UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10345
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Nuveen Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2008
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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.
Semi-Annual Report | Nuveen Investments
April 30, 2008 | Municipal Closed-End Funds
Photo of: Small child
NUVEEN PERFORMANCE
PLUS MUNICIPAL
FUND, INC.
NPP
NUVEEN MUNICIPAL
ADVANTAGE FUND, INC.
NMA
NUVEEN MUNICIPAL
MARKET OPPORTUNITY
FUND, INC.
NMO
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND
NAD
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND 2
NXZ
NUVEEN DIVIDEND
ADVANTAGE
MUNICIPAL FUND 3
NZF
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NUVEEN
Investments
Chairman's
LETTER TO SHAREHOLDERS
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
It is with a variety of emotions that I write my last letter to Nuveen Fund
shareholders. For a dozen years, it has been my privilege to communicate
periodically with you through these annual and semi-annual reports about the
performance and uses of your Fund. Over that time, I've tried to emphasize the
central role that quality municipal bonds can play in creating attractive
opportunities for current tax-free income, long-term return and portfolio
diversification. I firmly believe that all our Fund shareholders, working in
conjunction with a trusted financial advisor, have the potential to reach their
financial objectives by using Nuveen Funds as a core component of a
well-balanced portfolio.
As I noted in your Fund's last shareholder report, Nuveen Investments was
acquired in November 2007 by a group led by Madison Dearborn Partners, LLC.
While this event had no impact on the investment objectives, portfolio
management strategies or dividend policies of your Fund, it did provide a
convenient point to begin implementing a long-planned transition in the senior
management team at Nuveen. As a part of this process, I will be leaving the
Board of the Nuveen Funds on June 30, 2008.
In addition, Nuveen and your Fund's Board determined that Fund shareholders
would be best served by having an independent director serve as the new chairman
of the Fund Board. Therefore, I am very excited and pleased to report that I
will be succeeded as chairman of your Nuveen Fund Board by Robert Bremner. A
member of the Board since 1997, Bob is a management consultant and private
investor not affiliated with Nuveen. Over the years, he has played a critical
role on the Fund Board, most recently as the lead independent director, and I
know Bob and the other Board members are determined to maintain the standards
and commitment to quality that you have come to expect from your Nuveen
investment.
Please take the time to review the Portfolio Managers' Comments, the Common
Share Dividend and Share Price Information, and the Performance Overview
sections of this report. All of us are grateful that you have chosen Nuveen
Investments as a partner as you pursue your financial goals, and, on behalf of
Bob Bremner and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 16, 2008
Portfolio Managers' COMMENTS
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| NPP, NMA, NMO
Nuveen Investments Municipal Closed-End Funds | NAD, NXZ, NZF
Portfolio managers Tom Spalding and Paul Brennan review key investment
strategies and the six-month performance of these six national Funds. A 31-year
veteran of Nuveen, Tom has managed NXZ since its inception in 2001 and NPP, NMA,
NMO, and NAD since 2003. With 19 years of industry experience, including 17
years at Nuveen, Paul assumed portfolio management responsibility for NZF in
2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2008?
During this six-month period, the municipal market experienced a great deal of
volatility, as issues related to the sub-prime mortgage industry had an indirect
but important, influence on the municipal market's performance. Other major
factors influencing the municipal market included tighter liquidity stemming
from problems in the credit markets, a flight to quality driven by dislocations
in the financial markets, and continued uncertainty about municipal bond
insurers. We sought to capitalize on this turbulent environment by continuing to
focus on relative value, using a fundamental approach to find undervalued
sectors and individual credits with the potential to perform well over the long
term.
As the market discounted bonds that were out of favor, such as those with lower
credit quality and higher yields, we took advantage of opportunities that we
considered overlooked and undervalued to selectively add these types of bonds to
our portfolios, including bonds rated BBB. In addition, we believed that the
steepening municipal yield curve began to offer better reward opportunities for
purchases made further out on the curve. As a result, many of the additions to
our portfolios emphasized longer maturities. Among the credits we added to the
Funds were uninsured health care bonds, marking the first time in a while that
we found bonds in this sector at attractive levels relative to their credit
quality. NPP, NMA, NMO, NAD, and NXZ also purchased zero coupon bonds, which we
believed offered good long-term potential at discounted prices. In NZF, we added
exposure to the short end of the yield curve by purchasing variable rate demand
obligations (VRDOs) at very attractive yields. VRDOs are floating-rate
securities that offer interest rates set daily or weekly based on an index of
short-term municipal rates.
To generate cash for purchases, we selectively sold holdings with shorter
durations, (1) including pre-refunded bonds, (2) at attractive prices resulting
from high demand. Selling shorter duration bonds and reinvesting further out on
the yield curve also helped to improve the Funds' overall call protection
profiles. In addition, a number of our new purchases were funded with cash
generated by bond redemptions.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio managers as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
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(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these changes
than bonds with shorter durations.
(2) Advance refundings, also known as pre-refundings or refinancings, occur when
an issuer sells new bonds and uses the proceeds to fund principal and interest
payments of older existing bonds. This process often results in lower borrowing
costs for bond issuers.
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4
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As noted earlier, over the course of the entire reporting period, we saw the
municipal yield curve steepen, as municipal bond interest rates at the short end
of the curve declined while longer-term rates rose. In this environment, we
continued to emphasize a disciplined approach to duration management. As part of
this strategy, we use inverse floating rate securities, (3) a type of derivative
financial instrument, in all six of these Funds. Inverse floaters typically
provide the dual benefit of lengthening the Funds' durations to be closer to our
strategic target and enhancing their income-generation capabilities. NZF also
used forward interest rate swaps, another type of derivative financial
instrument. The goal of this strategy was to help us manage NZF's common share
net asset value (NAV) volatility without having a negative impact on its income
stream or common share dividends over the short term.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
Total Returns on Common Share Net Asset Value*
For periods ended 4/30/08
Six-Month 1-Year 5-Year 10-Year
NPP -1.07% -0.96% 4.49% 5.72%
NMA -1.98% -2.36% 4.49% 5.75%
NMO -1.73% -1.73% 4.67% 5.12%
NAD -1.63% -1.96% 4.68% N/A
NXZ -0.58% 0.09% 6.22% N/A
NZF -0.56% -0.11% 5.60% N/A
Lipper General
Leveraged
Municipal Debt
Funds Average(4) -2.54% -3.47% 4.64% 5.24%
Lehman Brothers
Municipal
Bond Index(5) 1.47% 2.79% 4.03% 5.16%
For the six months ended April 30, 2008, the cumulative returns on common share
NAV for all six of the Funds in this report underperformed the return on the
Lehman Brothers Municipal Bond Index. At the same time, the six-month returns
for all six Funds outperformed the average return for the Lipper General
Leveraged Municipal Debt Funds Average.
One of the major factors impacting the six-month performance of these Funds in
relation to that of the unleveraged Lehman Brothers Municipal Bond Index was the
use of financial leverage. While leverage provides opportunities for additional
income and total returns for common shareholders, the benefits of leveraging are
tied in part to the
----------
*Six-month returns are cumulative; returns for one-year, five-year, and ten-year
are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(3) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a short-term
tax-exempt interest rate index. For the Nuveen Funds, the index typically used
is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index
(previously referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the Funds
invested during this reporting period, are further defined within the Notes to
Financial Statements and Glossary of Terms Used in This Report sections of this
shareholder report.
(4) The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period as
follows: six months, 54; 1 year, 54; 5 years, 52; and 10 years, 38. Fund and
Lipper returns assume reinvestment of dividends.
(5) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal bonds.
Results for the Lehman index do not reflect any expenses.
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5
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short-term rates that leveraged Funds pay their preferred shareholders. During
this period, as the yields on longer-term bonds rose and their prices
correspondingly fell, declining valuations had a negative effect on performance
that was magnified by the use of leverage. In addition, the Funds' borrowing
costs remained relatively high, negatively impacting their total returns. (See
Recent Developments in the Auction Rate Preferred Markets at the end of this
commentary.)
Other key factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives, credit exposure and sector
allocations, and holdings of bonds backed by certain municipal bond insurers.
Bonds in the Lehman Brothers Municipal Bond Index with maturities of eight years
or less, especially those maturing in two to six years, benefited the most from
changes in the interest rate environment. As a result, these shorter maturity
bonds generally outperformed credits with longer maturities. Bonds having the
longest maturities (22 years and longer) posted the worst returns. While NXZ
benefited from having the shortest duration among these Funds, on the whole the
Funds were overexposed to the underperforming longer part of the yield curve,
with NAD and NMA having the longest durations. This generally had a negative
impact on performance.
As previously mentioned, NZF used forward interest rate swaps to synthetically
extend its duration and move the Fund closer to our strategic duration target.
Despite the fact that longer duration instruments generally performed poorly,
the use of forward interest rate swaps had a positive impact on NZF's return
performance. This was because the interest rate swaps provided exposure to
taxable markets during a period when, in contrast to historical trends, the U.S.
Treasury market and the municipal market moved in the opposite directions. As
municipal market performance lagged the significant gains made by Treasuries,
the interest rate swaps performed very well. However, the inverse floaters used
by all six of these Funds had a negative impact on performance. This resulted
from the fact that the inverse floaters effectively increased the Funds'
exposure to longer maturity bonds during a period when shorter maturities were
in favor in the market. However, the inverse floaters also benefited the Funds
by helping to support their income streams.
As credit spreads widened, bonds rated BBB or below posted poor returns. The
under-performance of the lower credit quality sector was largely the result of
risk-averse investors' flight to quality as disruptions in the financial and
housing markets deepened. As of April 30, 2008, the Funds' holdings of bonds
rated BBB ranged from approximately 6% in NZF to 14% in NMA. The Funds'
allocations to this credit quality sector were generally higher than that of the
Lehman Brothers Municipal Bond Index, and the
----
6
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negative impact of this greater exposure to credit risk accounted for some of
the performance differential between these Funds and the index.
In general, bonds that carried any credit risk, regardless of sector, tended to
perform poorly. Revenue bonds as a whole, and especially the industrial
development and health care sectors that had ranked among the top performers in
the Lehman Brothers Municipal Bond Index over the past few years, underperformed
the general municipal market. The housing sector also performed poorly, as did
lower-rated bonds backed by the 1998 master tobacco settlement agreement.
Sectors of the market that generally contributed to the Funds' performances
included general obligation bonds, water and sewer, electric utilities and
special tax issues. Pre-refunded bonds performed exceptionally well, due
primarily to their shorter effective maturities and higher credit quality. Among
these six Funds, NXZ had the heaviest allocation of bonds that had been advance
refunded.
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by certain municipal insurers. NMA, in particular, had
much heavier exposure to bonds insured by Financial Guaranty Insurance Company
(FGIC), which accounted for some of this Fund's underperformance relative to the
other Funds in this report (See Recent Developments Regarding Bond Insurance
Companies And Fund Policy Changes). On the whole, the holdings of all of our
Funds continued to be well diversified not only between insured and uninsured
bonds, but also within the insured bond category.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES AND FUND POLICY CHANGES
The portfolios of investments reflect the ratings on certain bonds insured by
AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. During the period covered by
this report, at least one rating agency reduced the rating for AMBAC-insured and
MBIA-insured bonds to AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds to BB. Subsequent to April 30,
2008, and at the time this report was prepared, at least one rating agency
further reduced the rating for MBIA-insured bonds to A. As of April 30, 2008, at
least one rating agency has placed XLCA-insured bonds on "negative credit watch"
and one or more rating agencies have placed each of these insurers on "negative
outlook", which may presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are reduced by these
rating agencies, it would likely reduce the effective rating of many of the
bonds insured by that insurer or insurers. It is important to note that
municipal bonds historically have had a very low rate of default.
----
7
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RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the preferred shares issued by these Funds than there
were offers to buy. This meant that these auctions "failed to clear" and that
many or all auction preferred shareholders who wanted to sell their shares in
these auctions were unable to do so. This decline in liquidity in auction
preferred shares did not lower the credit quality of these shares, and auction
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions as calculated in accordance with
the pre-established terms of the auction preferred shares. At the time this
report was prepared, the Funds' managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares offered, if ever.
The Funds' managers are working diligently to refund the auction preferred
shares, and have made progress in these efforts, but at present there is no
assurance that these efforts will succeed. These developments generally do not
affect the management or investment policies of these Funds. However, one
implication of these auction failures for common shareholders is that the Funds'
cost of leverage will likely be higher, at least temporarily, than it otherwise
would have been had the auctions continued to be successful. As a result, the
Funds' future common share earnings may be lower than they otherwise would have
been.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
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8
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Common Share
Dividend and Share Price
INFORMATION
--------------------------------------------------------------------------------
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. This
strategy continued to provide support for the Funds' income streams during this
turbulent period. As a result, the dividends of all six of these Funds remained
stable throughout the six-month reporting period ended April 30, 2008.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains or net ordinary income
distributions at the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NMA $0.0238 --
NAD -- $0.0033
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 common share 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 common share NAV. Each Fund will, over time,
pay all of its net investment income as dividends to shareholders. As of April
30, 2008, all of the Funds in this report had positive UNII balances, based upon
our best estimate, for tax purposes. NPP, NMA and NAD had positive UNII balances
and NMO, NXZ and NZF had negative UNII balances for financial statement
purposes.
----
9
----
As of April 30, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
4/30/08 Six-Month
Discount Average Discount
NPP -9.31% -10.37%
NMA -6.49% -7.07%
NMO -7.46% -8.13%
NAD -6.17% -7.53%
NXZ -0.13% -1.66%
NZF -5.77% -7.45%
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10
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NPP | Nuveen Performance
Performance | Plus Municipal
OVERVIEW | Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 65%
AA 12%
A 9%
BBB 10%
BB or Lower 2%
N/R 2%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.0640
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
LINE CHART:
Common Share Price Performance -- Weekly Closing Price
5/01/07 15.18
15.23
15.27
15.26
15.21
15.14
14.67
14.32
14.17
14.21
14.21
14.02
13.92
14.00
14.11
13.90
13.82
13.78
13.98
14.46
14.01
13.91
13.99
13.88
13.63
13.59
13.50
13.62
13.19
12.87
13.07
13.17
13.27
13.05
13.10
13.27
13.85
13.94
13.74
13.95
13.96
14.20
13.37
13.15
12.83
13.30
13.00
13.08
13.40
13.50
13.47
13.37
13.27
4/30/08 13.34
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.34
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.71
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.31%
--------------------------------------------------------------------------------
Market Yield 5.17%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.18%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 881,130
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.60
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.62
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 6/22/89)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 0.71% -1.07%
--------------------------------------------------------------------------------
1-Year -7.57% -0.96%
--------------------------------------------------------------------------------
5-Year 3.98% 4.49%
--------------------------------------------------------------------------------
10-Year 4.78% 5.72%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 14.4%
--------------------------------------------------------------------------------
California 10.3%
--------------------------------------------------------------------------------
New York 6.5%
--------------------------------------------------------------------------------
New Jersey 5.2%
--------------------------------------------------------------------------------
Indiana 4.9%
--------------------------------------------------------------------------------
Texas 4.9%
--------------------------------------------------------------------------------
Florida 4.5%
--------------------------------------------------------------------------------
Colorado 4.3%
--------------------------------------------------------------------------------
Massachusetts 3.8%
--------------------------------------------------------------------------------
Ohio 3.5%
--------------------------------------------------------------------------------
Washington 3.3%
--------------------------------------------------------------------------------
Michigan 3.1%
--------------------------------------------------------------------------------
South Carolina 2.7%
--------------------------------------------------------------------------------
Nevada 2.3%
--------------------------------------------------------------------------------
Georgia 2.1%
--------------------------------------------------------------------------------
Pennsylvania 2.1%
--------------------------------------------------------------------------------
Utah 2.0%
--------------------------------------------------------------------------------
Minnesota 1.9%
--------------------------------------------------------------------------------
Louisiana 1.9%
--------------------------------------------------------------------------------
Wisconsin 1.6%
--------------------------------------------------------------------------------
Other 14.7%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 25.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.4%
--------------------------------------------------------------------------------
Tax Obligation/General 14.4%
--------------------------------------------------------------------------------
Transportation 10.8%
--------------------------------------------------------------------------------
Health Care 9.3%
--------------------------------------------------------------------------------
Utilities 9.0%
--------------------------------------------------------------------------------
Consumer Staples 5.4%
--------------------------------------------------------------------------------
Other 9.4%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008.
Please see the Portfolio Managers' Commentary for an expanded discussion
of the affect on the Fund of changes to the ratings of certain bonds in
the portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(2) 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.
-----
11
-----
NMA | Nuveen Municipal
Performance | Advantage
OVERVIEW | Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 58%
AA 14%
A 9%
BBB 14%
BB or Lower 5%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
May 0.0715
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0675
Oct 0.0640
Nov 0.0640
Dec 0.0640
Jan 0.0640
Feb 0.0640
Mar 0.0640
Apr 0.0640
LINE CHART:
Common Share Price Performance -- Weekly Closing Price
5/01/07 16.07
16.21
16.28
16.13
16.05
16.06
15.50
15.07
14.98
14.93
14.80
14.65
14.55
14.74
14.85
14.48
14.01
14.24
14.62
15.12
14.57
14.42
14.48
14.26
13.94
14.10
13.92
13.96
13.52
13.17
13.24
13.46
13.59
13.36
13.24
13.69
14.39
14.59
14.26
14.46
14.51
14.58
13.67
13.47
13.08
13.45
13.28
13.20
13.37
13.56
13.65
13.52
13.55
4/30/08 13.55
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.55
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.49
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.49%
--------------------------------------------------------------------------------
Market Yield 5.67%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.88%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 626,115
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.15
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.68
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/19/89)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 0.04% -1.98%
--------------------------------------------------------------------------------
1-Year -10.63% -2.36%
--------------------------------------------------------------------------------
5-Year 3.79% 4.49%
--------------------------------------------------------------------------------
10-Year 5.04% 5.75%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 9.7%
--------------------------------------------------------------------------------
Louisiana 9.7%
--------------------------------------------------------------------------------
Washington 9.1%
--------------------------------------------------------------------------------
California 9.0%
--------------------------------------------------------------------------------
Illinois 8.6%
--------------------------------------------------------------------------------
New York 7.5%
--------------------------------------------------------------------------------
Colorado 5.4%
--------------------------------------------------------------------------------
Ohio 4.2%
--------------------------------------------------------------------------------
Nevada 3.8%
--------------------------------------------------------------------------------
Tennessee 3.6%
--------------------------------------------------------------------------------
Oklahoma 2.8%
--------------------------------------------------------------------------------
South Carolina 2.7%
--------------------------------------------------------------------------------
New Jersey 2.4%
--------------------------------------------------------------------------------
Alabama 2.0%
--------------------------------------------------------------------------------
Puerto Rico 1.9%
--------------------------------------------------------------------------------
Michigan 1.8%
--------------------------------------------------------------------------------
Wisconsin 1.7%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 29.1%
--------------------------------------------------------------------------------
Utilities 13.1%
--------------------------------------------------------------------------------
Health Care 12.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.3%
--------------------------------------------------------------------------------
Transportation 8.3%
--------------------------------------------------------------------------------
Tax Obligation/General 8.1%
--------------------------------------------------------------------------------
Consumer Staples 5.3%
--------------------------------------------------------------------------------
Other 11.0%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008.
Please see the Portfolio Managers' Commentary for an expanded discussion
of the affect on the Fund of changes to the ratings of certain bonds in
the portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(2) 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.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0238 per share.
-----
12
-----
NMO | Nuveen Municipal
Performance | Market Opportunity
OVERVIEW | Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 77%
AA 8%
A 5%
BBB 8%
BB or Lower 2%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.0635
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0605
Apr 0.0605
LINE CHART:
Common Share Price Performance -- Weekly Closing Price
5/01/07 15.00
15.13
15.00
15.02
14.88
14.94
14.64
14.13
14.01
14.03
13.91
13.75
13.73
13.61
13.76
13.44
13.21
13.47
13.79
14.09
13.77
13.59
13.79
13.73
13.60
13.47
13.46
13.59
13.12
12.59
12.95
13.13
13.25
13.00
12.72
13.08
13.73
14.02
13.74
14.10
14.13
14.23
13.35
13.10
12.90
13.15
12.91
12.73
12.97
13.19
13.08
13.17
13.18
4/30/08 13.15
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.15
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.21
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.46%
--------------------------------------------------------------------------------
Market Yield 5.52%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.67%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 647,419
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 12.48
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.73
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/21/90)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -0.15% -1.73%
--------------------------------------------------------------------------------
1-Year -7.43% -1.73%
--------------------------------------------------------------------------------
5-Year 4.21% 4.67%
--------------------------------------------------------------------------------
10-Year 4.45% 5.12%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 15.3%
--------------------------------------------------------------------------------
Washington 9.8%
--------------------------------------------------------------------------------
Illinois 8.3%
--------------------------------------------------------------------------------
California 7.7%
--------------------------------------------------------------------------------
New York 6.6%
--------------------------------------------------------------------------------
Minnesota 5.1%
--------------------------------------------------------------------------------
South Carolina 4.7%
--------------------------------------------------------------------------------
Colorado 3.9%
--------------------------------------------------------------------------------
New Jersey 3.9%
--------------------------------------------------------------------------------
Nevada 3.3%
--------------------------------------------------------------------------------
Ohio 3.0%
--------------------------------------------------------------------------------
Georgia 2.9%
--------------------------------------------------------------------------------
North Dakota 2.8%
--------------------------------------------------------------------------------
Pennsylvania 2.5%
--------------------------------------------------------------------------------
Massachusetts 2.3%
--------------------------------------------------------------------------------
Puerto Rico 2.2%
--------------------------------------------------------------------------------
Oregon 1.6%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 36.2%
--------------------------------------------------------------------------------
Tax Obligation/General 16.2%
--------------------------------------------------------------------------------
Transportation 10.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.8%
--------------------------------------------------------------------------------
Health Care 8.6%
--------------------------------------------------------------------------------
Utilities 5.7%
--------------------------------------------------------------------------------
Consumer Staples 5.4%
--------------------------------------------------------------------------------
Other 8.4%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008.
Please see the Portfolio Managers' Commentary for an expanded discussion
of the affect on the Fund of changes to the ratings of certain bonds in
the portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
-----
13
-----
NAD | Nuveen Dividend
Performance | Advantage
OVERVIEW | Municipal Fund
as of April 30, 2008
Credit Quality (as a % of municipal bonds)(1)
PIE CHART:
AAA/U.S.
Guaranteed 58%
AA 20%
A 8%
BBB 7%
BB or Lower 5%
N/R 2%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
May 0.0665
Jun 0.0665
Jul 0.0665
Aug 0.0665
Sep 0.0665
Oct 0.0635
Nov 0.0635
Dec 0.0635
Jan 0.0635
Feb 0.0635
Mar 0.0635
Apr 0.0635
LINE CHART:
Common Share Price Performance -- Weekly Closing Price
5/01/07 15.11
15.29
15.36
15.27
15.16
15.07
14.82
14.81
14.71
14.76
14.60
14.46
14.38
14.27
14.31
14.09
14.23
14.24
14.28
14.54
14.35
14.26
14.30
14.15
13.76
13.73
13.66
13.66
13.27
12.88
13.20
13.37
13.31
13.26
12.95
13.24
14.15
14.06
13.79
14.13
14.09
14.09
13.42
13.00
12.60
13.16
12.85
12.88
13.27
13.58
13.43
13.51
13.30
4/30/08 13.39
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.39
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.27
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.17%
--------------------------------------------------------------------------------
Market Yield 5.69%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.90%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 560,697
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.18
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.62
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 5/26/99)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 1.11% -1.63%
--------------------------------------------------------------------------------
1-Year -5.95% -1.96%
--------------------------------------------------------------------------------
5-Year 3.86% 4.68%
--------------------------------------------------------------------------------
Since Inception 5.05% 6.23%
--------------------------------------------------------------------------------
States
(as a % of municipal bonds)
--------------------------------------------------------------------------------
Illinois 18.6%
--------------------------------------------------------------------------------
Texas 9.5%
--------------------------------------------------------------------------------
New York 7.6%
--------------------------------------------------------------------------------
Washington 7.1%
--------------------------------------------------------------------------------
Florida 6.3%
--------------------------------------------------------------------------------
Wisconsin 5.3%
--------------------------------------------------------------------------------
Louisiana 4.5%
--------------------------------------------------------------------------------
New Jersey 3.8%
--------------------------------------------------------------------------------
Indiana 3.8%
--------------------------------------------------------------------------------
Colorado 3.6%
--------------------------------------------------------------------------------
Ohio 3.4%
--------------------------------------------------------------------------------
Pennsylvania 3.3%
--------------------------------------------------------------------------------
Michigan 2.9%
--------------------------------------------------------------------------------
Nevada 2.7%
--------------------------------------------------------------------------------
California 2.3%
--------------------------------------------------------------------------------
Rhode Island 2.2%
--------------------------------------------------------------------------------
Other 13.1%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 20.7%
--------------------------------------------------------------------------------
Health Care 16.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.8%
--------------------------------------------------------------------------------
Tax Obligation/General 13.8%
--------------------------------------------------------------------------------
Transportation 12.1%
--------------------------------------------------------------------------------
Utilities 5.5%
--------------------------------------------------------------------------------
Consumer Staples 5.5%
--------------------------------------------------------------------------------
Other 10.2%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008.
Please see the Portfolio Managers' Commentary for an expanded discussion
of the affect on the Fund of changes to the ratings of certain bonds in
the portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(2) 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.
(3) The Fund paid shareholders a net ordinary income distribution in December
2007 of $.0033 per share.
-----
14
-----
NXZ | Nuveen Dividend
Performance | Advantage
OVERVIEW | Municipal Fund 2
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 66%
AA 9%
A 9%
BBB 10%
BB or Lower 5%
N/R 1%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.0765
Jun 0.0730
Jul 0.0730
Aug 0.0730
Sep 0.0730
Oct 0.0730
Nov 0.0730
Dec 0.0730
Jan 0.0730
Feb 0.0730
Mar 0.0730
Apr 0.0730
LINE CHART:
Common Share Price Performance -- Weekly Closing Price
5/01/07 17.10
17.19
17.16
17.06
16.84
16.80
16.12
15.76
15.60
15.81
15.76
15.47
15.54
15.55
15.62
15.26
14.61
14.95
15.30
15.94
15.48
15.32
15.50
15.34
15.35
15.56
15.37
15.50
14.95
14.47
14.62
14.92
15.17
15.17
15.08
14.80
15.56
15.68
15.55
15.90
15.97
16.15
14.85
14.56
14.24
14.65
14.11
14.18
14.65
14.70
14.63
14.72
14.95
4/30/08 15.00
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 15.00
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.02
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.13%
--------------------------------------------------------------------------------
Market Yield 5.84%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.11%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 441,733
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.79
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.65
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/27/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -0.25% -0.58%
--------------------------------------------------------------------------------
1-Year -6.57% 0.09%
--------------------------------------------------------------------------------
5-Year 6.87% 6.22%
--------------------------------------------------------------------------------
Since Inception 6.46% 7.12%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 16.0%
--------------------------------------------------------------------------------
Michigan 9.4%
--------------------------------------------------------------------------------
California 7.9%
--------------------------------------------------------------------------------
Illinois 7.7%
--------------------------------------------------------------------------------
New York 6.0%
--------------------------------------------------------------------------------
Colorado 5.7%
--------------------------------------------------------------------------------
Nevada 4.0%
--------------------------------------------------------------------------------
New Mexico 3.6%
--------------------------------------------------------------------------------
Louisiana 3.4%
--------------------------------------------------------------------------------
Washington 3.3%
--------------------------------------------------------------------------------
Missouri 3.2%
--------------------------------------------------------------------------------
Florida 3.2%
--------------------------------------------------------------------------------
Alabama 2.9%
--------------------------------------------------------------------------------
Oregon 2.5%
--------------------------------------------------------------------------------
Kansas 2.5%
--------------------------------------------------------------------------------
Massachusetts 2.2%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Other 14.3%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 36.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.0%
--------------------------------------------------------------------------------
Health Care 13.0%
--------------------------------------------------------------------------------
Transportation 10.6%
--------------------------------------------------------------------------------
Utilities 5.6%
--------------------------------------------------------------------------------
Consumer Staples 4.2%
--------------------------------------------------------------------------------
Other 12.2%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008.
Please see the Portfolio Managers' Commentary for an expanded discussion
of the affect on the Fund of changes to the ratings of certain bonds in
the portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(2) 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.
-----
15
-----
NZF | Nuveen Dividend
Performance | Advantage
OVERVIEW | Municipal Fund 3
as of April 30, 2008
Credit Quality (as a % of municipal bonds)(1,2)
PIE CHART:
AAA/U.S.
Guaranteed 68%
AA 11%
A 6%
BBB 6%
BB or Lower 2%
N/R 7%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.0705
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0675
Oct 0.0640
Nov 0.0640
Dec 0.0640
Jan 0.0640
Feb 0.0640
Mar 0.0640
Apr 0.0640
LINE CHART:
Common Share Price Performance -- Weekly Closing Price
5/01/07 15.80
15.86
15.90
15.82
15.60
15.47
14.96
14.65
14.67
14.88
14.96
14.73
14.66
14.39
14.44
14.26
14.10
14.08
14.45
14.66
14.58
14.25
14.32
14.13
13.95
13.98
13.90
13.77
13.21
13.01
13.16
13.41
13.52
13.28
13.16
13.41
14.29
14.43
14.40
14.65
14.61
14.82
13.55
13.42
13.08
13.73
13.22
13.05
13.36
13.62
13.54
13.62
13.66
4/30/08 13.72
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.72
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.56
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.77%
--------------------------------------------------------------------------------
Market Yield 5.60%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 7.78%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 587,814
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.99
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.01
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 9/25/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 1.87% -0.56%
--------------------------------------------------------------------------------
1-Year -8.31% -0.11%
--------------------------------------------------------------------------------
5-Year 5.85% 5.60%
--------------------------------------------------------------------------------
Since Inception 4.95% 6.40%
--------------------------------------------------------------------------------
States
(as a % of municipal bonds)(2)
--------------------------------------------------------------------------------
Illinois 12.4%
--------------------------------------------------------------------------------
Texas 11.2%
--------------------------------------------------------------------------------
Washington 10.0%
--------------------------------------------------------------------------------
California 8.9%
--------------------------------------------------------------------------------
Michigan 6.3%
--------------------------------------------------------------------------------
Colorado 4.3%
--------------------------------------------------------------------------------
Iowa 4.0%
--------------------------------------------------------------------------------
Indiana 3.8%
--------------------------------------------------------------------------------
Louisiana 3.0%
--------------------------------------------------------------------------------
Wisconsin 2.9%
--------------------------------------------------------------------------------
New Jersey 2.5%
--------------------------------------------------------------------------------
New York 2.5%
--------------------------------------------------------------------------------
Kentucky 2.1%
--------------------------------------------------------------------------------
Ohio 2.0%
--------------------------------------------------------------------------------
Missouri 1.9%
--------------------------------------------------------------------------------
Oklahoma 1.7%
--------------------------------------------------------------------------------
Oregon 1.6%
--------------------------------------------------------------------------------
Maryland 1.6%
--------------------------------------------------------------------------------
Georgia 1.6%
--------------------------------------------------------------------------------
Florida 1.6%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)(2)
--------------------------------------------------------------------------------
U.S. Guaranteed 24.6%
--------------------------------------------------------------------------------
Transportation 15.3%
--------------------------------------------------------------------------------
Health Care 14.0%
--------------------------------------------------------------------------------
Tax Obligation/General 11.1%
--------------------------------------------------------------------------------
Utilities 6.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 6.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.8%
--------------------------------------------------------------------------------
Consumer Staples 4.0%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008.
Please see the Portfolio Managers' Commentary for an expanded discussion
of the affect on the Fund of changes to the ratings of certain bonds in
the portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(2) Excluding derivative transactions.
(3) 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.
-----
16
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 0.2% (0.1% of Total Investments)
Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A:
$ 1,435 5.625%, 2/01/22 - FGIC Insured 8/08 at 100.50 Baa3 $ 934,572
1,505 5.375%, 2/01/27 - FGIC Insured 8/08 at 100.00 BB 980,056
------------------------------------------------------------------------------------------------------------------------------------
2,940 Total Alabama 1,914,628
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.2% (0.1% of Total Investments)
2,200 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,718,970
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.3% (0.9% of Total Investments)
1,000 Arizona State Transportation Board, Highway Revenue Bonds, Series 7/12 at 100.00 AAA 1,090,600
2002B, 5.250%, 7/01/22 (Pre-refunded 7/01/12)
Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport
Revenue Bonds, Series 2002B:
5,365 5.750%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AA- 5,568,441
5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AA- 5,220,652
------------------------------------------------------------------------------------------------------------------------------------
11,420 Total Arizona 11,879,693
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.5% (0.4% of Total Investments)
5,080 Independence County, Arkansas, Hydroelectric Power Revenue Bonds, 5/13 at 100.00 B 3,903,574
Series 2003, 5.350%, 5/01/28 - ACA Insured
1,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 BBB 904,410
Regional Medical Center, Series 2005A, 5.000%, 2/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,080 Total Arkansas 4,807,984
------------------------------------------------------------------------------------------------------------------------------------
California - 16.0% (10.3% of Total Investments)
3,500 Alameda Corridor Transportation Authority, California, Subordinate 10/17 at 100.00 AAA 2,895,060
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC
Insured
11,000 Anaheim Public Finance Authority, California, Subordinate Lease No Opt. Call AAA 6,024,920
Revenue Bonds, Public Improvement Project, Series 1997C,
0.000%, 9/01/20 - FSA Insured
California Department of Water Resources, Power Supply Revenue
Bonds, Series 2002A:
4,000 6.000%, 5/01/15 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 4,508,840
3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,504,343
3,365 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 3,173,094
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
5,000 5.000%, 4/01/37 4/16 at 100.00 A+ 4,843,800
7,000 5.250%, 4/01/39 4/16 at 100.00 A+ 6,957,300
2,380 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 2,384,546
Bonds, J. David Gladstone Institutes, Series 2001, 5.250%,
10/01/34
3,500 California Pollution Control Financing Authority, Revenue Bonds, 6/17 at 100.00 A3 3,037,755
Pacific Gas and Electric Company, Series 2004C, 4.750%,
12/01/23 - FGIC Insured (Alternative Minimum Tax)
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 5,022,200
16,000 California, Variable Purpose Bonds, 5.000%, 6/01/37 (UB) 6/17 at 100.00 A1 15,998,080
-----
17
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 6,435 California, General Obligation Refunding Bonds, Series 2002,
6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA $ 7,392,785
5,000 Coast Community College District, Orange County, California, General 8/18 at 100.00 AAA 3,770,400
Obligation Bonds, Series 2006C, 0.000%, 8/01/32 - FSA Insured
1,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,213,965
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 11,521,900
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
8,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 7,550,160
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/45
1,000 Mt. Diablo Hospital District, California, Insured Hospital Revenue 6/08 at 100.00 AAA 1,051,640
Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC Insured (ETM)
13,450 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 16,103,685
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.200%, 8/01/17 - MBIA Insured
7,770 Palmdale Community Redevelopment Agency, California, Residential No Opt. Call AAA 8,158,811
Mortgage Revenue Refunding Bonds, Series 1991A, 7.150%,
2/01/10 (ETM)
2,325 Palmdale Community Redevelopment Agency, California, Restructured No Opt. Call AAA 3,033,730
Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%,
4/01/16 (Alternative Minimum Tax) (ETM)
2,000 San Francisco Airports Commission, California, Revenue Bonds, San 5/09 at 101.00 A1(4) 2,079,060
Francisco International Airport, Second Series 1999, Issue 23B,
5.125%, 5/01/30 (Pre-refunded 5/01/09) - FGIC Insured
2,000 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 A1 2,026,340
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27B, 5.125%, 5/01/26 - FGIC Insured
3,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 602,760
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AAA 18,128,005
California, General Obligation Refunding Bonds, Series 1997A,
7.200%, 2/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
142,145 Total California 140,983,179
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 6.7% (4.3% of Total Investments)
5,240 Adams 12 Five Star Schools, Adams County, Colorado, General 12/15 at 100.00 AAA 5,441,530
Obligation Bonds, Series 2005, 5.000%, 12/15/24 - FSA Insured
3,000 Colorado Educational and Cultural Facilities Authority, Charter 8/14 at 100.00 A 3,038,220
School Revenue Bonds, Peak-to-Peak Charter School, Series 2004,
5.250%, 8/15/34 - XLCA Insured
5,860 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA(4) 6,313,623
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
(Pre-refunded 9/01/11)
20,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 A3(4) 21,664,799
Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%,
12/01/33 (Pre-refunded 12/01/13) - XLCA Insured
12,615 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 6,166,212
Series 1997B, 0.000%, 9/01/21 - MBIA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 2000B:
15,700 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 3,751,201
33,000 0.000%, 9/01/33 - MBIA Insured No Opt. Call AAA 7,415,760
18,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series No Opt. Call AAA 3,530,170
2004A, 0.000%, 3/01/36 - MBIA Insured
755 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 787,359
Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured
1,330 University of Colorado Hospital Authority, Revenue Bonds, Series 11/09 at 101.00 Aaa 1,331,849
1999A, 5.000%, 11/15/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
116,000 Total Colorado 59,440,723
------------------------------------------------------------------------------------------------------------------------------------
-----
18
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.8% (1.2% of Total Investments)
$ 5,275 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB $ 5,323,425
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
5,590 District of Columbia, General Obligation Bonds, Series 1999B, 6/09 at 101.00 AAA 5,814,606
5.500%, 6/01/13 - FSA Insured
5,000 Washington Convention Center Authority, District of Columbia, Senior 10/16 at 100.00 AAA 4,710,050
Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%, 10/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,865 Total District of Columbia 15,848,081
------------------------------------------------------------------------------------------------------------------------------------
Florida - 7.0% (4.5% of Total Investments)
Broward County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Venice Homes Apartments, Series 2001A:
1,545 5.700%, 1/01/32 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,501,879
1,805 5.800%, 1/01/36 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,758,756
5,300 Escambia County Health Facilities Authority, Florida, Revenue Bonds, No Opt. Call Aa1 5,753,468
Ascension Health Credit Group, Series 2003A, 5.250%, 11/15/14
2,100 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/10 at 100.00 AAA 2,120,979
Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA Insured
(Alternative Minimum Tax)
10,050 Florida State Board of Education, Full Faith and Credit Public 6/10 at 101.00 AAA 10,594,208
Education Capital Outlay Refunding Bonds, Series 2000D,
5.750%, 6/01/22
7,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 7,109,410
Tampa International Airport, Series 2003A, 5.250%, 10/01/17 -
MBIA Insured (Alternative Minimum Tax)
10,000 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 5.000%, 4/15 at 100.00 AAA 10,139,100
10/01/41 - FSA Insured
10,750 Martin County Industrial Development Authority, Florida, Industrial 6/08 at 100.00 BB+ 10,773,435
Development Revenue Bonds, Indiantown Cogeneration LP, Series
1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
2,570 Miami-Dade County Housing Finance Authority, Florida, Multifamily 6/11 at 100.00 AAA 2,587,836
Mortgage Revenue Bonds, Country Club Villas II Project, Series
2001-1A, 5.850%, 1/01/37 - FSA Insured (Alternative Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 3,217,550
International Airport, Series 2005A, 5.000%, 10/01/37 - XLCA
Insured (Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community Development 5/12 at 102.00 AA 1,706,426
District, Special Assessment Bonds, Commercial Project, Series
2002A, 5.625%, 5/01/32 - RAAI Insured
4,500 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AAA 4,538,925
Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/40 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
60,820 Total Florida 61,801,972
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.2% (2.1% of Total Investments)
4,920 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 1/10 at 101.00 A+(4) 5,216,135
2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured
5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 1999A, No Opt. Call A 5,290,150
5.500%, 11/01/22 - FGIC Insured
2,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AAA 2,023,860
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - MBIA Insured (Alternative Minimum
Tax)
15,000 Private Colleges and Universities Authority, Georgia, Revenue Bonds, 11/09 at 101.00 AA(4) 15,829,500
Emory University, Series 1999A, 5.500%, 11/01/25
(Pre-refunded 11/01/09)
------------------------------------------------------------------------------------------------------------------------------------
26,920 Total Georgia 28,359,645
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.1% (0.1% of Total Investments)
450 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1/10 at 100.00 Aa3 456,372
Series 2000D, 6.200%, 7/01/14 (Alternative Minimum Tax)
285 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/10 at 100.00 Aa2 292,079
Series 2000G-2, 5.950%, 7/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
735 Total Idaho 748,451
------------------------------------------------------------------------------------------------------------------------------------
-----
19
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 22.4% (14.4% of Total Investments)
$ 10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- $ 5,759,000
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%,
12/01/19 - FGIC Insured
10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 5,424,000
Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%,
12/01/20 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, City Colleges, Series 1999:
32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AA- 16,954,233
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AA- 16,260,186
9,145 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1996A, 7/08 at 100.50 AAA 9,202,705
5.500%, 1/01/29 - MBIA Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, O'Hare 1/16 at 100.00 A1 1,623,408
International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC
Insured
DuPage County Forest Preserve District, Illinois, General Obligation
Bonds, Series 2000:
8,000 0.000%, 11/01/18 No Opt. Call AAA 5,044,080
15,285 0.000%, 11/01/19 No Opt. Call AAA 9,089,378
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,957,500
Hospital, Series 2008A, 5.250%, 8/15/47 (WI/DD, Settling 5/15/08)
AGC Insured
3,530 Illinois Finance Authority, Revenue Bonds, University of 7/17 at 100.00 AA 3,474,932
Chicago, Series 2007, Trust 73TP, 9.858%, 7/01/46 (IF)
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,009,600
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
1,180 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 1,204,166
Forest Hospital, Series 2002A, 5.750%, 7/01/29
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 3,092,940
Forest Hospital, Series 2003, 6.000%, 7/01/33
4,580 Illinois Health Facilities Authority, Revenue Bonds, Midwest 8/10 at 102.00 Aaa 4,783,535
Care Center IX Inc., Series 2000, 6.250%, 8/20/35
2,410 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A 2,501,942
Cross Hospital and Medical Centers, Series 1999, 5.250%,
8/15/15 (Mandatory put 4/01/08)
7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, Community 12/13 at 57.71 AA- 2,941,688
College District 516, General Obligation Bonds, Series 2005E,
0.000%, 12/15/24 - FGIC Insured
3,700 Libertyville, Illinois, Affordable Housing Revenue Bonds, 11/09 at 100.00 Aaa 3,938,465
Liberty Towers Project, Series 1999A, 7.000%, 11/01/29
(Pre-refunded 11/01/09) (Alternative Minimum Tax)
6,000 McHenry County Conservation District, Illinois, General 2/11 at 100.00 Aa1(4) 6,473,580
Obligation Bonds, Series 2001A, 5.625%, 2/01/21 (Pre-refunded
2/01/11) - FGIC Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,114,750
Bonds, McCormick Place Expansion Project, Series 2002A, 5.250%,
6/15/42 - MBIA Insured
10,650 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 13,457,979
Bonds, McCormick Place Hospitality Facility, Series 1996A,
7.000%, 7/01/26 (ETM)
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series 1996A:
9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 5,858,456
16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 9,138,024
23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 11,519,012
13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 5,664,360
5,100 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 5,679,768
Refunding Bonds, McCormick Place Expansion Project, Series 1998A,
5.500%, 12/15/23 - FGIC Insured
5,180 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 5,829,935
Refunding Bonds, McCormick Place Expansion Project, Series 1998A,
5.500%, 12/15/23 - FGIC Insured (ETM)
17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 20,445,241
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999, 5.750%, 6/01/23 - FSA Insured
-----
20
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding Bonds, Villa 10/09 at 102.00 AAA $ 6,337,498
Vianney, Series 1999A, 6.450%, 10/01/29
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 4,880,700
Illinois, General Obligation Bonds, Series 2006, 0.000%,
1/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
278,990 Total Illinois 197,661,061
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 7.7% (4.9% of Total Investments)
2,465 Danville Multi-School Building Corporation, Indiana, First Mortgage 7/11 at 100.00 AAA 2,557,142
Refunding Bonds, Series 2001, 5.250%, 7/15/18 - AMBAC Insured
3,000 Hospital Authority of Delaware County, Indiana, Hospital Revenue 8/16 at 100.00 Baa2 2,544,660
Bonds, Cardinal Health System, Series 2006, 5.250%, 8/01/36
14,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 8/10 at 101.50 AAA 15,124,620
Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30
(Pre-refunded 8/15/10) - MBIA Insured
750 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 2/16 at 100.00 A+ 749,948
Clarian Health Obligation Group, Series 2006B, 5.000%, 2/15/23
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,862,075
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
Indiana Health Facility Financing Authority, Revenue Bonds,
Ancilla Systems Inc. Obligated Group, Series 1997:
15,380 5.250%, 7/01/17 - MBIA Insured (ETM) 6/08 at 101.00 AAA 15,565,175
4,320 5.250%, 7/01/22 - MBIA Insured (ETM) 6/08 at 101.00 AAA 4,368,816
2,250 5.250%, 7/01/22 - MBIA Insured (ETM) 6/08 at 101.00 AAA 2,275,425
3,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB- 2,635,770
Community Foundation of Northwest Indiana, Series 2007, 5.500%,
3/01/37
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,000,000
Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 -
AMBAC Insured
Indiana Transportation Finance Authority, Highway Revenue Bonds,
Series 2000:
1,285 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA(4) 1,376,196
6,715 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA(4) 7,191,564
3,105 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 3,263,759
5.250%, 8/01/20 - FGIC Insured
1,000 Marion County Convention and Recreational Facilities Authority, 6/11 at 100.00 AAA 1,020,920
Indiana, Excise Taxes Lease Rental Revenue Refunding Senior
Bonds, Series 2001A, 5.000%, 6/01/21 - MBIA Insured
2,395 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,323,126
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/26 -
MBIA Insured
1,800 Sunman Dearborn High School Building Corporation, Indiana, First 1/15 at 100.00 AAA 1,856,754
Mortgage Bonds, Series 2005, 5.000%, 7/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
65,965 Total Indiana 67,715,950
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.8% (1.1% of Total Investments)
1,500 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BBB- 1,429,620
Initiatives Project, Series 2006A, 5.500%, 7/01/21
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue
Bonds, Series 2005C:
5,000 5.375%, 6/01/38 6/15 at 100.00 BBB 4,254,800
5,300 5.625%, 6/01/46 6/15 at 100.00 BBB 4,602,308
5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed 6/11 at 101.00 AAA 5,443,250
Revenue Bonds, Series 2001B, 5.600%, 6/01/35 (Pre-refunded
6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
16,800 Total Iowa 15,729,978
------------------------------------------------------------------------------------------------------------------------------------
-----
21
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.4% (0.9% of Total Investments)
$ 3,790 Kansas Department of Transportation, Highway Revenue Bonds, Series 3/14 at 100.00 AAA $ 3,949,256
2004A, 5.000%, 3/01/23
5,790 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 5,675,300
General Obligation Bonds, Series 2000, 3.500%, 9/01/17
3,200 Wyandotte County Unified School District 500, Kansas, General 9/11 at 100.00 AAA 3,158,496
Obligation Bonds, Series 2001, 4.000%, 9/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Kansas 12,783,052
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.9% (1.9% of Total Investments)
770 East Baton Rouge Mortgage Finance Authority, Louisiana, GNMA/FNMA 10/08 at 101.50 Aaa 779,794
Mortgage-Backed Securities Program Single Family Mortgage Revenue
Refunding Bonds, Series 1997B-1, 5.750%, 10/01/26
4,000 Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, 11/14 at 100.00 AAA 4,169,800
Series 2004, 5.250%, 11/01/25 - MBIA Insured
4,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 4,720,587
General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
10,000 5.500%, 5/15/30 5/11 at 101.00 BBB 9,698,000
6,680 5.875%, 5/15/39 5/11 at 101.00 BBB 6,320,883
------------------------------------------------------------------------------------------------------------------------------------
26,100 Total Louisiana 25,689,064
------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.7% (0.4% of Total Investments)
5,680 Portland, Maine, Airport Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AAA 5,733,676
7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.7% (1.1% of Total Investments)
7,720 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 7,741,462
Baltimore-Washington International Airport Passenger Facility,
Series 2002B, 5.125%, 3/01/20 - AMBAC Insured (Alternative
Minimum Tax)
6,865 Takoma Park, Maryland, Hospital Facilities Revenue Refunding and No Opt. Call AAA 7,450,790
Improvement Bonds, Washington Adventist Hospital, Series 1995,
6.500%, 9/01/12 - FSA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
14,585 Total Maryland 15,192,252
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 6.0% (3.8% of Total Investments)
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
4,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 4,064,440
5,625 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,690,531
995 Massachusetts Educational Finance Authority, Student Loan Revenue 12/09 at 101.00 N/R 1,027,238
Refunding Bonds, Series 2000G, 5.700%, 12/01/11 - MBIA Insured
(Alternative Minimum Tax)
8,730 Massachusetts Health and Educational Facilities Authority, Revenue 10/15 at 100.00 AAA 9,162,484
Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 -
AGC Insured
1,530 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 101.00 Aaa 1,475,762
Bonds, Southcoast Health System Obligated Group, Series 1998A,
4.750%, 7/01/27 - MBIA Insured
5,745 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102.00 BBB 5,753,273
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
10,150 Massachusetts Turnpike Authority, Metropolitan Highway System 7/08 at 101.00 AAA 10,156,598
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured
890 Massachusetts, General Obligation Bonds, Consolidated Loan, Series 11/12 at 100.00 AA(4) 965,748
2002C, 5.250%, 11/01/30 (Pre-refunded 11/01/12)
Massachusetts, General Obligation Bonds, Consolidated Loan, Series
2002E:
1,255 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AA(4) 1,359,190
3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AA(4) 4,055,910
-----
22
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts (continued)
$ 8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 AAA $ 9,020,625
Massachusetts, Lease Revenue Bonds, Series 2000, 5.375%, 6/15/33
(Pre-refunded 6/15/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,165 Total Massachusetts 52,731,799
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.8% (3.1% of Total Investments)
6,155 Birmingham City School District, Oakland County, Michigan, School 5/08 at 100.00 AAA 6,165,894
Building and Site Bonds, Series 1998, 4.750%, 11/01/24 - FSA
Insured
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AAA 5,017,600
Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
3,930 Hancock Hospital Finance Authority, Michigan, FHA-Insured Mortgage 8/08 at 100.00 AAA 3,962,698
Hospital Revenue Bonds, Portage Health System Inc.,
Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) - MBIA
Insured
1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,530,150
Program, Series 2001I, 5.000%, 10/15/24
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,052,200
Facilities Program, Series 2003II, 5.000%, 10/15/29 - MBIA
Insured
7,115 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1(4) 7,847,560
Refunding Bonds, Henry Ford Health System, Series 2003A, 5.500%,
3/01/16 (Pre-refunded 3/01/13)
3,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 3,015,150
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit Metropolitan 12/08 at 101.00 AAA 10,130,200
Wayne County Airport, Series 1998A, 5.375%, 12/01/16 - MBIA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
41,700 Total Michigan 42,721,452
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 3.0% (1.9% of Total Investments)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 A(4) 3,202,440
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26
(Pre-refunded 1/01/11) - FGIC Insured
19,515 St. Paul Housing and Redevelopment Authority, Minnesota, Sales Tax 11/15 at 103.00 AAA 23,421,314
Revenue Refunding Bonds, Civic Center Project, Series 1996,
7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,515 Total Minnesota 26,623,754
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.4% (0.9% of Total Investments)
9,750 Mississippi Business Finance Corporation, Pollution Control Revenue 10/08 at 100.00 BBB 9,711,878
Refunding Bonds, System Energy Resources Inc. Project, Series
1998, 5.875%, 4/01/22
2,475 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,488,167
Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%,
9/01/24
------------------------------------------------------------------------------------------------------------------------------------
12,225 Total Mississippi 12,200,045
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.7% (1.1% of Total Investments)
6,350 Kansas City, Missouri, Airport Revenue Bonds, General Improvement 9/12 at 100.00 A+ 6,580,124
Projects, Series 2003B, 5.250%, 9/01/17 - FGIC Insured
1,845 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 1,917,472
Bonds, BJC Health System, Series 2003, 5.250%, 5/15/18
3,815 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 4,131,721
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28
(Pre-refunded 6/01/11) - AMBAC Insured
2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,036,000
Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink
Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,010 Total Missouri 14,665,317
------------------------------------------------------------------------------------------------------------------------------------
-----
23
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.6% (0.4% of Total Investments)
$ 595 Montana Board of Housing, Single Family Mortgage Bonds, Series 12/09 at 100.00 AA+ $ 612,422
2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
4,795 Montana Higher Education Student Assistance Corporation, Student 12/08 at 101.00 A2 4,744,748
Loan Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,390 Total Montana 5,357,170
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.2% (0.1% of Total Investments)
1,370 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 1,386,303
Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 3.7% (2.3% of Total Investments)
10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,983,242
Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) - MBIA
Insured
6,980 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 5,577,020
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured
Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare
West, Series 2007A,
10,000 5.250%, 07/01/31 (UB) 7/17 at 100.00 A 9,737,800
5,000 5.250%, 7/01/31 7/17 at 100.00 A 4,868,900
------------------------------------------------------------------------------------------------------------------------------------
32,880 Total Nevada 32,166,962
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 1.6% (1.0% of Total Investments)
3,265 New Hampshire Health and Education Facilities Authority, Revenue 1/15 at 100.00 BBB- 2,788,963
Bonds, Southern New Hampshire University, Series 2005, 5.000%,
1/01/30 - ACA Insured
New Hampshire Housing Finance Authority, FHLMC Multifamily Housing
Remarketed Revenue Bonds, Countryside LP, Series 1994:
3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,834,627
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,091,956
------------------------------------------------------------------------------------------------------------------------------------
13,935 Total New Hampshire 13,715,546
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 8.1% (5.2% of Total Investments)
3,000 New Jersey Economic Development Authority, Transportation Sublease 5/09 at 100.00 AAA 3,093,120
Revenue Bonds, Light Rail Transit System, Series 1999A, 5.250%,
5/01/17 (Pre-refunded 5/01/09) - FSA Insured
2,110 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 AAA 2,199,506
Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA Insured
(Alternative Minimum Tax)
4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 5,147,325
System Bonds, Series 2001C, 5.500%, 12/15/18 - FSA Insured
9,250 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 10,325,775
System Bonds, Series 2003C, 5.500%, 6/15/23 (Pre-refunded
6/15/13)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
35,000 0.000%, 12/15/29 - FSA Insured No Opt. Call AAA 11,679,850
10,000 0.000%, 12/15/30 - FGIC Insured No Opt. Call AA- 3,076,900
10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AAA 10,489,000
1/01/20 - FSA Insured
11,960 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 12,975,882
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
4,450 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 5,181,402
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
West Deptford Township, Gloucester County, New Jersey, General
Obligation Bonds, Series 2000:
3,150 5.500%, 9/01/21 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Baa1(4) 3,367,319
3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Baa1(4) 3,565,082
------------------------------------------------------------------------------------------------------------------------------------
96,755 Total New Jersey 71,101,161
------------------------------------------------------------------------------------------------------------------------------------
-----
24
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York - 10.1% (6.5% of Total Investments)
$ 5,500 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/14 at 100.00 AAA $ 5,655,155
Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25
2,070 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,097,842
Bonds, 853 Schools Program, Gateway-Longview Inc., Series 1998A,
5.500%, 7/01/18 - AMBAC Insured
2,250 Dormitory Authority of the State of New York, Lease Revenue Bonds, 7/09 at 101.00 AAA 2,359,125
State University Dormitory Facilities, Series 1999C, 5.500%,
7/01/29 (Pre-refunded 7/01/09) - MBIA Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 AA 1,656,662
9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 9,528,488
1,500 Dormitory Authority of the State of New York, Revenue Bonds, St. 8/08 at 100.00 AAA 1,505,955
Barnabas Hospital, Series 1997, 5.450%, 8/01/35 - AMBAC Insured
17,000 Dormitory Authority of the State of New York, Third General 7/09 at 101.00 AAA 17,824,500
Resolution Consolidated Revenue Bonds, City University System,
Series 1999-1, 5.500%, 7/01/29 (Pre-refunded 7/01/09) - FSA
Insured
1,500 Hempstead Industrial Development Agency, New York, Resource No Opt. Call Baa3 1,498,320
Recovery Revenue Refunding Bonds, American Ref-Fuel Company of
Hempstead LP, Series 2001, 5.000%, 12/01/10 (Mandatory put
6/01/10)
13,220 Metropolitan Transportation Authority, New York, Dedicated Tax Fund 11/12 at 100.00 AAA 14,075,334
Bonds, Series 2002A, 5.500%, 11/15/26 - FSA Insured
4,545 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 4,286,571
Revenue Bonds, Series 2006B, Drivers 1662, 8.132%, 11/15/32 -
FSA Insured (IF)
10,000 New York City Municipal Water Finance Authority, New York, Water 6/09 at 101.00 AA+(4) 10,498,800
and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%,
6/15/30 (Pre-refunded 6/15/09)
7,810 New York City Transitional Finance Authority, New York, Future Tax 8/09 at 101.00 AAA 8,239,472
Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded
8/15/09)
5 New York City, New York, General Obligation Bonds, Fiscal Series No Opt. Call AA 5,079
1987D, 8.500%, 8/01/08
6,300 New York City, New York, General Obligation Bonds, Fiscal Series 5/10 at 101.00 AAA 6,780,501
2000A, 6.250%, 5/15/26 - FSA Insured
3,000 New York State Energy Research and Development Authority, Pollution 9/08 at 102.00 AAA 3,034,050
Control Revenue Bonds, Rochester Gas and Electric Corporation,
Series 1998A, 5.950%, 9/01/33 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
85,515 Total New York 89,045,854
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.8% (0.5% of Total Investments)
4,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA-(4) 5,321,792
Healthcare System Revenue Bonds, DBA Carolinas Healthcare System,
Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
2,000 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 7/08 at 102.00 AAA 2,038,860
Bonds, Series 1998A, 5.000%, 1/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,900 Total North Carolina 7,360,652
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 5.5% (3.5% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
355 5.125%, 6/01/24 6/17 at 100.00 BBB 334,385
3,570 5.875%, 6/01/30 6/17 at 100.00 BBB 3,321,885
3,475 5.750%, 6/01/34 6/17 at 100.00 BBB 3,141,365
9,355 5.875%, 6/01/47 6/17 at 100.00 BBB 8,278,427
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,400,288
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-3, 0.000%, 6/01/37
6,720 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 6,756,221
5.000%, 1/01/31 - FSA Insured
-----
25
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Ohio (continued)
$ 780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA $ 819,078
5.000%, 1/01/31 (Pre-refunded 1/01/10) - FSA Insured
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,650,000
Initiatives, Series 2004A, 5.000%, 5/01/30
95 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 7/09 at 100.00 Aaa 96,058
Program Residential Mortgage Revenue Bonds, Series 1999C,
5.750%, 9/01/30 (Alternative Minimum Tax)
6,100 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/08 at 102.00 N/R 5,811,531
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
12,900 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 12,950,955
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
52,150 Total Ohio 48,560,193
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.4% (0.2% of Total Investments)
3,400 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 12/08 at 100.00 B 3,384,428
American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.1% (0.7% of Total Investments)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call BBB 9,283,316
Portland General Electric Company, Series 1985B, 4.800%, 6/01/10
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.2% (2.1% of Total Investments)
Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania,
Guaranteed Water Revenue Bonds, Series 1998:
3,125 0.000%, 5/15/22 - FSA Insured No Opt. Call AAA 1,587,938
3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,497,719
3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,419,653
3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,273,989
4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,632,218
2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 1,004,696
3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 1,049,280
2,050 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,080,955
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
11,000 Delaware County Authority, Pennsylvania, Revenue Bonds, Catholic 11/08 at 102.00 AAA 11,157,410
Health East, Series 1998A, 4.875%, 11/15/18 - AMBAC Insured
Pennsylvania Economic Development Financing Authority, Senior Lien
Resource Recovery Revenue Bonds, Northampton Generating Project,
Series 1994A:
700 6.400%, 1/01/09 (Alternative Minimum Tax) 7/08 at 100.00 B+ 696,808
4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 7/08 at 100.00 B+ 4,513,185
400 Pennsylvania Economic Development Financing Authority, Subordinate 7/08 at 100.00 N/R 393,620
Resource Recovery Revenue Bonds, Northampton Generating
Project, Series 1994C, 6.875%, 1/01/11 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
41,135 Total Pennsylvania 28,307,471
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.2% (1.4% of Total Investments)
1,250 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/10 at 101.00 AAA 1,354,088
Bonds, Series 2000B, 5.875%, 7/01/21 (Pre-refunded 7/01/10) -
MBIA Insured
25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AAA 2,757,500
Bonds, Series 2007A, 0.000%, 8/01/47 - AMBAC Insured
15,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 A1 15,031,350
Bonds, 5.250%, 8/01/57 (UB)
------------------------------------------------------------------------------------------------------------------------------------
41,250 Total Puerto Rico 19,142,938
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.7% (0.4% of Total Investments)
2,000 Kent County Water Authority, Rhode Island, General Revenue Bonds, 7/12 at 100.00 AAA 2,048,600
Series 2002A, 5.000%, 7/15/23 - MBIA Insured
-----
26
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island (continued)
Rhode Island Health and Educational Building Corporation, Revenue
Refunding Bonds, Salve Regina University, Series 2002:
$ 1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA $ 1,297,724
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,107,896
1,335 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 1,317,378
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
5,675 Total Rhode Island 5,771,598
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 4.2% (2.7% of Total Investments)
2,625 Medical University Hospital Authority, South Carolina, FHA-Insured 8/14 at 100.00 AAA 2,709,866
Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/25 - MBIA
Insured
22,855 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 6,350,033
Bonds, Series 2004A-2, 0.000%, 1/01/31 - AMBAC Insured
6,925 South Carolina, General Obligation Bonds, Series 1999A, 4.000%, 10/09 at 101.00 Aaa 7,059,345
10/01/14
21,050 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 21,206,611
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%,
5/15/22
------------------------------------------------------------------------------------------------------------------------------------
53,455 Total South Carolina 37,325,855
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.3% (0.8% of Total Investments)
2,860 Johnson City Health and Educational Facilities Board, Tennessee, 7/23 at 100.00 AAA 2,914,083
Hospital Revenue Refunding and Improvement Bonds, Johnson City
Medical Center, Series 1998C, 5.125%, 7/01/25
(Pre-refunded 7/01/23) - MBIA Insured
1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue 3/10 at 101.00 AAA 1,731,705
Bonds, Series 1999D,6.000%, 3/01/24 - AMBAC Insured
(Alternative Minimum Tax)
6,000 Metropolitan Government of Nashville-Davidson County Health and 12/17 at 100.00 AAA 6,983,700
Educational Facilities Board, Tennessee, Revenue Refunding
and Improvement Bonds, Meharry Medical College, Series 1996,
6.000%, 12/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,560 Total Tennessee 11,629,488
------------------------------------------------------------------------------------------------------------------------------------
Texas - 7.6% (4.9% of Total Investments)
3,975 Bell County Health Facilities Development Corporation, Texas, 2/10 at 101.00 AAA 4,266,686
Revenue Bonds, Scott and White Memorial Hospital and Scott,
Sherwood and Brindley Foundation,Series 2000A, 6.125%, 8/15/23
(Pre-refunded 2/15/10) - MBIA Insured
5,000 Bexar Metropolitan Water District, Texas, Waterworks System Revenue 5/16 at 100.00 AAA 5,052,550
Bonds, Series 2006, 5.000%, 5/01/35 - MBIA Insured
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- 3,618,200
13,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 BBB- 11,488,490
1,625 Harris County Health Facilities Development Corporation, Texas, 7/09 at 101.00 AAA 1,692,990
Revenue Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24
(Pre-refunded 7/01/09) - MBIA Insured
4,000 Houston Community College, Texas, Limited Tax General Obligation 2/13 at 100.00 AAA 4,081,640
Bonds, Series 2003, 5.000%, 2/15/27 - AMBAC Insured
3,885 Houston Independent School District, Public Facility Corporation, No Opt. Call AAA 2,272,570
Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez High
School, Series 1998A, 0.000%, 9/15/19 - AMBAC Insured
33,855 Leander Independent School District, Williamson and Travis 8/14 at 23.67 AAA 5,677,822
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/40
Leander Independent School District, Williamson and Travis
Counties, Texas, Unlimited Tax School Building and Refunding
Bonds, Series 1998:
4,930 0.000%, 8/15/20 8/08 at 51.84 AAA 2,519,279
3,705 0.000%, 8/15/22 8/08 at 46.15 AAA 1,684,886
-----
27
-----
NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 225 Lubbock Housing Finance Corporation, Texas, GNMA Mortgage-Backed 5/08 at 102.00 AAA $ 227,961
Securities Program Single Family Mortgage Revenue Refunding Bonds,
Series 1997A, 6.125%, 12/01/17
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 5.000%, 3/12 at 100.00 Aaa 3,741,000
3/01/27 (Pre-refunded 3/01/12) - FGIC Insured
6,835 San Antonio, Texas, Electric and Gas System Revenue Refunding 2/09 at 100.00 Aa1 6,846,551
Bonds, New Series 1998A, 4.500%, 2/01/21
6,000 Spring Branch Independent School District, Harris County, Texas, 2/11 at 100.00 AAA 6,394,440
Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%,
2/01/26 (Pre-refunded 2/01/11)
4,000 Tarrant Regional Water District, Texas, Water Revenue Refunding and 3/13 at 100.00 AAA 4,172,320
Improvement Bonds, Series 1999, 5.000%, 3/01/22 - FSA Insured
1,740 Texas, General Obligation Bonds, Water Financial Assistance, State 8/09 at 100.00 AAA 1,775,322
Participation Program, Series 1999C, 5.500%, 8/01/29 - MBIA
Insured
1,690 Webb County, Laredo, Texas, Combination Tax and Sewer System, 8/08 at 100.00 AAA 1,690,541
Revenue Certificates of Obligation, Series 1998A, 4.500%,
2/15/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
101,945 Total Texas 67,203,248
------------------------------------------------------------------------------------------------------------------------------------
Utah - 3.1% (2.0% of Total Investments)
Utah County, Utah, Hospital Revenue Bonds, IHC Health Services
Inc., Series 1997:
12,885 5.250%, 8/15/21 - MBIA Insured (ETM) 6/08 at 101.00 AAA 12,984,343
3,900 5.250%, 8/15/26 - MBIA Insured (ETM) 6/08 at 101.00 AAA 3,930,069
2,510 Utah Housing Corporation, Single Family Mortgage Bonds, Series 1/12 at 100.00 AA- 2,608,292
2002A-1, 5.300%, 7/01/18
(Alternative Minimum Tax)
10 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1/10 at 100.00 AA 10,290
2000B, 6.250%, 7/01/22 (Alternative Minimum Tax)
1,070 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/10 at 100.00 AA- 1,084,295
2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax)
590 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/10 at 100.00 AA 606,609
2000E-1, Class II, 6.150%, 1/01/27 (Alternative Minimum Tax)
1,340 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/10 at 100.00 AA- 1,357,165
2000E-1, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax)
835 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/11 at 100.00 AA 835,409
2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax)
650 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1/11 at 100.00 Aaa 665,841
2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax)
3,000 Utah Water Finance Agency, Revenue Bonds, Pooled Loan Financing 10/12 at 100.00 Aaa 3,287,130
Program, Series 2002C, 5.250%, 10/01/28 (Pre-refunded 10/01/12) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,790 Total Utah 27,369,443
------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands - 0.8% (0.5% of Total Investments)
4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/14 at 100.00 AA 4,422,935
Note, Series 2003, 5.000%, 10/01/33 - RAAI Insured
2,500 Virgin Islands Public Finance Authority, Revenue Bonds, Refinery 1/14 at 100.00 BBB 2,502,700
Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Virgin Islands 6,925,635
------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.1% (3.3% of Total Investments)
12,235 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA 4,700,442
River-Rock Island Hydro-Electric System Revenue Refunding Bonds,
Series 1997A, 0.000%, 6/01/26 - MBIA Insured
3,100 Cowlitz County Public Utilities District 1, Washington, Electric 9/14 at 100.00 A- 3,104,805
Production Revenue Bonds, Series 2004, 5.000%, 9/01/28 - FGIC
Insured
-----
28
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 5,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/13 at 100.00 Aaa $ 5,419,650
Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
10,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/16 at 100.00 AA 9,495,200
Providence Health Care Services, Series 2006A, 4.625%, 10/01/34 -
FGIC Insured
4,685 Washington State Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 4,953,076
Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded
12/01/09) - MBIA Insured
5,000 Washington State Housing Finance Commission, Non-Profit Housing 7/09 at 101.00 AA 5,072,800
Revenue Bonds, Kline Galland Center, Series 1999, 6.000%,
7/01/29 - RAAI Insured
12,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, Series 1/11 at 100.00 AA+ 12,247,440
2001D, 5.250%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
52,020 Total Washington 44,993,413
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.6% (0.4% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,895,100
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.5% (1.6% of Total Investments)
11,620 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 12,079,920
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/29 -
RAAI Insured
7,490 Wisconsin Health and Educational Facilities Authority, Revenue 7/08 at 103.00 N/R 7,466,257
Bonds, Millennium Housing Foundation Inc., Series 1998, 6.100%,
1/01/28
3,270 Wisconsin Housing and Economic Development Authority, Home 9/14 at 100.00 AA 2,171,476
Ownership Revenue Bonds, Residual Trust 1517, 9.214%, 3/01/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
22,380 Total Wisconsin 21,717,653
------------------------------------------------------------------------------------------------------------------------------------
$ 1,622,495 Total Investments (cost $1,329,591,698) - 155.9% 1,373,594,153
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.5)% (30,750,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 17,285,400
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.4)% (5) (479,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 881,129,553
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. Please see
the Portfolio Managers' Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.9)%.
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 pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
29
-----
NMA | Nuveen Municipal Advantage Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 3.3% (2.0% of Total Investments)
$ 10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $ 10,338,000
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded 2/01/09) -
FGIC Insured
5,075 Lauderdale County and Florence Healthcare Authority, Alabama, 7/09 at 101.00 AAA 5,204,920
Revenue Bonds, Coffee Health Group, Series 1999A, 5.250%, 7/01/24 -
MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, Environmental 5/12 at 100.00 BBB 5,105,512
Improvement Revenue Bonds, MeadWestvaco Corporation, Series 2002A,
6.350%, 5/15/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,230 Total Alabama 20,648,432
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.8% (0.5% of Total Investments)
Alaska Housing Finance Corporation, General Housing Purpose Bonds,
Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AA 1,151,978
1,280 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AA 1,317,235
3,050 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 2,383,118
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
5,455 Total Alaska 4,852,331
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.5% (0.9% of Total Investments)
4,905 Maricopa County Industrial Development Authority, Arizona, Health 7/17 at 100.00 A 4,818,966
Facility Revenue Bonds, Catholic Healthcare West, Series 2007A,
5.250%, 7/01/32
5,000 Maricopa County Pollution Control Corporation, Arizona, Remarketed 5/08 at 100.00 Baa3 4,802,950
Revenue Refunding Bonds, Public Service Company of New Mexico,
Series 1992A, 5.750%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
9,905 Total Arizona 9,621,916
------------------------------------------------------------------------------------------------------------------------------------
California - 14.8% (9.0% of Total Investments)
2,500 Alameda Corridor Transportation Authority, California, Subordinate 10/17 at 100.00 AAA 2,067,900
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC
Insured
Calexico Unified School District, Imperial County, California,
General Obligation Bonds, Series 2005B:
4,070 0.000%, 8/01/32 - FGIC Insured No Opt. Call BBB+ 1,001,912
6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call BBB+ 1,399,944
3,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 2,828,910
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
7,500 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 7,556,175
Department of Mental Health, Coalinga State Hospital, Series
2004A, 5.125%, 6/01/29
16,000 California, General Obligation Bonds, 5.000%, 6/01/37 (UB) 6/17 at 100.00 A1 15,998,080
9,955 Capistrano Unified School District, Orange County, California, No Opt. Call Baa3 2,675,804
Special Tax Bonds, Community Facilities District, Series 2005,
0.000%, 9/01/31 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,800 0.000%, 2/01/33 - FGIC Insured 2/15 at 38.73 A 927,352
3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call A 739,418
7,535 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 9,417,318
Program Home Mortgage Revenue Bonds, Series 1989, 7.750%,
5/01/22 (Alternative Minimum Tax) (ETM)
-----
30
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 8,145 Cupertino Union School District, Santa Clara County, California, 8/13 at 55.54 AA $ 3,151,545
General Obligation Bonds, Series 2003B, 0.000%, 8/01/25 - FGIC
Insured
2,510 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 860,830
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2004B, 0.000%, 10/01/28 - MBIA
Insured
3,360 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 1,241,923
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2002A, 0.000%, 7/01/27 - MBIA
Insured
2,315 Gateway Unified School District, California, General Obligation No Opt. Call A- 599,377
Bonds, Series 2004B, 0.000%, 8/01/32 - FGIC Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 809,310
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
3,000 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,173,840
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
0.000%, 6/01/26 - FSA Insured
1,275 Madera Unified School District, Madera County, California, General 8/12 at 100.00 AAA 1,347,407
Obligation Bonds, Series 2002, 5.250%, 8/01/23 - FSA Insured
North Orange County Community College District, California, General
Obligation Bonds, Series 2003B:
7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AA 3,163,460
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AA 1,545,040
5,000 Palmdale Community Redevelopment Agency, California, Residential No Opt. Call AAA 5,635,700
Mortgage Revenue Refunding Bonds, Series 1991B, 7.375%, 2/01/12
(ETM)
5,000 Palmdale Community Redevelopment Agency, California, Single Family No Opt. Call AAA 6,510,850
Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%,
3/01/16 (Alternative Minimum Tax) (ETM)
9,315 Perris, California, GNMA Mortgage-Backed Securities Program Single No Opt. Call AAA 11,295,555
Family Mortgage Revenue Bonds, Series 1989A, 7.600%, 1/01/23
(Alternative Minimum Tax) (ETM)
7,660 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 3,687,677
California, Senior Lien Toll Road Revenue Bonds, Series 1993,
0.000%, 1/01/24 (ETM)
23,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 4,621,160
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
7,250 San Jose-Evergreen Community College District, Santa Clara County, 9/15 at 100.00 AAA 2,340,518
California, General Obligation Bonds, Series 2005A, 0.000%,
9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
155,130 Total California 92,597,005
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 8.8% (5.4% of Total Investments)
1,600 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 A- 1,553,376
Series 2006, 5.250%, 10/01/40 - XLCA Insured
9,440 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 9/16 at 100.00 AA 8,678,853
Catholic Health Initiatives, Series 2006A, 4.500%, 9/01/38
8,350 Colorado Health Facilities Authority, Remarketed Revenue Bonds, 6/08 at 101.50 AAA 8,493,704
Kaiser Permanente System, Series 1994A, 5.350%, 11/01/16 (ETM)
1,150 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 9/18 at 102.00 AAA 1,168,205
Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured
2,000 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 11/16 at 100.00 A- 1,732,320
Bonds, Convention Center Hotel, Series 2006, 4.750%, 12/01/35 -
XLCA Insured
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 A1 5,390,806
3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 A1 3,300,792
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A1 4,314,929
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 1997B:
2,650 0.000%, 9/01/16 - MBIA Insured No Opt. Call AAA 1,796,621
8,645 0.000%, 9/01/26 - MBIA Insured No Opt. Call AAA 3,051,858
-----
31
-----
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 1,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA $ 1,089,450
Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) - MBIA
Insured
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 2000B:
7,500 0.000%, 9/01/29 - MBIA Insured No Opt. Call AAA 2,173,500
10,000 0.000%, 9/01/31 - MBIA Insured No Opt. Call AAA 2,528,300
10,000 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 2,389,300
Platte River Power Authority, Colorado, Power Revenue Refunding
Bonds, Series 2002EE:
1,030 5.375%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2(4) 1,126,583
4,890 5.375%, 6/01/18 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2(4) 5,348,535
Platte River Power Authority, Colorado, Power Revenue Refunding
Bonds, Series 2002EE:
970 5.375%, 6/01/17 6/12 at 100.00 AA 1,045,476
110 5.375%, 6/01/18 6/12 at 100.00 AA 116,988
------------------------------------------------------------------------------------------------------------------------------------
82,335 Total Colorado 55,299,596
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.2% (0.1% of Total Investments)
1,450 District of Columbia Housing Finance Agency, GNMA/FNMA Single 6/08 at 101.00 AAA 1,484,380
Family Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.8% (1.7% of Total Investments)
2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,792,243
Stratford Point Apartments, Series 2000O-1, 5.850%, 12/01/31 -
FSA Insured (Alternative Minimum Tax)
4,910 South Miami Health Facilities Authority, FLorida, Revenue Bonds, 8/17 at 100.00 AA- 4,555,154
Baptist Health Systems of South Florida, Trust 1025, 9.397%,
8/15/42 (IF)
10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany Health 6/08 at 100.00 AAA 10,268,173
System - St. Mary's Hospital, Series 1993, 5.125%, 12/01/23 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
17,810 Total Florida 17,615,570
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.0% (0.6% of Total Investments)
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 4,128,160
5.250%, 10/01/39 - FSA Insured
2,900 Coffee County Hospital Authority, Georgia, Revenue Bonds, Coffee 12/14 at 100.00 BBB 2,408,450
County Regional Medical Center, Series 2004, 5.000%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
6,900 Total Georgia 6,536,610
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.5% (0.3% of Total Investments)
2,215 Hawaii Housing and Community Development Corporation, GNMA 7/10 at 102.00 AAA 2,262,689
Collateralized Multifamily Housing Revenue Bonds, Sunset Villas,
Series 2000, 5.700%, 7/20/31
525 Hawaii Housing Finance and Development Corporation, Single Family 7/08 at 101.00 AAA 536,855
Mortgage Purchase Revenue Bonds, Series 1997A, 5.750%, 7/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,740 Total Hawaii 2,799,544
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 14.1% (8.6% of Total Investments)
4,345 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 1,459,572
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/28 - FGIC Insured
3,420 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 962,149
Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%,
12/01/31 - FGIC Insured
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21 7/10 at 101.00 AAA 6,425,166
Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded 7/01/10) -
FGIC Insured
5,000 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AAA 4,950,050
Bonds, O'Hare International Airport, Series 2001A, 5.375%,
1/01/32 - AMBAC Insured (Alternative Minimum Tax)
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,957,500
Hospital, Series 2008A, 5.250%, 8/15/47 (WI/DD, Settling 5/15/08) -
AGC Insured
-----
32
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 5,645 Illinois Finance Authority, Revenue Bonds, University of Chicago, 7/17 at 100.00 AA $ 5,556,938
Series 2007, Trust 73TP, 9.858%, 7/01/46 (IF)
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical 5/12 at 100.00 Baa3 6,088,200
Center, Series 2002, 5.750%, 5/15/22
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 8/08 at 101.00 A 6,205,874
Lincoln Health Center, Series 1996B, 5.750%, 2/15/22
10,740 Lake and McHenry Counties Community Unit School District 118, 1/15 at 66.94 Aaa 5,036,093
Wauconda, Illinois, General Obligation Bonds, Series 2005B,
0.000%, 1/01/23 - FSA Insured
1,090 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, No Opt. Call A1 575,204
McCormick Place Expansion Project, Series 1993A, 0.000%, 6/15/21 -
FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Expansion Project, Series 1999A:
13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 13,948,933
10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,642,772
3,175 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, No Opt. Call AAA 540,004
McCormick Place Expansion Project, Series 2002A, 0.000%, 6/15/41 -
MBIA Insured
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,680,440
Refunding Bonds, McCormick Place Expansion Project, Series 1996A,
0.000%, 6/15/24 - MBIA Insured
4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 5,537,664
and Will Counties, Illinois, General Obligation Bonds, Series
1990A, 7.200%, 11/01/20 - AMBAC Insured
1,940 University of Illinois, Auxiliary Facilities Systems Revenue Bonds, 4/13 at 100.00 AAA 1,997,831
Series 2003A, 5.000%, 4/01/23 - AMBAC Insured
7,500 Valley View Public Schools, Community Unit School District 365U of No Opt. Call AAA 3,127,650
Will County, Illinois, General Obligation Bonds, Series 2005,
0.000%, 11/01/25 - MBIA Insured
23,125 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 10,666,175
Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/24 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
120,495 Total Illinois 88,358,215
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.6% (1.6% of Total Investments)
5,205 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 8/10 at 101.50 AAA 5,623,118
Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30
(Pre-refunded 8/15/10) - MBIA Insured
2,435 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB- 2,139,367
Community Foundation of Northwest Indiana, Series 2007, 5.500%,
3/01/37
6,075 LaGrange County Jail Building Corporation, Indiana, First Mortgage 10/09 at 101.00 A3(4) 6,400,924
Jail Bonds, Series 1998, 5.400%, 10/01/21 (Pre-refunded 10/01/09)
1,915 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 1,961,477
Madison Center Inc., Series 1999, 5.450%, 2/15/12
------------------------------------------------------------------------------------------------------------------------------------
15,630 Total Indiana 16,124,886
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.5% (0.3% of Total Investments)
4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue 6/15 at 100.00 BBB 3,403,841
Bonds, Series 2005C, 5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.3% (0.2% of Total Investments)
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and 6/14 at 100.00 AAA 1,776,443
Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.9% (0.5% of Total Investments)
5,500 Louisville and Jefferson County Metropolitan Sewer District, 5/08 at 100.50 AAA 5,533,440
Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997A,
5.250%, 5/15/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
-----
33
-----
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 13.5% (8.2% of Total Investments)
$ 13,500 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA $ 14,083,198
Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%,
9/01/29 - AMBAC Insured
6,460 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 7,523,251
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
720 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call N/R(4) 891,446
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14 (ETM)
6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 6,750,947
General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 8,647,200
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
28 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 Aa3 23,863
Residuals 660-1, 5.082%, 5/01/41 - FGIC Insured (IF)
Louisiana State, Gasoline Tax Revenue Bonds, Series 2006:
20,690 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa3 19,601,913
10,000 5.000%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa3 10,072,100
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
6,000 5.500%, 5/15/30 5/11 at 101.00 BBB 5,818,800
11,750 5.875%, 5/15/39 5/11 at 101.00 BBB 11,118,320
------------------------------------------------------------------------------------------------------------------------------------
84,798 Total Louisiana 84,531,038
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.8% (1.1% of Total Investments)
1,750 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 AAA 1,750,753
Revenue Bonds, UMass Memorial Healthcare, Series 1998A,
5.000%, 7/01/28 - AMBAC Insured
370 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 376,649
Revenue Bonds, Series 77, 5.950%, 6/01/25 - FSA Insured
(Alternative Minimum Tax)
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
2,000 5.125%, 1/01/17 - MBIA Insured 1/09 at 100.00 AAA 2,023,500
500 5.000%, 1/01/27 - MBIA Insured 1/09 at 100.00 AAA 501,305
5,000 5.000%, 1/01/37 - MBIA Insured 7/08 at 101.00 AAA 5,003,250
1,875 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 100.00 AAA 1,880,494
Revenue Bonds, Subordinate Series 1997B, 5.250%, 1/01/29 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,495 Total Massachusetts 11,535,951
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.9% (1.8% of Total Investments)
8,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AAA 8,028,160
Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, Detroit Medical Center Obligated Group, Series 1998A:
4,995 5.250%, 8/15/23 8/08 at 101.00 Ba3 4,504,891
3,000 5.250%, 8/15/28 8/08 at 101.00 BB- 2,606,160
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/08 at 100.00 BB- 3,276,212
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
19,270 Total Michigan 18,415,423
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.3% (0.8% of Total Investments)
5,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 A(4) 5,337,400
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%,
1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
1,140 Minnesota Housing Finance Agency, Single Family Mortgage Revenue 7/09 at 100.00 AA+ 1,149,690
Bonds, Series 2000C, 5.550%, 7/01/24 (Alternative Minimum Tax)
-----
34
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Minnesota (continued)
$ 1,360 Minnesota Housing Finance Agency, Single Family Mortgage Revenue 1/10 at 100.00 AA+ $ 1,369,588
Bonds, Series 2000J, 5.400%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,500 Total Minnesota 7,856,678
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.9% (0.5% of Total Investments)
12,005 Kansas City Municipal Assistance Corporation, Missouri, Leasehold No Opt. Call AAA 3,994,424
Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 - AMBAC Insured
140 Missouri Housing Development Commission, Single Family Mortgage 9/09 at 102.00 AAA 147,503
Revenue Bonds, Homeownership Loan Program, Series 2000A-1,
7.500%, 3/01/31 (Alternative Minimum Tax)
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,527,000
Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink
Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,645 Total Missouri 5,668,927
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 6.3% (3.8% of Total Investments)
7,310 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, 7/10 at 100.00 AA+(4) 7,785,223
Series 2000, 5.500%, 7/01/19 (Pre-refunded 7/01/10)
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AAA 8,137,500
Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) - MBIA
Insured
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 AAA 1,817,390
7,910 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,320,090
15,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 A2 14,607,000
Catholic Healthcare West, Series 2007B, 5.250%, 7/01/31 (UB)
320 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/08 at 101.00 Aaa 323,491
Series 1997C-2, 5.750%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
41,065 Total Nevada 38,990,694
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.9% (2.4% of Total Investments)
15,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,615,350
System Bonds, Series 2006C, 0.000%, 12/15/30 - FGIC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
13,045 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 14,153,040
5,050 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 5,633,326
------------------------------------------------------------------------------------------------------------------------------------
33,095 Total New Jersey 24,401,716
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 1.2% (0.7% of Total Investments)
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding Bonds, 10/08 at 100.00 Baa3 7,488,975
Public Service Company of New Mexico - San Juan Project, Series
1997B, 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
New York - 12.4% (7.5% of Total Investments)
440 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 410,480
Series 2006A, 4.500%, 2/15/47 - MBIA Insured
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,116,270
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
Nassau County, New York, General Obligation Improvement Bonds,
Series 2000F:
3,980 7.000%, 3/01/11 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,313,365
4,070 7.000%, 3/01/12 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,410,903
3,925 7.000%, 3/01/15 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,253,758
4,975 New York City Industrial Development Agency, New York, Special 12/08 at 102.00 BB+ 3,684,336
Facilities Revenue Bonds, British Airways PLC, Series 1998,
5.250%, 12/01/32 (Alternative Minimum Tax)
3,000 New York City Industrial Development Agency, New York, Special 12/12 at 101.00 BB+ 3,010,470
Facilities Revenue Bonds, British Airways PLC, Series 2002,
7.625%, 12/01/32 (Alternative Minimum Tax)
-----
35
-----
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 10,000 New York City Municipal Water Finance Authority, New York, Water 12/14 at 100.00 AAA $ 10,202,750
and Sewer System Revenue Bonds, 5.000%, 6/15/36 - FSA Insured (UB)
9,850 New York City Municipal Water Finance Authority, New York, Water 6/09 at 101.00 AA+(4) 10,341,318
and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%,
6/15/31 (Pre-refunded 6/15/09) - FGIC Insured
10,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AAA 10,825,000
Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29
(Pre-refunded 5/15/10)
7,435 New York City, New York, General Obligation Bonds, Fiscal Series 5/10 at 101.00 AA(4) 8,011,510
2000A, 5.750%, 5/15/20 (Pre-refunded 5/15/10)
5,815 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, 4/10 at 100.00 Aa1 5,892,805
Series 94, 5.800%, 10/01/20 (Alternative Minimum Tax)
5,000 New York State Urban Development Corporation, Service Contract 1/09 at 101.00 AAA 5,178,250
Revenue Bonds, Correctional Facilities, Series 1999C, 6.000%,
1/01/29 (Pre-refunded 1/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
75,490 Total New York 77,651,215
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 2.0% (1.2% of Total Investments)
1,150 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AAA 1,140,708
Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 -
AMBAC Insured (Alternative Minimum Tax)
5,045 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100.00 AA 5,082,838
Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29
(Alternative Minimum Tax)
1,725 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100.00 AA 1,741,422
Bonds, 1998 Trust Agreement, Series 8A, 5.950%, 1/01/27
(Alternative Minimum Tax)
4,465 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100.00 AA 4,476,163
Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,385 Total North Carolina 12,441,131
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.6% (0.4% of Total Investments)
1,615 North Dakota Housing Finance Agency, Home Mortgage Finance 7/08 at 102.00 Aaa 1,649,383
Program Bonds, Series 1998B, 5.500%, 7/01/29 - MBIA Insured
(Alternative Minimum Tax)
2,250 Ward County Health Care, North Dakota, Revenue Bonds, Trinity 7/16 at 100.00 BBB+ 2,144,835
Obligated Group, Series 2006, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
3,865 Total North Dakota 3,794,218
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 6.9% (4.2% of Total Investments)
5,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101.00 Baa1 5,056,000
Hospital Facilities Revenue Bonds, Summa Health System, Series
1998A, 5.375%, 11/15/18
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
270 5.125%, 6/01/24 6/17 at 100.00 BBB 254,321
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 2,512,350
2,635 5.750%, 6/01/34 6/17 at 100.00 BBB 2,382,014
5,895 5.875%, 6/01/47 6/17 at 100.00 BBB 5,216,603
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,400,288
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-3, 0.000%, 6/01/37
6,000 Cuyahoga County, Ohio, Hospital Revenue Bonds, University 7/09 at 101.00 AAA 6,282,720
Hospitals Health System, Series 1999, 5.500%, 1/15/30
(Pre-refunded 7/15/09) - AMBAC Insured
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
7,840 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A(4) 8,543,718
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A(4) 5,448,800
1,305 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 1,327,537
Program Residential Mortgage Revenue Bonds, Series 2000D,
5.450%, 9/01/31 (Alternative Minimum Tax)
2,650 Ohio, General Obligation Bonds, Higher Education, Series 2003A, 5/13 at 100.00 AA+ 2,767,846
5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
44,445 Total Ohio 43,192,197
------------------------------------------------------------------------------------------------------------------------------------
-----
36
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 4.6% (2.8% of Total Investments)
$ 12,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 AA- $ 11,731,080
John Health System, Series 2007, 5.000%, 2/15/42
2,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 A 1,774,880
Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
Oklahoma State Industries Authority, Health System Revenue
Bonds, Integris Baptist Medical Center, Series 1999A:
2,110 5.750%, 8/15/29 (Pre-refunded 8/15/09) - MBIA Insured 8/09 at 101.00 AAA 2,225,755
2,890 5.750%, 8/15/29 (Pre-refunded 8/15/09) - MBIA Insured 8/09 at 101.00 AAA 3,048,545
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 9,951,200
Bonds, American Airlines Inc., Series 2001B, 5.650%, 12/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,000 Total Oklahoma 28,731,460
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.5% (0.3% of Total Investments)
3,000 Oregon State Facilities Authority, Revenue Bonds, Willamette 10/17 at 100.00 A 2,946,270
University, Series 2007A, 5.000%, 10/01/36
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.9% (0.6% of Total Investments)
1,160 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,177,516
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,329,570
Revenue Bonds, Series 96A, 4.650%, 10/01/31 (Alternative
Minimum Tax)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/14 at 100.00 AAA 2,727,790
2004A, 5.500%, 12/01/31 - AMBAC Insured
465 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 463,865
Revenue Bonds, Capital Projects and Equipment Acquisition
Program, Series 1999, 6.150%, 12/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,725 Total Pennsylvania 5,698,741
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 3.0% (1.9% of Total Investments)
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A- 4,888,750
Series 2005RR, 5.000%, 7/01/26 - XLCA Insured
10,070 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB+ 10,030,928
Revenue Bonds, Series 2007N, 5.250%, 7/01/39 - FGIC Insured
4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 5.625%, 7/10 at 100.00 AAA 4,102,560
7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,070 Total Puerto Rico 19,022,238
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.2% (0.8% of Total Investments)
1,235 Rhode Island Health and Educational Building Corporation, 5/08 at 101.00 AAA 1,250,055
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.500%, 5/15/16 - MBIA Insured
7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 6,491,730
Homeownership Opportunity Bond Program, Series 50A, 4.650%,
10/01/34
------------------------------------------------------------------------------------------------------------------------------------
8,235 Total Rhode Island 7,741,785
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 4.4% (2.7% of Total Investments)
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-(4) 11,425,800
Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20
(Pre-refunded 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+(4) 2,798,975
Hospital Revenue Refunding and Improvement Bonds, Series 2003,
5.750%, 11/01/28 (Pre-refunded 11/01/13)
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation Fee 6/14 at 100.00 A+ 2,946,540
Revenue Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC Insured
1,220 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call Baa1 525,857
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/23 - FGIC Insured
-----
37
-----
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
South Carolina (continued)
$ 2,125 South Carolina Public Service Authority, Revenue Refunding 7/13 at 100.00 AAA $ 2,197,654
Bonds, Santee Cooper Electric System, Series 2003A, 5.000%,
1/01/21 - AMBAC Insured
7,500 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 7,545,450
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/28
------------------------------------------------------------------------------------------------------------------------------------
26,345 Total South Carolina 27,440,276
------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.5% (0.3% of Total Investments)
2,945 South Dakota Health and Educational Facilities Authority, 5/17 at 100.00 AA- 2,802,197
Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/40
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 5.9% (3.6% of Total Investments)
6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 6,213,780
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,415 Knox County Health, Educational and Housing Facilities Board, 1/13 at 75.87 AAA 12,479,690
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A, 0.000%, 1/01/18 - FSA Insured
14,385 Metropolitan Government of Nashville-Davidson County Health and 11/09 at 101.00 AAA 15,296,144
Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/28
(Pre-refunded 11/15/09) - AMBAC Insured
1,750 Metropolitan Government of Nashville-Davidson County, Tennessee, 5/11 at 100.00 AA 1,780,783
Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26
1,500 Sumner County Health, Educational, and Housing Facilities Board, 11/17 at 100.00 N/R 1,360,095
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007, 5.500%, 11/01/46
------------------------------------------------------------------------------------------------------------------------------------
44,050 Total Tennessee 37,130,492
------------------------------------------------------------------------------------------------------------------------------------
Texas - 16.0% (9.7% of Total Investments)
11,810 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 11,034,083
Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%,
5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax)
6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston No Opt. Call AAA 6,008,700
Lighting and Power Company, Series 1998, 5.050%, 11/01/18 -
AMBAC Insured (Alternative Minimum Tax)
4,250 Ennis Independent School District, Ellis County, Texas, General 8/16 at 60.73 Aaa 1,603,610
Obligation Bonds, Series 2006, 0.000%, 8/15/26
8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101.00 BBB 7,761,516
Revenue Bonds, Valero Energy Corporation, Series 1999, 5.700%,
4/01/32 (Alternative Minimum Tax)
7,500 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 7,539,450
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
1,540 Houston Community College, Texas, Limited Tax General Obligation 2/13 at 100.00 AAA 1,567,443
Bonds, Series 2003, 5.000%, 2/15/28 - AMBAC Insured
3,460 Houston Community College, Texas, Limited Tax General Obligation 2/13 at 100.00 AAA 3,761,401
Bonds, Series 2003, 5.000%, 2/15/28 (Pre-refunded 2/15/13) -
AMBAC Insured
13,110 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 13,962,281
Series 2000B, 5.500%, 7/01/30 (Pre-refunded 7/01/10) - FSA
Insured
Houston, Texas, Water Conveyance System Contract, Certificates
of Participation, Series 1993A-J:
5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call AAA 6,010,287
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,237,440
9,345 Leander Independent School District, Williamson and Travis 8/15 at 35.34 AA- 2,165,237
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/34 - FGIC Insured
16,305 Matagorda County Navigation District 1, Texas, Revenue Bonds, 5/09 at 101.00 BBB- 15,156,963
Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30
(Alternative Minimum Tax)
3,425 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 3,193,984
Refunding Bonds, TXU Electric Company, Series 2001A, 5.500%,
5/01/22 (Mandatory put 11/01/11)
-----
38
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 Baa2 $ 4,804,669
Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21
4,000 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,085,640
State Participation Program, Series 1999C, 5.500%, 8/01/35
6,840 Travis County Health Facilities Development Corporation, Texas, 11/09 at 101.00 AAA 7,273,246
Revenue Bonds, Ascension Health Credit Group, Series 1999A,
5.875%, 11/15/24 (Pre-refunded 11/15/09) - AMBAC Insured
245 Wood Glen Housing Finance Corporation, Texas, FHA-Insured 6/08 at 100.00 AAA 246,046
Section 8 Assisted Mortgage Revenue Bonds, Copperwood I
Project, Series 1990A, 7.625%, 1/01/10 - MBIA Insured (ETM)
3,000 Wylie Independent School District, Taylor County, Texas, General 8/15 at 74.57 AAA 1,564,230
Obligation Bonds, Series 2005, 0.000%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
111,420 Total Texas 99,976,226
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.3% (0.2% of Total Investments)
2,855 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 1,842,503
Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
Washington - 15.0% (9.1% of Total Investments)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 8,844,976
Consolidated System Revenue Bonds, Series 2001A, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax)
5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,459,927
Consolidated System Revenue Bonds, Series 2002B, 5.250%,
7/01/37 - AMBAC Insured (Alternative Minimum Tax)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,808,222
Consolidated System Revenue Refunding Bonds, Series 2001C,
5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax)
10,730 Pierce County School District 320, Sumner, Washington, Unlimited 12/10 at 100.00 Aaa 11,725,100
Tax General Obligation Bonds, Series 2000, 6.250%, 12/01/17
(Pre-refunded 12/01/10) - FSA Insured
10,550 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AAA 10,852,047
Bonds, Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax)
5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, No Opt. Call AAA 5,511,283
6.000%, 2/01/10 - MBIA Insured (Alternative Minimum Tax)
19,475 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 20,925,496
Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded 3/01/10) -
MBIA Insured
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 5,112,650
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
8,750 Washington Public Power Supply System, Revenue Refunding Bonds, 7/08 at 102.00 Aaa 8,946,788
Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
5,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 5,286,100
Providence Services, Series 1999, 5.375%, 12/01/19
(Pre-refunded 12/01/09) - MBIA Insured
1,270 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AAA 556,235
Bonds, Series 2003F, 0.000%, 12/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
91,295 Total Washington 94,028,824
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.8% (0.5% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,895,100
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.8% (1.7% of Total Investments)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
1,100 6.000%, 6/01/17 6/12 at 100.00 BBB 1,109,031
6,555 6.125%, 6/01/27 6/12 at 100.00 BBB 6,569,814
565 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 578,215
5.000%, 11/01/29 - FSA Insured
-----
39
-----
NMA | Nuveen Municipal Advantage Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin (continued)
$ 5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- $ 5,116,250
Bonds, Madison Gas and Electric Company Projects, Series
2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
3,000 Southeast Wisconsin Professional Baseball Park District, Sales No Opt. Call AAA 3,403,290
Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 -
MBIA Insured
905 Wisconsin Housing and Economic Development Authority, Home 3/10 at 100.00 AA 919,860
Ownership Revenue Bonds, Series 2000B, 5.750%, 3/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,125 Total Wisconsin 17,696,460
------------------------------------------------------------------------------------------------------------------------------------
$ 1,169,948 Total Long-Term Investments (cost $990,304,418) - 161.7% 1,012,572,944
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 2.4% (1.5% of Total Investments)
$ 15,140 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS VMIG-1 15,140,000
660, Variable Rate Demand Obligations, 4.010%, 5/01/41 - FGIC
Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $15,140,000) 15,140,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,005,444,418) - 164.1% 1,027,712,944
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.6)% (60,124,983)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 16,527,329
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.2)% (6) (358,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 626,115,290
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. Please see
the Portfolio Managers' Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.8)%.
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 pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
40
-----
NMO | Nuveen Municipal Market Opportunity Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
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 AA $ 1,834,961
2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 AA 2,339,901
------------------------------------------------------------------------------------------------------------------------------------
4,420 Total Alabama 4,174,862
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.9% (1.1% of Total Investments)
Alaska Housing Finance Corporation, General Housing Purpose Bonds,
Series 2005A:
1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AA 1,151,978
1,275 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AA 1,312,090
12,280 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 9,594,978
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
14,680 Total Alaska 12,059,046
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 1.4% (0.8% of Total Investments)
5,000 Arkansas Development Finance Authority, Hospital Revenue Bonds, 2/10 at 100.00 BBB(4) 5,381,000
Washington Regional Medical Center, Series 2000, 7.000%, 2/01/15
(Pre-refunded 2/01/10)
3,480 Cabot School District 4, Lonoke County, Arkansas, General Obligation 8/08 at 100.00 Aaa 3,483,410
Refunding Bonds, Series 2003, 5.000%, 2/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,480 Total Arkansas 8,864,410
------------------------------------------------------------------------------------------------------------------------------------
California - 12.5% (7.7% of Total Investments)
12,500 Anaheim Public Finance Authority, California, Subordinate Lease No Opt. Call AAA 2,754,625
Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%,
9/01/35 - FSA Insured
1,350 Antelope Valley Union High School District, Los Angeles County, No Opt. Call AAA 440,478
California, General Obligation Bonds, Series 2004B, 0.000%,
8/01/29 - MBIA Insured
7,800 California County Tobacco Securitization Agency, Tobacco Settlement 12/18 at 100.00 Baa3 5,706,792
Asset-Backed Bonds, Los Angeles County Securitization Corporation,
Series 2006A, 0.000%, 6/01/36 (Mandatory put 6/01/11)
1,350 California Educational Facilities Authority, Revenue Refunding No Opt. Call Aaa 247,725
Bonds, Loyola Marymount University, Series 2001A, 0.000%, 10/01/39 -
MBIA Insured
4,295 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 4,050,056
Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%,
3/01/33
9,000 California Health Facilities Financing Authority, Revenue Bonds, 3/16 at 100.00 A+ 8,869,410
Kaiser Permanante System, Series 2006, 5.250%, 3/01/45
25,000 California, General Obligation Bonds, Series 2005, 4.750%, 3/01/35 - 3/16 at 100.00 AAA 24,736,750
MBIA Insured (UB)
1,550 California Statewide Community Development Authority, Revenue Bonds, 7/18 at 100.00 AA- 1,610,466
St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 - FGIC
Insured
10,445 Castaic Lake Water Agency, California, Certificates of No Opt. Call AAA 3,407,995
Participation, Water System Improvement Project, Series 1999,
0.000%, 8/01/29 - AMBAC Insured
8,365 Cupertino Union School District, Santa Clara County, California, 8/13 at 52.66 AA 3,047,035
General Obligation Bonds, Series 2003B, 0.000%, 8/01/26 - FGIC
Insured
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,356,150
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B,
5.000%, 6/01/38 (Pre-refunded 6/01/13) - AMBAC Insured
-----
41
-----
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB $ 809,310
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
3,500 Golden State Tobacco Securitization Corporation, California, Tobacco No Opt. Call AAA 1,369,480
Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%,
6/01/26 - FSA Insured
1,500 Lincoln Unified School District, Placer County, California, No Opt. Call AAA 539,055
Community Facilities District 1, Special Tax Bonds, Series 2005,
0.000%, 9/01/26 - AMBAC Insured
490 Los Angeles Department of Water and Power, California, Electric 6/08 at 100.00 AA-(4) 490,539
Plant Revenue Bonds, Second Series 1993, 4.750%, 10/15/20 (ETM)
995 Los Angeles Department of Water and Power, California, Electric 6/08 at 100.00 AA-(4) 996,393
Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34 (ETM)
1,000 Pajaro Valley Unified School District, Santa Cruz County, No Opt. Call AAA 335,180
California, General Obligation Bonds, Series 2005B, 0.000%,
8/01/29 - FSA Insured
8,040 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call A+ 1,810,126
California, Certificates of Participation, Series 2006, 0.000%,
10/01/34 - FGIC Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
5,000 5.650%, 1/15/17 - MBIA Insured 1/14 at 102.00 AAA 5,295,500
26,000 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 5,223,920
5,000 San Jose-Evergreen Community College District, Santa Clara County, 9/15 at 100.00 AAA 1,708,750
California, General Obligation Bonds, Series 2005A, 0.000%,
9/01/28 - MBIA Insured
4,825 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 1,885,803
California, General Obligation Bonds, Series 2005C, 0.000%,
8/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
144,005 Total California 80,691,538
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 6.4% (3.9% of Total Investments)
1,085 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 A- 1,053,383
Series 2006, 5.250%, 10/01/40 - XLCA Insured
3,000 Broomfield, Colorado, Master Facilities Lease Purchase Agreement, 12/09 at 100.00 Aaa 3,088,650
Certificates of Participation, Series 1999, 5.750%, 12/01/24 -
AMBAC Insured
6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding and 12/12 at 100.00 Aaa 6,646,513
Improvement Bonds, Series 2002A, 5.500%, 12/01/22 - AMBAC Insured
11,465 Denver City and County, Colorado, Airport System Revenue Refunding 11/10 at 100.00 AAA 11,717,345
Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC Insured (Alternative
Minimum Tax)
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds,
Series 2000B:
7,000 0.000%, 9/01/30 - MBIA Insured No Opt. Call AAA 1,885,380
15,960 0.000%, 9/01/33 - MBIA Insured No Opt. Call AAA 3,586,531
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 AAA 5,903,200
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA Insured
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series
2004B:
3,800 0.000%, 9/01/27 - MBIA Insured 9/20 at 67.94 AAA 1,257,914
13,300 0.000%, 9/01/31 - MBIA Insured 9/20 at 53.77 AAA 3,362,639
6,250 0.000%, 9/01/32 - MBIA Insured 9/20 at 50.83 AAA 1,493,313
8,000 0.000%, 3/01/36 - MBIA Insured No Opt. Call AAA 1,526,560
------------------------------------------------------------------------------------------------------------------------------------
96,145 Total Colorado 41,521,428
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.5% (0.9% of Total Investments)
10,000 Washington Convention Center Authority, District of Columbia, Senior 10/16 at 100.00 AAA 9,420,100
Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%, 10/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Florida - 0.8% (0.5% of Total Investments)
6,960 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/17 at 100.00 Aa1 5,069,246
Bonds, RITES Series 1515, 8.985%, 7/01/32 (Alternative Minimum
Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
-----
42
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 4.8% (2.9% of Total Investments)
$ 15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 1/10 at 101.00 A+(4) $ 15,902,850
2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured
14,330 Fulton County Facilities Corporation, Georgia, Certificates of 11/10 at 101.00 AAA 15,080,749
Participation, Public Purpose Project, Series 1999, 5.500%,
11/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,330 Total Georgia 30,983,599
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 13.5% (8.3% of Total Investments)
4,595 Bolingbrook, Illinois, General Obligation Refunding Bonds, Series No Opt. Call A2 1,257,606
2002B, 0.000%, 1/01/32 - FGIC Insured
4,600 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 2,495,040
Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%,
12/01/20 - FGIC Insured
4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,059,760
5.000%, 1/01/33 - AMBAC Insured
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series No Opt. Call AAA 2,498,950
1993, 5.375%, 1/01/14 - AMBAC Insured
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 1/09 at 101.00 AAA 5,266,538
5.000%, 1/01/28 - MBIA Insured
10,000 Illinois Finance Authority, Illinois, Northwestern University, 12/15 at 100.00 Aaa 10,138,200
Revenue Bonds, Series 2006, 5.000%, 12/01/42 (UB)
38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 4/10 at 100.00 AAA 39,790,818
2000, 5.500%, 4/01/25 - MBIA Insured
Lake and McHenry Counties Community Unit School District 118,
Wauconda, Illinois, General Obligation Bonds, Series 2005B:
10,230 0.000%, 1/01/22 - FSA Insured 1/15 at 70.63 Aaa 5,118,785
6,780 0.000%, 1/01/24 - FSA Insured 1/15 at 63.44 Aaa 2,928,418
1,975 Lake County Community High School District 127, Grayslake, Illinois, No Opt. Call AA- 2,469,935
General Obligation Bonds, Series 2002A, 9.000%, 2/01/13 - FGIC
Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds,
McCormick Place Expansion Project, Series 2002A:
3,250 0.000%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 2,179,613
3,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 3,336,414
3,700 0.000%, 6/15/30 - MBIA Insured No Opt. Call AAA 1,175,564
3,280 0.000%, 6/15/37 - MBIA Insured No Opt. Call AAA 696,836
11,715 0.000%, 12/15/38 - MBIA Insured No Opt. Call AAA 2,291,103
9,170 0.000%, 6/15/39 - MBIA Insured No Opt. Call AAA 1,746,243
------------------------------------------------------------------------------------------------------------------------------------
122,760 Total Illinois 87,449,823
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.1% (0.7% of Total Investments)
4,695 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 4,867,870
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding Bonds, 8/11 at 102.00 Baa1 1,991,540
Indianapolis Power and Light Company, Series 1991, 5.750%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
6,695 Total Indiana 6,859,410
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.5% (0.3% of Total Investments)
2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,679,725
Revolving Fund Leveraged Bonds, Series 2002-II, 5.500%, 11/01/21
500 Salina, Kansas, Hospital Revenue Bonds, Salina Regional Medical 4/16 at 100.00 A1 456,885
Center, Series 2006, 4.625%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Kansas 3,136,610
------------------------------------------------------------------------------------------------------------------------------------
-----
43
-----
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.7% (1.1% of Total Investments)
Jefferson County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2000A:
$ 3,045 5.250%, 7/01/17 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA $ 3,218,169
7,490 5.250%, 7/01/20 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA 7,915,956
------------------------------------------------------------------------------------------------------------------------------------
10,535 Total Kentucky 11,134,125
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.7% (1.0% of Total Investments)
7,415 Louisiana Local Government Environmental Facilities and Community 12/12 at 100.00 AAA 7,373,105
Development Authority, Revenue Bonds, Baton Rouge Community
College Facilities Corporation, Series 2002, 5.000%,12/01/32 -
MBIA Insured
3,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 3,400,853
General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,765 Total Louisiana 10,773,958
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.0% (0.6% of Total Investments)
4,410 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 3,959,651
Housing and Community Development, Residential Revenue Bonds,
Series 2007D, 4.900%, 9/01/42 (Alternative Minimum Tax)
2,500 Maryland Department of Transportation, Consolidated Transportation No Opt. Call AAA 2,846,800
Revenue Bonds, Series 2002, 5.500%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
6,910 Total Maryland 6,806,451
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.8% (2.3% of Total Investments)
440 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 453,086
Series 2000A, 5.250%, 7/01/30
Massachusetts Bay Transportation Authority, Assessment Bonds,
Series 2000A:
4,150 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 AAA 4,397,963
660 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1(4) 699,435
8,315 Massachusetts Turnpike Authority, Metropolitan Highway System 7/08 at 101.00 AAA 8,320,405
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AA(4) 10,795,100
Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
23,565 Total Massachusetts 24,665,989
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.1% (0.7% of Total Investments)
5,000 Detroit Water Supply System, Michigan, Water Supply System Revenue 7/16 at 100.00 AAA 4,967,300
Bonds, Series 2006D, 4.625%, 7/01/32 - FSA Insured
2,090 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax 8/10 at 100.00 AAA 2,193,476
General Obligation Bonds, Series 2000, 5.375%, 8/01/17 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
7,090 Total Michigan 7,160,776
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 8.2% (5.1% of Total Investments)
930 Minnesota Agricultural and Economic Development Board, Healthcare 11/10 at 101.00 A 966,651
System Revenue Bonds, Fairview Hospital and Healthcare Services,
Series 2000A, 6.375%, 11/15/29
29,070 Minnesota Agricultural and Economic Development Board, Healthcare 11/10 at 101.00 A(4) 32,069,441
System Revenue Bonds, Fairview Hospital and Healthcare Services,
Series 2000A, 6.375%, 11/15/29 (Pre-refunded 11/15/10)
2,145 Minnesota Housing Finance Agency, Single Family Remarketed Mortgage 1/11 at 101.00 AA+ 2,173,807
Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative Minimum Tax)
13,675 Minnesota, General Obligation Bonds, Series 2000, 5.125%, 11/01/16 11/10 at 100.00 AAA 14,418,647
3,030 St. Paul Housing and Redevelopment Authority, Minnesota, Sales Tax 11/15 at 103.00 AAA 3,636,515
Revenue Refunding Bonds, Civic Center Project, Series 1996,
7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
48,850 Total Minnesota 53,265,061
------------------------------------------------------------------------------------------------------------------------------------
-----
44
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.1% (0.7% of Total Investments)
$ 5,900 Mississippi Business Finance Corporation, Pollution Control Revenue 10/08 at 100.00 BBB $ 5,876,931
Refunding Bonds, System Energy Resources Inc. Project, Series
1998, 5.875%, 4/01/22
1,030 Mississippi Home Corporation, GNMA Mortgage-Backed Securities 7/08 at 104.00 Aaa 1,063,259
Program Single Family Mortgage Revenue Bonds, Series 1997D-5,
6.750%, 7/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,930 Total Mississippi 6,940,190
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.6% (0.4% of Total Investments)
Kansas City Municipal Assistance Corporation, Missouri, Leasehold
Revenue Bonds, Series 2004B-1:
7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA 2,625,560
5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AAA 1,481,200
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Missouri 4,106,760
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.6% (0.3% of Total Investments)
3,900 Omaha Convention Hotel Corporation, Nebraska, Convention Center 2/17 at 100.00 AAA 3,596,151
Revenue Bonds, Series 2007, 7.067%, 2/01/35 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 5.3% (3.3% of Total Investments)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
6,125 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 3,434,655
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 2,570,230
5,685 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,606,524
21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 16,779,000
2,135 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2005B, 6/15 at 33.61 A 385,752
0.000%, 6/01/37 - FGIC Insured
10,000 Reno, Nevada, Health Facility, Revenue Bonds, Catholic Healthcare 7/17 at 100.00 A2 9,737,800
West, Series 2007A, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
53,445 Total Nevada 34,513,961
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 6.3% (3.9% of Total Investments)
18,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AAA 19,245,240
System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded 6/15/10)
35,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 8,657,600
System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured
5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and Income 1/17 at 100.00 AAA 3,599,950
Securities, Series 2004B, 0.000%, 1/01/35 - AMBAC Insured
3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue Bonds, No Opt. Call Aaa 1,251,750
Series 2005A, 0.000%, 9/01/25 - MBIA Insured
3,525 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 3,932,173
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42
(Pre-refunded 6/01/12)
2,100 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 2,358,594
Settlement Asset-Backed Bonds, Series 2003, 6.375%, 6/01/32
(Pre-refunded 6/01/13)
2,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,600,760
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
68,625 Total New Jersey 40,646,067
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 1.9% (1.2% of Total Investments)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds, 8/11 at 101.00 AA-(4) 6,475,255
Presbyterian Healthcare Services, Series 2001A, 5.500%, 8/01/21
(Pre-refunded 8/01/11)
5,675 University of New Mexico, Revenue Refunding Bonds, Series 1992A, No Opt. Call AA 6,052,331
6.250%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
11,600 Total New Mexico 12,527,586
------------------------------------------------------------------------------------------------------------------------------------
New York - 10.7% (6.6% of Total Investments)
3,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 3,033,690
Revenue Bonds, Series 2006B, 5.000%, 12/01/35
-----
45
-----
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 6,750 Nassau County Tobacco Settlement Corporation, New York, Tobacco 7/09 at 101.00 AAA $ 7,152,503
Settlement Asset-Backed Bonds, Series 1999A, 6.400%, 7/15/33
(Pre-refunded 7/15/09)
17,870 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AAA 18,852,671
Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded 8/15/09)
5 New York City, New York, General Obligation Bonds, Fiscal Series 8/09 at 100.00 AA 5,065
1997H, 6.125%, 8/01/25
New York City, New York, General Obligation Bonds, Fiscal Series
2002G:
1,000 5.000%, 8/01/17 8/12 at 100.00 AA 1,038,730
6,530 5.750%, 8/01/18 8/12 at 100.00 AAA 7,065,264
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 AA 5,455,500
2003A, 5.750%, 8/01/16
10,000 Port Authority of New York and New Jersey, Special Project 6/08 at 102.00 AAA 10,033,900
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
7,805 Power Authority of the State of New York, General Revenue Bonds, 11/12 at 100.00 Aa2(4) 8,502,845
Series 2002A, 5.000%, 11/15/21 (Pre-refunded 11/15/12)
8,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 8,462,800
Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24)
(Pre-refunded 7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
65,960 Total New York 69,602,968
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 2.1% (1.3% of Total Investments)
1,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA-(4) 2,063,552
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA 3,699,680
Bonds, Mission St. Joseph's Health System, Series 2007,
4.500%, 10/01/31
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 7,857,825
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,400 Total North Carolina 13,621,057
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 4.5% (2.8% of Total Investments)
23,035 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 24,087,237
Obligated Group, Series 2000A, 5.625%, 6/01/31 - FSA Insured
North Dakota Water Commission, Water Development and Management
Program Bonds, Series 2000A:
2,230 5.700%, 8/01/18 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,388,888
2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,627,209
------------------------------------------------------------------------------------------------------------------------------------
27,715 Total North Dakota 29,103,334
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.9% (3.0% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
125 5.125%, 6/01/24 6/17 at 100.00 BBB 117,741
1,250 5.875%, 6/01/30 6/17 at 100.00 BBB 1,163,125
1,215 5.750%, 6/01/34 6/17 at 100.00 BBB 1,098,348
2,750 5.875%, 6/01/47 6/17 at 100.00 BBB 2,433,530
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,389,500
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA Insured (UB)
16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A 17,603,252
Kettering Medical Center, Series 1999, 6.300%, 4/01/12
------------------------------------------------------------------------------------------------------------------------------------
31,480 Total Ohio 31,805,496
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.0% (0.0% of Total Investments)
300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 298,626
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
-----
46
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.6% (1.6% of Total Investments)
$ 5,000 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 1/13 at 100.00 AAA $ 5,222,350
5.250%, 7/01/22 - MBIA Insured
Portland, Oregon, Water System Revenue Bonds, Series 2000A:
6,780 5.375%, 8/01/18 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1(4) 7,216,564
3,880 5.500%, 8/01/20 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1(4) 4,140,426
------------------------------------------------------------------------------------------------------------------------------------
15,660 Total Oregon 16,579,340
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.1% (2.5% of Total Investments)
5,000 Delaware County Industrial Development Authority, Pennsylvania, 7/08 at 102.00 BB+ 5,032,850
Resource Recovery Revenue Refunding Bonds, Series 1997A,
6.200%, 7/01/19
5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100.00 Aaa 5,421,600
Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30
(Pre-refunded 12/15/10) - MBIA Insured
15,050 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 16,057,297
5.000%, 9/15/14
------------------------------------------------------------------------------------------------------------------------------------
25,050 Total Pennsylvania 26,511,747
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 3.5% (2.2% of Total Investments)
3,330 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 3,487,143
Senior Lien Series 2008A, 6.000%, 7/01/44
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA 12,402,750
Revenue Bonds, Series 2003, 4.500%, 12/01/23
7,265 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 7,017,699
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
23,095 Total Puerto Rico 22,907,592
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 7.6% (4.7% of Total Investments)
24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-(4) 27,728,263
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
(Pre-refunded 12/01/12)
21,570 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,368,111
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured
3,560 South Carolina Public Service Authority, Revenue Refunding 7/13 at 100.00 AAA 3,700,122
Bonds, Santee Cooper Electric System, Series 2003A, 5.000%,
1/01/20 - AMBAC Insured
11,665 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 11,735,690
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/28
------------------------------------------------------------------------------------------------------------------------------------
61,525 Total South Carolina 49,532,186
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.8% (0.5% of Total Investments)
5,000 Knox County Health, Educational and Housing Facilities Board, 7/13 at 100.00 AA 4,957,700
Tennessee, Hospital Revenue Bonds, East Tennessee Children's
Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
Texas - 24.9% (15.3% of Total Investments)
2,500 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 1,453,575
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
12,250 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue 11/09 at 100.00 AAA 12,902,313
Refunding Bonds, Series 1999, 5.800%, 11/15/29 (Pre-refunded
11/15/09) - AMBAC Insured
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 10,515,547
Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%,
5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax)
Brownsville Independent School District, Cameron County, Texas,
General Obligation Bonds, Series 1999:
5,015 5.625%, 8/15/25 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 5,233,403
8,825 5.625%, 8/15/29 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 9,209,329
1,000 Cedar Hill Independent School District, Dallas County, Texas, No Opt. Call A 258,350
General Obligation Bonds, Series 2002, 0.000%, 8/15/32 - FGIC
Insured
-----
47
-----
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 15,000 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 BBB- $ 13,255,950
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%,
1/01/45 - FGIC Insured
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
585 5.400%, 2/15/18 2/10 at 100.00 AAA 605,253
340 5.650%, 2/15/19 2/10 at 100.00 AAA 353,739
235 5.700%, 2/15/20 2/10 at 100.00 AAA 244,783
270 5.700%, 2/15/21 2/10 at 100.00 AAA 281,240
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
16,740 5.400%, 2/15/18 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 17,627,053
9,660 5.650%, 2/15/19 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 10,214,001
6,645 5.700%, 2/15/20 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 7,031,872
7,750 5.700%, 2/15/21 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 8,201,205
2,500 Comal Independent School District, Comal, Bexar, Guadalupe, No Opt. Call Aaa 1,215,200
Hays, and Kendall Counties, Texas, General Obligation Bonds,
Series 2005A, 0.000%, 2/01/23
6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/09 at 101.00 CCC+ 3,963,240
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
Ennis Independent School District, Ellis County, Texas, General
Obligation Bonds, Series 2006:
3,950 0.000%, 8/15/30 8/16 at 49.21 Aaa 1,168,292
4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,115,120
1,440 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call AAA 368,482
Convention and Entertainment Project, Series 2001B, 0.000%,
9/01/32 - AMBAC Insured
1,250 Houston, Texas, Junior Lien Water and Sewerage System Revenue 12/11 at 100.00 AAA 1,300,438
Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - FSA Insured
21,500 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 22,897,715
Series 2000B, 5.500%, 7/01/30 (Pre-refunded 7/01/10) - FSA
Insured
9,350 Leander Independent School District, Williamson and Travis 8/15 at 39.49 AA- 2,438,480
Counties, Texas, General Obligation Bonds, Series 2005,
0.000%, 8/15/32 - FGIC Insured
6,000 Leander Independent School District, Williamson and Travis 8/14 at 35.27 AAA 1,513,620
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/33
15,000 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,688,500
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded 8/15/09)
4,390 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 4,194,645
Financing Corporation, Revenue Bonds, Series 2007, Residuals
1760-3, 9.810%, 2/15/36 (IF)
5,000 White Settlement Independent School District, Tarrant County, 8/15 at 36.81 AAA 1,170,400
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34
3,970 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 4,252,624
Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/21
(Pre-refunded 8/01/11) - AMBAC Insured
Wylie Independent School District, Taylor County, Texas, General
Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/23 8/15 at 67.10 AAA 1,397,220
2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 879,060
------------------------------------------------------------------------------------------------------------------------------------
187,420 Total Texas 160,950,649
------------------------------------------------------------------------------------------------------------------------------------
-----
48
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington - 16.0% (9.8% of Total Investments)
$ 5,500 Clark County Public Utility District 1, Washington, Generating 1/11 at 100.00 AAA $ 5,647,510
System Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 -
FSA Insured
2,755 Cowlitz County, Washington, Special Sewerage Revenue Refunding No Opt. Call A- 2,985,924
Bonds, CSOB Wastewater Treatment Facilities, Series 2002,
5.500%, 11/01/16 - FGIC Insured
10,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/11 at 101.00 AAA 10,770,100
Nuclear Project 3, Series 2001A, 5.500%, 7/01/17 - FSA Insured
2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AA 2,562,075
5.000%, 1/01/23 - FGIC Insured
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 35,798,464
5.625%, 2/01/30 (Pre-refunded 8/01/10) - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,005,531
5.625%, 2/01/24 - MBIA Insured (Alternative Minimum Tax)
2,150 Seattle, Washington, General Obligation Refunding and 12/12 at 100.00 AAA 2,190,141
Improvement Bonds, Series 2002, 4.500%, 12/01/20
3,000 Spokane County School District 81, Spokane, Washington, General 6/15 at 100.00 AAA 2,960,190
Obligation Bonds, Series 2005, 0.000%, 6/01/24 - MBIA Insured
3,520 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 Aaa 3,777,312
Children's Hospital and Regional Medical Center, Series 2001,
5.000%, 10/01/21 (Pre-refunded 10/01/11) - AMBAC Insured
7,890 Washington State Higher Education Facilities Authority, Revenue 11/09 at 101.00 AA(4) 8,392,988
Bonds, Pacific Lutheran University, Series 1999, 5.950%,
11/01/29 (Pre-refunded 11/01/09) - RAAI Insured
11,600 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 11,835,016
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/12 at 100.00 AAA 9,367,470
Series 2002C, 5.000%, 1/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
98,355 Total Washington 103,292,721
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 1.0% (0.6% of Total Investments)
3,745 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 3,753,464
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/27
1,755 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 1,583,852
Bonds, Divine Savior Healthcare, Series 2006, 4.750%, 5/01/25
1,250 Wisconsin Health and Educational Facilities Authority, Revenue 9/08 at 101.00 N/R 1,120,713
Bonds, United Lutheran Program for the Aging Inc., Series
1998, 5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Wisconsin 6,458,029
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.4% (0.3% of Total Investments)
2,800 Jackson National Rural Utilities Cooperative Financing 5/08 at 100.50 A 2,815,064
Corporation, Wyoming, Guaranteed Gas Supply Revenue Bonds,
Lower Valley Power and Light Inc., Series 1997B, 5.875%,
5/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,275,200 Total Long-Term Investments (cost $1,019,650,585) - 161.4% 1,044,803,656
============------------------------------------------------------------------------------------------------------------------------
-----
49
-----
NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 1.2% (0.7% of Total Investments)
$ 7,790 Omaha Convention Hotel Corporation, Nebraska, Convention Center A-1+ $ 7,790,000
Revenue Bonds, Variable Rate Demand Obligations, Series 2007,
3.760%, 2/01/35 - AMBAC Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $7,790,000) 7,790,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,027,440,585) - 162.6% 1,052,593,656
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.8)% (37,495,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 12,320,054
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.7)% (6) (380,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 647,418,710
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. Please see
the Portfolio Managers' Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (36.1)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
50
-----
NAD | Nuveen Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Municipal Bonds - 157.4% (99.6% of Total Investments)
Alabama - 0.3% (0.2% of Total Investments)
$ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102.00 A- $ 1,509,660
Series 2000, 5.750%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.2% (0.1% of Total Investments)
750 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 12/14 at 100.00 AA 767,985
Series 2005A, 5.250%, 12/01/34 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.8% (0.5% of Total Investments)
5,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 4,489,000
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
California - 3.6% (2.3% of Total Investments)
1,535 Alameda Corridor Transportation Authority, California, Senior Lien No Opt. Call AAA 299,033
Revenue Bonds, Series 1999A, 0.000%, 10/01/37 - MBIA Insured
5,500 Anaheim Public Finance Authority, California, Subordinate Lease No Opt. Call AAA 1,828,200
Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%,
9/01/28 - FSA Insured
65 California, General Obligation Bonds, Series 1997, 5.000%, 10/01/18 - 10/08 at 100.00 AAA 65,562
AMBAC Insured
5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/31 3/16 at 100.00 A+ 5,022,200
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
5,000 5.000%, 6/01/33 6/17 at 100.00 BBB 4,269,350
1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 809,310
3,210 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 3,131,516
Enhanced Tobacco Settlement Revenue Bonds, Residual Trust
07-1034, 10.210%, 6/01/45 - AGC Insured (IF)
3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,369,480
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
0.000%, 6/01/26 - FSA Insured
17,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 3,415,640
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
41,810 Total California 20,210,291
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 5.8% (3.6% of Total Investments)
1,125 Antelope Heights Metropolitan District, Colorado, Limited Tax 12/17 at 100.00 AA 1,040,434
General Obligation Bonds, Series 2007, 5.000%, 12/01/37 - RAAI
Insured
3,205 Denver City and County, Colorado, Airport Special Facilities 1/09 at 101.00 AAA 3,273,202
Revenue Bonds, Rental Car Projects, Series 1999A, 6.000%, 1/01/12 -
MBIA Insured (Alternative Minimum Tax)
2,950 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 A3(4) 3,195,558
Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/22
(Pre-refunded 12/01/13) - XLCA Insured
1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue Bonds, 10/08 at 101.00 AAA 1,478,894
Boston Lofts Project, Series 1997A, 5.750%, 10/01/27 (Alternative
Minimum Tax)
8,515 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 3,197,723
Series 1997B, 0.000%, 9/01/25 - MBIA Insured
25,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 6,320,750
Series 2000B, 0.000%, 9/01/31 - MBIA Insured
-----
51
-----
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 60,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA $ 11,449,200
Series 2004A, 0.000%, 3/01/36 - MBIA Insured
12,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/26 at 54.77 AAA 2,013,625
Series 2006A, 0.000%, 9/01/38 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
114,770 Total Colorado 31,969,386
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.7% (0.4% of Total Investments)
4,335 Mashantucket Western Pequot Tribe, Connecticut, Subordinate Special 11/17 at 100.00 Baa3 3,937,784
Revenue Bonds, Series 2007A, 5.750%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
Florida - 10.0% (6.3% of Total Investments)
1,630 Florida Housing Finance Agency, Housing Revenue Bonds, Mar Lago 6/08 at 102.00 AAA 1,652,885
Village Apartments, Series 1997F, 5.800%, 12/01/17 - AMBAC
Insured (Alternative Minimum Tax)
15,000 Florida State Board of Education, Public Education Capital Outlay 6/15 at 101.00 Aa1 14,387,400
Bonds, Series 2005E, 4.500%, 6/01/35 (UB)
2,500 Marion County Hospital District, Florida, Revenue Bonds, Munroe 10/17 at 100.00 A2 2,363,375
Regional Medical Center, Series 2007, 5.000%, 10/01/34
13,625 Martin County Industrial Development Authority, Florida, Industrial 6/08 at 100.00 BB+ 13,654,702
Development Revenue Bonds, Indiantown Cogeneration LP, Series
1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
22,000 South Miami Health Facilities Authority, Florida, Revenue Bonds, 8/17 at 100.00 AA- 21,633,260
Baptist Health Systems of South Florida, Series 2007, 5.000%,
8/15/37 (UB)
2,460 South Miami Health Facilities Authority, FLorida, Revenue Bonds, 8/17 at 100.00 AA- 2,282,216
Baptist Health Systems of South Florida, Trust 1025, 9.397%,
8/15/42 (IF)
------------------------------------------------------------------------------------------------------------------------------------
57,215 Total Florida 55,973,838
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.3% (1.5% of Total Investments)
5,000 Cobb County Development Authority, Georgia, Student Housing Revenue 7/17 at 100.00 Aaa 5,050,500
Bonds, KSU Village II Real Estate Foundation LLC Project, Series
2007A, 5.250%, 7/15/38 - AMBAC Insured
4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/10 at 101.00 AA+(4) 4,307,840
Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded 4/01/10)
Gainesville and Hall County Hospital Authority, Georgia, Revenue
Anticipation Certificates, Northeast Georgia Health Services Inc.,
Series 1999:
2,620 5.500%, 5/15/29 (Pre-refunded 5/15/09) - MBIA Insured 5/09 at 101.00 AAA 2,736,354
880 5.500%, 5/15/29 (Pre-refunded 5/15/09) - MBIA Insured 5/09 at 101.00 AAA 918,060
------------------------------------------------------------------------------------------------------------------------------------
12,500 Total Georgia 13,012,754
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.1% (0.1% of Total Investments)
150 Idaho Housing and Finance Association, Single Family Mortgage 7/09 at 101.00 Aa2 153,596
Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax)
190 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 191,007
Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax)
290 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 297,601
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
630 Total Idaho 642,204
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 29.4% (18.6% of Total Investments)
2,460 Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, 12/09 at 102.00 BBB+ 2,567,748
Series 1999, 5.750%, 12/01/12
7,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 7,991,893
Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 5.500%,
12/01/26 - FGIC Insured
-----
52
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue Bonds,
Archer Court Apartments, Series 1999A:
$ 770 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA $ 782,636
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,205,402
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,883,863
22,750 Chicago, Illinois, General Obligation Refunding Bonds, Emergency No Opt. Call AA- 25,249,769
Telephone System, Series 1999, 5.500%, 1/01/23 - FGIC Insured
2,620 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, Series No Opt. Call AAA 2,846,630
1993, 5.375%, 1/01/14 - AMBAC Insured
3,340 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 3,256,567
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
190 DuPage County Community School District 200, Wheaton, Illinois, 11/13 at 100.00 Aaa 203,224
General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - FSA
Insured
810 DuPage County Community School District 200, Wheaton, Illinois, 11/13 at 100.00 Aaa 899,124
General Obligation Bonds, Series 2003B, 5.250%, 11/01/20
(Pre-refunded 11/01/13) - FSA Insured
500 Hoffman Estates Park District, Cook County, Illinois, General 12/09 at 102.00 AAA 520,090
Obligation Bonds, Series 1999, 5.375%, 12/01/29 - MBIA Insured
3,935 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 2,968,682
Revenue Bonds, Lake County School District 116 - Round Lake,
Series 1999, 0.000%, 1/01/15 - MBIA Insured
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,957,500
Hospital, Series 2008A, 5.250%,8/15/47 (WI/DD, Settling 5/15/08) -
AGC Insured
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health Services 2/18 at 100.00 AAA 1,025,710
Corporation, Series 2008A, 5.500%, 2/01/40 - AMBAC Insured
5,570 Illinois Finance Authority, Revenue Bonds, University of Chicago, 7/14 at 100.00 Aa1 5,649,317
Series 2004A, 5.000%, 7/01/34
9,860 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 10,408,610
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
5,400 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/08 at 100.50 AAA 5,431,266
University Health System, Series 1997A, 5.000%, 7/01/24 - MBIA
Insured
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 8/08 at 101.00 A 5,536,940
Lincoln Health Center, Series 1996B, 5.500%, 2/15/16
1,500 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 A+ 1,381,470
Series 2005E, 4.800%, 1/01/36 - FGIC Insured
11,345 Lake and McHenry Counties Community Unit School District 118, 1/15 at 60.14 Aaa 4,667,220
Wauconda, Illinois, General Obligation Bonds, Series 2005B,
0.000%, 1/01/25 - FSA Insured
3,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 3,059,820
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
22,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 23,325,974
Bonds, McCormick Place Expansion Project, Series 1999A, 5.500%,
12/15/24 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series 1996A:
12,250 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 5,991,843
13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 5,991,050
1,840 Oak Park, Illinois, General Obligation Bonds, Series 2005B, 11/15 at 54.13 AA- 630,218
0.000%, 11/01/27 - XLCA Insured
Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999:
22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 26,329,488
3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,005,505
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AA+ 1,346,748
5.250%, 12/01/34 - FGIC Insured
10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 4,880,700
Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 -
FSA Insured
-----
53
-----
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 4,500 Will County School District 122, New Lenox, Illinois, General No Opt. Call Aaa $ 2,837,295
Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
184,465 Total Illinois 164,832,302
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 6.0% (3.8% of Total Investments)
8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 9,260,164
Bonds, Charity Obligated Group, Series 1999D, 5.500%, 11/15/24
(Pre-refunded 11/15/09) - MBIA Insured
8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 8,642,640
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/26 (Pre-refunded 8/15/10) - MBIA Insured
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB- 1,757,180
Community Foundation of Northwest Indiana, Series 2007, 5.500%,
3/01/37
3,870 Indiana Housing and Community Development Authority, Single Family 1/17 at 100.00 Aaa 2,847,623
Mortgage Revenue Bonds, Series 2007A-1 Drivers 1847, 8.912%,
7/01/32 (Alternative Minimum Tax) (IF)
6,675 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 6,669,126
2007A, 5.000%, 1/01/42 - MBIA Insured
4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, Park 6/09 at 101.00 Aa3(4) 4,390,869
Tudor Foundation Inc., Project, Series 1999, 5.700%, 6/01/24
(Pre-refunded 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
33,490 Total Indiana 33,567,602
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.1% (0.7% of Total Investments)
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue 6/15 at 100.00 BBB 6,078,520
Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.8% (0.5% of Total Investments)
3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 10/08 at 100.00 A1 3,708,070
1999, 4.000%, 10/01/18 - FGIC Insured
1,000 Wyandotte County-Kansas City Unified Government, Kansas, Sales Tax 12/15 at 100.00 N/R 967,750
Special Obligation Bonds, Redevelopment Project Area B, Series
2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
4,825 Total Kansas 4,675,820
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.7% (1.1% of Total Investments)
3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101.00 Aa3(4) 3,234,586
School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20
(Pre-refunded 2/01/10)
Kentucky Economic Development Finance Authority, Hospital System
Revenue Refunding and Improvement Bonds, Appalachian Regional
Healthcare Inc., Series 1997:
1,850 5.850%, 10/01/17 10/08 at 102.00 BB- 1,786,971
5,000 5.875%, 10/01/22 10/08 at 102.00 BB- 4,674,600
------------------------------------------------------------------------------------------------------------------------------------
9,880 Total Kentucky 9,696,157
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 6.6% (4.2% of Total Investments)
2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public 5/10 at 101.50 AA-(4) 2,418,539
Improvements, Series 2000B, 5.625%,5/01/25 (Pre-refunded
5/01/10) - FGIC Insured
1,750 Louisiana Local Government Environmental Facilities and Community 6/12 at 105.00 Aaa 1,878,975
Development Authority, GNMA Collateralized Mortgage Revenue
Refunding Bonds, Sharlo Apartments, Series 2002A, 6.500%,
6/20/37
5,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 5,431,213
General Hospital, Series2004, 5.250%, 7/01/33 - MBIA Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 8,647,200
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5,445 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AA- 5,158,647
2006, 4.500%, 5/01/41 - FGIC Insured (UB)
-----
54
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Louisiana (continued)
$ 13,570 Louisiana Transportation Authority, Senior Lien Toll Road Revenue 12/10 at 38.73 AAA $ 4,292,462
Bonds, Series 2005B, 0.000%, 12/01/28 - AMBAC Insured
9,545 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 9,256,741
Settlement Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
46,905 Total Louisiana 37,083,777
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.6% (1.0% of Total Investments)
1,470 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 N/R 1,352,444
Subordinate Revenue Bonds, Crosstown Center Project, Series 2002,
8.000%, 9/01/35 (Alternative Minimum Tax)
4,365 Massachusetts Health and Educational Facilities Authority, Revenue 10/15 at 100.00 AAA 4,581,242
Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 -
AGC Insured
785 Massachusetts Port Authority, Special Facilities Revenue Bonds, US 9/08 at 100.00 AAA 784,937
Airways Group Inc., Series 1996A, 5.875%, 9/01/23 - MBIA Insured
(Alternative Minimum Tax)
2,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 100.00 AAA 2,023,500
Revenue Bonds, Senior Series 1997A, 5.125%, 1/01/17 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
8,620 Total Massachusetts 8,742,123
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.6% (2.9% of Total Investments)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AAA 6,021,120
Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
2,435 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/11 at 100.00 A+(4) 2,622,690
Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC
Insured
15,255 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 BB- 13,252,324
Detroit Medical Center Obligated Group, Series 1998A, 5.250%,
8/15/28
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit Metropolitan 12/08 at 101.00 AAA 4,052,080
Wayne County Airport, Series 1998A, 5.375%, 12/01/16 - MBIA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
27,690 Total Michigan 25,948,214
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.2% (0.1% of Total Investments)
845 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101.00 AA+ 869,885
Series 1998H-1, 5.650%, 7/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.3% (1.5% of Total Investments)
Kansas City Municipal Assistance Corporation, Missouri, Leasehold
Revenue Bonds, Series 2004B-1:
7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA 2,625,560
5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AAA 1,663,650
2,185 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 2,282,167
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21 -
AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,366,399
3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 3,974,683
------------------------------------------------------------------------------------------------------------------------------------
20,040 Total Missouri 12,912,459
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.3% (0.2% of Total Investments)
815 Montana Board of Housing, Single Family Mortgage Bonds, Series 12/09 at 100.00 AA+ 838,863
2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
1,000 Montana Higher Education Student Assistance Corporation, Student 12/09 at 100.00 A2 1,012,090
Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,815 Total Montana 1,850,953
------------------------------------------------------------------------------------------------------------------------------------
-----
55
-----
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.2% (0.1% of Total Investments)
$ 1,100 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call Aaa $ 1,106,820
Program, Series 1993A-5A, 6.200%, 6/01/13 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 4.4% (2.7% of Total Investments)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
8,000 0.000%, 1/01/19 - AMBAC Insured No Opt. Call AAA 3,885,360
4,000 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 3,588,920
3,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 2,397,000
15,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 A2 14,607,000
Catholic Healthcare West, Series 2007B, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
30,000 Total Nevada 24,478,280
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.1% (0.1% of Total Investments)
695 New Hampshire Housing Finance Authority, Single Family Mortgage 7/08 at 100.00 Aa2 716,823
Acquisition Revenue Bonds, Series 1995D, 6.550%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 6.0% (3.8% of Total Investments)
565 New Jersey Health Care Facilities Financing Authority, FHA-Insured 8/11 at 100.00 AAA 570,514
Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001,
4.800%, 8/01/21 - AMBAC Insured
1,830 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 AAA 1,907,629
Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA Insured
(Alternative Minimum Tax)
4,130 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,514,627
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/13 - AMBAC Insured
4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,643,720
System Bonds, Series 1999A, 5.750%, 6/15/18
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 7,021,600
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
9,305 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 10,095,367
3,165 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,530,589
1,365 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 1,589,351
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
------------------------------------------------------------------------------------------------------------------------------------
44,360 Total New Jersey 33,873,397
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.7% (0.5% of Total Investments)
4,000 University of New Mexico, FHA-Insured Mortgage Hospital Revenue 7/14 at 100.00 AAA 4,074,080
Bonds, Series 2004, 5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
New York - 12.0% (7.6% of Total Investments)
2,170 Dormitory Authority of the State of New York, Insured Revenue Bonds, 7/08 at 101.00 AA 2,218,022
Franciscan Health Partnership Obligated Group - Frances Shervier
Home and Hospital, Series 1997, 5.500%, 7/01/17 - RAAI Insured
7,500 Dormitory Authority of the State of New York, Secured Hospital 8/08 at 101.50 AAA 7,623,975
Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series
1998H, 5.300%, 8/15/21 - MBIA Insured
5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 5,063,800
Revenue Bonds, Series 1998A, 5.250%, 12/01/26 (Pre-refunded
6/01/08) - FSA Insured
Nassau County, New York, General Obligation Improvement Bonds,
Series 1999B:
4,005 5.250%, 6/01/19 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 4,208,414
7,005 5.250%, 6/01/21 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 7,360,784
6,000 New York City Industrial Development Agency, New York, American 8/16 at 101.00 B 5,883,120
Airlines-JFK International Airport Special Facility Revenue
Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
-----
56
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 5,000 New York City Municipal Water Finance Authority, New York, Water and 12/14 at 100.00 AAA $ 5,101,375
Sewer System Revenue Bonds, 5.000%, 6/15/36 - FSA Insured (UB)
8,800 New York City Sales Tax Asset Receivable Corporation, New York, 10/14 at 100.00 AAA 8,984,712
Dedicated Revenue Bonds, Local Government Assistance Corporation,
Series 2004A, 5.000%, 10/15/32 - AMBAC Insured
10,000 New York City Transitional Finance Authority, New York, Future Tax 8/09 at 101.00 AAA 10,549,900
Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded 8/15/09)
10,000 Port Authority of New York and New Jersey, Special Project Bonds, 6/08 at 102.00 AAA 10,148,200
JFK International Air Terminal LLC, Sixth Series 1997, 5.900%,
12/01/17 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
65,480 Total New York 67,142,302
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.7% (0.5% of Total Investments)
3,830 Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare 1/15 at 100.00 AA-(4) 4,159,686
System Revenue Bonds, DBA Carolinas Healthcare System, Series
2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 5.4% (3.4% of Total Investments)
2,300 Amherst Exempted Village School District, Ohio, Unlimited Tax 12/11 at 100.00 A1(4) 2,484,046
General Obligation School Improvement Bonds, Series 2001, 5.125%,
12/01/21 (Pre-refunded 12/01/11) - FGIC Insured
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
180 5.125%, 6/01/24 6/17 at 100.00 BBB 169,547
1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,674,900
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,572,943
3,930 5.875%, 6/01/47 6/17 at 100.00 BBB 3,477,736
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage 7/08 at 100.00 Aa2 3,634,891
Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A,
5.550%, 7/01/24 (Alternative Minimum Tax)
3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 5/14 at 100.00 AA 3,650,000
Series 2004A, 5.000%, 5/01/30
12,300 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 12,348,585
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
1,115 Warren County, Ohio, Limited Tax General Obligations, Series 1997, 6/08 at 101.00 Aa2 1,128,826
5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
30,650 Total Ohio 30,141,474
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.4% (0.3% of Total Investments)
2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aaa 2,468,111
Redevelopment Revenue Bonds, Series 2000A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 5.2% (3.3% of Total Investments)
3,480 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 4,096,030
Revenue Bonds, West Penn Allegheny Health System, Series 2000B,
9.250%, 11/15/22 (Pre-refunded 11/15/10)
1,030 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,045,553
Resource Recovery Revenue Refunding Bonds, Panther Creek Partners
Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax)
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 1,329,570
Bonds, Series 96A, 4.650%, 10/01/31 (Alternative Minimum Tax)
18,900 Philadelphia Airport System, Pennsylvania, Revenue Bonds, Series 6/08 at 102.00 A+ 19,019,825
1998A, 5.500%, 6/15/18 - FGIC Insured (Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 Aa3(4) 3,548,512
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,115 Total Pennsylvania 29,039,490
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 3.0% (1.9% of Total Investments)
2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior 7/18 at 100.00 BBB- 2,617,975
Lien Series 2008A, 6.000%, 7/01/44
-----
57
-----
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico (continued)
$ 12,500 Puerto Rico Housing Finance Authority, Capital Fund Program Revenue No Opt. Call AA $ 12,402,750
Bonds, Series 2003, 4.500%, 12/01/23
12,845 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call BBB+ 1,699,394
Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,845 Total Puerto Rico 16,720,119
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 3.5% (2.2% of Total Investments)
2,015 Central Falls, Rhode Island, General Obligation School Bonds, Series 5/09 at 102.00 AA 2,094,371
1999, 6.250%, 5/15/20 - RAAI Insured
3,500 Providence Redevelopment Agency, Rhode Island, Revenue Bonds, Public 4/10 at 101.00 Aaa 3,753,750
Safety and Municipal Building Projects, Series 1999A, 5.750%,
4/01/29 (Pre-refunded 4/01/10) - AMBAC Insured
Rhode Island Housing & Mortgage Finance Corporation, Homeownership
Opportunity Bond Program, Residual Trust 1038:
1,000 10.342%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 956,660
670 10.483%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 598,350
12,500 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 12,335,000
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
19,685 Total Rhode Island 19,738,131
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.3% (0.2% of Total Investments)
1,500 Greenville, South Carolina, Hospital Facilities Revenue Bonds, 5/11 at 101.00 AAA 1,501,080
Series 2001, 5.000%, 5/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.1% (1.4% of Total Investments)
6,400 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue 3/10 at 101.00 AAA 6,519,360
Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured (Alternative
Minimum Tax)
2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue 3/11 at 100.00 AAA 2,457,762
Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured
1,910 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 1,715,791
Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C,
5.250%, 9/01/36
1,500 Sumner County Health, Educational, and Housing Facilities Board, 11/17 at 100.00 N/R 1,360,095
Tennessee, Revenue Refunding Bonds, Sumner Regional Health System
Inc., Series 2007, 5.500%, 11/01/46
------------------------------------------------------------------------------------------------------------------------------------
12,235 Total Tennessee 12,053,008
------------------------------------------------------------------------------------------------------------------------------------
Texas - 15.0% (9.5% of Total Investments)
2,560 Brazos River Authority, Texas, Pollution Control Revenue Refunding 4/13 at 101.00 Caa1 2,503,654
Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32
(Alternative Minimum Tax)
4,675 Carrollton-Farmers Branch Independent School District, Dallas 2/09 at 100.00 AAA 4,817,401
County, Texas, Unlimited Tax School Building Bonds, Series 1999,
6.000%, 2/15/20 (Pre-refunded 2/15/09)
2,820 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 BBB- 2,492,119
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 -
FGIC Insured
Coppell Independent School District, Dallas County, Texas, Unlimited
Tax School Building and Refunding Bonds, Series 1999:
1,535 0.000%, 8/15/20 8/09 at 52.47 AAA 768,283
2,100 0.000%, 8/15/21 8/09 at 49.48 AAA 987,630
2,200 0.000%, 8/15/23 8/09 at 52.47 AAA 920,172
2,100 0.000%, 8/15/24 8/09 at 41.50 AAA 828,324
2,200 0.000%, 8/15/25 8/09 at 39.14 AAA 816,508
2,095 0.000%, 8/15/26 8/09 at 36.91 AAA 732,873
-----
58
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
Coppell Independent School District, Dallas County, Texas, Unlimited
Tax School Building and Refunding Bonds, Series 1999:
$ 3,595 0.000%, 8/15/20 (Pre-refunded 8/15/09) 8/09 at 52.47 N/R(4) $ 1,828,417
4,900 0.000%, 8/15/21 (Pre-refunded 8/15/09) 8/09 at 49.48 N/R(4) 2,350,187
5,145 0.000%, 8/15/23 (Pre-refunded 8/15/09) 8/09 at 44.01 N/R(4) 2,194,651
4,900 0.000%, 8/15/24 (Pre-refunded 8/15/09) 8/09 at 41.50 N/R(4) 1,971,123
5,150 0.000%, 8/15/25 (Pre-refunded 8/15/09) 8/09 at 39.14 N/R(4) 1,953,704
4,905 0.000%, 8/15/26 (Pre-refunded 8/15/09) 8/09 at 36.91 N/R(4) 1,754,813
820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA 882,140
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
Harris County Health Facilities Development Corporation, Texas,
Revenue Bonds, Christus Health, Series 1999A:
12,240 5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 12,752,122
11,180 5.375%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 11,647,771
2,205 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue No Opt. Call AAA 1,159,654
Refunding Bonds, Series 2001A, 0.000%, 11/15/20 - MBIA Insured
2,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call AAA 715,550
Convention and Entertainment Project, Series 2001B, 0.000%,
9/01/30 - AMBAC Insured
2,500 Jefferson County, Texas, Certificates of Obligation, Series 2000, 8/10 at 100.00 AAA 2,694,450
6.000%, 8/01/25 (Pre-refunded 8/01/10) - FSA Insured
2,000 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, Series 2001, 3/09 at 100.00 A-(4) 2,051,720
5.300%, 3/15/26 (Pre-refunded 3/15/09) - FGIC Insured
30,095 Leander Independent School District, Williamson and Travis Counties, 8/12 at 27.94 AAA 6,985,651
Texas, General Obligation Bonds, Series 2004, 0.000%, 8/15/34
9,345 Leander Independent School District, Williamson and Travis Counties, 8/15 at 37.33 AA- 2,300,365
Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/33 -
FGIC Insured
33,160 Leander Independent School District, Williamson and Travis Counties, 8/14 at 26.50 AAA 6,235,406
Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/38
1,000 San Antonio, Texas, Water System Revenue Bonds, Series 2005, 4.750%, 5/15 at 100.00 AAA 987,560
5/15/37 - MBIA Insured
4,390 Tarrant County, Texas, Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 4,194,645
Corporation, Revenue Bonds, Series 2007 Residuals 1760-3, 9.810%,
2/15/36 (IF)
7,000 White Settlement Independent School District, Tarrant County, Texas, 8/15 at 34.92 AAA 1,536,570
General Obligation Bonds, Series 2005, 0.000%, 8/15/35
Wylie Independent School District, Taylor County, Texas, General
Obligation Bonds, Series 2005:
3,000 0.000%, 8/15/20 8/15 at 78.46 AAA 1,659,720
3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,481,130
------------------------------------------------------------------------------------------------------------------------------------
175,315 Total Texas 84,204,313
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.2% (0.1% of Total Investments)
Utah Housing Finance Agency, Single Family Mortgage Bonds, Series
1999C-2, Class II:
285 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 Aaa 291,877
95 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 97,239
65 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/09 at 101.00 AA 66,621
1999D, 5.850%, 7/01/21 (Alternative Minimum Tax)
15 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/09 at 101.50 Aa3 15,440
1999F, 6.300%, 7/01/21 (Alternative Minimum Tax)
780 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/10 at 100.00 AA- 790,187
2000F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,240 Total Utah 1,261,364
------------------------------------------------------------------------------------------------------------------------------------
-----
59
-----
NAD | Nuveen Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.0% (0.0% of Total Investments)
$ 3,395 Virginia Small Business Financing Authority, Industrial Development 11/09 at 102.00 N/R $ 110,337
Water Revenue Bonds, S.I.L. Clean Water, LLC Project, Series
1999, 7.250%, 11/01/24 (Alternative Minimum Tax) (5)
------------------------------------------------------------------------------------------------------------------------------------
Washington - 11.3% (7.1% of Total Investments)
4,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/13 at 100.00 AA- 4,323,040
Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 - XLCA Insured
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999B:
1,755 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 1,811,827
2,590 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 2,667,415
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999C:
875 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 903,333
1,260 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 1,297,661
9,760 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series 1/11 at 101.00 AAA 10,603,362
2001A, 5.625%, 1/01/21 (Pre-refunded 1/01/11) - FSA Insured
6,935 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 7,075,503
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
11,605 Washington, Certificates of Participation, Washington Convention and 7/09 at 100.00 AAA 11,887,582
Trade Center, Series 1999, 5.250%, 7/01/16 - MBIA Insured
3,350 Washington, General Obligation Compound Interest Bonds, Series No Opt. Call AAA 2,193,011
1999S-2, 0.000%, 1/01/18 - FSA Insured
Washington, General Obligation Compound Interest Bonds, Series
1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call AA+ 10,298,952
18,470 0.000%, 1/01/21 No Opt. Call AA+ 10,152,036
------------------------------------------------------------------------------------------------------------------------------------
78,250 Total Washington 63,213,722
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 8.5% (5.3% of Total Investments)
650 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco 6/12 at 100.00 BBB 655,337
Settlement Asset-Backed Bonds, Series 2002, 6.000%, 6/01/17
1,690 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 1,862,938
5.000%, 11/01/29 (Pre-refunded 11/01/14) - FSA Insured
560 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 573,098
5.000%, 11/01/29 - FSA Insured
3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding 12/08 at 102.00 Aaa 3,918,128
Bonds, Dairyland Power Cooperative, Series 1997C,
5.550%, 2/01/15 - AMBAC Insured
7,410 Wisconsin Health and Educational Facilities Authority, Revenue 11/16 at 100.00 Aa1 7,321,006
Bonds, Ascension Health, Series 2006A, 5.000%, 11/15/36
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, FH Healthcare Development Inc., Series 1999:
8,375 6.250%, 11/15/20 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R(4) 8,952,791
5,000 6.250%, 11/15/28 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R(4) 5,344,950
4,180 Wisconsin Health and Educational Facilities Authority, Revenue 5/09 at 101.00 A 4,214,276
Bonds, Kenosha Hospital and Medical Center Inc., Series 1999,
5.625%, 5/15/29
12,700 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101.00 Aaa 12,820,523
Bonds, Mercy Health System Corporation, Series 1999, 5.500%,
8/15/25 - AMBAC Insured
2,200 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,862,696
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
46,575 Total Wisconsin 47,525,743
------------------------------------------------------------------------------------------------------------------------------------
$ 1,160,710 Total Long-Term Municipal Bonds (cost $864,658,836) 882,298,994
============------------------------------------------------------------------------------------------------------------------------
-----
60
-----
Shares Description (1) Value
------------------------------------------------------------------------------------------------------------------------------------
Investment Companies - 0.1% (0.1% of Total Investments)
9,000 BlackRock MuniHoldings Fund Inc. $ 132,930
32,332 Morgan Stanley Quality Municipal Income Trust 408,030
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $531,086) 540,960
---------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments (cost $865,189,922) - 157.5% 882,839,954
---------------------------------------------------------------------------------------------------------------------
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.4% (0.3% of Total Investments)
$ 2,680 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, VMIG-1 2,680,000
Variable Rate Demand Obligations, 4.010%, 5/01/41 - FGIC Insured (6)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $2,680,000) 2,680,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $867,869,922) - 157.9% 885,519,954
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.6)% (42,875,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 13,052,438
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.6)% (7) (295,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 560,697,392
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. Please see
the Portfolio Managers' Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Non-income producing security, in the case of a bond, generally denotes
that the issuer has defaulted on the payment of principal or interest or
has filed for bankruptcy.
(6) 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.
(7) Preferred Shares, at Liquidation Value as a percentage of total
investments is (33.3)%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
61
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NXZ | Nuveen Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 4.6% (2.9% of Total Investments)
$ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/11 at 101.00 A2(4) $ 20,250,100
2001A, 5.750%, 6/01/31 (Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.1% (0.7% of Total Investments)
2,955 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/11 at 100.00 AAA 3,167,701
Settlement Asset-Backed Bonds, Series 2001, 5.500%, 6/01/29
(Pre-refunded 6/01/11)
2,200 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,718,970
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
5,155 Total Alaska 4,886,671
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.7% (0.4% of Total Investments)
3,120 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 3,012,110
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.3% (0.2% of Total Investments)
1,185 Arkansas Development Finance Authority, Single Family Mortgage 1/12 at 100.00 AAA 1,171,918
Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series
2002C, 5.400%, 1/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
California - 12.6% (7.9% of Total Investments)
9,000 California County Tobacco Securitization Agency, Tobacco Settlement 12/18 at 100.00 Baa3 6,584,760
Asset-Backed Bonds, Los Angeles County Securitization Corporation,
Series 2006A, 0.000%, 6/01/36 (Mandatory put 6/01/11)
6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,168,240
Stanford University, Series 2001Q, 5.250%, 12/01/32
11,200 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/28 8/13 at 100.00 A+ 11,498,704
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 809,310
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
5,000 Golden State Tobacco Securitization Corporation, California, Tobacco 6/13 at 100.00 AAA 5,760,950
Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
20,000 Golden State Tobacco Securitization Corporation, California, Tobacco 6/15 at 100.00 AAA 18,968,000
Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%,
6/01/45 - FGIC Insured (UB)
6,000 Los Angeles Regional Airports Improvement Corporation, California, 12/12 at 102.00 B 5,740,200
Sublease Revenue Bonds, Los Angeles International Airport,
American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%,
12/01/24 (Alternative Minimum Tax)
120 Yuba County Water Agency, California, Yuba River Development Revenue 9/08 at 100.00 Baa3 119,340
Bonds, Pacific Gas and Electric Company, Series 1966A, 4.000%,
3/01/16
------------------------------------------------------------------------------------------------------------------------------------
58,320 Total California 55,649,504
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 9.0% (5.7% of Total Investments)
2,625 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 AAA 2,968,219
School Revenue Bonds, Peak-to-Peak Charter School, Series 2001,
7.500%, 8/15/21 (Pre-refunded 8/15/11)
Denver City and County Colorado, Airport Revenue Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A1 5,390,806
3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 A1 3,300,792
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A1 4,314,929
-----
62
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 AAA $ 2,951,600
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA Insured
1,280 Eagle County Air Terminal Corporation, Colorado, Airport Terminal 5/11 at 101.00 N/R 1,308,698
Revenue Bonds, Series 2001, 7.125%, 5/01/31 (Alternative Minimum
Tax)
755 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 787,359
Bonds, Series 2004, 5.000%,12/15/22 - FSA Insured
5,000 Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds, 6/11 at 102.00 AAA 5,408,350
Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded 6/15/11) - FSA
Insured
Northwest Parkway Public Highway Authority, Colorado, Senior Lien
Revenue Bonds, Series 2001B:
22,000 0.000%, 6/15/28 (Pre-refunded 6/15/11) - FSA Insured 6/11 at 35.65 AAA 7,037,140
17,650 0.000%, 6/15/29 (Pre-refunded 6/15/11) - AMBAC Insured 6/11 at 33.45 AAA 5,376,720
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment 6/14 at 101.00 N/R 1,056,280
Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
73,310 Total Colorado 39,900,893
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.3% (0.8% of Total Investments)
985 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 994,042
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
5,000 Washington Convention Center Authority, District of Columbia, Senior 10/16 at 100.00 AAA 4,710,050
Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%, 10/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,985 Total District of Columbia 5,704,092
------------------------------------------------------------------------------------------------------------------------------------
Florida - 5.1% (3.2% of Total Investments)
15,000 Jacksonville, Florida, Transportation Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 15,403,500
5.250%, 10/01/29 - MBIA Insured
4,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 4,327,480
Revenue Refunding Bonds, Miami Children's Hospital, Series 2001A,
5.125%, 8/15/26 (Pre-refunded 8/15/11) - AMBAC Insured
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 2,945,850
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,000 Total Florida 22,676,830
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 2.4% (1.5% of Total Investments)
Honolulu Board of Water Supply, Hawaii, Water System Revenue Bonds,
Series 2001:
3,000 5.250%, 7/01/26 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 3,232,200
6,725 5.250%, 7/01/31 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 7,245,515
------------------------------------------------------------------------------------------------------------------------------------
9,725 Total Hawaii 10,477,715
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 12.2% (7.7% of Total Investments)
3,590 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 A+ 3,615,417
Revenue Bonds, Stone Terrace Apartments, Series 2001A, 5.750%,
12/20/42 (Alternative Minimum Tax)
970 Chicago, Illinois, FNMA/GNMA Collateralized Single Family Mortgage 4/11 at 105.00 AAA 996,714
Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative Minimum
Tax)
3,985 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.250%, 1/11 at 101.00 AAA 4,064,541
1/01/33 - MBIA Insured
11,285 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.250%, 1/11 at 101.00 AAA 12,151,801
1/01/33 (Pre-refunded 1/01/11) - MBIA Insured
3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago 12/12 at 100.00 BBB(4) 3,618,904
Charter School Foundation, Series 2002A, 6.250%, 12/01/32
(Pre-refunded 12/01/12)
910 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 AAA 928,236
Wesleyan University, Series 2001, 5.500%, 9/01/32 - AMBAC Insured
4,090 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 AAA 4,451,229
Wesleyan University, Series 2001, 5.500%, 9/01/32 (Pre-refunded
9/01/11) - AMBAC Insured
-----
63
-----
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 3,100 Illinois Development Finance Authority, Revenue Bonds, Midwestern 5/11 at 101.00 AAA $ 3,425,810
University, Series 2001B, 6.000%, 5/15/31 (Pre-refunded 5/15/11)
3,150 Illinois Finance Authority, Revenue Bonds, Palos Community Hospital, 5/17 at 100.00 AAA 3,140,361
Series 2007A, Residuals 07-1028, 4.470%, 5/15/32 - MBIA Insured (IF)
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward Hospital 2/11 at 101.00 AAA 5,386,800
Obligated Group, Series 2001B, 5.250%, 2/15/34 (Pre-refunded
2/15/11) - FSA Insured
2,500 Illinois Housing Development Authority, Homeowner Mortgage Revenue 2/16 at 100.00 AA 2,413,250
Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative Minimum Tax)
2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/15/16 6/11 at 100.00 AAA 2,439,642
4,980 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/08 at 100.00 AAA 4,987,022
Refunding Bonds, McCormick Place Expansion Project, Series 1996A,
5.250%, 6/15/27 - AMBAC Insured
986 Montgomery, Illinois, Lakewood Creek Project Special Assessment 3/16 at 100.00 AA 896,629
Bonds, Series 2007, 4.700%, 3/01/30 - RAAI Insured
3,360 Northfield Township High School District 225, Cook County, Illinois, 12/16 at 69.01 AAA 1,361,774
Glenbrook, General Obligation School Bonds, Series 2007B, 0.000%,
12/01/24
------------------------------------------------------------------------------------------------------------------------------------
53,361 Total Illinois 53,878,130
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.4% (2.1% of Total Investments)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 9/11 at 100.00 BBB+ 1,774,260
Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,862,075
Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%,
8/15/15 - FSA Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 6/13 at 100.00 AAA 4,173,680
Series 2003A, 5.000%, 6/01/23 - FSA Insured
6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 6,103,111
Madison Center Inc., Series 1999, 5.800%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
14,600 Total Indiana 14,913,126
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.3% (0.2% of Total Investments)
1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 N/R(4) 1,102,510
Revenue Bonds, Wartburg College, Series 2002, 5.500%, 10/01/28
(Pre-refunded 10/01/12) - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 3.9% (2.5% of Total Investments)
17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 17,343,570
Improvement Bonds, Via Christi Health System Inc., Series
2001-III, 5.625%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.9% (3.1% of Total Investments)
3,960 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA- 3,751,744
4.500%, 5/01/41 - FGIC Insured (UB)
18,825 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 17,812,968
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
22,785 Total Louisiana 21,564,712
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.5% (2.2% of Total Investments)
15,585 Massachusetts Turnpike Authority, Metropolitan Highway System 7/08 at 101.00 AAA 15,595,130
Revenue Bonds, Senior Series1997A, 5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 15.0% (9.4% of Total Investments)
Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds,
Series 2001A:
20,000 5.500%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 A(4) 21,876,200
15,390 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+(4) 16,532,554
14,610 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+(4) 15,736,139
-----
64
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Michigan (continued)
$ 4,000 Michigan Municipal Bond Authority, Public School Academy Revenue 10/09 at 102.00 Ba1 $ 4,110,280
Bonds, Detroit Academy of Arts and Sciences Charter School,
Series 2001A, 8.000%, 10/01/31
2,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 BB- 1,876,820
Detroit Medical Center Obligated Group, Series 1998A, 5.125%,
8/15/18
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/08 at 100.00 BB- 2,001,660
4,000 6.500%, 8/15/18 8/08 at 100.00 BB- 4,001,480
------------------------------------------------------------------------------------------------------------------------------------
62,000 Total Michigan 66,135,133
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 3.4% (2.1% of Total Investments)
14,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 14,944,720
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 (Pre-refunded
1/01/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 5.1% (3.2% of Total Investments)
21,000 Missouri Health and Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 22,743,420
SSM Healthcare System, Series 2001A, 5.250%, 6/01/28 (Pre-refunded
6/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.6% (0.4% of Total Investments)
2,490 Montana Board of Housing, Single Family Program Bonds, Series 12/10 at 100.00 AA+ 2,496,499
2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Nevada - 6.3% (4.0% of Total Investments)
12,275 Director of Nevada State Department of Business and Industry, Revenue 1/10 at 100.00 AAA 9,807,725
Bonds, Las Vegas Monorail Project, First Tier, Series 2000,
5.375%, 1/01/40 - AMBAC Insured
3,500 Director of Nevada State Department of Business and Industry, Revenue 1/10 at 102.00 N/R 1,115,975
Bonds, Las Vegas Monorail Project, Second Tier, Series 2000,
7.375%, 1/01/40
2,330 Henderson, Nevada, Healthcare Facility Revenue Bonds, Catholic 7/08 at 101.00 A(4) 2,365,533
Healthcare West, Series 1998A, 5.250%, 7/01/18 (Pre-refunded
7/01/08)
8,000 Henderson, Nevada, Healthcare Facility Revenue Refunding Bonds, 7/17 at 100.00 A2 7,790,400
Catholic Healthcare West, Series 2007B, 5.250%, 7/01/31 (UB)
7,000 Reno, Nevada, Health Facility Revenue Bonds, Catholic Healthcare 7/17 at 100.00 A2 6,816,460
West, Series 2007A, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
33,105 Total Nevada 27,896,093
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.1% (1.3% of Total Investments)
8,000 New Hampshire Business Finance Authority, Pollution Control 10/08 at 102.00 Baa1 8,095,600
Remarketed Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1992A, 5.850%, 12/01/22
1,210 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100.00 Aa2 1,237,116
Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,210 Total New Hampshire 9,332,716
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.4% (1.5% of Total Investments)
3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 3,663,974
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
415 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 450,250
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,200 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,470,908
425 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 494,853
3,085 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,520,201
------------------------------------------------------------------------------------------------------------------------------------
10,120 Total New Jersey 10,600,186
------------------------------------------------------------------------------------------------------------------------------------
-----
65
-----
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 5.6% (3.6% of Total Investments)
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
$ 12,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA-(4) $ 13,114,440
10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA-(4) 11,802,996
------------------------------------------------------------------------------------------------------------------------------------
22,800 Total New Mexico 24,917,436
------------------------------------------------------------------------------------------------------------------------------------
New York - 9.4% (6.0% of Total Investments)
1,300 Dormitory Authority of the State of New York, Revenue Bonds, Mount 7/10 at 101.00 Baa1 1,353,391
Sinai NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19
3,600 Dormitory Authority of the State of New York, Revenue Bonds, Mount 7/10 at 101.00 Baa1(4) 3,946,032
Sinai NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19
(Pre-refunded 7/01/10)
6,000 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 AAA 6,477,600
Revenue Bonds, Series 2001L, 5.375%, 5/01/33 (Pre-refunded
5/01/11)
12,800 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 12,557,440
Revenue Bonds, Series 2006B, 4.500%, 11/15/32 - FSA Insured (UB)
5,000 New York City Industrial Development Agency, New York, Special 8/12 at 101.00 B 5,151,550
Facilities Revenue Bonds, JFK Airport - American Airlines Inc.,
Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax)
12,000 New York City Municipal Water Finance Authority, New York, Water and 6/11 at 101.00 AA+ 12,229,080
Sewerage System Revenue Bonds, Fiscal Series 2001C, 5.125%,
6/15/33
------------------------------------------------------------------------------------------------------------------------------------
40,700 Total New York 41,715,093
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.7% (1.1% of Total Investments)
2,950 North Carolina Capital Facilities Financing Agency, Revenue Bonds, 4/13 at 100.00 A- 2,876,014
Johnson and Wales University, Series 2003A, 5.000%, 4/01/33 - XLCA
Insured
4,500 North Carolina Eastern Municipal Power Agency, Power System Revenue 1/09 at 102.00 Baa1 4,623,570
Refunding Bonds, Series 1999B, 5.600%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
7,450 Total North Carolina 7,499,584
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.4% (0.3% of Total Investments)
1,880 North Dakota Housing Finance Agency, Home Mortgage Finance Program 7/10 at 100.00 Aa1 1,935,328
Refunding Bonds, Series 2001A, 5.550%, 1/01/32 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.2% (0.1% of Total Investments)
1,000 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 884,920
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 5.875%, 6/01/47
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.9% (0.5% of Total Investments)
Oklahoma Development Finance Authority, Revenue Refunding Bonds,
Hillcrest Healthcare System, Series 1999A:
2,655 5.125%, 8/15/10 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 2,768,873
1,000 5.200%, 8/15/11 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 1,043,830
------------------------------------------------------------------------------------------------------------------------------------
3,655 Total Oklahoma 3,812,703
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 3.9% (2.5% of Total Investments)
8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 AA- 8,194,000
Refunding Bonds, Legacy Health System, Series 2001, 5.250%,
5/01/21
9,000 Oregon Department of Administrative Services, Certificates of 5/11 at 101.00 AAA 9,169,740
Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Oregon 17,363,740
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.5% (2.2% of Total Investments)
5,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 5,885,100
Revenue Bonds, West Penn Allegheny Health System, Series 2000B,
9.250%, 11/15/30 (Pre-refunded 11/15/10)
-----
66
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania (continued)
$ 1,155 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- $ 1,172,441
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
8,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 8,486,640
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
------------------------------------------------------------------------------------------------------------------------------------
14,155 Total Pennsylvania 15,544,181
------------------------------------------------------------------------------------------------------------------------------------
Texas - 25.3% (16.0% of Total Investments)
7,500 Austin, Texas, Electric Utility System Revenue Refunding Bonds, 11/10 at 100.00 AAA 7,563,900
Series 2001, 5.000%, 11/15/30 - FSA Insured
Dallas-Fort Worth International Airport Public Facility
Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001:
15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,144,450
1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,765,995
6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional 9/14 at 100.00 N/R 6,149,340
Health System, Series 2004A, 7.125%, 9/01/34
10,000 Gulf Coast Industrial Development Authority, Texas, Solid Waste 4/12 at 100.00 Baa3 10,719,200
Disposal Revenue Bonds, Citgo Petroleum Corporation Project,
Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax)
30,980 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA 31,126,223
Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured
40,000 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue 11/30 at 54.04 AAA 5,470,000
Refunding Bonds, Series 2001A, 0.000%, 11/15/40 - MBIA Insured
Hays Consolidated Independent School District, Hays County, Texas,
General Obligation School Building Bonds, Series 2001:
10,715 0.000%, 8/15/25 (Pre-refunded 8/15/11) 8/11 at 43.18 AAA 4,192,994
12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 4,761,920
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds,
Convention and Entertainment Project, Series 2001B:
5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call AAA 1,431,100
5,540 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,495,855
5,000 Metro Health Facilities Development Corporation, Texas, Hospital 1/11 at 100.00 Ba3 5,059,850
Revenue Bonds, Wilson N. Jones Memorial Hospital, Series 2001,
7.250%, 1/01/31
4,390 Tarrant County, Texas, Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 4,194,645
Corporation, Revenue Bonds, Series 2007, Residuals 1760-3,
9.810%, 2/15/36 (IF)
10,500 Texas, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aa1 10,754,835
Program, Series 2001, 5.250%, 8/01/35
2,000 Tom Green County Health Facilities Development Corporation, Texas, 5/11 at 101.00 Baa3 2,088,900
Hospital Revenue Bonds, Shannon Health System Project, Series
2001, 6.750%, 5/15/21
------------------------------------------------------------------------------------------------------------------------------------
167,315 Total Texas 111,919,207
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.3% (0.2% of Total Investments)
5,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 23.55 AAA 1,170,950
Bonds, Route 895 Connector Toll Road, Series 1998B, 0.000%,
8/15/33 (Pre-refunded 8/15/08)
------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.3% (3.3% of Total Investments)
Seattle, Washington, Municipal Light and Power Revenue Refunding
and Improvement Bonds, Series 2001:
4,820 5.500%, 3/01/19 - FSA Insured 3/11 at 100.00 AAA 5,058,590
7,250 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 7,456,625
7,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 AAA 7,825,800
Sisters of Providence Health System, Series 2001A, 5.250%,
10/01/21 - MBIA Insured
940 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 959,044
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
-----
67
-----
NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 2,100 Washington, Certificates of Participation, Washington Convention 7/09 at 100.00 AAA $ 2,147,397
and Trade Center, Series 1999, 5.125%, 7/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,610 Total Washington 23,447,456
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1% (0.7% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,895,100
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.3% (0.2% of Total Investments)
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/12 at 100.00 N/R(4) 1,150,741
Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26
(Pre-refunded 5/01/12)
------------------------------------------------------------------------------------------------------------------------------------
$ 783,121 Total Long-Term Investments (cost $667,204,065) - 158.1% 698,532,217
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.5% (0.3% of Total Investments)
$ 1,950 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS VMIG-1 1,950,000
660, Variable Rate Demand Obligations, 4.010%, 5/01/41 - FGIC
Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,950,000) 1,950,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $669,154,065) - 158.6% 700,482,217
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.7)% (47,171,650)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 10,421,984
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (6) (222,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 441,732,551
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. Please see
the Portfolio Managers' Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (31.7)%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
68
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Municipal Bonds - 154.8% (99.4% of Total Investments)
Alabama - 1.6% (1.0% of Total Investments)
$ 3,500 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 3,457,965
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 AAA 6,106,552
Department Facilities, Series 2001, 5.250%, 10/01/26
(Pre-refunded 10/01/11) - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,155 Total Alabama 9,564,517
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.8% (0.5% of Total Investments)
4,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 4,019,000
Series 1998A, 5.250%, 7/01/14 (Pre-refunded 7/01/08) - AMBAC
Insured (Alternative Minimum Tax)
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 781,350
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Alaska 4,800,350
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.3% (0.2% of Total Investments)
2,200 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 1,975,161
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.7% (0.4% of Total Investments)
Sebastian County Health Facilities Board, Arkansas, Hospital
Revenue Improvement Bonds, Sparks Regional Medical Center,
Series 2001A:
1,805 5.500%, 11/01/13 11/11 at 101.00 Baa3 1,872,615
1,900 5.500%, 11/01/14 11/11 at 101.00 Baa3 1,960,268
------------------------------------------------------------------------------------------------------------------------------------
3,705 Total Arkansas 3,832,883
------------------------------------------------------------------------------------------------------------------------------------
California - 13.9% (8.9% of Total Investments)
California Health Facilities Financing Authority, Health Facility
Revenue Bonds, Adventist Health System/West, Series 2003A:
855 5.000%, 3/01/28 3/13 at 100.00 A 830,846
140 5.000%, 3/01/33 3/13 at 100.00 A 132,016
2,900 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 2,830,052
Sutter Health, Series 2007A, 5.000%, 11/15/42
10,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 10,681,400
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 5,074,300
Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%,
8/01/31
18,850 California, General Obligation Veterans Welfare Bonds, Series 6/08 at 100.00 AAA 18,854,145
2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative Minimum Tax)
11,865 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 9,602,463
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
-----
69
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
Los Angeles Regional Airports Improvement Corporation, California,
Lease Revenue Refunding Bonds, LAXFUEL Corporation at Los Angeles
International Airport, Series 2001:
$ 13,955 5.750%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA $ 14,428,354
5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 5,046,750
1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 1,503,855
10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 10,032,100
10,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 2,009,200
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
3,000 San Mateo County Community College District, California, General No Opt. Call AAA 935,850
Obligation Bonds, Series 2006C, 0.000%, 9/01/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
93,065 Total California 81,961,331
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 6.7% (4.3% of Total Investments)
2,250 Canterberry Crossing Metropolitan District II, Parker, Colorado, 12/12 at 100.00 N/R 2,303,145
Limited Tax General Obligation Bonds, Series 2002, 7.375%,
12/01/32
1,575 Colorado Educational and Cultural Facilities Authority, Charter 3/13 at 100.00 N/R(4) 1,830,276
School Revenue Bonds, Belle Creek Education Center, Series
2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13)
3,200 Colorado Educational and Cultural Facilities Authority, Charter 3/10 at 102.00 N/R(4) 3,514,944
School Revenue Bonds, Montessori Peaks Building Foundation,
Series 2002A, 8.000%, 5/01/32 (Pre-refunded 3/01/10)
1,775 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1(4) 2,006,229
School Revenue Bonds, Weld County School District 6 - Frontier
Academy, Series 2001, 7.375%, 6/01/31 (Pre-refunded 6/01/11)
3,560 Colorado Educational and Cultural Facilities Authority, Revenue 5/16 at 102.00 N/R 3,142,839
Bonds, Montessori Peaks Academy, Series 2006, 5.400%, 5/01/26
3,380 Colorado Housing Finance Authority, Multifamily Project Bonds, 10/11 at 100.00 AAA 3,386,084
Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative Minimum
Tax)
5,000 Compark Business Campus Metropolitan District, Colorado, General 12/17 at 100.00 AA 5,047,700
Obligation Limited Tax Bonds, Series 2007, 5.600%, 12/01/34 -
RAAI Insured
2,000 Denver City and County, Colorado, Airport System Revenue Refunding 11/11 at 100.00 A+ 2,035,020
Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC Insured
(Alternative Minimum Tax)
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 A1 5,390,806
3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 A1 3,300,792
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A1 4,314,929
2,000 Maher Ranch Metropolitan District 4, Colorado, General Obligation 12/17 at 100.00 AA 1,919,920
Limited Tax Bonds, Series 2007, 5.250%, 12/01/36 - RAAI Insured
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment 6/14 at 101.00 N/R 1,056,280
Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
38,740 Total Colorado 39,248,964
------------------------------------------------------------------------------------------------------------------------------------
Delaware - 0.3% (0.2% of Total Investments)
1,700 Delaware Housing Authority, Multifamily Mortgage Revenue Bonds, 7/12 at 100.00 Aa3 1,744,795
Series 2001A, 5.400%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.9% (0.6% of Total Investments)
1,375 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 1,417,900
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,102,817
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax Revenue 10/16 at 100.00 AAA 2,754,977
Bonds, Residual Series 1730, 1731, 1736, 5.233%, 10/01/30 - AMBAC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,045 Total District of Columbia 5,275,694
------------------------------------------------------------------------------------------------------------------------------------
-----
70
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.3% (1.6% of Total Investments)
Orange County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
$ 1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA $ 1,093,077
2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,145,283
4,175 Pace Property Finance Authority Inc., Florida, Utility System 9/08 at 101.00 AAA 4,266,224
Improvement and Revenue Refunding Bonds, Series 1997, 5.250%,
9/01/17 - AMBAC Insured
5,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 5,323,480
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42
1,000 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R 978,620
Assessment Bonds, Series 2007, 6.650%, 5/01/40
------------------------------------------------------------------------------------------------------------------------------------
13,930 Total Florida 13,806,684
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.4% (1.6% of Total Investments)
5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 A+ 5,023,400
5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax)
2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, 12/11 at 101.00 AAA 3,193,182
Series 2001, 7.900%, 12/01/24 (Pre-refunded 12/01/11)
2,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 1,514,100
Revenue Bonds, Elderly Care, Lenbrook Square Project, Series
2006A, 5.125%, 7/01/42
3,740 Gainesville and Hall County Hospital Authority, Georgia, Revenue 5/11 at 100.00 A-(4) 4,006,999
Anticipation Certificates, Northeast Georgia Health Services
Inc., Series 2001, 5.500%, 5/15/31 (Pre-refunded 5/15/11)
500 Gainesville Redevelopment Authority, Georgia, Educational 3/17 at 100.00 N/R 401,870
Facilities Revenue Bonds, Riverside Military Academy Project,
Series 2007, 5.125%, 3/01/37
------------------------------------------------------------------------------------------------------------------------------------
13,940 Total Georgia 14,139,551
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 19.4% (12.4% of Total Investments)
16,000 Chicago Greater Metropolitan Water Area Sanitary District, 12/16 at 100.00 AAA 17,850,400
Illinois, General Obligation Bonds, Series 2006, 5.000%,
12/01/35 (UB)
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 8,674,825
5.500%, 1/01/19 - FSA Insured (Alternative Minimum Tax)
1,750 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 7/08 at 102.00 AAA 1,781,150
1/01/28 - FGIC Insured
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AAA 4,900,550
Bonds, O'Hare International Airport, Series 2001A, 5.375%,
1/01/32 - AMBAC Insured (Alternative Minimum Tax)
5,000 Chicago, Illinois, Second Lien Wastewater Transmission Revenue 1/11 at 100.00 AAA 5,361,400
Bonds, Series 2001A, 5.500%, 1/01/26 (Pre-refunded 1/01/11) -
AMBAC Insured
2,220 Chicago, Illinois, Second Lien Wastewater Transmission Revenue No Opt. Call AAA 2,475,167
Bonds, Series 2001A, 5.500%, 1/01/16 - MBIA Insured
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 11/11 at 100.00 AAA 10,751,700
5.000%, 11/01/26 (Pre-refunded 11/01/11) - AMBAC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,623,408
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
2,415 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 2,437,822
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/24 - AMBAC Insured
2,385 Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, 8/17 at 100.00 A- 2,236,844
Series 2007A, 5.500%, 8/01/37
1,130 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa3 1,156,781
Medical Center, Series 2000, 6.500%, 5/15/30
-----
71
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB $ 9,065,340
Retirement Communities Inc., Series 2001, 5.875%, 12/01/31
15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa2(4) 16,480,350
University Health System, Series 2001A, 6.125%, 7/01/31
(Pre-refunded 7/01/11)
5,000 Lake County School District 38, Big Hallow, Illinois, General No Opt. Call Aaa 2,528,350
Obligation Bonds, Series 2005, 0.000%, 2/01/22 - AMBAC Insured
7,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 7,139,580
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
16,900 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 17,244,760
Bonds, McCormick Place Expansion Project, Series 1999A, 5.250%,
12/15/28 - FGIC Insured
2,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,208,440
Refunding Bonds, McCormick Place Expansion Project, Series
1998A, 5.500%, 6/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
110,790 Total Illinois 113,916,867
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 6.0% (3.8% of Total Investments)
Clark-Pleasant Community School Building Corporation, Indiana,
First Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,346,239
1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,072,700
Evansville Vanderburgh Public Library Lease Corporation, Indiana,
First Mortgage Bonds, Series 2001:
2,000 5.750%, 7/15/18 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,197,760
2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,961,943
1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 AAA 1,346,338
Corporation, Indiana, First Mortgage Bonds, Series 2001,
5.125%, 1/15/23 (Pre-refunded 1/15/12) - AMBAC Insured
9,500 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 9,849,790
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
4,230 Indiana Finance Authority, Educational Facilities Revenue Bonds, 6/15 at 100.00 Aa3 4,297,892
Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,800,000
Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 -
AMBAC Insured
3,500 University of Southern Indiana, Student Fee Bonds, Series 2001H, 10/11 at 100.00 Aaa 3,568,635
5.000%, 10/01/21 - AMBAC Insured
Vigo County, Indiana, Hospital Authority, Union Hospital, Revenue
Bonds, Series 2007:
2,500 5.750%, 9/01/42 9/17 at 100.00 N/R 2,189,350
2,500 5.800%, 9/01/47 9/17 at 100.00 N/R 2,175,850
1,090 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 AAA 1,216,865
Bonds, Series 2001, 5.500%, 7/15/22 (Pre-refunded 1/15/13) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,375 Total Indiana 35,023,362
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 6.2% (4.0% of Total Investments)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River 5/11 at 100.00 Aaa 2,022,320
Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured
Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2001B:
28,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 29,906,518
3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,300,168
------------------------------------------------------------------------------------------------------------------------------------
33,950 Total Iowa 36,229,006
------------------------------------------------------------------------------------------------------------------------------------
-----
72
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
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 $ 825,360
1,000 5.125%, 5/15/42 5/14 at 103.00 N/R 814,140
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Kansas 1,639,500
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 3.2% (2.1% of Total Investments)
18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 19,001,718
Kentucky, Sewer and Drainage System Revenue Bonds, Series
2001A, 5.125%, 5/15/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.6% (3.0% of Total Investments)
2,000 Greystone Community Development District, Louisiana, Special 12/14 at 100.00 N/R 1,998,920
Assessment Bonds, Livingston Parish, Series 2007, 6.750%,
12/01/22
3,000 Louisiana Local Government Environmental Facilities & Community 11/17 at 100.00 BB+ 2,955,870
Development Authority, Revenue Bonds, Westlake Chemical
Corporation Project, Series 2007, 6.750%, 11/01/32
3,700 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 3,554,960
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 18,820,712
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
28,590 Total Louisiana 27,330,462
------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.1% (0.7% of Total Investments)
Maine State Housing Authority, Single Family Mortgage Purchase
Bonds, Series 2001B:
4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,641,809
1,610 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,627,807
------------------------------------------------------------------------------------------------------------------------------------
6,220 Total Maine 6,269,616
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 2.5% (1.6% of Total Investments)
1,000 Howard County, Maryland, Retirement Community Revenue Bonds, 4/17 at 100.00 N/R 801,250
Vantage House, Series 2007B, 5.250%, 4/01/37
1,570 Maryland Community Development Administration, Insured Multifamily 7/11 at 100.00 Aa2 1,576,924
Housing Mortgage Loan Revenue Bonds, Series 2001B, 5.250%,
7/01/21 (Alternative Minimum Tax)
2,000 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 1,555,520
Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%,
12/01/31
10,600 Maryland Energy Financing Administration, Revenue Bonds, AES 6/08 at 100.00 N/R 10,232,286
Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative
Minimum Tax)
555 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB+ 478,321
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
15,725 Total Maryland 14,644,301
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.3% (0.9% of Total Investments)
1,375 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 BB- 1,229,883
Cove, Series 2007, 5.250%, 10/01/26
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BBB- 904,650
Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30
5,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 AAA 4,818,150
Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 - AMBAC
Insured (Alternative Minimum Tax)
1,155 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 909,978
Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
8,530 Total Massachusetts 7,862,661
------------------------------------------------------------------------------------------------------------------------------------
-----
73
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 9.8% (6.3% of Total Investments)
$ 15,000 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA $ 17,503,350
Tax School Building and Site Improvement Bonds, Series 2001A,
6.000%, 5/01/29 - FSA Insured
2,000 Garden City Hospital Finance Authority, Michigan, Revenue Bonds, 8/17 at 100.00 N/R 1,539,180
Garden City Hospital Obligated Group, Series 2007A, 5.000%,
8/15/38
11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum 7/11 at 101.00 AA(4) 11,983,730
Health, Series 2001A, 5.500%, 1/15/31 (Pre-refunded 7/15/11)
1,235 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,308,371
Program, Series 2001I, 5.500%, 10/15/18
1,355 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 Ba3 1,222,047
Detroit Medical Center Obligated Group, Series 1998A, 5.250%,
8/15/23
3,485 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 3,772,164
Refunding Bonds, Sisters of Mercy Health Corporation, Series
1993P, 5.375%, 8/15/14 - MBIA Insured (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Sparrow Obligated Group, Series 2001:
1,400 5.500%, 11/15/21 (Pre-refunded 11/15/11) 11/11 at 101.00 A+(4) 1,533,812
2,500 5.625%, 11/15/31 (Pre-refunded 11/15/11) 11/11 at 101.00 A+(4) 2,749,375
3,500 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 AA 3,490,235
Health Care Group, Series 2006A, 5.000%, 12/01/31
12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 AAA 12,794,208
Bonds, William Beaumont Hospital, Series 2001M, 5.250%,
11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
54,115 Total Michigan 57,896,472
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.6% (0.4% of Total Investments)
2,290 Dakota County Community Development Agency, Minnesota, GNMA 10/11 at 105.00 Aaa 2,335,571
Collateralized Multifamily Housing Revenue Bonds, Rose
Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative
Minimum Tax)
1,375 Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, Regions 8/16 at 100.00 N/R 1,117,944
Hospital Parking Ramp Project, Series 2007-1, 5.000%, 8/01/36
------------------------------------------------------------------------------------------------------------------------------------
3,665 Total Minnesota 3,453,515
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.9% (0.6% of Total Investments)
2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/09 at 103.00 AAA 2,163,469
Retirement Facility Mortgage Revenue Refunding Bonds,
Aldersgate Retirement Community Inc. Project, Series 1999A,
5.450%, 5/20/34
3,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 3,015,960
Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%,
9/01/24
------------------------------------------------------------------------------------------------------------------------------------
5,155 Total Mississippi 5,179,429
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.9% (1.9% of Total Investments)
1,495 Cape Girardeau County Industrial Development Authority, Missouri, 6/17 at 100.00 N/R 1,268,134
Health Facilities Revenue Bonds, Southeast Missouri Hospital
Association, Series 2007, 5.000%, 6/01/36
1,000 Clinton County Industrial Development Authority, Missouri, Revenue 12/17 at 100.00 N/R 806,120
Bonds, Cameron Regional Medical Center, Series 2007, 5.000%,
12/01/32
1,825 Fenton, Missouri, Tax Increment Refunding and Improvement Revenue 10/12 at 100.00 N/R(4) 2,053,326
Bonds, Gravois Bluffs Redevelopment Project, Series 2002,
6.125%, 10/01/21 (Pre-refunded 10/01/12)
Missouri Development Finance Board, Cultural Facilities Revenue
Bonds, Nelson Gallery Foundation, Series 2001A:
3,335 5.250%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 3,491,578
3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,674,795
3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 3,868,480
2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,129,189
------------------------------------------------------------------------------------------------------------------------------------
16,900 Total Missouri 17,291,622
------------------------------------------------------------------------------------------------------------------------------------
-----
74
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.8% (0.5% of Total Investments)
$ 5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B+ $ 4,838,150
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.7% (1.1% of Total Investments)
Nebraska Investment Finance Authority, Single Family Housing
Revenue Bonds, Series 2001D:
2,245 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,267,719
3,015 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,047,291
4,490 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 4,444,247
Revenue Bonds, Nebraska City 2, Series 2006A, 5.000%, 2/01/49 -
AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
9,750 Total Nebraska 9,759,257
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.3% (0.8% of Total Investments)
2,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 1,598,000
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 1,275,400
Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series
2000, 7.375%, 1/01/40
200 Nevada Housing Division, Single Family Mortgage Bonds, Senior 10/08 at 101.50 Aaa 201,866
Series 1998A-1, 5.300%, 4/01/18 (Alternative Minimum Tax)
4,290 University of Nevada, Revenue Bonds, Community College System, 1/12 at 100.00 AA-(4) 4,636,031
Series 2001A, 5.250%, 7/01/26 (Pre-refunded 1/01/12) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
10,490 Total Nevada 7,711,297
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.4% (0.2% of Total Investments)
2,000 New Hampshire Health and Education Authority, Hospital Revenue 10/11 at 101.00 Aaa 2,126,240
Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.9% (2.5% of Total Investments)
10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 Aaa 9,731,300
Revenue Bonds, American Water Company, Series 2002A, 5.250%,
11/01/32 - AMBAC Insured (Alternative Minimum Tax)
115 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 96,064
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,509,161
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/13 - AMBAC Insured
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 7,021,600
System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured
2,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,581,840
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
36,240 Total New Jersey 22,939,965
------------------------------------------------------------------------------------------------------------------------------------
New York - 3.9% (2.5% of Total Investments)
900 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 793,170
Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/32
1,780 East Rochester Housing Authority, New York, GNMA Secured Revenue 10/11 at 101.00 AAA 1,802,375
Bonds, Gates Senior Housing Inc., Series 2001, 5.300%, 4/20/31
220 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 175,736
Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF)
4,360 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 4,067,488
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
4,155 Monroe County Airport Authority, New York, Revenue Refunding No Opt. Call AAA 4,416,183
Bonds, Greater Rochester International Airport, Series 1999,
5.750%, 1/01/13 - MBIA Insured (Alternative Minimum Tax)
-----
75
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 7,000 New York City Industrial Development Agency, New York, American 8/16 at 101.00 B $ 6,863,640
Airlines-JFK International Airport Special Facility Revenue
Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
1,715 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 AAA 1,844,757
2002G, 5.625%, 8/01/20 - MBIA Insured
785 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 Aaa 870,463
2002G, 5.625%, 8/01/20 (Pre-refunded 8/01/12) - MBIA Insured
2,000 New York State Tobacco Settlement Financing Corporation, Tobacco 6/11 at 100.00 AA- 2,087,400
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
22,915 Total New York 22,921,212
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.8% (0.5% of Total Investments)
1,200 Charlotte-Mecklenburg Hospital Authority, North Carolina, Health 1/17 at 100.00 AA- 1,191,852
Care System Revenue Bonds, Carolinas Health Care, Series 2007A,
5.000%, 1/15/31
1,750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA-(4) 1,887,673
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15)
1,800 North Carolina Municipal Power Agency 1, Catawba Electric Revenue No Opt. Call A2 1,904,436
Bonds, Series 2003A, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
4,750 Total North Carolina 4,983,961
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 3.2% (2.0% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
3,535 5.125%, 6/01/24 6/17 at 100.00 BBB 3,329,723
710 5.875%, 6/01/30 6/17 at 100.00 BBB 660,655
685 5.750%, 6/01/34 6/17 at 100.00 BBB 619,233
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,389,324
1,715 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/08 at 101.50 Aaa 1,724,776
Program Residential Mortgage Revenue Bonds, Series 1998A-1,
5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax)
7,200 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 7,228,440
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
Portage County, Ohio, General Obligation Bonds, Series 2001:
1,870 5.000%, 12/01/21 - FGIC Insured 12/11 at 100.00 AA 1,931,130
1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AA 1,819,251
------------------------------------------------------------------------------------------------------------------------------------
19,060 Total Ohio 18,702,532
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.6% (1.7% of Total Investments)
Oklahoma Development Finance Authority, Revenue Bonds, Saint John
Health System, Series 2007:
6,000 5.000%, 2/15/37 2/17 at 100.00 AA- 5,909,520
2,735 5.000%, 2/15/42 2/17 at 100.00 AA- 2,673,709
2,500 Oklahoma Development Finance Authority, Revenue Refunding Bonds, 8/09 at 101.00 AAA 2,623,000
Hillcrest Healthcare System, Series 1999A, 5.625%, 8/15/29
(Pre-refunded 8/15/09)
4,305 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 4,246,667
Bonds, Saint Francis Health System, Series 2006, 5.000%,
12/15/36
------------------------------------------------------------------------------------------------------------------------------------
15,540 Total Oklahoma 15,452,896
------------------------------------------------------------------------------------------------------------------------------------
-----
76
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.5% (1.6% of Total Investments)
$ 4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AAA $ 4,839,355
Authority, Revenue Bonds, PeaceHealth Project, Series 2001,
5.250%, 11/15/21 - AMBAC Insured
10,000 Oregon Housing and Community Services Department, Multifamily 7/10 at 100.00 Aaa 10,043,300
Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,700 Total Oregon 14,882,655
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.1% (1.3% of Total Investments)
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
2,000 9.250%, 11/15/22 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 2,354,040
2,000 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 2,354,040
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 416,010
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,500 Pennsylvania Economic Development Financing Authority, Senior 7/08 at 100.00 B+ 3,500,595
Lien Resource Recovery Revenue Bonds, Northampton Generating
Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 Aa3(4) 3,548,512
Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,205 Total Pennsylvania 12,173,197
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.4% (0.3% of Total Investments)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 A+ 2,505,225
Bonds, Series 2007A, 5.250%, 8/01/57
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.3% (0.8% of Total Investments)
6,850 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/11 at 100.00 Aaa 7,466,432
Series 2001A, 5.500%, 10/01/22 (Pre-refunded 10/01/11) - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.9% (1.2% of Total Investments)
3,680 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- 495,917
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2006, 0.000%, 1/01/41
5,210 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 5,499,103
Revenue Bonds, Series 2001A, 5.500%, 3/01/14 - FSA Insured
(Alternative Minimum Tax)
275 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 247,038
Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C,
5.250%, 9/01/36
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 11/17 at 100.00 N/R 743,944
2,800 5.500%, 11/01/46 11/17 at 100.00 N/R 2,538,844
745 Tennessee Housing Development Agency, Homeownership Program 1/09 at 101.00 AA 746,825
Bonds, Series 1998-2, 5.350%, 7/01/23 (Alternative Minimum Tax)
760 Tennessee Housing Development Agency, Homeownership Program 7/11 at 100.00 AA 761,262
Bonds, Series 2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,270 Total Tennessee 11,032,933
------------------------------------------------------------------------------------------------------------------------------------
-----
77
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas - 17.4% (11.2% of Total Investments)
$ 5,445 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA $ 4,681,545
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
1,125 Brushy Creek Municipal Utility District, Williamson County, 6/09 at 100.00 Aaa 1,132,571
Texas, Combination Unlimited Tax and Revenue Refunding Bonds,
Series 2001, 5.125%, 6/01/26 - FSA Insured
Collins and Denton Counties, Frisco, Texas, General Obligation
Bonds, Series 2001:
1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AA- 1,954,541
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AA- 2,041,692
3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,769,843
Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 -
FGIC Insured (Alternative Minimum Tax)
5,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional 9/14 at 100.00 N/R 5,079,650
Health System, Series 2004A, 7.000%, 9/01/25
4,040 Harris County, Texas, Tax and Revenue Certificates of Obligation, 8/11 at 100.00 AAA 4,102,135
Series 2001, 5.000%, 8/15/27
6,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 6,773,700
Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - MBIA Insured
(ETM)
7,000 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/08 at 101.00 A+ 7,046,830
Series 1998B, 5.250%, 7/01/14 - FGIC Insured (Alternative Minimum
Tax)
Houston, Texas, Subordinate Lien Airport System Revenue Refunding
Bonds, Series 2001A:
2,525 5.500%, 7/01/13 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 A+ 2,605,497
2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 A+ 2,985,236
4,735 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 4,194,026
General Obligation Bonds, Series 2007, Residuals 07-1001,
8.867%, 8/01/43 (IF)
Jefferson County Health Facilities Development Corporation,
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of
Southeast Texas, Series 2001:
8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 AAA 8,663,285
8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 AAA 8,688,105
10,700 Laredo Independent School District, Webb County, Texas, General 8/11 at 100.00 AAA 10,895,168
Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25
2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 2,341,825
Revenue Refunding Bonds, Houston Light and Power Company,
Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative
Minimum Tax)
3,045 Port of Houston Authority, Harris County, Texas, General 10/11 at 100.00 AA+ 3,084,646
Obligation Port Improvement Bonds, Series 2001B, 5.500%,
10/01/17 - FGIC Insured (Alternative Minimum Tax)
7,300 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 7,191,595
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%, 2/15/36
10,485 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 10,753,521
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/37 8/15 at 31.98 AAA 1,776,268
9,110 0.000%, 8/15/40 8/15 at 27.11 AAA 1,480,375
7,110 0.000%, 8/15/44 8/15 at 21.88 AAA 913,422
------------------------------------------------------------------------------------------------------------------------------------
122,900 Total Texas 102,155,476
------------------------------------------------------------------------------------------------------------------------------------
-----
78
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.7% (0.4% of Total Investments)
Utah Housing Corporation, Single Family Mortgage Bonds, Series
2001E:
$ 1,315 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- $ 1,355,607
315 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 325,042
Utah Housing Corporation, Single Family Mortgage Bonds, Series
2001F-1:
1,765 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 1,794,476
420 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 428,438
------------------------------------------------------------------------------------------------------------------------------------
3,815 Total Utah 3,903,563
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.1% (0.7% of Total Investments)
1,000 Chesterfield County Health Center Commission, Virginia, Mortgage 12/15 at 100.00 N/R 884,610
Revenue Bonds, Lucy Corr Village, Series 2005, 5.375%, 12/01/28
7,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 77.58 AAA 5,399,870
Bonds, Route 895 Connector Toll Road, Series 1998B, 0.000%,
8/15/13 (Pre-refunded 8/15/08)
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Virginia 6,284,480
------------------------------------------------------------------------------------------------------------------------------------
Washington - 15.6% (10.0% of Total Investments)
Bellingham Housing Authority, Washington, Housing Revenue Bonds,
Varsity Village Project, Series 2001A:
1,000 5.500%, 12/01/27 - MBIA Insured 12/11 at 100.00 Aaa 1,047,910
2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,084,320
12,955 Port of Seattle, Washington, Passenger Facility Charge Revenue 12/08 at 101.00 AAA 13,113,958
Bonds, Series 1998B, 5.300%, 12/01/16 - AMBAC Insured
(Alternative Minimum Tax)
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535 5.625%, 4/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 Aa2 2,570,617
16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum Tax) 10/08 at 100.00 Aa2 15,491,040
2,090 Public Utility District 1, Benton County, Washington, Electric 11/11 at 100.00 AAA 2,263,742
Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15 - FSA
Insured
5,680 Seattle, Washington, Municipal Light and Power Revenue Refunding 3/11 at 100.00 AAA 5,961,160
and Improvement Bonds, Series 2001, 5.500%, 3/01/18 - FSA
Insured
4,530 Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, 12/11 at 100.00 AAA 4,869,977
Series 2001, 5.250%, 12/01/21 (Pre-refunded 12/01/11) - AMBAC
Insured
3,720 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 Aaa 4,037,167
Children's Hospital and Regional Medical Center, Series 2001,
5.375%, 10/01/18 (Pre-refunded 10/01/11) - AMBAC Insured
Washington State Healthcare Facilities Authority, Revenue Bonds,
Good Samaritan Hospital, Series 2001:
5,480 5.500%, 10/01/21 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 AA(4) 6,019,342
25,435 5.625%, 10/01/31 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 AA(4) 28,041,322
Washington State Healthcare Facilities Authority, Revenue Bonds,
Group Health Cooperative of Puget Sound, Series 2001:
3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 AAA 3,152,726
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,047,166
------------------------------------------------------------------------------------------------------------------------------------
87,345 Total Washington 91,700,447
------------------------------------------------------------------------------------------------------------------------------------
-----
79
-----
NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 4.5% (2.9% 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 Baa3(4) $ 4,019,851
1,850 5.000%, 1/01/21 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 Baa3(4) 1,983,237
12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds, 12/08 at 102.00 Aaa 12,597,655
Dairyland Power Cooperative, Series 1997B, 5.550%, 2/01/15 -
AMBAC Insured
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ 852,090
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2007, 5.000%, 9/01/33
350 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 359,034
Bonds, Froedtert and Community Health Obligated Group, Series
2001, 5.375%, 10/01/30
3,650 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA-(4) 3,994,451
Bonds, Froedtert and Community Health Obligated Group, Series
2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11)
2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ 2,557,450
Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25
50 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 42,334
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
25,355 Total Wisconsin 26,406,102
------------------------------------------------------------------------------------------------------------------------------------
$ 948,680 Total Long-Term Municipal Bonds (cost $899,612,942) 910,034,481
============------------------------------------------------------------------------------------------------------------------------
Shares Description (1) Value
------------------------------------------------------------------------------------------------------------------------------------
Investment Companies - 0.3% (0.2% of Total Investments)
28,699 BlackRock MuniHoldings Fund Inc. $ 423,884
26,880 Dreyfus Strategic Municipal Fund 235,738
27,920 PIMCO Municipal Income Fund II 392,276
42,020 Van Kampen Investment Grade Municipal Trust 590,801
19,260 Van Kampen Municipal Trust 284,663
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $1,835,904) 1,927,362
---------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments (cost $901,448,846) - 155.1% 911,961,843
---------------------------------------------------------------------------------------------------------------------
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.7% (0.4% of Total Investments)
$ 3,925 Municipal Electric Authority of Georgia, General Resolution
Projects Subordinated Bonds, Series 2000B, Variable Rate Demand
Obligations, 2.560%, 1/01/20 - MBIA Insured (5) A-1+ $ 3,925,000
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,925,000) 3,925,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $905,373,846) - 155.8% 915,886,843
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.3)% (36,896,650)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 20,823,747
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.1)% (6) (312,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 587,813,940
=====================================================================================================================
-----
80
-----
Forward Swaps outstanding at April 30, 2008:
Fund Fixed Rate Unrealized
Notional Pay/Receive Floating Rate Fixed Rate Payment Effective Termination Appreciation
Counterparty Amount Floating Rate Index (Annualized) Frequency Date (7) Date (Depreciation)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $21,500,000 Pay SIFM 4.383% Quarterly 8/06/08 8/06/37 $2,067,687
UBS 15,000,000 Pay 3-Month USD-LIBOR 5.718 Semi-Annually 8/06/08 8/06/28 1,803,697
------------------------------------------------------------------------------------------------------------------------------------
$3,871,384
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).
SIFM-Security Industry and Financial Markets Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA).
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, FGIC, MBIA and XLCA as of April 30, 2008. Please see
the Portfolio Managers' Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.1)%.
(7) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
81
-----
| Statement of
| ASSETS & LIABILITIES
April 30, 2008 (Unaudited)
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost
$1,329,591,698,
$1,005,444,418,
$1,027,440,585,
$867,869,922, $669,154,065
and $905,373,846,
respectively) $ 1,373,594,153 $ 1,027,712,944 $ 1,052,593,656 $ 885,519,954 $ 700,482,217 $ 915,886,843
Cash 2,712,521 229,721 -- 4,146,187 1,431,511 5,346,624
Unrealized appreciation on
forward swaps -- -- -- -- -- 3,871,384
Receivables:
Dividends and interest 20,590,181 17,192,419 15,809,825 13,414,745 11,799,516 15,404,140
Investments sold 1,265,000 4,141,550 -- 395,000 540,000 244,320
Other assets 142,261 89,733 91,366 79,814 44,917 71,444
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 1,398,304,116 1,049,366,367 1,068,494,847 903,555,700 714,298,161 940,824,755
-----------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- 373,164 -- -- --
Floating rate obligations 30,750,000 60,124,983 37,495,000 42,875,000 47,171,650 36,896,650
Payable for investments
purchased 3,324,861 1,957,500 -- 1,957,500 911,574 982,104
Accrued expenses:
Management fees 672,396 491,613 512,676 358,096 253,057 302,880
Other 341,935 246,137 244,649 208,652 139,847 191,804
Common share dividends payable 2,912,191 2,301,696 2,337,540 2,372,856 2,045,665 2,475,612
Preferred share dividends
payable 173,180 129,148 113,108 86,204 43,817 161,765
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 38,174,563 65,251,077 41,076,137 47,858,308 50,565,610 41,010,815
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation
value 479,000,000 358,000,000 380,000,000 295,000,000 222,000,000 312,000,000
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 881,129,553 $ 626,115,290 $ 647,418,710 $ 560,697,392 $ 441,732,551 $ 587,813,940
===================================================================================================================================
Common shares outstanding 59,914,073 43,214,524 45,557,788 39,287,298 29,406,279 40,378,174
===================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common shares,
divided by Common shares
outstanding) $ 14.71 $ 14.49 $ 14.21 $ 14.27 $ 15.02 $ 14.56
===================================================================================================================================
Net assets applicable to Common shares consist of:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 599,141 $ 432,145 $ 455,578 $ 392,873 $ 294,063 $ 403,782
Paid-in surplus 836,422,903 604,052,660 635,757,048 558,458,542 418,172,917 573,905,413
Undistributed (Over-distribution
of) net investment income 409,037 910,696 (907,993) 173,660 (64,728) (736,623)
Accumulated net realized gain
(loss) from investments and
derivative transactions (303,983) (1,548,737) (13,038,994) (15,977,715) (7,997,853) (143,013)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 44,002,455 22,268,526 25,153,071 17,650,032 31,328,152 14,384,381
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 881,129,553 $ 626,115,290 $ 647,418,710 $ 560,697,392 $ 441,732,551 $ 587,813,940
===================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
-----
82
-----
| Statement of
| OPERATIONS
Six Months Ended April 30, 2008 (Unaudited)
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
-----------------------------------------------------------------------------------------------------------------------------------
Investment Income $ 35,858,282 $ 27,753,789 $ 27,866,072 $ 24,046,823 $ 18,839,529 $ 24,502,232
-----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 4,120,309 3,016,706 3,145,430 2,627,960 2,050,385 2,758,698
Preferred shares - auction fees 595,479 445,056 472,405 366,735 275,983 387,869
Preferred shares - dividend
disbursing agent fees 24,838 24,802 19,838 14,890 14,877 14,918
Shareholders' servicing agent
fees and expenses 67,512 41,856 44,088 5,948 2,486 3,261
Interest expense on floating
rate obligations 109,789 690,460 533,906 461,845 465,856 479,283
Custodian's fees and expenses 145,609 62,639 99,954 83,801 68,738 97,041
Directors'/Trustees' fees and
expenses 12,905 9,515 9,323 7,868 6,221 8,535
Professional fees 34,617 27,121 27,905 29,786 19,282 24,360
Shareholders' reports - printing
and mailing expenses 66,901 52,133 52,784 41,236 30,601 41,694
Stock exchange listing fees 10,383 7,656 7,914 6,830 1,792 2,462
Investor relations expense 84,710 61,910 65,008 52,791 40,216 54,076
Other expenses 28,860 22,959 25,846 15,436 13,354 16,059
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 5,301,912 4,462,813 4,504,401 3,715,126 2,989,791 3,888,256
Custodian fee credit (50,613) (59,319) (30,078) (60,635) (15,873) (48,323)
Expense reimbursement -- -- -- (430,563) (640,650) (904,863)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,251,299 4,403,494 4,474,323 3,223,928 2,333,268 2,935,070
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 30,606,983 23,350,295 23,391,749 20,822,895 16,506,261 21,567,162
-----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from
investments (198,814) (1,500,609) 137,347 (1,532,932) (1,217,493) 215,587
Change in net unrealized
appreciation (depreciation)
of:
Investments (32,051,804) (28,416,372) (28,354,695) (23,646,296) (13,959,698) (22,207,100)
Forward swaps -- -- -- -- -- 2,399,265
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) (32,250,618) (29,916,981) (28,217,348) (25,179,228) (15,177,191) (19,592,248)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to Preferred
Shareholders
From net investment income (8,622,703) (6,138,283) (6,795,011) (5,343,935) (3,857,565) (5,563,964)
From accumulated net realized
gains -- (363,253) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to
Preferred shareholders (8,622,703) (6,501,536) (6,795,011) (5,343,935) (3,857,565) (5,563,964)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations $ (10,266,338) $ (13,068,222) $ (11,620,610) $ (9,700,268) $ (2,528,495) $ (3,589,050)
===================================================================================================================================
See accompanying notes to financial statements.
-----
83
-----
| Statement of
| CHANGES in NET ASSETS (Unaudited)
Performance Plus (NPP) Municipal Advantage (NMA)
------------------------------ ------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07
-----------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 30,606,983 $ 59,081,814 $ 23,350,295 $ 46,092,114
Net realized gain (loss) from:
Investments (198,814) (114,084) (1,500,609) 1,405,723
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (32,051,804) (27,296,563) (28,416,372) (28,042,883)
Forward swaps -- -- -- --
Futures -- -- -- --
Distributions to Preferred shareholders:
From net investment income (8,622,703) (16,373,121) (6,138,283) (12,659,658)
From accumulated net realized gains -- (858,202) (363,253) --
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations (10,266,338) 14,439,844 (13,068,222) 6,795,296
-----------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (20,670,365) (44,830,422) (16,594,376) (36,025,128)
From accumulated net realized gains -- (2,765,395) (1,028,506) --
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (20,670,365) (47,595,817) (17,622,882) (36,025,128)
-----------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- -- -- 2,361,680
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from capital share
transactions -- -- -- 2,361,680
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (30,936,703) (33,155,973) (30,691,104) (26,868,152)
Net assets applicable to Common shares at the
beginning of period 912,066,256 945,222,229 656,806,394 683,674,546
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 881,129,553 $ 912,066,256 $ 626,115,290 $ 656,806,394
=================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 409,037 $ (904,878) $ 910,696 $ 293,060
=================================================================================================================
Market Opportunity (NMO)
------------------------------
Six Months Year
Ended Ended
4/30/08 10/31/07
---------------------------------------------------------------------------------
Operations
Net investment income $ 23,391,749 $ 47,185,988
Net realized gain (loss) from:
Investments 137,347 (2,764,433)
Forward swaps -- --
Futures -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (28,354,695) (22,450,181)
Forward swaps -- --
Futures -- --
Distributions to Preferred shareholders:
From net investment income (6,795,011) (13,663,433)
From accumulated net realized gains -- --
---------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations (11,620,610) 8,307,941
---------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (16,537,481) (34,547,696)
From accumulated net realized gains -- --
---------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (16,537,481) (34,547,696)
---------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- 257,295
---------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from capital share
transactions -- 257,295
---------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (28,158,091) (25,982,460)
Net assets applicable to Common shares at the
beginning of period 675,576,801 701,559,261
---------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 647,418,710 $ 675,576,801
=================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ (907,993) $ (967,250)
=================================================================================
See accompanying notes to financial statements.
-----
84
-----
Dividend Advantage (NAD) Dividend Advantage 2 (NXZ)
------------------------------ ------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07
-----------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 20,822,895 $ 40,737,006 $ 16,506,261 $ 33,194,589
Net realized gain (loss) from:
Investments (1,532,932) 2,375,892 (1,217,493) (1,406,045)
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (23,646,296) (25,931,805) (13,959,698) (11,366,291)
Forward swaps -- -- -- --
Futures -- -- -- --
Distributions to Preferred shareholders:
From net investment income (5,343,935) (10,593,575) (3,857,565) (7,987,669)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations (9,700,268) 6,587,518 (2,528,495) 12,434,584
-----------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (15,098,111) (31,716,407) (12,877,438) (26,454,214)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (15,098,111) (31,716,407) (12,877,438) (26,454,214)
-----------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- 308,799 146,926 821,897
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from capital share
transactions -- 308,799 146,926 821,897
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (24,798,379) (24,820,090) (15,259,007) (13,197,733)
Net assets applicable to Common shares at the
beginning of period 585,495,771 610,315,861 456,991,558 470,189,291
-----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 560,697,392 $ 585,495,771 $ 441,732,551 $ 456,991,558
=================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 173,660 $ (207,189) $ (64,728) $ 164,014
=================================================================================================================
Dividend Advantage 3 (NZF)
------------------------------
Six Months Year
Ended Ended
4/30/08 10/31/07
---------------------------------------------------------------------------------
Operations
Net investment income $ 21,567,162 $ 43,162,296
Net realized gain (loss) from:
Investments 215,587 172,182
Forward swaps -- (455,000)
Futures -- (418,916)
Change in net unrealized appreciation
(depreciation) of:
Investments (22,207,100) (18,402,081)
Forward swaps 2,399,265 1,331,159
Futures -- (129,711)
Distributions to Preferred shareholders:
From net investment income (5,563,964) (11,080,897)
From accumulated net realized gains -- (226,888)
---------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations (3,589,050) 13,952,144
---------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (15,505,219) (33,803,641)
From accumulated net realized gains -- (798,769)
---------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (15,505,219) (34,602,410)
---------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- 722,964
---------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from capital share
transactions -- 722,964
---------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (19,094,269) (19,927,302)
Net assets applicable to Common shares at the
beginning of period 606,908,209 626,835,511
---------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 587,813,940 $ 606,908,209
=================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ (736,623) $ (1,234,602)
=================================================================================
See accompanying notes to financial statements.
-----
85
-----
| Notes to
| FINANCIAL STATEMENTS (Unaudited)
1. General Information and Significant Accounting Policies
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) (collectively, the "Funds"). Performance Plus (NPP), Municipal Advantage
(NMA), Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the
New York Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage
3 (NZF) are traded on the American Stock Exchange. The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. Futures
contracts are valued using the closing settlement price, or, in the absence of
such a price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for a municipal bond, forward swap or futures contract,
each Fund may use market quotes provided by major broker/dealers in such
investments. If it is determined that the market price for an investment or
derivative instrument is unavailable or inappropriate, the Board of
Directors/Trustees of the Funds, or its designee, may establish fair value in
accordance with procedures established in good faith by the Board of
Directors/Trustees. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2008,
Performance Plus (NPP), Municipal Advantage (NMA) and Dividend Advantage (NAD)
had outstanding when-issued/delayed-delivery purchase commitments of $1,957,500,
$1,957,500 and $1,957,500, respectively. There were no such outstanding purchase
commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Interest income also includes paydown gains and losses, if any. Dividend income,
if any, is recorded on the ex-dividend date.
-----
86
-----
Federal 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 which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Effective April 30, 2008, the Funds adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax benefit or expense in the
current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. 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). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended April 30, 2008.
The Funds are 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 tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
--------------------------------------------------------------------------------------------------
Number of shares:
Series M 4,000 3,000 4,000 4,000 3,000 --
Series T 4,000 3,000 4,000 4,000 3,000 --
Series W 4,000 3,000 3,200 -- -- 4,160
Series TH 3,160 2,320 -- 3,800 -- 4,160
Series F 4,000 3,000 4,000 -- 2,880 4,160
--------------------------------------------------------------------------------------------------
Total 19,160 14,320 15,200 11,800 8,880 12,480
==================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
-----
87
-----
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
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"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") 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, as well as any shortfalls in interest
cash flows. 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 an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended April 30, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
-----
88
-----
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2008, 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 $ 7,627,967 $ 47,143,556 $36,728,736 $ 32,293,214 $32,730,909 $33,069,948
Average annual interest rate and fees 2.89% 2.95% 2.92% 2.88% 2.86% 2.91%
============================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. Dividend Advantage 3 (NZF)
was the only Fund to invest in forward interest rate swap transactions during
the six months ended April 30, 2008.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized in
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin, when
applicable. None of the Funds invested in futures contracts during the six
months ended April 30, 2008.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
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. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
-----
89
-----
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
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 Director/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. Fund Shares
Transactions in Common shares were as follows:
Municipal Market
Performance Plus (NPP) Advantage (NMA) Opportunity (NMO)
------------------------ ----------------------- ----------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07
-------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- 148,621 -- 16,916
=========================================================================================================================
Dividend Dividend Dividend
Advantage (NAD) Advantage 2 (NXZ) Advantage 3 (NZF)
------------------------ ----------------------- ----------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07
-------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 19,807 9,780 50,467 -- 46,333
=========================================================================================================================
-----
90
-----
3. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2008, were as
follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Purchases $ 60,703,301 $ 66,416,819 $ 23,079,293 $ 50,710,597 $ 20,865,529 $ 13,530,271
Sales and maturities 69,531,547 109,338,563 48,148,490 53,333,737 37,455,870 20,976,516
====================================================================================================================================
4. Income Tax Information
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At April 30, 2008, the cost of investments was as follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $1,297,859,623 $ 943,701,677 $ 989,537,285 $ 823,532,224 $ 623,215,313 $ 868,040,295
====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2008, were as follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 62,287,675 $ 41,855,857 $ 49,151,732 $ 39,240,425 $ 41,315,482 $ 29,550,296
Depreciation (17,302,870) (17,967,772) (23,590,216) (20,128,194) (11,218,640) (18,596,556)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 44,984,805 $ 23,888,085 $ 25,561,516 $ 19,112,231 $ 30,096,842 $ 10,953,740
====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2007, the Funds' last tax year
end, were as follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net
tax-exempt income * $ 1,782,388 $ 1,392,822 $ 1,532,785 $ 967,015 $ 1,573,952 $ 1,124,939
Undistributed net ordinary
income ** 17,323 -- -- 171,088 381 4,477
Undistributed net long-term
capital gains -- 1,389,990 -- -- -- --
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2007, paid on November 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2007, was designated for purposes of the dividends paid deduction as
follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $ 61,544,192 $ 49,015,900 $ 48,416,601 $ 42,441,771 $ 34,569,733 $ 45,208,503
Distributions from net ordinary
income ** 58,535 -- 77,487 121,024 -- --
Distributions from net
long-term capital gains 3,618,054 -- -- -- -- 1,024,327
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
-----
91
-----
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
At October 31, 2007, the Funds' last tax year end, the 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 Dividend Dividend Dividend
Plus Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2008 $ -- $ -- $ 9,745,720 $ -- $ --
October 31, 2009 -- -- -- -- --
October 31, 2010 -- -- -- -- --
October 31, 2011 -- 7,158,110 4,594,300 -- --
October 31, 2012 -- 973,824 -- 246,691 --
October 31, 2013 -- -- 104,763 1,591,323 --
October 31, 2014 -- 3,141,529 -- 1,882,135 --
October 31, 2015 105,897 1,902,878 -- 961,027 359,272
---------------------------------------------------------------------------------------------------------------------------
Total $ 105,897 $13,176,341 $14,444,783 $ 4,681,176 $ 359,272
===========================================================================================================================
5. Management Fees and Other Transactions with Affiliates
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual Fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
Performance Plus (NPP)
Municipal Advantage (NMA)
Market Opportunity (NMO)
Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate
---------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
===========================================================================================================================
-----
92
-----
Dividend Advantage (NAD)
Dividend Advantage 2 (NXZ)
Dividend Advantage 3 (NZF)
Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate
---------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
===========================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2008, the complex-level fee rate was .1855%.
The complex-level fee schedule is as follows:
Complex-Level Asset Breakpoint Level (1) 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
===========================================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of Dividend Advantage's (NAD) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
Year Ending Year Ending
July 31, July 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
-----
93
-----
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion
of its fees and expenses beyond July 31, 2009.
For the first ten years of Dividend Advantage 2's (NXZ) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
Year Ending Year Ending
March 31, March 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations
The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any
portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Dividend Advantage 3's (NZF) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
Year Ending Year Ending
September 30, September 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any
portion of its fees and expenses beyond September 30, 2011.
-----
94
-----
6. New Accounting Pronouncements
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of April 30, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
7. Subsequent Events
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 2, 2008, to shareholders of record on
May 15, 2008, as follows:
Performance Municipal Market Dividend Dividend Dividend
Plus Advantage Opportunity Advantage Advantage 2 Advantage 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0575 $ .0640 $ .0605 $ .0635 $ .0730 $ .0640
=====================================================================================================================
Auction Rate Preferred Shares (ARPS)
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as inverse floating rate securities or
inverse floaters, to refinance a portion of the funds' outstanding ARPS, whose
auctions have been failing for several months, including an initial phase of
approximately $1 billion in forty-one funds. Of this amount, Nuveen expects that
approximately $560 million in ARPS redemption notices will be issued shortly for
thirteen funds, including Performance Plus (NPP), Dividend Advantage (NAD) and
Dividend Advantage 3 (NZF).
-----
95
-----
| Financial
| HIGHLIGHTS(Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
--------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
=====================================================================================================
Performance Plus (NPP)
-----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 15.22 $ .51 $(.53) $ (.14) $ -- $ (.16)
2007 15.78 .99 (.47) (.27) (.01) .24
2006 15.51 1.00 .38 (.25) -- 1.13
2005 15.87 1.02 (.26) (.16) -- .60
2004 15.45 1.04 .42 (.07) -- 1.39
2003 15.38 1.07 .05 (.07) -- 1.05
Municipal Advantage (NMA)
-----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 15.20 .54 (.70) (.14) (.01) (.31)
2007 15.88 1.07 (.63) (.29) -- .15
2006 15.70 1.08 .27 (.26) -- 1.09
2005 16.02 1.09 (.24) (.16) -- .69
2004 15.62 1.11 .41 (.08) -- 1.44
2003 15.41 1.13 .25 (.07) (.01) 1.30
=====================================================================================================
Less Distributions
------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
===========================================================================================
Performance Plus (NPP)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ (.35) $ -- $ (.35) $ -- $ 14.71 $ 13.34
2007 (.75) (.05) (.80) -- 15.22 13.59
2006 (.84) (.02) (.86) -- 15.78 15.09
2005 (.94) (.02) (.96) -- 15.51 14.43
2004 (.97) -- (.97) -- 15.87 14.95
2003 (.95) (.03) (.98) -- 15.45 14.64
Municipal Advantage (NMA)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.38) (.02) (.40) -- 14.49 13.55
2007 (.83) -- (.83) -- 15.20 13.95
2006 (.90) (.01) (.91) -- 15.88 15.85
2005 (1.00) (.01) (1.01) -- 15.70 15.19
2004 (1.03) (.01) (1.04) -- 16.02 15.70
2003 (1.02) (.07) (1.09) -- 15.62 15.44
===========================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement/Refund
------------------- ------------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-----------------------------------------------------------------------------------------------------------------------------------
Performance Plus (NPP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) .71% (1.07)% $ 881,130 1.19%*** 1.16%*** 6.85%***
2007 (4.97) 1.53 912,066 1.16 1.14 6.38
2006 10.78 7.50 945,222 1.15 1.15 6.44
2005 3.02 3.83 929,544 1.15 1.15 6.45
2004 9.10 9.30 950,993 1.17 1.17 6.69
2003 9.58 6.97 925,525 1.18 1.18 6.89
Municipal Advantage (NMA)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) .04 (1.98) 626,115 1.41*** 1.19*** 7.33***
2007 (7.08) 1.06 656,806 1.40 1.17 6.87
2006 10.68 7.16 683,675 1.18 1.18 6.92
2005 3.29 4.42 675,678 1.17 1.17 6.81
2004 8.82 9.57 689,190 1.19 1.19 7.00
2003 13.17 8.71 671,147 1.21 1.21 7.27
===================================================================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement/Refund**
-----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
-----------------------------------------------------------------------------------------
Performance Plus (NPP)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.18%*** 1.15%*** 6.86%** * 4%
2007 1.14 1.13 6.39 6
2006 1.14 1.14 6.45 9
2005 1.14 1.14 6.46 6
2004 1.17 1.17 6.70 11
2003 1.18 1.18 6.90 10
Municipal Advantage (NMA)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.39*** 1.17*** 7.35*** 6
2007 1.38 1.15 6.89 10
2006 1.17 1.17 6.93 11
2005 1.16 1.16 6.82 8
2004 1.18 1.18 7.00 4
2003 1.20 1.20 7.27 7
=========================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
=================================================================================================
Performance Plus (NPP)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 479,000 $ 25,000 $ 70,988 $ 30,750 $ 45,232
2007 479,000 25,000 72,603 6,665 209,712
2006 479,000 25,000 74,333 -- --
2005 479,000 25,000 73,515 -- --
2004 479,000 25,000 74,634 -- --
2003 479,000 25,000 73,305 -- --
Municipal Advantage (NMA)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 358,000 25,000 68,723 60,125 17,368
2007 358,000 25,000 70,866 54,048 19,776
2006 358,000 25,000 72,743 -- --
2005 358,000 25,000 72,184 -- --
2004 358,000 25,000 73,128 -- --
2003 358,000 25,000 71,868 -- --
=================================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. 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 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.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
----------------
96-97 spread
----------------
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-----------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
--------------------------------------------------------------------------------------------------------------
Market Opportunity (NMO)
--------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 14.83 $ .51 $ (.62) $ (.15) $ -- $ (.26)
2007 15.41 1.04 (.56) (.30) -- .18
2006 15.14 1.02 .34 (.26) -- 1.10
2005 15.48 1.03 (.29) (.16) -- .58
2004 15.11 1.03 .37 (.08) -- 1.32
2003 14.60 1.03 .50 (.08) -- 1.45
Dividend Advantage (NAD)
--------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 14.90 .53 (.64) (.14) -- (.25)
2007 15.54 1.04 (.60) (.27) -- .17
2006 15.28 1.04 .32 (.24) -- 1.12
2005 15.62 1.06 (.25) (.15) -- .66
2004 15.17 1.09 .46 (.07) -- 1.48
2003 14.94 1.10 .19 (.07) -- 1.22
==============================================================================================================
Less Distributions
-------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
------------------------------------------------------------------------------------------------------
Market Opportunity (NMO)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ (.36) $ -- $ (.36) $ -- $ 14.21 $ 13.15
2007 (.76) -- (.76) -- 14.83 13.53
2006 (.83) -- (.83) -- 15.41 15.00
2005 (.92) -- (.92) -- 15.14 14.19
2004 (.95) -- (.95) -- 15.48 14.44
2003 (.94) -- (.94) -- 15.11 14.29
Dividend Advantage (NAD)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.38) -- (.38) -- 14.27 13.39
2007 (.81) -- (.81) -- 14.90 13.63
2006 (.86) -- (.86) -- 15.54 15.30
2005 (1.00) -- (1.00) -- 15.28 14.58
2004 (1.03) -- (1.03) -- 15.62 15.31
2003 (.99) -- (.99) -- 15.17 15.12
======================================================================================================
Total Returns
--------------------
Based
on
Based Common
on Share Net
Market Asset
Value* Value*
-----------------------------------------------------------------------------------------------
Market Opportunity (NMO)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.15)% (1.73)%
2007 (5.00) 1.20
2006 11.92 7.49
2005 4.70 3.78
2004 7.97 9.00
2003 10.62 10.24
Dividend Advantage (NAD)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.11 (1.63)
2007 (5.96) 1.10
2006 11.19 7.59
2005 1.77 4.27
2004 8.37 10.06
2003 11.41 8.41
===============================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund**
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------------------------------------
Market Opportunity (NMO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 647,419 1.37%*** 1.21%*** 7.11%*** 1.36%*** 1.20%*** 7.12%*** 2%
2007 675,577 1.38 1.19 6.87 1.36 1.17 6.88 5
2006 701,559 1.19 1.19 6.73 1.18 1.18 6.74 14
2005 689,682 1.19 1.19 6.66 1.18 1.18 6.67 7
2004 704,760 1.21 1.21 6.75 1.19 1.19 6.77 4
2003 687,955 1.25 1.25 6.94 1.25 1.25 6.94 9
Dividend Advantage (NAD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 560,697 1.31*** 1.15*** 7.16*** 1.14*** .97*** 7.34*** 6
2007 585,496 1.24 1.13 6.60 1.01 .90 6.83 11
2006 610,316 1.12 1.12 6.54 .83 .83 6.83 8
2005 599,887 1.17 1.17 6.48 .80 .80 6.84 11
2004 613,328 1.14 1.14 6.69 .70 .70 7.12 7
2003 595,266 1.35 1.35 6.78 .89 .89 7.24 3
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
===================================================================================================
Market Opportunity (NMO)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 380,000 $ 25,000 $ 67,593 $ 37,495 $ 28,401
2007 380,000 25,000 69,446 36,660 29,794
2006 380,000 25,000 71,155 -- --
2005 380,000 25,000 70,374 -- --
2004 380,000 25,000 71,366 -- --
2003 380,000 25,000 70,260 -- --
Dividend Advantage (NAD)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 295,000 25,000 72,517 42,875 20,958
2007 295,000 25,000 74,618 33,200 27,521
2006 295,000 25,000 76,722 -- --
2005 295,000 25,000 75,838 -- --
2004 295,000 25,000 76,977 -- --
2003 295,000 25,000 75,446 -- --
===================================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. 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 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.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
----------------
98-99 spread
----------------
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
------------------------------------------------------------------------------------------------------------
Dividend Advantage 2 (NXZ)
------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $15.55 $ .56 $(.52) $(.13) $ -- $ (.09)
2007 16.02 1.13 (.43) (.27) -- .43
2006 15.80 1.12 .32 (.24) -- 1.20
2005 15.63 1.13 .22 (.15) -- 1.20
2004 15.13 1.12 .51 (.07) -- 1.56
2003 14.89 1.16 .17 (.07) -- 1.26
Dividend Advantage 3 (NZF)
------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 15.03 .53 (.48) (.14) -- (.09)
2007 15.54 1.07 (.44) (.27) (.01) .35
2006 15.32 1.07 .29 (.24) -- 1.12
2005 15.36 1.06 .01 (.15) -- .92
2004 14.74 1.06 .59 (.07) -- 1.58
2003 14.56 1.07 .10 (.07) -- 1.10
============================================================================================================
Less Distributions
--------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
--------------------------------------------------------------------------------------------------
Dividend Advantage 2 (NXZ)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ (.44) $ -- $ (.44) $ -- $15.02 $15.00
2007 (.90) -- (.90) -- 15.55 15.48
2006 (.98) -- (.98) -- 16.02 16.50
2005 (1.03) -- (1.03) -- 15.80 15.64
2004 (1.03) (.03) (1.06) -- 15.63 15.38
2003 (1.01) (.01) (1.02) -- 15.13 14.85
Dividend Advantage 3 (NZF)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.38) -- (.38) -- 14.56 13.72
2007 (.84) (.02) (.86) -- 15.03 13.85
2006 (.90) -- (.90) -- 15.54 15.88
2005 (.96) -- (.96) -- 15.32 14.41
2004 (.96) -- (.96) -- 15.36 14.50
2003 (.93) -- (.93) .01 14.74 13.80
==================================================================================================
Total Returns
-------------------
Based
on
Based Common
on Share Net
Market Asset
Value* Value*
-----------------------------------------------------------------------------------------------
Dividend Advantage 2 (NXZ)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.25)% (.58)%
2007 (.78) 2.76
2006 11.95 7.86
2005 8.58 7.83
2004 11.16 10.67
2003 14.39 8.67
Dividend Advantage 3 (NZF)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.87 (.56)
2007 (7.72) 2.31
2006 16.90 7.57
2005 6.11 6.09
2004 12.45 11.10
2003 9.04 7.82
===============================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund**
------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
-----------------------------------------------------------------------------------------------------------------------------------
Dividend Advantage 2 (NXZ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $441,733 1.34%*** 1.13%*** 7.09%*** 1.04%*** .84%*** 7.38%*** 3%
2007 456,992 1.25 1.11 6.83 .91 .77 7.18 5
2006 470,189 1.11 1.11 6.70 .70 .70 7.11 5
2005 462,862 1.12 1.12 6.66 .67 .67 7.12 2
2004 457,552 1.14 1.14 6.87 .69 .69 7.32 3
2003 443,101 1.17 1.17 7.20 .71 .71 7.66 11
Dividend Advantage 3 (NZF)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 587,814 1.31*** 1.15*** 6.93*** .99*** .83*** 7.25*** 1
2007 606,908 1.32 1.13 6.65 .93 .75 7.03 14
2006 626,836 1.13 1.13 6.51 .68 .68 6.96 9
2005 617,358 1.13 1.13 6.39 .68 .68 6.84 3
2004 619,118 1.15 1.15 6.64 .69 .69 7.10 3
2003 594,154 1.17 1.17 6.80 .71 .71 7.26 3
===================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
-----------------------------------------------------------------------------------------------
Dividend Advantage 2 (NXZ)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $222,000 $25,000 $74,745 $47,172 $15,071
2007 222,000 25,000 76,463 23,365 30,060
2006 222,000 25,000 77,949 -- --
2005 222,000 25,000 77,124 -- --
2004 222,000 25,000 76,526 -- --
2003 222,000 25,000 74,899 -- --
Dividend Advantage 3 (NZF)
-----------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 312,000 25,000 72,100 36,897 25,387
2007 312,000 25,000 73,630 30,345 31,282
2006 312,000 25,000 75,227 -- --
2005 312,000 25,000 74,468 -- --
2004 312,000 25,000 74,609 -- --
2003 312,000 25,000 72,608 -- --
===============================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. 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 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.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
----------------
100-101 spread
----------------
Reinvest Automatically
EASILY and CONVENIENTLY
--------------------------------------------------------------------------------
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
------
102
------
Flexible
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
Call today to start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
------
103
------
NOTES
--------------------------------------------------------------------------------
------
104
------
NOTES
--------------------------------------------------------------------------------
------
105
------
Glossary of
TERMS USED in this REPORT
--------------------------------------------------------------------------
o 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.
o 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.
o Average Effective Maturity: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o Inverse Floaters: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o 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.
o Market Yield (also known as Dividend Yield or Current Yield): An
investment's current annualized dividend divided by its current market
price.
o Net Asset Value (NAV): A Fund's common share NAV per share is calculated
by subtracting the liabilities of the Fund (including any preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of shares outstanding. Fund NAVs are
calculated at the end of each business day.
o 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.
o 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.
------
106
------
| Other Useful INFORMATION
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 twelve-month period ended June 30, 2007, 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 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 Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
--------------------------------------------------------------------------------
Board of Directors/Trustees
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock or
preferred in the future at such times and in such amounts as is deemed
advisable. No common or preferred shares were repurchased during the period
covered by this report. Any future repurchases will be reported to shareholders
in the next annual or semi-annual report.
--------------------------------------------------------------------------------
------
107
------
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Managing $153 billion in assets, as of March 31, 2008, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
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ESA-B-0408D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
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: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Dividend Advantage Municipal Fund 3
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
(Vice President and Secretary)
Date: July 9, 2008
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2008
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2008
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