nad.htm

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 811-09297

Nuveen Dividend Advantage Municipal Fund
(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: October 31, 2011

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.
 
 
 

 
 

 

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Table of Contents
 
Chairman’s Letter to Shareholders
4
Portfolio Managers’ Comments
5
Fund Leverage and Other Information
9
Common Share Dividend and Share Price Information
13
Performance Overviews
14
Shareholder Meeting Report
20
Report of Independent Registered Public Accounting Firm
24
Portfolios of Investments
25
Statement of Assets and Liabilities
90
Statement of Operations
92
Statement of Changes in Net Assets
93
Statement of Cash Flows
95
Financial Highlights
97
Notes to Financial Statements
107
Annual Investment Management Agreement Approval Process
121
Board Members and Officers
130
Reinvest Automatically, Easily and Conveniently
135
Glossary of Terms Used in this Report
137
Other Useful Information
139

 
 

 

Chairman’s
Letter to Shareholders
 
 
Dear Shareholders,
 
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
 
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
 
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
 
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
 
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
Robert P. Bremner
Chairman of the Board
December 21, 2011

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Portfolio Managers’ Comments

Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Nuveen Municipal Advantage Fund, Inc. (NMA)
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Nuveen Dividend Advantage Municipal Fund (NAD)
Nuveen Dividend Advantage Municipal Fund 2 (NXZ)
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
 
Portfolio managers Tom Spalding and Paul Brennan discuss U.S. economic and municipal market conditions, key investment strategies and the twelve-month performance of these six national Funds. A 34-year veteran of Nuveen, Tom has managed NXZ since its inception in 2001 and NPP, NMA, NMO and NAD since 2003. With 20 years of industry experience, including 14 years at Nuveen, Paul assumed portfolio management responsibility for NZF in 2006.
 
What factors affected the U.S. economy and municipal market during the twelve-month reporting period ended October 31, 2011?
 
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S.Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
 
In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the fourth quarter of 2010 and the ninth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in
 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.

Nuveen Investments
 
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the right direction, it was due partly to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6% over the preceding twelve months, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
 
Municipal bond prices ended this period generally unchanged versus the beginning of this reporting period, masking a sell-off that commenced in the fourth quarter of 2010 as the result of investor concerns about inflation, the federal deficit and its impact on demand for U.S. Treasuries. Adding to this situation was media coverage of the strained finances of many state and local governments, which failed to differentiate between gaps in these governments’ operating budgets and their ability to meet their debt service obligations. As a result, money flowed out of municipal mutual funds, yields rose, and valuations declined.
 
During the second half of this reporting period (i.e., May-October 2011), municipal bond prices generally rallied as yields declined across the municipal curve. The decline in yields was due in part to the continued depressed level of municipal bond issuance. Tax-exempt volume, which had been limited in 2010 by issuers’ extensive use of taxable Build America Bonds (BABs), continued to drift lower in 2011. Even though BABs were no longer an option for issuers (the BAB program expired at the end of 2010), some borrowers had accelerated issuance into 2010 in order to take advantage of the program’s favorable terms before its termination, fulfilling their capital program borrowing needs well into 2012. This reduced the need for many borrowers to come to market with new issues during this period. Over the twelve months ended October 31, 2011, municipal bond issuance nationwide totaled $320.2 billion, a decrease of 23% compared with the issuance of the twelve-month period ended October 31, 2010. During the majority of this period, demand for municipal bonds remained very strong.
 
What key strategies were used to manage these Funds during this reporting period?
 
In an environment characterized by tighter municipal supply and relatively lower yields, we continued to take a bottom-up approach to discovering sectors and individual credits that we believed were undervalued and that had the potential to perform well over the long term. During this period, these Funds found value in the health care sector, where we added to our holdings at attractive prices; essential services such as water and sewer bonds; and tax-supported credits. NPP, NMA, NMO, NAD and NXZ also purchased selected transportation bonds—primarily for airlines, airports and toll-roads—and took advantage of attractive valuation levels to add some tobacco credits. In general, the Funds focused on purchasing longer bonds in order to capitalize on opportunities to add more attractive yields at the longer end of the municipal yield curve. The purchase of longer bonds also helped maintain the Funds’ duration (price sensitivity to interest rate movements) and yield curve positioning.
 
Cash for new purchases during this period was generated primarily by the proceeds from bond calls and maturing bonds, which we worked to redeploy to keep the Funds

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fully invested. In particular, NZF, which reached its ten-year anniversary in September 2011, had the elevated number of calls often associated with that milestone. By taking advantage of opportunities to reinvest call proceeds into bonds with longer maturities, we were able to extend NZF’s duration, which had shortened over time. In NMO, we also sold some zero coupon bonds with long maturities as part of our efforts to more closely align this Fund’s duration with its target objectives.
 
As of October 31, 2011, all six of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
 
How did the Funds perform?
 
Individual results for these Funds, as well as relevant index and peer group information, are presented in the accompanying table.
 
Average Annual Total Returns on Common Share Net Asset Value
For periods ended 10/31/11

Fund
1-Year
5-Year
10-Year
NPP
4.78%
4.81%
5.66%
NMA
5.05%
4.61%
5.81%
NMO
3.40%
3.75%
5.10%
NAD
4.76%
4.63%
6.05%
NXZ
5.24%
4.45%
6.22%
NZF
5.83%
5.10%
6.52%
       
Standard & Poor’s (S&P) National Municipal Bond Index*
3.75%
4.48%
4.95%
Lipper General and Insured Leveraged Municipal Debt
     
Funds Classification Average*
4.80%
4.20%
5.59%
 
For the twelve months ended October 31, 2011, the total returns on common share net asset value (NAV) for NPP, NMA, NAD, NXZ and NZF exceeded the return for the Standard & Poor’s (S&P) National Municipal Bond Index, while NMO trailed the S&P Index return. For this same period, NMA, NXZ and NZF outperformed the average return for the Lipper General and Insured Leveraged Municipal Debt Funds Classification Average, NPP and NAD performed in line with the Lipper average and NMO lagged the Lipper peer group.
 
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure and sector allocation. In addition, the use of leverage was an important positive factor affecting the Funds’ performance over this period. The impact of leverage is discussed in more detail later in this report.
 
During this period, municipal bonds with intermediate and longer maturities tended to outperform the short maturity categories, with credits having maturities of seven years and longer generally outpacing the market. Among these Funds, NZF and NXZ were the most advantageously situated in terms of duration and yield curve positioning, with better exposure to the segments of the yield curve that performed best. During this period, these two Funds had relatively more bond calls and the subsequent ability to reinvest longer on the yield curve. In general during this period, the greater a Fund’s

 
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.
   
*
Refer to Glossary of Terms Used in this Report for definitions.

Nuveen Investments
 
7

 
 

 

exposure to the outperforming intermediate and longer parts of the curve, the greater the positive impact on the Fund’s return.
 
NMO began the period with a relatively long duration, which hurt its overall performance during the first part of the period when yields generally were rising and prices were falling. As noted, we worked to shorten the Fund’s duration during the period, and therefore sold longer maturity securities to invest in shorter term issues. This repositioning, which we believe will serve the Fund well over the longer term, hurt its relative performance as this Fund did not benefit as much as the others from the generally strong market seen in the second half of the period. In addition, several of the Fund’s individual bond holdings did not perform as well as expected, which also hurt overall return.
 
Credit exposure also played a role in performance, as bonds rated A and AA typically outperformed the other credit quality categories. On the whole, bonds with higher levels of credit risk were not favored by the market during this period. The performance of the BBB category, in particular, was dragged down by poor returns in the tobacco bond sector. All of these Funds benefited from their strong weightings in the A and AA sectors. This was offset to some degree by heavy weightings in bonds rated BBB in all of these Funds except NZF.
 
Holdings that generally made positive contributions to the Funds’ returns during this period included zero coupon bonds and housing, water and sewer and health care credits. General obligation and other tax-supported bonds also generally outpaced the overall municipal market return. All of these Funds, particularly NMA and NAD, had strong weightings in health care, which added to their performance. On the whole, some of the best performing bonds in the Funds’ portfolios for this period were those purchased during the earlier part of this period before the market rallied, when yields were relatively higher and prices especially attractive.
 
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, were among the poorest performing market segments during this period. The underperfor-mance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. As of October 31, 2011, NPP held the heaviest weighting of pre-refunded bonds, which detracted from its performance during this period.

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Fund Leverage and
Other Information
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the returns of all these Funds relative to the comparative indexes was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods, when the prices of securities held by a Fund are generally rising. Leverage made a positive contribution to the performance of these Funds over this reporting period.
 
RECENT DEVELOPMENTS REGARDING THE FUNDS’ REDEMPTION OF AUCTION RATE PREFERRED SHARES
 
Shortly after their respective inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create structural leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely nonexistent since late February 2008. This means that these auctions have “failed to clear,” and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short term rates at multi-generational lows, those maximum rates also have been low.
 
One continuing implication for common shareholders from the auction failures is that each Fund’s cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund’s common share earnings likely have been incrementally lower at times than they otherwise might have been.
 
As noted in past shareholder reports, the Nuveen funds’ Board of Directors/Trustees authorized several methods that can be used separately or in combination to refinance a portion of the Nuveen funds’ outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as inverse floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund’s

Nuveen Investments
 
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portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares or Variable Rate MuniFund Term Preferred (VMTP) Shares, which are a floating rate form of preferred stock with a mandatory term redemption. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of three to five years.
 
During 2010 and 2011, certain Nuveen leveraged closed-end funds (including NMA, NAD, NXZ and NZF) received a demand letter from a law firm on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds’ officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the funds’ ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee’s recommendation.
 
Subsequently, the 33 funds that received demand letters (including NAD, NXZ and NZF) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on February 18, 2011 (the “Complaint”). The Complaint, filed on behalf of purported holders of each fund’s common shares, also name Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Director/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaint contains the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs’ costs and disbursements in pursuing the action. The Defendants filed a motion to dismiss the suit and on December 16, 2011, the court granted that motion dismissing the complaint with prejudice.
 
As of October 31, 2011, each of the Funds has redeemed all of their outstanding APRS at liquidation value.

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As of October 31, 2011, the Funds have issued and outstanding MTP Shares, VMTP Shares and VRDP Shares as shown in the accompanying tables.
 
MTP Shares
 
   
MTP Shares
   
   
Issued at
Annual
 
Fund
Series
Liquidation Value
Interest Rate
NYSE Ticker
NAD
2015
$144,300,000
2.70%
NAD PrC
NZF
2016
$70,000,000
2.80%
NZF PrC

VMTP Shares

     
VMTP
VMTP Shares Issued
Fund
   
Series
at Liquidation Value
NPP
   
2014
$421,700,000
NAD
   
2014
$120,400,000
NZF
   
2014
$169,200,000

VRDP Shares

       
VRDP Shares Issued
Fund
     
at Liquidation Value
NMA
     
$296,800,000
NMO
     
$350,900,000
NXZ
     
$196,000,000

 
(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP Shares, VMTP Shares and VRDP Shares.)
 
As of October 5, 2011, all 84 of the Nuveen closed-end municipal funds that had issued ARPS, approximately $11.0 billion, have redeemed at liquidation value all of these shares.
 
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
 
Regulatory Matters
 
During May 2011, Nuveen Securities, LLC, known as Nuveen Investments, LLC prior to April 30, 2011, entered into a settlement with the Financial Industry Regulatory Authority (FINRA) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities, LLC neither admitted to nor denied FINRA’s allegations. Nuveen Securities, LLC is the broker-dealer subsidiary of Nuveen Investments. The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities, LLC were false and misleading. Nuveen Securities, LLC agreed to a censure and the payment of a $3 million fine.
 
Nuveen Investments
 
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RISK CONSIDERATIONS
 
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
 
Investment Risk. The possible loss of the entire principal amount that you invest.

Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.

Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.

Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.

Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.

Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.

Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.

Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.

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Nuveen Investments

 
 

 

Common Share Dividend
and Share Price Information

During the twelve-month reporting period ended October 31, 2011, NPP had one monthly dividend increase, while the dividends of NMA, NAD, NXZ and NZF remained stable throughout the reporting period. The dividend of NMO was cut effective September 2011.

Due to normal portfolio activity, common shareholders of the following Funds received capital gains and/or net ordinary income distributions during the past twelve months (NPP and NZF in December 2010 and NMA in June 2011) as follows:

   
Short-Term Capital Gains
 
Long-Term Capital Gains
and/or Ordinary Income
Fund
(per share)
(per share)
NPP
$0.0905
$0.0081
NMA
$0.0783
$0.0090
NZF
$0.0156

 
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 October 31, 2011, all of the Funds in this report had positive UNII balances for both tax and financial reporting purposes.
 
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
 
Since the inception of the Funds’ repurchase program, the Funds have not repurchased any of their outstanding common shares.
 
As of October 31, 2011, the Funds’ common share prices were trading at (-) discounts to their common share NAVs as shown in the accompanying table.

 
10/31/11
12-Month
Fund
(-)Discount
Average (-)Discount
NPP
(-)3.56%
(-)3.33%
NMA
(-)2.23%
(-)1.45%
NMO
(-)3.09%
(-)0.95%
NAD
(-)4.79%
(-)4.00%
NXZ
(-)4.14%
(-)3.49%
NZF
(-)2.48%
(-)3.49%

Nuveen Investments
 
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NPP
 
Nuveen Performance
Performance
 
Plus Municipal
OVERVIEW
 
Fund, Inc.
   
as of October 31, 2011
 
 
Fund Snapshot
             
Common Share Price
       
$
14.36
 
Common Share Net Asset Value (NAV)
       
$
14.89
 
Premium/Discount to NAV
         
-3.56
%
Market Yield
         
6.69
%
Taxable Equivalent Yield1
         
9.29
%
Net Assets Applicable to Common Shares ($000)
       
$
892,603
 

Leverage
             
Structural Leverage
         
32.09
%
Effective Leverage
         
35.50
%

Average Annual Total Return
             
(Inception 6/22/89)
             
 
   
On Share Price
  On NAV
1-Year
   
3.22
%
 
4.78
%
5-Year
   
5.33
%
 
4.81
%
10-Year
   
6.34
%
 
5.66
%

States4
             
(as a % of total investments)
             
Illinois
         
18.3
%
California
         
14.6
%
Colorado
         
6.0
%
Florida
         
4.8
%
Texas
         
4.7
%
Ohio
         
4.5
%
New Jersey
         
4.5
%
New York
         
3.6
%
Nevada
         
3.5
%
Massachusetts
         
3.0
%
Washington
         
2.4
%
Pennsylvania
         
2.3
%
Puerto Rico
         
2.2
%
Michigan
         
2.2
%
Louisiana
         
2.1
%
Indiana
         
1.8
%
Virginia
         
1.6
%
Minnesota
         
1.5
%
Arizona
         
1.5
%
Other
         
14.9
%

Portfolio Composition4
             
(as a % of total investments)
             
Tax Obligation/Limited
         
18.4
%
Transportation
         
16.6
%
Health Care
         
15.1
%
Tax Obligation/General
         
15.0
%
U.S. Guaranteed
         
10.5
%
Utilities
         
7.5
%
Consumer Staples
         
7.3
%
Other
         
9.6
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 2010 of $0.0986 per share.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.

14
 
Nuveen Investments


 
 

 

NMA
 
Nuveen Municipal
Performance
 
Advantage
OVERVIEW
 
Fund, Inc.
   
as of October 31, 2011
 
 
Fund Snapshot
             
Common Share Price
       
$
14.05
 
Common Share Net Asset Value (NAV)
       
$
14.37
 
Premium/Discount to NAV
         
-2.23
%
Market Yield
         
7.05
%
Taxable Equivalent Yield1
         
9.79
%
Net Assets Applicable to Common Shares ($000)
       
$
626,616
 

Leverage
             
Structural Leverage
         
32.14
%
Effective Leverage
         
37.03
%

Average Annual Total Return
             
(Inception 12/19/89)
             
 
   
On Share Price
  On NAV
1-Year
   
1.90
%
 
5.05
%
5-Year
   
4.32
%
 
4.61
%
10-Year
   
6.30
%
 
5.81
%

States4
             
(as a % of total investments)
             
California
         
13.9
%
Texas
         
10.0
%
Louisiana
         
9.7
%
Illinois
         
8.7
%
Colorado
         
6.6
%
Ohio
         
4.9
%
Puerto Rico
         
4.9
%
New York
         
3.7
%
Pennsylvania
         
3.2
%
Nevada
         
2.9
%
Washington
         
2.6
%
Tennessee
         
2.6
%
New Jersey
         
2.4
%
Arizona
         
2.1
%
South Carolina
         
2.1
%
Indiana
         
1.9
%
Florida
         
1.9
%
Oklahoma
         
1.8
%
Other
         
14.1
%

Portfolio Composition4
             
(as a % of total investments)
             
Health Care
         
21.4
%
Tax Obligation/Limited
         
14.8
%
Tax Obligation/General
         
13.5
%
Transportation
         
12.6
%
Utilities
         
11.6
%
U.S. Guaranteed
         
10.3
%
Consumer Staples
         
6.7
%
Other
         
9.1
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 distributions in June 2011 of $0.0873 per share.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.

Nuveen Investments
 
15

 
 

 

NMO
 
Nuveen Municipal
Performance
 
Market Opportunity
OVERVIEW
 
Fund, Inc.
   
as of October 31, 2011
 
 
Fund Snapshot
             
Common Share Price
       
$
13.18
 
Common Share Net Asset Value (NAV)
       
$
13.60
 
Premium/Discount to NAV
         
-3.09
%
Market Yield
         
7.06
%
Taxable Equivalent Yield1
         
9.81
%
Net Assets Applicable to Common Shares ($000)
       
$
622,815
 

Leverage
             
Structural Leverage
         
36.04
%
Effective Leverage
         
40.08
%

Average Annual Total Return
             
(Inception 3/21/90)
             
     
On Share Price
 
On NAV
1-Year
   
-2.33
%
 
3.40
%
5-Year
   
3.90
%
 
3.75
%
10-Year
   
5.47
%
 
5.10
%

States3
             
(as a % of total investments)
             
California
         
15.1
%
Illinois
         
10.6
%
Texas
         
7.6
%
Colorado
         
6.5
%
Washington
         
5.5
%
Ohio
         
5.2
%
Puerto Rico
         
4.8
%
New York
         
4.5
%
Nevada
         
4.2
%
North Carolina
         
3.7
%
Pennsylvania
         
3.4
%
South Carolina
         
3.1
%
Louisiana
         
2.4
%
Alaska
         
2.1
%
Michigan
         
2.1
%
Florida
         
1.9
%
New Jersey
         
1.8
%
Virginia
         
1.8
%
Other
         
13.7
%

Portfolio Composition3
             
(as a % of total investments)
             
Transportation
         
19.2
%
Tax Obligation/General
         
18.1
%
Health Care
         
17.8
%
Tax Obligation/Limited
         
13.6
%
Utilities
         
7.0
%
Consumer Staples
         
6.8
%
U.S. Guaranteed
         
6.6
%
Other
         
10.9
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.

16
 
Nuveen Investments
 
 
 

 

NAD
 
Nuveen Dividend
Performance
 
Advantage
OVERVIEW
 
Municipal Fund
   
as of October 31, 2011
 
 
Fund Snapshot
             
Common Share Price
       
$
13.70
 
Common Share Net Asset Value (NAV)
       
$
14.39
 
Premium/Discount to NAV
         
-4.79
%
Market Yield
         
6.66
%
Taxable Equivalent Yield1
         
9.25
%
Net Assets Applicable to Common Shares ($000)
       
$
565,364
 

Leverage
             
Structural Leverage
         
31.89
%
Effective Leverage
         
37.82
%

Average Annual Total Return
             
(Inception 5/26/99)
             
 
   
On Share Price
  On NAV
1-Year
   
1.93
%
 
4.76
%
5-Year
   
4.22
%
 
4.63
%
10-Year
   
5.53
%
 
6.05
%

States3
             
(as a % of total municipal bonds)
             
Illinois
         
18.1
%
Florida
         
7.2
%
Texas
         
6.6
%
California
         
6.4
%
New York
         
6.2
%
Washington
         
6.0
%
Louisiana
         
5.3
%
Wisconsin
         
4.6
%
Nevada
         
4.4
%
New Jersey
         
4.3
%
Colorado
         
4.2
%
Puerto Rico
         
3.8
%
Rhode Island
         
2.6
%
Indiana
         
2.6
%
Ohio
         
2.4
%
Pennsylvania
         
1.9
%
Other
         
13.4
%

Portfolio Composition3
             
(as a % of total investments)
             
Health Care
         
20.8
%
Tax Obligation/General
         
19.2
%
Tax Obligation/Limited
         
18.5
%
Transportation
         
14.4
%
Consumer Staples
         
5.9
%
Education and Civic Organizations
         
4.9
%
Utilities
         
4.1
%
Other
         
12.2
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.

Nuveen Investments
 
17

 
 

 

NXZ
 
Nuveen Dividend
Performance
 
Advantage
OVERVIEW
 
Municipal Fund 2
   
as of October 31, 2011
 
 
Fund Snapshot
             
Common Share Price
       
$
13.90
 
Common Share Net Asset Value (NAV)
       
$
14.50
 
Premium/Discount to NAV
         
-4.14
%
Market Yield
         
6.91
%
Taxable Equivalent Yield1
         
9.60
%
Net Assets Applicable to Common Shares ($000)
       
$
427,085
 

Leverage
             
Structural Leverage
         
31.46
%
Effective Leverage
         
35.53
%

Average Annual Total Return
             
(Inception 3/27/01)
             
 
   
On Share Price
 
On NAV
1-Year
   
1.70
%
 
5.24
%
5-Year
   
3.07
%
 
4.45
%
10-Year
   
5.96
%
 
6.22
%

States3
             
(as a % of total investments)
             
Texas
         
18.7
%
California
         
15.9
%
Illinois
         
11.7
%
Florida
         
5.4
%
New York
         
4.4
%
Michigan
         
4.4
%
Colorado
         
4.2
%
Louisiana
         
3.8
%
Nevada
         
3.3
%
Indiana
         
3.2
%
Puerto Rico
         
2.4
%
Alaska
         
2.2
%
Georgia
         
1.9
%
New Jersey
         
1.9
%
Arizona
         
1.8
%
Other
         
14.8
%

Portfolio Composition3
             
(as a % of total investments)
             
Tax Obligation/Limited
         
23.6
%
Health Care
         
16.8
%
Transportation
         
13.6
%
Tax Obligation/General
         
12.1
%
Consumer Staples
         
7.3
%
Education and Civic Organizations
         
6.5
%
Utilities
         
6.5
%
Other
         
13.6
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.

18
 
Nuveen Investments

 
 

 

NZF
 
Nuveen Dividend
Performance
 
Advantage
OVERVIEW
 
Municipal Fund 3
   
as of October 31, 2011
 
 
Fund Snapshot
             
Common Share Price
       
$
14.17
 
Common Share Net Asset Value (NAV)
       
$
14.53
 
Premium/Discount to NAV
         
-2.48
%
Market Yield
         
6.94
%
Taxable Equivalent Yield1
         
9.64
%
Net Assets Applicable to Common Shares ($000)
       
$
587,047
 

Leverage
             
Structural Leverage
         
28.95
%
Effective Leverage
         
36.33
%

Average Annual Total Return
             
(Inception 9/25/01)
             
     
On Share Price
 
On NAV
1-Year
   
4.59
%
 
5.83
%
5-Year
   
4.44
%
 
5.10
%
10-Year
   
6.11
%
 
6.52
%

States4
             
(as a % of total municipal bonds)
             
Texas
         
13.3
%
California
         
11.0
%
Illinois
         
9.7
%
Washington
         
7.0
%
Michigan
         
5.7
%
Louisiana
         
5.3
%
New York
         
4.9
%
Indiana
         
4.6
%
Nevada
         
4.4
%
Colorado
         
3.9
%
New Jersey
         
3.4
%
Georgia
         
3.4
%
Massachusetts
         
2.5
%
Florida
         
2.3
%
Missouri
         
2.3
%
Maryland
         
1.7
%
Other
         
14.6
%

Portfolio Composition4
             
(as a % of total investments)
             
Transportation
         
20.7
%
Health Care
         
18.1
%
Tax Obligation/General
         
12.4
%
Tax Obligation/Limited
         
11.2
%
U.S. Guaranteed
         
7.8
%
Water and Sewer
         
7.8
%
Education and Civic Organizations
         
6.0
%
Consumer Staples
         
4.8
%
Other
         
11.2
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 2010 of $0.0156 per share.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.

Nuveen Investments
 
19

 
 

 

NPP
 
Shareholder Meeting Report
NMA
   
NMO
 
The annual meeting of shareholders was held on July 25, 2011 in the Lobby Conference Room, 333 West Wacker Drive, Chicago, IL360606; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies.3 The meeting was subsequently adjourned to August 31, 2011 and additionally adjourned to October 19, 2011 for NAD and NZF.

    NPP       NMA    
NMO
 
Common and
       
Common and
       
Common and
 
 
Preferred
 
Preferred
   
Preferred
 
Preferred
   
Preferred
Preferred
 
shares voting
 
shares voting
   
shares voting
 
shares voting
   
shares voting
shares voting
 
together
 
together
   
together
 
together
   
together
together
 
as a class
 
as a class
   
as a class
 
as a class
   
as a class
as a class
Approval of the Board Members was reached as follows:
                       
John P. Amboian
                       
For
34,875,950
 
   
23,863,354
 
   
29,803,657
Withhold
951,113
 
   
740,942
 
   
1,054,465
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
Robert P. Bremner
                       
For
34,897,378
 
   
23,839,715
 
   
29,787,708
Withhold
929,685
 
   
764,581
 
   
1,070,414
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
Jack B. Evans
                       
For
34,886,782
 
   
23,816,397
 
   
29,795,694
Withhold
940,281
 
   
787,899
 
   
1,062,428
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
William C. Hunter
                       
For
 
4,217
   
 
2,268
   
2,759
Withhold
 
   
 
200
   
500
Total
 
4,217
   
 
2,468
   
3,259
David J. Kundert
                       
For
34,848,754
 
   
23,821,753
 
   
29,778,726
Withhold
978,309
 
   
782,543
 
   
1,079,396
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
William J. Schneider
                       
For
 
4,217
   
 
2,268
   
2,759
Withhold
 
   
 
200
   
500
Total
 
4,217
   
 
2,468
   
3,259
Judith M. Stockdale
                       
For
34,803,303
 
   
23,785,129
 
   
29,757,569
Withhold
1,023,760
 
   
819,167
 
   
1,100,553
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
Carole E. Stone
                       
For
34,818,467
 
   
23,795,016
 
   
29,752,357
Withhold
1,008,596
 
   
809,280
 
   
1,105,765
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
Virginia L. Stringer
                       
For
34,809,949
 
   
23,804,316
 
   
29,765,031
Withhold
1,017,114
 
   
799,980
 
   
1,093,091
Total
35,827,063
 
   
24,604,296
 
   
30,858,122
Terence J. Toth
                       
For
34,860,178
 
   
23,813,751
 
   
29,798,668
Withhold
966,885
 
   
790,545
 
   
1,059,454
Total
35,827,063
 
   
24,604,296
 
   
30,858,122

20
 
Nuveen Investments

 
 

 

    NPP       NMA    
NMO
 
Common and
       
Common and
       
Common and
 
 
Preferred
 
Preferred
   
Preferred
 
Preferred
   
Preferred
Preferred
 
shares voting
 
shares voting
   
shares voting
 
shares voting
   
shares voting
shares voting
 
together
 
together
   
together
 
together
   
together
together
 
as a class
 
as a class
   
as a class
 
as a class
   
as a class
as a class
To approve the elimination of the Fund’s fundamental investment policy relating to the Fund’s ability to make loans
                       
For
27,101,041
 
4,217
   
17,986,543
 
2,468
   
22,828,900
3,259
Against
1,350,007
 
   
1,056,435
 
   
1,426,961
Abstain
853,354
 
   
551,228
 
   
707,764
Broker Non-Votes
6,522,661
 
   
5,010,090
 
   
5,894,497
Total
35,827,063
 
4,217
   
24,604,296
 
2,468
   
30,858,122
3,259
To approve the new fundamental investment policy relating to the Fund’s ability to make loans
                       
For
27,037,448
 
4,217
   
17,934,224
 
2,468
   
22,626,474
3,259
Against
1,409,990
 
   
1,112,165
 
   
1,501,503
Abstain
856,363
 
   
547,817
 
   
835,648
Broker Non-Votes
6,523,262
 
   
5,010,090
 
   
5,894,497
Total
35,827,063
 
4,217
   
24,604,296
 
2,468
   
30,858,122
3,259
To approve the elimination of the Fund’s fundamental policy relating to investments in municipal securities and below investment grade securities.
                       
For
26,985,248
 
4,217
   
 
   
Against
1,491,541
 
   
 
   
Abstain
827,012
 
   
 
   
Broker Non-Votes
6,523,262
 
   
 
   
Total
35,827,063
 
4,217
   
 
   
To approve the new fundamental policy relating to investments in municipal securities for the Fund.
                       
For
27,191,240
 
4,217
   
 
   
Against
1,288,668
 
   
 
   
Abstain
823,892
 
   
 
   
Broker Non-Votes
6,523,263
 
   
 
   
Total
35,827,063
 
4,217
   
 
   
To approve the elimination of the fundamental policy relating to investing in other investment companies.
                       
For
27,116,616
 
4,217
   
 
   
Against
1,388,228
 
   
 
   
Abstain
798,956
 
   
 
   
Broker Non-Votes
6,523,263
 
   
 
   
Total
35,827,063
 
4,217
   
 
   
To approve the elimination of the fundamental policy relating to derivatives and short sales.
                       
For
26,982,716
 
4,217
   
 
   
Against
1,470,989
 
   
 
   
Abstain
847,335
 
   
 
   
Broker Non-Votes
6,526,023
 
   
 
   
Total
35,827,063
 
4,217
   
 
   
To approve the elimination of the fundamental policy relating to commodities.
                       
For
27,040,144
 
4,217
   
 
   
Against
1,419,923
 
   
 
   
Abstain
843,733
 
   
 
   
Broker Non-Votes
6,523,263
 
   
 
   
Total
35,827,063
 
4,217
   
 
   
To approve the new fundamental policy relating to commodities.
                       
For
27,051,898
 
4,217
   
 
   
Against
1,405,466
 
   
 
   
Abstain
846,435
 
   
 
   
Broker Non-Votes
6,523,264
 
   
 
   
Total
35,827,063
 
4,217
   
 
   

Nuveen Investments
 
21

 
 

 

NAD
 
Shareholder Meeting Report (continued)
NXZ
   
NZF
   

    NAD       NXZ       NZF
 
Common and
       
Common and
       
Common and
   
 
Preferred
 
Preferred
   
Preferred
 
Preferred
   
Preferred
 
Preferred
 
shares voting
 
shares voting
   
shares voting
 
shares voting
   
shares voting
 
shares voting
 
together
 
together
   
together
 
together
   
together
 
together
 
as a class
 
as a class
   
as a class
 
as a class
   
as a class
 
as a class
Approval of the Board Members was reached as follows:
                     
John P. Amboian
                         
For
32,678,056
 
   
19,233,897
 
   
30,134,574
 
Withhold
2,823,882
 
   
485,309
 
   
2,295,695
 
Total
35,501,938
 
   
19,719,206
 
   
32,430,269
 
Robert P. Bremner
                         
For
 
   
 
   
 
Withhold
 
   
 
   
 
Total
 
   
 
   
 
Jack B. Evans
                         
For
 
   
 
   
 
Withhold
 
   
 
   
 
Total
 
   
 
   
 
William C. Hunter
                         
For
 
6,063,605
   
 
980
   
 
2,696,551
Withhold
 
1,814,505
   
 
890
   
 
1,148,402
Total
 
7,878,110
   
 
1,870
   
 
3,844,953
David J. Kundert
                         
For
32,651,010
 
   
19,231,909
 
   
30,060,207
 
Withhold
2,850,928
 
   
487,297
 
   
2,370,062
 
Total
35,501,938
 
   
19,719,206
 
   
32,430,269
 
William J. Schneider
                         
For
 
6,057,605
   
 
980
   
 
2,675,551
Withhold
 
1,820,505
   
 
890
   
 
1,169,402
Total
 
7,878,110
   
 
1,870
   
 
3,844,953
Judith M. Stockdale
                         
For
 
   
 
   
 
Withhold
 
   
 
   
 
Total
 
   
 
   
 
Carole E. Stone
                         
For
 
   
 
   
 
Withhold
 
   
 
   
 
Total
 
   
 
   
 
Virginia L. Stringer
                         
For
 
   
 
   
 
Withhold
 
   
 
   
 
Total
 
   
 
   
 
Terence J. Toth
                         
For
32,673,584
 
   
19,235,559
 
   
30,098,334
 
Withhold
2,828,354
 
   
483,647
 
   
2,331,935
 
Total
35,501,938
 
   
19,719,206
 
   
32,430,269
 

22
 
Nuveen Investments

 
 

 

    NAD       NXZ       NZF
 
Common and
       
Common and
       
Common and
   
 
Preferred
 
Preferred
   
Preferred
 
Preferred
   
Preferred
 
Preferred
 
shares voting
 
shares voting
   
shares voting
 
shares voting
   
shares voting
 
shares voting
 
together
 
together
   
together
 
together
   
together
 
together
 
as a class
 
as a class
   
as a class
 
as a class
   
as a class
 
as a class
To approve the elimination of the Fund’s fundamental investment policy relating to the Fund’s ability to make loans
                         
For
27,540,704
 
6,014,727
   
14,235,647
 
1,870
   
24,332,520
 
3,078,116
Against
1,672,565
 
386,013
   
907,917
 
   
1,824,471
 
194,744
Abstain
873,794
 
161,847
   
424,813
 
   
795,844
 
128,287
Broker Non-Votes
5,877,009
 
1,739,090
   
4,150,829
 
   
5,793,428
 
721,043
Total
35,964,072
 
8,301,677
   
19,719,206
 
1,870
   
32,746,263
 
4,122,190
To approve the new fundamental investment policy relating to the Fund’s ability to make loans
                         
For
27,473,416
 
6,010,227
   
14,210,274
 
1,870
   
24,285,290
 
3,060,616
Against
1,737,153
 
390,505
   
922,397
 
   
1,847,956
 
212,244
Abstain
876,494
 
161,855
   
435,704
 
   
819,589
 
128,287
Broker Non-Votes
5,877,009
 
1,739,090
   
4,150,831
 
   
5,793,428
 
721,043
Total
35,964,072
 
8,301,677
   
19,719,206
 
1,870
   
32,746,263
 
4,122,190

Nuveen Investments
 
23

 
 

 

Report of Independent
Registered Public Accounting Firm
 
The Board of Directors/Trustees and Shareholders
Nuveen Performance Plus Municipal Fund, Inc.
Nuveen Municipal Advantage Fund, Inc.
Nuveen Municipal Market Opportunity Fund, Inc.
Nuveen Dividend Advantage Municipal Fund
Nuveen Dividend Advantage Municipal Fund 2
Nuveen Dividend Advantage Municipal Fund 3
 
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Performance Plus Municipal Fund, Inc., Nuveen Municipal Advantage Fund, Inc., Nuveen Municipal Market Opportunity Fund, Inc., Nuveen Dividend Advantage Municipal Fund, Nuveen Dividend Advantage Municipal Fund 2, and Nuveen Dividend Advantage Municipal Fund 3 (the “Funds”) as of October 31, 2011, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Performance Plus Municipal Fund, Inc., Nuveen Municipal Advantage Fund, Inc., Nuveen Municipal Market Opportunity Fund, Inc., Nuveen Dividend Advantage Municipal Fund, Nuveen Dividend Advantage Municipal Fund 2, and Nuveen Dividend Advantage Municipal Fund 3 at October 31, 2011, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
 
 
Chicago, Illinois
December 28, 2011

24
 
Nuveen Investments
 
 
 

 
 
   
Nuveen Performance Plus Municipal Fund, Inc.
NPP
 
Portfolio of Investments
   
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Alabama – 0.2% (0.2% of Total Investments)
           
     
Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A:
           
$
1,435
 
5.625%, 2/01/22 – FGIC Insured
1/12 at 100.00
Caa3
 
$
1,036,084
 
 
1,505
 
5.375%, 2/01/27 – FGIC Insured
1/12 at 100.00
Caa3
   
1,087,062
 
 
2,940
 
Total Alabama
       
2,123,146
 
     
Alaska – 0.8% (0.5% of Total Investments)
           
     
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A:
           
 
7,500
 
5.000%, 6/01/32
6/14 at 100.00
B2
   
5,364,525
 
 
2,465
 
5.000%, 6/01/46
6/14 at 100.00
B2
   
1,562,588
 
 
9,965
 
Total Alaska
       
6,927,113
 
     
Arizona – 2.2% (1.5% of Total Investments)
           
 
1,000
 
Arizona State Transportation Board, Highway Revenue Bonds, Series 2002B, 5.250%, 7/01/22 (Pre-refunded 7/01/12)
7/12 at 100.00
AAA
   
1,033,590
 
 
7,780
 
Phoenix Civic Improvement Corporation, Arizona, Junior Lien Airport Revenue Bonds, Series 2010A, 5.000%, 7/01/40
No Opt. Call
A+
   
7,969,132
 
     
Phoenix Civic Improvement Corporation, Arizona, Senior Lien Airport Revenue Bonds, Series 2002B:
           
 
5,365
 
5.750%, 7/01/15 – FGIC Insured (Alternative Minimum Tax)
7/12 at 100.00
AA–
   
5,501,217
 
 
5,055
 
5.750%, 7/01/16 – FGIC Insured (Alternative Minimum Tax)
7/12 at 100.00
AA–
   
5,172,428
 
 
19,200
 
Total Arizona
       
19,676,367
 
     
Arkansas – 0.5% (0.3% of Total Investments)
           
 
5,080
 
Independence County, Arkansas, Hydroelectric Power Revenue Bonds, Series 2003, 5.350%, 5/01/28 – ACA Insured
5/13 at 100.00
N/R
   
3,528,619
 
 
1,000
 
Washington County, Arkansas, Hospital Revenue Bonds, Washington Regional Medical Center, Series 2005A, 5.000%, 2/01/35
2/15 at 100.00
Baa1
   
1,004,830
 
 
6,080
 
Total Arkansas
       
4,533,449
 
     
California – 21.6% (14.6% of Total Investments)
           
 
3,500
 
Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue
Bonds,
Series 2004A, 0.000%, 10/01/25 – AMBAC Insured
10/17 at 100.00
A–
   
3,119,410
 
 
15,870
 
Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/20 – AGM Insured
No Opt. Call
AA–
   
10,102,366
 
     
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
   
4,155,960
 
 
3,175
 
5.375%, 5/01/22 (Pre-refunded 5/01/12)
5/12 at 101.00
Aaa
   
3,288,887
 
 
3,365
 
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33
3/13 at 100.00
A
   
3,297,734
 
     
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006:
           
 
5,000
 
5.000%, 4/01/37
4/16 at 100.00
A+
   
4,897,600
 
 
7,000
 
5.250%, 4/01/39
4/16 at 100.00
A+
   
7,020,160
 
 
2,330
 
California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series 2010A, 5.750%, 7/01/40
7/20 at 100.00
Baa2
   
2,277,016
 
 
3,700
 
California Pollution Control Financing Authority, Revenue Bonds, Pacific Gas
and Electric
Company, Series 2004C, 4.750%, 12/01/23 – FGIC Insured
(Alternative Minimum Tax)
6/17 at 100.00
A3
   
3,837,492
 
 
5,000
 
California State, General Obligation Bonds, Series 2005, 5.000%, 3/01/31
3/16 at 100.00
A1
   
5,062,750
 
 
10,000
 
California State, General Obligation Bonds, Various Purpose Series 2011, 5.000%, 10/01/41
10/21 at 100.00
A1
   
10,003,400
 
 
16,000
 
California State, Various Purpose General Obligation Bonds, Series 2007, 5.000%, 6/01/37
6/17 at 100.00
A1
   
16,034,080
 
 
6,435
 
California, General Obligation Refunding Bonds, Series 2002, 6.000%, 4/01/16 – AMBAC Insured
No Opt. Call
A1
   
7,503,854
 
 
5,000
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/32 – AGM Insured
8/18 at 100.00
AA+
   
4,605,000
 
 
Nuveen Investments
 
25

 
 

 

   
Nuveen Performance Plus Municipal Fund, Inc. (continued)
NPP  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
$
7,240
 
Desert Community College District, Riverside County, California, General Obligation Bonds, Election 2004 Series 2007C, 0.000%, 8/01/28 – AGM Insured
8/17 at 56.01
Aa2
 
$
2,652,736
 
 
10,000
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
10,974,000
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
2,600
 
4.500%, 6/01/27
6/17 at 100.00
BBB–
   
2,103,920
 
 
1,500
 
5.125%, 6/01/47
6/17 at 100.00
BB+
   
976,800
 
 
10,000
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
   
6,379,100
 
 
5,000
 
Los Angeles Community College District, California, General Obligation Bonds, Series 2007C, 5.000%, 8/01/32 – FGIC Insured
8/17 at 100.00
Aa1
   
5,252,950
 
     
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2003A:
           
 
3,390
 
5.000%, 7/01/38 – FGIC Insured
7/12 at 100.00
AA
   
3,396,272
 
 
5,500
 
5.125%, 7/01/40 – FGIC Insured
7/12 at 100.00
AA
   
5,554,285
 
 
2,495
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2009A, 5.375%, 7/01/34
No Opt. Call
AA
   
2,730,378
 
 
3,300
 
M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39
No Opt. Call
A
   
3,722,367
 
 
1,000
 
Mt. Diablo Hospital District, California, Insured Hospital Revenue Bonds, Series 1993A, 5.125%, 12/01/23 – AMBAC Insured (ETM)
12/11 at 100.00
N/R (4)
   
1,155,130
 
 
2,000
 
Murrieta Valley Unified School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2006A, 5.125%, 9/01/26 – AGM Insured
9/16 at 100.00
AA+
   
2,076,060
 
 
13,450
 
Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.200%, 8/01/17 – NPFG Insured
No Opt. Call
Baa1
   
15,108,385
 
 
2,325
 
Palmdale Community Redevelopment Agency, California, Restructured Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
2,978,790
 
 
2,525
 
Palmdale, California, Certificates of Participation, Park Improvement and Avenue Construction, Series 2002, 5.000%, 9/01/32 – NPFG Insured
9/12 at 102.00
A1
   
2,370,874
 
 
4,795
 
Palomar Pomerado Health, California, General Obligation Bonds, Election of 2004, Series 2007A, 5.000%, 8/01/32 – NPFG Insured
No Opt. Call
A+
   
4,836,333
 
 
2,100
 
Rancho Mirage Joint Powers Financing Authority, California, Certificates of Participation, Eisenhower Medical Center, Series 1997B, 4.875%, 7/01/22 – NPFG Insured
7/15 at 102.00
Baa1
   
2,102,961
 
 
1,830
 
San Diego Public Facilities Financing Authority, California, Water Utility Revenue Bonds, Tender Option Bond Trust 3504, 19.608%, 2/01/33 (IF)
8/19 at 100.00
Aa2
   
2,496,413
 
     
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A:
           
 
7,210
 
0.000%, 1/15/23 – NPFG Insured
No Opt. Call
Baa1
   
2,998,495
 
 
12,500
 
0.000%, 1/15/32 – NPFG Insured
No Opt. Call
Baa1
   
2,245,375
 
 
3,000
 
0.000%, 1/15/35 – NPFG Insured
No Opt. Call
Baa1
   
421,830
 
 
4,005
 
San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Election of 2000, Series 2002B, 0.000%, 9/01/26 – FGIC Insured
No Opt. Call
Aa1
   
1,828,803
 
 
3,020
 
Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 4.750%, 6/01/23
6/15 at 100.00
BBB
   
2,598,770
 
 
2,630
 
Union Elementary School District, Santa Clara County, California, General Obligation Bonds, Series 2001B, 0.000%, 9/01/25 – FGIC Insured
No Opt. Call
AA+
   
1,248,671
 
 
3,000
 
University of California, General Revenue Bonds, Series 2005F, 4.750%, 5/15/25 – AGM Insured
5/13 at 101.00
AA+
   
3,148,050
 
 
5,245
 
Vacaville Unified School District, California, General Obligation Bonds, Series 2005, 5.000%, 8/01/30 – NPFG Insured
8/15 at 100.00
A+
   
5,358,712
 
 
10,415
 
Walnut Valley Unified School District, Los Angeles County, California, General Obligation Refunding Bonds, Series 1997A, 7.200%, 2/01/16 – NPFG Insured
2/12 at 103.00
AA–
   
10,897,839
 
 
222,450
 
Total California
       
192,820,008
 
 
26
 
Nuveen Investments

 
 

 
 
 
Principal
 
 
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Colorado – 8.9% (6.0% of Total Investments)
           
$
5,240
 
Adams 12 Five Star Schools, Adams County, Colorado, General Obligation Bonds, Series 2005, 5.000%, 12/15/24 – AGM Insured
12/15 at 100.00
AA+
 
$
5,736,804
 
 
3,000
 
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/34 – SYNCORA GTY Insured
8/14 at 100.00
A
   
2,954,670
 
 
2,000
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Valley View Hospital Association, Series 2007, 5.250%, 5/15/42
5/17 at 100.00
BBB+
   
1,810,400
 
 
10,000
 
Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40
No Opt. Call
AA
   
9,887,500
 
 
20,000
 
Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) – SYNCORA GTY Insured
12/13 at 100.00
N/R (4)
   
21,715,000
 
 
13,055
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B, 0.000%, 9/01/21 – NPFG Insured
No Opt. Call
Baa1
   
7,172,025
 
     
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B:
           
 
16,200
 
0.000%, 9/01/32 – NPFG Insured
No Opt. Call
Baa1
   
3,906,630
 
 
33,120
 
0.000%, 9/01/33 – NPFG Insured
No Opt. Call
Baa1
   
7,412,918
 
     
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A:
           
 
5,000
 
0.000%, 9/01/28 – NPFG Insured
No Opt. Call
Baa1
   
1,647,500
 
 
18,500
 
0.000%, 3/01/36 – NPFG Insured
No Opt. Call
Baa1
   
3,418,615
 
 
755
 
Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/22 (Pre-refunded 12/15/14) – AGM Insured (UB)
12/14 at 100.00
Aa2 (4)
   
854,607
 
     
Regional Transportation District, Colorado, Denver Transit Partners Eagle P3 Project Private Activity Bonds, Series 2010:
           
 
5,000
 
6.500%, 1/15/30
7/20 at 100.00
Baa3
   
5,356,000
 
 
3,750
 
6.000%, 1/15/41
7/20 at 100.00
Baa3
   
3,820,838
 
 
3,315
 
University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured
6/15 at 100.00
Aa2
   
3,546,719
 
 
138,935
 
Total Colorado
       
79,240,226
 
     
District of Columbia – 1.5% (1.0% of Total Investments)
           
 
4,395
 
District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
11/11 at 101.00
A1
   
4,397,154
 
 
4,245
 
District of Columbia, Revenue Bonds, National Public Radio, Series 2010A, 5.000%, 4/01/43
4/15 at 100.00
AA–
   
4,302,647
 
 
5,000
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Senior Lien Refunding Series 2007A, 4.500%, 10/01/30 – AMBAC Insured
10/16 at 100.00
A1
   
4,740,250
 
 
13,640
 
Total District of Columbia
       
13,440,051
 
     
Florida – 7.1% (4.8% of Total Investments)
           
 
1,700
 
Beacon Tradeport Community Development District, Miami-Dade County, Florida, Special Assessment Bonds, Commercial Project, Series 2002A, 5.625%, 5/01/32 – RAAI Insured
5/12 at 102.00
N/R
   
1,529,269
 
     
Broward County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Venice Homes Apartments, Series 2001A:
           
 
1,545
 
5.700%, 1/01/32 – AGM Insured (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
1,545,572
 
 
1,805
 
5.800%, 1/01/36 – AGM Insured (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
1,805,632
 
 
5,300
 
Escambia County Health Facilities Authority, Florida, Revenue Bonds, Ascension Health Credit Group, Series 2003A, 5.250%, 11/15/14
No Opt. Call
AA+
   
5,954,709
 
 
3,820
 
Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, Series 2006-2, 4.950%, 7/01/37 (Alternative Minimum Tax)
1/16 at 100.00
AA+
   
3,841,889
 
 
7,000
 
Hillsborough County Aviation Authority, Florida, Revenue Bonds, Tampa International Airport, Series 2003A, 5.250%, 10/01/17 – NPFG Insured (Alternative Minimum Tax)
10/13 at 100.00
A+
   
7,392,350
 
 
1,120
 
Jacksonville, Florida, Capital Improvement Revenue Bonds, Series 1998 Refunding, Stadium Project, 4.750%, 10/01/25 – AMBAC Insured
4/12 at 100.00
N/R
   
1,119,955
 
 
10,000
 
JEA, Florida, Electric System Revenue Bonds, Series Three 2006A, 5.000%, 10/01/41 – AGM Insured (UB)
4/15 at 100.00
Aa2
   
10,221,500
 
 
10,750
 
Martin County Industrial Development Authority, Florida, Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
12/11 at 100.00
BB+
   
10,783,540
 
 
Nuveen Investments
 
27

 
 

 

   
Nuveen Performance Plus Municipal Fund, Inc. (continued)
NPP  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Florida (continued)
           
$
3,500
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2005A, 5.000%, 10/01/37 – SYNCORA GTY Insured (Alternative Minimum Tax)
10/15 at 100.00
A2
 
$
3,326,785
 
 
5,000
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010A-1, 5.375%, 10/01/41
10/20 at 100.00
A2
   
5,149,650
 
 
2,500
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010B, 5.000%, 10/01/27
10/20 at 100.00
A2
   
2,591,825
 
 
1,665
 
Orange County Health Facilities Authority, Florida, Orlando Regional Healthcare System Revenue Bonds, Series 2009, 5.125%, 10/01/26
10/19 at 100.00
A
   
1,676,772
 
     
Port Saint Lucie, Florida, Special Assessment Revenue Bonds, Southwest Annexation District 1B, Series 2007:
           
 
2,000
 
5.000%, 7/01/33 – NPFG Insured
7/17 at 100.00
Baa1
   
1,893,520
 
 
4,700
 
5.000%, 7/01/40 – NPFG Insured
7/17 at 100.00
Baa1
   
4,311,968
 
 
62,405
 
Total Florida
       
63,144,936
 
     
Georgia – 1.4% (1.0% of Total Investments)
           
 
5,000
 
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 1999A, 5.500%, 11/01/22 – FGIC Insured
No Opt. Call
A1
   
5,793,050
 
 
2,000
 
DeKalb County Hospital Authority, Georgia, Anticipation Certificates Revenue Bonds, DeKalb Medical Center, Inc. Project, Series 2010, 6.000%, 9/01/30
9/20 at 100.00
N/R
   
2,065,520
 
 
2,500
 
Medical Center Hospital Authority, Georgia, Revenue Anticipation Certificates, Columbus Regional Healthcare System, Inc. Project, Series 2008, 6.500%, 8/01/38 – AGC Insured
8/18 at 100.00
AA+
   
2,741,600
 
 
2,000
 
George L. Smith II World Congress Center Authority, Atlanta, Georgia, Revenue Refunding Bonds, Domed Stadium Project, Series 200, 5.500%, 7/01/20 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
Baa1
   
2,003,240
 
 
11,500
 
Total Georgia
       
12,603,410
 
     
Idaho – 0.0% (0.0% of Total Investments)
           
 
200
 
Idaho Housing and Finance Association, Single Family Mortgage Bonds, Series 2000D, 6.200%, 7/01/14 (Alternative Minimum Tax)
1/12 at 100.00
A1
   
203,900
 
 
275
 
Idaho Housing and Finance Association, Single Family Mortgage Bonds, Series 2000G-2, 5.950%, 7/01/25 (Alternative Minimum Tax)
1/12 at 100.00
Aa2
   
288,222
 
 
475
 
Total Idaho
       
492,122
 
     
Illinois – 27.1% (18.3% of Total Investments)
           
 
1,470
 
Chicago Board of Education, Cook County, Illinois, General Obligation Bonds, Dedicated Revenues Series 2011A, 5.000%, 12/01/41 (WI/DD, Settling 11/01/11)
12/12 at 100.00
AA–
   
1,470,515
 
 
10,000
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/19 – FGIC Insured
No Opt. Call
AA–
   
7,300,900
 
 
10,000
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 – FGIC Insured
No Opt. Call
AA–
   
6,906,800
 
     
Chicago, Illinois, General Obligation Bonds, City Colleges, Series 1999:
           
 
32,170
 
0.000%, 1/01/21 – FGIC Insured
No Opt. Call
Aa3
   
21,307,800
 
 
32,670
 
0.000%, 1/01/22 – FGIC Insured
No Opt. Call
Aa3
   
20,381,833
 
 
9,240
 
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1996A, 5.500%, 1/01/29 – NPFG Insured
1/12 at 100.00
A
   
9,246,745
 
 
1,665
 
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.000%, 1/01/33 – FGIC Insured
1/16 at 100.00
A1
   
1,675,140
 
 
5,325
 
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
   
5,504,879
 
     
DuPage County Forest Preserve District, Illinois, General Obligation Bonds, Series 2000:
           
 
8,000
 
0.000%, 11/01/18
No Opt. Call
AAA
   
6,490,320
 
 
15,285
 
0.000%, 11/01/19
No Opt. Call
AAA
   
11,787,028
 
 
5,000
 
Illinois Educational Facilities Authority, Revenue Bonds, University of Chicago, Refunding Series 2003A, 5.000%, 7/01/33
7/13 at 100.00
Aa1
   
5,063,050
 
 
1,500
 
Illinois Finance Authority, Revenue Bonds, Central DuPage Health, Series 2009B, 5.500%, 11/01/39
11/19 at 100.00
AA
   
1,555,455
 
 
2,000
 
Illinois Finance Authority, Revenue Bonds, Children’s Memorial Hospital, Series 2008A, 5.250%, 8/15/47 – AGC Insured (UB)
8/18 at 100.00
AA–
   
2,017,680
 
 
28
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Illinois (continued)
           
$
5,245
 
Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond Trust 1137, 9.132%, 7/01/15 (IF)
No Opt. Call
Aa1
 
$
5,567,148
 
 
3,000
 
Illinois Finance Authority, Revenue Bonds, Memorial Health System, Series 2009, 5.500%, 4/01/34
No Opt. Call
A+
   
3,044,520
 
 
2,500
 
Illinois Finance Authority, Revenue Bonds, The University of Chicago Medical Center, Series 2011C, 5.500%, 8/15/41
2/21 at 100.00
AA–
   
2,634,500
 
 
1,000
 
Illinois Finance Authority, Revenue Bonds, University of Chicago, Series 2004A, 5.000%, 7/01/34
7/14 at 100.00
Aa1
   
1,026,630
 
     
Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical Centers, Series 2008A:
           
 
2,250
 
6.000%, 8/15/23
8/18 at 100.00
BBB
   
2,294,933
 
 
3,000
 
5.500%, 8/15/30
8/18 at 100.00
BBB
   
2,762,280
 
 
4,990
 
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., Refunding Series 2007A, 5.250%, 5/01/34
5/17 at 100.00
Baa3
   
4,559,912
 
 
4,590
 
Illinois Health Facilities Authority, FHA-Insured Mortgage Revenue Refunding Bonds, Sinai Health System, Series 2003, 5.150%, 2/15/37
8/13 at 100.00
Aa2
   
4,607,901
 
 
1,195
 
Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital, Series 2002A, 5.750%, 7/01/29
7/12 at 100.00
AA+
   
1,207,798
 
 
3,610
 
Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital, Series 2003, 6.000%, 7/01/33
7/13 at 100.00
AA+
   
3,680,359
 
 
1,900
 
Illinois Health Facilities Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series 1999, 5.250%, 8/15/15 (Mandatory put 8/15/12)
2/12 at 100.00
BBB+
   
1,902,489
 
 
7,250
 
Kane, Kendall, LaSalle, and Will Counties, Illinois, Community College District 516, General Obligation Bonds, Series 2005E, 0.000%, 12/15/24 – FGIC Insured
12/13 at 57.71
AA+
   
3,714,465
 
 
5,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 5.250%, 6/15/42 – NPFG Insured
6/12 at 101.00
AAA
   
5,007,750
 
 
10,650
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Hospitality Facility, Series 1996A, 7.000%, 7/01/26 (ETM)
No Opt. Call
AAA
   
14,558,870
 
     
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A:
           
 
9,400
 
0.000%, 12/15/18 – NPFG Insured
No Opt. Call
AA–
   
7,140,334
 
 
16,570
 
0.000%, 12/15/20 – NPFG Insured
No Opt. Call
AA–
   
11,140,342
 
 
23,680
 
0.000%, 12/15/22 – NPFG Insured
No Opt. Call
AA–
   
13,925,261
 
 
13,190
 
0.000%, 12/15/24 – NPFG Insured
No Opt. Call
AA–
   
6,723,207
 
 
5,100
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 12/15/23 – FGIC Insured
No Opt. Call
AAA
   
5,697,771
 
 
5,180
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 12/15/23 – FGIC Insured (ETM)
No Opt. Call
AA– (4)
   
6,335,762
 
 
3,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.750%, 6/15/23 – NPFG Insured
6/12 at 101.00
AAA
   
3,107,880
 
 
2,685
 
Midlothian, Illinois, General Obligation Bonds, Series 2010A, 5.000%, 2/01/30 – AGM Insured
2/20 at 100.00
AA+
   
2,745,815
 
 
17,865
 
Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999, 5.750%, 6/01/23 – AGM Insured
No Opt. Call
AA+
   
21,363,860
 
 
2,250
 
Valley View Public Schools, Community Unit School District 365U of Will County, Illinois, General Obligation Bonds, Series 2005, 0.000%, 11/01/25 – NPFG Insured
No Opt. Call
AA
   
1,062,473
 
 
10,000
 
Will County Community High School District 210 Lincoln-Way, Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 – AGM Insured
No Opt. Call
Aa2
   
5,846,400
 
 
299,425
 
Total Illinois
       
242,366,805
 
     
Indiana – 2.6% (1.8% of Total Investments)
           
 
3,000
 
Hospital Authority of Delaware County, Indiana, Hospital Revenue Bonds, Cardinal Health System, Series 2006, 5.250%, 8/01/36
8/16 at 100.00
Baa3
   
2,713,320
 
 
750
 
Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Clarian Health Obligation Group, Series 2006B, 5.000%, 2/15/23
2/16 at 100.00
A+
   
777,690
 
 
1,305
 
Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%, 3/01/34 – AMBAC Insured
3/14 at 100.00
A
   
1,309,711
 
 
Nuveen Investments
 
29

 
 

 

   
Nuveen Performance Plus Municipal Fund, Inc. (continued)
NPP  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Indiana (continued)
           
$
1,570
 
Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 – AGM Insured
No Opt. Call
AA+
 
$
1,726,984
 
 
4,320
 
Indiana Health Facility Financing Authority, Revenue Bonds, Ancilla Systems Inc. Obligated Group, Series 1997, 5.250%, 7/01/22 – NPFG Insured (ETM)
1/12 at 100.00
BBB (4)
   
4,336,070
 
 
3,000
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37
3/17 at 100.00
BBB+
   
2,953,410
 
 
2,000
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 – AMBAC Insured
5/15 at 100.00
A
   
1,955,380
 
 
3,105
 
Indiana University, Student Fee Revenue Bonds, Series 2003O, 5.250%, 8/01/20 (Pre-refunded 8/01/13) – FGIC Insured
8/13 at 100.00
Aaa
   
3,367,217
 
 
2,395
 
Shelbyville Central Renovation School Building Corporation, Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/26 – NPFG Insured
7/15 at 100.00
AA+
   
2,447,474
 
 
1,800
 
Sunman Dearborn High School Building Corporation, Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/25 – NPFG Insured
1/15 at 100.00
AA+
   
1,885,788
 
 
23,245
 
Total Indiana
       
23,473,044
 
     
Iowa – 1.8% (1.2% of Total Investments)
           
 
1,500
 
Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A, 5.500%, 7/01/21
7/16 at 100.00
BB+
   
1,358,385
 
     
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C:
           
 
5,000
 
5.375%, 6/01/38
6/15 at 100.00
BBB
   
3,666,000
 
 
4,465
 
5.500%, 6/01/42
6/15 at 100.00
BBB
   
3,235,071
 
 
5,400
 
5.625%, 6/01/46
6/15 at 100.00
BBB
   
3,874,284
 
 
4,500
 
Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34
6/17 at 100.00
BBB
   
3,785,535
 
 
20,865
 
Total Iowa
       
15,919,275
 
     
Kansas – 0.7% (0.5% of Total Investments)
           
 
3,790
 
Kansas Department of Transportation, Highway Revenue Bonds, Series 2004A, 5.000%, 3/01/23 (UB)
3/14 at 100.00
AAA
   
4,092,518
 
 
3,730
 
Wyandotte County-Kansas City Unified Government, Kansas, Sales Tax Special Obligation Capital Appreciation Revenue Bonds Redevelopment Project Area B – Major Multi-Sport Athletic Complex Project, Subordinate Lien Series 2010B, 0.000%, 6/01/21
No Opt. Call
BBB
   
2,240,089
 
 
7,520
 
Total Kansas
       
6,332,607
 
     
Louisiana – 3.1% (2.1% of Total Investments)
           
 
385
 
East Baton Rouge Mortgage Finance Authority, Louisiana, GNMA/FNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Refunding Bonds, Series 1997B-1, 5.750%, 10/01/26
4/12 at 100.00
Aaa
   
385,412
 
 
4,000
 
Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, Series 2004, 5.250%, 11/01/25 – NPFG Insured
11/14 at 100.00
A+
   
4,347,680
 
 
4,750
 
Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 – NPFG Insured
7/14 at 100.00
Baa1
   
4,864,048
 
 
1,000
 
Louisiana State University and Agricultural and Mechanical College Board of Supervisors, Auxiliary Revenue Bonds, University Health Sciences Center Projects, Series 2000, 6.375%, 5/01/31 – NPFG Insured
5/12 at 100.00
Baa1
   
1,008,450
 
     
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B:
           
 
7,530
 
5.500%, 5/15/30
11/11 at 101.00
A1
   
7,539,714
 
 
9,655
 
5.875%, 5/15/39
11/11 at 101.00
A–
   
9,661,372
 
 
27,320
 
Total Louisiana
       
27,806,676
 
     
Maine – 0.8% (0.5% of Total Investments)
           
 
1,050
 
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, MaineGeneral Medical Center, Series 2011, 6.750%, 7/01/41
7/21 at 100.00
Baa3
   
1,083,705
 
 
5,680
 
Portland, Maine, Airport Revenue Bonds, Series 2003A, 5.000%, 7/01/32 – AGM Insured
7/13 at 100.00
AA+
   
5,837,336
 
 
6,730
 
Total Maine
       
6,921,041
 
 
30
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Maryland – 1.4% (0.9% of Total Investments)
           
$
2,550
 
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Washington County Hospital, Series 2008, 6.000%, 1/01/28
No Opt. Call
BBB–
 
$
2,620,380
 
 
7,720
 
Maryland Transportation Authority, Airport Parking Revenue Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/20 – AMBAC Insured (Alternative Minimum Tax)
3/12 at 101.00
A2
   
7,837,730
 
 
1,555
 
Takoma Park, Maryland, Hospital Facilities Revenue Refunding and Improvement Bonds, Washington Adventist Hospital, Series 1995, 6.500%, 9/01/12 – AGM Insured (ETM)
No Opt. Call
AA– (4)
   
1,631,102
 
 
11,825
 
Total Maryland
       
12,089,212
 
     
Massachusetts – 4.4% (3.0% of Total Investments)
           
 
6,250
 
Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Senior Lien Series 2010B, 5.000%, 1/01/37
1/20 at 100.00
A
   
6,498,063
 
     
Massachusetts Development Finance Authority, Revenue Bonds, 100 Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
           
 
4,000
 
5.125%, 8/01/28 – NPFG Insured
2/12 at 100.00
Baa1
   
3,995,200
 
 
5,625
 
5.125%, 2/01/34 – NPFG Insured
2/12 at 100.00
Baa1
   
5,625,056
 
 
8,730
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 – AGC Insured
10/15 at 100.00
AA+
   
9,198,626
 
 
500
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.125%, 7/01/38
7/18 at 100.00
A–
   
495,655
 
 
1,645
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Southcoast Health System Obligated Group, Series 1998A, 4.750%, 7/01/27 – NPFG Insured
1/12 at 100.00
A2
   
1,556,943
 
 
5,745
 
Massachusetts Industrial Finance Agency, Resource Recovery Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
12/11 at 100.00
A–
   
5,763,269
 
 
890
 
Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002C, 5.250%, 11/01/30 (Pre-refunded 11/01/12)
11/12 at 100.00
AA+ (4)
   
932,862
 
     
Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002E:
           
 
1,255
 
5.250%, 1/01/22 (Pre-refunded 1/01/13) – FGIC Insured
1/13 at 100.00
Aa1 (4)
   
1,323,724
 
 
3,745
 
5.250%, 1/01/22 (Pre-refunded 1/01/13) – FGIC Insured
1/13 at 100.00
Aa1 (4)
   
3,950,076
 
 
38,385
 
Total Massachusetts
       
39,339,474
 
     
Michigan – 3.2% (2.2% of Total Investments)
           
 
5,000
 
Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 7/01/35 – NPFG Insured
7/15 at 100.00
A
   
4,955,150
 
 
2,000
 
Kalamazoo Hospital Finance Authority, Michigan, Hospital Revenue Refunding Bonds, Bronson Methodist Hospital, Series 2010, 5.250%, 5/15/36 – AGM Insured
5/20 at 100.00
Aa3
   
2,049,020
 
 
6,250
 
Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA, 0.000%, 10/15/30 – FGIC Insured
10/16 at 50.02
Aa3
   
2,180,563
 
 
5,000
 
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II, 5.000%, 10/15/29 – NPFG Insured
10/13 at 100.00
Aa3
   
5,083,150
 
 
7,115
 
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Henry Ford Health System, Series 2003A, 5.500%, 3/01/16 (Pre-refunded 3/01/13)
3/13 at 100.00
A1 (4)
   
7,597,184
 
 
3,050
 
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42
6/18 at 100.00
B2
   
2,735,789
 
 
2,500
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue and Refunding Bonds, William Beaumont Hospital Obligated Group, Series 2009W, 6.375%, 8/01/29
8/19 at 100.00
A1
   
2,700,875
 
 
1,150
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39
9/18 at 100.00
A1
   
1,366,534
 
 
32,065
 
Total Michigan
       
28,668,265
 
     
Minnesota – 2.2% (1.5% of Total Investments)
           
 
16,430
 
St. Paul Housing and Redevelopment Authority, Minnesota, Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 – AGM Insured
11/15 at 103.00
AA+
   
19,711,564
 
 
Nuveen Investments
 
31

 
 

 

   
Nuveen Performance Plus Municipal Fund, Inc. (continued)
NPP  
Portfolio of Investments
October 31, 2011
 
 
Principal
 
 
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Mississippi – 1.4% (0.9% of Total Investments)
           
$
9,750
 
Mississippi Business Finance Corporation, Pollution Control Revenue Refunding Bonds, System Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22
4/12 at 100.00
BBB
 
$
9,798,750
 
 
2,475
 
Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB)
9/14 at 100.00
AA
   
2,550,240
 
 
12,225
 
Total Mississippi
       
12,348,990
 
     
Missouri – 1.2% (0.8% of Total Investments)
           
 
2,000
 
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 – AGM Insured
10/13 at 100.00
AA+
   
2,025,980
 
 
6,350
 
Kansas City, Missouri, Airport Revenue Bonds, General Improvement Projects, Series 2003B,
5.250%, 9/01/17 – FGIC Insured
9/12 at 100.00
A+
   
6,548,374
 
 
1,845
 
Missouri Health and Educational Facilities Authority, Revenue Bonds, BJC Health System, Series 2003, 5.250%, 5/15/18
5/13 at 100.00
AA
   
1,939,925
 
 
10,195
 
Total Missouri
       
10,514,279
 
     
Montana – 0.5% (0.4% of Total Investments)
           
 
225
 
Montana Board of Housing, Single Family Mortgage Bonds, Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
12/11 at 100.00
AA+
   
229,032
 
 
4,795
 
Montana Higher Education Student Assistance Corporation, Student Loan Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31 (Alternative Minimum Tax)
12/11 at 100.00
A2
   
4,507,444
 
 
5,020
 
Total Montana
       
4,736,476
 
     
Nevada – 5.2% (3.5% of Total Investments)
           
 
10,900
 
Clark County School District, Nevada, General Obligation Bonds, Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) – NPFG Insured
6/12 at 100.00
AA (4)
   
11,257,629
 
 
24,195
 
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42
1/20 at 100.00
Aa3
   
24,897,139
 
     
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
           
 
3,500
 
0.000%, 1/01/21 – AMBAC Insured
No Opt. Call
N/R
   
472,500
 
 
2,780
 
0.000%, 1/01/28 – AMBAC Insured
No Opt. Call
N/R
   
247,142
 
 
6,980
 
5.375%, 1/01/40 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
1,605,400
 
 
5,000
 
Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare West, Series 2007A: 5.250%, 7/01/31
7/17 at 100.00
A
   
5,022,700
 
 
2,500
 
Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare West, Series 2007A, Trust 2634, 18.534%, 7/01/31 – BHAC Insured (IF)
7/17 at 100.00
AA+
   
2,838,000
 
 
55,855
 
Total Nevada
       
46,340,510
 
     
New Hampshire – 0.6% (0.4% of Total Investments)
           
 
5,000
 
New Hampshire Business Finance Authority, Revenue Bonds, Elliot Hospital Obligated Group Issue, Series 2009A, 6.125%, 10/01/39
10/19 at 100.00
BBB+
   
4,914,400
 
     
New Jersey – 6.7% (4.5% of Total Investments)
           
 
1,500
 
New Jersey Health Care Facilities Financing Authority, New Jersey, Revenue Bonds, Saint Peters University Hospital, Series 2007, 5.750%, 7/01/37
7/18 at 100.00
BBB–
   
1,438,755
 
 
2,110
 
New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
Aaa
   
2,117,364
 
 
4,500
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2001C, 5.500%, 12/15/18 – AGM Insured
No Opt. Call
AA+
   
5,286,420
 
 
9,250
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C, 5.500%, 6/15/23 (Pre-refunded 6/15/13)
6/13 at 100.00
Aaa
   
10,016,270
 
     
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C:
           
 
10,000
 
0.000%, 12/15/30 – FGIC Insured
No Opt. Call
A+
   
3,288,100
 
 
38,000
 
0.000%, 12/15/33 – AGM Insured
No Opt. Call
AA–
   
10,550,700
 
 
10,000
 
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 1/01/20 – AGM Insured (UB)
7/13 at 100.00
AA–
   
10,559,300
 
 
7,655
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
7,900,955
 
 
32
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
New Jersey (continued)
           
$
4,450
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
 
$
4,897,626
 
 
5,000
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
6/17 at 100.00
BB+
   
3,360,350
 
 
92,465
 
Total New Jersey
       
59,415,840
 
     
New York – 5.3% (3.6% of Total Investments)
           
 
5,500
 
Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25
2/14 at 100.00
AAA
   
5,636,290
 
 
1,560
 
Dormitory Authority of the State of New York, Insured Revenue Bonds, 853 Schools Program, Gateway-Longview Inc., Series 1998A, 5.500%, 7/01/18 – AMBAC Insured
1/12 at 100.00
N/R
   
1,562,434
 
 
1,500
 
Dormitory Authority of the State of New York, Revenue Bonds, St. Barnabas Hospital, Series1997, 5.450%, 8/01/35 – AMBAC Insured
2/12 at 100.00
N/R
   
1,501,095
 
 
3,000
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47
No Opt. Call
A
   
3,051,600
 
 
13,220
 
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 2002A, 5.500%, 11/15/26 – AGM Insured
11/12 at 100.00
AA+
   
13,728,045
 
 
13,600
 
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2006B, 4.500%, 11/15/32 – AGM Insured (UB)
11/16 at 100.00
AA–
   
13,712,608
 
 
2,000
 
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2004B, 5.000%, 8/01/24
8/13 at 100.00
AAA
   
2,122,380
 
 
3,000
 
New York State Energy Research and Development Authority, Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
3,001,290
 
 
2,650
 
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42
12/20 at 100.00
BBB–
   
2,778,923
 
 
46,030
 
Total New York
       
47,094,665
 
     
North Carolina – 1.6% (1.1% of Total Investments)
           
 
5,500
 
Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue Bonds, Series 2008A, 5.000%, 1/15/39
1/18 at 100.00
AA–
   
5,559,510
 
 
4,900
 
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
1/15 at 100.00
AA+ (4)
   
5,551,651
 
 
3,500
 
North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Duke University Health System, Series 2009A, 5.000%, 6/01/42
6/19 at 100.00
AA
   
3,565,065
 
 
13,900
 
Total North Carolina
       
14,676,226
 
     
North Dakota – 0.5% (0.3% of Total Investments)
           
 
3,910
 
Fargo, North Dakota, Health System Revenue Bonds, Sanford Health, Refunding Series 2011, 6.250%, 11/01/31
11/21 at 100.00
AA–
   
4,311,987
 
     
Ohio – 6.7% (4.5% of Total Investments)
           
 
10,000
 
American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project Series 2008A, 5.250%, 2/15/43
2/18 at 100.00
A1
   
10,447,900
 
     
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
           
 
5,650
 
5.125%, 6/01/24
6/17 at 100.00
BB–
   
4,353,382
 
 
5,640
 
5.875%, 6/01/30
6/17 at 100.00
BB–
   
4,264,291
 
 
4,875
 
5.750%, 6/01/34
6/17 at 100.00
BB–
   
3,538,080
 
 
4,290
 
6.000%, 6/01/42
6/17 at 100.00
BB–
   
3,126,809
 
 
14,830
 
5.875%, 6/01/47
6/17 at 100.00
BB–
   
10,534,935
 
 
10,300
 
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 0.000%, 6/01/37
6/22 at 100.00
BB–
   
7,195,065
 
 
6,720
 
Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 5.000%, 1/01/31 – AGM Insured
1/12 at 100.00
AA+
   
6,720,403
 
 
2,305
 
Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2011A, 6.000%, 11/15/41
11/21 at 100.00
AA–
   
2,524,206
 
 
Nuveen Investments
 
33

 
 

 

   
Nuveen Performance Plus Municipal Fund, Inc. (continued)
NPP  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Ohio (continued)
           
$
3,650
 
Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A, 5.000%, 5/01/30
5/14 at 100.00
AA
 
$
3,692,267
 
 
3,425
 
Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project – Joint Venture 5, Series 2004, 5.000%, 2/15/19 – AMBAC Insured
2/14 at 100.00
A1
   
3,605,292
 
 
71,685
 
Total Ohio
       
60,002,630
 
     
Pennsylvania – 3.5% (2.3% of Total Investments)
           
 
1,250
 
Allegheny County Hospital Development Authority, Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.500%, 8/15/34
No Opt. Call
Aa3
   
1,299,213
 
     
Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania, Guaranteed Water Revenue Bonds, Series 1998:
           
 
3,125
 
0.000%, 5/15/22 – AGM Insured
No Opt. Call
AA–
   
2,131,406
 
 
3,125
 
0.000%, 5/15/23 – AGM Insured
No Opt. Call
AA–
   
2,016,906
 
 
3,135
 
0.000%, 5/15/24 – AGM Insured
No Opt. Call
AA–
   
1,906,299
 
 
3,155
 
0.000%, 5/15/26 – AGM Insured
No Opt. Call
AA–
   
1,710,609
 
 
4,145
 
0.000%, 11/15/26 – AGM Insured
No Opt. Call
AA–
   
2,200,539
 
 
2,800
 
0.000%, 5/15/28 – AGM Insured
No Opt. Call
AA–
   
1,346,716
 
 
3,000
 
0.000%, 11/15/28 – AGM Insured
No Opt. Call
AA–
   
1,411,320
 
 
1,000
 
Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994A, 6.500%, 1/01/13 (Alternative Minimum Tax)
1/12 at 100.00
CC
   
563,300
 
 
100
 
Pennsylvania Economic Development Financing Authority, Subordinate Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994C, 6.875%, 1/01/12 (Alternative Minimum Tax) (5)
No Opt. Call
N/R
   
23,980
 
 
5,000
 
Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue Bonds, Series 2009C, 0.000%, 6/01/33 – AGM Insured
6/26 at 100.00
AA–
   
4,246,550
 
 
11,890
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010B, 5.000%, 5/15/40
5/20 at 100.00
AA
   
12,092,249
 
 
41,725
 
Total Pennsylvania
       
30,949,087
 
     
Puerto Rico – 3.3% (2.2% of Total Investments)
           
 
13,125
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010A, 0.000%, 8/01/33
8/29 at 100.00
A+
   
9,400,650
 
 
8,625
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.250%, 8/01/41
8/20 at 100.00
A+
   
8,754,203
 
     
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A:
           
 
25,000
 
0.000%, 8/01/47 – AMBAC Insured
No Opt. Call
Aa2
   
2,610,250
 
 
64,335
 
0.000%, 8/01/54 – AMBAC Insured
No Opt. Call
Aa2
   
4,165,048
 
 
3,750
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Tender Option Bonds Trust 3101, 18.382%, 8/01/57 (IF)
8/17 at 100.00
Aa2
   
4,174,800
 
 
114,835
 
Total Puerto Rico
       
29,104,951
 
     
Rhode Island – 0.7% (0.5% of Total Investments)
           
 
2,000
 
Kent County Water Authority, Rhode Island, General Revenue Bonds, Series 2002A, 5.000%, 7/15/23 – NPFG Insured
7/12 at 100.00
A+
   
2,045,260
 
     
Rhode Island Health and Educational Building Corporation, Revenue Refunding Bonds, Salve Regina University, Series 2002:
           
 
1,260
 
5.250%, 3/15/17 – RAAI Insured
3/12 at 101.00
N/R
   
1,276,178
 
 
1,080
 
5.250%, 3/15/18 – RAAI Insured
3/12 at 101.00
N/R
   
1,092,949
 
 
1,735
 
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
6/12 at 100.00
BBB
   
1,735,763
 
 
6,075
 
Total Rhode Island
       
6,150,150
 
 
34
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
South Carolina – 1.9% (1.3% of Total Investments)
           
$
2,725
 
Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/25 – NPFG Insured
8/14 at 100.00
Baa1
 
$
2,876,074
 
     
Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 2004A-2:
           
 
26,955
 
0.000%, 1/01/31 – AMBAC Insured
No Opt. Call
A–
   
9,256,617
 
 
14,700
 
0.000%, 1/01/32 – AMBAC Insured
No Opt. Call
A–
   
4,765,005
 
 
44,380
 
Total South Carolina
       
16,897,696
 
     
Tennessee – 1.1% (0.7% of Total Investments)
           
 
2,860
 
Johnson City Health and Educational Facilities Board, Tennessee, Hospital Revenue Refunding and Improvement Bonds, Johnson City Medical Center, Series 1998C, 5.125%, 7/01/25 (Pre-refunded 7/01/23) – NPFG Insured
7/23 at 100.00
Baa1 (4)
   
2,870,039
 
 
6,000
 
Metropolitan Government of Nashville-Davidson County Health and Educational Facilities Board, Tennessee, Revenue Refunding and Improvement Bonds, Meharry Medical College, Series 1996, 6.000%, 12/01/19 – AMBAC Insured
12/17 at 100.00
N/R
   
6,569,100
 
 
8,860
 
Total Tennessee
       
9,439,139
 
     
Texas – 6.9% (4.7% of Total Investments)
           
 
5,000
 
Bexar Metropolitan Water District, Texas, Waterworks System Revenue Bonds, Series 2006, 5.000%, 5/01/35 – NPFG Insured
5/16 at 100.00
A1
   
5,089,600
 
 
2,500
 
Capital Area Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, The Roman Catholic Diocese of Austin, Series 2005B. Remarketed, 6.125%, 4/01/45
4/20 at 100.00
Baa2
   
2,575,150
 
 
1,000
 
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.000%, 1/01/41
1/21 at 100.00
BBB–
   
1,009,510
 
     
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
BBB
   
3,579,680
 
 
13,000
 
5.000%, 1/01/45 – FGIC Insured
1/15 at 100.00
BBB
   
11,241,880
 
 
3,000
 
Conroe Independent School District, Montgomery County, Texas, General Obligation Bonds, Schoolhouse Series 2005C, 5.000%, 2/15/30
No Opt. Call
AAA
   
3,168,600
 
 
3,500
 
Fort Bend County, Texas, General Obligation Bonds, Toll Road Series 2006, 5.000%, 3/01/32 – NPFG Insured
9/13 at 100.00
AA+
   
3,568,215
 
 
1,805
 
Harris County-Houston Sports Authority, Texas, Junior Lien Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 – NPFG Insured
11/11 at 100.00
Baa1
   
1,509,955
 
 
4,000
 
Houston Community College System, Texas, Limited Tax General Obligation Bonds, Series 2003, 5.000%, 2/15/27 (Pre-refunded 2/15/13) – AMBAC Insured (UB)
2/13 at 100.00
AA+ (4)
   
4,239,760
 
 
3,885
 
Houston Independent School District, Public Facility Corporation, Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez High School, Series 1998A, 0.000%, 9/15/19 – AMBAC Insured
No Opt. Call
AA
   
3,037,176
 
 
1,600
 
Houston, Texas, Senior Lien Airport System Revenue Bonds, Refunding Series 2009A, 5.500%, 7/01/39
7/18 at 100.00
AA–
   
1,701,104
 
 
33,855
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/40
8/14 at 23.67
AAA
   
6,972,776
 
 
19,300
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2008, 0.000%, 8/15/41
8/17 at 24.20
AAA
   
3,500,248
 
 
3,480
 
Pearland, Texas, General Obligation Bonds, Series 2002, 5.000%, 3/01/27 (Pre-refunded 3/01/12) – FGIC Insured
3/12 at 100.00
AA– (4)
   
3,535,750
 
 
2,890
 
Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White HealthCare Project, Series 2010, 5.500%, 8/15/45
8/20 at 100.00
A1
   
2,957,453
 
 
4,000
 
Tarrant Regional Water District, Texas, Water Revenue Refunding and Improvement Bonds, Series 1999, 5.000%, 3/01/22 – AGM Insured
3/13 at 100.00
AAA
   
4,181,600
 
 
106,815
 
Total Texas
       
61,868,457
 
 
Nuveen Investments
 
35

 
 

 

   
Nuveen Performance Plus Municipal Fund, Inc. (continued)
NPP  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Utah – 1.1% (0.7% of Total Investments)
           
$
3,000
 
Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, Inc., Series 2009, 5.000%, 8/15/41
8/19 at 100.00
AA+
 
$
3,045,210
 
 
1,335
 
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2002A-1, 5.300%, 7/01/18 (Alternative Minimum Tax)
1/12 at 100.00
AA–
   
1,354,398
 
 
335
 
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax)
1/12 at 100.00
AA–
   
341,251
 
 
465
 
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000E-1, Class II, 6.150%, 1/01/27 (Alternative Minimum Tax)
1/12 at 100.00
AA
   
465,405
 
 
425
 
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000E-1, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax)
1/12 at 100.00
AA–
   
432,807
 
 
615
 
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax)
1/12 at 100.00
AA
   
615,344
 
 
445
 
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax)
1/12 at 100.00
Aaa
   
457,887
 
 
3,000
 
Utah Water Finance Agency, Revenue Bonds, Pooled Loan Financing Program, Series 2002C, 5.250%, 10/01/28 (Pre-refunded 10/01/12) – AMBAC Insured
10/12 at 100.00
N/R (4)
   
3,135,390
 
 
9,620
 
Total Utah
       
9,847,692
 
     
Virgin Islands – 0.7% (0.5% of Total Investments)
           
 
4,700
 
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 2003, 5.000%, 10/01/33 – RAAI Insured
10/14 at 100.00
BBB+
   
4,451,276
 
 
2,500
 
Virgin Islands Public Finance Authority, Revenue Bonds, Refinery Project – Hovensa LLC, Series 2003, 6.125%, 7/01/22 (Alternative Minimum Tax)
1/14 at 100.00
Ba2
   
2,299,350
 
 
7,200
 
Total Virgin Islands
       
6,750,626
 
     
Virginia – 2.3% (1.6% of Total Investments)
           
 
18,000
 
Metropolitan Washington DC Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44
10/28 at 100.00
BBB+
   
12,054,240
 
 
10,500
 
Metropolitan Washington DC Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Series 2009C, 0.000%, 10/01/41 – AGC Insured
10/26 at 100.00
AA–
   
8,622,075
 
 
28,500
 
Total Virginia
       
20,676,315
 
     
Washington – 3.6% (2.4% of Total Investments)
           
 
12,235
 
Chelan County Public Utility District 1, Washington, Columbia River-Rock Island Hydro-Electric System Revenue Refunding Bonds, Series 1997A, 0.000%, 6/01/26 – NPFG Insured
No Opt. Call
AA+
   
6,183,202
 
     
Cowlitz County Public Utilities District 1, Washington, Electric Production Revenue Bonds, Series 2004:
           
 
465
 
5.000%, 9/01/22 – FGIC Insured
9/14 at 100.00
A1
   
486,003
 
 
3,100
 
5.000%, 9/01/28 – FGIC Insured
9/14 at 100.00
A1
   
3,169,997
 
 
5,000
 
Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB)
7/13 at 100.00
Aa1
   
5,391,300
 
 
2,000
 
Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2009A, 6.000%, 1/01/33
7/19 at 100.00
A
   
2,082,619
 
 
10,000
 
Washington State Health Care Facilities Authority, Revenue Bonds, Providence Health Care Services, Series 2006A, 4.625%, 10/01/34 – FGIC Insured (UB)
10/16 at 100.00
AA
   
9,717,400
 
 
5,000
 
Washington State Housing Finance Commission, Non-Profit Housing Revenue Bonds, Kline Galland Center, Series 1999, 6.000%, 7/01/29 – RAAI Insured
1/12 at 100.00
N/R
   
5,001,047
 
 
37,800
 
Total Washington
       
32,031,568
 
 
36
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Wisconsin – 1.7% (1.2% of Total Investments)
           
$
11,620
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/29 – RAAI Insured
2/12 at 100.00
BBB+
 
$
11,624,762
 
 
4,015
 
Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds, Series 2005C, 4.875%, 3/01/36 (Alternative Minimum Tax) (UB)
9/14 at 100.00
AA
   
3,946,745
 
 
15,635
 
Total Wisconsin
       
15,571,507
 
$
1,709,130
 
Total Investments (cost $1,278,507,478) – 148.0%
       
1,321,271,982
 
     
Floating Rate Obligations – (4.5)%
       
(40,020,000
     
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (47.2)% (6)
       
(421,700,000
     
Other Assets Less Liabilities – 3.7%
       
33,050,560
 
     
Net Assets Applicable to Common Shares – 100%
     
$
892,602,542
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.9%.
N/R   Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
 See accompanying notes to financial statements.
 
Nuveen Investments
 
37

 
 

 

   
Nuveen Municipal Advantage Fund, Inc.
NMA
 
Portfolio of Investments
   
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Alabama – 0.8% (0.5% of Total Investments)
           
$
5,155
 
Phenix City Industrial Development Board, Alabama, Environmental Improvement Revenue Bonds, MeadWestvaco Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax)
5/12 at 100.00
BBB
 
$
5,151,701
 
     
Alaska – 0.8% (0.6% of Total Investments)
           
     
Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A:
           
 
1,125
 
5.250%, 12/01/34 – FGIC Insured (UB)
12/14 at 100.00
AA+
   
1,149,649
 
 
1,280
 
5.250%, 12/01/41 – FGIC Insured (UB)
12/14 at 100.00
AA+
   
1,303,949
 
     
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A:
           
 
795
 
4.625%, 6/01/23
6/14 at 100.00
Ba1
   
734,024
 
 
3,250
 
5.000%, 6/01/46
6/14 at 100.00
B2
   
2,060,208
 
 
6,450
 
Total Alaska
       
5,247,830
 
     
Arizona – 3.1% (2.1% of Total Investments)
           
 
3,465
 
Arizona Board of Regents, Certificates of Participation, Arizona State University, Refunding Series 2006, 5.000%, 7/01/25 – NPFG Insured
No Opt. Call
AA–
   
3,661,431
 
 
4,905
 
Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32
7/17 at 100.00
A
   
4,948,851
 
 
10,700
 
Phoenix Civic Improvement Corporation, Arizona, Senior Lien Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/38
7/18 at 100.00
AA–
   
11,051,174
 
 
19,070
 
Total Arizona
       
19,661,456
 
     
California – 20.8% (13.9% of Total Investments)
           
 
3,500
 
Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 – AMBAC Insured
10/17 at 100.00
A–
   
3,119,410
 
     
Calexico Unified School District, Imperial County, California, General Obligation Bonds, Series 2005B:
           
 
4,070
 
0.000%, 8/01/32 – FGIC Insured
No Opt. Call
A
   
1,058,078
 
 
6,410
 
0.000%, 8/01/34 – FGIC Insured
No Opt. Call
A
   
1,461,865
 
 
3,000
 
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33
3/13 at 100.00
A
   
2,940,030
 
 
7,500
 
California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.125%, 6/01/29
6/14 at 100.00
A2
   
7,524,825
 
 
11,200
 
California State, General Obligation Bonds, Series 2003, 5.250%, 2/01/28
8/13 at 100.00
A1
   
11,499,488
 
 
4,250
 
California State, General Obligation Bonds, Various Purpose Series 2010, 5.250%, 11/01/40
11/20 at 100.00
A1
   
4,349,450
 
 
16,000
 
California State, Various Purpose General Obligation Bonds, Series 2007, 5.000%, 6/01/37
6/17 at 100.00
A1
   
16,034,080
 
 
2,750
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
8/19 at 100.00
Aa2
   
3,128,648
 
 
9,955
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 0.000%, 9/01/31 – FGIC Insured
No Opt. Call
BBB
   
2,524,389
 
     
Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2006C:
           
 
3,800
 
0.000%, 2/01/33 – FGIC Insured
2/15 at 38.73
Aa3
   
999,400
 
 
3,795
 
0.000%, 2/01/37 – FGIC Insured
No Opt. Call
Aa3
   
768,260
 
 
6,775
 
Contra Costa County, California, GNMA Mortgage-Backed Securities Program Home Mortgage Revenue Bonds, Series 1989, 7.750%, 5/01/22 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
8,846,118
 
 
8,145
 
Cupertino Union School District, Santa Clara County, California, General Obligation Bonds, Series 2003B, 0.000%, 8/01/25 – FGIC Insured
8/13 at 55.54
Aa1
   
3,885,002
 
 
2,510
 
Folsom Cordova Unified School District, Sacramento County, California, General Obligation Bonds, School Facilities Improvement District 1, Series 2004B, 0.000%, 10/01/28 – NPFG Insured
No Opt. Call
A+
   
910,503
 
 
3,360
 
Folsom Cordova Unified School District, Sacramento County, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2002A, 0.000%, 7/01/27 – NPFG Insured
No Opt. Call
Aa3
   
1,307,712
 
 
2,315
 
Gateway Unified School District, California, General Obligation Bonds, Series 2004B, 0.000%, 8/01/32 – FGIC Insured
No Opt. Call
A1
   
619,494
 
 
38
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
$
3,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/26 – AGM Insured
No Opt. Call
AA+
 
$
1,387,320
 
 
1,000
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47
6/17 at 100.00
BB+
   
651,200
 
 
5,000
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2003A, 5.125%, 7/01/40 – FGIC Insured
7/12 at 100.00
AA
   
5,049,350
 
 
1,275
 
Madera Unified School District, Madera County, California, General Obligation Bonds, Series 2002, 5.250%, 8/01/23 – AGM Insured
8/12 at 100.00
AA+
   
1,310,330
 
 
2,200
 
M-S-R Energy Authority, California, Gas Revenue Bonds, Series 2009C, 6.500%, 11/01/39
No Opt. Call
A
   
2,481,578
 
 
2,000
 
Murrieta Valley Unified School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2006A, 5.125%, 9/01/26 – AGM Insured
9/16 at 100.00
AA+
   
2,076,060
 
     
North Orange County Community College District, California, General Obligation Bonds, Series 2003B:
           
 
7,735
 
0.000%, 8/01/25 – FGIC Insured
No Opt. Call
Aa1
   
3,739,176
 
 
4,180
 
0.000%, 8/01/26 – FGIC Insured
No Opt. Call
Aa1
   
1,889,820
 
 
2,590
 
Palmdale Community Redevelopment Agency, California, Residential Mortgage Revenue Refunding Bonds, Series 1991B, 7.375%, 2/01/12 (ETM)
No Opt. Call
AA+ (4)
   
2,631,725
 
 
5,000
 
Palmdale Community Redevelopment Agency, California, Single Family Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
6,382,400
 
 
9,315
 
Perris, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1989A, 7.600%, 1/01/23 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
11,953,287
 
 
3,205
 
San Diego Community College District, California, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 – AGM Insured
5/15 at 100.00
AA+
   
3,473,387
 
 
1,830
 
San Diego Public Facilities Financing Authority, California, Water Utility Revenue Bonds, Tender Option Bond Trust 3504, 19.608%, 2/01/33 (IF)
8/19 at 100.00
Aa2
   
2,496,413
 
 
7,660
 
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Senior Lien Toll Road Revenue Bonds, Series 1993, 0.000%, 1/01/24 (ETM)
No Opt. Call
Aaa
   
5,252,692
 
     
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A:
           
 
7,205
 
0.000%, 1/15/23 – NPFG Insured
No Opt. Call
Baa1
   
2,996,415
 
 
23,000
 
0.000%, 1/15/35 – NPFG Insured
No Opt. Call
Baa1
   
3,234,030
 
 
7,250
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 0.000%, 9/01/29 – NPFG Insured
9/15 at 47.82
Aa1
   
2,501,033
 
 
192,780
 
Total California
       
130,482,968
 
     
Colorado – 9.9% (6.6% of Total Investments)
           
 
1,600
 
Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – SYNCORA GTY Insured
10/16 at 100.00
BBB
   
1,407,360
 
 
9,440
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2006A, 4.500%, 9/01/38
9/16 at 100.00
AA
   
8,622,779
 
 
3,335
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34
7/19 at 100.00
AA
   
3,499,382
 
 
1,500
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Valley View Hospital Association, Series 2007, 5.250%, 5/15/42
5/17 at 100.00
BBB+
   
1,357,800
 
 
7,500
 
Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40
No Opt. Call
AA
   
7,415,625
 
 
1,150
 
Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley Health System, Series 2005C, 5.250%, 3/01/40 – AGM Insured
9/18 at 102.00
AA+
   
1,172,057
 
     
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
A+
   
5,799,350
 
 
3,300
 
5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
   
3,541,626
 
 
4,340
 
5.000%, 11/15/25 – FGIC Insured (UB)
11/16 at 100.00
A+
   
4,629,001
 
 
2,000
 
Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2006, 4.750%, 12/01/35 – SYNCORA GTY Insured
11/16 at 100.00
BBB–
   
1,657,020
 
 
Nuveen Investments
 
39

 
 

 
 
     Nuveen Municipal Advantage Fund, Inc. (continued)
NMA
 
Portfolio of Investments
    October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Colorado (continued)
           
     
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B:
           
$
2,650
 
0.000%, 9/01/16 – NPFG Insured
No Opt. Call
Baa1
 
$
2,087,087
 
 
8,645
 
0.000%, 9/01/26 – NPFG Insured
No Opt. Call
Baa1
   
3,297,203
 
     
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B:
           
 
7,500
 
0.000%, 9/01/29 – NPFG Insured
No Opt. Call
Baa1
   
2,274,000
 
 
10,000
 
0.000%, 9/01/31 – NPFG Insured
No Opt. Call
Baa1
   
2,596,800
 
 
10,000
 
0.000%, 9/01/32 – NPFG Insured
No Opt. Call
Baa1
   
2,411,500
 
     
Platte River Power Authority, Colorado, Power Revenue Refunding Bonds, Series 2002EE:
           
 
1,030
 
5.375%, 6/01/17 (Pre-refunded 6/01/12)
6/12 at 100.00
AA (4)
   
1,060,962
 
 
4,890
 
5.375%, 6/01/18 (Pre-refunded 6/01/12)
6/12 at 100.00
AA (4)
   
5,036,993
 
     
Platte River Power Authority, Colorado, Power Revenue Refunding Bonds, Series 2002EE:
           
 
970
 
5.375%, 6/01/17
6/12 at 100.00
AA
   
995,986
 
 
110
 
5.375%, 6/01/18
6/12 at 100.00
AA
   
112,692
 
 
3,110
 
Regional Transportation District, Colorado, Denver Transit Partners Eagle P3 Project Private Activity  Bonds, Series 2010, 6.000%, 1/15/34
7/20 at 100.00
Baa3
   
3,188,030
 
 
88,435
 
Total Colorado
       
62,163,253
 
     
District of Columbia – 0.2% (0.1% of Total Investments)
           
 
1,100
 
District of Columbia Housing Finance Agency, GNMA/FNMA Single Family Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28 (Alternative Minimum Tax)
12/11 at 100.00
AA+
   
1,150,369
 
     
Florida – 2.8% (1.9% of Total Investments)
           
 
2,770
 
Florida Housing Finance Corporation, Housing Revenue Bonds, Stratford Point Apartments, Series 2000O-1, 5.850%, 12/01/31 – AGM Insured (Alternative Minimum Tax)
12/11 at 100.00
AA+
   
2,771,911
 
 
14,730
 
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB)
8/17 at 100.00
AA
   
14,717,332
 
 
17,500
 
Total Florida
       
17,489,243
 
     
Georgia – 1.7% (1.2% of Total Investments)
           
 
4,000
 
Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 5.250%, 10/01/39 – AGM Insured
10/14 at 100.00
AA+
   
4,226,960
 
 
2,900
 
Coffee County Hospital Authority, Georgia, Revenue Bonds, Coffee County Regional Medical Center, Series 2004, 5.000%, 12/01/26
12/14 at 100.00
BBB–
   
2,771,124
 
 
1,250
 
DeKalb County Hospital Authority, Georgia, Anticipation Certificates Revenue Bonds, DeKalb Medical Center, Inc. Project, Series 2010, 6.000%, 9/01/30
9/20 at 100.00
N/R
   
1,290,950
 
 
2,500
 
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional Medical Center Project, Series 2010, 7.625%, 12/01/30
12/20 at 100.00
N/R
   
2,553,875
 
 
10,650
 
Total Georgia
       
10,842,909
 
     
Hawaii – 0.0% (0.0% of Total Investments)
           
 
175
 
Hawaii Housing Finance and Development Corporation, Single Family Mortgage Purchase Revenue Bonds, Series 1997A, 5.750%, 7/01/30 (Alternative Minimum Tax)
1/12 at 100.00
Aaa
   
176,264
 
     
Illinois – 13.1% (8.7% of Total Investments)
           
 
1,470
 
Chicago Board of Education, Cook County, Illinois, General Obligation Bonds, Dedicated Revenues Series 2011A, 5.000%, 12/01/41 (WI/DD, Settling 11/01/11)
12/21 at 100.00
AA–
   
1,470,515
 
 
4,345
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/28 – FGIC Insured
No Opt. Call
AA–
   
1,675,910
 
 
4,260
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/31 – FGIC Insured
No Opt. Call
AA–
   
1,346,756
 
 
1,100
 
Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Series 2011, 5.250%, 12/01/40 (WI/DD, Settling 11/04/11)
12/21 at 100.00
AA
   
1,135,156
 
 
5,000
 
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International Airport, Series 2001A, 5.375%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A2
   
5,000,300
 
 
7,100
 
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
   
7,339,838
 
 
1,500
 
Illinois Finance Authority, Revenue Bonds, Central DuPage Health, Series 2009B, 5.500%, 11/01/39
11/19 at 100.00
AA
   
1,555,455
 
 
2,000
 
Illinois Finance Authority, Revenue Bonds, Children’s Memorial Hospital, Series 2008A, 5.250%, 8/15/47 – AGC Insured (UB)
8/18 at 100.00
AA–
   
2,017,680
 

40
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Illinois (continued)
           
$
8,395
 
Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond Trust 1137, 9.132%, 7/01/15 (IF)
7/17 at 100.00
Aa1
 
$
8,910,621
 
 
2,500
 
Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38
8/19 at 100.00
BBB
   
2,615,250
 
 
4,000
 
Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical Centers, Series 2008A, 6.000%, 8/15/23
8/18 at 100.00
BBB
   
4,079,880
 
 
6,000
 
Illinois Health Facilities Authority, Revenue Bonds, Condell Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded 5/15/12)
5/12 at 100.00
Aaa
   
6,176,640
 
 
5,025
 
Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, Series 2002, 5.625%, 1/01/28
1/13 at 100.00
Baa1
   
5,026,809
 
 
10,740
 
Lake and McHenry Counties Community Unit School District 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/23 – AGM Insured
1/15 at 66.94
Aa3
   
6,155,524
 
 
1,090
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 1993A, 0.000%, 6/15/21 – FGIC Insured
No Opt. Call
A2
   
706,603
 
 
3,175
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 6/15/41 – NPFG Insured
No Opt. Call
AAA
   
542,417
 
 
6,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 6/15/24 – NPFG Insured
No Opt. Call
AA–
   
3,149,460
 
 
4,000
 
Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1990A, 7.200%, 11/01/20 – AMBAC Insured
No Opt. Call
Aa3
   
4,774,080
 
 
1,940
 
University of Illinois, Auxiliary Facilities Systems Revenue Bonds, Series 2003A, 5.000%, 4/01/23 – AMBAC Insured
4/13 at 100.00
Aa2
   
1,979,692
 
 
7,500
 
Valley View Public Schools, Community Unit School District 365U of Will County, Illinois, General Obligation Bonds, Series 2005, 0.000%, 11/01/25 – NPFG Insured
No Opt. Call
Aa2
   
3,541,575
 
 
23,125
 
Will County Community High School District 210 Lincoln-Way, Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/24 – AGM Insured
No Opt. Call
Aa2
   
12,672,963
 
 
110,265
 
Total Illinois
       
81,873,124
 
     
Indiana – 2.8% (1.9% of Total Investments)
           
 
2,600
 
Crown Point Multi-School Building Corporation, Indiana, First Mortgage Bonds, Crown Point Community School Corporation, Series 2000, 0.000%, 1/15/24 – NPFG Insured
No Opt. Call
A
   
1,443,962
 
 
1,310
 
Hospital Authority of Delaware County, Indiana, Hospital Revenue Refunding Bonds, Cardinal Health System, Series 1997, 5.000%, 8/01/16 – AMBAC Insured
2/12 at 100.00
N/R
   
1,293,258
 
 
4,030
 
Indiana Finance Authority Health System Revenue Bonds, Sisters of St. Francis Health Services, Inc. Obligated Group, Series 2009, 5.250%, 11/01/39
11/19 at 100.00
Aa3
   
4,113,058
 
 
6,000
 
Indiana Finance Authority, Revenue Bonds, Trinity Health Care Group, Refunding Series 2009A, 5.250%, 12/01/38
12/19 at 100.00
AA
   
6,213,420
 
 
2,000
 
Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%, 3/01/34 – AMBAC Insured
3/14 at 100.00
A
   
2,007,220
 
 
2,435
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37
3/17 at 100.00
BBB+
   
2,397,184
 
 
1,005
 
St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Madison Center Inc., Series 1999, 5.450%, 2/15/12 (5)
1/12 at 100.00
N/R
   
172,337
 
 
19,380
 
Total Indiana
       
17,640,439
 
     
Iowa – 0.8% (0.5% of Total Investments)
           
 
6,300
 
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 5.375%, 6/01/38
6/15 at 100.00
BBB
   
4,619,160
 
 
250
 
Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34
6/17 at 100.00
BBB
   
210,308
 
 
6,550
 
Total Iowa
       
4,829,468
 
 
Nuveen Investments
 
41

 
 

 
 
 
   
Nuveen Municipal Advantage Fund, Inc. (continued)
NMA   Portfolio of Investments
     
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Kansas – 1.2% (0.8% of Total Investments)
           
$
3,715
 
Overland Park Development Corporation, Kansas, First Tier Revenue Bonds, Overland Park Convention Center, Series 2007A, 5.125%, 1/01/22 – AMBAC Insured
1/17 at 100.00
Baa3
 
$
3,508,037
 
 
1,750
 
Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and Electric Company, Series 2004, 5.300%, 6/01/31 – NPFG Insured
6/14 at 100.00
BBB+
   
1,783,933
 
 
3,730
 
Wyandotte County-Kansas City Unified Government, Kansas, Sales Tax Special Obligation Capital Appreciation Revenue Bonds Redevelopment Project Area B – Major Multi-Sport Athletic Complex Project, Subordinate Lien Series 2010B, 0.000%, 6/01/21
12/13 at 100.00
BBB
   
2,240,089
 
 
9,195
 
Total Kansas
       
7,532,059
 
     
Kentucky – 1.4% (1.0% of Total Investments)
           
 
6,015
 
Kentucky Economic Development Finance Authority, Hospital Facilities Revenue Bonds, Owensboro Medical Health System, Series 2010B, 6.375%, 3/01/40
6/20 at 100.00
Baa2
   
6,297,585
 
 
1,500
 
Kentucky Economic Development Finance Authority, Hospital Revenue Bonds, Baptist Healthcare System, Series 2009A, 5.375%, 8/15/24
8/19 at 100.00
Aa3
   
1,641,525
 
 
1,000
 
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/33 – AGC Insured
6/18 at 100.00
AA+
   
1,064,970
 
 
8,515
 
Total Kentucky
       
9,004,080
 
     
Louisiana – 14.6% (9.7% of Total Investments)
           
 
13,500
 
DeSoto Parish, Louisiana, Pollution Control Revenue Refunding Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 – AMBAC Insured
3/12 at 100.00
BBB
   
13,505,940
 
     
Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds, Comm-Care Corporation Project, Series 1994:
           
 
405
 
11.000%, 2/01/14 (ETM)
No Opt. Call
N/R (4)
   
454,726
 
 
3,735
 
11.000%, 2/01/14 (ETM)
No Opt. Call
N/R (4)
   
4,193,583
 
 
6,650
 
Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 – NPFG Insured
7/14 at 100.00
Baa1
   
6,809,667
 
 
9,000
 
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5/17 at 100.00
Baa1
   
8,637,030
 
 
6,000
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2002A, 5.000%, 6/01/32 – AMBAC Insured
6/12 at 100.00
Aa1
   
6,106,140
 
 
28
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A, Trust 660, 15.865%, 5/01/34 (IF)
5/16 at 100.00
Aa1
   
26,964
 
     
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A:
           
 
20,690
 
4.500%, 5/01/41 – FGIC Insured (UB)
5/16 at 100.00
Aa1
   
20,440,065
 
 
10,000
 
5.000%, 5/01/41 – FGIC Insured (UB)
5/16 at 100.00
Aa1
   
10,302,200
 
     
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B:
           
 
6,210
 
5.500%, 5/15/30
11/11 at 101.00
A1
   
6,218,011
 
 
14,440
 
5.875%, 5/15/39
11/11 at 101.00
A–
   
14,449,530
 
 
90,658
 
Total Louisiana
       
91,143,856
 
     
Maine – 0.2% (0.1% of Total Investments)
           
 
1,050
 
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, MaineGeneral Medical Center, Series 2011, 6.750%, 7/01/41
7/21 at 100.00
Baa3
   
1,083,705
 
     
Massachusetts – 2.2% (1.5% of Total Investments)
           
 
8,825
 
Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Senior Lien Series 2010B, 5.000%, 1/01/32
1/20 at 100.00
A
   
9,212,153
 
 
620
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.125%, 7/01/33
7/18 at 100.00
A–
   
623,081
 
 
1,750
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, UMass Memorial Healthcare, Series 1998A, 5.000%, 7/01/28 – AMBAC Insured
1/12 at 100.00
A–
   
1,695,068
 
 
2,300
 
Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk University Issue, Series 2009A, 5.750%, 7/01/39
7/19 at 100.00
BBB
   
2,307,567
 
 
13,495
 
Total Massachusetts
       
13,837,869
 
 
42
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Michigan – 1.1% (0.7% of Total Investments)
           
$
6,250
 
Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA, 0.000%, 10/15/30 – FGIC Insured
10/16 at 50.02
Aa3
 
$
2,180,563
 
 
2,000
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group, Series 2003, 5.500%, 11/01/11
No Opt. Call
A
   
2,000,000
 
 
3,050
 
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42
6/18 at 100.00
B2
   
2,735,789
 
 
11,300
 
Total Michigan
       
6,916,352
 
     
Missouri – 1.7% (1.2% of Total Investments)
           
     
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Mass
Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension
Project, Series 2002B:
           
 
4,400
 
5.000%, 10/01/23 – AGM Insured
10/13 at 100.00
AA+
   
4,657,620
 
 
1,500
 
5.000%, 10/01/32 – AGM Insured
10/13 at 100.00
AA+
   
1,519,485
 
 
12,005
 
Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 – AMBAC Insured
No Opt. Call
AA–
   
4,685,672
 
 
17,905
 
Total Missouri
       
10,862,777
 
     
Nevada – 4.3% (2.9% of Total Investments)
           
 
15,000
 
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
Aa3
   
16,104,300
 
     
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
           
 
3,025
 
0.000%, 1/01/16 – AMBAC Insured
No Opt. Call
N/R
   
550,248
 
 
7,910
 
5.375%, 1/01/40 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
1,819,300
 
 
3,750
 
Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, Catholic Healthcare West, Series 2007B, 18.807%, 7/01/31 – BHAC Insured (IF)
7/17 at 100.00
AA+
   
4,386,150
 
 
4,000
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Series 2003B Refunding, 5.250%, 6/01/20 (Pre-refunded 12/01/12) – NPFG Insured
12/12 at 100.00
AA+ (4)
   
4,213,560
 
 
33,685
 
Total Nevada
       
27,073,558
 
     
New Hampshire – 0.2% (0.1% of Total Investments)
           
 
1,500
 
New Hampshire Business Finance Authority, Revenue Bonds, Elliot Hospital Obligated Group Issue, Series 2009A, 6.125%, 10/01/39
10/19 at 100.00
BBB+
   
1,474,320
 
     
New Jersey – 3.5% (2.4% of Total Investments)
           
 
15,000
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C, 0.000%, 12/15/30 – FGIC Insured
No Opt. Call
A+
   
4,932,150
 
     
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002:
           
 
8,350
 
5.750%, 6/01/32 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
8,618,286
 
 
5,050
 
6.125%, 6/01/42 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
5,223,266
 
 
5,000
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
6/17 at 100.00
BB+
   
3,360,350
 
 
33,400
 
Total New Jersey
       
22,134,052
 
     
New York – 5.6% (3.7% of Total Investments)
           
 
2,000
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47
No Opt. Call
A
   
2,034,400
 
 
7,000
 
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
7/12 at 100.00
AA–
   
7,151,270
 
 
4,975
 
New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, British Airways PLC, Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
12/11 at 100.00
BB–
   
4,029,999
 
 
3,000
 
New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, British Airways PLC, Series 2002, 7.625%, 12/01/32 (Alternative Minimum Tax)
12/12 at 101.00
BB–
   
3,014,250
 
 
10,000
 
New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Series 2004B, 5.000%, 6/15/36 – AGM Insured (UB)
12/14 at 100.00
AAA
   
10,501,900
 
 
Nuveen Investments
 
43

 
 

 

   
Nuveen Municipal Advantage Fund, Inc. (continued)
NMA  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
New York (continued)
           
     
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010:
           
$
6,065
 
6.500%, 12/01/28
12/15 at 100.00
BBB–
 
$
6,403,791
 
 
1,660
 
6.000%, 12/01/36
12/20 at 100.00
BBB–
   
1,723,429
 
 
34,700
 
Total New York
       
34,859,039
 
     
North Carolina – 2.7% (1.8% of Total Investments)
           
 
3,000
 
North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2005, 5.250%, 1/01/20 – AMBAC Insured
1/16 at 100.00
A–
   
3,351,510
 
 
885
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
AA
   
885,283
 
 
3,395
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29 (alternative Minimum Tax)
1/12 at 100.00
AA
   
3,398,395
 
 
3,325
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31 (Alternative Minimum Tax)
1/12 at 100.00
AA
   
3,327,427
 
 
3,500
 
North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Duke University Health System, Series 2009A, 5.000%, 6/01/42
6/19 at 100.00
AA
   
3,565,065
 
 
1,900
 
North Carolina Turnpike Authority, Triangle Expressway System Revenue Bonds, Series 2009A, 5.750%, 1/01/39 – AGC Insured
1/19 at 100.00
AA+
   
2,047,003
 
 
16,005
 
Total North Carolina
       
16,574,683
 
     
North Dakota – 0.6% (0.4% of Total Investments)
           
 
1,500
 
Fargo, North Dakota, Health System Revenue Bonds, Sanford Health, Refunding Series 2011, 6.000%, 11/01/28
11/21 at 100.00
AA–
   
1,662,375
 
 
2,350
 
Ward County Health Care, North Dakota, Revenue Bonds, Trinity Obligated Group, Series 2006, 5.125%, 7/01/25
7/16 at 100.00
BBB+
   
2,321,424
 
 
3,850
 
Total North Dakota
       
3,983,799
 
     
Ohio – 7.3% (4.9% of Total Investments)
           
 
3,785
 
Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/18
11/11 at 100.00
Baa1
   
3,788,369
 
 
10,000
 
American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project Series 2008A, 5.250%, 2/15/43
2/18 at 100.00
A1
   
10,447,900
 
     
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
           
 
1,760
 
5.125%, 6/01/24
6/17 at 100.00
BB–
   
1,356,098
 
 
2,700
 
5.875%, 6/01/30
6/17 at 100.00
BB–
   
2,041,416
 
 
9,135
 
5.750%, 6/01/34
6/17 at 100.00
BB–
   
6,629,818
 
 
3,920
 
6.000%, 6/01/42
6/17 at 100.00
BB–
   
2,857,131
 
 
6,080
 
5.875%, 6/01/47
6/17 at 100.00
BB–
   
4,319,110
 
 
5,275
 
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 0.000%, 6/01/37
6/22 at 100.00
BB–
   
3,684,851
 
 
7,050
 
Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19
No Opt. Call
BBB–
   
7,780,310
 
 
2,650
 
Ohio, General Obligation Bonds, Higher Education, Series 2003A, 5.000%, 5/01/22
5/13 at 100.00
AA+
   
2,783,216
 
 
52,355
 
Total Ohio
       
45,688,219
 
     
Oklahoma – 2.7% (1.8% of Total Investments)
           
 
1,000
 
Fort Sill Apache Tribe of Oklahoma Economic Development Authority, Gaming Enterprise Revenue Bonds, Fort Sill Apache Casino, Series 2011A, 8.500%, 8/25/26
8/21 at 100.00
N/R
   
998,130
 
 
1,675
 
Oklahoma Development Finance Authority, Health System Revenue Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38
8/18 at 100.00
AA–
   
1,737,260
 
 
12,000
 
Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007, 5.000%, 2/15/42
2/17 at 100.00
A
   
12,107,280
 
 
44
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Oklahoma (continued)
           
$
2,000
 
Oklahoma Municipal Power Authority, Power Supply System Revenue Bonds, Series 2007, 4.500%, 1/01/47 – FGIC Insured
1/17 at 100.00
A
 
$
2,001,900
 
 
16,675
 
Total Oklahoma
       
16,844,570
 
     
Oregon – 0.5% (0.3% of Total Investments)
           
 
3,000
 
Oregon State Facilities Authority, Revenue Bonds, Willamette University, Series 2007A, 5.000%, 10/01/36
10/17 at 100.00
A
   
3,042,030
 
     
Pennsylvania – 4.9% (3.2% of Total Investments)
           
 
5,000
 
Allegheny County Hospital Development Authority, Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.625%, 8/15/39
No Opt. Call
Aa3
   
5,213,900
 
 
1,250
 
Erie Water Authority, Pennsylvania, Water Revenue Bonds, Series 2008, 5.000%, 12/01/43 – AGM Insured
12/18 at 100.00
AA+
   
1,291,713
 
 
7,100
 
Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue Bonds, New Regional Medical Center Project, Series 2010, 5.750%, 8/01/30
8/15 at 100.00
AA
   
8,089,882
 
 
1,000
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Widener University, Series 2003, 5.375%, 7/15/29
7/13 at 100.00
BBB+
   
1,013,070
 
 
1,500
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31 (Alternative Minimum Tax) (UB)
10/16 at 100.00
AA+
   
1,453,515
 
 
2,600
 
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2004A, 5.500%, 12/01/31 – AMBAC Insured
12/14 at 100.00
Aa3
   
2,788,006
 
 
10,000
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010B, 5.250%, 5/15/30
5/20 at 100.00
AA
   
10,559,300
 
 
28,450
 
Total Pennsylvania
       
30,409,386
 
     
Puerto Rico – 7.3% (4.9% of Total Investments)
           
 
5,000
 
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/26 – SYNCORA GTY Insured
7/15 at 100.00
A3
   
5,065,600
 
 
10,000
 
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2010, 5.750%, 7/01/36
7/20 at 100.00
A3
   
10,503,600
 
 
10,070
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 7/01/39 – FGIC Insured
No Opt. Call
Baa1
   
9,832,348
 
 
10,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
8/19 at 100.00
A+
   
10,808,400
 
 
9,310
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.250%, 8/01/41
8/20 at 100.00
A+
   
9,449,464
 
 
44,380
 
Total Puerto Rico
       
45,659,412
 
     
Rhode Island – 1.3% (0.9% of Total Investments)
           
 
1,235
 
Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, Lifespan Obligated Group, Series 1996, 5.500%, 5/15/16 – NPFG Insured
1/12 at 100.00
A3
   
1,237,902
 
 
7,000
 
Rhode Island Housing and Mortgage Finance Corporation, Homeownership Opportunity Bond Program, Series 50A, 4.650%, 10/01/34
10/14 at 100.00
AA+
   
6,950,930
 
 
8,235
 
Total Rhode Island
       
8,188,832
 
     
South Carolina – 3.1% (2.1% of Total Investments)
           
 
10,000
 
Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20 (Pre-refunded 12/01/12)
12/12 at 101.00
AA (4)
   
10,715,800
 
 
2,500
 
Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and Improvement Bonds, Series 2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13)
11/13 at 100.00
AA– (4)
   
2,760,225
 
 
3,000
 
Myrtle Beach, South Carolina, Hospitality and Accommodation Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 – FGIC Insured
6/14 at 100.00
A+
   
3,036,450
 
 
1,220
 
Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 2004A-2, 0.000%, 1/01/23 – FGIC Insured
No Opt. Call
A–
   
715,603
 
 
2,125
 
South Carolina Public Service Authority, Revenue Refunding Bonds, Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/21 – AMBAC Insured
7/13 at 100.00
AA–
   
2,253,626
 
 
18,845
 
Total South Carolina
       
19,481,704
 
 
Nuveen Investments
 
45

 
 

 

   
Nuveen Municipal Advantage Fund, Inc. (continued)
NMA  
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
South Dakota – 0.5% (0.3% of Total Investments)
           
$
2,945
 
South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/40
5/17 at 100.00
AA–
 
$
2,965,409
 
     
Tennessee – 3.8% (2.6% of Total Investments)
           
 
6,000
 
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
4/12 at 101.00
A1
   
6,162,600
 
 
20,415
 
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A, 0.000%, 1/01/18 – AGM Insured
1/13 at 75.87
AA–
   
14,866,611
 
 
1,000
 
Metropolitan Government of Nashville-Davidson County Health and Educational Facilities Board, Tennessee, Revenue Refunding and Improvement Bonds, Meharry Medical College, Series 1996, 6.000%, 12/01/19 – AMBAC Insured
12/17 at 100.00
N/R
   
1,094,850
 
 
1,750
 
Metropolitan Government of Nashville-Davidson County, Tennessee, Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26
11/11 at 100.00
AA+
   
1,754,480
 
 
1,500
 
Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007, 5.500%, 11/01/46 (5), (6)
11/17 at 100.00
N/R
   
111,150
 
 
30,665
 
Total Tennessee
       
23,989,691
 
     
Texas – 14.9% (10.0% of Total Investments)
           
 
6,000
 
Brazos River Authority, Texas, Revenue Refunding Bonds, Houston Lighting and Power Company, Series 1998, 5.050%, 11/01/18 – AMBAC Insured (Alternative Minimum Tax)
No Opt. Call
A3
   
6,152,820
 
 
2,000
 
Capital Area Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, The Roman Catholic Diocese of Austin, Series 2005B, Remarketed, 6.125%, 4/01/45
4/20 at 100.00
Baa2
   
2,060,120
 
 
1,000
 
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.000%, 1/01/41
1/21 at 100.00
BBB–
   
1,009,510
 
 
2,100
 
Denton Independent School District, Denton County, Texas, General Obligation Bonds, Refunding Series 2004, 5.000%, 8/15/33
8/14 at 100.00
AAA
   
2,164,008
 
 
4,250
 
Ennis Independent School District, Ellis County, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/26
8/16 at 60.73
Aaa
   
2,125,638
 
 
8,400
 
Gulf Coast Waste Disposal Authority, Texas, Waste Disposal Revenue Bonds, Valero Energy Corporation, Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax)
4/12 at 100.00
BBB
   
8,235,780
 
 
7,500
 
Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 – NPFG Insured
11/13 at 100.00
AA
   
7,647,525
 
     
Houston Community College System, Texas, Limited Tax General Obligation Bonds, Series 2003:
           
 
3,460
 
5.000%, 2/15/28 (Pre-refunded 2/15/13) – AMBAC Insured
2/13 at 100.00
AA+ (4)
   
3,667,392
 
 
1,540
 
5.000%, 2/15/28 (Pre-refunded 2/15/13) – AMBAC Insured (UB)
2/13 at 100.00
AA+ (4)
   
1,632,308
 
 
2,000
 
Houston, Texas, Water Conveyance System Contract, Certificates of Participation, Series 1993A-J, 6.800%, 12/15/11 – AMBAC Insured
No Opt. Call
N/R
   
2,011,560
 
 
6,080
 
Laredo Independent School District, Webb County, Texas, General Obligation Bonds, Series 2006, 5.000%, 8/01/29
8/16 at 100.00
AAA
   
6,618,566
 
 
9,150
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2004, 0.000%, 8/15/31
8/12 at 33.31
AAA
   
2,938,706
 
 
9,345
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34 – FGIC Insured
8/15 at 35.34
AAA
   
2,730,796
 
 
1,500
 
Lower Colorado River Authority, Texas, Refunding Revenue Bonds, Series 2010, 5.000%, 5/15/12
No Opt. Call
A1
   
1,537,710
 
 
3,520
 
Marble Falls Independent School District, Burnet County, Texas, General Obligation Bonds, Series 2007, 5.000%, 8/15/34
8/16 at 100.00
Aaa
   
3,726,061
 
 
46
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Texas (continued)
           
$
16,305
 
Matagorda County Navigation District 1, Texas, Revenue Bonds, Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30 (Alternative Minimum Tax)
5/12 at 100.00
BBB–
 
$
16,305,489
 
     
North Texas Tollway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation Series 2008I:
           
 
2,555
 
0.000%, 1/01/42 – AGC Insured
1/25 at 100.00
AA–
   
2,356,809
 
 
7,000
 
0.000%, 1/01/43
1/25 at 100.00
A2
   
6,458,200
 
     
Northside Independent School District, Bexar County, Texas, General Obligation Bonds, Series 2001A:
           
 
3,500
 
5.000%, 8/01/27
2/12 at 100.00
AAA
   
3,510,290
 
 
3,755
 
5.000%, 8/01/31
2/12 at 100.00
AAA
   
3,766,040
 
 
4,700
 
Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21
10/12 at 100.00
Baa2
   
4,784,083
 
 
3,000
 
Wylie Independent School District, Collin County, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/21
8/15 at 74.57
AAA
   
2,000,670
 
 
108,660
 
Total Texas
       
93,440,081
 
     
Utah – 0.5% (0.3% of Total Investments)
           
 
3,000
 
Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, Inc., Series 2009, 5.000%, 8/15/41
8/19 at 100.00
AA+
   
3,045,210
 
     
Virgin Islands – 0.3% (0.2% of Total Investments)
           
 
1,480
 
Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, Series 2009A, 6.750%, 10/01/37
10/19 at 100.00
BBB
   
1,589,017
 
     
Virginia – 0.3% (0.2% of Total Investments)
           
 
2,855
 
Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46
6/17 at 100.00
BB–
   
1,719,053
 
     
Washington – 3.8% (2.6% of Total Investments)
           
 
1,260
 
Central Puget Sound Regional Transit Authority, Washington, Sales Tax and Motor Vehicle Excise Tax Bonds, Series 1999, 4.750%, 2/01/28 – FGIC Insured
2/12 at 100.00
AAA
   
1,260,958
 
 
5,665
 
Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Bonds, Series 2002B, 5.250%, 7/01/37 (Mandatory put 7/01/12) – AMBAC Insured (Alternative Minimum Tax)
7/12 at 100.00
AA+
   
5,675,027
 
 
2,485
 
Grant County Public Utility District 2, Washington, Revenue Bonds, Wanapum Hydroelectric Development, Series 2006B, 5.000%, 1/01/32 – NPFG Insured
No Opt. Call
AA–
   
2,565,266
 
 
1,830
 
Kennewick Public Facilities District, Washington, Sales Tax Revenue Bonds, Series 2003, 5.000%, 12/01/20 – AMBAC Insured
6/13 at 100.00
A1
   
1,908,928
 
 
5,000
 
Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999B, 6.000%, 9/01/20 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
5,078,599
 
 
2,000
 
Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2009A, 6.000%, 1/01/33
7/19 at 100.00
A
   
2,082,619
 
 
3,075
 
Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2002, 6.625%, 6/01/32
6/13 at 100.00
Baa1
   
3,113,590
 
 
1,595
 
Washington State, General Obligation Bonds, Series 2002A-R-03, 5.000%, 1/01/17 – NPFG Insured
1/12 at 100.00
AA+
   
1,606,866
 
 
1,270
 
Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2003F, 0.000%, 12/01/24 – NPFG Insured
No Opt. Call
AA+
   
766,190
 
 
24,180
 
Total Washington
       
24,058,043
 
 
Nuveen Investments
 
47

 
 

 
 
   
Nuveen Municipal Advantage Fund, Inc. (continued)
NMA
 
Portfolio of Investments
   
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Wisconsin – 2.1% (1.4% of Total Investments)
           
$
535
 
Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/12 (ETM)
No Opt. Call
Aaa
 
$
551,691
 
 
2,945
 
Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
3,044,216
 
 
565
 
Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%, 11/01/29 – AGM Insured
11/14 at 100.00
Aa2
   
582,034
 
 
5,000
 
Madison, Wisconsin, Industrial Development Revenue Refunding Bonds, Madison Gas and Electric Company Projects, Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
4/12 at 100.00
AA–
   
5,020,349
 
 
3,000
 
Southeast Wisconsin Professional Baseball Park District, Sales Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 – NPFG Insured
No Opt. Call
AA–
   
3,655,559
 
 
12,045
 
Total Wisconsin
       
12,853,849
 
$
1,110,538
 
Total Investments (cost $929,006,567) – 149.4%
       
936,163,679
 
     
Floating Rate Obligations – (7.4)%
       
(46,513,333
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (47.4)% (7)
       
(296,800,000
     
Other Assets Less Liabilities – 5.4%
       
33,765,604
 
     
Net Assets Applicable to Common Shares – 100%
     
$
626,615,950
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(7)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.7%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
 See accompanying notes to financial statements.
 
48
 
Nuveen Investments

 
 

 

   
Nuveen Municipal Market Opportunity Fund, Inc.
NMO
 
Portfolio of Investments
   
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Alabama – 0.6% (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
N/R
 
$
1,807,580
 
 
2,485
 
5.000%, 1/01/41 – RAAI Insured
1/16 at 100.00
N/R
   
2,263,437
 
 
4,420
 
Total Alabama
       
4,071,017
 
     
Alaska – 3.4% (2.1% of Total Investments)
           
     
Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A:
           
 
1,125
 
5.250%, 12/01/34 – FGIC Insured (UB)
12/14 at 100.00
AA+
   
1,149,649
 
 
1,275
 
5.250%, 12/01/41 – FGIC Insured (UB)
12/14 at 100.00
AA+
   
1,298,855
 
 
7,000
 
Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005B-2, 5.250%, 12/01/30 – NPFG Insured
6/15 at 100.00
AA+
   
7,157,710
 
 
3,000
 
Alaska State, International Airport System Revenue Bonds, Series 2006A, 5.000%, 10/01/12 – NPFG Insured (Alternative Minimum Tax)
No Opt. Call
Aa3
   
3,121,890
 
 
13,025
 
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
6/14 at 100.00
B2
   
8,256,678
 
 
25,425
 
Total Alaska
       
20,984,782
 
     
California – 23.8% (15.1% of Total Investments)
           
 
1,350
 
Antelope Valley Union High School District, Los Angeles County, California, General Obligation Bonds, Series 2004B, 0.000%, 8/01/29 – NPFG Insured
No Opt. Call
Aa2
   
478,049
 
     
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2009F-1:
           
 
2,500
 
5.125%, 4/01/39
4/19 at 100.00
AA
   
2,611,775
 
 
2,500
 
5.625%, 4/01/44
4/19 at 100.00
AA
   
2,711,650
 
 
8,000
 
Beverly Hills Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2009, 0.000%, 8/01/33
No Opt. Call
Aa1
   
2,393,840
 
 
7,800
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36
12/18 at 100.00
B1
   
5,643,690
 
 
5,000
 
California Department of Water Resources Central Valley Project Water System Revenue Bonds, Series 2009-AF, 5.000%, 12/01/29
No Opt. Call
AAA
   
5,429,200
 
 
2,730
 
California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2003Y, 5.000%, 12/01/25 – FGIC Insured
6/13 at 100.00
AAA
   
2,876,929
 
 
1,350
 
California Educational Facilities Authority, Revenue Refunding Bonds, Loyola Marymount University, Series 2001A, 0.000%, 10/01/39 – NPFG Insured
No Opt. Call
A2
   
229,757
 
 
4,295
 
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist
3/13 at 100.00
A
   
4,209,143
 
     
Health System/West, Series 2003A, 5.000%, 3/01/33 California State, General Obligation Bonds, Various Purpose Series 2010:
           
 
7,000
 
5.250%, 3/01/30
3/20 at 100.00
A1
   
7,304,150
 
 
4,250
 
5.250%, 11/01/40
11/20 at 100.00
A1
   
4,349,450
 
 
25,000
 
California State, Various Purpose General Obligation Bonds, Series 2005, 4.750%, 3/01/35 – NPFG Insured (UB)
3/16 at 100.00
A1
   
24,126,500
 
 
9,000
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.250%, 3/01/45
3/16 at 100.00
A+
   
9,028,710
 
 
1,550
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
7/18 at 100.00
AA–
   
1,572,196
 
 
10,445
 
Castaic Lake Water Agency, California, Certificates of Participation, Water System Improvement Project, Series 1999, 0.000%, 8/01/29 – AMBAC Insured
No Opt. Call
AA
   
3,782,552
 
 
8,365
 
Cupertino Union School District, Santa Clara County, California, General Obligation Bonds, Series 2003B, 0.000%, 8/01/26 – FGIC Insured
8/13 at 52.66
Aa1
   
3,733,300
 
 
5,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) – AMBAC Insured
6/13 at 100.00
Aaa
   
5,349,250
 
 

Nuveen Investments
 
49

 
 

 

   
Nuveen Municipal Market Opportunity Fund, Inc. (continued)
NMO
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
     
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
           
$
3,500
 
0.000%, 6/01/26 – AGM Insured
No Opt. Call
AA+
 
$
1,618,540
 
 
3,000
 
5.000%, 6/01/45
6/15 at 100.00
A2
   
2,810,370
 
 
1,000
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47
6/17 at 100.00
BB+
   
651,200
 
 
1,500
 
Lincoln Unified School District, Placer County, California, Community Facilities District 1, Special Tax Bonds, Series 2005, 0.000%, 9/01/26 – AMBAC Insured
No Opt. Call
N/R
   
532,515
 
 
490
 
Los Angeles Department of Water and Power, California, Electric Plant Revenue Bonds, Second Series 1993, 4.750%, 10/15/20 (ETM)
4/12 at 100.00
AA– (4)
   
491,509
 
 
995
 
Los Angeles Department of Water and Power, California, Electric Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34 (ETM)
2/12 at 100.00
AA– (4)
   
998,781
 
 
2,500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-2, 5.000%, 7/01/22 – AGM Insured
No Opt. Call
AA+
   
2,768,500
 
 
5,000
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2003A, 5.125%, 7/01/40 – FGIC Insured
7/12 at 100.00
AA
   
5,049,350
 
 
2,000
 
Metropolitan Water District of Southern California, General Obligation Bonds, Series 2003A, 5.000%, 3/01/12
No Opt. Call
AAA
   
2,032,140
 
 
2,200
 
M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39
No Opt. Call
A
   
2,481,578
 
 
14,000
 
New Haven Unified School District, California, General Obligation Bonds, Refunding Series 2009, 0.000%, 8/01/34 – AGC Insured
No Opt. Call
AA+
   
3,463,460
 
 
1,000
 
Pajaro Valley Unified School District, Santa Cruz County, California, General Obligation Bonds, Series 2005B, 0.000%, 8/01/29 – AGM Insured
No Opt. Call
Aa2
   
345,910
 
 
5,000
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/30
11/20 at 100.00
Baa3
   
4,933,150
 
 
4,795
 
Palomar Pomerado Health, California, General Obligation Bonds, Election of 2004, Series 2007A, 5.000%, 8/01/32 – NPFG Insured
No Opt. Call
A+
   
4,836,333
 
 
3,205
 
San Diego Community College District, California, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 – AGM Insured
5/15 at 50.47
AA+
   
3,473,387
 
     
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A:
           
 
5,000
 
5.650%, 1/15/17 – NPFG Insured
1/14 at 102.00
Baa1
   
4,638,150
 
 
26,000
 
0.000%, 1/15/35 – NPFG Insured
No Opt. Call
Baa1
   
3,655,860
 
 
5,000
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 0.000%, 9/01/28 – NPFG Insured
9/15 at 50.47
Aa1
   
1,858,950
 
 
7,345
 
Sanger Unified School District, Fresno County, California, General Obligation Bonds, Series 2006A, 5.000%, 8/01/27 – AGM Insured
8/16 at 102.00
AA+
   
7,755,292
 
 
4,825
 
Santa Monica Community College District, Los Angeles County, California, General Obligation Bonds, Series 2005C, 0.000%, 8/01/25 – NPFG Insured
8/15 at 61.27
Aa1
   
2,301,429
 
 
3,000
 
University of California, General Revenue Bonds, Series 2005F, 4.750%, 5/15/25 – AGM Insured
5/13 at 101.00
AA+
   
3,148,050
 
 
2,550
 
Vista Unified School District, San Diego County, California, General Obligation Bonds, Series 2004B, 5.000%, 8/01/28 – FGIC Insured
8/13 at 100.00
Aa2
   
2,648,507
 
 
210,040
 
Total California
       
148,323,102
 
     
Colorado – 10.2% (6.5% of Total Investments)
           
 
1,085
 
Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – SYNCORA GTY Insured
10/16 at 100.00
BBB
   
954,366
 
 
6,385
 
Broomfield, Colorado, Sales and Use Tax Revenue Refunding and Improvement Bonds, Series 2002A, 5.500%, 12/01/22 – AMBAC Insured
12/12 at 100.00
Aa3
   
6,645,380
 
 
3,250
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Yampa Valley Medical Center, Series 2007, 5.125%, 9/15/29
9/17 at 100.00
BBB
   
3,023,053
 
 
7,200
 
Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40
No Opt. Call
AA
   
7,119,000
 
 
50
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Colorado (continued)
           
$
5,625
 
Denver City and County, Colorado, Airport System Revenue Bonds, Refunding Series 2006A, 5.000%, 11/15/11 – FGIC Insured (Alternative Minimum Tax)
No Opt. Call
A+
 
$
5,635,181
 
     
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B:
           
 
6,200
 
0.000%, 9/01/22 – NPFG Insured
No Opt. Call
Baa1
   
3,170,308
 
 
9,850
 
0.000%, 9/01/30 – NPFG Insured
No Opt. Call
Baa1
   
2,762,827
 
 
15,960
 
0.000%, 9/01/33 – NPFG Insured
No Opt. Call
Baa1
   
3,572,167
 
     
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B:
           
 
3,800
 
0.000%, 9/01/27 – NPFG Insured
9/20 at 67.94
Baa1
   
1,337,486
 
 
13,300
 
0.000%, 9/01/31 – NPFG Insured
9/20 at 53.77
Baa1
   
3,362,373
 
 
6,250
 
0.000%, 9/01/32 – NPFG Insured
9/20 at 50.83
Baa1
   
1,471,250
 
 
10,000
 
0.000%, 3/01/36 – NPFG Insured
9/20 at 41.72
Baa1
   
1,805,400
 
     
Lower Colorado River Authority, Texas, Contract Revenue bonds, Transmission Services Corporation, Series 2003B:
           
 
2,195
 
5.000%, 5/15/31 (Pre-refunded 5/15/12) – AGM Insured
5/12 at 100.00
AA+ (4)
   
2,249,897
 
 
9,655
 
5.000%, 5/15/31 – AGM Insured
5/12 at 100.00
AA+
   
9,695,261
 
 
10,000
 
Regional Transportation District, Colorado, Denver Transit Partners Eagle P3 Project Private Activity Bonds, Series 2010, 6.500%, 1/15/30
7/20 at 100.00
Baa3
   
10,712,000
 
 
110,755
 
Total Colorado
       
63,515,949
 
     
District of Columbia – 1.5% (1.0% of Total Investments)
           
 
10,000
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Senior Lien Refunding Series 2007A, 4.500%, 10/01/30 – AMBAC Insured
10/16 at 100.00
A1
   
9,480,500
 
     
Florida – 3.0% (1.9% of Total Investments)
           
 
4,715
 
Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, Series 2008, Trust 1191, 8.574%, 1/01/27 (Alternative Minimum Tax) (IF)
1/17 at 100.00
AA+
   
4,490,943
 
 
2,500
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010A-1, 5.375%, 10/01/41
10/20 at 100.00
A2
   
2,574,825
 
 
3,000
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010B, 5.000%, 10/01/26
10/20 at 100.00
A2
   
3,134,850
 
 
4,000
 
Orlando, Florida, Tourist Development Tax Revenue Bonds, Senior Lien 6th Cent Contract Payments, Series 2008A, 5.250%, 11/01/23 – AGC Insured
11/17 at 100.00
AA+
   
4,131,800
 
 
1,000
 
Orlando-Orange County Expressway Authority, Florida, Expressway Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/12 – AMBAC Insured
No Opt. Call
A
   
1,030,320
 
 
3,500
 
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/37
8/17 at 100.00
AA
   
3,507,595
 
 
18,715
 
Total Florida
       
18,870,333
 
     
Georgia – 1.6% (1.0% of Total Investments)
           
 
10,000
 
Gainesville and Hall County Hospital Authority, Georgia, Revenue Anticipation Certificates, Northeast Georgia Health Services Inc., Series 2010B, 5.250%, 2/15/45
2/41 at 100.00
A+
   
9,776,100
 
     
Illinois – 16.8% (10.6% of Total Investments)
           
 
4,595
 
Bolingbrook, Illinois, General Obligation Refunding Bonds, Series 2002B, 0.000%, 1/01/32 – FGIC Insured
No Opt. Call
Aa3
   
1,303,785
 
 
1,470
 
Chicago Board of Education, Cook County, Illinois, General Obligation Bonds, Dedicated Revenues Series 2011A, 5.000%, 12/01/41 (WI/DD, Settling 11/01/11)
12/21 at 100.00
AA–
   
1,470,515
 
     
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A:
           
 
4,600
 
0.000%, 12/01/20 – FGIC Insured
No Opt. Call
AA–
   
3,177,128
 
 
1,000
 
5.500%, 12/01/26 – FGIC Insured
No Opt. Call
AA–
   
1,076,270
 
 
4,000
 
Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 5.000%, 1/01/33 – AMBAC Insured
7/13 at 100.00
AA+
   
4,033,120
 
 
5,000
 
Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2008A, 5.000%, 1/01/38 – AGC Insured
1/18 at 100.00
AA+
   
5,096,600
 
 
1,450
 
Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series 1993, 5.375%, 1/01/14 - AMBAC Insured
No Opt. Call
AA+
   
1,513,119
 
 
5,250
 
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 5.000%, 1/01/28 – NPFG Insured
1/12 at 100.00
A
   
5,252,153
 
 
2,000
 
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2003C-2, 5.250%, 1/01/30 – AGM Insured (Alternative Minimum Tax)
1/14 at 100.00
AA+
   
2,003,700
 
 
Nuveen Investments
 
51

 
 

 

   
Nuveen Municipal Market Opportunity Fund, Inc. (continued)
NMO
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Illinois (continued)
           
$
7,100
 
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
 
$
7,339,838
 
 
1,780
 
Illinois Educational Facilities Authority, Revenue Bonds, University of Chicago, Refunding Series 2003A, 5.000%, 7/01/33
7/13 at 100.00
Aa1
   
1,802,446
 
 
10,000
 
Illinois Finance Authority, Illinois, Northwestern University, Revenue Bonds, Series 2006, 5.000%, 12/01/42 (UB)
12/15 at 100.00
AAA
   
10,463,100
 
 
3,000
 
Illinois Finance Authority, Revenue Bonds, Memorial Health System, Series 2009, 5.500%, 4/01/34
No Opt. Call
A+
   
3,044,520
 
 
5,450
 
Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Refunding Series 2010A, 6.000%, 5/15/39
5/20 at 100.00
A
   
5,639,170
 
 
5,550
 
Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical Centers, Series 2008A, 5.500%, 8/15/30
8/18 at 100.00
BBB
   
5,110,218
 
 
2,160
 
Illinois Health Facilities Authority, Revenue Bonds, Sherman Health Systems, Series 1997, 5.250%, 8/01/17 – AMBAC Insured
2/12 at 100.00
BBB
   
2,162,009
 
 
5,025
 
Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, Series 2002, 5.625%, 1/01/28
1/13 at 100.00
Baa1
   
5,026,809
 
     
Lake and McHenry Counties Community Unit School District 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B:
           
 
10,230
 
0.000%, 1/01/22 – AGM Insured
1/15 at 70.63
Aa3
   
6,218,408
 
 
6,780
 
0.000%, 1/01/24 – AGM Insured
1/15 at 63.44
Aa3
   
3,666,827
 
 
1,975
 
Lake County Community High School District 127, Grayslake, Illinois, General Obligation Bonds, Series 2002A, 9.000%, 2/01/13 – FGIC Insured
No Opt. Call
AAA
   
2,165,252
 
 
2,330
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Refunding Series 2010B-2, 5.000%, 6/15/50
No Opt. Call
AAA
   
2,277,249
 
     
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A:
           
 
6,500
 
0.000%, 6/15/25 – NPFG Insured
6/22 at 101.00
AAA
   
5,368,675
 
 
3,270
 
5.000%, 12/15/28 – NPFG Insured
6/12 at 101.00
AAA
   
3,292,334
 
 
3,700
 
0.000%, 6/15/30 – NPFG Insured
No Opt. Call
AAA
   
1,277,018
 
 
3,280
 
0.000%, 6/15/37 – NPFG Insured
No Opt. Call
AAA
   
714,909
 
 
11,715
 
0.000%, 12/15/38 – NPFG Insured
No Opt. Call
AAA
   
2,335,620
 
 
6,500
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.750%, 6/15/23 – NPFG Insured
6/12 at 101.00
AAA
   
6,733,740
 
 
2,080
 
Midlothian, Illinois, General Obligation Bonds, Series 2010A, 5.250%, 2/01/34
2/20 at 100.00
AA+
   
2,173,974
 
 
2,685
 
Sterling, Whiteside County, Illinois, General Obligation Bonds, Recovery Zone Facility Series 2010A, 5.250%, 5/01/31 – AGM Insured
5/20 at 100.00
AA+
   
2,815,303
 
 
130,475
 
Total Illinois
       
104,553,809
 
     
Indiana – 2.2% (1.4% of Total Investments)
           
 
3,400
 
Indiana Educational Facilities Authority, Revenue Bonds, Butler University, Series 2001, 5.500%, 2/01/26 – NPFG Insured
2/12 at 100.00
Baa1
   
3,408,976
 
 
4,030
 
Indiana Finance Authority Health System Revenue Bonds, Sisters of St. Francis Health Services, Inc. Obligated Group, Series 2009, 5.250%, 11/01/39
11/19 at 100.00
Aa3
   
4,113,058
 
 
6,000
 
Indiana Finance Authority, Revenue Bonds, Trinity Health Care Group, Refunding Series 2009A, 5.250%, 12/01/38
12/19 at 100.00
AA
   
6,213,420
 
 
13,430
 
Total Indiana
       
13,735,454
 
     
Iowa – 0.8% (0.5% of Total Investments)
           
 
970
 
Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A, 5.000%, 7/01/19
7/16 at 100.00
BB+
   
876,608
 
 
5,000
 
Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34
6/17 at 100.00
BBB
   
4,206,150
 
 
5,970
 
Total Iowa
       
5,082,758
 
     
Kansas – 1.2% (0.7% of Total Investments)
           
 
2,500
 
Kansas Development Finance Authority, Water Pollution Control Revolving Fund Leveraged Bonds, Series 2002-II, 5.500%, 11/01/21 (Pre-refunded 11/01/12)
11/12 at 100.00
AAA
   
2,630,175
 
 
4,215
 
Overland Park Development Corporation, Kansas, First Tier Revenue Bonds, Overland Park Convention Center, Series 2007A, 5.125%, 1/01/22 – AMBAC Insured
1/17 at 100.00
Baa3
   
3,980,182
 
 
52
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Kansas (continued)
           
$
600
 
Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical Center, Series 2006, 4.625%, 10/01/31
4/16 at 100.00
A1
 
$
600,000
 
 
7,315
 
Total Kansas
       
7,210,357
 
     
Kentucky – 0.2% (0.1% of Total Investments)
           
 
1,000
 
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/38 – AGC Insured
6/18 at 100.00
AA+
   
1,058,620
 
     
Louisiana – 3.7% (2.4% of Total Investments)
           
 
7,415
 
Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, Baton Rouge Community College Facilities Corporation, Series 2002, 5.000%, 12/01/32 – NPFG Insured
12/12 at 100.00
Baa1
   
6,968,543
 
     
Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004:
           
 
1,765
 
5.250%, 7/01/24 – NPFG Insured
7/14 at 100.00
Baa1
   
1,842,448
 
 
3,350
 
5.250%, 7/01/33 – NPFG Insured
7/14 at 100.00
Baa1
   
3,430,434
 
 
3,000
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2002A, 5.000%, 6/01/32 – AMBAC Insured
6/12 at 100.00
Aa1
   
3,053,070
 
 
7,850
 
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
11/11 at 101.00
A–
   
7,855,181
 
 
23,380
 
Total Louisiana
       
23,149,676
 
     
Maryland – 1.2% (0.7% of Total Investments)
           
 
4,410
 
Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.900%, 9/01/42 (Alternative Minimum Tax)
3/17 at 100.00
Aa2
   
4,276,686
 
 
2,500
 
Maryland Department of Transportation, Consolidated Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
No Opt. Call
AAA
   
2,940,650
 
 
6,910
 
Total Maryland
       
7,217,336
 
     
Michigan – 3.3% (2.1% of Total Investments)
           
 
5,000
 
Detroit Water Supply System, Michigan, Water Supply System Revenue Bonds, Series 2006D, 4.625%, 7/01/32 – AGM Insured
7/16 at 100.00
AA+
   
4,747,450
 
 
5,000
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39
11/19 at 100.00
A1
   
5,120,950
 
 
3,050
 
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42
6/18 at 100.00
B2
   
2,735,789
 
 
2,500
 
Okemos Public School District, Ingham County, Michigan, General Obligation Refunding Bonds, Series 1993, 0.000%, 5/01/12 – NPFG Insured
No Opt. Call
Aa3
   
2,485,825
 
 
1,150
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39
9/18 at 100.00
A1
   
1,366,534
 
 
3,795
 
Utica Community Schools, Macomb County, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/19
11/13 at 100.00
AA
   
4,060,271
 
 
20,495
 
Total Michigan
       
20,516,819
 
     
Minnesota – 0.8% (0.5% of Total Investments)
           
 
930
 
Minnesota Agricultural and Economic Development Board, Healthcare System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A, 6.375%, 11/15/29
11/11 at 100.00
A
   
930,846
 
 
1,285
 
Minnesota Housing Finance Agency, Single Family Remarketed Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
1,317,343
 
 
2,555
 
St. Paul Housing and Redevelopment Authority, Minnesota, Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 – AGM Insured
11/15 at 103.00
AA+
   
3,065,310
 
 
4,770
 
Total Minnesota
       
5,313,499
 
     
Mississippi – 0.9% (0.6% of Total Investments)
           
 
5,900
 
Mississippi Business Finance Corporation, Pollution Control Revenue Refunding Bonds, System Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22
4/12 at 100.00
BBB
   
5,929,500
 
 
Nuveen Investments
 
53

 
 

 

   
Nuveen Municipal Market Opportunity Fund, Inc. (continued)
NMO
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Missouri – 0.8% (0.5% of Total Investments)
           
     
Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1:
           
$
8,000
 
0.000%, 4/15/27 – AMBAC Insured
No Opt. Call
AA–
 
$
3,572,320
 
 
5,000
 
0.000%, 4/15/31 – AMBAC Insured
No Opt. Call
AA–
   
1,722,200
 
 
13,000
 
Total Missouri
       
5,294,520
 
     
Nebraska – 1.9% (1.2% of Total Investments)
           
 
11,690
 
Omaha Convention Hotel Corporation, Nebraska, Convention Center Revenue Bonds, Series 2007, 5.000%, 2/01/35 – AMBAC Insured
2/17 at 100.00
Aa3
   
11,951,622
 
     
Nevada – 6.7% (4.2% of Total Investments)
           
 
15,000
 
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
Aa3
   
16,104,300
 
 
11,615
 
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42
1/20 at 100.00
Aa3
   
11,952,067
 
     
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
N/R
   
1,050,438
 
 
8,500
 
0.000%, 1/01/26 – AMBAC Insured
No Opt. Call
N/R
   
850,000
 
 
7,860
 
0.000%, 1/01/27 – AMBAC Insured
No Opt. Call
N/R
   
741,198
 
 
19,300
 
5.375%, 1/01/40 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
4,439,000
 
 
3,000
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Series 2003B Refunding, 5.250%, 6/01/20 (Pre-refunded 12/01/12) – NPFG Insured
12/12 at 100.00
AA+ (4)
   
3,160,170
 
 
2,135
 
Reno, Nevada, Capital Improvement Revenue Bonds, Series 2005B, 0.000%, 6/01/37 – FGIC Insured
6/15 at 33.61
A3
   
378,493
 
 
2,500
 
Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare West, Series 2007A, 18.534%, 7/01/31 – BHAC Insured (IF)
7/17 at 100.00
AA+
   
2,838,000
 
 
76,035
 
Total Nevada
       
41,513,666
 
     
New Hampshire – 0.5% (0.3% of Total Investments)
           
 
3,000
 
New Hampshire Business Finance Authority, Revenue Bonds, Elliot Hospital Obligated Group Issue, Series 2009A, 6.125%, 10/01/39
10/19 at 100.00
BBB+
   
2,948,640
 
     
New Jersey – 2.9% (1.8% of Total Investments)
           
 
18,400
 
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 0.000%, 7/01/37
1/17 at 35.47
BBB
   
3,453,864
 
 
5,065
 
New Jersey Turnpike Authority, Revenue Bonds, Growth and Income Securities, Series 2004B, 0.000%, 1/01/35 – AMBAC Insured
1/17 at 100.00
A+
   
4,398,953
 
 
3,000
 
Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue Bonds, Series 2005A, 0.000%, 9/01/25 – NPFG Insured
No Opt. Call
Aa2
   
1,464,630
 
 
3,525
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
3,645,943
 
 
2,100
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.375%, 6/01/32 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
2,269,533
 
 
4,000
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
6/17 at 100.00
BB–
   
2,663,320
 
 
36,090
 
Total New Jersey
       
17,896,243
 
     
New Mexico – 0.2% (0.1% of Total Investments)
           
 
1,275
 
University of New Mexico, Revenue Refunding Bonds, Series 1992A, 6.250%, 6/01/12
No Opt. Call
AA
   
1,306,607
 
     
New York – 7.1% (4.5% of Total Investments)
           
 
7,000
 
Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue Bonds, Barclays Center Project, Series 2009, 0.000%, 7/15/45
No Opt. Call
BBB–
   
852,600
 
 
2,500
 
Dormitory Authority of the State of New York, Revenue Bonds, The New York and Presbyterian Hospital Project, Series 2007, 5.250%, 8/15/26 – AGM Insured
8/14 at 100.00
AA+
   
2,657,925
 
 
2,000
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47
No Opt. Call
A
   
2,034,400
 
 
3,000
 
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006B, 5.000%, 12/01/35
6/16 at 100.00
A–
   
3,060,750
 
 
54
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
New York (continued)
           
$
3,500
 
Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochester Project, Series 2010, 5.750%, 8/15/30
2/21 at 100.00
Aa2
 
$
3,960,915
 
 
5
 
New York City, New York, General Obligation Bonds, Fiscal Series 1997H, 6.125%, 8/01/25
2/12 at 100.00
AA
   
5,021
 
 
4,865
 
New York City, New York, General Obligation Bonds, Fiscal Series 2002A, 5.750%, 8/01/16
8/12 at 100.00
AA
   
5,039,459
 
 
135
 
New York City, New York, General Obligation Bonds, Fiscal Series 2002A, 5.750%, 8/01/16 (Pre-refunded 8/01/12)
8/12 at 100.00
Aa2 (4)
   
140,571
 
     
New York City, New York, General Obligation Bonds, Fiscal Series 2002G:
           
 
725
 
5.000%, 8/01/17
8/12 at 100.00
AA
   
746,946
 
 
5,410
 
5.750%, 8/01/18
8/12 at 100.00
AA
   
5,611,090
 
     
New York City, New York, General Obligation Bonds, Fiscal Series 2002G:
           
 
275
 
5.000%, 8/01/17 (Pre-refunded 8/01/12)
8/12 at 100.00
Aa2 (4)
   
284,807
 
 
1,120
 
5.750%, 8/01/18 (Pre-refunded 8/01/12)
8/12 at 100.00
AA (4)
   
1,166,222
 
 
8,550
 
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 5.500%, 12/01/31
12/20 at 100.00
BBB–
   
8,604,207
 
 
10,000
 
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
Baa1
   
9,932,400
 
 
49,085
 
Total New York
       
44,097,313
 
     
North Carolina – 5.9% (3.7% of Total Investments)
           
 
1,900
 
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
1/15 at 100.00
AA+ (4)
   
2,152,681
 
 
17,000
 
North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series 2005A, 5.000%, 10/01/41
10/15 at 100.00
AA+
   
17,631,890
 
 
3,000
 
North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2005, 5.250%, 1/01/20 – AMBAC Insured
1/16 at 100.00
A–
   
3,351,510
 
 
4,000
 
North Carolina Medical Care Commission, Health System Revenue Bonds, Mission St. Joseph’s Health System, Series 2007, 4.500%, 10/01/31 (UB)
10/17 at 100.00
AA
   
3,874,480
 
 
7,500
 
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/19 – NPFG Insured
1/13 at 100.00
A
   
7,830,600
 
 
1,900
 
North Carolina Turnpike Authority, Triangle Expressway System Revenue Bonds, Series 2009A, 5.750%, 1/01/39 – AGC Insured
1/19 at 100.00
AA+
   
2,047,003
 
 
35,300
 
Total North Carolina
       
36,888,164
 
     
North Dakota – 0.3% (0.2% of Total Investments)
           
 
1,500
 
Fargo, North Dakota, Health System Revenue Bonds, Sanford Health, Refunding Series 2011, 6.000%, 11/01/28
11/21 at 100.00
AA–
   
1,662,375
 
     
Ohio – 8.2% (5.2% of Total Investments)
           
     
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
           
 
110
 
5.125%, 6/01/24
6/17 at 100.00
BB–
   
84,756
 
 
4,415
 
5.375%, 6/01/24
6/17 at 100.00
BB–
   
3,488,071
 
 
1,250
 
5.875%, 6/01/30
6/17 at 100.00
BB–
   
945,100
 
 
6,215
 
5.750%, 6/01/34
6/17 at 100.00
BB–
   
4,510,598
 
 
4,300
 
6.000%, 6/01/42
6/17 at 100.00
BB–
   
3,134,098
 
 
4,750
 
5.875%, 6/01/47
6/17 at 100.00
BB–
   
3,374,305
 
 
6,000
 
Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.250%, 11/01/29
11/20 at 100.00
BBB+
   
5,826,660
 
 
10,000
 
Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2006, 4.250%, 12/01/32 – AGM Insured (UB)
12/16 at 100.00
AA+
   
9,896,600
 
 
5,705
 
Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering Medical Center, Series1999, 6.300%, 4/01/12
No Opt. Call
A
   
5,822,979
 
 
5,500
 
Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19
No Opt. Call
BBB–
   
6,069,745
 
 
7,500
 
Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Series 2009A, 5.500%, 1/01/39
1/19 at 100.00
Aa2
   
7,816,950
 
 
55,745
 
Total Ohio
       
50,969,862
 
 
Nuveen Investments
 
55

 
 

 

   
Nuveen Municipal Market Opportunity Fund, Inc. (continued)
NMO
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Oklahoma – 0.3% (0.2% of Total Investments)
           
$
1,675
 
Oklahoma Development Finance Authority, Health System Revenue Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38
8/18 at 100.00
AA–
 
$
1,737,260
 
     
Oregon – 0.8% (0.5% of Total Investments)
           
 
5,000
 
Oregon Health Sciences University, Revenue Bonds, Series 2002A, 5.250%, 7/01/22 – NPFG Insured
1/13 at 100.00
A1
   
5,093,750
 
     
Pennsylvania – 5.4% (3.4% of Total Investments)
           
 
3,000
 
Allegheny County Hospital Development Authority, Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.625%, 8/15/39
No Opt. Call
Aa3
   
3,128,340
 
 
5,000
 
Delaware County Industrial Development Authority, Pennsylvania, Resource Recovery Revenue Refunding Bonds, Series 1997A, 6.200%, 7/01/19
1/12 at 100.00
Ba1
   
4,994,050
 
 
5,975
 
Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue Bonds, Series 2010A-2, 0.000%, 12/01/34
12/20 at 100.00
AA
   
4,898,066
 
 
10,000
 
Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue Bonds, Series 2009C, 0.000%, 6/01/33 – AGM Insured
6/26 at 100.00
AA–
   
8,493,100
 
 
11,890
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010B, 5.000%, 5/15/40
5/20 at 100.00
AA
   
12,092,249
 
 
35,865
 
Total Pennsylvania
       
33,605,805
 
     
Puerto Rico – 7.6% (4.8% of Total Investments)
           
 
3,330
 
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44
7/18 at 100.00
Baa2
   
3,454,475
 
 
8,000
 
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2010XX, 5.750%, 7/01/36
7/20 at 100.00
A3
   
8,402,880
 
 
4,300
 
Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 4.500%, 12/01/23 (UB)
12/13 at 100.00
AA+
   
4,351,858
 
 
8,200
 
Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 4.500%, 12/01/23 (Pre-refunded 12/01/13) (UB)
12/13 at 100.00
Aaa
   
8,864,856
 
 
10,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
8/19 at 100.00
A+
   
10,808,400
 
 
4,310
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.250%, 8/01/41
8/20 at 100.00
A+
   
4,374,564
 
 
7,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/40 – NPFG Insured
No Opt. Call
Aa2
   
1,175,230
 
 
6,255
 
Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
5/12 at 100.00
BBB
   
5,886,330
 
 
51,395
 
Total Puerto Rico
       
47,318,593
 
     
Rhode Island – 1.5% (0.9% of Total Investments)
           
 
5,815
 
Rhode Island Convention Center Authority, Lease Revenue Bonds, Series 2003A, 5.000%, 5/15/18 – AGM Insured
No Opt. Call
AA+
   
6,100,575
 
 
3,310
 
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
6/12 at 100.00
BBB
   
3,037,091
 
 
9,125
 
Total Rhode Island
       
9,137,666
 
     
South Carolina – 4.8% (3.1% of Total Investments)
           
 
24,730
 
Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22 (Pre-refunded 12/01/12)
12/12 at 101.00
Aaa
   
26,366,631
 
 
3,560
 
South Carolina Public Service Authority, Revenue Refunding Bonds, Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/20 – AMBAC Insured
7/13 at 100.00
AA–
   
3,766,373
 
 
28,290
 
Total South Carolina
       
30,133,004
 
     
Tennessee – 0.8% (0.5% of Total Investments)
           
 
5,000
 
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Bonds, East Tennessee Children’s Hospital, Series 2003A, 5.000%, 7/01/23 – RAAI Insured
7/13 at 100.00
BBB+
   
4,966,950
 
 
56
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Texas – 12.0% (7.6% of Total Investments)
           
$
2,500
 
Alliance Airport Authority, Texas, Special Facilities Revenue Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29 (Alternative Minimum Tax) (5)
12/12 at 100.00
CCC+
 
$
1,329,750
 
 
2,845
 
Cedar Hill Independent School District, Dallas County, Texas, General Obligation Bonds, Refunding School Building Series 2005, 5.000%, 8/15/34
8/15 at 100.00
AAA
   
3,061,618
 
 
1,000
 
Cedar Hill Independent School District, Dallas County, Texas, General Obligation Bonds, Series 2002, 0.000%, 8/15/32 – FGIC Insured
No Opt. Call
AA–
   
346,420
 
 
1,500
 
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 5.750%, 1/01/31
1/21 at 100.00
BBB–
   
1,515,825
 
 
15,000
 
Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured
1/15 at 100.00
BBB
   
12,971,400
 
 
2,500
 
Comal Independent School District, Comal, Bexar, Guadalupe, Hays, and Kendall Counties, Texas, General Obligation Bonds, Series 2005A, 0.000%, 2/01/23
No Opt. Call
Aaa
   
1,725,900
 
 
6,000
 
Dallas-Ft. Worth International Airport Facility Improvement Corporation, Texas, Revenue Bonds, American Airlines Inc., Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax) (5)
5/12 at 100.00
CCC+
   
3,311,040
 
 
2,200
 
Denton Independent School District, Denton County, Texas, General Obligation Bonds, Refunding Series 2004, 5.000%, 8/15/33
8/14 at 100.00
AAA
   
2,267,056
 
     
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
   
1,562,146
 
 
4,000
 
0.000%, 8/15/31
8/16 at 46.64
Aaa
   
1,491,840
 
 
1,715
 
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/32 – AMBAC Insured
No Opt. Call
A2
   
476,290
 
 
1,250
 
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001A, 5.000%, 12/01/20 – AGM Insured
6/12 at 100.00
AA+
   
1,255,025
 
 
2,400
 
Houston, Texas, Senior Lien Airport System Revenue Bonds, Refunding Series 2009A, 5.500%, 7/01/39
7/18 at 100.00
AA–
   
2,551,656
 
 
9,350
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/32 – FGIC Insured
8/15 at 39.50
AAA
   
3,059,788
 
 
6,000
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/33
8/14 at 35.28
AAA
   
1,853,760
 
 
3,525
 
Marble Falls Independent School District, Burnet County, Texas, General Obligation Bonds, Series 2007, 5.000%, 8/15/34
8/16 at 100.00
Aaa
   
3,731,354
 
 
5,250
 
Midlothian Independent School District, Ellis County, Texas, General Obligation Bonds, Series 2005, 5.000%, 2/15/34
2/15 at 100.00
Aaa
   
5,433,698
 
 
4,000
 
North Texas Tollway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation Series 2008I, 0.000%, 1/01/43
1/25 at 100.00
A2
   
3,690,400
 
 
3,755
 
Northside Independent School District, Bexar County, Texas, General Obligation Bonds, Series 2001A, 5.000%, 8/01/31
2/12 at 100.00
AAA
   
3,766,040
 
 
3,500
 
San Antonio, Texas, Electric and Gas Revenue Bonds, Series 2008A, 5.500%, 2/01/12
No Opt. Call
Aa1
   
3,546,375
 
 
3,295
 
Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds, Series 2007, Residuals 1762, 17.044%, 2/15/36 (IF)
2/17 at 100.00
AA–
   
3,394,509
 
 
2,890
 
Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White HealthCare Project, Series 2010, 5.500%, 8/15/45
8/20 at 100.00
A1
   
2,957,453
 
 
5,000
 
Texas Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier Series 2002A, 5.750%, 8/15/38 – AMBAC Insured
8/12 at 100.00
BBB+
   
5,019,600
 
 
5,000
 
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34
8/15 at 36.81
AAA
   
1,539,450
 
     
Wylie Independent School District, Collin County, Texas, General Obligation Bonds, Series 2005:
           
 
3,000
 
0.000%, 8/15/23
8/15 at 67.10
AAA
   
1,774,380
 
 
2,000
 
0.000%, 8/15/24
8/15 at 63.56
AAA
   
1,113,200
 
 
103,425
 
Total Texas
       
74,745,973
 
 
Nuveen Investments
 
57

 
 

 

   
Nuveen Municipal Market Opportunity Fund, Inc. (continued)
NMO
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Utah – 0.5% (0.3% of Total Investments)
           
$
3,000
 
Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, Inc., Series 2009, 5.000%, 8/15/41
8/19 at 100.00
AA+
 
$
3,045,210
 
     
Virginia – 2.8% (1.8% of Total Investments)
           
 
21,500
 
Metropolitan Washington DC Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Series 2009C, 0.000%, 10/01/41 – AGC Insured
10/26 at 100.00
AA+
   
17,654,725
 
     
Washington – 8.8% (5.5% of Total Investments)
           
 
2,755
 
Cowlitz County, Washington, Special Sewerage Revenue Refunding Bonds, CSOB Wastewater Treatment Facilities, Series 2002, 5.500%, 11/01/16 – FGIC Insured
No Opt. Call
A1
   
3,044,165
 
 
1,235
 
Energy Northwest, Washington, Electric Revenue Bonds, Nuclear Project 1, Series 2006A, 5.000%, 7/01/12
No Opt. Call
Aa1
   
1,274,174
 
 
1,830
 
Kennewick Public Facilities District, Washington, Sales Tax Revenue Bonds,
   Series 2003, 5.000%, 12/01/20 – AMBAC Insured
6/13 at 100.00
A1
   
1,908,928
 
      King County, Washington, Sewer Revenue Bonds, Series 2001:            
 
820
 
5.000%, 1/01/23 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
Aa2 (4)
   
826,585
 
 
1,680
 
5.000%, 1/01/23 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
AA+ (4)
   
1,693,490
 
 
3,050
 
Port of Seattle, Washington, Revenue Bonds, Series 2001A, 5.000%, 4/01/31 – FGIC Insured
4/12 at 100.00
Aa2
   
3,052,013
 
 
2,150
 
Seattle, Washington, General Obligation Refunding and Improvement Bonds, Series 2002, 4.500%, 12/01/20
12/12 at 100.00
AAA
   
2,197,601
 
 
5,000
 
Seattle, Washington, General Obligation Refunding Bonds, Series 2002, 5.200%, 7/01/32
No Opt. Call
AAA
   
5,099,500
 
 
3,000
 
Spokane County School District 81, Spokane, Washington, General Obligation Bonds, Series 2005, 5.000%, 6/01/24 – NPFG Insured
6/15 at 100.00
Aa1
   
3,204,450
 
 
8,000
 
Washington State Health Care Facilities Authority, Revenue Bonds, MultiCare Health System, Series 2008A, 5.250%, 8/15/34 – AGM Insured
5/18 at 100.00
AA+
   
8,273,760
 
 
10,340
 
Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
6/13 at 100.00
A3
   
10,516,089
 
 
9,000
 
Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2002C, 5.000%, 1/01/21 (Pre-refunded 1/01/12) – AGM Insured
1/12 at 100.00
AA+ (4)
   
9,072,269
 
 
9,000
 
Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2003C, 0.000%, 6/01/28 – FGIC Insured
No Opt. Call
AA+
   
4,412,249
 
 
57,860
 
Total Washington
       
54,575,273
 
     
Wisconsin – 2.5% (1.6% of Total Investments)
           
 
1,675
 
Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
1,731,430
 
 
1,755
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Divine Savior Healthcare, Series 2006, 4.750%, 5/01/25
5/16 at 100.00
BBB
   
1,630,570
 
 
1,250
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, United Lutheran Program for the Aging Inc., Series 1998, 5.700%, 3/01/28
3/12 at 100.00
N/R
   
1,147,787
 
 
9,920
 
Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, 5.750%, 5/01/33
5/19 at 100.00
AA–
   
11,038,677
 
 
14,600
 
Total Wisconsin
       
15,548,464
 
 
58
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Wyoming – 0.7% (0.5% of Total Investments)
           
$
4,080
 
Campbell County, Wyoming Solid Waste Facilities Revenue Bonds, Basin Electric Power Cooperative – Dry Fork Station Facilities, Series 2009A, 5.750%, 7/15/39
7/19 at 100.00
A1
 
$
4,432,185
 
$
1,232,535
 
Total Investments (cost $999,529,521) – 158.2%
       
985,313,481
 
     
Floating Rate Obligations – (7.0)%
       
(43,530,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value- (56.3)% (6)
       
(350,900,000
     
Other Assets Less Liabilities – 5.1%
       
31,931,154
 
     
Net Assets Applicable to Common Shares – 100%
     
$
622,814,635
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 35.6%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
 See accompanying notes to financial statements.
 
Nuveen Investments
 
59

 
 

 

   
Nuveen Dividend Advantage Municipal Fund
NAD
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Municipal Bonds – 152.2% (99.9% of Total Investments)
           
     
Alabama – 0.3% (0.2% of Total Investments)
           
$
1,600
 
Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, Series 2000, 5.750%, 12/01/20
12/11 at 101.00
A1
 
$
1,609,392
 
     
Alaska – 0.1% (0.1% of Total Investments)
           
 
750
 
Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A, 5.250%, 12/01/34 – FGIC Insured (UB)
12/14 at 100.00
AA+
   
766,433
 
     
Arizona – 2.8% (1.9% of Total Investments)
           
     
Phoenix Civic Improvement Corporation, Arizona, Senior Lien Airport Revenue Bonds, Series 2008A:
           
 
2,350
 
5.000%, 7/01/33
7/18 at 100.00
AA–
   
2,440,875
 
 
8,200
 
5.000%, 7/01/38
7/18 at 100.00
AA–
   
8,469,124
 
     
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc Prepay Contract Obligations, Series 2007:
           
 
500
 
5.500%, 12/01/29
No Opt. Call
A
   
497,890
 
 
5,000
 
5.000%, 12/01/37
No Opt. Call
A
   
4,534,850
 
 
16,050
 
Total Arizona
       
15,942,739
 
     
California – 9.7% (6.4% of Total Investments)
           
 
1,535
 
Alameda Corridor Transportation Authority, California, Senior Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 – NPFG Insured
No Opt. Call
A
   
291,773
 
 
6,000
 
Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/28 – AGM Insured
No Opt. Call
AA–
   
1,980,240
 
 
3,000
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42
11/16 at 100.00
AA–
   
2,955,720
 
 
5,000
 
California State, General Obligation Bonds, Series 2005, 5.000%, 3/01/31
3/16 at 100.00
A1
   
5,062,750
 
 
4,250
 
California State, General Obligation Bonds, Various Purpose Series 2010, 5.250%, 11/01/40
11/20 at 100.00
A1
   
4,349,450
 
 
6,750
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
8/19 at 100.00
Aa2
   
7,679,408
 
 
65
 
California, General Obligation Bonds, Series 1997, 5.000%, 10/01/18 – AMBAC Insured
4/12 at 100.00
A1
   
65,211
 
 
5,000
 
Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2007A, 5.000%, 8/01/31 – AGM Insured
No Opt. Call
AA+
   
5,175,000
 
 
2,000
 
Dublin Unified School District, Alameda County, California, General Obligation Bonds, Series 2007C, 0.000%, 8/01/31 – NPFG Insured
8/17 at 49.41
Aa2
   
576,680
 
     
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
           
 
3,500
 
0.000%, 6/01/26 – AGM Insured
No Opt. Call
AA+
   
1,618,540
 
 
9,925
 
5.000%, 6/01/45 – AGC Insured
6/15 at 100.00
AA+
   
9,444,829
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
5,860
 
5.000%, 6/01/33
6/17 at 100.00
BB+
   
4,140,559
 
 
1,000
 
5.125%, 6/01/47
6/17 at 100.00
BB+
   
651,200
 
 
2,200
 
M-S-R Energy Authority, California, Gas Revenue Bonds, Series 2009C, 6.500%, 11/01/39
No Opt. Call
A
   
2,481,578
 
 
2,000
 
Murrieta Valley Unified School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2006A, 5.125%, 9/01/26 – AGM Insured
9/16 at 100.00
AA+
   
2,076,060
 
 
765
 
Palmdale Civic Authority, California, Revenue Refinancing Bonds, Civic Center Project, Series 1997A, 5.375%, 7/01/12 – NPFG Insured
1/12 at 100.00
Baa1
   
766,744
 
 
2,000
 
Riverside Unified School District, Riverside County, California, General Obligation Bonds, Election 2001 Series 2006B, 5.000%, 8/01/30 – AGC Insured
8/15 at 101.00
Aa2
   
2,034,920
 
     
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A:
           
 
2,000
 
0.000%, 1/15/29 – NPFG Insured
No Opt. Call
Baa1
   
474,800
 
 
17,000
 
0.000%, 1/15/35 – NPFG Insured
No Opt. Call
Baa1
   
2,390,370
 
 
60
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
$
575
 
Seaside Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2003, 5.375%, 8/01/18 – NPFG Insured
8/13 at 100.00
A
 
$
590,450
 
 
80,425
 
Total California
       
54,806,282
 
     
Colorado – 6.5% (4.2% of Total Investments)
           
 
1,125
 
Antelope Heights Metropolitan District, Colorado, Limited Tax General Obligation Bonds, Series 2007, 5.000%, 12/01/37 – RAAI Insured
12/17 at 100.00
N/R
   
819,968
 
 
3,330
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34
7/19 at 100.00
AA
   
3,494,136
 
     
Denver City and County, Colorado, Airport Special Facilities Revenue Bonds, Rental Car Projects, Series 1999A:
           
 
2,170
 
6.000%, 1/01/12 – NPFG Insured (Alternative Minimum Tax)
No Opt. Call
A–
   
2,179,808
 
 
675
 
6.000%, 1/01/13 – NPFG Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
   
677,626
 
 
4,500
 
Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2001A, 5.500%, 11/15/11 – FGIC Insured (Alternative Minimum Tax)
No Opt. Call
A+
   
4,509,000
 
 
8,515
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B, 0.000%, 9/01/25 – NPFG Insured
No Opt. Call
Baa1
   
3,487,574
 
 
25,000
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/31 – NPFG Insured
No Opt. Call
Baa1
   
6,492,000
 
 
60,000
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 3/01/36 – NPFG Insured
No Opt. Call
Baa1
   
11,087,400
 
 
12,500
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2006B, 0.000%, 9/01/38 – NPFG Insured
9/26 at 54.77
Baa1
   
1,829,125
 
 
2,000
 
Metropolitan Football Stadium District, Colorado, Sales Tax Revenue Bonds, Series 1999A, 0.000%, 1/01/12 – NPFG Insured
No Opt. Call
Baa1
   
1,994,960
 
 
119,815
 
Total Colorado
       
36,571,597
 
     
Connecticut – 0.3% (0.2% of Total Investments)
           
 
4,335
 
Mashantucket Western Pequot Tribe, Connecticut, Subordinate Special Revenue Bonds, Series 2007A, 5.750%, 9/01/34
11/17 at 100.00
N/R
   
1,594,933
 
     
Florida – 10.9% (7.2% of Total Investments)
           
 
1,185
 
Florida Housing Finance Agency, Housing Revenue Bonds, Mar Lago Village Apartments, Series 1997F, 5.800%, 12/01/17 – AMBAC Insured (Alternative Minimum Tax)
12/11 at 100.00
N/R
   
1,185,818
 
 
15,000
 
Florida State Board of Education, Public Education Capital Outlay Bonds, Series 2005E, 4.500%, 6/01/35 (UB)
6/15 at 101.00
AAA
   
15,033,300
 
 
2,500
 
Marion County Hospital District, Florida, Revenue Bonds, Munroe Regional Medical Center, Series 2007, 5.000%, 10/01/34
10/17 at 100.00
A3
   
2,402,650
 
 
13,625
 
Martin County Industrial Development Authority, Florida, Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
12/11 at 100.00
BB+
   
13,667,510
 
     
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System Obligation Group, Series 2007:
           
 
22,000
 
5.000%, 8/15/37 (UB)
8/17 at 100.00
AA
   
22,047,740
 
 
7,370
 
5.000%, 8/15/42 (UB)
8/17 at 100.00
AA
   
7,363,662
 
 
61,680
 
Total Florida
       
61,700,680
 
     
Georgia – 1.7% (1.1% of Total Investments)
           
 
5,000
 
Cobb County Development Authority, Georgia, Student Housing Revenue Bonds, KSU Village II Real Estate Foundation LLC Project, Series 2007A, 5.250%, 7/15/38 – AMBAC Insured
7/17 at 100.00
Baa2
   
4,670,100
 
 
5,000
 
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional Medical Center Project, Series 2010, 8.000%, 12/01/40
12/20 at 100.00
N/R
   
5,122,400
 
 
10,000
 
Total Georgia
       
9,792,500
 
     
Idaho – 0.1% (0.0% of Total Investments)
           
 
100
 
Idaho Housing and Finance Association, Single Family Mortgage Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax)
1/12 at 100.00
Aa2
   
104,152
 
 
125
 
Idaho Housing and Finance Association, Single Family Mortgage Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax)
1/12 at 100.00
Aa2
   
127,544
 
 
Nuveen Investments
 
61

 
 

 

   
Nuveen Dividend Advantage Municipal Fund (continued)
NAD
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Idaho (continued)
           
$
165
 
Idaho Housing and Finance Association, Single Family Mortgage Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
1/12 at 100.00
Aaa
 
$
167,378
 
 
390
 
Total Idaho
       
399,074
 
     
Illinois – 27.5% (18.0% of Total Investments)
           
 
1,070
 
Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, Series 1999, 5.750%, 12/01/12
12/11 at 100.00
BBB+
   
1,072,761
 
 
2,205
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/29 – FGIC Insured
No Opt. Call
AA–
   
792,852
 
 
7,250
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 5.500%, 12/01/26 – FGIC Insured
No Opt. Call
AA–
   
7,802,958
 
     
Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue Bonds, Archer Court Apartments, Series 1999A:
           
 
595
 
5.500%, 12/20/19 (Alternative Minimum Tax)
4/12 at 100.00
AA–
   
595,666
 
 
1,210
 
5.600%, 12/20/29 (Alternative Minimum Tax)
4/12 at 100.00
AA–
   
1,210,545
 
 
1,925
 
5.650%, 12/20/40 (Alternative Minimum Tax)
4/12 at 100.00
AA–
   
1,925,635
 
 
22,750
 
Chicago, Illinois, General Obligation Refunding Bonds, Emergency Telephone System, Series 1999, 5.500%, 1/01/23 – FGIC Insured
No Opt. Call
Aa3
   
24,701,268
 
 
1,655
 
Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series 1993, 5.375%, 1/01/14 - AMBAC Insured
No Opt. Call
AA+
   
1,727,042
 
 
3,340
 
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.000%, 1/01/33 – FGIC Insured
1/16 at 100.00
A1
   
3,360,341
 
 
190
 
DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 – AGM Insured
11/13 at 100.00
Aa3
   
203,900
 
 
810
 
DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 (Pre-refunded 11/01/13) – AGM Insured
11/13 at 100.00
Aa3 (4)
   
886,270
 
 
3,935
 
Illinois Development Finance Authority, Local Government Program Revenue Bonds, Lake County School District 116 – Round Lake, Series 1999, 0.000%, 1/01/15 – NPFG Insured
No Opt. Call
Baa1
   
3,542,602
 
 
5,000
 
Illinois Educational Facilities Authority, Revenue Bonds, University of Chicago, Refunding Series 2003A, 5.000%, 7/01/33
7/13 at 100.00
Aa1
   
5,063,050
 
 
1,500
 
Illinois Finance Authority, Revenue Bonds, Central DuPage Health, Series 2009B, 5.500%, 11/01/39
11/19 at 100.00
AA
   
1,555,455
 
 
2,000
 
Illinois Finance Authority, Revenue Bonds, Children’s Memorial Hospital, Series 2008A, 5.250%, 8/15/47 – AGC Insured (UB)
8/18 at 100.00
AA–
   
2,017,680
 
 
1,000
 
Illinois Finance Authority, Revenue Bonds, Edward Health Services Corporation, Series 2008A, 5.500%, 2/01/40 – AMBAC Insured
2/18 at 100.00
A+
   
1,002,260
 
 
5,640
 
Illinois Finance Authority, Revenue Bonds, University of Chicago, Series 2004A, 5.000%, 7/01/34
7/14 at 100.00
Aa1
   
5,790,193
 
 
1,225
 
Illinois Finance Authority, Revenue Bonds, University of Chicago, Series 2007, 5.000%, 7/01/19
7/17 at 100.00
Aa1
   
1,385,144
 
 
4,000
 
Illinois Finance Authority, Revenue Refunding Bonds, Silver Cross Hospital and Medical Centers, Series 2008A, 6.000%, 8/15/23
8/18 at 100.00
BBB
   
4,079,880
 
 
5,980
 
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., Refunding Series 2007A, 5.250%, 5/01/34
5/17 at 100.00
Baa3
   
5,464,584
 
 
9,780
 
Illinois Health Facilities Authority, Remarketed Revenue Bonds, University of Chicago Project, Series 1985A, 5.500%, 8/01/20
2/12 at 103.00
Aa1
   
10,088,266
 
 
1,500
 
Illinois Housing Development Authority, Housing Finance Bonds, Series 2005E, 4.800%, 1/01/36 – FGIC Insured
1/15 at 100.00
AA
   
1,464,255
 
 
2,000
 
Kane & DeKalb Counties, Illinois, Community United School District 301, General Obligation Bonds, Series 2006, 0.000%, 12/01/21 – NPFG Insured
No Opt. Call
Aa3
   
1,273,360
 
 
11,345
 
Lake and McHenry Counties Community Unit School District 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/25 – AGM Insured
1/15 at 60.14
Aa3
   
5,759,970
 
 
3,000
 
Lombard Public Facilities Corporation, Illinois, First Tier Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36
1/16 at 100.00
N/R
   
2,017,470
 
 
62
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Illinois (continued)
           
     
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A:
           
$
12,250
 
0.000%, 12/15/22 – NPFG Insured
No Opt. Call
AA–
 
$
7,203,735
 
 
13,000
 
0.000%, 12/15/23 – NPFG Insured
No Opt. Call
AA–
   
7,134,010
 
 
3,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 5.750%, 6/15/23 – NPFG Insured
6/12 at 101.00
AAA
   
3,107,880
 
 
1,840
 
Oak Park, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 11/01/27 – SYNCORA GTY Insured
11/15 at 54.14
Aa2
   
789,967
 
     
Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999:
           
 
22,650
 
5.750%, 6/01/19 – AGM Insured
No Opt. Call
AA+
   
27,519,071
 
 
3,500
 
5.750%, 6/01/23 – AGM Insured
No Opt. Call
AA+
   
4,185,475
 
 
1,300
 
Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%, 12/01/34 – FGIC Insured
12/14 at 100.00
Aaa
   
1,400,815
 
 
10,000
 
Will County Community High School District 210 Lincoln-Way, Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 – AGM Insured
No Opt. Call
Aa2
   
5,846,400
 
 
4,500
 
Will County School District 122, New Lenox, Illinois, General Obligation Bonds, Series 2000B, 0.000%, 11/01/18 – AGM Insured
No Opt. Call
Aa3
   
3,426,885
 
 
172,945
 
Total Illinois
       
155,397,645
 
     
Indiana – 3.9% (2.6% of Total Investments)
           
 
1,360
 
Hospital Authority of Delaware County, Indiana, Hospital Revenue Refunding Bonds, Cardinal Health System, Series 1997, 5.000%, 8/01/16 – AMBAC Insured
2/12 at 100.00
N/R
   
1,342,619
 
 
4,000
 
Indiana Finance Authority, Revenue Bonds, Trinity Health Care Group, Refunding Series 2009A, 5.250%, 12/01/38
12/19 at 100.00
AA
   
4,142,280
 
 
2,000
 
Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%, 3/01/34 – AMBAC Insured
3/14 at 100.00
A
   
2,007,220
 
 
2,000
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37
3/17 at 100.00
BBB+
   
1,968,940
 
 
5,700
 
Indiana Housing and Community Development Authority, Single Family Mortgage Revenue Bonds, Tender Option Bond Trust 1847, 7.822%, 1/01/25 (Alternative Minimum Tax) (IF)
1/17 at 100.00
Aaa
   
5,761,047
 
 
6,675
 
Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured
1/17 at 100.00
A+
   
6,822,317
 
 
21,735
 
Total Indiana
       
22,044,423
 
     
Iowa – 0.9% (0.6% of Total Investments)
           
 
7,000
 
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 5.625%, 6/01/46
6/15 at 100.00
BBB
   
5,022,220
 
     
Kansas – 1.5% (1.0% of Total Investments)
           
 
3,825
 
Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 1999, 4.000%, 10/01/18 – FGIC Insured
4/12 at 100.00
Aa2
   
3,831,005
 
 
2,485
 
Wyandotte County-Kansas City Unified Government, Kansas, Sales Tax Special Obligation Bonds, Redevelopment Project Area B, Series 2005, 5.000%, 12/01/20
12/15 at 100.00
N/R
   
2,571,056
 
 
3,730
 
Wyandotte County-Kansas City Unified Government, Kansas, Sales Tax Special Obligation Capital Appreciation Revenue Bonds Redevelopment Project Area B – Major Multi-Sport Athletic Complex Project, Subordinate Lien Series 2010B, 0.000%, 6/01/21
No Opt. Call
BBB
   
2,240,089
 
 
10,040
 
Total Kansas
       
8,642,150
 
     
Kentucky – 1.1% (0.7% of Total Investments)
           
     
Kentucky Economic Development Finance Authority, Hospital System Revenue Refunding and Improvement Bonds, Appalachian Regional Healthcare Inc., Series 1997:
           
 
1,850
 
5.850%, 10/01/17
4/12 at 100.00
BB
   
1,791,152
 
 
4,990
 
5.875%, 10/01/22
4/12 at 100.00
BB
   
4,611,558
 
 
6,840
 
Total Kentucky
       
6,402,710
 
 
Nuveen Investments
 
63

 
 

 

   
Nuveen Dividend Advantage Municipal Fund (continued)
NAD
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Louisiana – 8.1% (5.3% of Total Investments)
           
$
1,750
 
Louisiana Local Government Environmental Facilities and Community Development Authority, GNMA Collateralized Mortgage Revenue Refunding Bonds, Sharlo Apartments, Series 2002A, 6.500%, 6/20/37
6/12 at 105.00
Aaa
 
$
1,851,413
 
 
5,350
 
Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 – NPFG Insured
7/14 at 100.00
Baa1
   
5,478,454
 
 
9,000
 
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5/17 at 100.00
Baa1
   
8,637,030
 
 
5,000
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2002A, 5.000%, 6/01/32 – AMBAC Insured
6/12 at 100.00
Aa1
   
5,088,450
 
 
5,445
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A, 4.500%, 5/01/41 – FGIC Insured (UB)
5/16 at 100.00
Aa1
   
5,379,224
 
 
13,570
 
Louisiana Transportation Authority, Senior Lien Toll Road Revenue Bonds, Series 2005B, 0.000%, 12/01/28 – AMBAC Insured
12/11 at 100.00
AA–
   
5,156,464
 
     
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B:
           
 
7,340
 
5.500%, 5/15/30
11/11 at 101.00
A1
   
7,349,469
 
 
6,750
 
5.875%, 5/15/39
11/11 at 101.00
A–
   
6,754,455
 
 
54,205
 
Total Louisiana
       
45,694,959
 
     
Maine – 0.2% (0.1% of Total Investments)
           
 
1,050
 
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, MaineGeneral Medical Center, Series 2011, 6.750%, 7/01/41
7/21 at 100.00
Baa3
   
1,083,705
 
     
Massachusetts – 2.2% (1.4% of Total Investments)
           
 
1,440
 
Boston Industrial Development Financing Authority, Massachusetts, Subordinate Revenue Bonds, Crosstown Center Project, Series 2002, 8.000%, 9/01/35 (Alternative Minimum Tax)
9/12 at 102.00
N/R
   
498,398
 
 
4,365
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 – AGC Insured
10/15 at 100.00
AA+
   
4,599,313
 
 
620
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1 &2, 5.125%, 7/01/33
7/18 at 100.00
A–
   
623,081
 
 
2,300
 
Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk University Issue, Series 2009A, 5.750%, 7/01/39
7/19 at 100.00
BBB
   
2,307,567
 
 
2,900
 
Massachusetts Housing Finance Agency, Housing Bonds, Series 2009F, 5.700%, 6/01/40
12/18 at 100.00
AA–
   
2,978,822
 
 
820
 
Massachusetts Port Authority, Special Facilities Revenue Bonds, US Airways Group Inc., Series 1996A, 5.875%, 9/01/23 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
724,503
 
 
1,000
 
Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior Series 1997A, 0.000%, 1/01/24 – NPFG Insured
No Opt. Call
A+
   
576,750
 
 
13,445
 
Total Massachusetts
       
12,308,434
 
     
Michigan – 2.2% (1.4% of Total Investments)
           
 
6,000
 
Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 7/01/35 – NPFG Insured
7/15 at 100.00
A
   
5,946,180
 
 
3,215
 
Detroit, Michigan, Water Supply System Revenue Bonds, Series 2004A, 5.250%, 7/01/18 – NPFG Insured
7/16 at 100.00
A2
   
3,462,330
 
 
1,150
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39
9/18 at 100.00
A1
   
1,366,534
 
 
1,500
 
Michigan State Hospital Authority, Hospital Revenue Bonds, Oakwood Obligated Group, Series 2003, 5.500%, 11/01/11
No Opt. Call
A
   
1,500,000
 
 
11,865
 
Total Michigan
       
12,275,044
 
     
Minnesota – 1.3% (0.9% of Total Investments)
           
 
6,375
 
Minneapolis Health Care System, Minnesota, Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2008A, 6.625%, 11/15/28
11/18 at 100.00
A
   
7,084,920
 
 
430
 
Minnesota Housing Finance Agency, Single Family Mortgage Bonds, Series 1998H-1, 5.650%,7/01/31 (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
444,874
 
 
6,805
 
Total Minnesota
       
7,529,794
 
 
64
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Missouri – 0.9% (0.6% of Total Investments)
           
     
Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1:
           
$
7,000
 
0.000%, 4/15/27 – AMBAC Insured
No Opt. Call
AA–
 
$
3,125,780
 
 
5,000
 
0.000%, 4/15/29 – AMBAC Insured
No Opt. Call
AA–
   
1,951,550
 
 
12,000
 
Total Missouri
       
5,077,330
 
     
Montana – 0.2% (0.2% of Total Investments)
           
 
310
 
Montana Board of Housing, Single Family Mortgage Bonds, Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
12/11 at 100.00
AA+
   
315,555
 
 
1,000
 
Montana Higher Education Student Assistance Corporation, Student Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32 (Alternative Minimum Tax)
12/11 at 100.00
A2
   
977,330
 
 
1,310
 
Total Montana
       
1,292,885
 
     
Nevada – 6.7% (4.4% of Total Investments)
           
 
10,000
 
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
Aa3
   
10,736,200
 
 
9,675
 
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42
1/20 at 100.00
Aa3
   
9,955,769
 
     
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
N/R
   
1,218,400
 
 
4,000
 
5.625%, 1/01/32 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
920,000
 
 
3,000
 
5.375%, 1/01/40 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
690,000
 
 
3,750
 
Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, Catholic Healthcare West, Series 2007B, Trust 2633, 18.807%, 7/01/31 – BHAC Insured (IF)
7/17 at 100.00
AA+
   
4,386,150
 
 
1,500
 
Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, 8.000%, 6/15/30
6/19 at 100.00
A
   
1,719,735
 
 
3,000
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Series 2003B Refunding, 5.250%, 6/01/20 (Pre-refunded 12/01/12) – NPFG Insured
12/12 at 100.00
AA+ (4)
   
3,160,170
 
 
5,040
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Water Improvement Series 2003A Refunding, 5.000%, 6/01/32 – FGIC Insured
12/12 at 100.00
AA+
   
5,083,949
 
 
47,965
 
Total Nevada
       
37,870,373
 
     
New Jersey – 6.6% (4.3% of Total Investments)
           
 
6,850
 
New Jersey Educational Facilities Authority, Revenue Refunding Bonds, University of Medicine and Dentistry of New Jersey, Series 2009B, 5.750%, 12/01/15
No Opt. Call
Baa1
   
7,660,355
 
 
1,830
 
New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
Aaa
   
1,836,387
 
 
4,130
 
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured
No Opt. Call
Aa3
   
4,425,502
 
 
4,000
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 1999A, 5.750%, 6/15/18
No Opt. Call
A+
   
4,688,040
 
 
20,000
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C, 0.000%, 12/15/28 – AMBAC Insured
No Opt. Call
A+
   
7,723,200
 
     
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002:
           
 
5,955
 
5.750%, 6/01/32 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
6,146,334
 
 
3,165
 
6.125%, 6/01/42 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
3,273,591
 
 
1,365
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
1,502,305
 
 
47,295
 
Total New Jersey
       
37,255,714
 
     
New Mexico – 0.7% (0.4% of Total Investments)
           
 
3,730
 
University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004, 5.000%, 7/01/32 – AGM Insured
7/14 at 100.00
AA+
   
3,790,687
 
 
Nuveen Investments
 
65

 
 

 

   
Nuveen Dividend Advantage Municipal Fund (continued)
NAD
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
New York – 9.4% (6.2% of Total Investments)
           
$
1,905
 
Dormitory Authority of the State of New York, Insured Revenue Bonds, Franciscan Health Partnership Obligated Group – Frances Shervier Home and Hospital, Series 1997, 5.500%, 7/01/17 – RAAI Insured
1/12 at 100.00
A3
 
$
1,907,438
 
 
7,500
 
Dormitory Authority of the State of New York, Secured Hospital Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%, 8/15/21 – NPFG Insured
2/12 at 100.00
AA–
   
7,511,400
 
 
1,000
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47
No Opt. Call
A
   
1,017,200
 
 
6,000
 
New York City Industrial Development Agency, New York, American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
8/16 at 101.00
B–
   
5,571,660
 
 
4,755
 
New York City Industrial Development Agency, New York, Revenue Bonds, Yankee Stadium Project PILOT, Series 2009A, 7.000%, 3/01/49 – AGC Insured
3/19 at 100.00
AA+
   
5,421,651
 
 
5,000
 
New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Series 2004B, 5.000%, 6/15/36 – AGM Insured (UB)
12/14 at 100.00
AAA
   
5,250,950
 
 
8,800
 
New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A, 5.000%, 10/15/32 – AMBAC Insured (UB)
10/14 at 100.00
AAA
   
9,424,008
 
     
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010:
           
 
5,000
 
6.500%, 12/01/28
12/15 at 100.00
BBB–
   
5,279,300
 
 
1,670
 
6.000%, 12/01/36
12/20 at 100.00
BBB–
   
1,733,811
 
 
10,000
 
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.900%, 12/01/17 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
Baa1
   
10,009,900
 
 
51,630
 
Total New York
       
53,127,318
 
     
North Carolina – 1.1% (0.7% of Total Investments)
           
 
1,500
 
Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue Bonds, Series 2008A, 5.250%, 1/15/24 – AGC Insured
1/18 at 100.00
AA–
   
1,628,205
 
 
3,830
 
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
1/15 at 100.00
AA+ (4)
   
4,339,352
 
 
5,330
 
Total North Carolina
       
5,967,557
 
     
North Dakota – 1.4% (0.9% of Total Investments)
           
 
3,545
 
Bismarck, North Dakota, Health Care Revenue Bonds, St. Alexius Medical Center, Series 1998A, 5.250%, 7/01/15 – AGM Insured
1/12 at 100.00
AA+
   
3,555,954
 
 
3,910
 
Fargo, North Dakota, Health System Revenue Bonds, Sanford Health, Refunding Series 2011, 6.250%, 11/01/31
11/21 at 100.00
AA–
   
4,311,987
 
 
7,455
 
Total North Dakota
       
7,867,941
 
     
Ohio – 3.6% (2.4% of Total Investments)
           
 
2,300
 
Amherst Exempted Village School District, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2001, 5.125%, 12/01/21 (Pre-refunded 12/01/11) – FGIC Insured
12/11 at 100.00
Aa2 (4)
   
2,309,476
 
     
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
           
 
160
 
5.125%, 6/01/24
6/17 at 100.00
BB–
   
123,282
 
 
1,655
 
5.375%, 6/01/24
6/17 at 100.00
BB–
   
1,307,533
 
 
1,800
 
5.875%, 6/01/30
6/17 at 100.00
BB–
   
1,360,944
 
 
1,740
 
5.750%, 6/01/34
6/17 at 100.00
BB–
   
1,262,822
 
 
3,930
 
5.875%, 6/01/47
6/17 at 100.00
BB–
   
2,791,793
 
 
6,000
 
Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.250%, 11/01/29
11/20 at 100.00
BBB+
   
5,826,660
 
 
3,650
 
Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A, 5.000%, 5/01/30
5/14 at 100.00
AA
   
3,692,267
 
 
1,000
 
Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19
No Opt. Call
BBB–
   
1,103,590
 
 
740
 
Warren County, Ohio, Limited Tax General Obligations, Series 1997, 5.500%, 12/01/17
12/11 at 100.00
Aa1
   
743,078
 
 
22,975
 
Total Ohio
       
20,521,445
 
 
66
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Oklahoma – 0.2% (0.1% of Total Investments)
           
$
1,000
 
Fort Sill Apache Tribe of Oklahoma Economic Development Authority, Gaming Enterprise Revenue Bonds, Fort Sill Apache Casino, Series 2011A, 8.500%, 8/25/26
8/21 at 100.00
N/R
 
$
998,130
 
     
Pennsylvania – 3.0% (1.9% of Total Investments)
           
 
1,250
 
Erie Water Authority, Pennsylvania, Water Revenue Bonds, Series 2008, 5.000%, 12/01/43 – AGM Insured
12/18 at 100.00
AA+
   
1,291,713
 
 
1,500
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31 (Alternative Minimum Tax) (UB)
10/16 at 100.00
AA+
   
1,453,515
 
 
8,200
 
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Capital Appreciation Series 2009E, 0.000%, 12/01/38
12/27 at 100.00
A–
   
6,414,450
 
 
5,000
 
Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue Bonds, Series 2009C, 0.000%, 6/01/33 – AGM Insured
6/26 at 100.00
AA–
   
4,246,550
 
 
3,205
 
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B, 5.625 %, 8/01/16 (Pre-refunded 8/01/12) – FGIC Insured
8/12 at 100.00
AA– (4)
   
3,334,290
 
 
19,155
 
Total Pennsylvania
       
16,740,518
 
     
Puerto Rico – 5.8% (3.8% of Total Investments)
           
 
2,500
 
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44
7/18 at 100.00
Baa2
   
2,593,450
 
 
4,300
 
Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 4.500%, 12/01/23 (UB)
12/13 at 100.00
AA+
   
4,351,858
 
 
8,200
 
Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, 4.500%, 12/01/23 (Pre-refunded 12/01/13) (UB)
12/13 at 100.00
Aaa
   
8,864,856
 
 
12,845
 
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/42 – FGIC Insured
No Opt. Call
BBB+
   
1,553,217
 
 
10,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
8/19 at 100.00
A+
   
10,808,400
 
 
4,310
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.250%, 8/01/41
8/20 at 100.00
A+
   
4,374,564
 
 
42,155
 
Total Puerto Rico
       
32,546,345
 
     
Rhode Island – 4.0% (2.6% of Total Investments)
           
 
2,015
 
Central Falls, Rhode Island, General Obligation School Bonds, Series 1999, 6.250%, 5/15/20 – RAAI Insured
11/11 at 100.00
Caa1
   
1,497,931
 
 
5,815
 
Rhode Island Convention Center Authority, Lease Revenue Bonds, Series 2003A, 5.000%, 5/15/18 – AGM Insured
No Opt. Call
AA+
   
6,100,575
 
     
Rhode Island Housing & Mortgage Finance Corporation, Homeownership Opportunity 57-B Bond Program, Series 2008, Trust 1177:
           
 
1,500
 
9.569%, 4/01/23 (Alternative Minimum Tax) (IF)
4/17 at 100.00
AA+
   
1,531,530
 
 
1,000
 
9.669%, 4/01/23 (Alternative Minimum Tax) (IF)
4/17 at 100.00
AA+
   
1,016,280
 
 
12,500
 
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
6/12 at 100.00
BBB
   
12,505,500
 
 
22,830
 
Total Rhode Island
       
22,651,816
 
     
South Carolina – 0.6% (0.4% of Total Investments)
           
 
2,045
 
Florence County, South Carolina, Hospital Revenue Bonds, McLeod Regional Medical Center, Series 2004A, 5.250%, 11/01/27 – AGM Insured
11/14 at 100.00
AA+
   
2,104,060
 
 
1,500
 
Greenville, South Carolina, Hospital Facilities Revenue Bonds, Series 2001, 5.000%, 5/01/31 – AMBAC Insured
5/12 at 100.00
AA–
   
1,502,385
 
 
3,545
 
Total South Carolina
       
3,606,445
 
     
Tennessee – 0.4% (0.3% of Total Investments)
           
 
2,310
 
Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C, 5.250%, 9/01/36
9/16 at 100.00
BBB+
   
2,179,924
 
 
1,500
 
Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007, 5.500%, 11/01/46 (5), (6)
11/17 at 100.00
N/R
   
111,150
 
 
3,810
 
Total Tennessee
       
2,291,074
 
 
Nuveen Investments
 
67

 
 

 

   
Nuveen Dividend Advantage Municipal Fund (continued)
NAD
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Texas – 10.1% (6.6% of Total Investments)
           
$
2,560
 
Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax)
4/13 at 101.00
Ca
 
$
666,496
 
 
2,000
 
Capital Area Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, The Roman Catholic Diocese of Austin, Series 2005B, Remarketed, 6.125%, 4/01/45
4/20 at 100.00
Baa2
   
2,060,120
 
 
2,845
 
Cedar Hill Independent School District, Dallas County, Texas, General Obligation Bonds, Refunding School Building Series 2005, 5.000%, 8/15/34
8/15 at 100.00
AAA
   
3,061,618
 
 
2,820
 
Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured
1/15 at 100.00
BBB
   
2,438,623
 
 
820
 
Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) – AMBAC Insured
12/11 at 100.00
AA+ (4)
   
823,296
 
 
2,100
 
Denton Independent School District, Denton County, Texas, General Obligation Bonds, Refunding Series 2004, 5.000%, 8/15/33
8/14 at 100.00
AAA
   
2,164,008
 
 
2,305
 
Harris County-Houston Sports Authority, Texas, Senior Lien Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/20 – NPFG Insured
No Opt. Call
Baa1
   
1,263,832
 
     
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B:
           
 
3,130
 
0.000%, 9/01/30 – AMBAC Insured
No Opt. Call
A2
   
993,869
 
 
12,030
 
0.000%, 9/01/31 – AMBAC Insured
No Opt. Call
A2
   
3,559,677
 
 
30,095
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2004, 0.000%, 8/15/34
8/12 at 27.94
AAA
   
8,099,166
 
 
9,345
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/33 – FGIC Insured
8/15 at 37.33
AAA
   
2,887,605
 
 
33,160
 
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/38
8/14 at 26.50
AAA
   
7,656,644
 
 
1,500
 
Lower Colorado River Authority, Texas, Refunding Revenue Bonds, Series 2010, 5.000%, 5/15/12
No Opt. Call
A1
   
1,537,710
 
 
5,250
 
Midlothian Independent School District, Ellis County, Texas, General Obligation Bonds, Series 2005, 5.000%, 2/15/34
2/15 at 100.00
Aaa
   
5,433,698
 
 
3,755
 
Northside Independent School District, Bexar County, Texas, General Obligation Bonds, Series 2001A, 5.000%, 8/01/31
2/12 at 100.00
AAA
   
3,766,040
 
 
1,000
 
San Antonio, Texas, Water System Revenue Bonds, Series 2005, 4.750%, 5/15/37 – NPFG Insured
5/15 at 100.00
Aa1
   
1,019,380
 
 
3,295
 
Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds, Series 2007, Residuals 1761, 17.044%, 2/15/36 (IF)
2/17 at 100.00
AA–
   
3,394,509
 
 
7,000
 
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/35
8/15 at 34.92
AAA
   
2,043,790
 
     
Wylie Independent School District, Collin County, Texas, General Obligation Bonds, Series 2005:
           
 
3,000
 
0.000%, 8/15/20
8/15 at 78.46
AAA
   
2,120,670
 
 
3,000
 
0.000%, 8/15/22
8/15 at 70.77
AAA
   
1,917,660
 
 
131,010
 
Total Texas
       
56,908,411
 
     
Utah – 0.0% (0.0% of Total Investments)
           
     
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1999C-2, Class II:
           
 
50
 
5.700%, 7/01/19 (Alternative Minimum Tax)
1/12 at 100.00
Aaa
   
51,408
 
 
15
 
5.750%, 7/01/21 (Alternative Minimum Tax)
1/12 at 100.00
Aa2
   
15,028
 
 
245
 
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2000F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax)
1/12 at 100.00
AA–
   
245,365
 
 
310
 
Total Utah
       
311,801
 
 
68
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Virginia – 0.2% (0.2% of Total Investments)
           
$
1,500
 
Fairfax County Economic Development Authority, Virginia, Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42
10/17 at 100.00
N/R
 
$
1,410,420
 
     
Washington – 9.1% (6.0% of Total Investments)
           
 
4,000
 
Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 – SYNCORA GTY Insured
7/13 at 100.00
Aa1
   
4,295,000
 
 
1,825
 
Kennewick Public Facilities District, Washington, Sales Tax Revenue Bonds, Series 2003, 5.000%, 12/01/20 – AMBAC Insured
6/13 at 100.00
A1
   
1,903,712
 
     
Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999B:
           
 
1,755
 
6.000%, 9/01/15 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
1,759,388
 
 
2,590
 
6.000%, 9/01/16 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
2,595,905
 
     
Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18,
Series 1999C:
           
 
875
 
6.000%, 9/01/15 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
877,188
 
 
1,260
 
6.000%, 9/01/16 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
1,262,873
 
 
2,000
 
Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2009A, 6.000%, 1/01/33
7/19 at 100.00
A
   
2,082,620
 
 
5,935
 
Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
6/13 at 100.00
A3
   
6,036,073
 
 
3,350
 
Washington, General Obligation Compound Interest Bonds, Series 1999S-2, 0.000%, 1/01/18 – AGM Insured
No Opt. Call
AA+
   
2,906,695
 
     
Washington, General Obligation Compound Interest Bonds, Series 1999S-3:
           
 
17,650
 
0.000%, 1/01/20
No Opt. Call
AA+
   
13,912,436
 
 
18,470
 
0.000%, 1/01/21
No Opt. Call
AA+
   
13,887,593
 
 
59,710
 
Total Washington
       
51,519,483
 
     
Wisconsin – 6.9% (4.6% of Total Investments)
           
 
1,690
 
Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%, 11/01/29 (Pre-refunded 11/01/14) – AGM Insured
11/14 at 100.00
Aa2 (4)
   
1,907,941
 
 
560
 
Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%, 11/01/29 – AGM Insured
11/14 at 100.00
Aa2
   
576,882
 
 
7,410
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Ascension Health, Series 2006A, 5.000%, 11/15/36
11/16 at 100.00
AA+
   
7,540,118
 
 
4,330
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Childrens Hospital of Wisconsin Inc., Series 2008B, 5.500%, 8/15/29
2/20 at 100.00
AA–
   
4,606,470
 
 
4,380
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Kenosha Hospital and Medical Center Inc., Series 1999, 5.625%, 5/15/29
11/11 at 100.00
A
   
4,381,401
 
 
12,725
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Mercy Health System Corporation, Series 1999, 5.500%, 8/15/25 – AMBAC Insured
2/12 at 100.00
A2
   
12,730,471
 
 
2,200
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33
8/13 at 100.00
BBB+
   
1,963,763
 
 
5,000
 
Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, 6.000%, 5/01/36
5/19 at 100.00
AA–
   
5,602,899
 
 
38,295
 
Total Wisconsin
       
39,309,945
 
$
1,123,985
 
Total Municipal Bonds (cost $857,941,560)
       
860,650,352
 
 
Nuveen Investments
 
69

 
 

 

   
Nuveen Dividend Advantage Municipal Fund (continued)
NAD
 
Portfolio of Investments
October 31, 2011
                   
 
Shares
 
Description (1)
       
Value
 
     
Investment Companies – 0.1% (0.1% of Total Investments)
           
 
8,812
 
BlackRock MuniHoldings Fund Inc.
     
$
140,111
 
 
32,332
 
Invesco Quality Municipal Income Trust
       
419,669
 
     
Total Investment Companies (cost $528,388)
       
559,780
 
     
Total Investments (cost $858,469,948) – 152.3%
       
861,210,132
 
     
Floating Rate Obligations – (9.1%)
       
(51,605,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (25.5)% (7)
       
(144,300,000
     
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (21.3)% (7)
       
(120,400,000
     
Other Assets Less Liabilities – 3.6%
       
20,459,043
 
     
Net Assets Applicable to Common Shares – 100%
     
$
565,364,175
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(7)
 
MuniFund Term Preferred Shares and Variable Rate MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments are 16.8% and 14.0%, respectively.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
70
 
Nuveen Investments

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 2
NXZ
 
Portfolio of Investments
   
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Alabama – 0.5% (0.3% of Total Investments)
           
$
2,030
 
Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
11/16 at 100.00
AA+
 
$
2,064,733
 
     
Alaska – 3.1% (2.2% of Total Investments)
           
 
5,140
 
Alaska Municipal Bond Bank Authority, Revenue Bonds, Series 2003B, 5.250%, 12/01/22 – NPFG Insured
12/13 at 100.00
A+
   
5,489,469
 
 
3,860
 
Anchorage, Alaska, General Obligation Refunding Bonds, Series 2002B, 5.500%, 7/01/21 (Pre-refunded 7/01/12) – NPFG Insured
7/12 at 100.00
AA (4)
   
3,995,563
 
 
2,290
 
Anchorage, Alaska, Water Revenue Bonds, Refunding Series 2007, 5.000%, 5/01/37 – NPFG Insured
No Opt. Call
AA
   
2,362,685
 
 
2,200
 
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
6/14 at 100.00
B2
   
1,394,602
 
 
13,490
 
Total Alaska
       
13,242,319
 
     
Arizona – 2.6% (1.8% of Total Investments)
           
 
4,500
 
Phoenix Civic Improvement Corporation, Arizona, Junior Lien Airport Revenue Bonds, Series 2010A, 5.000%, 7/01/40
No Opt. Call
A+
   
4,609,395
 
 
3,120
 
Phoenix Civic Improvement Corporation, Arizona, Senior Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 – FGIC Insured (Alternative Minimum Tax)
7/12 at 100.00
AA–
   
3,127,176
 
 
3,000
 
Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Series 2002B, 5.000%, 1/01/26 (Pre-refunded 1/01/13)
1/13 at 100.00
Aa1 (4)
   
3,162,450
 
 
10,620
 
Total Arizona
       
10,899,021
 
     
Arkansas – 0.1% (0.1% of Total Investments)
           
 
405
 
Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series 2002C, 5.400%, 1/01/34 (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
405,235
 
     
California – 22.4% (15.9% of Total Investments)
           
 
9,000
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36
12/18 at 100.00
B1
   
6,511,950
 
 
6,000
 
California Educational Facilities Authority, Revenue Bonds, Stanford University, Series 2001Q, 5.250%, 12/01/32
12/11 at 101.00
AAA
   
6,079,320
 
 
4,080
 
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37 – BHAC Insured
4/16 at 100.00
AA+
   
4,141,975
 
 
4,250
 
California State, General Obligation Bonds, Various Purpose Series 2010, 5.250%, 11/01/40
11/20 at 100.00
A1
   
4,349,450
 
 
3,000
 
California State, General Obligation Bonds, Various Purpose Series 2011, 5.250%, 10/01/32
10/21 at 100.00
A1
   
3,128,250
 
 
4,000
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2005, 0.000%, 8/01/22 – NPFG Insured
No Opt. Call
Aa1
   
2,366,680
 
 
4,380
 
Glendale, California, Electric Revenue Bonds, Series 2003, 5.000%, 2/01/32 – NPFG Insured
2/13 at 100.00
AA–
   
4,499,443
 
 
20,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – FGIC Insured
6/15 at 100.00
A2
   
18,735,800
 
 
5,000
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
5,487,000
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
2,050
 
5.000%, 6/01/33
6/17 at 100.00
BB+
   
1,448,489
 
 
1,000
 
5.125%, 6/01/47
6/17 at 100.00
BB+
   
651,200
 
 
6,000
 
Los Angeles Regional Airports Improvement Corporation, California, Sublease Revenue Bonds, Los Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax)
12/12 at 102.00
B–
   
5,530,140
 
 
3,285
 
Murrieta Valley Unified School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2006A, 5.125%, 9/01/26 – AGM Insured
9/16 at 100.00
AA+
   
3,409,929
 
 
10,885
 
Norwalk La Mirada Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2005, 0.000%, 8/01/25 – FGIC Insured
No Opt. Call
Aa3
   
4,882,249
 
 
Nuveen Investments
 
71

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 2 (continued)
NXZ
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
$
5,000
 
Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/38 – AGC Insured
8/29 at 100.00
AA
 
$
3,604,350
 
 
2,000
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/47
7/17 at 100.00
Baa2
   
1,730,720
 
 
3,200
 
Redlands Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2003, 0.000%, 7/01/27 – AGM Insured
No Opt. Call
AA–
   
1,315,552
 
 
3,000
 
Riverside Unified School District, Riverside County, California, General Obligation Bonds, Election 2001 Series 2006B, 5.000%, 8/01/30 – AGC Insured
8/15 at 101.00
Aa2
   
3,052,380
 
 
2,755
 
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2007, 0.000%, 7/01/25 – AGM Insured
No Opt. Call
AA
   
1,310,884
 
 
3,000
 
San Joaquin Delta Community College District, California, General Obligation Bonds, Election 2004 Series 2008B, 0.000%, 8/01/29 – AGM Insured
8/18 at 53.32
Aa2
   
1,021,080
 
 
12,500
 
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/32 – NPFG Insured
No Opt. Call
Baa1
   
2,245,375
 
 
5,000
 
San Jose, California, Airport Revenue Bonds, Series 2007A, 6.000%, 3/01/47 – AMBAC Insured (Alternative Minimum Tax)
3/17 at 100.00
A
   
5,159,150
 
 
1,930
 
San Mateo County Transit District, California, Sales Tax Revenue Bonds, Series 2005A, 5.000%, 6/01/29 – NPFG Insured
No Opt. Call
AA
   
2,035,899
 
 
3,000
 
University of California, General Revenue Bonds, Series 2005F, 4.750%, 5/15/25 – AGM Insured
5/13 at 101.00
AA+
   
3,148,050
 
 
25
 
Yuba County Water Agency, California, Yuba River Development Revenue Bonds, Pacific Gas and Electric Company, Series 1966A, 4.000%, 3/01/16
3/12 at 100.00
Baa1
   
24,636
 
 
124,340
 
Total California
       
95,869,951
 
     
Colorado – 6.0% (4.2% of Total Investments)
           
 
2,000
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Valley View Hospital Association, Series 2007, 5.250%, 5/15/42
5/17 at 100.00
BBB+
   
1,810,400
 
 
3,250
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Yampa Valley Medical Center, Series 2007, 5.125%, 9/15/29
9/17 at 100.00
BBB
   
3,023,053
 
     
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006A:
           
 
5,365
 
5.000%, 11/15/23 – FGIC Insured (UB)
11/16 at 100.00
A+
   
5,799,350
 
 
3,300
 
5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
   
3,541,626
 
 
4,335
 
5.000%, 11/15/25 – FGIC Insured (UB)
11/16 at 100.00
A+
   
4,623,668
 
 
10,000
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Capital Appreciation Series 2010A, 0.000%, 9/01/41
No Opt. Call
Baa2
   
1,210,300
 
 
8,000
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/28 – NPFG Insured
9/20 at 63.99
Baa1
   
2,593,440
 
 
755
 
Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/22 (Pre-refunded 12/15/14) – AGM Insured (UB)
12/14 at 100.00
Aa2 (4)
   
854,607
 
 
1,000
 
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
6/14 at 101.00
N/R
   
1,009,510
 
 
960
 
Regional Transportation District, Colorado, Certificates of Participation, Series 2010A, 5.375%, 6/01/31
6/20 at 100.00
Aa3
   
1,019,578
 
 
38,965
 
Total Colorado
       
25,485,532
 
     
District of Columbia – 2.3% (1.6% of Total Investments)
           
 
825
 
District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
11/11 at 101.00
A1
   
825,404
 
 
4,250
 
District of Columbia, Revenue Bonds, National Public Radio, Series 2010A, 5.000%, 4/01/43
4/15 at 100.00
AA–
   
4,307,715
 
 
5,000
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Senior Lien Refunding Series 2007A, 4.500%, 10/01/30 – AMBAC Insured
10/16 at 100.00
A1
   
4,740,250
 
 
10,075
 
Total District of Columbia
       
9,873,369
 
     
Florida – 7.7% (5.4% of Total Investments)
           
 
15,000
 
Jacksonville, Florida, Transportation Revenue Bonds, Series 2001, 5.250%, 10/01/29 – NPFG Insured
4/12 at 100.00
Aa2
   
15,013,200
 
 
72
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Florida (continued)
           
$
3,000
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002, 5.375%, 10/01/32 – FGIC Insured (Alternative Minimum Tax)
10/12 at 100.00
A2
 
$
3,003,300
 
 
5,000
 
Orlando Utilities Commission, Florida, Subordinate Lien Water and Electric Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/21
No Opt. Call
Aa1
   
5,268,600
 
 
1,500
 
Orlando Utilities Commission, Florida, Water and Electric Revenue Refunding Bonds, Series 2003B, 5.000%, 10/01/22
No Opt. Call
Aa1
   
1,578,840
 
     
Port Saint Lucie, Florida, Special Assessment Revenue Bonds, Southwest Annexation District 1B, Series 2007:
           
 
2,000
 
5.000%, 7/01/33 – NPFG Insured
7/17 at 100.00
Baa1
   
1,893,520
 
 
1,500
 
5.000%, 7/01/40 – NPFG Insured
7/17 at 100.00
Baa1
   
1,376,160
 
 
5,000
 
Seminole Tribe of Florida, Special Obligation Bonds, Series 2007A, 5.250%, 10/01/27
10/17 at 100.00
BBB–
   
4,594,150
 
 
33,000
 
Total Florida
       
32,727,770
 
     
Georgia – 2.7% (1.9% of Total Investments)
           
 
2,000
 
DeKalb County Hospital Authority, Georgia, Anticipation Certificates Revenue Bonds, DeKalb Medical Center, Inc. Project, Series 2010, 6.000%, 9/01/30
9/20 at 100.00
N/R
   
2,065,520
 
 
2,000
 
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional Medical Center Project, Series 2010, 8.125%, 12/01/45
12/20 at 100.00
N/R
   
2,048,440
 
 
5,000
 
Gainesville and Hall County Hospital Authority, Georgia, Revenue Anticipation Certificates, Northeast Georgia Health Services Inc., Series 2010B, 5.125%, 2/15/40
No Opt. Call
A+
   
4,825,950
 
 
2,500
 
Medical Center Hospital Authority, Georgia, Revenue Anticipation Certificates, Columbus Regional Healthcare System, Inc. Project, Series 2008, 6.500%, 8/01/38 – AGC Insured
8/18 at 100.00
AA+
   
2,741,600
 
 
11,500
 
Total Georgia
       
11,681,510
 
     
Illinois – 16.5% (11.7% of Total Investments)
           
 
3,485
 
Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing Revenue Bonds, Stone Terrace Apartments, Series 2001A, 5.750%, 12/20/42 (Alternative Minimum Tax)
12/11 at 100.00
AA+
   
3,488,729
 
 
475
 
Chicago, Illinois, FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative Minimum Tax)
4/12 at 104.50
Aaa
   
490,974
 
 
5,000
 
Chicago, Illinois, General Obligation Bonds, City Colleges, Series 1999, 0.000%, 1/01/34 – FGIC Insured
No Opt. Call
Aa3
   
1,309,900
 
 
3,985
 
Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.250%, 1/01/33 – NPFG Insured
1/12 at 100.00
Aa3
   
3,987,829
 
 
7,100
 
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
   
7,339,838
 
 
3,180
 
Illinois Development Finance Authority, Revenue Bonds, Chicago Charter School Foundation, Series 2002A, 6.250%, 12/01/32 (Pre-refunded 12/01/12)
12/12 at 100.00
N/R (4)
   
3,375,793
 
 
910
 
Illinois Development Finance Authority, Revenue Bonds, Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32 – AMBAC Insured
3/12 at 100.00
BBB+
   
909,927
 
 
5,000
 
Illinois Finance Authority, Revenue Bonds, Elmhurst Memorial Healthcare, Series 2008A, 5.625%, 1/01/37
1/18 at 100.00
Baa1
   
4,992,900
 
 
9,815
 
Illinois Finance Authority, Revenue Bonds, Palos Community Hospital, Series 2007A, 5.000%, 5/15/32 – NPFG Insured
5/17 at 100.00
Baa1
   
9,278,708
 
 
1,000
 
Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series 2005, 5.250%, 8/15/20 – AGC Insured
8/15 at 100.00
AA+
   
1,039,130
 
 
2,500
 
Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38
8/19 at 100.00
BBB
   
2,615,250
 
 
2,500
 
Illinois Finance Authority, Revenue Bonds, The University of Chicago Medical Center, Series 2011C, 5.500%, 8/15/41
2/21 at 100.00
AA–
   
2,634,500
 
 
6,965
 
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., Refunding Series 2007A, 5.250%, 5/01/34
5/17 at 100.00
Baa3
   
6,364,687
 
 
5,025
 
Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, Series 2002, 5.625%, 1/01/28
1/13 at 100.00
Baa1
   
5,026,809
 
 
2,215
 
Illinois Housing Development Authority, Homeowner Mortgage Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative Minimum Tax)
2/16 at 100.00
AA
   
2,238,014
 
 
1,535
 
Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/15/16
No Opt. Call
AAA
   
1,539,712
 
 
Nuveen Investments
 
73

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 2 (continued)
NXZ
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Illinois (continued)
           
$
2,500
 
Kane & DeKalb Counties, Illinois, Community United School District 301, General Obligation Bonds, Series 2006, 0.000%, 12/01/23 – NPFG Insured
No Opt. Call
Aa3
 
$
1,388,075
 
     
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A:
           
 
7,500
 
0.000%, 12/15/30 – NPFG Insured
No Opt. Call
AAA
   
2,515,650
 
 
10,000
 
0.000%, 12/15/36 – NPFG Insured
No Opt. Call
AAA
   
2,239,900
 
 
2,500
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 2002B, 0.000%, 6/15/21 – NPFG Insured
6/17 at 101.00
AAA
   
2,615,150
 
 
3,625
 
Montgomery, Illinois, Lakewood Creek Project Special Assessment Bonds, Series 2007, 4.700%, 3/01/30 – RAAI Insured
3/16 at 100.00
N/R
   
3,061,458
 
 
3,360
 
Northfield Township High School District 225, Cook County, Illinois, Glenbrook, General Obligation School Bonds, Series 2007B, 0.000%, 12/01/24
12/16 at 69.01
AAA
   
1,866,480
 
 
90,175
 
Total Illinois
       
70,319,413
 
     
Indiana – 4.6% (3.2% of Total Investments)
           
 
1,305
 
Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%, 3/01/34 – AMBAC Insured
3/14 at 100.00
A
   
1,309,711
 
 
2,295
 
Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31
3/12 at 100.00
BBB
   
1,994,699
 
 
1,570
 
Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 – AGM Insured
No Opt. Call
AA+
   
1,726,984
 
 
2,305
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37
3/17 at 100.00
BBB+
   
2,269,203
 
 
5,180
 
Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured
1/17 at 100.00
A+
   
5,294,323
 
 
4,000
 
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 2003A, 5.000%, 6/01/23 (Pre-refunded 6/01/13) – AGM Insured
6/13 at 100.00
AA+ (4)
   
4,291,320
 
 
1,500
 
Marion High School Building Corporation, Grant County, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/25 – NPFG Insured
7/13 at 100.00
AA+
   
1,580,355
 
 
6,100
 
St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Madison Center Inc., Series 1999, 5.800%, 2/15/24 (5)
2/12 at 100.00
N/R
   
1,046,028
 
 
24,255
 
Total Indiana
       
19,512,623
 
     
Iowa – 1.5% (1.1% of Total Investments)
           
 
1,000
 
Iowa Higher Education Loan Authority, Private College Facility Revenue Bonds, Wartburg College, Series 2002, 5.500%, 10/01/28 (Pre-refunded 10/01/12) – ACA Insured
10/12 at 100.00
N/R (4)
   
1,047,420
 
 
6,340
 
Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34
6/17 at 100.00
BBB
   
5,333,398
 
 
7,340
 
Total Iowa
       
6,380,818
 
     
Kentucky – 0.2% (0.2% of Total Investments)
           
 
1,000
 
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/38 – AGC Insured
6/18 at 100.00
AA+
   
1,058,620
 
     
Louisiana – 5.3% (3.8% of Total Investments)
           
 
3,960
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A, 4.500%, 5/01/41 – FGIC Insured (UB)
5/16 at 100.00
Aa1
   
3,912,163
 
 
18,825
 
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
11/11 at 101.00
A–
   
18,837,425
 
 
22,785
 
Total Louisiana
       
22,749,588
 
     
Maryland – 0.2% (0.1% of Total Investments)
           
 
1,000
 
Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel College, Series 2006, 4.500%, 11/01/36
11/16 at 100.00
BBB+
   
863,190
 
     
Massachusetts – 0.4% (0.3% of Total Investments)
           
 
1,500
 
Massachusetts Health and Education Facilities Authority, Revenue Bonds, Partners HealthCare System, Series 2010J, 5.000%, 7/01/39
7/19 at 100.00
AA
   
1,532,955
 
 
74
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Michigan – 6.1% (4.4% of Total Investments)
           
$
3,135
 
Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 1998B Remarketed, 5.250%, 7/01/22 – NPFG Insured
7/17 at 100.00
A+
 
$
3,273,567
 
 
5,865
 
Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%, 7/01/32 – AGM Insured
7/13 at 100.00
AA+
   
5,885,528
 
 
2,910
 
Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B, 5.000%, 7/01/36 – MBIA-NPFG Insured
7/16 at 100.00
A
   
2,887,389
 
 
6,880
 
Kalamazoo Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Bronson Methodist Hospital, Refunding Series 2010, 5.500%, 5/15/36
5/20 at 100.00
A2
   
6,938,067
 
 
3,300
 
Michigan Municipal Bond Authority, General Obligation Bonds, Detroit City School District, Series 2005, 5.000%, 6/01/19 – AGM Insured
6/15 at 100.00
AA+
   
3,406,029
 
 
4,000
 
Michigan Municipal Bond Authority, Public School Academy Revenue Bonds, Detroit Academy of Arts and Sciences Charter School, Series 2001A, 8.000%, 10/01/31
4/12 at 100.00
B1
   
3,842,320
 
 
26,090
 
Total Michigan
       
26,232,900
 
     
Minnesota – 1.3% (0.9% of Total Investments)
           
 
5,000
 
Minneapolis, Minnesota, Health Care System Revenue Bonds,S Fairview Health Services, Series 2008B, 6.500%, 11/15/38 – AGC Insured
11/18 at 100.00
AA+
   
5,615,100
 
     
Montana – 0.3% (0.3% of Total Investments)
           
 
1,480
 
Montana Board of Housing, Single Family Program Bonds, Series 2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax)
12/11 at 100.00
AA+
   
1,480,844
 
     
Nevada – 4.6% (3.3% of Total Investments)
           
 
12,275
 
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
2,823,250
 
 
3,500
 
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (5)
1/12 at 100.00
N/R
   
5,215
 
 
2,000
 
Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, Catholic Healthcare West, Series 2007B, Trust 2633, 18.807%, 7/01/31 – BHAC Insured (IF)
7/17 at 100.00
AA+
   
2,339,280
 
 
1,455
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Series 2005A, 5.000%, 6/01/24 – FGIC Insured
No Opt. Call
AA+
   
1,557,330
 
 
5,040
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Water Improvement Series 2003A Refunding, 5.000%, 6/01/32 – FGIC Insured
12/12 at 100.00
AA+
   
5,083,949
 
 
5,625
 
Las Vegas Valley Water District, Nevada, General Obligation Bonds, Water Improvement Series 2003A Refunding, 5.250%, 6/01/21 (Pre-refunded 12/01/12) – FGIC Insured
12/12 at 100.00
AA+ (4)
   
5,925,319
 
 
1,750
 
Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare West, Series 2007A, Trust 2634, 18.534%, 7/01/31 – BHAC Insured (IF)
7/17 at 100.00
AA+
   
1,986,600
 
 
31,645
 
Total Nevada
       
19,720,943
 
     
New Hampshire – 2.1% (1.5% of Total Investments)
           
 
8,000
 
New Hampshire Business Finance Authority, Pollution Control Remarketed Revenue Refunding Bonds, Connecticut Light and Power Company, Series 1992A, 5.850%, 12/01/22
4/12 at 100.50
BBB+
   
8,050,480
 
 
995
 
New Hampshire Housing Finance Authority, Single Family Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative Minimum Tax)
11/11 at 100.00
Aa3
   
995,537
 
 
8,995
 
Total New Hampshire
       
9,046,017
 
     
New Jersey – 2.6% (1.9% of Total Investments)
           
 
3,995
 
New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
11/11 at 100.00
B
   
3,994,481
 
 
600
 
New Jersey Health Care Facilities Financing Authority, New Jersey, Revenue Bonds, Saint Peters University Hospital, Refunding Series 2011, 6.000%, 7/01/26
7/21 at 100.00
BBB–
   
613,404
 
 
265
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
273,514
 
 
Nuveen Investments
 
75

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 2 (continued)
NXZ
 
Portfolio of Investments
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
New Jersey (continued)
           
     
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
 
$
2,377,606
 
 
425
 
6.750%, 6/01/39 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
467,751
 
 
3,085
 
6.250%, 6/01/43 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
3,370,980
 
 
10,570
 
Total New Jersey
       
11,097,736
 
     
New York – 6.2% (4.4% of Total Investments)
           
 
12,020
 
Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue Bonds, Barclays Center Project, Series 2009, 0.000%, 7/15/46
No Opt. Call
BBB–
   
1,375,328
 
 
4,250
 
Dormitory Authority of the State of New York, Insured Revenue Bonds, New York University, Series 2001-2, 5.000%, 7/01/31 – AMBAC Insured
1/12 at 100.00
AA+
   
4,262,240
 
 
1,600
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47
No Opt. Call
A
   
1,627,520
 
 
12,800
 
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2006B, 4.500%, 11/15/32 – AGM Insured (UB)
11/16 at 100.00
AA–
   
12,905,984
 
 
5,000
 
New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, JFK Airport – American Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax)
8/12 at 101.00
B–
   
4,645,800
 
 
1,670
 
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/36
12/20 at 100.00
BBB–
   
1,733,811
 
 
37,340
 
Total New York
       
26,550,683
 
     
North Carolina – 0.7% (0.5% of Total Investments)
           
 
2,950
 
North Carolina Capital Facilities Financing Agency, Revenue Bonds, Johnson and Wales University, Series 2003A, 5.000%, 4/01/33 – SYNCORA GTY Insured
4/13 at 100.00
N/R
   
2,944,100
 
     
Ohio – 1.9% (1.3% of Total Investments)
           
     
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
           
 
10,000
 
5.750%, 6/01/34
6/17 at 100.00
BB–
   
7,257,600
 
 
1,000
 
5.875%, 6/01/47
6/17 at 100.00
BB–
   
710,380
 
 
11,000
 
Total Ohio
       
7,967,980
 
     
Oklahoma – 1.1% (0.8% of Total Investments)
           
 
1,000
 
Fort Sill Apache Tribe of Oklahoma Economic Development Authority, Gaming Enterprise Revenue Bonds, Fort Sill Apache Casino, Series 2011A, 8.500%, 8/25/26
8/21 at 100.00
N/R
   
998,130
 
 
3,500
 
Grand River Dam Authority, Oklahoma, Revenue Bonds, Series 2010A, 5.250%, 6/01/40
6/20 at 100.00
A
   
3,748,080
 
 
4,500
 
Total Oklahoma
       
4,746,210
 
     
Puerto Rico – 3.4% (2.4% of Total Investments)
           
 
2,500
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
8/19 at 100.00
A+
   
2,702,100
 
 
9,310
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.250%, 8/01/41
8/20 at 100.00
A+
   
9,449,464
 
     
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A:
           
 
30,000
 
0.000%, 8/01/54 – AMBAC Insured
No Opt. Call
Aa2
   
1,942,200
 
 
6,150
 
0.000%, 8/01/56
No Opt. Call
Aa2
   
350,550
 
 
47,960
 
Total Puerto Rico
       
14,444,314
 
     
South Carolina – 2.4% (1.7% of Total Investments)
           
 
2,500
 
Florence County, South Carolina, Hospital Revenue Bonds, McLeod Regional Medical Center, Series 2004A, 5.250%, 11/01/23 – AGM Insured
11/14 at 100.00
AA+
   
2,606,550
 
 
21,570
 
Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 – AMBAC Insured
No Opt. Call
A–
   
7,859,892
 
 
24,070
 
Total South Carolina
       
10,466,442
 
 
76
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Texas – 26.4% (18.7% of Total Investments)
           
$
4,000
 
Board of Regents, University of Texas System, Financing System Revenue Refunding Bonds, Series 2006B, 5.000%, 8/15/31
No Opt. Call
AAA
 
$
4,352,520
 
 
1,250
 
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.000%, 1/01/41
1/21 at 100.00
BBB–
   
1,261,888
 
 
10,000
 
Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured
1/15 at 100.00
BBB
   
8,647,600
 
     
Dallas-Fort Worth International Airport Public Facility Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001:
           
 
15,000
 
5.250%, 1/15/26 – AGM Insured
1/12 at 100.00
AA+
   
15,010,200
 
 
1,750
 
5.200%, 1/15/31 – AGM Insured
1/12 at 100.00
AA+
   
1,750,385
 
 
6,000
 
Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health System, Series 2004A, 7.125%, 9/01/34
9/14 at 100.00
N/R
   
6,001,920
 
 
3,500
 
Fort Bend County, Texas, General Obligation Bonds, Toll Road Series 2006, 5.000%, 3/01/32 – NPFG Insured
9/13 at 100.00
AA+
   
3,568,215
 
 
10,000
 
Gulf Coast Industrial Development Authority, Texas, Solid Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax)
4/12 at 100.00
Ba2
   
10,047,700
 
 
31,170
 
Harris County-Houston Sports Authority, Texas, Junior Lien Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 – NPFG Insured
11/11 at 100.00
Baa1
   
26,074,952
 
 
1,845
 
Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H, 0.000%, 11/15/37 – NPFG Insured
11/31 at 69.08
Baa1
   
273,983
 
 
4,465
 
Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004-A3, 0.000%, 11/15/35 – NPFG Insured
11/24 at 52.47
Baa1
   
767,667
 
 
40,000
 
Harris County-Houston Sports Authority, Texas, Senior Lien Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 – NPFG Insured
11/30 at 54.04
Baa1
   
5,737,600
 
     
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B:
           
 
5,000
 
0.000%, 9/01/30 – AMBAC Insured
No Opt. Call
A2
   
1,587,650
 
 
5,540
 
0.000%, 9/01/31 – AMBAC Insured
No Opt. Call
A2
   
1,639,286
 
 
4,285
 
Little Elm Independent School District, Denton County, Texas, General Obligation Bonds, Refunding Series 2006, 5.000%, 8/15/37
8/16 at 100.00
AAA
   
4,503,192
 
 
10,000
 
North Texas Tollway Authority, First Tier System Revenue Refunding Bonds, Series 2008D, 0.000%, 1/01/28 – AGC Insured
No Opt. Call
AA–
   
4,130,300
 
 
3,295
 
Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds, Series 2007, Residuals 1760-3, 17.044%, 2/15/36 (IF)
2/17 at 100.00
AA–
   
3,394,509
 
 
2,890
 
Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White HealthCare Project, Series 2010, 5.500%, 8/15/45
8/20 at 100.00
A1
   
2,957,453
 
 
1,000
 
Texas Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier Series 2002A, 0.000%, 8/15/28 – AMBAC Insured
8/12 at 39.43
BBB+
   
360,810
 
 
10,500
 
Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2001, 5.250%, 8/01/35
2/12 at 100.00
Aaa
   
10,532,760
 
 
171,490
 
Total Texas
       
112,600,590
 
     
Washington – 2.4% (1.7% of Total Investments)
           
 
2,500
 
King County School District 001 Seattle, Washington, General Obligation Bonds, Series 2007A, 5.000%, 6/01/12
No Opt. Call
Aaa
   
2,569,525
 
 
3,780
 
Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35
1/21 at 100.00
A
   
3,833,714
 
 
2,940
 
Washington State Health Care Facilities Authority, Revenue Bonds, Kadlec Regional Medical Center, Series 2010, 5.500%, 12/01/39
12/20 at 100.00
Baa2
   
2,785,238
 
 
845
 
Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
6/13 at 100.00
A3
   
859,390
 
 
10,065
 
Total Washington
       
10,047,867
 
 
Nuveen Investments
 
77

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 2 (continued)
NXZ
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
West Virginia – 2.3% (1.7% of Total Investments)
           
$
2,950
 
West Virginia Economic Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Appalachian Power Company Project, Series 2010, 5.375%, 12/01/38
12/20 at 100.00
BBB
 
$
3,022,275
 
 
6,720
 
West Virginia University, University Revenue Improvement Bonds, West Virginia University Projects, Series 2004C, 5.000%, 10/01/34 – FGIC Insured
10/14 at 100.00
Aa3
   
6,957,552
 
 
9,670
 
Total West Virginia
       
9,979,827
 
     
Wisconsin – 1.0% (0.7% of Total Investments)
           
 
1,000
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26 (Pre-refunded 5/01/12)
5/12 at 100.00
N/R (4)
   
1,035,109
 
 
3,640
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2006B, 5.125%, 8/15/30
8/16 at 100.00
BBB+
   
3,296,965
 
 
4,640
 
Total Wisconsin
       
4,332,074
 
$
799,945
 
Total Investments (cost $601,166,992) – 140.9%
       
601,940,274
 
     
Floating Rate Obligations – (4.3)%
       
(18,260,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (45.9)% (6)
       
(196,000,000
     
Other Assets Less Liabilities – 9.3%
       
39,404,596
 
     
Net Assets Applicable to Common Shares – 100%
     
$
427,084,870
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments are 32.6%.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
78
 
Nuveen Investments

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 3
NZF
 
Portfolio of Investments
   
October 31, 2011
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Municipal Bonds – 138.4% (96.6% of Total Investments)
           
     
Alabama – 0.6% (0.4% of Total Investments)
           
$
3,500
 
Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36 (UB)
11/16 at 100.00
AA+
 
$
3,566,185
 
     
Alaska – 0.1% (0.1% of Total Investments)
           
 
1,000
 
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
6/14 at 100.00
B2
   
633,910
 
     
Arizona – 1.0% (0.7% of Total Investments)
           
 
3,390
 
Arizona State Transportation Board, Highway Revenue Bonds, Series 2006, Trust 3151, 13.416%, 7/01/16 (IF)
No Opt. Call
AAA
   
4,026,710
 
 
2,200
 
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37
No Opt. Call
A
   
1,995,334
 
 
5,590
 
Total Arizona
       
6,022,044
 
     
California – 15.6% (10.9% of Total Investments)
           
     
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist Health System/West, Series 2003A:
           
 
2,220
 
5.000%, 3/01/28
3/13 at 100.00
A
   
2,220,000
 
 
140
 
5.000%, 3/01/33
3/13 at 100.00
A
   
137,201
 
 
1,670
 
California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital and Clinics, Series 2008A-2, RMKT, 5.250%, 11/15/40
No Opt. Call
Aa3
   
1,709,880
 
 
3,400
 
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2009B, 5.500%, 10/01/39
10/19 at 100.00
AA
   
3,572,210
 
 
2,900
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
11/16 at 100.00
AA–
   
2,857,196
 
 
5,355
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.584%, 5/15/14 (IF)
No Opt. Call
AA–
   
6,389,640
 
 
20
 
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
AA
   
20,020
 
     
Ceres Unified School District, Stanislaus County, California, General Obligation Bonds, Series 2002B:
           
 
2,180
 
0.000%, 8/01/31 – FGIC Insured
8/12 at 32.87
A+
   
578,092
 
 
3,300
 
0.000%, 8/01/32 – FGIC Insured
8/12 at 30.97
A+
   
818,202
 
 
11,865
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47
6/17 at 100.00
BB+
   
7,726,488
 
 
7,150
 
Grossmont Healthcare District, California, General Obligation Bonds, Series 2011B, 6.125%, 7/15/40
7/21 at 100.00
Aa2
   
8,079,000
 
 
10,000
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A, 5.000%, 7/01/41
1/21 at 100.00
AA
   
10,529,000
 
     
Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2001:
           
 
10,510
 
5.750%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
   
10,552,776
 
 
5,000
 
5.375%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
   
5,006,350
 
 
1,500
 
5.250%, 1/01/23 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
   
1,500,840
 
 
10,000
 
5.500%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A–
   
9,650,900
 
 
12,000
 
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/40
8/30 at 100.00
A+
   
7,770,360
 
 
3,850
 
Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of Participation, Series 2011, 0.000%, 10/01/28 – AGM Insured
10/21 at 100.00
AA–
   
3,036,187
 
 
3,550
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
BB
   
3,622,562
 
 
3,000
 
San Diego Community College District, California, General Obligation Bonds, Tender Option Bond Trust 1005, 13.606%, 8/01/41 (IF)
8/21 at 100.00
AA+
   
3,589,140
 
 
Nuveen Investments
 
79

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 3 (continued)
NZF
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
$
10,000
 
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 – NPFG Insured
No Opt. Call
Baa1
 
$
1,406,100
 
 
3,000
 
San Mateo County Community College District, California, General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 – NPFG Insured
No Opt. Call
Aaa
   
1,096,950
 
 
112,610
 
Total California
       
91,869,094
 
     
Colorado – 5.5% (3.8% of Total Investments)
           
 
2,250
 
Canterberry Crossing Metropolitan District II, Parker, Colorado, Limited Tax General Obligation Bonds, Series 2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12)
12/12 at 100.00
N/R (4)
   
2,395,215
 
 
1,535
 
Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Belle Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)
3/13 at 100.00
N/R (4)
   
1,668,345
 
 
3,090
 
Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori Peaks Academy, Series 2006A, 5.400%, 5/01/26
5/16 at 102.00
N/R
   
2,631,629
 
 
3,380
 
Colorado Housing Finance Authority, Multifamily Project Bonds, Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative Minimum Tax)
4/12 at 100.00
AAA
   
3,381,251
 
 
5,000
 
Compark Business Campus Metropolitan District, Colorado, General Obligation Limited Tax Bonds, Series 2007A, 5.600%, 12/01/34 – RAAI Insured
12/17 at 100.00
N/R
   
4,120,150
 
     
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006:
           
 
5,365
 
5.000%, 11/15/23 – FGIC Insured
11/16 at 100.00
A+
   
5,799,350
 
 
3,300
 
5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
   
3,541,626
 
 
4,335
 
5.000%, 11/15/25 – FGIC Insured
11/16 at 100.00
A+
   
4,623,668
 
   
 
Maher Ranch Metropolitan District 4, Colorado, General Obligation Limited Tax Bonds, Series 2007:
           
 
950
 
5.125%, 12/01/27 – RAAI Insured
12/17 at 100.00
N/R
   
841,615
 
 
2,000
 
5.250%, 12/01/36 – RAAI Insured
12/17 at 100.00
N/R
   
1,664,660
 
 
1,000
 
Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
6/14 at 101.00
N/R
   
1,009,510
 
 
630
 
Regional Transportation District, Colorado, Certificates of Participation, Series 2010A, 5.375%, 6/01/31
6/20 at 100.00
Aa3
   
669,098
 
 
32,835
 
Total Colorado
       
32,346,117
 
     
Connecticut – 0.3% (0.2% of Total Investments)
           
 
1,500
 
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hartford Healthcare, Series 2011A, 5.000%, 7/01/41
7/21 at 100.00
A
   
1,491,855
 
     
Delaware – 0.1% (0.1% of Total Investments)
           
 
520
 
Delaware State Housing Authority, Multifamily Mortgage Revenue Bonds, Series 2001A, 5.400%, 7/01/24
7/12 at 100.00
Aa3
   
536,853
 
     
District of Columbia – 0.8% (0.6% of Total Investments)
           
 
1,335
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Tender Option Bond Trust 1606, 11.616%, 10/01/30 – AMBAC Insured (IF)
10/16 at 100.00
AA+
   
1,367,360
 
 
3,335
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Tender Option Bond Trust 1730, 11.592%, 10/01/30 – AMBAC Insured (IF)
10/16 at 100.00
AA+
   
3,415,840
 
 
4,670
 
Total District of Columbia
       
4,783,200
 
     
Florida – 3.3% (2.3% of Total Investments)
           
 
4,980
 
Broward County, Florida, Airport System Revenue Refunding Bonds, Series 2009O, 5.375%, 10/01/29
10/19 at 100.00
A+
   
5,241,898
 
     
Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
           
 
1,105
 
5.400%, 12/01/32 – AGM Insured
12/11 at 100.00
AA+
   
1,105,343
 
 
2,195
 
5.450%, 12/01/41 – AGM Insured
12/11 at 100.00
AA+
   
2,195,329
 
 
5,000
 
Orlando-Orange County Expressway Authority, Florida, Expressway Revenue Bonds, Series 2003B, 5.000%, 7/01/30 – AMBAC Insured
7/13 at 100.00
A
   
5,059,050
 
 
80
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Florida (continued)
           
$
5,455
 
South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB)
8/17 at 100.00
AA
 
$
5,450,309
 
 
1,000
 
Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007, 6.650%, 5/01/40 (5)
5/18 at 100.00
N/R
   
623,180
 
 
19,735
 
Total Florida
       
19,675,109
 
     
Georgia – 4.9% (3.4% of Total Investments)
           
 
15,000
 
Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 2010C, 5.250%, 1/01/30
1/21 at 100.00
A1
   
15,842,250
 
 
2,700
 
Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, Series 2001, 7.900%, 12/01/24 (Pre-refunded 12/01/11)
12/11 at 101.00
AAA
   
2,744,280
 
 
3,000
 
Franklin County Industrial Building Authority, Georgia, Revenue Bonds, Ty Cobb Regional Medical Center Project, Series 2010, 8.125%, 12/01/45
12/20 at 100.00
N/R
   
3,072,660
 
 
2,000
 
Fulton County Residential Care Facilities Authority, Georgia, Revenue Bonds, Elderly Care, Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42
7/17 at 100.00
N/R
   
1,363,700
 
 
5,000
 
Fulton County, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 5.000%, 1/01/35 – FGIC Insured
1/14 at 100.00
AA–
   
5,127,050
 
 
500
 
Gainesville Redevelopment Authority, Georgia, Educational Facilities Revenue Bonds, Riverside Military Academy Project, Series 2007, 5.125%, 3/01/37
3/17 at 100.00
N/R
   
367,470
 
 
28,200
 
Total Georgia
       
28,517,410
 
     
Illinois – 12.4% (8.6% of Total Investments)
           
 
2,200
 
Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Series 2011, 5.250%, 12/01/40 (WI/DD, Settling 11/04/11)
12/21 at 100.00
AA
   
2,270,312
 
 
8,375
 
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 5.500%, 1/01/19 – AGM Insured (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
8,399,706
 
 
4,950
 
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International Airport, Series 2001A, 5.375%, 1/01/32 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
A2
   
4,950,297
 
 
2,220
 
Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A, 5.500%, 1/01/16 – NPFG Insured
No Opt. Call
Aa3
   
2,462,868
 
 
1,165
 
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.000%, 1/01/33 – FGIC Insured
1/16 at 100.00
A1
   
1,172,095
 
 
8,875
 
Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33
11/20 at 100.00
AA
   
9,174,798
 
 
2,415
 
Illinois Finance Authority, General Obligation Debt Certificates, Local Government Program – Kankakee County, Series 2005B, 5.000%, 12/01/24 – AMBAC Insured
12/14 at 100.00
A2
   
2,471,028
 
 
3,465
 
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A, 5.500%, 8/01/37
8/17 at 100.00
BBB
   
3,190,052
 
 
9,000
 
Illinois Health Facilities Authority, Revenue Bonds, Covenant Retirement Communities Inc., Series 2001, 5.875%, 12/01/31
12/11 at 101.00
BBB–
   
9,009,900
 
 
5,000
 
Lake County School District 38, Big Hallow, Illinois, General Obligation Bonds, Series 2005, 0.000%, 2/01/22 – AMBAC Insured
No Opt. Call
N/R
   
2,727,200
 
 
7,000
 
Lombard Public Facilities Corporation, Illinois, First Tier Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36
1/16 at 100.00
N/R
   
4,707,430
 
 
12,000
 
Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Refunding Bonds, Series 2010A, 5.500%, 6/15/50
6/20 at 100.00
AAA
   
12,276,120
 
 
45,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/43 – AGM Insured
No Opt. Call
AAA
   
6,719,400
 
 
2,790
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 6/15/29 – FGIC Insured
No Opt. Call
AAA
   
3,107,669
 
 
114,455
 
Total Illinois
       
72,638,875
 
     
Indiana – 6.5% (4.5% of Total Investments)
           
     
Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds, Series 2001:
           
 
1,255
 
5.000%, 7/15/21 (Pre-refunded 1/15/12) – AMBAC Insured
1/12 at 100.00
AA+ (4)
   
1,267,425
 
 
1,000
 
5.000%, 1/15/26 (Pre-refunded 1/15/12) – AMBAC Insured
1/12 at 100.00
AA+ (4)
   
1,009,900
 
 
Nuveen Investments
 
81

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 3 (continued)
NZF
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Indiana (continued)
           
     
Evansville Vanderburgh Public Library Lease Corporation, Indiana, First Mortgage Bonds, Series 2001:
           
$
2,000
 
5.750%, 7/15/18 (Pre-refunded 1/15/12) – NPFG Insured
1/12 at 100.00
A+ (4)
 
$
2,022,880
 
 
2,750
 
5.125%, 1/15/24 (Pre-refunded 1/15/12) – NPFG Insured
1/12 at 100.00
A+ (4)
   
2,777,940
 
 
1,250
 
Hamilton Southeastern Cumberland Campus School Building Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.125%, 1/15/23 (Pre-refunded 1/15/12) – AMBAC Insured
1/12 at 100.00
A (4)
   
1,262,700
 
 
6,885
 
Indiana Educational Facilities Authority, Revenue Bonds, Butler University, Series 2001, 5.500%, 2/01/26 – NPFG Insured
2/12 at 100.00
Baa1
   
6,903,176
 
 
4,230
 
Indiana Finance Authority, Educational Facilities Revenue Bonds, Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24
6/15 at 100.00
Aa3
   
4,420,646
 
 
6,700
 
Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, Series 2011B, 5.000%, 10/01/41
10/21 at 100.00
AA–
   
6,812,426
 
 
2,600
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 – AMBAC Insured
5/15 at 100.00
A
   
2,541,994
 
 
3,500
 
University of Southern Indiana, Student Fee Revenue Bonds, Series 2001H, 5.000%, 10/01/21 – AMBAC Insured
4/12 at 100.00
A1
   
3,505,250
 
     
Vigo County Hospital Authority, Indiana, Revenue Bonds, Union Hospital, Series 2007:
           
 
2,500
 
5.750%, 9/01/42
9/17 at 100.00
N/R
   
2,269,825
 
 
2,500
 
5.800%, 9/01/47
9/17 at 100.00
N/R
   
2,277,575
 
 
1,090
 
Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.500%, 7/15/22 (Pre-refunded 1/15/13) – AMBAC Insured
1/13 at 101.00
A1 (4)
   
1,168,349
 
 
38,260
 
Total Indiana
       
38,240,086
 
     
Iowa – 0.5% (0.3% of Total Investments)
           
 
2,000
 
Iowa Finance Authority, Healthcare Revenue Bonds, Great River Medical Center, Series 2001, 5.250%, 5/15/31 – AGM Insured
11/11 at 100.00
Aa3
   
2,000,080
 
 
1,000
 
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 5.625%, 6/01/46
6/15 at 100.00
BBB
   
717,460
 
 
3,000
 
Total Iowa
       
2,717,540
 
     
Kansas – 0.3% (0.2% of Total Investments)
           
     
Manhattan Health Care Facility Revenue Bonds, Kansas, Meadowlarks Hills Retirement, Series 2007B:
           
 
1,000
 
5.125%, 5/15/37
5/14 at 103.00
N/R
   
818,730
 
 
1,000
 
5.125%, 5/15/42
5/14 at 103.00
N/R
   
805,810
 
 
2,000
 
Total Kansas
       
1,624,540
 
     
Kentucky – 1.2% (0.8% of Total Investments)
           
 
1,000
 
Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/42 – AGC Insured
6/18 at 100.00
AA+
   
1,060,350
 
 
5,400
 
Lexington-Fayette Urban County Government Public Facilities Corporation, Kentucky State Lease Revenue Bonds, Eastern State Hospital Project, Series 2011A, 5.250%, 6/01/29
6/21 at 100.00
Aa3
   
5,744,682
 
 
6,400
 
Total Kentucky
       
6,805,032
 
     
Louisiana – 7.6% (5.3% of Total Investments)
           
 
2,000
 
Jefferson Parish Hospital Service District 2, Louisiana, Hospital Revenue Bonds, East Jefferson General Hospital, Refunding Series 2011, 6.375%, 7/01/41
7/21 at 100.00
Baa2
   
2,005,500
 
 
3,000
 
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
11/17 at 100.00
BBB–
   
3,136,680
 
 
10,000
 
Louisiana Public Facilities Authority, Revenue Bonds, Loyola University Project, Refunding Series 2011, 5.000%, 10/01/41
10/21 at 100.00
A+
   
10,003,400
 
 
3,700
 
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5/17 at 100.00
Baa1
   
3,550,779
 
 
4,425
 
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, Series 2011, 6.750%, 5/15/41
5/21 at 100.00
Baa1
   
4,785,107
 
 
20,890
 
Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
11/11 at 101.00
A–
   
20,903,787
 
 
44,015
 
Total Louisiana
       
44,385,253
 
 
82
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Maine – 0.2% (0.1% of Total Investments)
           
$
1,075
 
Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2001B, 5.500%, 11/15/32 (Alternative Minimum Tax)
11/11 at 100.00
AA+
 
$
1,075,409
 
     
Maryland – 2.4% (1.7% of Total Investments)
           
 
1,000
 
Howard County, Maryland, Retirement Community Revenue Bonds, Vantage House, Series 2007B, 5.250%, 4/01/37
4/17 at 100.00
N/R
   
714,240
 
 
1,135
 
Maryland Community Development Administration, Insured Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001B, 5.250%, 7/01/21 (Pre-refunded 11/21/11) (Alternative Minimum Tax)
11/11 at 100.00
Aa2 (4)
   
1,137,894
 
 
2,000
 
Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31
12/16 at 100.00
N/R
   
1,242,520
 
 
10,600
 
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax)
3/12 at 100.00
N/R
   
10,674,200
 
 
555
 
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34
7/17 at 100.00
A–
   
513,930
 
 
15,290
 
Total Maryland
       
14,282,784
 
     
Massachusetts – 3.6% (2.5% of Total Investments)
           
 
1,375
 
Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007, 5.250%, 10/01/26
10/12 at 102.00
N/R
   
1,175,941
 
 
1,000
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30
7/15 at 100.00
BB–
   
844,850
 
 
1,600
 
Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk University Issue, Series 2009A, 5.750%, 7/01/39
7/19 at 100.00
BBB
   
1,605,264
 
 
1,505
 
Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 2008, Trust 3145, 15.393%, 6/01/16 (IF)
No Opt. Call
AA
   
1,589,491
 
 
400
 
Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A, 5.125%, 7/01/41
7/21 at 100.00
A
   
413,216
 
 
5,000
 
Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 – AMBAC Insured (Alternative Minimum Tax)
1/12 at 100.00
N/R
   
4,617,700
 
 
3,465
 
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB), (6)
2/17 at 100.00
AA+
   
3,480,558
 
 
7,165
 
Metropolitan Boston, Massachusetts, Transit Parking Corporation, Systemwide Parking Revenue Bonds, Senior Lien Series 2011, 5.000%, 7/01/41
7/21 at 100.00
A+
   
7,316,038
 
 
21,510
 
Total Massachusetts
       
21,043,058
 
     
Michigan – 8.1% (5.6% of Total Investments)
           
 
15,000
 
Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – AGM Insured (UB)
No Opt. Call
Aa2
   
16,602,150
 
 
2,000
 
Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital Obligated Group, Series 2007A, 5.000%, 8/15/38
8/17 at 100.00
N/R
   
1,420,560
 
 
2,750
 
Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds Series 2011A, 5.500%, 7/01/41
7/21 at 100.00
AA–
   
3,032,618
 
 
5,000
 
Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011, 5.000%, 12/01/39
No Opt. Call
AA
   
4,988,550
 
 
2,250
 
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2011-I-A, 5.375%, 10/15/41
No Opt. Call
Aa3
   
2,413,080
 
 
2,395
 
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sisters of Mercy Health Corporation, Series 1993P, 5.375%, 8/15/14 – NPFG Insured (ETM)
No Opt. Call
BBB (4)
   
2,563,369
 
 
2,865
 
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB)
12/16 at 100.00
AA
   
2,913,075
 
 
635
 
Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (Pre-refunded 12/01/16) (UB)
12/16 at 100.00
N/R (4)
   
748,595
 
 
12,640
 
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 – NPFG Insured
11/11 at 100.00
A1
   
12,639,494
 
 
45,535
 
Total Michigan
       
47,321,491
 
 
Nuveen Investments
 
83

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 3 (continued)
NZF
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Minnesota – 1.2% (0.9% of Total Investments)
           
$
2,185
 
Dakota County Community Development Agency, Minnesota, GNMA Collateralized Multifamily Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%,10/20/37 (Alternative Minimum Tax)
4/12 at 105.00
Aaa
 
$
2,265,233
 
 
3,000
 
Minnesota State, General Obligation Bonds, Various Purpose, Refunding Series 2010D, 5.000%, 8/01/18
No Opt. Call
AA+
   
3,625,770
 
 
1,375
 
Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions Hospital Parking Ramp Project, Series 2007-1, 5.000%, 8/01/36
8/16 at 100.00
N/R
   
1,245,503
 
 
6,560
 
Total Minnesota
       
7,136,506
 
     
Mississippi – 0.9% (0.6% of Total Investments)
           
 
2,155
 
Mississippi Business Finance Corporation, GNMA Collateralized Retirement Facility Mortgage Revenue Refunding Bonds, Aldersgate Retirement Community Inc. Project, Series 1999A, 5.450%, 5/20/34
11/11 at 101.00
AA+
   
2,163,469
 
 
3,000
 
Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB)
9/14 at 100.00
AA
   
3,091,200
 
 
5,155
 
Total Mississippi
       
5,254,669
 
     
Missouri – 3.3% (2.3% of Total Investments)
           
 
1,495
 
Cape Girardeau County Industrial Development Authority, Missouri, Health Facilities Revenue Bonds, Southeast Missouri Hospital Association, Series 2007, 5.000%, 6/01/36
6/17 at 100.00
N/R
   
1,333,017
 
 
1,000
 
Clinton County Industrial Development Authority, Missouri, Revenue Bonds, Cameron Regional Medical Center, Series 2007, 5.000%, 12/01/32
12/17 at 100.00
N/R
   
813,320
 
 
1,825
 
Fenton, Missouri, Tax Increment Refunding and Improvement Revenue Bonds, Gravois Bluffs Redevelopment Project, Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
10/12 at 100.00
N/R (4)
   
1,922,838
 
     
Missouri Development Finance Board, Cultural Facilities Revenue Bonds, Nelson Gallery Foundation, Series 2001A:
           
 
3,335
 
5.250%, 12/01/19 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
   
3,348,974
 
 
3,510
 
5.250%, 12/01/20 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
   
3,524,707
 
 
3,695
 
5.250%, 12/01/21 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
   
3,710,482
 
 
2,040
 
5.250%, 12/01/22 (Pre-refunded 12/01/11) – NPFG Insured
12/11 at 100.00
AA– (4)
   
2,048,548
 
 
2,500
 
Missouri Health and Educational Facilities Authority, Revenue Bonds, Washington University, Series 2011B, 5.000%, 11/15/37
11/21 at 100.00
AAA
   
2,760,500
 
 
19,400
 
Total Missouri
       
19,462,386
 
     
Montana – 0.9% (0.6% of Total Investments)
           
 
5,000
 
Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series 2000, 8.000%, 7/01/20 (Alternative Minimum Tax)
7/12 at 100.00
B+
   
5,037,950
 
     
Nebraska – 1.1% (0.7% of Total Investments)
           
 
4,330
 
Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2010A, 6.050%, 9/01/41
2/17 at 100.00
AA+
   
4,689,693
 
 
1,005
 
Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska City 2, Series 2006A, Trust 11673, 19.838%, 8/01/40 – AMBAC Insured (IF)
2/17 at 100.00
AA+
   
1,578,041
 
 
5,335
 
Total Nebraska
       
6,267,734
 
     
Nevada – 6.3% (4.4% of Total Investments)
           
 
10,000
 
Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42
1/20 at 100.00
Aa3
   
10,736,200
 
 
6,000
 
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/42
1/20 at 100.00
Aa3
   
6,174,120
 
 
2,000
 
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (5)
1/12 at 100.00
N/R
   
460,000
 
 
4,000
 
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (5)
1/12 at 100.00
N/R
   
5,960
 
 
5,000
 
Henderson, Nevada, General Obligation Sewer Bonds, Series 2004, 5.000%, 6/01/34 – FGIC Insured
12/14 at 100.00
AA+
   
5,099,150
 
 
10,000
 
Las Vegas Valley Water District, Nevada, Limited Tax General Obligation Bonds, Water & Refunding Series 2011C, 5.000%, 6/01/38
6/21 at 100.00
AA+
   
10,248,300
 
 
4,290
 
University of Nevada, Revenue Bonds, Community College System, Series 2001A, 5.250%, 7/01/26 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
Aa2 (4)
   
4,326,251
 
 
41,290
 
Total Nevada
       
37,049,981
 
 
84
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
New Hampshire – 0.3% (0.2% of Total Investments)
           
$
2,000
 
New Hampshire Health and Education Authority, Hospital Revenue Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 – AGM Insured
10/12 at 100.50
Aa3
 
$
2,022,980
 
     
New Jersey – 4.9% (3.4% of Total Investments)
           
 
10,000
 
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, American Water Company, Series 2002A, 5.250%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax)
11/12 at 101.00
A2
   
10,127,600
 
 
620
 
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
7/13 at 100.00
Ba2
   
484,834
 
 
4,125
 
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 – AMBAC Insured
No Opt. Call
Aa3
   
4,420,144
 
 
12,970
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital Appreciation Series 2010A, 0.000%, 12/15/33
No Opt. Call
A+
   
3,451,187
 
 
20,000
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C, 0.000%, 12/15/33 – AGM Insured
No Opt. Call
AA–
   
5,553,000
 
 
7,045
 
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
6/17 at 100.00
BB+
   
4,734,733
 
 
54,760
 
Total New Jersey
       
28,771,498
 
     
New York – 7.0% (4.9% of Total Investments)
           
 
900
 
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/32
4/17 at 100.00
N/R
   
763,830
 
     
Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue Bonds, Barclays Center Project, Series 2009:
           
 
1,275
 
6.000%, 7/15/30
1/20 at 100.00
BBB–
   
1,325,477
 
 
3,400
 
0.000%, 7/15/44
No Opt. Call
BBB–
   
447,848
 
 
4,675
 
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2011C, 5.000%, 3/15/41
3/21 at 100.00
AAA
   
4,978,875
 
 
1,780
 
East Rochester Housing Authority, New York, GNMA Secured Revenue Bonds, Gates Senior Housing Inc., Series 2001, 5.300%, 4/20/31
4/12 at 101.00
N/R
   
1,782,528
 
 
2,100
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.750%, 2/15/47
No Opt. Call
A
   
2,227,722
 
 
5,010
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured
2/17 at 100.00
A
   
4,561,705
 
 
2,800
 
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%, 5/01/36 – AGM Insured
5/21 at 100.00
AA+
   
2,941,512
 
 
750
 
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2011A, 5.000%, 11/15/41
11/21 at 100.00
A
   
775,418
 
 
4,155
 
Monroe County Airport Authority, New York, Revenue Refunding Bonds, Greater Rochester International Airport, Series 1999, 5.750%, 1/01/13 – NPFG Insured (Alternative Minimum Tax)
No Opt. Call
Baa1
   
4,315,258
 
 
8,000
 
New York City Industrial Development Agency, New York, American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
8/16 at 101.00
B–
   
7,428,880
 
 
3,125
 
New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Fiscal 2011 Series EE, 5.375%, 6/15/43
12/20 at 100.00
AA+
   
3,441,781
 
 
910
 
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 – NPFG Insured
8/12 at 100.00
AA
   
942,978
 
 
1,590
 
New York City, New York, General Obligation Bonds, Fiscal Series 2002G, 5.625%, 8/01/20 (Pre-refunded 8/01/12) – NPFG Insured
8/12 at 100.00
AA (4)
   
1,654,141
 
 
3,000
 
New York State Power Authority, General Revenue Bonds, Series 2011A, 5.000%, 11/15/38
11/21 at 100.00
Aa2
   
3,234,420
 
 
43,470
 
Total New York
       
40,822,373
 
     
North Carolina – 1.1% (0.8% of Total Investments)
           
 
1,710
 
Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue Bonds, Series 2008, Trust 1149, 14.799%, 7/15/32 (IF), (6)
1/18 at 100.00
AA–
   
1,742,781
 
 
1,200
 
Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care System Revenue Bonds, Carolinas Health Care, Series 2007A, 5.000%, 1/15/31
1/17 at 100.00
AA–
   
1,226,652
 
 
1,750
 
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
1/15 at 100.00
AA+ (4)
   
1,975,820
 
 
Nuveen Investments
 
85

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 3 (continued)
NZF
 
Portfolio of Investments
 
October 31, 2011
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
North Carolina (continued)
           
$
515
 
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.500%,1/01/13 (ETM)
No Opt. Call
N/R (4)
 
$
545,946
 
 
1,085
 
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.500%, 1/01/13
No Opt. Call
A
   
1,144,935
 
 
6,260
 
Total North Carolina
       
6,636,134
 
     
Ohio – 2.0% (1.4% of Total Investments)
           
     
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
           
 
4,735
 
5.125%, 6/01/24
6/17 at 100.00
BB–
   
3,648,365
 
 
710
 
5.875%, 6/01/30
6/17 at 100.00
BB–
   
536,817
 
 
685
 
5.750%, 6/01/34
6/17 at 100.00
BB–
   
497,146
 
 
1,570
 
5.875%, 6/01/47
6/17 at 100.00
BB–
   
1,115,297
 
 
5,800
 
Franklin County, Ohio, Hospital Revenue Bonds, Ohio Health Corporation, Series 2011A, 5.000%, 11/15/41
11/21 at 100.00
AA
   
5,833,988
 
 
13,500
 
Total Ohio
       
11,631,613
 
     
Oklahoma – 2.0% (1.4% of Total Investments)
           
     
Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007:
           
 
4,370
 
5.000%, 2/15/37
2/17 at 100.00
A
   
4,421,260
 
 
955
 
5.000%, 2/15/42
2/17 at 100.00
A
   
963,538
 
 
6,305
 
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health System, Series 2006, 5.000%, 12/15/36 (UB)
12/16 at 100.00
AA+
   
6,399,890
 
 
88
 
Tulsa County Industrial Authority, Oklahoma, Health Care Revenue Bonds, Saint Francis Health System, Series 2008, Trust 3500, 8.415%, 6/15/30 (IF)
12/16 at 100.00
AA+
   
90,408
 
 
11,718
 
Total Oklahoma
       
11,875,096
 
     
Oregon – 0.8% (0.6% of Total Investments)
           
 
4,700
 
Oregon Health, Housing, Educational and Cultural Facilities Authority, Revenue Bonds, PeaceHealth Project, Series 2001, 5.250%, 11/15/21 – AMBAC Insured
11/11 at 101.00
A+
   
4,753,392
 
     
Pennsylvania – 1.7% (1.2% of Total Investments)
           
 
500
 
Bucks County Industrial Development Authority, Pennsylvania, Charter School Revenue Bonds, School Lane Charter School, Series 2007A, 5.000%, 3/15/37
3/17 at 100.00
BBB
   
417,070
 
 
3,500
 
Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax)
1/12 at 100.00
CC
   
1,981,140
 
 
1,400
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, St. Joseph’s University, Series 2010A, 5.000%, 11/01/40
11/20 at 100.00
A–
   
1,419,754
 
 
5,705
 
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) – FGIC Insured
8/12 at 100.00
Aa2 (4)
   
5,935,140
 
 
11,105
 
Total Pennsylvania
       
9,753,104
 
     
Puerto Rico – 0.4% (0.3% of Total Investments)
           
 
2,500
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 5.250%, 8/01/57
8/17 at 100.00
Aa2
   
2,570,800
 
     
Tennessee – 0.3% (0.2% of Total Investments)
           
 
3,680
 
Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41
1/17 at 30.07
A
   
627,477
 
 
275
 
Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C, 5.250%, 9/01/36
9/16 at 100.00
BBB+
   
259,515
 
     
Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007:
           
 
800
 
5.500%, 11/01/37 (5), (7)
11/17 at 100.00
N/R
   
59,280
 
 
2,800
 
5.500%, 11/01/46 (5), (7)
11/17 at 100.00
N/R
   
207,480
 
 
660
 
Tennessee Housing Development Agency, Homeownership Program Bonds, Series 2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax)
1/12 at 100.00
AA+
   
660,403
 
 
8,215
 
Total Tennessee
       
1,814,155
 
 
86
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Texas – 18.0% (12.6% of Total Investments)
           
$
5,445
 
Board of Regents, University of Texas System, Financing System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
2/17 at 100.00
AAA
 
$
5,515,513
 
 
2,700
 
Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, Series 2011, 6.250%, 1/01/46
1/21 at 100.00
BBB–
   
2,753,460
 
 
4,500
 
Colorado River Municipal Water District, Texas, Water System Revenue Bonds, Series 2011, 5.000%, 1/01/36
1/21 at 100.00
AA–
   
4,720,635
 
 
3,135
 
Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 – NPFG Insured (Alternative Minimum Tax)
11/11 at 100.00
A+
   
3,135,596
 
 
5,000
 
Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health System, Series 2004A, 7.000%, 9/01/25
9/14 at 100.00
N/R
   
5,036,200
 
 
10,000
 
Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2011D, 5.000%, 11/15/40
11/21 at 100.00
AA
   
10,653,900
 
 
4,965
 
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Facilities Department, Refunding Series 2011B, 5.250%, 9/01/27
No Opt. Call
A2
   
5,102,034
 
 
6,000
 
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2001B, 5.500%, 12/01/29 – NPFG Insured (ETM)
No Opt. Call
AA+ (4)
   
7,667,820
 
     
Houston, Texas, Subordinate Lien Airport System Revenue Refunding Bonds, Series 2001A:
           
 
2,525
 
5.500%, 7/01/13 – FGIC Insured (Alternative Minimum Tax)
1/12 at 100.00
A
   
2,543,988
 
 
2,905
 
5.500%, 7/01/14 – FGIC Insured (Alternative Minimum Tax)
1/12 at 100.00
A
   
2,926,846
 
 
14,200
 
Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Series 2007A, 4.750%, 8/01/43 (UB)
8/16 at 100.00
AAA
   
14,516,944
 
 
8,000
 
Lower Colorado River Authority, Texas, Transmission Contract Refunding Revenue Bonds, LCRA Transmission Services Corporation Project, Refunding & Improvement Series 2010, 5.000%, 5/15/40
5/20 at 100.00
A
   
8,158,560
 
 
1,750
 
Martin County Hospital District, Texas, Combination Limited Tax and Revenue Bonds, Series 2011A, 7.250%, 4/01/36
4/21 at 100.00
N/R
   
1,823,710
 
 
2,500
 
Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston Light and Power Company, Series 1997, 5.125%, 11/01/28 – AMBAC Insured (Alternative Minimum Tax)
No Opt. Call
A3
   
2,610,000
 
 
3,150
 
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F, 5.750%, 1/01/38
1/18 at 100.00
A3
   
3,247,682
 
     
North Texas Tollway Authority, Special Projects System Revenue Bonds, Series 2011C:
           
 
4,370
 
0.000%, 9/01/43
9/31 at 100.00
AA
   
2,420,062
 
 
9,130
 
0.000%, 9/01/45
9/31 at 100.00
AA
   
5,593,312
 
 
3,500
 
Southwest Higher Education Authority Inc, Texas, Revenue Bonds, Southern Methodist University, Series 2010, 5.000%, 10/01/41
No Opt. Call
AA–
   
3,638,985
 
 
7,700
 
Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds, Texas Health Resources, Series 2007A, 5.000%, 2/15/36 (UB)
2/17 at 100.00
AA–
   
7,758,135
 
     
White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, Series 2006:
           
 
9,110
 
0.000%, 8/15/37
8/15 at 31.98
AAA
   
2,427,268
 
 
9,110
 
0.000%, 8/15/40
8/15 at 27.11
AAA
   
2,053,303
 
 
7,110
 
0.000%, 8/15/44
8/15 at 21.88
AAA
   
1,290,323
 
 
126,805
 
Total Texas
       
105,594,276
 
     
Utah – 0.4% (0.3% of Total Investments)
           
     
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E:
           
 
630
 
5.200%, 1/01/18 (Alternative Minimum Tax)
1/12 at 100.00
AA–
   
632,293
 
 
240
 
5.500%, 1/01/23 (Alternative Minimum Tax)
1/12 at 100.00
Aaa
   
247,999
 
     
Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1:
           
 
965
 
4.950%, 7/01/18 (Alternative Minimum Tax)
1/12 at 100.00
AA–
   
980,623
 
 
355
 
5.300%, 7/01/23 (Alternative Minimum Tax)
1/12 at 100.00
Aaa
   
365,100
 
 
2,190
 
Total Utah
       
2,226,015
 
     
Virginia – 0.1% (0.1% of Total Investments)
           
 
1,000
 
Chesterfield County Health Center Commission, Virginia, Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.375%, 12/01/28
12/15 at 100.00
N/R
   
870,920
 
 
Nuveen Investments
 
87

 
 

 

   
Nuveen Dividend Advantage Municipal Fund 3 (continued)
NZF
 
Portfolio of Investments
October 31, 2011

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Washington – 9.1% (6.4% of Total Investments)
           
     
Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity Village Project, Series 2001A:
           
$
1,000
 
5.500%, 12/01/27 – NFPG Insured
12/11 at 100.00
Aaa
 
$
1,001,350
 
 
2,000
 
5.600%, 12/01/36 – NFPG Insured
12/11 at 100.00
Aaa
   
2,002,280
 
 
2,500
 
King County, Washington, Sewer Revenue Bonds, Series 2009, 5.250%, 1/01/42 Port of Seattle, Washington, Revenue Bonds, Series 2001B:
1/19 at 100.00
AA+
   
2,692,100
 
 
2,535
 
5.625%, 4/01/18 – FGIC Insured (Alternative Minimum Tax)
4/12 at 100.00
Aa2
   
2,543,949
 
 
16,000
 
5.100%, 4/01/24 – FGIC Insured (Alternative Minimum Tax) (UB)
1/12 at 100.00
Aa2
   
16,011,200
 
 
5,205
 
Port of Seattle, Washington, Revenue Bonds, Series 2005A, 5.000%, 3/01/35 – NPFG Insured
3/15 at 100.00
Aa3
   
5,339,185
 
 
4,530
 
Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series 2001, 5.250%, 12/01/21 (Pre-refunded 12/01/11) – AMBAC Insured
12/11 at 100.00
AA (4)
   
4,549,162
 
 
10,000
 
Washington Health Care Facilities Authority, Revenue Bonds, Catholic Health, Series 2011A, 5.000%, 2/01/41 (WI/DD, Settling 11/10/11)
2/21 at 100.00
AA
   
9,945,901
 
 
3,410
 
Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35
1/21 at 100.00
A
   
3,458,457
 
     
Washington State Health Care Facilities Authority, Revenue Bonds, Group Health Cooperative of Puget Sound, Series 2001:
           
 
3,005
 
5.375%, 12/01/17 – AMBAC Insured
12/11 at 101.00
BBB
   
3,037,393
 
 
2,915
 
5.375%, 12/01/18 – AMBAC Insured
12/11 at 101.00
BBB
   
2,942,692
 
 
53,100
 
Total Washington
       
53,523,669
 
     
Wisconsin – 1.6% (1.2% of Total Investments)
           
     
Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001:
           
 
3,705
 
5.375%, 1/01/20 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
N/R (4)
   
3,736,936
 
 
1,850
 
5.000%, 1/01/21 (Pre-refunded 1/01/12) – FGIC Insured
1/12 at 100.00
N/R (4)
   
1,864,799
 
 
1,000
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33
9/17 at 100.00
BBB+
   
927,829
 
 
350
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert and Community Health Obligated Group, Series 2001, 5.375%, 10/01/30
10/12 at 100.00
AA–
   
352,628
 
 
2,500
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25
2/12 at 100.00
BBB+
   
2,505,224
 
 
330
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33
8/13 at 100.00
BBB+
   
294,564
 
 
9,735
 
Total Wisconsin
       
9,681,980
 
$
935,498
 
Total Municipal Bonds (cost $809,450,354)
       
812,333,076
 
                   
 
Shares
 
Description (1)
       
Value
 
     
Investment Companies – 0.6% (0.4% of Total Investments)
           
 
6,266
 
BlackRock MuniHoldings Fund Inc.
     
$
99,629
 
 
26,880
 
Dreyfus Strategic Municipals Inc.
       
231,168
 
 
131,278
 
DWS Municipal Income Trust
       
1,659,354
 
 
43,020
 
Invesco Van Kampen Investment Grade Municipal Trust
       
615,186
 
 
30,000
 
Invesco Van Kampen Municipal Opportunity Trust
       
409,500
 
 
43,420
 
PIMCO Municipal Income Fund II
       
479,791
 
     
Total Investment Companies (cost $3,325,133)
       
3,494,628
 
 
88
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Short-Term Investments – 4.3% (3.0% of Total Investments)
           
     
Illinois – 1.5% (1.1% of Total Investments)
           
$
9,000
 
Chicago, Illinois, General Obligation Bonds, Tender Option Bonds Trust 3190, Variable Rate Demand Series, 0.140%, 1/01/17 (8)
No Opt. Call
N/R
 
$
9,000,000
 
     
South Carolina – 0.8% (0.6% of Total Investments)
           
 
5,990
 
South Carolina Educational Facilities Authority, Charleston Southern University Education Facilities Revenue Bond, Variable Rate Demand Series 2003, 0.200%, 4/01/28 (8)
2/12 at 100.00
N/R
   
4,730,000
 
     
Texas – 1.0% (0.7% of Total Investments)
           
 
4,730
 
Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Tender Option Bond Trust 3181, Variable Rate Demand Series, 0.240%, 1/01/12 - AGM Insured (8)
No Opt. Call
AA+
   
5,990,000
 
     
Washington – 1.0% (0.6% of Total Investments)
           
 
5,480
 
Bellingham, Washington, Water and Sewer Revenue Bonds, Tender Option Bond Trust 11981X, Variable Rate Demand Series, 0.150%, 8/01/19 (8)
No Opt. Call
Aa2
   
5,480,000
 
$
25,200
 
Total Short-Term Investments (cost $25,200,000)
       
25,200,000
 
     
Total Investments (cost $837,975,487) – 143.3%
       
841,027,704
 
     
Floating Rate Obligations – (9.5)%
       
(55,612,000
     
MuniFund Rate Term Preferred Shares, at Liquidation Value – (11.9)% (9)
       
(70,000,000
     
Variable Rate MuniFund Term Preferred Shares, at Liquidation Value - (28.8)% (9)
       
(169,200,000
     
Other Assets Less Liabilities – 6.9%
       
40,831,697
 
     
Net Assets Applicable to Common Shares – 100%
     
$
587,047,401
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
Investment, or portion of investment, has been pledged to collateralize the net payment obligations of investments in inverse floating rate transactions.
 (7)   For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(8)
 
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.
(9)
 
MuniFund Term Preferred Shares and Variable Rate MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments are 8.3% and 20.1%, respectively.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
 (ETM)   Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
 See accompanying notes to financial statements.
 
Nuveen Investments
 
89
 
 
 

 


 
 
Statement of
 
 
Assets & Liabilities
   
October 31, 2011

     
Performance
   
Municipal
   
Market
 
     
Plus
   
Advantage
   
Opportunity
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
Assets
                   
Investments, at value (cost $1,278,507,478, $929,006,567 and $999,529,521, respectively)
 
$
1,321,271,982
 
$
936,163,679
 
$
985,313,481
 
Cash
   
10,167,184
   
   
6,384,223
 
Receivables:
                   
Dividends and interest
   
17,867,972
   
15,315,508
   
15,435,671
 
Investments sold
   
13,977,567
   
27,967,649
   
14,691,256
 
Deferred offering costs
   
1,376,188
   
2,018,348
   
3,990,364
 
Other assets
   
320,400
   
436,152
   
424,530
 
Total assets
   
1,364,981,293
   
981,901,336
   
1,026,239,525
 
Liabilities
                   
Cash overdraft
   
   
5,295,713
   
 
Floating rate obligations
   
40,020,000
   
46,513,333
   
43,530,000
 
Payables:
                   
Common share dividends
   
4,231,787
   
3,072,666
   
3,111,812
 
Investments purchased
   
4,635,093
   
2,557,027
   
4,635,093
 
Interest
   
498,992
   
   
 
Offering costs
   
172,081
   
243,294
   
393,751
 
MuniFund Term Preferred (MTP) Shares, at liquidation value
   
   
   
 
Variable Rate MuniFund Term Preferred (VMTP) Shares, at liquidation value
   
421,700,000
   
   
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
   
296,800,000
   
350,900,000
 
Accrued expenses:
                   
Management fees
   
693,016
   
494,449
   
510,125
 
Other
   
427,782
   
308,904
   
344,109
 
Total liabilities
   
472,378,751
   
355,285,386
   
403,424,890
 
Net assets applicable to Common shares
 
$
892,602,542
 
$
626,615,950
 
$
622,814,635
 
Common shares outstanding
   
59,952,462
   
43,591,176
   
45,809,174
 
Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding)
 
$
14.89
 
$
14.37
 
$
13.60
 
                     
Net assets applicable to Common shares consist of:
                   
Common shares, $.01 par value per share
 
$
599,525
 
$
435,912
 
$
458,092
 
Paid-in surplus
   
838,514,978
   
609,469,537
   
638,984,246
 
Undistributed (Over-distribution of) net investment income
   
17,435,924
   
7,315,192
   
5,775,306
 
Accumulated net realized gain (loss)
   
(6,712,389
)
 
2,238,197
   
(8,186,969
)
Net unrealized appreciation (depreciation)
   
42,764,504
   
7,157,112
   
(14,216,040
)
Net assets applicable to Common shares
 
$
892,602,542
 
$
626,615,950
 
$
622,814,635
 
Authorized shares:
                   
Common
   
200,000,000
   
200,000,000
   
200,000,000
 
Auction Rate Preferred Shares (ARPS)
   
1,000,000
   
1,000,000
   
1,000,000
 
MTP
   
   
   
 
VMTP
   
Unlimited
   
   
 
VRDP
   
   
Unlimited
   
Unlimited
 

See accompanying notes to financial statements.

90
 
Nuveen Investments

 
 

 

     
Dividend
   
Dividend
   
Dividend
 
     
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NAD
)
 
(NXZ
)
 
(NZF
)
Assets
                   
Investments, at value (cost $858,469,948, $601,166,992 and $837,975,487, respectively)
 
$
861,210,132
 
$
601,940,274
 
$
841,027,704
 
Cash
   
4,862,056
   
3,413,566
   
1,671,232
 
Receivables:
                   
Dividends and interest
   
13,685,487
   
10,708,543
   
14,435,906
 
Investments sold
   
4,150,908
   
31,611,284
   
41,686,551
 
Deferred offering costs
   
1,970,512
   
2,069,544
   
1,921,295
 
Other assets
   
201,118
   
242,590
   
197,478
 
Total assets
   
886,080,213
   
649,985,801
   
900,940,166
 
Liabilities
                   
Cash overdraft
   
   
   
 
Floating rate obligations
   
51,605,000
   
18,260,000
   
55,612,000
 
Payables:
                   
Common share dividends
   
2,883,060
   
2,282,465
   
3,208,335
 
Investments purchased
   
   
5,804,183
   
14,594,915
 
Interest
   
446,691
   
   
327,624
 
Offering costs
   
380,549
   
32,532
   
375,368
 
MuniFund Term Preferred (MTP) Shares, at liquidation value
   
144,300,000
   
   
70,000,000
 
Variable Rate MuniFund Term Preferred (VMTP) Shares, at liquidation value
   
120,400,000
   
   
169,200,000
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
   
196,000,000
   
 
Accrued expenses:
                   
Management fees
   
441,518
   
321,465
   
423,241
 
Other
   
259,220
   
200,286
   
151,282
 
Total liabilities
   
320,716,038
   
222,900,931
   
313,892,765
 
Net assets applicable to Common shares
 
$
565,364,175
 
$
427,084,870
 
$
587,047,401
 
Common shares outstanding
   
39,296,352
   
29,461,808
   
40,392,021
 
Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding)
 
$
14.39
 
$
14.50
 
$
14.53
 
                     
Net assets applicable to Common shares consist of:
                   
Common shares, $.01 par value per share
 
$
392,964
 
$
294,618
 
$
403,920
 
Paid-in surplus
   
550,324,441
   
420,261,977
   
575,456,976
 
Undistributed (Over-distribution of) net investment income
   
10,952,267
   
6,451,843
   
9,617,756
 
Accumulated net realized gain (loss)
   
954,319
   
(696,850
)
 
(1,483,468
)
Net unrealized appreciation (depreciation)
   
2,740,184
   
773,282
   
3,052,217
 
Net assets applicable to Common shares
 
$
565,364,175
 
$
427,084,870
 
$
587,047,401
 
Authorized shares:
                   
Common
   
Unlimited
   
Unlimited
   
Unlimited
 
Auction Rate Preferred Shares (ARPS)
   
Unlimited
   
Unlimited
   
Unlimited
 
MTP
   
Unlimited
   
   
Unlimited
 
VMTP
   
Unlimited
   
   
Unlimited
 
VRDP
   
   
Unlimited
   
 

See accompanying notes to financial statements.

Nuveen Investments
 
91

 
 

 

 
  Statement of
 
  Operations
  Year Ended October 31, 2011

     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Investment Income
 
$
72,230,403
 
$
52,429,697
 
$
52,600,695
 
$
47,268,678
 
$
36,283,619
 
$
47,919,507
 
Expenses
                                     
Management fees
   
7,960,706
   
5,675,061
   
5,845,747
   
5,055,608
   
3,693,113
   
5,315,387
 
Auction fees
   
198,133
   
   
   
107,015
   
   
199,365
 
Dividend disbursing agent fees
   
17,105
   
   
   
29,918
   
   
30,000
 
Shareholders’ servicing agent fees and expenses
   
113,811
   
64,050
   
67,632
   
44,159
   
3,711
   
14,721
 
Interest expense and amortization of offering costs
   
4,810,267
   
1,586,051
   
1,814,037
   
5,060,910
   
971,958
   
2,694,130
 
Fees on VRDP Shares
   
   
4,123,013
   
3,979,328
   
   
2,222,708
   
 
Custodian’s fees and expenses
   
211,097
   
150,310
   
158,513
   
137,185
   
102,286
   
133,205
 
Directors’/Trustees’ fees and expenses
   
37,957
   
27,687
   
28,741
   
24,548
   
18,541
   
24,895
 
Professional fees
   
142,973
   
151,619
   
325,915
   
144,932
   
143,550
   
51,290
 
Shareholders’ reports – printing and mailing expenses
   
158,975
   
80,423
   
110,547
   
88,958
   
50,132
   
84,921
 
Stock exchange listing fees
   
20,064
   
15,182
   
15,830
   
36,842
   
3,850
   
17,349
 
Investor relations expense
   
95,841
   
62,540
   
67,260
   
58,085
   
41,151
   
55,236
 
Other expenses
   
72,031
   
59,243
   
63,418
   
66,202
   
43,908
   
55,565
 
Total expenses before custodian fee credit and expense reimbursement
   
13,838,960
   
11,995,179
   
12,476,968
   
10,854,362
   
7,294,908
   
8,676,064
 
Custodian fee credit
   
(10,954
)
 
(10,681
)
 
(10,717
)
 
(11,140
)
 
(9,874
)
 
(18,539
)
Expense reimbursement
   
   
   
   
   
(123,892
)
 
(401,481
)
Net expenses
   
13,828,006
   
11,984,498
   
12,466,251
   
10,843,222
   
7,161,142
   
8,256,044
 
Net investment income (loss)
   
58,402,397
   
40,445,199
   
40,134,444
   
36,425,456
   
29,122,477
   
39,663,463
 
Realized and Unrealized Gain (Loss)
                                     
Net realized gain (loss) from investments
   
(591,675
)
 
8,178,413
   
(3,062,685
)
 
5,578,402
   
6,152,659
   
1,617,428
 
Change in net unrealized appreciation (depreciation) of investments
   
(18,358,182
)
 
(19,639,261
)
 
(18,881,221
)
 
(17,440,480
)
 
(14,731,426
)
 
(8,746,437
)
Net realized and unrealized gain (loss)
   
(18,949,857
)
 
(11,460,848
)
 
(21,943,906
)
 
(11,862,078
)
 
(8,578,767
)
 
(7,129,009
)
Distributions to Auction Rate Preferred Shareholders
                                     
From net investment income
   
(605,027
)
 
(13,530
)
 
(18,596
)
 
(319,994
)
 
   
(579,698
)
From accumulated net realized gains
   
(115,631
)
 
   
   
   
   
(9,510
)
Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders
   
(720,658
)
 
(13,530
)
 
(18,596
)
 
(319,994
)
 
   
(589,208
)
Net increase (decrease) in net assets applicable to Common shares from operations
 
$
38,731,882
 
$
28,970,821
 
$
18,171,942
 
$
24,243,384
 
$
20,543,710
 
$
31,945,246
 

See accompanying notes to financial statements.

92
 
Nuveen Investments

 
 

 

   
Statement of
   
Changes in Net Assets

      Performance Plus (NPP)     Municipal Advantage (NMA)     Market Opportunity (NMO)  
     
Year
   
Year
   
Year
   
Year
   
Year
   
Year
 
     
Ended
   
Ended
   
Ended
   
Ended
   
Ended
   
Ended
 
     
10/31/11
   
10/31/10
   
10/31/11
   
10/31/10
   
10/31/11
   
10/31/10
 
Operations
                                     
Net investment income (loss)
 
$
58,402,397
 
$
61,961,159
 
$
40,445,199
 
$
43,865,457
 
$
40,134,444
 
$
45,415,957
 
Net realized gain (loss) from investments
   
(591,675
)
 
5,333,340
   
8,178,413
   
2,499,059
   
(3,062,685
)
 
7,021,125
 
Change in net unrealized appreciation (depreciation) of investments
   
(18,358,182
)
 
36,406,331
   
(19,639,261
)
 
29,929,503
   
(18,881,221
)
 
18,357,610
 
Distributions to Auction Rate Preferred Shareholders:
                                     
From net investment income
   
(605,027
)
 
(1,674,198
)
 
(13,530
)
 
(355,444
)
 
(18,596
)
 
(606,064
)
From accumulated net realized gains
   
(115,631
)
 
(47,490
)
 
   
(183,376
)
 
   
 
Net increase (decrease) in net assets applicable to Common shares from operations
   
38,731,882
   
101,979,142
   
28,970,821
   
75,755,199
   
18,171,942
   
70,188,628
 
Distributions to Common Shareholders
                                     
From net investment income
   
(57,031,258
)
 
(55,177,839
)
 
(43,394,199
)
 
(42,290,819
)
 
(44,419,598
)
 
(43,873,378
)
From accumulated net realized gains
   
(5,533,612
)
 
(814,831
)
 
(3,480,219
)
 
(2,827,574
)
 
   
 
Decrease in net assets applicable to Common shares from distributions to Common shareholders
   
(62,564,870
)
 
(55,992,670
)
 
(46,874,418
)
 
(45,118,393
)
 
(44,419,598
)
 
(43,873,378
)
Capital Share Transactions
                                     
Net proceeds from Common shares issued to shareholders due to reinvestment of distributions
   
283,901
   
292,445
   
2,155,588
   
2,913,988
   
1,045,705
   
2,382,420
 
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
   
283,901
   
292,445
   
2,155,588
   
2,913,988
   
1,045,705
   
2,382,420
 
Net increase (decrease) in net assets applicable to Common shares
   
(23,549,087
)
 
46,278,917
   
(15,748,009
)
 
33,550,794
   
(25,201,951
)
 
28,697,670
 
Net assets applicable to Common shares at the beginning of period
   
916,151,629
   
869,872,712
   
642,363,959
   
608,813,165
   
648,016,586
   
619,318,916
 
Net assets applicable to Common shares at the end of period
 
$
892,602,542
 
$
916,151,629
 
$
626,615,950
 
$
642,363,959
 
$
622,814,635
 
$
648,016,586
 
Undistributed (Over-distribution of) net investment income at the end of period
 
$
17,435,924
 
$
16,554,168
 
$
7,315,192
 
$
10,244,572
 
$
5,775,306
 
$
9,994,354
 

See accompanying notes to financial statements.

Nuveen Investments
 
93

 
 

 

   
Statement of
   
Changes in Net Assets (continued)

      Dividend Advantage (NAD)
 
 
Dividend Advantage 2 (NXZ)
    Dividend Advantage 3 (NZF)  
     
Year
   
Year
   
Year
   
Year
   
Year
   
Year
 
     
Ended
   
Ended
   
Ended
   
Ended
   
Ended
   
Ended
 
     
10/31/11
   
10/31/10
   
10/31/11
   
10/31/10
   
10/31/11
   
10/31/10
 
Operations
                                     
Net investment income (loss)
 
$
36,425,456
 
$
39,281,244
 
$
29,122,477
 
$
30,012,369
 
$
39,663,463
 
$
43,023,730
 
Net realized gain (loss) from investments
   
5,578,402
   
1,079,125
   
6,152,659
   
1,450,091
   
1,617,428
   
786,636
 
Change in net unrealized appreciation (depreciation) of investments
   
(17,440,480
)
 
27,410,233
   
(14,731,426
)
 
6,351,263
   
(8,746,437
)
 
20,450,314
 
Distributions to Auction Rate Preferred Shareholders:
                                     
From net investment income
   
(319,994
)
 
(724,675
)
 
   
   
(579,698
)
 
(880,640
)
From accumulated net realized gains
   
   
   
   
   
(9,510
)
 
(125,552
)
Net increase (decrease) in net assets applicable to Common shares from operations
   
24,243,384
   
67,045,927
   
20,543,710
   
37,813,723
   
31,945,246
   
63,254,488
 
Distributions to Common Shareholders
                                     
From net investment income
   
(35,837,926
)
 
(35,752,124
)
 
(28,282,999
)
 
(28,615,006
)
 
(39,745,377
)
 
(38,518,652
)
From accumulated net realized gains
   
   
   
   
   
(630,116
)
 
(2,547,863
)
Decrease in net assets applicable to Common shares from distributions to Common shareholders
   
(35,837,926
)
 
(35,752,124
)
 
(28,282,999
)
 
(28,615,006
)
 
(40,375,493
)
 
(41,066,515
)
Capital Share Transactions
                                     
Net proceeds from Common shares issued to shareholders due to reinvestment of distributions
   
63,949
   
66,815
   
59,744
   
312,251
   
64,704
   
137,143
 
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
   
63,949
   
66,815
   
59,744
   
312,251
   
64,704
   
137,143
 
Net increase (decrease) in net assets applicable to Common shares
   
(11,530,593
)
 
31,360,618
   
(7,679,545
)
 
9,510,968
   
(8,365,543
)
 
22,325,116
 
Net assets applicable to Common shares at the beginning of period
   
576,894,768
   
545,534,150
   
434,764,415
   
425,253,447
   
595,412,944
   
573,087,828
 
Net assets applicable to Common shares at the end of period
 
$
565,364,175
 
$
576,894,768
 
$
427,084,870
 
$
434,764,415
 
$
587,047,401
 
$
595,412,944
 
Undistributed (Over-distribution of) net investment income at the end of period
 
$
10,952,267
 
$
10,503,735
 
$
6,451,843
 
$
5,571,360
 
$
9,617,756
 
$
10,037,019
 

   
See accompanying notes to financial statements.

94
 
Nuveen Investments

 
 

 

   
Statement of
   
Cash Flows
 
Year Ended October 31, 2011

     
Performance
   
Municipal
   
Market
 
     
Plus
   
Advantage
   
Opportunity
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
Cash Flows from Operating Activities:
                   
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
38,731,882
 
$
28,970,821
 
$
18,171,942
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
                   
Purchases of investments
   
(125,871,204
)
 
(134,828,212
)
 
(153,734,830
)
Proceeds from sales and maturities of investments
   
160,856,247
   
178,925,746
   
139,793,839
 
Proceeds from (Purchases of) short-term investments, net
   
   
   
 
Amortization (Accretion) of premiums and discounts, net
   
(14,246,878
)
 
(6,436,159
)
 
(7,040,343
)
(Increase) Decrease in:
                   
Receivable for dividends and interest
   
502,511
   
637,932
   
567,421
 
Receivable for investments sold
   
(13,182,567
)
 
(27,372,649
)
 
46,452,744
 
Other assets
   
(22,024
)
 
(6,670
)
 
(28,875
)
Increase (Decrease) in:
                   
Payable for Auction Rate Preferred share dividends
   
(25,686
)
 
   
 
Payable for investments purchased
   
4,635,093
   
2,557,027
   
(7,098,889
)
Payable for interest
   
498,992
   
   
 
Accrued management fees
   
(18,768
)
 
30,809
   
49,617
 
Accrued other expenses
   
(62,801
)
 
(29,956
)
 
(30,243
)
Net realized (gain) loss from investments
   
591,675
   
(8,178,413
)
 
3,062,685
 
Change in net unrealized (appreciation) depreciation of investments
   
18,358,182
   
19,639,261
   
18,881,221
 
Taxes paid on undistributed capital gains
   
(373
)
 
(181,725
)
 
(4,366
)
Net cash provided by (used in) operating activities
   
70,744,281
   
53,727,812
   
59,041,923
 
Cash Flows from Financing Activities:
                   
(Increase) Decrease in deferred offering costs
   
(1,376,188
)
 
71,575
   
140,736
 
Increase (Decrease) in:
                   
Cash overdraft
   
   
5,295,713
   
(9,292,196
)
Floating rate obligations
   
(2,305,000
)
 
(21,181,650
)
 
 
Payable for offering costs
   
172,081
   
   
 
ARPS, at liquidation value
   
(419,900,000
)
 
   
 
MTP Shares, at liquidation value
   
   
   
 
VMTP Shares, at liquidation value
   
421,700,000
   
   
 
Cash distributions paid to Common shareholders
   
(62,169,509
)
 
(44,700,466
)
 
(43,506,240
)
Net cash provided by (used in) financing activities
   
(63,878,616
)
 
(60,514,828
)
 
(52,657,700
)
Net Increase (Decrease) in Cash
   
6,865,665
   
(6,787,016
)
 
6,384,223
 
Cash at the beginning of period
   
3,301,519
   
6,787,016
   
 
Cash at the End of Period
 
$
10,167,184
 
$
 
$
6,384,223
 

Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $283,901, $2,155,588 and $1,045,705 for Performance Plus (NPP), Municipal Advantage (NMA) and Market Opportunity (NMO), respectively.

     
Performance
   
Municipal
   
Market
 
     
Plus
   
Advantage
   
Opportunity
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
Cash paid for interest (excluding amortization of offering costs)
 
$
3,907,462
 
$
1,514,476
 
$
1,673,300
 

See accompanying notes to financial statements.

Nuveen Investments
 
95

 
 

 

 
 
Statement of
 
 
Cash Flows (continued)
 
   
Year Ended October 31, 2011

     
Dividend
   
Dividend
   
Dividend
 
     
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NAD
)
 
(NXZ
)
 
(NZF
)
Cash Flows from Operating Activities:
                   
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
24,243,384
 
$
20,543,710
 
$
31,945,246
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
                   
Purchases of investments
   
(128,568,854
)
 
(243,875,221
)
 
(250,046,891
)
Proceeds from sales and maturities of investments
   
132,702,951
   
275,555,510
   
314,415,649
 
Proceeds from (Purchases of) short-term investments, net
   
   
   
(25,200,000
)
Amortization (Accretion) of premiums and discounts, net
   
(7,956,720
)
 
(3,933,252
)
 
(1,716,217
)
(Increase) Decrease in:
                   
Receivable for dividends and interest
   
(648,087
)
 
687,381
   
672,193
 
Receivable for investments sold
   
15,277,217
   
(23,501,284
)
 
(40,831,571
)
Other assets
   
(7,155
)
 
(17,108
)
 
(18,419
)
Increase (Decrease) in:
                   
Payable for Auction Rate Preferred share dividends
   
(18,956
)
 
   
(13,176
)
Payable for investments purchased
   
(5,859,060
)
 
5,804,183
   
14,594,915
 
Payable for interest
   
122,016
   
   
327,624
 
Accrued management fees
   
(10,911
)
 
20,523
   
(6,108
)
Accrued other expenses
   
(8,153
)
 
26,545
   
(50,011
)
Net realized (gain) loss from investments
   
(5,578,402
)
 
(6,152,659
)
 
(1,617,428
)
Change in net unrealized (appreciation) depreciation of investments
   
17,440,480
   
14,731,426
   
8,746,437
 
Taxes paid on undistributed capital gains
   
(3,781
)
 
(244
)
 
(344
)
Net cash provided by (used in) operating activities
   
41,125,969
   
39,889,510
   
51,201,899
 
Cash Flows from Financing Activities:
                   
(Increase) Decrease in deferred offering costs
   
269,571
   
72,964
   
(1,921,295
)
Increase (Decrease) in:
                   
Cash overdraft
   
(1,211,715
)
 
   
 
Floating rate obligations
   
   
(8,401,650
)
 
(12,796,650
)
Payable for offering costs
   
116,259
   
(75,929
)
 
375,368
 
ARPS, at liquidation value
   
(120,075,000
)
 
   
(236,950,000
)
MTP Shares, at liquidation value
   
   
   
70,000,000
 
VMTP Shares, at liquidation value
   
120,400,000
   
   
169,200,000
 
Cash distributions paid to Common shareholders
   
(35,763,028
)
 
(28,214,577
)
 
(40,306,158
)
Net cash provided by (used in) financing activities
   
(36,263,913
)
 
(36,619,192
)
 
(52,398,735
)
Net Increase (Decrease) in Cash
   
4,862,056
   
3,270,318
   
(1,196,836
)
Cash at the beginning of period
   
   
143,248
   
2,868,068
 
Cash at the End of Period
 
$
4,862,056
 
$
3,413,566
 
$
1,671,232
 

Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $63,949, $59,744 and $64,704 for Dividend Advantage (NAD), Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF), respectively.

                     
     
Dividend
   
Dividend
   
Dividend
 
     
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NAD
)
 
(NXZ
)
 
(NZF
)
Cash paid for interest (excluding amortization of offering costs)
 
$
4,409,323
 
$
898,994
 
$
2,089,129
 

See accompanying notes to financial statements.

96
 
Nuveen Investments

 
 

 

   
Financial
   
Highlights

Nuveen Investments
 
97

 
 

 

   
Financial
   
Highlights
 
 
  Selected data for a Common share outstanding throughout each period:

     
 
  Investment Operations       Less Distributions                    
                       
Distributions
   
Distributions
                           
Discount
             
                       
from Net
   
from
                           
from
             
                       
Investment
   
Capital
         
Net
               
Common
             
     
Beginning
               
Income to
   
Gains to
         
Investment
   
Capital
         
Shares
   
Ending
       
     
Common
         
Net
   
Auction Rate
   
Auction Rate
         
Income to
   
Gains to
         
Repur-
   
Common
       
     
Share
   
Net
   
Realized/
   
Preferred
   
Preferred
         
Common
   
Common
         
chased
   
Share
   
Ending
 
     
Net Asset
   
Investment
   
Unrealized
   
Share-
   
Share-
         
Share-
   
Share-
         
and
   
Net Asset
   
Market
 
     
Value
   
Income
   
Gain (Loss
)
 
holders(a
)
 
holders
(a)
 
Total
   
holders
   
holders
   
Total
   
Retired
   
Value
   
Value
 
Performance Plus (NPP)
                                                   
Year Ended 10/31:
                                                           
2011
 
$
15.29
 
$
.97
 
$
(.32
)
$
(.01
)
$
$
.64
 
$
(.95
)
$
(.09
)
$
(1.04
)
$
 
$
14.89
 
$
14.36
 
2010
   
14.52
   
1.03
   
.70
   
(.03
)
 
 
1.70
   
(.92
)
 
(.01
)
 
(.93
)
 
   
15.29
   
15.00
 
2009
   
12.69
   
1.03
   
1.65
   
(.06
)
 
   
2.62
   
(.79
)
 
   
(.79
)
 
   
14.52
   
13.48
 
2008
   
15.22
   
1.02
   
(2.56
)
 
(.29
)
 
   
(1.83
)
 
(.70
)
 
   
(.70
)
 
   
12.69
   
11.50
 
2007
   
15.78
   
.99
   
(.47
)
 
(.27
)
 
(.01
)
 
.24
   
(.75
)
 
(.05
)
 
(.80
)
 
   
15.22
   
13.59
 
                                                                           
Municipal Advantage (NMA)
                                                 
Year Ended 10/31:
                                                       
2011
   
14.79
   
.93
   
(.27
)
 
   
   
.66
   
(1.00
)
 
(.08
)
 
(1.08
)
 
   
14.37
   
14.05
 
2010
   
14.08
   
1.01
   
.76
   
(.01
)
 
 
1.76
   
(.98
)
 
(.07
)
 
(1.05
)
 
   
14.79
   
14.92
 
2009
   
12.12
   
1.10
   
1.76
   
(.06
)
 
   
2.80
   
(.84
)
 
   
(.84
)
 
   
14.08
   
13.41
 
2008
   
15.20
   
1.08
   
(3.06
)
 
(.30
)
 
(.01
)
 
(2.29
)
 
(.77
)
 
(.02
)
 
(.79
)
 
   
12.12
   
11.41
 
2007
   
15.88
   
1.07
   
(.63
)
 
(.29
)
 
   
.15
   
(.83
)
 
   
(.83
)
 
   
15.20
   
13.95
 

(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
   
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

98
 
Nuveen Investments

 
 

 


                Ratios/Supplemental Data
                      Ratios to Average Net Assets        
 
Total Returns
          Applicable to Common Shares(c)(d)
 
     
                                   
                                   
       
Based
   
Ending
                   
       
on
   
Net
                   
 
Based
   
Common
   
Assets
                   
 
on
   
Share Net
   
Applicable
         
Net
   
Portfolio
 
 
Market
   
Asset
   
to Common
         
Investment
   
Turnover
 
 
Value
(b)  
Value
(b)
 
Shares (000
)
 
Expenses
(e)
 
Income (Loss
)
 
Rate
 
                                   
                                   
 
3.22
 
4.78
%
$
892,603
   
1.62
%
 
6.84
%
 
10
%
 
18.65
   
12.07
   
916,152
   
1.13
   
6.93
   
14
 
 
24.78
   
21.20
   
869,873
   
1.23
   
7.59
   
6
 
 
(10.71
 
(12.49
)
 
760,496
   
1.25
   
6.96
   
9
 
 
(4.97
 
1.53
   
912,066
   
1.16
   
6.38
   
6
 
                                   
                                   
 
1.90
   
5.05
   
626,616
   
2.01
   
6.76
   
14
 
 
19.58
   
12.90
   
642,364
   
1.66
   
7.04
   
16
 
 
25.70
   
23.89
   
608,813
   
1.31
   
8.51
   
9
 
 
(13.16
 
(15.65
)
 
523,602
   
1.38
   
7.50
   
13
 
 
(7.08
 
1.06
   
656,806
   
1.40
   
6.87
   
10
 

(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, VMTP Shares and/or VRDP Shares, where applicable.
(d)
Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VMTP Shares, VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate MuniFund Term Preferred Shares, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:

Performance Plus (NPP)
       
Year Ended 10/31:
       
2011
   
.56
%
2010
   
.04
 
2009
   
.05
 
2008
   
.08
 
2007
   
.02
 
         
Municipal Advantage (NMA)
       
Year Ended 10/31:
       
2011
   
.96
%
2010
   
.60
 
2009
   
.09
 
2008
   
.17
 
2007
   
.23
 

*
Rounds to less than $.01 per share.

See accompanying notes to financial statements.

Nuveen Investments
 
99

 
 

 


   
Financial
   
Highlights (continued)
     
  Selected data for a Common share outstanding throughout each period:

     
 
    Investment Operations     Less Distributions                    
                       
Distributions
   
Distributions
                           
Discount
             
                       
from Net
   
from
                           
from
             
                       
Investment
   
Capital
         
Net
               
Common
             
     
Beginning
               
Income to
   
Gains to
         
Investment
   
Capital
         
Shares
   
Ending
       
     
Common
         
Net
   
Auction Rate
   
Auction Rate
         
Income to
   
Gains to
         
Repur-
   
Common
       
     
Share
   
Net
   
Realized/
   
Preferred
   
Preferred
         
Common
   
Common
         
chased
   
Share
   
Ending
 
     
Net Asset
   
Investment
   
Unrealized
   
Share-
   
Share-
         
Share-
   
Share-
         
and
   
Net Asset
   
Market
 
     
Value
   
Income
   
Gain (Loss
)
 
holders(a
)
 
holders(a
)
 
Total
   
holders
   
holders
   
Total
   
Retired
   
Value
   
Value
 
Market Opportunity (NMO)
                                                   
Year Ended 10/31:
                                                   
2011
 
$
14.17
 
$
.88
 
$
(.48
)
$
—*
 
$
 
$
.40
 
$
(.97
)
$
 
$
(.97
)
$
 
$
13.60
 
$
13.18
 
2010
   
13.59
   
.99
   
.56
   
(.01
)
 
   
1.54
   
(.96
)
 
   
(.96
)
 
   
14.17
   
14.55
 
2009
   
12.23
   
1.10
   
1.13
   
(.06
)
 
   
2.17
   
(.81
)
 
   
(.81
)
 
   
13.59
   
13.32
 
2008
   
14.83
   
1.03
   
(2.59
)
 
(.31
)
 
   
(1.87
)
 
(.73
)
 
   
(.73
)
 
   
12.23
   
11.52
 
2007
   
15.41
   
1.04
   
(.56
)
 
(.30
)
 
   
.18
   
(.76
)
 
   
(.76
)
 
   
14.83
   
13.53
 
                                                                           
Dividend Advantage (NAD)
                                                   
Year Ended 10/31:
                                                   
2011
   
14.68
   
.92
   
(.29
)
 
(.01
)
 
   
.62
   
(.91
)
 
   
(.91
)
 
   
14.39
   
13.70
 
2010
   
13.89
   
1.00
   
.72
   
(.02
)
 
   
1.70
   
(.91
)
 
   
(.91
)
 
   
14.68
   
14.40
 
2009
   
11.77
   
1.07
   
1.93
   
(.05
)
 
   
2.95
   
(.83
)
 
   
(.83
)
 
   
13.89
   
12.89
 
2008
   
14.90
   
1.05
   
(3.14
)
 
(.27
)
 
   
(2.36
)
 
(.77
)
 
   
(.77
)
 
   
11.77
   
10.72
 
2007
   
15.54
   
1.04
   
(.60
)
 
(.27
)
 
   
.17
   
(.81
)
 
   
(.81
)
 
   
14.90
   
13.63
 

(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
   
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

100
 
Nuveen Investments

 
 

 

              Ratios/Supplemental Data
                    Ratios to Average Net Assets     Ratios to Average Net Assets        
                    Applicable to Common Shares     Applicable to Common Shares        
 
Total Returns
          Before Reimbursement(c)     After Reimbursement(c)(d)        
                                               
                                               
       
Based
   
Ending
                               
       
on
   
Net
                               
 
Based
   
Common
   
Assets
                               
 
on
   
Share Net
   
Applicable
         
Net
         
Net
   
Portfolio
 
 
Market
   
Asset
   
to Common
         
Investment
         
Investment
   
Turnover
 
 
Value
(b)  
Value
(b)
 
Shares (000
)
 
Expenses
(e)
 
Income (Loss
)
 
Expenses
(e)
 
Income (Loss
)
 
Rate
 
                                               
                                               
 
(2.33
)%   
3.40
%
$
622,815
   
2.10
%
 
6.74
%
 
N/A
   
N/A
   
14
%
 
17.03
   
11.71
   
648,017
   
1.70
   
7.17
   
N/A
   
N/A
   
26
 
 
23.67
   
18.30
   
619,319
   
1.32
   
8.58
   
N/A
   
N/A
   
10
 
 
(9.87
 
(13.07
)
 
557,346
   
1.36
   
7.33
   
N/A
   
N/A
   
8
 
 
(5.00
 
1.20
   
675,577
   
1.38
   
6.87
   
N/A
   
N/A
   
5
 
                                               
                                               
 
1.93
   
4.76
   
565,364
   
2.02
   
6.77
   
2.02
%
 
6.77
%
 
15
 
 
19.17
   
12.60
   
576,895
   
1.61
   
6.99
   
1.61
   
6.99
   
8
 
 
28.86
   
25.78
   
545,534
   
1.26
   
8.38
   
1.21
   
8.43
   
9
 
 
(16.46
 
(16.42
)
 
462,554
   
1.36
   
7.33
   
1.22
   
7.46
   
11
 
 
(5.96
 
1.10
   
585,496
   
1.24
   
6.60
   
1.03
   
6.81
   
11
 

(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares, VMTP Shares, and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable.  As of July 31, 2009, the Adviser is no longer reimbursing Dividend Advantage (NAD) for any fees and expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares, VMTP Shares, VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares, Variable Rate MuniFund Term Preferred Shares, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:

Market Opportunity (NMO)
       
Year Ended 10/31:
       
2011
   
.97
%
2010
   
.58
 
2009
   
.07
 
2008
   
.14
 
2007
   
.19
 
         
Dividend Advantage (NAD)
       
Year Ended 10/31:
       
2011
   
.94
%
2010
   
.54
 
2009
   
.09
 
2008
   
.21
 
2007
   
.11
 

N/A
Fund does not have a contractual reimbursement agreement with the Adviser.
*
Rounds to less than $.01 per share.

See accompanying notes to financial statements.

Nuveen Investments
 
101

 
 

 


   
Financial
   
Highlights (continued)
     
  Selected data for a Common share outstanding throughout each period:

            Investment Operations     Less Distributions                    
                       
Distributions
   
Distributions
                           
Discount
             
                       
from Net
   
from
                           
from
             
                       
Investment
   
Capital
         
Net
               
Common
             
     
Beginning
               
Income to
   
Gains to
         
Investment
   
Capital
         
Shares
   
Ending
       
     
Common
         
Net
   
Auction Rate
   
Auction Rate
         
Income to
   
Gains to
         
Repur-
   
Common
       
     
Share
   
Net
   
Realized/
   
Preferred
   
Preferred
         
Common
   
Common
         
chased
   
Share
   
Ending
 
     
Net Asset
   
Investment
   
Unrealized
   
Share-
   
Share-
         
Share-
   
Share-
         
and
   
Net Asset
   
Market
 
     
Value
   
Income
   
Gain (Loss
)
 
holders
(a)
 
holders
(a)
 
Total
   
holders
   
holders
   
Total
   
Retired
   
Value
   
Value
 
Dividend Advantage 2 (NXZ)
                                                   
Year Ended 10/31:
                                                   
2011
 
$
14.76
 
$
.99
 
$
(.29
)
$
 
$
 
$
.70
 
$
(.96
)
$
 
$
(.96
)
$
 
$
14.50
 
$
13.90
 
2010
   
14.45
   
1.02
   
.26
   
   
   
1.28
   
(.97
)
 
   
(.97
)
 
   
14.76
   
14.67
 
2009
   
12.71
   
1.04
   
1.59
   
   
   
2.63
   
(.89
)
 
   
(.89
)
 
   
14.45
   
14.14
 
2008
   
15.55
   
1.05
   
(2.81
)
 
(.20
)
 
   
(1.96
)
 
(.88
)
 
   
(.88
)
 
   
12.71
   
12.35
 
2007
   
16.02
   
1.13
   
(.43
)
 
(.27
)
 
   
.43
   
(.90
)
 
   
(.90
)
 
   
15.55
   
15.48
 
                                                                           
Dividend Advantage 3 (NZF)
                                                   
Year Ended 10/31:
                                                     
2011
   
14.74
   
.98
   
(.18
)
 
(.01
)
 
—*
   
.79
   
(.98
)
 
(.02
)
 
(1.00
)
 
   
14.53
   
14.17
 
2010
   
14.19
   
1.06
   
.52
   
(.02
)
 
—*
   
1.56
   
(.95
)
 
(.06
)
 
(1.01
)
 
   
14.74
   
14.58
 
2009
   
12.10
   
1.08
   
1.91
   
(.05
)
 
   
2.94
   
(.85
)
 
   
(.85
)
 
   
14.19
   
13.38
 
2008
   
15.03
   
1.06
   
(2.95
)
 
(.27
)
 
   
(2.16
)
 
(.77
)
 
   
(.77
)
 
   
12.10
   
10.72
 
2007
   
15.54
   
1.07
   
(.44
)
 
(.27
)
 
(.01
)
 
.35
   
(.84
)
 
(.02
)
 
(.86
)
 
   
15.03
   
13.85
 

(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
   
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

102
 
Nuveen Investments

 
 

 


              Ratios/Supplemental Data
                  Ratios to Average Net Assets   Ratios to Average Net Assets        
                  Applicable to Common Shares   Applicable to Common Shares        
 
Total Returns
        Before Reimbursement(c)   After Reimbursement(c)(d)        
                                               
       
Based
   
Ending
                               
       
on
   
Net
                               
 
Based
   
Common
   
Assets
                               
 
on
   
Share Net
   
Applicable
         
Net
         
Net
   
Portfolio
 
 
Market
   
Asset
   
to Common
         
Investment
         
Investment
   
Turnover
 
 
Value
(b)  
Value
(b)
 
Shares (000
)
 
Expenses
(e)
 
Income (Loss
)
 
Expenses
(e)
 
Income (Loss
)
 
Rate
 
                                               
                                               
 
1.70
 
5.24
%
$
427,085
   
1.78
%
 
7.08
%
 
1.75
%
 
7.11
%
 
40
%
 
10.89
   
9.12
   
434,764
   
1.79
   
6.85
   
1.68
   
6.95
   
5
 
 
22.63
   
21.41
   
425,253
   
1.91
   
7.59
   
1.73
   
7.77
   
2
 
 
(15.21
 
(13.23
)
 
373,940
   
1.71
   
6.82
   
1.45
   
7.08
   
10
 
 
(.78
 
2.76
   
456,992
   
1.25
   
6.83
   
.93
   
7.16
   
5
 
                                               
                                               
 
4.59
   
5.83
   
587,047
   
1.53
   
6.93
   
1.46
   
7.00
   
30
 
 
17.04
   
11.41
   
595,413
   
1.17
   
7.21
   
1.02
   
7.36
   
7
 
 
33.89
   
25.08
   
573,088
   
1.26
   
7.98
   
1.04
   
8.20
   
2
 
 
(17.85
 
(14.99
)
 
488,561
   
1.34
   
7.08
   
1.04
   
7.37
   
7
 
 
(7.72
 
2.31
   
606,908
   
1.32
   
6.65
   
.94
   
7.02
   
14
 

(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares, VMTP Shares, and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of March 31, 2011, the Adviser is no longer reimbursing Dividend Advantage 2 (NXZ) for any fees and expenses. As of September 30, 2011, the Adviser is no longer reimbursing Dividend Advantage 3 (NZF) for any fees and expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares, VMTP Shares, VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares, Variable Rate MuniFund Term Preferred Shares, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:

Dividend Advantage 2 (NXZ)
       
Year Ended 10/31:
       
2011
   
.78
%
2010
   
.78
 
2009
   
.83
 
2008
   
.49
 
2007
   
.14
 
         
Dividend Advantage 3 (NZF)
       
Year Ended 10/31:
       
2011
   
.48
%
2010
   
.09
 
2009
   
.11
 
2008
   
.19
 
2007
   
.19
 

*
Rounds to less than $.01 per share.

See accompanying notes to financial statements.

Nuveen Investments
 
103

 
 

 

   
Financial
   
Highlights (continued)

      ARPS at       VMTP Shares     VRDP Shares  
      the End of Period     at the End of Period     at the End of Period  
     
Aggregate
               
Aggregate
               
Aggregate
             
     
Amount
   
Liquidation
   
Asset
   
Amount
   
Liquidation
   
Asset
   
Amount
   
Liquidation
   
Asset
 
     
Outstanding
   
Value
   
Coverage
   
Outstanding
   
Value
   
Coverage
   
Outstanding
   
Value
   
Coverage
 
     
(000
)
 
Per Share
   
Per Share
   
(000
)
 
Per Share
   
Per Share
   
(000
)
 
Per Share
   
Per Share
 
Performance Plus (NPP)
                                   
Year Ended 10/31:
                                       
2011
 
$
 
$
 
$
 
$
421,700
 
$
100,000
 
$
311,668
 
$
 
$
 
$
 
2010
   
419,900
   
25,000
   
79,546
   
   
   
   
   
   
 
2009
   
419,900
   
25,000
   
76,790
   
   
   
   
   
   
 
2008
   
439,650
   
25,000
   
68,244
   
   
   
   
   
   
 
2007
   
479,000
   
25,000
   
72,603
   
   
   
   
   
   
 
                                                         
Municipal Advantage (NMA)
                                     
Year Ended 10/31:
                                     
2011
   
   
   
   
   
   
   
296,800
   
100,000
   
311,124
 
2010
   
   
   
   
   
   
   
296,800
   
100,000
   
316,430
 
2009
   
293,200
   
25,000
   
76,911
   
   
   
   
   
   
 
2008
   
341,650
   
25,000
   
63,314
   
   
   
   
   
   
 
2007
   
358,000
   
25,000
   
70,866
   
   
   
   
   
   
 

See accompanying notes to financial statements.

104
 
Nuveen Investments

 
 

 
 
 
     
ARPS
at the End of Period
   
MTP Shares
at the End of Period (f)
   
VMTP Shares
at the End of Period
   
VRDP Shares
at the End of Period
     
ARPS,
MTP
and/or
VMTP
Shares
at the
End
of Period
 
        Aggregate Amount Outstanding (000)       Liquidation Value Per Share       Asset Coverage Per Share       Aggregate Amount Outstanding (000)       Liquidation Value Per Share       Asset Coverage Per Share       Aggregate Amount Outstanding (000)       Liquidation Value Per Share       Asset Coverage Per Share       Aggregate Amount Outstanding (000)       Liquidation Value Per Share       Asset Coverage Per Share     Asset Coverage
Per $1 Liquidation Preference
 
Market Opportunity (NMO)
                                                     
Year Ended 10/31:
                                                     
2011
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
$
350,900
 
$
100,000
 
$
277,491
 
$
 
2010
   
   
   
   
   
   
   
   
   
   
350,900
   
100,000
   
284,673
   
 
2009
   
346,675
   
25,000
   
69,661
   
   
   
   
   
   
   
   
   
   
 
2008
   
361,675
   
25,000
   
63,525
   
   
   
   
   
   
   
   
   
   
 
2007
   
380,000
   
25,000
   
69,446
   
   
   
   
   
   
   
   
   
   
 
                                                                                 
Dividend Advantage (NAD)
                                                     
Year Ended 10/31:
                                                           
2011
   
   
   
   
144,300
   
10.00
   
31.36
   
120,400
   
100,000
   
313,587
   
   
   
   
3.14
 
2010
   
120,075
   
25,000
   
79,553
   
144,300
   
10.00
   
31.82
   
   
   
   
   
   
   
3.18
 
2009
   
261,800
   
25,000
   
77,095
   
   
   
   
   
   
   
   
   
   
 
2008
   
266,800
   
25,000
   
68,343
   
   
   
   
   
   
   
   
   
   
 
2007
   
295,000
   
25,000
   
74,618
   
   
   
   
   
   
   
   
   
   
 

(f)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:

         
Ending
   
Average
 
         
Market Value
   
Market Value
 
   
Series
   
Per Share
   
Per Share
 
Dividend Advantage (NAD)
                 
Year Ended 10/31:
                 
2011
 
2015
    $ 10.06     $ 10.05  
2010
 
2015
      10.10      
10.10^
 
2009
                 
2008
                 
2007
                 

^
For the period March 16, 2010 (issuance date of shares) through October 31, 2010.

See accompanying notes to financial statements.

Nuveen Investments
 
105

 
 

 


   
Financial
   
Highlights (continued)

 
                                                                                 
   
ARPS
at the End of Period
 
MTP Shares
at the End of Period (f)
 
VMTP Shares
at the End of Period
 
VRDP Shares
at the End of Period
 
MTP
and/or
VMTP
Shares
at the
End
of Period
 
   
Aggregate
Amount
Outstanding
(000)
 
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000)
 
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000)
 
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000)
 
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Asset
Coverage
Per $1
Liquidation
Preference
 
Dividend Advantage 2 (NXZ)
                                                         
Year Ended 10/31:
                                                                 
2011
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
$
 
$
196,000
 
$
100,000
 
$
317,900
 
$
 
2010
   
   
   
   
   
   
   
   
   
   
196,000
   
100,000
   
321,819
   
 
2009
   
   
   
   
   
   
   
   
   
   
196,000
   
100,000
   
316,966
   
 
2008
   
   
   
   
   
   
   
   
   
   
196,000
   
100,000
   
290,785
   
 
2007
   
222,000
   
25,000
   
76,463
   
   
   
   
   
   
   
   
   
   
 
                                                                                 
Dividend Advantage 3 (NZF)
                                                     
Year Ended 10/31:
                                                           
2011
   
   
   
   
70,000
   
10.00
   
34.54
   
169,200
   
100,000
   
345,421
   
   
   
   
3.45
 
2010
   
236,950
   
25,000
   
87,821
   
   
   
   
   
   
   
   
   
   
 
2009
   
236,950
   
25,000
   
85,465
   
   
   
   
   
   
   
   
   
   
 
2008
   
270,775
   
25,000
   
70,108
   
   
   
   
   
   
   
   
   
   
 
2007
   
312,000
   
25,000
   
73,630
   
   
   
   
   
   
   
   
   
   
 

(f)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:

   
Series
 
Ending
Market Value
Per Share
 
Average
Market Value
Per Share
 
Dividend Advantage 3 (NZF)
                   
Year Ended 10/31:
                   
2011
   
2016
 
$
10.14
 
$
10.05
2010
   
   
   
 
2009
   
   
   
 
2008
   
   
   
 
2007
   
   
   
 

^
For the period December 20, 2010 (issuance date of shares) through October 31, 2011.

See accompanying notes to financial statements.

106
 
Nuveen Investments
 
 
 

 

 
   
Notes to
   
Financial Statements
 
1. General Information and Significant Accounting Policies
 
General Information
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) (each a “Fund” and each a “Fund” and collectively, the “Funds”). Performance Plus (NPP), Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York Stock Exchange (“NYSE”) while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, management investment companies.
 
Effective January 1, 2011, the Funds’ adviser, Nuveen Asset Management, a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, Inc. (the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the Funds’ sub-adviser, and the Funds’ portfolio managers became employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the Funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the Funds from each Fund’s management fee.
 
Each Fund seeks to provide current income exempt from regular federal income tax by investing primarily in a portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories.
 
Significant Accounting Policies
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 (“U.S. GAAP”).
 
Investment Valuation
Prices of municipal bonds are provided by a pricing service approved by the Funds’ Board of Directors/Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
 
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of these securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant.
 
Nuveen Investments
 
107

 
 

 


   
Notes to
   
Financial Statements (continued)
 
These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors/Trustees or its designee.
 
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
 
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. 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 October 31, 2011, Performance Plus (NPP), Municipal Advantage (NMA), Market Opportunity (NMO), and Dividend Advantage 3 (NZF) had outstanding when-issued/delayed delivery commitments of $1,427,635, $2,557,027, $1,427,635, and $11,959,084, respectively. There were no such outstanding purchase commitments in either of the other Funds.
 
Investment Income
Dividend income is recorded on the ex-dividend date. Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
 
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders.
 
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
 
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Dividends and Distributions to Common Shareholders
 Dividends from net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
 
Auction Rate Preferred Shares
Each Fund is authorized to issue Auction Rate Preferred Shares (“ARPS”). As of October 31, 2010, Municipal Advantage (NMA) and Market Opportunity (NMO) redeemed all of their outstanding ARPS at liquidation value. As of October 31, 2008, Dividend Advantage 2 (NXZ) redeemed all of its outstanding ARPS at liquidation value. During the fiscal year ended October 31, 2011, Performance Plus (NPP), Dividend Advantage (NAD) and Dividend Advantage 3 (NZF) had issued and outstanding ARPS, $25,0000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund’s ARPS were issued in one or more Series. The dividend rate paid by the Funds on each Series was determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and was payable at the end of each rate period.
 
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions “failed to clear,’’ and that many Auction Rate Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Auction Rate Preferred shareholders unable to sell their shares received distributions at the “maximum rate’’
 

108
 
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applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of October 31, 2011, each Fund redeemed all of their outstanding ARPS, at liquidation value, as follows:
 
     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
ARPS redeemed, at liquidation value
 
$
479,000,000
 
$
358,000,000
 
$
380,000,000
 
$
295,000,000
 
$
222,000,000
 
$
312,000,000
 
 
During the fiscal year ended October 31, 2010, lawsuits pursuing claims made in a demand letter alleging that Dividend Advantage (NAD), Dividend Advantage 2 (NXZ) and Dividend Advantage 3’s (NZF) Board of Trustees breached their fiduciary duties related to the redemption at par of their ARPS had been filed on behalf of shareholders of the Funds, against the Adviser, the Nuveen holding company, the majority owner of the holding company, the lone interested trustee, and current and former officers of the Funds. Nuveen and the other named defendants filed a motion to dismiss the lawsuits and on December 16, 2011, the court granted that motion dismissing the lawsuits with prejudice.
 
During the current reporting period, Nuveen Investments, LLC, known as Nuveen Securities, LLC, effective April 30, 2011, (“Nuveen Securities”) entered into a settlement with the Financial Industry Regulatory Authority (“FINRA”) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities neither admitted to nor denied FINRA’s allegations. Nuveen Securities is the broker-dealer subsidiary of Nuveen.
 
The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities were false and misleading. Nuveen Securities agreed to a censure and the payment of a $3 million fine.
 
MuniFund Term Preferred Shares
The following Funds have issued and outstanding MuniFund Term Preferred (“MTP”) Shares, with a $10 stated (“par”) value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund’s outstanding ARPS. Each Fund’s MTP Shares are issued in one Series. Dividends on MTP shares, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of October 31, 2011, the number of MTP Shares outstanding, annual interest rate and the NYSE “ticker” symbol for each Fund are as follows:
 
   
Dividend Advantage (NAD)
 
Dividend Advantage 3 (NZF)
 
       
Annual
         
Annual
     
   
Shares
 
Interest
 
NYSE
 
Shares
 
Interest
 
NYSE
 
   
Outstanding
 
Rate
 
Ticker
 
Outstanding
 
Rate
 
Ticker
 
Series:
                                     
2015
   
14,430,000
   
2.70
%
 
NAD Pr C
   
   
   
 
2016
   
   
   
   
7,000,000
   
2.80
%
 
NZF Pr C
 
 
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares will also be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s MTP Shares are as follows:
 
     
Dividend
   
Dividend
 
     
Advantage
   
Advantage 3
 
     
(NAD
)
 
(NZF
)
     
Series 2015
   
Series 2016
 
Term Redemption Date
   
April 1, 2015
   
January 1, 2016
 
Optional Redemption Date
   
April 1, 2011
   
January 1, 2012
 
Premium Expiration Date
   
March 31, 2012
   
December 31, 2012
 
 
The average liquidation value of MTP Shares outstanding for each Fund during the fiscal year ended October 31, 2011, was as follows:
               
     
Dividend
   
Dividend
 
     
Advantage
   
Advantage 3
 
     
(NAD
)
 
(NZF
)*
Average liquidation value of MTP Shares outstanding
 
$
144,300,000
 
$
69,873,059
 

*
For the period December 20, 2010 (issuance date of shares) through October 31, 2011.

Nuveen Investments
 
109

 
 

 

   
Notes to
   
Financial Statements (continued)
 
For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
Net amounts earned by Nuveen as the underwriter of each Fund’s MTP Share offering was recorded as a reduction of offering costs recognized by the Funds. For the fiscal year ended October 31, 2011, the amounts earned by Nuveen were as follows:
               
         
Dividend
   
Dividend
 
     
Advantage
   
Advantage 3
 
     
(NAD
)
 
(NZF
)*
Net amounts earned by Nuveen
 
$
 
$
6,328
 

*
For the period December 20, 2010 (issuance date of shares) through October 31, 2011.
 
Variable Rate MuniFund Term Preferred Shares
The following funds have issued and outstanding Variable Rate MuniFund Term Preferred (“VMTP”) Shares, with $100,000 liquidation value per share. Performance Plus (NPP), Dividend Advantage (NAD) and Dividend Advantage 3 (NZF) issued their VMTP Shares in a privately negotiated offering in February 2011, July 2011 and September 2011, respectively. Proceeds from the issuance of VMTP Shares, net of offering expenses, were used to redeem each Fund’s outstanding ARPS. The Fund’s VMTP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. As of October 31, 2011, the number of VMTP Shares outstanding at liquidation value for each Fund are as follows:
                     
     
Performance
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Advantage 3
 
     
(NPP
)
 
(NAD
)
 
(NZF
)
Series 2014
 
$
421,700,000
 
$
120,400,000
 
$
169,200,000
 
 
Each Fund is obligated to redeem its VMTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances . The VMTP Shares are subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. Each Fund may be obligated to redeem certain of the VMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s VMTP Shares as follows:
 
     
Performance
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Advantage 3
 
     
(NPP
)
 
(NAD
)
 
(NZF
)
Term Redemption Date
   
March 1, 2014
   
August 1, 2014
   
October 1, 2014
 
Optional Redemption Date
   
March 1, 2012
   
August 1, 2012
   
October 1, 2012
 
Premium Expiration Date
   
February 29, 2012
   
July 31, 2012
   
September 30, 2012
 
 
The average liquidation value of VMTP Shares outstanding and average annualized dividend rate of VMTP Shares for each Fund during the fiscal year ended October 31, 2011, were as follows:
                     
     
Performance
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Advantage 3
 
     
(NPP
)*
 
(NAD
)**
 
(NZF
)***
Average liquidation Value of VMTP Shares outstanding
 
$
421,700,000
 
$
120,400,000
 
$
169,200,000
 
Average annualized dividend rate
   
1.43
%
 
1.21
%
 
1.15
%

*
For the period February 24, 2011 (issuance date of shares) through October 31, 2011.
**
For the period July 28, 2011 (issuance date of shares) through October 31, 2011.
***
For the period September 8, 2011 (issuance date of shares) through October 31, 2011.
 
Dividends on the VMTP Shares (which are treated as interest payments for financial reporting purposes) are set weekly. For financial reporting purposes only, the liquidation value of VMTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VMTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on VMTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
Variable Rate Demand Preferred Shares
The following funds have issued and outstanding Variable Rate Demand Preferred (“VRDP”) Shares, with a $100,000 liquidation value per share. Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage 2 (NXZ) issued their VRDP Shares in a privately negotiated offering
 
110
 
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during March 2010, March 2010 and August 2008, respectively. Concurrent with renewing agreements with the liquidity provider for its VRDP Shares in June 2010, Dividend Advantage 2 (NXZ) exchanged all of its 1,960 Series 1 VRDP Shares for 1,960 Series 2 VRDP Shares. The principal difference in terms between Series 1 and Series 2 VRDP Shares in Dividend Advantage 2 (NXZ) is the requirement that the Fund redeem VRDP Shares owned by the liquidity provider if the VRDP Shares have been owned by the liquidity provider through six months of continuous, unsuccessful remarketing. Proceeds of each Fund’s offering were used to redeem all, or a portion of, each Fund’s outstanding ARPS. The VRDP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. As of October 31, 2011, the number of VRDP Shares outstanding and maturity date for each Fund are as follows:
 
     
Municipal
   
Market
   
Dividend
 
     
Advantage
   
Opportunity
   
Advantage 2
 
     
(NMA
)
 
(NMO
)
 
(NXZ
)
Series
   
1
   
1
   
2
 
Shares outstanding
   
2,968
   
3,509
   
1,960
 
Maturity
   
March 1, 2040
   
March 1, 2040
   
August 1, 2040
 
 
VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom each Fund has contracted in the event that purchase orders for VRDP Shares in a remarketing are not sufficient in number to be matched with the sale orders in that remarketing. Each Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing.
 
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation value. If remarketings for VRDP Shares are continuously unsuccessful for six months, the maximum rate is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the VRDP Shares.
 
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of each Fund. Each Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends.
 
The average liquidation value outstanding and annualized dividend rate of VRDP Shares for each Fund during fiscal year ended October 31, 2011, were as follows:
 
     
Municipal
   
Market
   
Dividend
 
     
Advantage
   
Opportunity
   
Advantage 2
 
     
(NMA
)
 
(NMO
)
 
(NXZ
)
Average liquidation value outstanding
 
$
296,800,000
 
$
350,900,000
 
$
196,000,000
 
Annualized dividend rate
   
0.40
%
 
0.41
%
 
0.37
%
 
For financial reporting purposes only, the liquidation value of VRDP Shares is recognized as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider as well as a remarketing fee, which are recognized as components of “Fees on VRDP Shares” on the Statement of Operations.
 
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
 
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances,
 
Nuveen Investments
 
111

 
 

 

   
Notes to
   
Financial Statements (continued)
 
a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
During the fiscal year ended October 31, 2011, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
 
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities. At
 
October 31, 2011, each Fund’s maximum exposure to externally-deposited Recourse Trusts was as follows:
                                       
     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Maximum exposure to Recourse Trusts
 
$
18,750,000
 
$
11,250,000
 
$
7,500,000
 
$
11,250,000
 
$
11,250,000
 
$
 
 
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended October 31, 2011, were as follows:
                                       
     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Average floating rate obligations outstanding
 
$
41,089,315
 
$
57,843,402
 
$
43,530,000
 
$
51,605,000
 
$
26,498,904
 
$
62,801,342
 
Average annual interest rate and fees
   
0.69
%
 
0.58
%
 
0.56
%
 
0.49
%
 
0.65
%
 
0.66
%
 
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including foreign currency forwards, futures, options and swap contracts. Although each Fund is authorized to invest in such derivative instruments, and may do so in the future, they did not make any such investments during the fiscal year ended October 31, 2011.
 
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
 
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount.
 
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
 
112
 
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Offering Costs
Costs incurred by Dividend Advantage (NAD) and Dividend Advantage 3 (NZF) in connection with their offerings of MTP Shares ($2,559,500 and $1,435,000, respectively), were recorded as deferred charges, which are being amortized over the life of the shares. Costs incurred by Performance Plus (NPP), Dividend Advantage (NAD) and Dividend Advantage 3 (NZF) in connection with their offerings of VMTP Shares ($1,780,000, $260,000 and $770,000, respectively), were recorded as deferred charges, which are being amortized over the life of the shares. Costs incurred by Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage 2 (NXZ) in connection with their offerings of VRDP Shares ($2,134,000, $4,214,000 and $2,270,000, respectively), were recorded as deferred charges, which are being amortized over the life of the shares. Each Fund’s amortized deferred charges are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
 
Indemnifications
Under the Funds’ organizational documents, their officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
 
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.
 
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
 
  Level 1 –
 Quoted prices in active markets for identical securities.
  Level 2 –
 Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
  Level 3 –
 Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
                           
Performance Plus (NPP)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
1,321,271,982
 
$
 
$
1,321,271,982
 
                           
Municipal Advantage (NMA)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
936,052,529
 
$
111,150
 
$
936,163,679
 
                           
Market Opportunity (NMO)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
985,313,481
 
$
 
$
985,313,481
 

Nuveen Investments
 
113

 
 

 

   
Notes to
   
Financial Statements (continued)

Dividend Advantage (NAD)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
860,539,202
 
$
111,150
 
$
860,650,352
 
Investment Companies
   
559,780
   
   
   
559,780
 
Total
 
$
559,780
 
$
860,539,202
 
$
111,150
 
$
861,210,132
 
                           
Dividend Advantage 2 (NXZ)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
601,940,274
 
$
 
$
601,940,274
 
                           
Dividend Advantage 3 (NZF)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
812,066,316
 
$
266,760
 
$
812,333,076
 
Investment Companies
   
3,494,628
   
   
   
3,494,628
 
Short-Term Investments
   
   
25,200,000
   
   
25,200,000
 
Total
 
$
3,494,628
 
$
837,266,316
 
$
266,760
 
$
841,027,704
 
 
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
                           
     
Municipal
   
Dividend
   
Dividend
   
Dividend
 
     
Advantage
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NMA
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
     
Level 3
   
Level 3
   
Level 3
   
Level 3
 
     
Municipal Bonds
   
Municipal Bonds
   
Municipal Bonds
   
Municipal Bonds
 
Balance at the beginning of year
 
$
462,475
 
$
78,062
 
$
2,333,250
 
$
187,349
 
Gains (losses):
                         
Net realized gains (losses)
   
6,799
   
6,799
   
   
(17,141
)
Net change in unrealized appreciation (depreciation)
   
(106,276
)
 
26,289
   
(804,671
)
 
96,552
 
Purchases at cost
   
   
   
   
 
Sales at proceeds
   
(79,510
)
 
   
(482,600
)
 
 
Net discounts (premiums)
   
   
   
49
   
 
Transfers in to
   
   
   
   
 
Transfers out of
   
(172,338
)
 
   
(1,046,028
)
 
 
Balance at the end of year
 
$
111,150
 
$
111,150
 
$
 
$
266,760
 
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of October 31, 2011
 
$
26,289
 
$
26,289
 
$
 
$
96,552
 
 
During the fiscal year ended October 31, 2011, the Funds recognized no significant transfers to or from Level 1 or Level 2. Transfers in and/or out of Level 3 are shown using end of period values.
 
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended October 31, 2011.
 
4. Fund Shares
Common Shares
Since the inception of the Funds’ repurchase programs, the Funds have not repurchased any of their outstanding Common shares.
 
Transactions in Common shares were as follows:
   
Performance Plus (NPP)
 
Municipal Advantage (NMA)
 
Market Opportunity (NMO)
 
   
Year
 
Year
 
Year
 
Year
 
Year
 
Year
 
   
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
Common shares issued to shareholders due to reinvestment of distributions
   
19,498
   
18,891
   
153,403
   
202,701
   
80,513
   
170,873
 
 

114
 
Nuveen Investments

 
 

 

   
Dividend
Advantage (NAD)
 
Dividend
Advantage 2 (NXZ)
 
Dividend
Advantage 3 (NZF)
 
   
Year
 
Year
 
Year
 
Year
 
Year
 
Year
 
   
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
Common shares issued to shareholders due to reinvestment of distributions
   
4,564
   
4,490
   
4,192
   
21,264
   
4,537
   
9,310
 
 
Preferred Shares
Transactions in ARPS were as follows:
 
 
   
Performance Plus (NPP)
 
Municipal Advantage (NMA)
 
    Year
Ended
10/31/11
   Year
Ended
10/31/10
   Year
Ended
10/31/11
   Year
Ended
10/31/10
 
    Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount  
ARPS redeemed:
                                                 
Series M
   
3,507
 
$
87,675,000
   
 
$
   
N/A
   
N/A
   
2,457
 
$
61,425,000
 
Series T
   
3,506
   
87,650,000
   
   
   
N/A
   
N/A
   
2,457
   
61,425,000
 
Series W
   
3,505
   
87,625,000
   
   
   
N/A
   
N/A
   
2,456
   
61,400,000
 
Series TH
   
2,770
   
69,250,000
   
   
   
N/A
   
N/A
   
1,901
   
47,525,000
 
Series F
   
3,508
   
87,700,000
   
   
   
N/A
   
N/A
   
2,457
   
61,425,000
 
Total
   
16,796
 
$
419,900,000
   
 
$
   
N/A
   
N/A
   
11,728
 
$
293,200,000
 

 
    Market Opportunity (NMO)   Dividend Advantage (NAD)  
    Year
Ended
10/31/11
  Year
Ended
10/31/10
  Year
Ended
10/31/11
  Year
Ended
10/31/10
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
ARPS redeemed:
                                                 
Series M
   
N/A
   
N/A
   
3,649
 
$
91,225,000
   
1,628
 
$
40,700,000
   
1,922
 
$
48,050,000
 
Series T
   
N/A
   
N/A
   
3,648
   
91,200,000
   
1,628
   
40,700,000
   
1,921
   
48,025,000
 
Series W
   
N/A
   
N/A
   
2,920
   
73,000,000
   
   
   
   
 
Series TH
   
N/A
   
N/A
   
   
   
1,547
   
38,675,000
   
1,826
   
45,650,000
 
Series F
   
N/A
   
N/A
   
3,650
   
91,250,000
   
   
   
   
 
Total
   
N/A
   
N/A
   
13,867
 
$
346,675,000
   
4,803
 
$
120,075,000
   
5,669
 
$
141,725,000
 

   
Dividend Advantage 3 (NZF)
 
   
Year
 
Year
 
   
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
     
Shares
   
Amount
   
Shares
   
Amount
 
ARPS redeemed:
                         
Series W
   
3,159
 
$
78,975,000
   
 
$
 
Series TH
   
3,159
   
78,975,000
   
   
 
Series F
   
3,160
   
79,000,000
   
   
 
Total
   
9,478
 
$
236,950,000
   
 
$
 
N/A – As of October 31, 2010, the Fund redeemed all of its outstanding ARPS at liquidation value.
 
Nuveen Investments
 
115

 
 

 


   
Notes to
   
Financial Statements (continued)
 
Transactions in MTP Shares were as follows:
 
   
Dividend Advantage (NAD)
 
Dividend Advantage 3 (NZF)
 
   
Year
 
Year
 
Year
 
Year
 
   
Ended
 
Ended
 
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
MTP Shares issued:
                                                 
Series 2015
   
 
$
   
14,430,000
 
$
144,300,000
 
 
 
$
 
 
 
$
 
Series 2016
   
   
   
   
   
7,000,000
   
70,000,000
   
   
 
Total
   
 
$
   
14,430,000
 
$
144,300,000
 
 
7,000,000
 
$
70,000,000
   
 
$
 

Transactions in VMTP Shares were as follows:

   
Performance Plus (NPP)
 
   
Year
 
Year
 
   
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
     
Shares
   
Amount
   
Shares
   
Amount
 
VMTP Shares issued:
                         
Series 2014
   
4,217
 
$
421,700,000
   
 
$
 

   
Dividend Advantage (NAD)
 
Dividend Advantage 3 (NZF)
 
   
Year
 
Year
 
Year
 
Year
 
   
Ended
 
Ended
 
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
VMTP Shares issued:
                                                 
Series 2014
   
1,204
 
$
120,400,000
   
 
$
   
1,692
 
$
169,200,000
   
 
$
 
 
Transactions in VRDP Shares were as follows:
 
   
Municipal Advantage (NMA)
 
Market Opportunity (NMO)
 
   
Year
 
Year
 
Year
 
Year
 
   
Ended
 
Ended
 
Ended
 
Ended
 
   
10/31/11
 
10/31/10
 
10/31/11
 
10/31/10
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
VRDP Shares issued:
                                                 
Series 1
   
 
$
   
2,968
 
$
296,800,000
   
 
$
   
3,509
 
$
350,900,000
 
 
During the fiscal year ended October 31, 2010, Dividend Advantage 2 (NXZ) completed a private exchange offer in which all of its 1,960 Series 1 VRDP Shares were exchanged for 1,960 Series 2 VRDP Shares.
 
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments, where applicable) during the fiscal year ended October 31, 2011, were as follows:
 
     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Purchases
 
$
125,871,204
 
$
134,828,212
 
$
153,734,830
 
$
128,568,854
 
$
243,875,221
 
$
250,046,891
 
Sales and maturities
   
160,856,247
   
178,925,746
   
139,793,839
   
132,702,951
   
275,555,510
   
314,415,649
 

116
 
Nuveen Investments

 
 

 
 
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
 
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
                                       
     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Cost of investments
 
$
1,241,560,172
 
$
885,106,608
 
$
955,318,294
 
$
805,735,734
 
$
585,874,967
 
$
783,495,786
 
Gross unrealized:
                                     
Appreciation
 
$
79,025,537
 
$
41,305,101
 
$
38,689,866
 
$
46,371,204
 
$
29,165,729
 
$
30,153,912
 
Depreciation
   
(39,328,366
)
 
(36,761,064
)
 
(52,225,707
)
 
(42,501,529
)
 
(31,367,561
)
 
(28,175,367
)
Net unrealized appreciation (depreciation) of investments
 
$
39,697,171
 
$
4,544,037
 
$
(13,535,841
)
$
3,869,675
 
$
(2,201,832
)
$
1,978,545
 
 
Permanent differences, primarily due to federal taxes paid, taxable market discount, non-deductible offering costs, and distribution character reclassifications, resulted in reclassifications among the Funds’ components of Common share net assets at October 31, 2011, the Funds’ tax year end, as follows:
                                       
   
Performance
 
Municipal
 
Market
 
Dividend
 
Dividend
 
Dividend
 
   
Plus
 
Advantage
 
Opportunity
 
Advantage
 
Advantage 2
 
Advantage 3
 
   
(NPP
)
(NMA
)
(NMO
)
(NAD
)
(NXZ
)
(NZF
)
Paid-in surplus
 
$
(401,701
)
$
(158,587
)
$
(116,246
)
$
(508,259
)
$
(72,722
)
$
(276,739
)
Undistributed (Over-distribution of) net investment income
   
115,644
   
33,150
   
84,702
   
180,996
   
41,005
   
242,350
 
Accumulated net realized gain (loss)
   
286,057
   
125,437
   
31,544
   
327,263
   
31,717
   
34,389
 
 
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at October 31, 2011, the Funds’ 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 *
 
$
21,299,788
 
$
8,659,106
 
$
8,179,853
 
$
12,307,116
 
$
7,437,168
 
$
12,793,543
 
Undistributed net ordinary income **
   
14,771
   
1,375,267
   
47,871
   
273,949
   
135,183
   
24,938
 
Undistributed net long-term capital gains
   
   
6,010,671
   
   
1,862,934
   
5,456,117
   
1,651,370
 
 
*
Undistributed net tax-exempt income (on a tax basis has not been reduced for the dividend declared on October 3, 2011, paid on November 1, 2011.)
**
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’ tax years ended October 31, 2011 and October 31, 2010, 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
 
2011
   
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Distributions from net tax-exempt income ***
 
$
60,810,670
 
$
44,257,385
 
$
46,042,502
 
$
40,333,683
 
$
29,009,098
 
$
42,015,540
 
Distributions from net ordinary income **
   
498,412
   
391,525
   
   
   
   
 
Distributions from net long-term capital gains ****
   
5,536,530
   
3,406,265
   
   
   
   
639,625
 
                                       
     
Performance
   
Municipal
   
Market
   
Dividend
   
Dividend
   
Dividend
 
     
Plus
   
Advantage
   
Opportunity
   
Advantage
   
Advantage 2
   
Advantage 3
 
2010
   
(NPP
)
 
(NMA
)
 
(NMO
)
 
(NAD
)
 
(NXZ
)
 
(NZF
)
Distributions from net tax-exempt income
 
$
56,430,144
 
$
43,084,415
 
$
45,084,665
 
$
38,498,093
 
$
28,872,454
 
$
39,033,313
 
Distributions from net ordinary income **
   
23,738
   
63,961
   
   
   
409,165
   
830,966
 
Distributions from net long-term capital gains
   
863,865
   
3,011,399
   
   
   
   
1,901,758
 
 
**
Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
***
The Funds hereby designate these amounts paid during the fiscal year ended October 31, 2011, as Exempt Interest Dividends.
****
The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852 (b) (3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2011.

Nuveen Investments
 
117

 
 

 


   
Notes to
   
Financial Statements (continued)
 
At October 31, 2011, the Funds’ 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:
               
     
Performance
   
Market
 
     
Plus
   
Opportunity
 
     
(NPP
)
 
(NMO
)
Expiration:
             
October 31, 2014
 
$
 
$
1,437,187
 
October 31, 2015
   
   
1,902,879
 
October 31, 2016
   
   
1,398,166
 
October 31, 2019
   
310,323
   
3,031,141
 
Total
 
$
310,323
 
$
7,769,373
 

During Funds’ tax year ended October 31, 2011, the following Funds utilized capital loss carryforwards as follows:

     
Dividend
   
Dividend
 
     
Advantage
   
Advantage 2
 
     
(NAD
)
 
(NXZ
)
Utilized capital loss carryforwards
 
$
4,042,731
 
$
862,140
 
 
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components — a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
 
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedules:
 
     
Performance Plus (NPP
)
     
Municipal Advantage (NMA
)
     
Market Opportunity (NMO
)
Average Daily Managed Assets*
   
Fund-Level Fee Rate
 
For the first $125 million
   
.4500
%
For the next $125 million
   
.4375
 
For the next $250 million
   
.4250
 
For the next $500 million
   
.4125
 
For the next $1 billion
   
.4000
 
For the next $3 billion
   
.3875
 
For managed assets over $5 billion
   
.3750
 

     
Dividend Advantage (NAD
)
     
Dividend Advantage 2 (NXZ
)
     
Dividend Advantage 3 (NZF
)
Average Daily Managed Assets*
   
Fund-Level Fee Rate
 
For the first $125 million
   
.4500
%
For the next $125 million
   
.4375
 
For the next $250 million
   
.4250
 
For the next $500 million
   
.4125
 
For the next $1 billion
   
.4000
 
For managed assets over $2 billion
   
.3750
 

118
 
Nuveen Investments

 
 

 

The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
         
Complex-Level Managed Asset Breakpoint Level*
   
Effective Rate at Breakpoint Level
$55 billion
   
.2000
%
$56 billion
   
.1996
 
$57 billion
   
.1989
 
$60 billion
   
.1961
 
$63 billion
   
.1931
 
$66 billion
   
.1900
 
$71 billion
   
.1851
 
$76 billion
   
.1806
 
$80 billion
   
.1773
 
$91 billion
   
.1691
 
$125 billion
   
.1599
 
$200 billion
   
.1505
 
$250 billion
   
.1469
 
$300 billion
   
.1445
 

*
For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of October 31, 2011, the complex-level fee rate for these Funds was .1759%.
 
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into sub-advisory agreements with the Sub-Adviser under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
 
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.
 
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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:
                     
Year Ending
         
Year Ending
       
March 31,
         
March 31,
       
2001*
   
.30
%
 
2007
   
.25
%
2002
   
.30
   
2008
   
.20
 
2003
   
.30
   
2009
   
.15
 
2004
   
.30
   
2010
   
.10
 
2005
   
.30
   
2011
   
.05
 
2006
   
.30
             

*
From the commencement of operations.
 
The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any portion of its fees and expenses beyond March 31, 2011. For the first ten years of Dividend Advantage 3’s (NZF) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
                     
Year Ending
         
Year Ending
       
September 30,
         
September 30,
       
2001*
   
.30
%
 
2007
   
.25
%
2002
   
.30
   
2008
   
.20
 
2003
   
.30
   
2009
   
.15
 
2004
   
.30
   
2010
   
.10
 
2005
   
.30
   
2011
   
.05
 
2006
   
.30
             

*
From the commencement of operations.
 
The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any portion of its fees and expenses beyond September 30, 2011.
 
Nuveen Investments
 
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Notes to
   
Financial Statements (continued)
 
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2 and the reasons for the transfers and ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
 
120
 
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Annual Investment Management
Agreement Approval Process (Unaudited)
 
The Board of Trustees or Directors (as the case may be) (each, a “Board” and each Trustee or Director, a “Board Member”) of the Funds, including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, Inc. (the “Advisor”) and the sub-advisory agreements (each a “Sub-Advisory Agreement”) between the Advisor and Nuveen Asset Management, LLC (the “Sub-Advisor”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is generally required to consider the continuation of advisory agreements and sub-advisory agreements on an annual basis. Accordingly, at an in-person meeting held on May 23-25, 2011 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
 
In preparation for their considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Advisor and the Sub-Advisor (the Advisor and the Sub-Advisor are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks, a comparison of Fund fees and expenses relative to peers, a description and assessment of shareholder service levels for the Funds, a summary of the performance of certain service providers, a review of product initiatives and shareholder communications and an analysis of the Advisor’s profitability with comparisons to comparable peers in the managed fund business. As part of their annual review, the Board also held a separate meeting on April 19-20, 2011, to review the Funds’ investment performance and consider an analysis provided by the Advisor of the Sub-Advisor which generally evaluated the Sub-Advisor’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of their review of the materials and discussions, the Board presented the Advisor with questions and the Advisor responded.
 
Nuveen Investments
 
121

 
 

 

Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
The materials and information prepared in connection with the review of the Advisory Agreements at the May Meeting supplemented the information provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through its committees, regularly reviews the performance and various services provided by the Advisor and, since the internal restructuring described in Section A below, the Sub-Advisor. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Advisor which include, among other things, Fund performance, a review of the investment teams and compliance reports. The Board also meets with key investment personnel managing the Fund portfolios during the year. In addition, the Board continues its program of seeking to visit each sub-advisor to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. The Board also met with State Street Bank & Trust Company, the Funds’ accountant and custodian, in 2010. The Board considers factors and information that are relevant to its consideration of the renewal of the Advisory Agreements at these meetings held throughout the year. Accordingly, the Board considered the information provided and knowledge gained at these meetings when performing its review at the May Meeting of the Advisory Agreements. The Independent Board Members are assisted throughout the process by independent legal counsel who provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts and met with the Independent Board Members in executive sessions without management present.
 
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Funds and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
 
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or
 
122
 
Nuveen Investments
 
 
 

 
 
its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line.
 
In considering advisory services, the Board recognized that the Advisor provides various oversight, administrative, compliance and other services for the Funds and the Sub-Advisor provides the portfolio investment management services to the Funds. The Board recognized that Nuveen engaged in an internal restructuring in 2010 pursuant to which portfolio management services the Advisor had provided directly to the Funds were transferred to the Sub-Advisor, a newly-organized, wholly-owned subsidiary of the Advisor consisting of largely the same investment personnel. Accordingly, in reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Advisor’s investment team and changes thereto, organization and history, assets under management, Fund objectives and mandate, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Advisor or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive to take undue risks. In addition, the Board considered the Advisor’s execution of its oversight responsibilities over the Sub-Advisor. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures.
 
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Advisor and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance, legal support, managing leverage and promoting an orderly secondary market for common shares.
 
In reviewing the services provided, the Board also reviewed materials describing various notable initiatives and projects the Advisor performed in connection with the closed-end fund product line. These initiatives included continued activities to refinance auction rate preferred securities; ongoing services to manage leverage that has become increasingly complex; continued secondary market offerings and share repurchases for certain funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted Nuveen’s continued commitment to supporting the secondary market for the common
 
Nuveen Investments
 
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen’s support services included, among other things: continuing communications in support of refinancing efforts related to auction rate preferred securities; participating in conferences; communicating continually with closed-end fund analysts covering the Nuveen funds; providing marketing for the closed-end funds; share purchases; and maintaining and enhancing a closed-end fund website.
 
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
 
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks.
 
The Board reviewed reports, including a comprehensive analysis of the Funds’ performance and the applicable investment team. In this regard, the Board reviewed each Fund’s total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. In addition, the Board reviewed each Fund’s total return information compared to recognized and/or customized benchmarks for the quarter, one- and three-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. The Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.
 
In reviewing performance comparison information, the Independent Board Members recognized that the usefulness of the comparisons of the performance of certain funds with the performance of their respective Performance Peer Group may be limited because the Performance Peer Group may not adequately represent the objectives and strategies of the applicable funds or may be limited in size or number. The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered) and the performance of the fund (or respective class) during that shareholder’s investment period.
 
124
 
Nuveen Investments

 
 

 
 
In considering the results of the comparisons, the Independent Board Members observed, among other things, that (a) the Nuveen Dividend Advantage Municipal Fund 3 had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods and (b) the Nuveen Performance Plus Municipal Fund, Inc. (the “Performance Plus Fund”), the Nuveen Municipal Advantage Fund, Inc. (the “Municipal Advantage Fund”) and the Nuveen Dividend Advantage Municipal Fund (the “Dividend Advantage Fund”) each had demonstrated satisfactory performance compared to peers, performing in the second or third quartile over various periods. They also noted that the Nuveen Dividend Advantage Municipal Fund 2 lagged its peers somewhat in the shorter one- and three-year periods, but demonstrated more favorable performance in the longer five-year period, and that the Nuveen Municipal Market Opportunity Fund, Inc. (the “Municipal Market Opportunity Fund”) lagged its peers and/or benchmark over various periods. With respect to Nuveen funds that lagged their peers and/or benchmarks over various periods, the Independent Board Members considered the factors affecting performance and any steps taken or proposed to address performance issues, and were satisfied with the process followed.
 
With respect to any Nuveen funds that underperformed their peers and/or benchmarks from time to time, the Board monitors such funds closely and considers any steps necessary or appropriate to address such issues.
 
Except as otherwise noted above, based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
 
C.  
Fees, Expenses and Profitability
 
1. Fees and Expenses
 
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds based on data provided by an independent fund data provider (the “Peer Universe”) and in certain cases, to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
 
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group (if any). In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; and the differences in the type and use of leverage may impact the comparative data thereby limiting the ability to make a meaningful comparison with peers.
 
Nuveen Investments
 
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
 
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group (if available) or Peer Universe if there was no separate Peer Group.
 
The Independent Board Members noted that the Municipal Advantage Fund and the Municipal Market Opportunity Fund had higher net management fees than their peer averages and a slightly higher or higher net expense ratio compared to their peer averages while the Dividend Advantage Fund and the Performance Plus Fund had net management fees slightly higher or higher than their peer averages but a net expense ratio below or in line with their peer averages. In addition, they noted that each of the other Funds had net management fees and net expense ratios below their peer averages.
 
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund.
   
 
2. Comparisons with the Fees of Other Clients
  The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by the Advisor to other clients, including municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Advisor. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
 
126
 
Nuveen Investments

 
 

 
 
  In considering the fees of the Sub-Advisor, the Independent Board Members also considered the pricing schedule or fees that the Sub-Advisor charges for similar investment management services for other Nuveen funds.
   
 
3. Profitability of Fund Advisers
 
In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2010. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen.
 
In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations.
 
Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that the Advisor’s level of profitability for its advisory activities was reasonable in light of the services provided.
 
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional
 
Nuveen Investments
 
127

 
 

 


 
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
  information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
   
D.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ investment portfolio.
 
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.
 
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
 
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Advisor for serving as agent at Nuveen’s trading desk and as co-manager in initial public offerings of new closed-end funds.
 
128
 
Nuveen Investments

 
 

 
 
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Independent Board Members recognized that each Fund Adviser has the authority to pay a higher commission in return for brokerage and research services if it determines in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided. Nevertheless, the Independent Board Members noted that commissions are generally not paid in connection with municipal securities transactions typically executed on a principal basis.
 
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
 
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
 
Nuveen Investments
 
129
 
 
 

 

Board Members & Officers (Unaudited)

The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the board members of the Funds. The number of board members of the Funds is currently set at ten. None of the board members who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
 
 
Name,
Birthdate
& Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed
and Term(1)
 
Principal
Occupation(s)
including other
Directorships
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen by
Board Member
Independent Board Members:
     
ROBERT P. BREMNER(2)
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
 
Chairman of
the Board
and Board Member
 
1996
Class III
 
Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute.
 
241
   
 
             
JACK B. EVANS
10/22/48
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
 
1999
Class III
 
President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm.
 
 
241
                   
WILLIAM C. HUNTER
3/6/48
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
2004
Class I
 
Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University.
 
 
241
                   
DAVID J. KUNDERT(2)
10/28/42
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
2005
Class II
 
Director, Northwestern Mutual Wealth Management Company; retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation.
 
 
241
                   
WILLIAM J. SCHNEIDER(2)
9/24/44
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
1996
Class III
 
Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council;member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank.
 
 
241

130
 
Nuveen Investments

 
 

 


 
Name,
Birthdate
& Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed
and Term(1)
 
Principal
Occupation(s)
Including other
Directorships
During Past 5 Years
 
Number
of Portfolios
in Fund
Overseen by
Board Member
Independent Board Members:
       
JUDITH M. STOCKDALE
12/29/47
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
1997
Class I
 
Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994).
 
241
■ 
CAROLE E. STONE(2)
6/28/47
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
2007 Class I
 
Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007).
 
 
 
241
VIRGINIA L. STRINGER
8/16/44
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
2011
 
Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010).
 
 
 
241
TERENCE J. TOTH(2)
9/29/59
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
2008
Class II
 
Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004).
 
 
241

Interested Board Member:
             
JOHN P. AMBOIAN(3)
6/14/61
333 W. Wacker Drive
 Chicago, IL 60606
 
Board Member
 
2008
Class II
 
Chief Executive Officer and Chairman (since 2007) and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers, Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc.
 
241

Nuveen Investments
 
131

 
 

 


Board Members & Officers (Unaudited) (continued)

 
Name,
Birthdate
and Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed(4)
 
Principal
Occupation(s)
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
 Overseen
by Officer
Officers of the Funds:
               
 
               
GIFFORD R. ZIMMERMAN
9/9/56
333 W. Wacker Drive
Chicago, IL 60606
 
 
Chief
Administrative
Officer
 
 
1988
 
Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary, of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2010) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst.
 
 
241
                   
WILLIAM ADAMS IV
6/9/55
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 
2007
 
Senior Executive Vice President, Global Structured Products (since 2010), formerly, Executive Vice President (1999-2010) of Nuveen Securities, LLC; Co-President of Nuveen Fund Advisors, Inc. (since 2011); formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC.
 
133
                   
CEDRIC H. ANTOSIEWICZ
1/11/62
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 
2007
 
Managing Director of Nuveen Securities, LLC.
 
133
                   
MARGO L. COOK
4/11/64
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President
 
 
2009
 
Executive Vice President (since 2008) of Nuveen Investments, Inc.and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director-Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst.
 
 
241
                   
LORNA C. FERGUSON
10/24/45
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President
 
1998
 
Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004).
 
241
STEPHEN D. FOY
5/31/54
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President
and Controller
 
 
1998
 
Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC; (since 2010) Certified Public Accountant.
 
 
241

132
 
Nuveen Investments

 
 

 


 
Name,
Birthdate
and Address
 
Position(s) Held
 with the Funds
 
Year First
Elected or
Appointed(4)
 
Principal
Occupation(s)
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen by
Officer
                   
Officers of the Funds:
               
SCOTT S. GRACE
8/20/70
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President
and Treasurer
 
 
2009
 
Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company,
LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation.
 
 
241
                   
WALTER M. KELLY
2/24/70
333 W. Wacker Drive
Chicago, IL 60606
 
 
Chief Compliance
Officer and
Vice President
 
2003
 
Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc.
 
241
   
 
             
TINA M. LAZAR
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 
2002
 
Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc.
 
241
                   
LARRY W. MARTIN
7/27/51
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President and
Assistant Secretary
 
 
1997
 
Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc., Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management, LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010).
 
 
241
                   
KEVIN J. MCCARTHY
3/26/66
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President and Secretary
 
 
2007
 
Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007).
 
 
241

Nuveen Investments
 
133

 
 

 
 
Board Members & Officers (Unaudited) (continued)
                     
 
Name,
Birthdate
and Address
   
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed(4)
 
Principal
Occupation(s)
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen
by Officer
Officers of the Funds:
                 
               
KATHLEEN L. PRUDHOMME
3/30/53
901 Marquette Avenue
Minneapolis, MN 55402
   
 
Vice President and Assistant Secretary
 
 
2011
 
Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010).
 
 
241

(1)
For Dividend Advantage (NAD), Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF), the Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For Performance Plus (NPP), Municipal Advantage (NMA) and Market Opportunity (NMO), the Board Members serve a one year term to serve until the next annual meeting or until their succes-sors shall have been duly elected and qualified. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex.
(2)
Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser.
(3)
Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds.
 
(4)
Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex.

134
 
Nuveen Investments

 
 

 
 
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 Automatic Reinvestment Plan
 
Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 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. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may
 
Nuveen Investments
 
135

 
 

 


 
Reinvest Automatically
Easily and Conveniently
(continued)
 
exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
 
Flexible
 
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
 
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 partici-pate 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 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.
 
136
 
Nuveen Investments

 
 

 
 
Glossary of Terms
Used in this Report
 
Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction.
 
 
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 market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security.
   
Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both structural leverage and the leverage effects of certain derivative investments in the Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any structural leverage.
 
 
Inverse Floaters: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
   
Leverage: Using borrowed money to invest in securities or other assets.

Nuveen Investments
 
137

 
 

 
 
Glossary of Terms
Used in this Report (continued)
 
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.
   
Lipper General and Insured Leveraged Municipal Debt Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 23 funds; 5-year, 22 funds; and 10-year, 13 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
   
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): The net market value of all securities held in a portfolio.
   
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
   
Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value.
   
Standard & Poor’s (S&P) National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. The index returns assume reinvestment of dividends but do not reflect any applicable sales charges. You cannot invest directly in an index.
   
Structural Leverage: Structural Leverage consists of preferred shares or debt issued by the Fund. Both of these are part of a Fund’s capital structure. Structural leverage is sometimes referred to as “‘40 Act Leverage” and is subject to asset coverage limits set in the Investment Company Act of 1940.
   
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.
   
Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.

138
 
Nuveen Investments

 
 

 
 
Other Useful Information
 
Board of
Directors/Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Virginia L. Stringer
Terence J. Toth
 
Fund Manager
Nuveen Fund Advisers, Inc.
333 West Wacker Drive
Chicago, IL 60606
 
Custodian
State Street Bank
& Trust Company
Boston, MA
 
Transfer Agent and
Shareholder Services
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
 
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
 
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
 
Quarterly Portfolio of Investments and Proxy Voting Information
 
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
 
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public References Section at 100 F Street NE, Washington, D.C. 20549.
 
CEO Certification Disclosure
 
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
 
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
 
Common and Preferred Share Information
 
Each Fund intends to repurchase and/or redeem shares of its own common and/or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or auction rate preferred stock as shown in the accompanying table.
 
     
Auction Rate
 
Common Shares
 
Preferred Shares
Fund
Repurchased
 
Redeemed
NPP
 
16,796
NMA
 
NMO
 
NAD
 
4,803
NXZ
 
NZF
 
9,478
 
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

Nuveen Investments
 
139

 
 

 
 
Nuveen Investments:
Serving Investors for Generations
 
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
 
Focused on meeting investor needs.
 
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
 
Find out how we can help you.
 
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.

Learn more about Nuveen Funds at: www.nuveen.com/cef
 
Distributed by
Nuveen Securities,LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
 

EAN-B-1011D

 
 

 
 
ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.)

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's Board of Directors or Trustees (“Board”) determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Carole E. Stone, who is “independent” for purposes of Item 3 of Form N-CSR.

Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State's operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State's bond-related disclosure documents and certifying that they fairly presented the State's financial position; reviewing audits of various State and local agencies and programs; and coordinating the State's system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director.  Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone's position on the boards of these entities and as a member of both CBOE Holdings' Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
 
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Nuveen Dividend Advantage Municipal Fund

The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed.

The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).

SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
 
 
Audit Fees Billed
   
Audit-Related Fees
   
Tax Fees
   
All Other Fees
 
Fiscal Year Ended
to Fund 1
   
Billed to Fund 2
   
Billed to Fund 3
   
Billed to Fund 4
 
October 31, 2011
$ 18,200     $ 7,750     $ 0     $ 0  
                               
Percentage approved
  0 %     0 %     0 %     0 %
pursuant to
                             
pre-approval
                             
exception
                             
                               
October 31, 2010
$ 34,459     $ 12,500     $ 0     $ 850  
                               
Percentage approved
  0 %     0 %     0 %     0 %
pursuant to
                             
pre-approval
                             
exception
                             
                               
1 "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services
         
provided in connection with statutory and regulatory filings or engagements.
                         
                               
2 "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the
                 
audit or review of financial statements and are not reported under "Audit Fees".
                         
                               
3 "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning.
                 
                               
4 "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds.
         
 
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS

The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Fund Advisors, Inc. (formerly Nuveen Asset Management) (the “Adviser” or “NFA”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years.
 
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
 
Fiscal Year Ended
Audit-Related Fees
   
Tax Fees Billed to
   
All Other Fees
 
 
Billed to Adviser and
   
Adviser and
   
Billed to Adviser
 
 
Affiliated Fund
   
Affiliated Fund
   
and Affiliated Fund
 
 
Service Providers
   
Service Providers
   
Service Providers
 
October 31, 2011
$ 0     $ 0     $ 0  
                       
Percentage approved
  0 %     0 %     0 %
pursuant to
                     
pre-approval
                     
exception
                     
October 31, 2010
$ 0     $ 0     $ 0  
                       
Percentage approved
  0 %     0 %     0 %
pursuant to
                     
pre-approval
                     
exception
                     
 
NON-AUDIT SERVICES

The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
 
Fiscal Year Ended
     
Total Non-Audit Fees
             
       
billed to Adviser and
             
       
Affiliated Fund Service
   
Total Non-Audit Fees
       
       
Providers (engagements
   
billed to Adviser and
       
       
related directly to the
   
Affiliated Fund Service
       
 
Total Non-Audit Fees
   
operations and financial
   
Providers (all other
       
 
Billed to Fund
   
reporting of the Fund)
   
engagements)
   
Total
 
October 31, 2011
$ 0     $ 0     $ 0     $ 0  
October 31, 2010
$ 850     $ 0     $ 0     $ 850  
                               
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective
         
amounts from the previous table.
                             
 
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Terence J. Toth, William J. Schneider, Carole E. Stone and David J. Kundert.

ITEM 6. SCHEDULE OF INVESTMENTS.

a) See Portfolio of Investments in Item 1.

b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Nuveen Fund Advisors, Inc. (“Adviser”) is the registrant’s investment adviser. NFA is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser's policy and procedures. The Adviser periodically monitors the Sub-Adviser's voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.
 
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
 
Nuveen Fund Advisors, Inc. is the registrant's investment adviser (also referred to as the "Adviser".)  The Adviser is responsible for the selection and on-going monitoring of the Fund's investment portfolio, managing the Fund's business affairs and providing certain clerical, bookkeeping and administrative services.  The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager at the Sub-Adviser:

The Portfolio Manager

The following individual has primary responsibility for the day-to-day implementation of the registrant’s investment strategies:
 
Name
Fund
  THOMAS SPALDING
Nuveen Dividend Advantage Municipal Fund

Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts:
 
Portfolio Manager
Type of Account
Managed
Number of
Accounts
Assets*
 Thomas Spalding
Registered Investment Company
20
$ 7.80  billion
 
Other Pooled Investment Vehicles
0
$0
 
Other Accounts
5
$18.2 million
*
Assets are as of October 31, 2011.  None of the assets in these accounts are subject to an advisory fee based on performance.

Compensation. Portfolio manager compensation consists primarily of base pay, an annual cash bonus and long-term incentive payments.

Base pay. Base pay is determined based upon an analysis of the portfolio manager‘s general performance, experience, and market levels of base pay for such position.

Annual cash bonus. The Fund’s portfolio manager is eligible for an annual cash bonus determined based upon the  portfolio manager‘s performance, experience and market levels of base pay for such position. The maximum potential annual cash bonus is equal to a multiple of base pay.

A portion of the portfolio manager‘s annual cash bonus is based on his or her Fund‘s investment performance, generally measured over the past one- and three-year periods unless the portfolio manager‘s tenure is shorter. Investment performance for the Fund is determined by evaluating the Fund‘s performance relative to its benchmark(s) and/or Lipper industry peer group.

Each portfolio manager whose performance is evaluated in part by comparing the manager‘s performance to a benchmark is measured against a Fund-specific customized subset (limited to bonds in each Fund‘s specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond Index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor‘s Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of October 31, 2011, the S&P/Investortools Municipal Bond Index was comprised of 57,980 securities with an aggregate current market value of $1,262 billion.

Bonus amounts can also be influenced by factors other than investment performance. These other factors are more subjective and are based on evaluations by each portfolio manager‘s supervisor and reviews submitted by his or her peers. These reviews and evaluations often take into account a number of factors, including the portfolio manager‘s effectiveness in communicating investment performance to shareholders and their advisors, his or her contribution to NAM‘s investment process and to the execution of investment strategies consistent with risk guidelines, his or her participation in asset growth, and his or her compliance with NAM‘s policies and procedures.

Investment performance is measured on a pre-tax basis, gross of fees for a Fund‘s results and for its Lipper industry peer group.

Long-term incentive compensation. Certain key employees of Nuveen Investments and its affiliates, including certain portfolio managers, have received profits interests in the parent company of Nuveen Investments which entitle their holders to participate in the appreciation in the value of Nuveen Investments. In addition, in July 2009, Nuveen Investments created and funded a trust which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain key employees, including certain portfolio managers. Finally, certain key employees of  NAM, including certain portfolio managers, have received profits interests in NAM which entitle their holders to participate in the firm‘s growth over time.

Material Conflicts of Interest. Each portfolio manager’s simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest.

Beneficial Ownership of Securities. As of October 31, 2011, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by Nuveen Asset Management’s municipal investment team.

Name of Portfolio Manager
Fund
 
 
Dollar range of
equity securities
beneficially owned
in Fund
Dollar range of equity
securities beneficially
owned in the remainder of
Nuveen funds managed by
Nuveen Asset
Management’s municipal
investment team
Thomas Spalding
Nuveen Dividend Advantage Municipal Fund
$0
$ 500,001-$1,000,000

PORTFOLIO MANAGER BIO:

Thomas Spalding, CFA, is Senior Vice President and Senior Investment Officer of Nuveen Investments. He has direct investment responsibility for the National Long Term funds. He joined Nuveen in 1976 as assistant portfolio manager and has been the portfolio manager of the Nuveen Municipal Value Fund, Nuveen's first closed-end exchange traded fund, since its inception in 1987. Currently, he manages investments for 21 Nuveen-sponsored investment companies.

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. Letter or number the exhibits in the sequence indicated.

(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 because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.)

(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

By (Signature and Title) /s/ Kevin J. McCarthy
Kevin J. McCarthy
Vice President and Secretary

Date: January 6, 2012

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: January 6, 2012
 
By (Signature and Title) /s/ Stephen D. Foy
Stephen D. Foy
Vice President and Controller
(principal financial officer)

Date: January 6, 2012