in surplus 558,458,540 417,695,640 573,681,457
Undistributed (Over-distribution of) net
investment income 428,824 1,485,485 20,387
Accumulated net realized gain (loss)
from investments and
derivative transactions (15,850,832) (7,468,671) (840,693)
Net unrealized appreciation (depreciation)
of investments and derivative
transactions 59,682,141 54,872,780 47,206,750
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 603,111,546 $ 466,879,005 $ 620,471,535
=================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
=================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
74
Statement of
OPERATIONS Six Months Ended April 30, 2007 (Unaudited)
PERFORMANCE MUNICIPAL MARKET
PLUS ADVANTAGE OPPORTUNITY
(NPP) (NMA) (NMO)
------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 34,839,091 $ 27,478,148 $ 28,644,361
------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,221,967 3,125,160 3,235,675
Preferred shares - auction fees 593,828 443,821 471,096
Preferred shares - dividend
disbursing agent fees 24,795 24,795 19,836
Shareholders' servicing agent fees
and expenses 73,529 45,398 47,965
Floating rate obligations interest expense
and fees 3,757 506,589 576,733
Custodian's fees and expenses 124,785 108,433 112,719
Directors'/Trustees' fees and expenses 12,337 9,122 9,371
Professional fees 27,123 22,905 25,366
Shareholders' reports - printing and
mailing expenses 73,375 52,101 58,017
Stock exchange listing fees 10,719 7,796 8,147
Investor relations expense 88,960 64,894 68,201
Other expenses 37,966 24,861 25,932
------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 5,293,141 4,435,875 4,659,058
Custodian fee credit (55,939) (61,700) (62,049)
Expense reimbursement -- -- --
------------------------------------------------------------------------------------------------------------------
Net expenses 5,237,202 4,374,175 4,597,009
------------------------------------------------------------------------------------------------------------------
Net investment income 29,601,889 23,103,973 24,047,352
------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 153,505 333,242 (3,503,072)
Net realized gain (loss) from futures -- -- --
Change in net unrealized appreciation
(depreciation) of investments (7,712,916) (7,484,592) (5,345,513)
Change in net unrealized appreciation
(depreciation) of futures -- -- --
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- --
------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (7,559,411) (7,151,350) (8,848,585)
------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (7,573,679) (6,129,088) (6,612,130)
From accumulated net realized gains (858,202) -- --
------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (8,431,881) (6,129,088) (6,612,130)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 13,610,597 $ 9,823,535 $ 8,586,637
==================================================================================================================
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 23,035,851 $ 18,737,450 $ 24,648,291
-----------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,722,177 2,096,342 2,820,513
Preferred shares - auction fees 365,720 275,220 386,795
Preferred shares - dividend
disbursing agent fees 14,877 14,877 14,877
Shareholders' servicing agent fees
and expenses 6,477 2,760 3,628
Floating rate obligations interest expense
and fees 74,730 202,925 537,823
Custodian's fees and expenses 103,492 67,769 102,513
Directors'/Trustees' fees and expenses 8,452 6,202 8,236
Professional fees 18,768 17,367 21,535
Shareholders' reports - printing and
mailing expenses 46,776 36,220 46,400
Stock exchange listing fees 7,025 1,237 1,700
Investor relations expense 55,878 42,410 57,176
Other expenses 18,774 16,040 22,513
-----------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 3,443,146 2,779,369 4,023,709
Custodian fee credit (53,317) (40,470) (31,090)
Expense reimbursement (670,821) (827,491) (1,159,243)
-----------------------------------------------------------------------------------------------------------------
Net expenses 2,719,008 1,911,408 2,833,376
-----------------------------------------------------------------------------------------------------------------
Net investment income 20,316,843 16,826,042 21,814,915
-----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 978,560 (1,539,980) (671,479)
Net realized gain (loss) from futures -- -- (38,174)
Change in net unrealized appreciation
(depreciation) of investments (7,545,992) (1,781,361) (4,047,579)
Change in net unrealized appreciation
(depreciation) of futures -- -- (104,102)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- (34,418)
-----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (6,567,432) (3,321,341) (4,895,752)
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (5,103,886) (3,851,431) (5,285,583)
From accumulated net realized gains -- -- (226,888)
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (5,103,886) (3,851,431) (5,512,471)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 8,645,525 $ 9,653,270 $ 11,406,692
=================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
75
Statement of
CHANGES IN NET ASSETS (Unaudited)
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO)
--------------------------- --------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 29,601,889 $ 59,826,874 $ 23,103,973 $ 46,635,201 $ 24,047,352 $ 46,502,877
Net realized gain (loss) from investments 153,505 3,609,041 333,242 (38,686) (3,503,072) (3,186,736)
Net realized gain (loss) from futures -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (7,712,916) 18,585,165 (7,484,592) 11,410,086 (5,345,513) 18,252,758
Change in net unrealized appreciation
(depreciation) of futures -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- -- --
Distributions to Preferred shareholders:
From net investment income (7,573,679) (14,851,985) (6,129,088) (11,096,228) (6,612,130) (11,933,888)
From accumulated net realized gains (858,202) (204,889) -- (95,203) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 13,610,597 66,964,206 9,823,535 46,815,170 8,586,637 49,635,011
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (23,051,656) (50,243,956) (18,502,996) (38,834,236) (17,873,541) (37,757,943)
From accumulated net realized gains (2,765,395) (1,042,505) -- (628,192) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (25,817,051) (51,286,461) (18,502,996) (39,462,428) (17,873,541) (37,757,943)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- -- 1,775,376 643,731 257,295 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- 1,775,376 643,731 257,295 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) net assets
applicable to Common shares (12,206,454) 15,677,745 (6,904,085) 7,996,473 (9,029,609) 11,877,068
Net assets applicable to Common
shares at the beginning of period 945,222,229 929,544,484 683,674,546 675,678,073 701,559,261 689,682,193
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $933,015,775 $945,222,229 $676,770,461 $683,674,546 $692,529,652 $701,559,261
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 207,135 $ 1,230,581 $ 1,399,715 $ 2,927,826 $ 481,125 $ 919,444
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
76
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
--------------------------- --------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,316,843 $ 40,993,576 $ 16,826,042 $ 32,992,169 $ 21,814,915 $ 43,005,594
Net realized gain (loss) from investments 978,560 4,172,514 (1,539,980) (1,053,678) (671,479) 1,509,431
Net realized gain (loss) from futures -- -- -- -- (38,174) --
Change in net unrealized appreciation
(depreciation) of investments (7,545,992) 8,567,260 (1,781,361) 10,301,195 (4,047,579) 10,632,281
Change in net unrealized appreciation
(depreciation) of futures -- -- -- -- (104,102) 129,711
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- (34,418) 140,960
Distributions to Preferred shareholders:
From net investment income (5,103,886) (9,396,656) (3,851,431) (7,047,610) (5,285,583) (9,830,888)
From accumulated net realized gains -- -- -- -- (226,888) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 8,645,525 44,336,694 9,653,270 35,192,076 11,406,692 45,587,089
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (16,158,637) (33,907,479) (13,478,052) (28,774,873) (17,471,682) (36,446,494)
From accumulated net realized gains -- -- -- -- (798,769) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (16,158,637) (33,907,479) (13,478,052) (28,774,873) (18,270,451) (36,446,494)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 308,797 -- 514,496 909,885 499,783 337,160
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 308,797 -- 514,496 909,885 499,783 337,160
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (7,204,315) 10,429,215 (3,310,286) 7,327,088 (6,363,976) 9,477,755
Net assets applicable to Common
shares at the beginning of period 610,315,861 599,886,646 470,189,291 462,862,203 626,835,511 617,357,756
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $603,111,546 $610,315,861 $466,879,005 $470,189,291 $620,471,535 $626,835,511
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of period $ 428,824 $ 1,374,504 $ 1,485,485 $ 1,988,926 $ 20,387 $ 962,737
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
77
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Performance Plus Municipal Fund, Inc.
(NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market
Opportunity Fund, Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD),
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) and Nuveen Dividend Advantage
Municipal Fund 3 (NZF). Performance Plus (NPP), Municipal Advantage (NMA),
Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York
Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF)
are traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. Futures
contracts are valued using the closing settlement price, or, in the absence of
such a price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for a municipal bond, forward swap contract or futures
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2007, Municipal
Advantage (NMA), Dividend Advantage (NAD) and Dividend Advantage 3 (NZF) had
outstanding when-issued/delayed delivery purchase commitments of $17,318,032,
$10,071,929, and $8,715,237, respectively. There were no such outstanding
purchase commitments in either Performance Plus (NPP), Market Opportunity (NMO)
or Dividend Advantage 2 (NXZ) at April 30, 2007.
INVESTMENT INCOME
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
FEDERAL INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
78
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
PREFERRED SHARES
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M 4,000 3,000 4,000 4,000 3,000 --
Series T 4,000 3,000 4,000 4,000 3,000 --
Series W 4,000 3,000 3,200 -- -- 4,160
Series TH 3,160 2,320 -- 3,800 -- 4,160
Series F 4,000 3,000 4,000 -- 2,880 4,160
---------------------------------------------------------------------------------------------------------
Total 19,160 14,320 15,200 11,800 8,880 12,480
=========================================================================================================
INVERSE FLOATING RATE SECURITIES
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
During the six months ended April 30, 2007, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2007, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $184,116 $26,452,901 $30,179,116 $3,886,188 $10,615,387 $28,114,420
Average annual interest rate and fees 4.11% 3.86% 3.85% 3.88% 3.85% 3.86%
=========================================================================================================================
79
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
FORWARD SWAP TRANSACTIONS
The Funds are authorized to invest in certain derivative financial instruments.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
FUTURES CONTRACTS
The Funds are authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is noted in the
Statement of Assets and Liabilities. Additionally, the Statement of Assets and
Liabilities reflects a receivable or payable for the variation margin when
applicable.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
INDEMNIFICATIONS
Under the Funds' organizational documents, their Officers and Director/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
80
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
MUNICIPAL MARKET
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO)
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
---------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- 110,925 40,309 16,916 --
===============================================================================================================
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE (NAD) ADVANTAGE 2 (NXZ) ADVANTAGE 3 (NZF)
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
---------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 19,807 -- 31,023 55,164 31,607 21,722
===============================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2007, were as
follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------
Purchases $24,019,379 $62,792,969 $31,586,262 $38,728,509 $39,720,239 $56,708,135
Sales and maturities 28,094,680 14,536,000 26,793,287 17,080,850 25,267,346 42,485,117
=======================================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At April 30, 2007, the cost of investments was as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------
Cost of investments $1,294,828,878 $966,808,482 $988,622,888 $835,229,954 $622,273,494 $871,904,950
=======================================================================================================================
81
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2007, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $96,957,012 $72,963,682 $71,194,926 $62,181,459 $55,748,110 $47,855,501
Depreciation (494,261) (128,854) (264,003) (1,208,091) (2,403,221) (464,429)
-----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $96,462,751 $72,834,828 $70,930,923 $60,973,368 $53,344,889 $47,391,072
=======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2006, the Funds' last tax year
end, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt
income * $ 4,425,692 $ 4,620,835 $ 3,659,265 $ 2,916,963 $ 3,653,096 $ 3,738,588
Undistributed net ordinary
income ** 58,535 26,427 77,487 118,459 23,339 --
Undistributed net long-term
capital gains 3,618,054 -- -- -- -- 1,024,327
=======================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 2, 2006, paid on November 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt $65,689,928 $50,218,101 $49,767,991 $43,683,872 $36,096,315 $46,380,901
income
Distributions from net ordinary
income ** 6,686 154,403 196,171 -- -- --
Distributions from net long-term
capital gains 1,247,394 593,511 -- -- -- --
=======================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
82
At October 31, 2006, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MUNICIPAL MARKET DIVIDEND DIVIDEND
ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2
(NMA) (NMO) (NAD) (NXZ)
----------------------------------------------------------------------------------------------
Expiration year:
2008 $ -- $ -- $12,130,329 $ --
2009 -- -- -- --
2010 -- -- -- --
2011 -- 7,158,110 4,594,300 --
2012 -- 973,824 -- 246,691
2013 -- -- 104,762 1,591,323
2014 35,364 3,141,529 -- 1,882,135
----------------------------------------------------------------------------------------------
Total $ 35,364 $11,273,463 $16,829,391 $ 3,720,149
==============================================================================================
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), and a specific fund-level component, based only
on the amount of assets within each individual fund. This pricing structure
enables Nuveen fund shareholders to benefit from growth in the assets within
each individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
============================================================================================================
DIVIDEND ADVANTAGE (NAD)
DIVIDEND ADVANTAGE 2 (NXZ)
DIVIDEND ADVANTAGE 3 (NZF)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
============================================================================================================
83
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2007, the complex-level fee rate was .1824%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
-----------------------------------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
===========================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
84
For the first ten years of Dividend Advantage's (NAD) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion
of its fees and expenses beyond July 31, 2009.
For the first ten years of Dividend Advantage 2's (NXZ) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any
portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Dividend Advantage 3's (NZF) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any
portion of its fees and expenses beyond September 30, 2011.
85
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
6. NEW ACCOUNTING PRONOUNCEMENTS
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006, and is to be
applied to all open tax years as of the effective date. Recent SEC guidance
allows funds to delay implementing FIN 48 into NAV calculations until the fund's
last NAV calculation in the first required financial statement reporting period.
As a result, the Funds must begin to incorporate FIN 48 into their NAV
calculations by October 31, 2007. At this time, management is continuing to
evaluate the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of April 30, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2007, to shareholders of record on
May 15, 2007, as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0640 $.0715 $.0635 $.0665 $.0765 $.0705
=========================================================================================================
AGREEMENT AND PLAN OF MERGER
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. Under the terms of the merger, each
outstanding share of Nuveen Investments' common stock (other than dissenting
shares) will be converted into the right to receive a specified amount of cash,
without interest. The merger is expected to be completed by the end of the year,
subject to customary conditions, including obtaining the approval of Nuveen
Investments shareholders, obtaining necessary fund and client consents
sufficient to satisfy the terms of the Merger Agreement, and expiration of
certain regulatory waiting periods. The obligations of Madison Dearborn
Partners, LLC to consummate the merger are not conditioned on its obtaining
financing. The Merger Agreement includes a "go shop" provision through July 19,
2007 during which Nuveen Investments may actively solicit and negotiate
competing takeover proposals.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between each Fund and
the Adviser, and will result in the automatic termination of each Fund's
agreement. Prior to the consummation of the merger, it is anticipated that the
Board of Trustees of each Fund will consider a new investment management
agreement with the Adviser. If approved by the Board, the new agreement would be
presented to the Fund's shareholders for approval, and, if so approved by
shareholders, would take effect upon consummation of the merger. There can be no
assurance that the merger described above will be consummated as contemplated or
that necessary shareholder approvals will be obtained.
86
Financial
HIGHLIGHTS (Unaudited)
87
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $15.78 $ .49 $(.13) $(.13) $ (.01) $ .22 $ (.38) $ (.05) $ (.43)
2006 15.51 1.00 .38 (.25) -- 1.13 (.84) (.02) (.86)
2005 15.87 1.02 (.26) (.16) -- .60 (.94) (.02) (.96)
2004 15.45 1.04 .42 (.07) -- 1.39 (.97) -- (.97)
2003 15.38 1.07 .05 (.07) -- 1.05 (.95) (.03) (.98)
2002 15.57 1.09 (.22) (.10) (.01) .76 (.90) (.04) (.94)
MUNICIPAL ADVANTAGE (NMA)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 15.88 .54 (.18) (.14) -- .22 (.43) -- (.43)
2006 15.70 1.08 .27 (.26) -- 1.09 (.90) (.01) (.91)
2005 16.02 1.09 (.24) (.16) -- .69 (1.00) (.01) (1.01)
2004 15.62 1.11 .41 (.08) -- 1.44 (1.03) (.01) (1.04)
2003 15.41 1.13 .25 (.07) (.01) 1.30 (1.02) (.07) (1.09)
2002 15.56 1.15 (.22) (.10) (.03) .80 (.94) (.10) (1.04)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value** Value** Shares (000)
------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $ -- $15.57 $15.19 3.55% 1.41% $ 933,016
2006 -- 15.78 15.09 10.78 7.50 945,222
2005 -- 15.51 14.43 3.02 3.83 929,544
2004 -- 15.87 14.95 9.10 9.30 950,993
2003 -- 15.45 14.64 9.58 6.97 925,525
2002 (.01) 15.38 14.28 4.51 5.03 921,376
MUNICIPAL ADVANTAGE (NMA)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) -- 15.67 16.05 4.00 1.45 676,770
2006 -- 15.88 15.85 10.68 7.16 683,675
2005 -- 15.70 15.19 3.29 4.42 675,678
2004 -- 16.02 15.70 8.82 9.57 689,190
2003 -- 15.62 15.44 13.17 8.71 671,147
2002 -- 15.41 14.66 5.89 5.39 662,270
================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund***
---------------------------------------- -----------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.14%* 1.14%* 6.35%* 1.13%* 1.12%* 6.36%* 2%
2006 1.15 1.15 6.44 1.14 1.14 6.45 9
2005 1.15 1.15 6.45 1.14 1.14 6.46 6
2004 1.17 1.17 6.69 1.17 1.17 6.70 11
2003 1.18 1.18 6.89 1.18 1.18 6.90 10
2002 1.18 1.18 7.11 1.17 1.17 7.12 11
MUNICIPAL ADVANTAGE (NMA)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.31* 1.16* 6.82* 1.30* 1.15* 6.84* 1
2006 1.18 1.18 6.92 1.17 1.17 6.93 11
2005 1.17 1.17 6.81 1.16 1.16 6.82 8
2004 1.19 1.19 7.00 1.18 1.18 7.00 4
2003 1.21 1.21 7.27 1.20 1.20 7.27 7
2002 1.22 1.22 7.55 1.22 1.22 7.55 17
=========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
PERFORMANCE PLUS (NPP)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $479,000 $25,000 $73,696 $ 6,665 $212,855
2006 479,000 25,000 74,333 -- --
2005 479,000 25,000 73,515 -- --
2004 479,000 25,000 74,634 -- --
2003 479,000 25,000 73,305 -- --
2002 479,000 25,000 73,089 -- --
MUNICIPAL ADVANTAGE (NMA)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 358,000 25,000 72,261 36,290 29,514
2006 358,000 25,000 72,743 -- --
2005 358,000 25,000 72,184 -- --
2004 358,000 25,000 73,128 -- --
2003 358,000 25,000 71,868 -- --
2002 358,000 25,000 71,248 -- --
============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit, expense reimbursement, and legal fee refund,
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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 88-89
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $15.41 $ .53 $(.20) $(.15) $ -- $ .18 $ (.39) $ -- $ (.39)
2006 15.14 1.02 .34 (.26) -- 1.10 (.83) -- (.83)
2005 15.48 1.03 (.29) (.16) -- .58 (.92) -- (.92)
2004 15.11 1.03 .37 (.08) -- 1.32 (.95) -- (.95)
2003 14.60 1.03 .50 (.08) -- 1.45 (.94) -- (.94)
2002 15.24 1.11 (.70) (.11) (.01) .29 (.91) (.02) (.93)
DIVIDEND ADVANTAGE (NAD)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 15.54 .52 (.17) (.13) -- .22 (.41) -- (.41)
2006 15.28 1.04 .32 (.24) -- 1.12 (.86) -- (.86)
2005 15.62 1.06 (.25) (.15) -- .66 (1.00) -- (1.00)
2004 15.17 1.09 .46 (.07) -- 1.48 (1.03) -- (1.03)
2003 14.94 1.10 .19 (.07) -- 1.22 (.99) -- (.99)
2002 14.84 1.13 .01 (.10) -- 1.04 (.94) -- (.94)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value** Value** Shares (000)
------------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $ -- $15.20 $14.98 2.48% 1.19% $ 692,530
2006 -- 15.41 15.00 11.92 7.49 701,559
2005 -- 15.14 14.19 4.70 3.78 689,682
2004 -- 15.48 14.44 7.97 9.00 704,760
2003 -- 15.11 14.29 10.62 10.24 687,955
2002 -- 14.60 13.80 .49 2.03 664,914
DIVIDEND ADVANTAGE (NAD)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) -- 15.35 15.06 1.10 1.44 603,112
2006 -- 15.54 15.30 11.19 7.59 610,316
2005 -- 15.28 14.58 1.77 4.27 599,887
2004 -- 15.62 15.31 8.37 10.06 613,328
2003 -- 15.17 15.12 11.41 8.41 595,266
2002 -- 14.94 14.50 2.01 7.26 586,045
================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund***
---------------------------------------- -----------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
-------------------------------------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.35%* 1.18%* 6.94%* 1.33%* 1.16%* 6.96%* 2%
2006 1.19 1.19 6.73 1.18 1.18 6.74 14
2005 1.19 1.19 6.66 1.18 1.18 6.67 7
2004 1.21 1.21 6.75 1.19 1.19 6.77 4
2003 1.25 1.25 6.94 1.25 1.25 6.94 9
2002 1.24 1.24 7.50 1.24 1.24 7.51 13
DIVIDEND ADVANTAGE (NAD)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.14* 1.12* 6.51* .90* .88* 6.75* 2
2006 1.12 1.12 6.54 .83 .83 6.83 8
2005 1.17 1.17 6.48 .80 .80 6.84 11
2004 1.14 1.14 6.69 .70 .70 7.12 7
2003 1.35 1.35 6.78 .89 .89 7.24 3
2002 1.25 1.25 7.24 .80 .80 7.70 7
=========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
MARKET OPPORTUNITY (NMO)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $380,000 $25,000 $70,561 $36,660 $ 30,256
2006 380,000 25,000 71,155 -- --
2005 380,000 25,000 70,374 -- --
2004 380,000 25,000 71,366 -- --
2003 380,000 25,000 70,260 -- --
2002 380,000 25,000 68,744 -- --
DIVIDEND ADVANTAGE (NAD)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 295,000 25,000 76,111 13,630 66,892
2006 295,000 25,000 76,722 -- --
2005 295,000 25,000 75,838 -- --
2004 295,000 25,000 76,977 -- --
2003 295,000 25,000 75,446 -- --
2002 295,000 25,000 74,665 -- --
============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit, expense reimbursement, and legal fee refund,
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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 90-91
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $16.02 $ .57 $(.11) $(.13) $ -- $ .33 $ (.46) $ -- $ (.46)
2006 15.80 1.12 .32 (.24) -- 1.20 (.98) -- (.98)
2005 15.63 1.13 .22 (.15) -- 1.20 (1.03) -- (1.03)
2004 15.13 1.12 .51 (.07) -- 1.56 (1.03) (.03) (1.06)
2003 14.89 1.16 .17 (.07) -- 1.26 (1.01) (.01) (1.02)
2002 15.07 1.15 (.32) (.10) -- .73 (.91) (.01) (.92)
DIVIDEND ADVANTAGE 3 (NZF)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 15.54 .54 (.12) (.13) (.01) .28 (.43) (.02) (.45)
2006 15.32 1.07 .29 (.24) -- 1.12 (.90) -- (.90)
2005 15.36 1.06 .01 (.15) -- .92 (.96) -- (.96)
2004 14.74 1.06 .59 (.07) -- 1.58 (.96) -- (.96)
2003 14.56 1.07 .10 (.07) -- 1.10 (.93) -- (.93)
2002 14.47 1.03 .16 (.10) -- 1.09 (.91) -- (.91)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value** Value** Shares (000)
------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $ -- $15.89 $17.00 5.90% 2.08% $ 466,879
2006 -- 16.02 16.50 11.95 7.86 470,189
2005 -- 15.80 15.64 8.58 7.83 462,862
2004 -- 15.63 15.38 11.16 10.67 457,552
2003 -- 15.13 14.85 14.39 8.67 443,101
2002 .01 14.89 13.91 (.81) 5.16 435,907
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) -- 15.37 15.82 2.51 1.84 620,472
2006 -- 15.54 15.88 16.90 7.57 626,836
2005 -- 15.32 14.41 6.11 6.09 617,358
2004 -- 15.36 14.50 12.45 11.10 619,118
2003 .01 14.74 13.80 9.04 7.82 594,154
2002 (.09) 14.56 13.53 (4.26) 7.20 586,799
================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund***
---------------------------------------- -----------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
-------------------------------------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.20%* 1.11%* 6.87%* .82%* .74%* 7.25%* 4%
2006 1.11 1.11 6.70 .70 .70 7.11 5
2005 1.12 1.12 6.66 .67 .67 7.12 2
2004 1.14 1.14 6.87 .69 .69 7.32 3
2003 1.17 1.17 7.20 .71 .71 7.66 11
2002 1.17 1.17 7.32 .70 .70 7.79 9
DIVIDEND ADVANTAGE 3 (NZF)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.30* 1.13* 6.68* .92* .74* 7.06* 4
2006 1.13 1.13 6.51 .68 .68 6.96 9
2005 1.13 1.13 6.39 .68 .68 6.84 3
2004 1.15 1.15 6.64 .69 .69 7.10 3
2003 1.17 1.17 6.80 .71 .71 7.26 3
2002 1.17 1.17 6.78 .70 .70 7.25 7
=========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
DIVIDEND ADVANTAGE 2 (NXZ)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $222,000 $25,000 $77,576 $23,365 $ 30,483
2006 222,000 25,000 77,949 -- --
2005 222,000 25,000 77,124 -- --
2004 222,000 25,000 76,526 -- --
2003 222,000 25,000 74,899 -- --
2002 222,000 25,000 74,089 -- --
DIVIDEND ADVANTAGE 3 (NZF)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 312,000 25,000 74,717 30,780 31,295
2006 312,000 25,000 75,227 -- --
2005 312,000 25,000 74,468 -- --
2004 312,000 25,000 74,609 -- --
2003 312,000 25,000 72,608 -- --
2002 312,000 25,000 72,019 -- --
============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit, expense reimbursement, and legal fee refund,
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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 92-93
Reinvest Automatically
EASILY AND CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued 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.
94
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
95
Glossary of
TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
96
Notes
97
Notes
98
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
For Funds listed on the New York Stock Exchange, each Fund's Chief Executive
Officer has submitted to the Exchange the annual CEO certification as required
by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
EACH FUND INTENDS TO REPURCHASE SHARES OF ITS OWN COMMON STOCK IN THE FUTURE AT
SUCH TIMES AND IN SUCH AMOUNTS AS IS DEEMED ADVISABLE. NO SHARES WERE
REPURCHASED DURING THE PERIOD COVERED BY THIS REPORT. ANY FUTURE REPURCHASES
WILL BE REPORTED TO SHAREHOLDERS IN THE NEXT ANNUAL OR SEMIANNUAL REPORT.
99
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $166 billion in assets, as of March 31, 2007, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: NWQ, specializing in value-style equities; Nuveen, managing
fixed-income investments; Santa Barbara, committed to growth equities;
Tradewinds, specializing in global value equities; Rittenhouse, focused on
"blue-chip" growth equities; and Symphony, with expertise in alternative
investments as well as equity and income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
BE SURE TO OBTAIN A PROSPECTUS, WHERE APPLICABLE. INVESTORS SHOULD CONSIDER THE
INVESTMENT OBJECTIVE AND POLICIES, RISK CONSIDERATIONS, CHARGES AND EXPENSES OF
THE FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION RELEVANT TO AN INVESTMENT IN THE FUND. FOR A PROSPECTUS, PLEASE
CONTACT YOUR SECURITIES REPRESENTATIVE OR NUVEEN INVESTMENTS, 333 W. WACKER DR.,
CHICAGO, IL 60606. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR
SEND MONEY.
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Learn more
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www.nuveen.com/cef
[LOGO]
NUVEEN
INVESTMENTS
ESA-B-0407D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Dividend Advantage Municipal Fund 3
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 9, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.