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)
Jessica R. Droeger
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, 2004
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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.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
SEMIANNUAL REPORT April 30, 2004
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
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN
BE IMPORTANT BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO.
Dear
SHAREHOLDER
I am very pleased to report that for the period ended April 30, 2004, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
While tax-free income is always welcome, we know that many shareholders are
beginning to wonder whether interest rates will rise significantly, and whether
that possibility should cause them to adjust that portion of their investment
portfolios allocated to tax-free municipal bonds. We believe this is a question
you should consider carefully with the help of a trusted financial advisor. In
many cases, it may be more appropriate to focus on long-term goals and
objectives rather than shorter-term market movements, and this is where a
professional advisor may be able to help keep you focused on the larger
objectives of your investment program.
As you read through this report, please review the inside front cover and
consider receiving future Fund reports and other Fund information by e-mail and
the Internet. Not only will you be able to receive the information faster, but
this also may help lower your Fund's expenses. Sign up is quick and easy.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2004
1
Nuveen National Municipal Closed-End Exchange-Traded Funds (NPP, NMA, NMO, NAD,
NXZ, NZF)
Portfolio Manager's
COMMENTS
Portfolio manager Tom Spalding reviews the market environment, key investment
strategies, and the six-month performance of the Funds. With 27 years of
investment experience at Nuveen, Tom has managed NXZ since its inception in
2001, adding NPP, NMA, NMO, NAD, and NZF in 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 6-MONTH
REPORTING PERIOD ENDED APRIL 30, 2004?
During this reporting period, the greatest influences on the national economy
and the municipal market continued to be historically low interest rates,
growing evidence of economic improvement, and a generally modest rate of
inflation. Since its last credit easing in June 2003, the Federal Reserve has
maintained the fed funds rate at 1.0%, the lowest level since 1958. This
accommodative monetary policy helped to spur GDP (gross domestic product) growth
of 4.4% annualized in the first quarter of 2004, following a 3.1% rise in 2003.
Over the six-month reporting period, the year-over-year rate of inflation, as
measured by the core Consumer Price Index, averaged 1.3%.
This generally favorable environment helped many municipal bonds perform well
during most of the six-month period ended April 30, 2004. However, in early
April, a sharply improved jobs report, along with subsequent indications of
growing momentum in the U.S. economy, served as catalysts for increased
expectations of a Fed rate hike. This all contributed to heightened volatility
in the fixed-income markets. During April, the yield on the Bond Buyer 25
Revenue Bond index, a widely-followed municipal market index, rose almost 40
basis points. The rise in the index yield, and corresponding decline in bond
prices, effectively offset the yield declines and price gains of the previous
five months. As of April 30, 2004, the Bond Buyer 25 index was at approximately
the same level as it was at the beginning of the six-month reporting period.
In general, municipal supply remained strong over the past six months, although
the pace of issuance slowed. The first four months of 2004 saw $110 billion in
new municipal supply, down 9% from January-April 2003. Over the entire six-month
reporting period ended April 2004, the supply of new bonds decreased 13%
compared with the preceding six months.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING
THE SIX MONTHS ENDED APRIL 30, 2004?
With the market continuing to anticipate an increase in interest rates, our
major focus during this reporting period remained on careful management of the
Funds' durations1 as a way to mitigate some of the interest rate risk inherent
in each
1 Duration is a measure of a Fund's net asset value (NAV) volatility in
reaction to interest rate movements. Fund duration, also known as
leverage-adjusted duration, takes into account the leveraging process for a
Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund. References to duration
in this commentary are intended to indicate Fund duration unless otherwise
noted.
2
Fund's portfolio. Interest rate risk is the risk that the value of a Fund's
portfolio will decline if market interest rates rise (since bond prices move in
the opposite direction of interest rates). The longer the duration of a Fund's
portfolio, the greater the Fund's interest rate risk. Our use of such a duration
management strategy is designed to position the Funds to potentially produce
more consistent returns over time, as interest rates inevitably rise and fall.
This focus on duration management did not result in a great deal of buying or
selling within any of these Funds' portfolios over the six-month period. With
yields remaining low over most of this period, the market did not offer many
bonds that we thought would perform better than those we already owned in our
portfolios. While that situation began to change in April as yields rose, we did
not see a great number of opportunities to improve the Funds' holdings during
this reporting period. In general, turnover in these Funds was low over the six
months ended April 30, 2004.
In keeping with our duration management strategy and the relative steepness of
the municipal bond yield curve over this period, those bonds we did purchase for
all of these Funds tended to be in the long-intermediate part of the yield curve
(i.e., bonds that mature in 15 to 20 years). In many cases, bonds in this part
of the curve offered yields similar to those of longer-term bonds with less
inherent interest rate risk. Overall, we looked for bonds that would help us
keep the Funds' portfolios well diversified in terms of industry sector,
maturity, and geographic region. Based on the recent implementation of economic
reforms and cost-cutting measures in California, we believe this state has
demonstrated signs of progress, and we took advantage of selected opportunities
to add California bonds across all of these Funds.
HOW DID THE FUNDS PERFORM?
Individual results for the Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/04
(6-month returns cumulative, all others annualized)
6-MONTH 1-YEAR 5-YEAR 10-YEAR
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NPP 1.79% 3.45% 6.27% 6.83%
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NMA 2.64% 5.28% 6.77% 7.15%
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NMO 1.61% 5.56% 5.41% 6.47%
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NAD 2.07% 4.46% NA NA
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NXZ 3.15% 6.09% NA NA
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NZF 2.73% 4.59% NA NA
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Lehman Brothers Municipal
Bond Index2 1.19% 2.68% 5.44% 6.46%
---------------------------------------------------------------------
Lipper General (Leveraged)
Municipal Debt
Funds average3 2.21% 4.97% 5.65% 6.90%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
2 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.
3 The Lipper General (Leveraged) Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 6 months - 65 funds; 1 year - 64
funds; 5 years - 49 funds; and 10 years - 46 funds. Fund and Lipper returns
assume reinvestment of dividends.
3
For the six months ended April 30, 2004, the cumulative returns of all six of
the Funds in this report outperformed the return on the Lehman Brothers
Municipal Bond Index. NMA, NXZ and NZF also outperformed their Lipper peer group
average, while NPP, NMO and NAD did not.
The primary reason for all the Funds' outperformance of the Lehman Brothers
index over this period was the Funds' use of leverage. While leveraging can add
volatility to the Funds' net asset values (NAVs) and share prices, this strategy
also can provide opportunities for additional income and total return for common
shareholders during periods of low short-term interest rates, as was the case
during most of this six-month period.
In addition to leverage, the Funds benefited from their holdings of healthcare
bonds over this six-month period. Healthcare bonds generally performed well due
to improvements in cost containment and reimbursement practices which helped
their long-term outlook. In addition, their often higher coupons were in demand
during a period of generally low interest rates. Among the Funds, holdings of
healthcare bonds on April 30, 2004, ranged from 25% of NXZ's portfolio to 17% in
NMA and NZF, 15% in NAD, and 10% in both NPP and NMO.
NMA and NXZ also held approximately 1% of their assets (in terms of par value),
in bonds issued by the Michigan State Hospital Finance Authority for Detroit
Medical Center, the largest healthcare provider in southeast Michigan. As the
center's financial situation stabilized following implementation of cost-cutting
initiatives and improved operating efficiencies, the price of these bonds
rebounded, contributing to the favorable six-month returns of NMA and NXZ.
The six-month reporting period saw relatively strong performance from
lower-rated bonds. Among the lower-rated holdings making positive contributions
to these Funds' cumulative returns during this reporting period were tobacco
bonds backed by revenues from the 1998 master tobacco settlement agreement.
However, late in the reporting period Moody's downgraded all tobacco bonds that
were not enhanced or secured by an additional funding source. The other major
credit rating agencies--S&P and Fitch--did not change their ratings. In general,
we believed that the prices of tobacco bonds accurately reflected the risks
involved and that these bonds continued to represent good value.
Additional factors that impacted the Funds' performances over this semiannual
reporting period included:
4
o The advance refunding of several holdings in NPP and NAD, which enhanced
prices as well as quality and contributed to the Funds' returns.
o Modest weightings in both single family and multifamily housing bonds,
which lessened the impact of the poor performance of the housing sector, as
measured by the Lehman Brothers Municipal Bond Index, over this six-month
period.
o Generally low levels of call exposure, which benefited the Funds by
enabling us to avoid reinvestment of proceeds from called bonds in a low
interest rate environment. As of April 30, 2004, potential call exposure in
2004 and 2005 ranged from 19% in NPP to 7% in NAD and NMA, 6% in NMO, 3% in
NZF, and 2% in NXZ. The actual number of calls experienced by any of these
Funds will depend on a variety of factors, including interest rate levels
and the needs of the issuing entities.
The Funds' cumulative return performances relative to one another during this
period were influenced by the relative weightings of specific market sectors
within each portfolio, as well as the performance of individual securities over
this reporting period. For example, NPP's and NMO's performance compared with
the other Funds in this report was hampered by their relatively smaller holdings
of healthcare bonds, which generally performed well over the six months.
Additionally, some of NPP's single family housing bonds, some of NMO's general
obligation bonds and some of NAD's education bonds did not perform as well as
their overall sectors during this period.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels during this
reporting period, the leveraged structures of these six Funds continued to
support their dividend-paying capabilities. The extent of this benefit is tied
in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, the Funds generally pay
relatively lower dividends to their MuniPreferred shareholders, which can leave
more earnings to support common share dividends. During this reporting period,
continued low short-term rates enabled us to increase the dividend of NZF in
December 2003, while maintaining the dividend levels of NPP, NMA, NMO, NAD, and
NXZ throughout the six-month period.
All of these Funds 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
5
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 net asset value (NAV).
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of April 30, 2004, all six Funds in this report
had positive UNII balances.
As of April 30, 2004, NPP was trading at a discount of -11.15%, compared with an
average discount of -5.21% for the six-month period. NMA was trading at a
discount of -8.12%, compared with an average of -1.72%, NMO was at a -11.15%
discount compared with an average of -5.65%, NAD was at a discount of -6.94%,
compared with an average of -0.35%, NXZ was at a -6.24% discount, compared with
an average of -2.42%, and NZF was at a discount of -9.07% compared with an
average of -5.24% for the period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AS OF APRIL 30, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong overall credit quality was an important requirement. As
of the end of April 2004, all six of these Funds continued to offer excellent
average credit quality, with allocations of bonds rated AAA/U.S. guaranteed and
AA ranging from 83% in NPP to 82% in NZF, 78% in NMO, 76% in NAD, 74% in NMA and
68% in NXZ.
6
Nuveen Performance Plus Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NPP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 69%
AA 14%
A 4%
BBB 9%
NR 3%
BB or Lower 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.55
--------------------------------------------------
Common Share Net Asset Value $15.25
--------------------------------------------------
Premium/(Discount) to NAV -11.15%
--------------------------------------------------
Market Yield 7.17%
--------------------------------------------------
Taxable-Equivalent Yield1 9.96%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $913,638
--------------------------------------------------
Average Effective Maturity (Years) 16.94
--------------------------------------------------
Leverage-Adjusted Duration 10.41
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/22/89)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -4.39% 1.79%
--------------------------------------------------
1-Year -2.46% 3.45%
--------------------------------------------------
5-Year 4.55% 6.27%
--------------------------------------------------
10-Year 5.75% 6.83%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 18%
--------------------------------------------------
Tax Obligation/General 15%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.0795
Jun 0.0795
Jul 0.0795
Aug 0.0795
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.081
Apr 0.081
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.89
15.05
15.48
15.63
15.78
15.12
15.32
15.25
15.36
14.55
14.16
14.37
14.02
14.11
14.16
14.34
14.47
14.44
14.55
14.54
14.45
14.65
14.64
14.72
14.63
14.58
14.77
14.89
14.77
15.02
15.25
15.38
15.43
15.15
15.35
15.37
15.36
15.55
15.67
15.64
15.82
15.57
15.16
14.54
14.2
13.97
4/30/04 13.55
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
7
Nuveen Municipal Advantage Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NMA
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 61%
AA 13%
A 7%
BBB 17%
BB or Lower 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.25
--------------------------------------------------
Common Share Net Asset Value $15.51
--------------------------------------------------
Premium/(Discount) to NAV -8.12%
--------------------------------------------------
Market Yield 7.24%
--------------------------------------------------
Taxable-Equivalent Yield1 10.06%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $667,327
--------------------------------------------------
Average Effective Maturity (Years) 18.37
--------------------------------------------------
Leverage-Adjusted Duration 9.03
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/89)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -4.55% 2.64%
--------------------------------------------------
1-Year -0.57% 5.28%
--------------------------------------------------
5-Year 4.73% 6.77%
--------------------------------------------------
10-Year 6.44% 7.15%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Utilities 17%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Transportation 11%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.086
Jun 0.086
Jul 0.086
Aug 0.086
Sep 0.086
Oct 0.086
Nov 0.086
Dec 0.086
Jan 0.086
Feb 0.086
Mar 0.086
Apr 0.086
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 15.39
15.53
15.98
16.31
16.39
15.69
15.9
15.92
16.01
15.44
14.94
15.22
14.82
14.94
15.09
15.12
15.14
15.27
15.37
15.31
15.19
15.3
15.44
15.55
15.45
15.53
15.7
15.83
15.51
15.68
15.93
16.05
16.1
16.09
16.26
16.25
16.08
16.27
16.23
16.3
16.27
16.21
16.07
15.12
14.81
14.45
4/30/04 14.25
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0142 per share.
8
Nuveen Municipal Market Opportunity Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NMO
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 66%
AA 12%
A 11%
BBB 8%
NR 1%
BB or Lower 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.23
--------------------------------------------------
Common Share Net Asset Value $14.89
--------------------------------------------------
Premium/(Discount) to NAV -11.15%
--------------------------------------------------
Market Yield 7.17%
--------------------------------------------------
Taxable-Equivalent Yield1 9.96%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $678,108
--------------------------------------------------
Average Effective Maturity (Years) 17.53
--------------------------------------------------
Leverage-Adjusted Duration 8.99
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/21/90)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -4.36% 1.61%
--------------------------------------------------
1-Year -2.08% 5.56%
--------------------------------------------------
5-Year 2.63% 5.41%
--------------------------------------------------
10-Year 5.62% 6.47%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 22%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.079
Apr 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.61
14.62
14.94
15.16
15.33
14.76
14.98
15.09
15.12
14.47
13.88
14.24
13.88
13.98
14.11
14.1
14.09
14.2
14.21
14.17
14.05
14.12
14.29
14.44
14.27
14.27
14.44
14.46
14.36
14.45
14.7
14.98
15.04
14.89
15.05
15.03
15.03
15.07
15.2
15.35
15.26
15.2
14.86
14.28
13.84
13.55
4/30/04 13.23
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
9
Nuveen Dividend Advantage Municipal Fund
Performance
OVERVIEW As of April 30, 2004
NAD
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 65%
AA 11%
A 2%
BBB 7%
NR 10%
BB or Lower 5%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.94
--------------------------------------------------
Common Share Net Asset Value $14.98
--------------------------------------------------
Premium/(Discount) to NAV -6.94%
--------------------------------------------------
Market Yield 7.36%
--------------------------------------------------
Taxable-Equivalent Yield1 10.22%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $588,410
--------------------------------------------------
Average Effective Maturity (Years) 16.32
--------------------------------------------------
Leverage-Adjusted Duration 9.17
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/26/99)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -4.69% 2.07%
--------------------------------------------------
1-Year -1.22% 4.46%
--------------------------------------------------
Since Inception 4.95% 7.47%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Transportation 14%
--------------------------------------------------
Tax Obligation/General 13%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.082
Jun 0.083
Jul 0.083
Aug 0.083
Sep 0.0855
Oct 0.0855
Nov 0.0855
Dec 0.0855
Jan 0.0855
Feb 0.0855
Mar 0.0855
Apr 0.0855
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 15.11
15.29
15.7
15.74
16.02
15.75
15.78
15.72
15.67
14.81
14.5
14.73
14.48
14.58
14.44
14.67
14.75
14.94
14.9
14.82
14.82
14.95
15.12
15.05
15.07
14.99
15.15
15.17
15.3
15.54
15.97
16.01
16.1
15.85
15.87
16.01
15.88
16.03
16.17
16.19
16.14
16.02
15.73
15.02
14.59
14.21
4/30/04 13.94
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
10
Nuveen Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of April 30, 2004
NXZ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 10%
A 11%
BBB 11%
NR 2%
BB or Lower 8%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.13
--------------------------------------------------
Common Share Net Asset Value $15.07
--------------------------------------------------
Premium/(Discount) to NAV -6.24%
--------------------------------------------------
Market Yield 7.30%
--------------------------------------------------
Taxable-Equivalent Yield1 10.14%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $441,213
--------------------------------------------------
Average Effective Maturity (Years) 24.56
--------------------------------------------------
Leverage-Adjusted Duration 10.43
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -1.38% 3.15%
--------------------------------------------------
1-Year 2.82% 6.09%
--------------------------------------------------
Since Inception 4.61% 8.24%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 25%
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
Transportation 14%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Tax Obligation/General 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0845
Jun 0.086
Jul 0.086
Aug 0.086
Sep 0.086
Oct 0.086
Nov 0.086
Dec 0.086
Jan 0.086
Feb 0.086
Mar 0.086
Apr 0.086
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.79
14.89
15.28
15.57
15.67
15.29
15.4
15.55
15.3
14.8
14.6
14.63
14.48
14.47
14.5
14.62
14.7
14.84
14.84
14.84
14.66
14.8
14.85
14.86
14.98
15
14.97
15.09
15.01
15.12
15.62
15.5
15.56
15.27
15.51
15.61
15.56
15.66
15.78
15.75
15.73
15.76
15.44
14.79
14.45
14.28
4/30/04 14.13
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2003 of $0.0291 per share.
11
Nuveen Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of April 30, 2004
NZF
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 71%
AA 11%
A 3%
BBB 9%
NR 4%
BB or Lower 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.34
--------------------------------------------------
Common Share Net Asset Value $14.67
--------------------------------------------------
Premium/(Discount) to NAV -9.07%
--------------------------------------------------
Market Yield 7.24%
--------------------------------------------------
Taxable-Equivalent Yield1 10.06%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $591,502
--------------------------------------------------
Average Effective Maturity (Years) 20.74
--------------------------------------------------
Leverage-Adjusted Duration 9.88
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -0.04% 2.73%
--------------------------------------------------
1-Year 1.31% 4.59%
--------------------------------------------------
Since Inception 1.83% 7.25%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.078
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0805
Apr 0.0805
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.2
14.28
14.5
14.73
14.86
14.55
14.49
14.75
14.63
14.15
13.69
13.91
13.7
13.84
13.78
13.81
13.8
13.72
13.72
13.8
13.71
13.82
13.8
13.95
13.96
13.93
14.02
14.22
14.14
14.29
14.67
14.79
14.76
14.65
14.65
14.91
14.75
14.9
15.09
15.02
14.98
14.94
14.66
14.2
13.9
13.66
4/30/04 13.34
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
12
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.6%
$ 3,615 Alabama Water Pollution Control Authority, Revolving Fund 8/05 at 100.00 AAA $ 3,858,579
Loan Bonds, Series 1994A, 6.750%, 8/15/17 (Pre-refunded
to 8/15/05) - AMBAC Insured
Jefferson County, Alabama, Sewer Revenue Refunding Warrants,
Series 1997A:
3,640 5.625%, 2/01/22 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA 3,993,844
1,435 5.625%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 1,532,480
3,820 5.375%, 2/01/27 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 100.00 AAA 4,130,184
1,505 5.375%, 2/01/27 - FGIC Insured 2/07 at 100.00 AAA 1,546,628
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.4%
1,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/12 at 100.00 AAA 1,048,290
Series 2002B, 5.250%, 7/01/22
Phoenix, Arizona, Civic Improvement Corporation, Senior Lien
Airport Revenue Bonds, Series 2002B:
5,365 5.750%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured 7/12 at 100.00 AAA 5,850,264
5,055 5.750%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/12 at 100.00 AAA 5,490,893
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6%
5,080 Independence County, Arkansas, Hydroelectric Power Revenue 5/13 at 100.00 A 5,083,962
Bonds, Series 2003, 5.350%, 5/01/28 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.4%
3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 2,194,850
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 (WI, settling 5/06/04) - AMBAC Insured
11,000 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 4,721,420
Lease Revenue Bonds, Public Improvement Project,
Series 1997C, 0.000%, 9/01/20 - FSA Insured
2,000 California Health Facilities Financing Authority, Revenue 3/13 at 100.00 A 1,907,440
Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
6,435 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 7,489,182
6.000%, 4/01/16 - AMBAC Insured
4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 Baa1 4,348,620
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
4,000 6.000%, 5/01/15 5/12 at 101.00 A3 4,424,680
2,750 5.375%, 5/01/22 5/12 at 101.00 A3 2,821,005
6,925 East Bay Municipal Utility District, Alameda and Contra Costa 6/06 at 100.00 AAA 6,912,674
Counties, California, Water System Subordinated Revenue
Refunding Bonds, Series 1996, 4.750%, 6/01/21 - FGIC Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 9,384,200
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,000 Mt. Diablo Hospital District, California Insured Hospital Revenue 6/04 at 102.00 AAA 1,007,730
Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC Insured
13,450 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 17,104,769
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.200%, 8/01/17 - MBIA Insured
20,420 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 23,114,011
Residential Mortgage Revenue Refunding Bonds,
Series 1991A, 7.150%, 2/01/10
2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,132,333
Restructured Single Family Mortgage Revenue Bonds,
Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax)
10,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102.00 AAA 10,706,100
Medical Center Financing Project, Series 1995,
5.500%, 8/01/15 (Pre-refunded to 8/01/05) - MBIA Insured
2,000 San Francisco Airports Commission, California, Revenue Bonds, 5/09 at 101.00 AAA 2,011,680
San Francisco International Airport, Second Series 1999,
Issue 23B, 5.125%, 5/01/30 - FGIC Insured
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,019,900
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.125%, 5/01/26 -
FGIC Insured
13
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AAA $ 19,531,830
California, General Obligation Refunding Bonds, Series 1997A,
7.200%, 2/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.0%
3,000 Colorado Educational and Cultural Facilities Authority, Charter 8/14 at 100.00 AAA 3,044,820
School Revenue Bonds, Peak to Peak Charter School,
Series 2004, 5.250%, 8/15/34 - XLCA Insured
3,360 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA 3,411,845
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
5,425 Denver City and County, Colorado, Airport System Revenue 11/07 at 101.00 AAA 5,610,101
Bonds, Series 1997E, 5.250%, 11/15/23 - MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 4,017,500
Bonds, Series 1997B, 0.000%, 9/01/21 - MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,000,700
Bonds, Series 2000B, 0.000%, 9/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4%
5,590 District of Columbia, General Obligation Bonds, Series 1999B, 6/09 at 101.00 AAA 6,057,380
5.500%, 6/01/13 - FSA Insured
6,720 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 6,357,053
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.7%
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,775,752
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
Housing Finance Authority of Broward County, Florida,
Multifamily Housing Revenue Bonds, Venice Homes Apartments
Project, Series 2001A:
1,545 5.700%, 1/01/32 (Alternative Minimum Tax) - FSA Insured 7/11 at 100.00 AAA 1,558,781
1,805 5.800%, 1/01/36 (Alternative Minimum Tax) - FSA Insured 7/11 at 100.00 AAA 1,828,682
3,885 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 4,041,682
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 (Alternative
Minimum Tax) - FSA Insured
10,050 State of Florida, Full Faith and Credit, State Board of Education, 6/10 at 101.00 AA+ 10,951,485
Public Education Capital Outlay Refunding Bonds,
Series 1999D, 5.750%, 6/01/22
7,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 7,314,440
Bonds, Tampa International Airport, Series 2003A,
5.250%, 10/01/17 (Alternative Minimum Tax) - MBIA Insured
10,750 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 11,084,970
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP Project, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
2,570 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 2,660,438
Multifamily Mortgage Revenue Bonds, Country Club Villas II
Project, Series 2001-1A, 5.850%, 1/01/37 (Alternative
Minimum Tax) - FSA Insured
1,500 Orlando Utilities Commission, Florida, Subordinate Lien Water 10/04 at 101.00 Aa1 1,523,625
and Electric Revenue Refunding Bonds, Series 1994A,
5.000%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.2%
4,920 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 5,570,030
Series 2000A, 5.600%, 1/01/30 (Pre-refunded to 1/01/10) -
FGIC Insured
5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 5,507,100
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,000 George L. Smith II World Congress Center Authority, Georgia, 7/10 at 101.00 AAA 2,087,380
Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 (Alternative Minimum
Tax) - MBIA Insured
15,000 Private Colleges and Universities Authority, Georgia, Revenue 11/09 at 101.00 AA 15,675,000
Bonds, Emory University, Series 1999A, 5.500%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,230 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aa2 1,282,927
Mortgage Bonds, Series 2000G-2, 5.950%, 7/01/25
(Alternative Minimum Tax)
1,130 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 A1 1,191,800
Mortgage Bonds, Series 2000D, 6.200%, 7/01/14
(Alternative Minimum Tax)
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.3%
$ 3,000 Chicago, Illinois, General Obligation Bonds, Library Projects, 1/08 at 102.00 AAA $ 3,306,210
Series 1997, 5.750%, 1/01/17 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, City Colleges of
Chicago Capital Improvement Project, Series 1999:
32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AAA 13,494,672
32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AAA 12,830,816
10,000 Chicago School Reform Board of Trustees of the Chicago Board No Opt. Call AAA 4,520,100
of Education, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/19 -
FGIC Insured
10,000 Chicago School Reform Board of Trustees of the Chicago No Opt. Call AAA 4,240,400
Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
9,145 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/07 at 101.00 AAA 9,348,659
Series 1996A, 5.500%, 1/01/29 - MBIA Insured
DuPage County Forest Preserve District, Illinois, General
Obligation Bonds, Series 2000:
8,000 0.000%, 11/01/18 No Opt. Call AAA 3,886,720
15,285 0.000%, 11/01/19 No Opt. Call AAA 6,980,507
3,500 Illinois Development Finance Authority, Pollution Control 3/05 at 102.00 AAA 3,708,145
Refunding Revenue Bonds, Commonwealth Edison Company
Project, Series 1994D, 6.750%, 3/01/15 - AMBAC Insured
12,910 Illinois Health Facilities Authority, Revenue Bonds, Northwestern 8/04 at 102.00 AA+ 13,212,610
Memorial Hospital, Series 1994A, 6.000%, 8/15/24
3,285 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A- 3,374,812
Cross Hospital and Medical Centers, Series 1999,
5.250%, 8/15/15
4,580 Illinois Health Facilities Authority, Revenue Bonds, Midwest 8/10 at 102.00 Aaa 4,888,829
Care Center IX, Inc., Series 2000, 6.250%, 8/20/35
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,165,180
Hospital, Series 2003, 6.000%, 7/01/33
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 3,895,920
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/04 at 100.00 BB+ 4,415,397
Proctor Community Hospital Project, Series 1991,
7.375%, 1/01/23
5,000 Community Unit School District No. 300, Counties of Kane, 12/11 at 100.00 AAA 5,398,800
McHenry, Cook, and DeKalb, Illinois, General Obligation
Bonds, Series 2000, 5.500%, 12/01/19 - MBIA Insured
3,700 Libertyville, Illinois, Affordable Housing Revenue Bonds, 11/09 at 100.00 A2 3,643,834
Liberty Towers Project, Series 1999A, 7.000%, 11/01/29
(Alternative Minimum Tax)
6,000 McHenry County, Illinois, Conservation District General 2/11 at 100.00 AAA 6,478,380
Obligation Bonds, Series 2001A, 5.625%, 2/01/21 -
FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 4,539,166
16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 7,057,826
23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 8,793,099
13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 4,237,090
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Refunding Bonds, Series 1998A:
5,180 5.500%, 12/15/23 - FGIC Insured No Opt. Call AAA 5,689,557
5,100 5.500%, 12/15/23 - FGIC Insured No Opt. Call AAA 5,574,147
10,650 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 13,522,198
Place Hospitality Facilities Revenue Bonds, Series 1996A,
7.000%, 7/01/26
17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 20,077,938
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999, 5.750%, 6/01/23 - FSA Insured
6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding Bonds, 10/09 at 102.00 AAA 6,524,582
Villa Vianney, Series 1999A, 6.450%, 10/01/29
15
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.0%
$ 2,465 Danville Multi-School Building Corporation, Indiana, First 7/11 at 100.00 AAA $ 2,604,741
Mortgage Refunding Bonds, Series 2001, 5.250%, 7/15/18 -
AMBAC Insured
14,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 14,355,180
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 - MBIA Insured
Indiana Health Facility Financing Authority, Revenue Bonds,
Ancilla Systems Incorporated Obligated Group, Series 1997:
15,380 5.250%, 7/01/17 - MBIA Insured 7/07 at 101.00 AAA 16,500,894
2,250 5.250%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 2,340,788
4,320 5.250%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 4,494,312
8,000 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 Aa2 8,220,400
Bonds, Series 2000, 5.375%, 12/01/25
5,730 Michigan City School Building Corporation, Indiana, First 12/04 at 102.00 AAA 6,018,792
Mortgage Bonds, Series 1994A, 6.125%, 12/15/09
(Pre-refunded to 12/15/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 BBB 3,993,750
Asset-Backed Revenue Bonds, Series 2001B,
5.600%, 6/01/35
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.9%
5,790 Sedgwick County Unified School District No. 259, Wichita, 9/10 at 100.00 AA 5,184,192
Kansas, General Obligation Bonds, Series 2000,
3.500%, 9/01/17
3,200 Unified School District No. 500, County of Wyandotte, 9/11 at 100.00 AAA 2,906,144
Kansas, General Obligation School Bonds, Series 2001,
4.000%, 9/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
3,700 Louisville and Jefferson County Metropolitan Sewer 5/07 at 101.00 AAA 4,055,089
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 1997A, 6.250%, 5/15/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.1%
2,125 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 2,197,208
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Refunding Bonds, Series 1997B-1,
5.750%, 10/01/26
35,700 Louisiana Stadium and Exposition District, Hotel Occupancy 7/06 at 102.00 AAA 39,303,915
Tax Bonds, Series 1996, 5.750%, 7/01/26 (Pre-refunded
to 7/01/06) - FGIC 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 8,645,800
6,250 5.875%, 5/15/39 5/11 at 101.00 BBB 5,192,625
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.6%
5,680 Portland, Maine, General Airport Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,654,099
5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.7%
1,145 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 1,188,590
Revenue Bonds, Series 2000H, 5.800%, 9/01/32 (Alternative
Minimum Tax)
7,720 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 7,849,542
International Airport Parking Revenue Bonds, Series 2002B,
5.125%, 3/01/20 (Alternative Minimum Tax) - AMBAC Insured
7,475 Montgomery County Housing Opportunities Commission, 7/04 at 102.00 Aa2 7,623,454
Maryland, GNMA/FHA-Insured Multifamily Housing Revenue
Bonds, Series 1994A, 6.250%, 7/01/28
7,090 Takoma Park, Maryland, Hospital Facilities Refunding and No Opt. Call AAA 8,365,775
Improvement Revenue Bonds, Washington Adventist Hospital
Project, Series 1995, 6.500%, 9/01/12 - FSA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.1%
$ 1,820 Massachusetts Educational Financing Authority, Student Loan 12/09 at 101.00 AAA $ 1,909,580
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11
(Alternative Minimum Tax) - MBIA Insured
Massachusetts Municipal Wholesale Electric Company, Power
Supply System Revenue Bonds, Series 1987A:
70 8.750%, 7/01/18 (Pre-refunded to 7/01/04) 7/04 at 100.00 Aaa 70,887
35 8.750%, 7/01/18 (Pre-refunded to 1/01/05) 1/05 at 100.00 Aaa 36,724
35 8.750%, 7/01/18 (Pre-refunded to 7/01/05) 7/05 at 100.00 Aaa 37,947
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
3,745 5.250%, 1/01/22 (Pre-refunded to 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 4,097,816
1,255 5.250%, 1/01/22 - FGIC Insured 1/13 at 100.00 AAA 1,373,234
890 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/12 at 100.00 Aa2 981,181
Series 2002C, 5.250%, 11/01/30 (Pre-refunded to 11/01/12)
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 4,030,480
5,000 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,022,450
1,420 Massachusetts Health and Educational Facilities Authority, 7/08 at 101.00 Aaa 1,350,945
Revenue Bonds, Southcoast Health System Obligated Group,
Series 1998A, 4.750%, 7/01/27 - MBIA Insured
8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 AAA 9,482,515
Commonwealth of Massachusetts Lease Revenue Bonds,
Series 2000, 5.375%, 6/15/33 (Pre-refunded to 6/15/10) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.6%
17,000 Birmingham City School District, Oakland County, Michigan, 11/07 at 100.00 AAA 16,618,690
School Building and Site Bonds, Series 1998,
4.750%, 11/01/24 - FSA Insured
3,000 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101.00 AAA 3,068,160
Senior Lien Bonds, Series 1997A, 5.000%, 7/01/21 -
MBIA Insured
3,835 Grand Rapids Housing Corporation, Michigan, FHA-Insured 7/04 at 104.00 AAA 3,991,084
Section 8 Multifamily Mortgage Loan Revenue Refunding
Bonds, Series 1992, 7.375%, 7/15/41
4,030 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 4,086,984
Mortgage Hospital Revenue Bonds, Portage Health System,
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
1,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/11 at 100.00 AA 1,009,270
Facilities Program, Series 2001-I, 5.000%, 10/15/24
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,012,950
Facilities Program, Series 2003-II, 5.000%, 10/15/29 -
MBIA Insured
7,115 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 7,415,111
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.500%, 3/01/16
5,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 5,479,950
Refunding Bonds, Sisters of Mercy Health Corporation,
Series 1993P, 5.375%, 8/15/14 - MBIA Insured
3,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 3,088,920
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 10,469,300
Metropolitan Airport, Series 1998A, 5.375%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 6.3%
7,475 Dakota County Community Development Agency, Minnesota, 2/12 at 102.00 Aaa 7,707,323
GNMA Collateralized Mortgage Loan Multifamily Senior
Housing Revenue Bonds, Wingate Project, Series 2002A,
5.625%, 8/20/43
570 Dakota County Housing and Redevelopment Authority, 10/04 at 102.00 AAA 581,942
Minnesota, FNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 1994A, 6.900%, 10/01/27 (Alternative
Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,057,900
Minnesota, Subordinate Airport Revenue Bonds,
Series 2001C, 5.250%, 1/01/26 - FGIC Insured
18,020 Plymouth, Minnesota, GNMA Collateralized Mortgage Loan 3/12 at 105.00 Aaa 18,131,003
Senior Housing Revenue Bonds, Regent at Plymouth Project,
Series 2002A, 4.090%, 9/20/43
17
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 21,860 The Housing and Redevelopment Authority of the City of 11/15 at 103.00 AAA $ 26,625,043
Saint Paul, Minnesota, Sales Tax Revenue Refunding Bonds,
Civic Center Project, Series 1996, 7.100%, 11/01/23 -
FSA Insured
1,795 St. Paul Housing and Redevelopment Authority, Minnesota, 3/05 at 102.60 Aaa 1,862,851
FNMA Mortgage-Backed Securities, Middle Income Program
Phase II Single Family Mortgage Revenue Refunding Bonds,
Series 1995, 6.800%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.1%
9,750 Mississippi Business Finance Corporation, Pollution Control 10/04 at 101.00 BBB- 9,798,653
Revenue Refunding Bonds, System Energy Resources, Inc.
Project, Series 1998, 5.875%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6%
2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,005,580
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
6,350 Kansas City, Missouri, General Improvement Airport Revenue 9/12 at 100.00 AAA 6,757,035
Bonds, Series 2003B, 5.250%, 9/01/17 - FGIC Insured
95 Missouri Housing Development Commission, GNMA 5/04 at 100.00 AAA 95,113
Mortgage-Backed Securities Program, Single Family Mortgage
Revenue Bonds, Series 1988A, 8.300%, 5/01/19 (Alternative
Minimum Tax)
3,740 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 3,799,167
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/28 - AMBAC Insured
1,845 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 1,933,542
Bonds, BJC Health System, Series 2003, 5.250%, 5/15/18
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.9%
1,410 Montana Board Of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 1,459,322
Series 1997A, 6.150%, 6/01/30 (Alternative Minimum Tax)
1,725 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 1,805,661
Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
4,795 Montana Higher Education Student Assistance Corporation, 12/08 at 101.00 A2 4,847,505
Student Loan Revenue Bonds, Subordinate Series 1998B,
5.500%, 12/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3%
2,710 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 2,831,625
Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.5%
10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,802,411
Series 2002C, 5.500%, 6/15/19 - MBIA Insured
10,505 State of Nevada, General Obligation Bonds, Municipal Bond 5/06 at 101.00 AAA 11,479,129
Bank Project No. 52, Series 1996A, 6.000%, 5/15/21
(Pre-refunded to 5/15/06)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.2%
New Hampshire Housing Finance Authority, FHLMC Multifamily
Housing Revenue Remarketed Bonds, Countryside LP Project, Series 1994:
3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,921,494
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,251,761
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.2%
3,635 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 3,832,199
Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13
(Alternative Minimum Tax) - MBIA Insured
3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100.00 AAA 3,315,660
Sublease Revenue Bonds, Light Rail Transit System Projects,
Series 1999A, 5.250%, 5/01/17 (Pre-refunded to 5/01/09) -
FSA Insured
8,750 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102.00 AA- 9,304,050
System Bonds, Series 1996B, 5.250%, 6/15/16
9,250 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- 9,917,573
System Bonds, Series 2003C, 5.500%, 6/15/23
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA $ 5,006,295
System Bonds, Series 2001C, 5.500%, 12/15/18 - FSA Insured
10,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 10,345,100
Series 2003A, 5.000%, 1/01/20 - FSA Insured
15,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 13,405,200
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
3,125 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 2,932,563
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
Township of West Deptford, County of Gloucester, New Jersey,
General Obligation Bonds, Series 2000:
3,150 5.500%, 9/01/21 (Pre-refunded to 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,540,852
3,335 5.500%, 9/01/22 (Pre-refunded to 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,748,807
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.9%
1,500 Town of Hempstead Industrial Development Agency, New York, No Opt. Call A3 1,589,655
Resource Recovery Revenue Refunding Bonds, American
REF-FUEL Company of Hempstead Project, Series 2001,
5.000%, 12/01/10 (Mandatory put 6/01/10)
12,500 Metropolitan Transportation Authority, New York, Dedicated No Opt. Call AAA 13,028,625
Tax Fund Bonds, Series 2002A, 5.500%, 11/15/26 -
FSA Insured
5 New York City, New York, General Obligation Bonds, 8/04 at 100.00 A 5,081
Fiscal Series 1987D, 8.500%, 8/01/08
12,500 New York City, New York, General Obligation Bonds, No Opt. Call A 13,308,875
Fiscal Series 1997A, 7.000%, 8/01/05
6,300 New York City, New York, General Obligation Bonds, 5/10 at 101.00 AAA 7,194,285
Fiscal Series 2000A, 6.250%, 5/15/26 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 1996F:
13,060 5.750%, 2/01/15 (Pre-refunded to 2/01/06) 2/06 at 101.50 A*** 14,130,398
3,235 5.750%, 2/01/15 2/06 at 101.50 A 3,429,747
4,875 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 5,139,274
Water and Sewer System Revenue Bonds, Fiscal Series 1997A,
5.500%, 6/15/24 - MBIA Insured
10,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AA 10,597,400
Water and Sewer System Revenue Bonds, Fiscal Series 2000A,
5.750%, 6/15/30
New York City Municipal Water Finance Authority, New York, Water
and Sewer System Revenue Bonds, Fiscal Series 1996B:
7,270 5.750%, 6/15/26 (Pre-refunded to 6/15/06) - MBIA Insured 6/06 at 101.00 AAA 7,924,009
13,380 5.750%, 6/15/26 - MBIA Insured 6/06 at 101.00 AAA 14,226,285
7,810 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AA+*** 8,916,287
Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded to 8/15/09)
2,250 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 2,538,428
Bonds, State University Dormitory Facilities, Series 1999C,
5.500%, 7/01/29 (Pre-refunded to 7/01/09) - MBIA Insured
4,000 Dormitory Authority of the State of New York, Revenue 5/04 at 100.00 AA- 4,106,600
Bonds, State University Educational Facilities, Series 1990B,
6.000%, 5/15/17
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 8/07 at 101.00 AAA 1,545,000
St. Barnabas Hospital, Series 1997, 5.450%, 8/01/35 -
AMBAC Insured
2,070 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,248,124
Bonds, 853 Schools Program, Gateway-Longview, Inc.,
Series 1998A, 5.500%, 7/01/18 - AMBAC Insured
5,500 Dormitory Authority of the State of New York, FHA 2/14 at 100.00 AAA 5,500,000
Mortgage-Backed Hospital Revenue Bonds, Kaleida Health,
Series 2004, 5.050%, 2/15/25 (WI, settling 5/20/04)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1996B:
1,930 5.375%, 2/15/26 (Pre-refunded to 2/15/06) - MBIA Insured 2/06 at 102.00 AAA 2,087,893
70 5.375%, 2/15/26 - MBIA Insured 2/06 at 102.00 AAA 71,446
17,000 Dormitory Authority of the State of New York, Third General 7/09 at 101.00 AAA 19,179,230
Resolution Consolidated Revenue Bonds, City University
System, Series 1999-1, 5.500%, 7/01/29 (Pre-refunded
to 7/01/09) - FSA Insured
3,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 3,345,720
Resolution Consolidated Revenue Bonds, City University
System, Series 1997-1, 5.375%, 7/01/24 (Pre-refunded to
1/01/08) - FSA Insured
19
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
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 $ 1,756,281
9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 10,031,703
3,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 3,182,100
Pollution Control Revenue Bonds, Rochester Gas and Electric
Corporation Project, Series 1998A, 5.950%, 9/01/33
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.2%
2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/08 at 102.00 AAA 2,061,240
Revenue Bonds, Series 1998A, 5.000%, 1/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.2%
1,700 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa2 1,778,727
Program Refunding Bonds, Series 2000A, 6.500%, 1/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.6%
7,500 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 7,501,575
5.000%, 1/01/31 - FSA Insured
14,650 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 15,196,591
Securities Program, Residential Mortgage Revenue Bonds,
Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax)
15,200 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 14,134,024
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
14,100 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 14,163,309
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3%
3,400 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 3,172,472
Bonds, American Airlines, Inc., Series 2000B, 6.000%, 6/01/35
(Alternative Minimum Tax) (Mandatory put 12/01/08)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0%
115 State of Oregon, Housing and Community Services Department, 1/10 at 100.00 Aa2 115,826
Mortgage Revenue Bonds, Single Family Mortgage Program,
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call BBB 9,061,245
Portland General Electric Company Project, Series 1985B,
4.800%, 6/01/10
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.2%
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 1,218,281
3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,137,156
3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,067,123
3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 948,046
4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,211,998
2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 748,076
0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 778,860
4,355 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 4,695,169
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,565 Cumberland County Municipal Authority, Pennsylvania, 11/04 at 102.00 BBB-*** 2,689,326
First Mortgage Revenue Refunding Bonds, Carlisle Hospital
and Health Services, Series 1994, 6.800%, 11/15/14
(Pre-refunded to 11/15/04)
11,000 Delaware County Authority, Pennsylvania, Health System 11/08 at 102.00 AAA 11,104,060
Revenue Bonds, Catholic Health East Issue, Series 1998A,
4.875%, 11/15/18 - AMBAC Insured
Pennsylvania Economic Development Financing Authority, Resource
Recovery Revenue Bonds, Northampton Generating Project, Senior
Lien Series 1994A:
2,100 6.400%, 1/01/09 (Alternative Minimum Tax) 7/04 at 102.00 BBB- 2,144,247
4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 7/04 at 102.00 BBB- 4,556,115
800 Pennsylvania Economic Development Financing Authority, 7/04 at 102.00 N/R 795,768
Subordinate Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994C, 6.875%, 1/01/11
(Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 5,275 Pennsylvania Economic Development Financing Authority, No Opt. Call N/R $ 5,465,058
Resource Recovery Revenue Bonds, Northampton Generating
Project, Senior Lien Series 1994B, 6.750%, 1/01/07 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2%
1,250 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,400,338
Revenue Bonds, Series 2000B, 5.875%, 7/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5%
2,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 AAA 2,027,400
Bonds, Series 2002A, 5.000%, 7/15/23 - MBIA Insured
Rhode Island Health and Educational Building Corporation,
Revenue Refunding Bonds, Salve Regina University, Series 2002:
1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA 1,309,631
1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,116,515
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.9%
6,925 South Carolina, General Obligation Bonds, Series 1999A, 10/09 at 101.00 AAA 6,904,364
4.000%, 10/01/14
21,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 19,421,640
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9%
2,260 Johnson City Health and Educational Facilities Board, 1/09 at 101.00 AAA 2,318,873
Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center, Series 1998C,
5.125%, 7/01/23 - MBIA Insured
1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,820,632
Revenue Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative
Minimum Tax) - AMBAC Insured
6,000 Metropolitan Government of Nashville and Davidson Counties, 12/17 at 100.00 AAA 6,879,900
Tennessee, Revenue Refunding and Improvement Bonds,
Meharry Medical College, Series 1996, 6.000%, 12/01/19 -
AMBAC Insured
5,820 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 6,001,759
Program Bonds, Issue 2000-1, 6.375%, 7/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.4%
3,740 Austin, Texas, Hotel Occupancy Tax Subordinate Lien Revenue 11/09 at 100.00 AAA 4,115,197
Refunding Bonds, Series 1999, 5.625%, 11/15/17 -
AMBAC Insured
3,975 Bell County, Texas, Health Facilities Development Corporation 2/10 at 101.00 AAA 4,387,327
Hospital Revenue Bonds, Scott and White Memorial Hospital
And Scott, Sherwood and Brindley Foundation Project,
Series 2000A, 6.125%, 8/15/23 - MBIA Insured
5,690 Dallas-Ft. Worth International Airport Facility Improvement 11/05 at 100.00 CCC 5,391,560
Corporation, Texas, Revenue Refunding Bonds, American
Airlines, Inc., Series 2000B, 6.050%, 5/01/29 (Alternative
Minimum Tax) (Mandatory put 11/01/05)
425 Ft. Worth Housing Finance Corporation, Texas, Home Mortgage 10/04 at 100.00 Aa2 430,478
Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11
1,000 Fort Worth, Texas, Water and Sewer Revenue Bonds, 2/08 at 100.00 AA 1,063,340
Series 1998, 5.250%, 2/15/15
1,000 Harlingen Independent School District, Cameron County, Texas, 8/09 at 100.00 AAA 1,056,530
Unlimited Tax School Building Bonds, Series 1999,
5.650%, 8/15/29
1,625 Harris County Health Facilities Development Corporation, Texas, 7/09 at 101.00 AAA 1,659,921
Revenue Bonds, Christus Health, Series 1999A,
5.375%, 7/01/24 - MBIA Insured
150 Hidalgo County Housing Finance Corporation, Texas, 10/04 at 102.00 Aaa 151,031
GNMA/FNMA Collateralized Single Family Mortgage Revenue
Bonds, Series 1994A, 6.750%, 10/01/15 (Alternative
Minimum Tax)
4,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 4,000,560
Obligation Bonds, Series 2003, 5.000%, 2/15/27 -
AMBAC Insured
3,885 Houston Independent School District Public Facility Corporation, No Opt. Call AAA 1,769,501
Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez
High School, Series 1998A, 0.000%, 9/15/19 - AMBAC Insured
1,690 Webb County, Laredo, Texas, Combination Tax and Sewer 2/08 at 100.00 AAA 1,660,070
System, Revenue Certificates of Obligation, Series 1998A,
4.500%, 2/15/18 - MBIA Insured
21
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Leander Independent School District, Williamson and Travis
Counties, Texas, Unlimited Tax School Building and Refunding
Bonds, Series 1998:
$ 4,930 0.000%, 8/15/20 8/06 at 46.47 AAA $ 2,028,843
3,705 0.000%, 8/15/22 8/06 at 41.33 AAA 1,351,176
600 Lubbock Housing Finance Corporation, Texas, Single Family 6/07 at 102.00 AAA 604,512
Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed
Securities Program, Series 1997A, 6.125%, 12/01/17
3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 AAA 3,480,209
5.000%, 3/01/27 - FGIC Insured
6,050 City of San Antonio, Texas, Electric and Gas Systems Revenue 2/09 at 100.00 AA+ 5,811,993
Refunding Bonds, New Series 1998A, 4.500%, 2/01/21
6,000 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 6,047,880
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
4,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 4,058,240
Refunding and Improvement Bonds, Series 1999,
5.000%, 3/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.6%
10,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 11,008,700
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
Utah County, Utah, Hospital Revenue Bonds, IHC Health
Services, Inc., Series 1997:
12,500 5.250%, 8/15/21 - MBIA Insured 8/07 at 101.00 AAA 13,162,750
3,900 5.250%, 8/15/26 - MBIA Insured 8/07 at 101.00 AAA 3,969,615
4,340 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 4,502,359
Series 2002A-1, 5.300%, 7/01/18 (Alternative Minimum Tax)
60 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AA 60,414
Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax)
2,745 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 2,909,316
Series 2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax)
3,035 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aa1 3,243,292
Series 2000E-1, Class III, 6.000%, 1/01/15 (Alternative
Minimum Tax)
695 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 699,601
Series 2000E-1, Class II, 6.150%, 1/01/27 (Alternative
Minimum Tax)
1,155 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA 1,170,373
Series 2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax)
935 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 100.00 Aa2 984,789
Series 2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.4%
3,955 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/04 at 102.00 A+ 4,009,065
Series 1994-5, 7.000%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.8%
2,500 Virgin Islands Public Finance Authority, Refinery Revenue Bonds, 10/14 at 100.00 BBB- 2,598,625
Hovensa LLC Project, Series 2003, 6.125%, 7/01/22
(Alternative Minimum Tax)
4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AA 4,646,232
Loan Notes, Series 2003, 5.000%, 10/01/33 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.8%
16,000 Metropolitan District of Columbia Airports Authority, Virginia, 10/04 at 100.00 AAA 16,137,760
Airport System Revenue Bonds, Series 1994A,
5.500%, 10/01/24 (Alternative Minimum Tax) - MBIA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.9%
$ 12,235 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA $ 3,536,037
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/26 - MBIA Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,448,400
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
1,815 Grant County Public Utility District 2, Washington, Wanapum 1/06 at 102.00 AAA 1,900,501
Hydro Electric Revenue Bonds, Series 1997A, Master Lease
Program, 5.625%, 1/01/26 - MBIA Insured
2,295 Lake Washington School District No. 414, King County, 12/10 at 100.00 Aa1 2,473,020
Washington, General Obligation Bonds, Series 2000,
5.375%, 12/01/16
12,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/11 at 100.00 Aa1 12,211,800
Series 2001D, 5.250%, 1/01/26
5,000 Washington State Housing Finance Commission, Nonprofit 7/09 at 101.00 AA 5,251,500
Housing Revenue Bonds, The Kline Galland Center Project,
Series 1999, 6.000%, 7/01/29 - RAAI Insured
4,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 4,716,090
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.5%
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,600
Series 2003L, Appalachian Power Company Project,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
11,620 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 12,587,830
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 6,683,472
Bonds, Millennium Housing Foundation, Inc. Project,
Series 1998, 6.100%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 1,465,720 Total Long-Term Investments (cost $1,306,137,592) - 150.2% 1,373,128,759
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2%
1,500 Illinois Health Facilities Authority, Revenue Bonds, Resurrection A-1 1,500,000
Healthcare System, Variable Rate Demand Obligations,
Series 1999A, 1.100%, 5/15/29 - FSA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,307,637,592) - 150.4% 1,374,628,759
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 18,009,196
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (479,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 913,637,955
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
23
Nuveen Municipal Advantage Fund, Inc. (NMA)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.2%
$ 10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $ 11,153,700
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded
to 2/01/09) - FGIC Insured
5,075 The Health Care Authority of Lauderdale County and the 7/09 at 101.00 AAA 5,164,066
City of Florence, Alabama, Coffee Health Group, Series 1999A,
5.250%, 7/01/24 - MBIA Insured
5,155 Phenix City, Alabama, Industrial Development Board 5/12 at 100.00 BBB 5,348,416
Environmental Improvement Revenue Bonds, MeadWestvaco
Project, 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
5,000 Maricopa County, Arizona, Pollution Control Corporation, 5/06 at 101.00 BBB 5,019,450
Pollution Control Revenue Refunding Bonds Remarketing,
Public Service Company of New Mexico, Series 1992A,
5.750%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.3%
2,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,567,750
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 (WI, settling 5/06/04) - AMBAC Insured
3,000 California Health Facilities Financing Authority, Revenue Bonds, 3/13 at 100.00 A 2,861,160
Adventist Health System/West, Series 2003A, 5.000%, 3/01/33
2,500 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 2,564,550
Revenue Bonds, Series 2002A, 5.375%, 5/01/22
7,500 California State Public Works Board, Lease Revenue Bonds, 4/14 at 100.00 Baa2 7,203,075
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.125%, 6/01/29
7,535 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,905,059
Securities Program, Home Mortgage Revenue Bonds,
Series 1989, 7.750%, 5/01/22 (Alternative Minimum Tax)
6,925 East Bay Municipal Utility District, Alameda and Contra Costa 6/06 at 100.00 AAA 6,912,674
Counties, California, Water System Subordinated Revenue
Refunding Bonds, Series 1996, 4.750%, 6/01/21 - FGIC Insured
2,500 Los Angeles County Metropolitan Transportation Authority, 7/05 at 100.00 AAA 2,605,925
California, Proposition C Sales Tax Revenue Bonds, Second
Senior Bonds, Series 1995A, 5.000%, 7/01/25 (Pre-refunded
to 7/01/05) - AMBAC Insured
North Orange County Community College District, California,
General Obligation Bonds, Series 2003B:
7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AAA 2,418,967
4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AAA 1,176,640
5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,095,900
Residential Mortgage Revenue Refunding Bonds, Series 1991B,
7.375%, 2/01/12
5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,726,650
Single Family Restructured Mortgage Revenue Bonds,
Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax)
9,315 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 12,184,020
Single Family Mortgage Revenue Bonds, Series 1989A,
7.600%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.4%
8,350 Colorado Health Facilities Authority, Remarketed Revenue Bonds, 7/06 at 102.00 A 9,064,677
Kaiser Permanente, Series 1994A, 5.350%, 11/01/16
2,650 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 1,455,645
Bonds, Series 1997B, 0.000%, 9/01/16 - MBIA Insured
4,125 Municipal Subdistrict Northern Colorado, Water Conservancy 12/07 at 101.00 AAA 4,420,061
District Revenue Bonds, Series 1997C, 5.250%, 12/01/15 -
AMBAC Insured
Platte River Power Authority, Colorado, Power Revenue
Refunding Bonds, Series EE:
2,000 5.375%, 6/01/17 6/12 at 100.00 AA- 2,151,820
5,000 5.375%, 6/01/18 6/12 at 100.00 AA- 5,356,950
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.8%
$ 5,000 Connecticut Housing Finance Authority, Housing Mortgage 11/09 at 100.00 AAA $ 5,203,950
Finance Program Bonds, Series 2000B-2, 5.750%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.1%
3,475 District of Columbia Housing Finance Agency, GNMA Collateralized 12/04 at 103.00 AAA 3,489,630
Single Family Mortgage Revenue Bonds, Series 1988F-1,
6.375%, 6/01/26 (Alternative Minimum Tax)
3,615 District of Columbia Housing Finance Agency, Single Family 6/07 at 102.00 AAA 3,719,799
Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.2%
2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,866,368
Stratford Point Apartments, Series 2000-01, 5.850%, 12/01/31
(Alternative Minimum Tax) - FSA Insured
1,075 Orange County, Florida, Tourist Development Tax Revenue 10/09 at 100.00 AAA 1,148,928
Bonds, Series 2000, 5.250%, 10/01/16 - AMBAC Insured
9,990 City of Tampa, Florida, Allegany Health System Revenue Bonds, 6/04 at 101.50 AAA 10,357,133
St. Mary's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.7%
2,530 Hawaii Housing Finance and Development Corporation, 7/07 at 102.00 AAA 2,599,196
Single Family Mortgage Purchase Revenue Bonds,
Series 1997A, 5.750%, 7/01/30 (Alternative Minimum Tax)
2,215 Hawaii Housing and Community Development Corporation, 7/10 at 102.00 AAA 2,301,496
GNMA Collateralized Multifamily Housing Revenue Bonds,
Sunset Villas, Series 2000, 5.700%, 7/20/31
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.4%
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,957,884
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded to 7/01/10) - FGIC Insured
4,000 Chicago School Reform Board of Trustees of the Chicago Board 12/07 at 102.00 AAA 4,533,400
of Education, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1997, 5.750%, 12/01/20
(Pre-refunded to 12/01/07) -AMBAC Insured
12,500 Chicago School Reform Board of Trustees of the Chicago 12/07 at 102.00 AAA 12,656,125
Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
5,000 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare, No Opt. Call N/R 2,243,750
International Airport, United Air Lines Inc. Project,
Series 2001A, 6.375%, 11/01/35 (Alternative Minimum
Tax) (Mandatory put 5/01/13)#
5,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 5,065,100
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured
5,000 Chicago, Illinois, Second Lien Wastewater Transmission 1/08 at 102.00 AAA 5,060,700
Revenue Bonds, Series 1997, 5.250%, 1/01/28 - AMBAC Insured
10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102.00 AAA 11,147,438
Rush-Presbyterian-St. Luke's Medical Center Obligated
Group, Series 1996A, 6.250%, 11/15/20 - MBIA Insured
6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah 2/07 at 102.00 A 6,318,447
Bush Lincoln Health Center, Series 1996B, 5.750%, 2/15/22
3,935 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 Baa2 3,730,459
Health Services, Series 1997A, 5.375%, 8/15/16
6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 A3 6,188,640
Medical Center, Series 2002, 5.750%, 5/15/22
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Bonds, Series 1999A:
13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 14,132,056
10,000 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,181,700
4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,879,214
McHenry 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 4/13 at 100.00 AAA 1,961,495
Bonds, Series 2003A, 5.000%, 4/01/23 - AMBAC Insured
25
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.7%
$ 7,425 Ft. Wayne International Airport Building Corporation, Indiana, 7/04 at 101.00 Aa3 $ 7,470,144
General Obligation Airport Bonds, Series 1994,
5.900%, 1/01/14 (Alternative Minimum Tax)
5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 5,337,051
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 - MBIA Insured
9,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/06 at 102.00 AAA 9,543,330
Refunding and Improvement Bonds, Community Hospitals
Projects, Series 1995, 5.700%, 5/15/22 - MBIA Insured
6,075 LaGrange County Jail Building Corporation, Indiana, First 10/09 at 101.00 A3 6,245,525
Mortgage Jail Bonds, Series 1998, 5.400%, 10/01/21
2,725 Saint Joseph County Hospital Authority, Indiana, Health System 2/09 at 102.00 BBB 2,778,955
Revenue Bonds, Madison Center, Inc. Project, Series 1999,
5.450%, 2/15/12
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.7%
1,315 Iowa Finance Authority, GNMA/FNMA Mortgage-Backed 1/05 at 102.00 AAA 1,351,570
Securities Program, Single Family Mortgage Bonds,
Series 1995C, 6.450%, 1/01/24
3,500 Marshalltown, Iowa, Pollution Control Revenue Refunding 5/04 at 102.00 AAA 3,578,260
Bonds, Iowa Electric Light and Power Company Project,
Series 1993, 5.500%, 11/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8%
5,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A3 5,262,300
Bonds, Kansas City Power and Light Company Project,
Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6%
5,500 Louisville and Jefferson County Metropolitan Sewer District, 5/07 at 101.00 AAA 5,578,595
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 1997A, 5.250%, 5/15/27 - MBIA Insured
4,950 Louisville and Jefferson County Metropolitan Sewer District, 11/07 at 101.00 AAA 5,014,004
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 1997B, 5.200%, 5/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.3%
13,500 De Soto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 14,707,035
Bonds, Cleco Utility Group, Inc. Project, Series 1999,
5.875%, 9/01/29 - AMBAC Insured
10,000 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 12,663,400
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
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 5,187,480
11,750 5.875%, 5/15/39 5/11 at 101.00 BBB 9,762,135
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.4%
1,750 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 AAA 1,731,957
Revenue Bonds, UMass Memorial Healthcare, Series 1998A,
5.000%, 7/01/28 - AMBAC Insured
6,750 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 6,999,278
Revenue Bonds, Series 77, 5.950%, 6/01/25 (Alternative
Minimum Tax) - FSA Insured
590 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 611,588
Revenue Bonds, Series 79, 5.950%, 12/01/27 (Alternative
Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.2%
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/04 at 101.00 Ba3 2,745,498
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
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 3,515,231
3,000 5.250%, 8/15/28 8/08 at 101.00 Ba3 2,033,910
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.2%
$ 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA $ 5,091,050
Minnesota, Subordinate Airport Revenue Bonds,
Series 2001C, 5.250%, 1/01/32 - FGIC Insured
5,890 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 5,952,434
Bonds, Series 2000C, 5.550%, 7/01/24 (Alternative
Minimum Tax)
3,315 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 3,471,899
Revenue Bonds, Series 2000J, 5.400%, 1/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
2,115 Coahoma-Clarksdale Housing Development Corporation, 8/04 at 100.00 AAA 2,118,532
Mississippi, Multifamily Mortgage Revenue Refunding Bonds,
Gooden Estates and McLaurin Arms Project, Series 1990A,
8.000%, 8/01/24
2,630 Coahoma-Clarksdale Housing Development Corporation, 8/04 at 100.00 AAA 2,634,392
Mississippi, Multifamily Mortgage Revenue Refunding Bonds,
Gooden Estates and McLaurin Arms Project, Series 1990B,
8.000%, 8/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3%
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,504,185
Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink
Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 -
FSA Insured
595 Missouri Housing Development Commission, Single Family 9/09 at 102.00 AAA 611,380
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 2000A-1, 7.500%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 2.3%
7,695 Montana Board Of Housing, Single Family Program Bonds, 12/05 at 102.00 AA+ 7,934,315
Series 1995B, 6.400%, 12/01/27 (Alternative Minimum Tax)
6,920 Montana Board Of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 7,179,362
Series 1997A, 6.050%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.0%
7,310 Clark County, Nevada, General Obligation Limited Tax Bond 7/10 at 100.00 AA 7,914,172
Bank Bonds, Series 2000, 5.500%, 7/01/19
7,500 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/10 at 101.00 AAA 8,689,725
Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded to
7/01/10) - MBIA Insured
7,910 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 8,073,816
Revenue Bonds, Las Vegas Monorail Project, First Tier
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
1,700 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aaa 1,726,044
Senior Series 1997C-2, 5.750%, 4/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
2,480 New Hampshire Business Finance Authority, Water Facility 12/04 at 102.00 AAA 2,588,450
Revenue Bonds, Pennichuck Water Works, Inc., Series 1994A,
6.350%, 12/01/19 - AMBAC Insured
1,320 New Hampshire Business Finance Authority, Revenue Bonds, 12/04 at 102.00 AAA 1,378,648
Pennichuck Water Works, Inc., Series 1994B,
6.450%, 12/01/16 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.3%
3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A 3,450,630
Series 1991C, 6.500%, 1/01/09
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
16,000 5.750%, 6/01/32 6/12 at 100.00 BBB 14,298,880
5,000 6.125%, 6/01/42 6/12 at 100.00 BBB 4,283,700
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1%
7,500 Farmington, New Mexico, Pollution Control Revenue Refunding 4/06 at 101.00 BBB 7,528,200
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
27
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.2%
$ 7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- $ 7,013,370
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
County of Nassau, New York, General Obligations, Serial
General Improvement Bonds, Series F:
3,980 7.000%, 3/01/11 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,750,807
4,070 7.000%, 3/01/12 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,858,237
3,925 7.000%, 3/01/15 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,685,155
New York City, New York, General Obligation Bonds, Fiscal
Series 1997G:
1,515 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,712,465
8,485 6.000%, 10/15/26 10/07 at 101.00 A 9,055,022
7,435 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 A 7,865,263
Series 2000E, 5.750%, 5/15/20
9,850 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 10,566,686
Water and Sewer System Revenue Bonds, Fiscal Series
2000A, 5.750%, 6/15/31 - FGIC Insured
5,000 New York City Municipal Water Finance Authority, Water and 6/07 at 101.00 AAA 5,364,000
Sewer System Revenue Bonds, Fiscal Series 1997B,
5.750%, 6/15/29 - FGIC Insured
10,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AA+*** 11,586,200
Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29
(Pre-refunded to 5/15/10)
4,975 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 3,675,082
Special 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, 12/12 at 101.00 Ba2 2,946,660
Special Facilities Revenue Bonds, British Airways PLC,
Series 2002, 7.625%, 12/01/32 (Alternative Minimum Tax)
3,655 Dormitory Authority of the State of New York, Revenue Bonds, 5/08 at 101.00 AA-*** 4,035,486
State University Educational Facilities, Series 1997,
5.125%, 5/15/27 (Pre-refunded to 5/15/08)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1997B:
2,965 5.625%, 2/15/21 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 3,291,180
4,395 5.625%, 2/15/21 2/07 at 102.00 AA- 4,589,303
9,495 New York State Mortgage Agency, Homeowner Mortgage 4/10 at 100.00 Aa1 9,966,807
Revenue Bonds, Series 94, 5.800%, 10/01/20 (Alternative
Minimum Tax)
5,000 New York State Urban Development Corporation, Correctional 1/09 at 101.00 AAA 5,712,300
Facilities Service Contract Revenue Bonds, Series 1999C,
6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.8%
9,010 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 9,367,066
Revenue Bonds, 1998 Trust Agreement, Series 7A,
6.250%, 1/01/29 (Alternative Minimum Tax)
8,310 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 8,720,763
Revenue Bonds, 1998 Trust Agreement, Series 8A,
5.950%, 1/01/27 (Alternative Minimum Tax)
5,970 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 6,156,324
Revenue Bonds, 1998 Trust Agreement, Series 9A,
5.875%, 7/01/31 (Alternative Minimum Tax)
1,385 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,399,501
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6%
3,970 North Dakota Housing Finance Agency, Home Mortgage 7/08 at 102.00 Aaa 4,027,684
Finance Program Bonds, Series 1998B, 5.500%, 7/01/29
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 6.1%
5,000 Akron, Bath, and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 4,847,850
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System Project, Series 1998A, 5.375%, 11/15/18
6,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds, University 7/09 at 101.00 AAA 6,148,560
Hospitals Health System, Inc., Series 1999, 5.500%, 1/15/30 -
AMBAC Insured
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
7,840 6.750%, 4/01/18 4/10 at 101.00 A3 8,638,034
5,000 6.750%, 4/01/22 4/10 at 101.00 A3 5,441,800
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 2,590 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 2,617,480
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
2,650 Ohio, General Obligation Bonds, Higher Education, 5/13 at 100.00 AA+ 2,708,777
Series 2003A, 5.000%, 5/01/22
10,000 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 10,183,800
Revenue Refunding Bonds, Ohio Edison Company Project,
Series 1999C, 5.800%, 6/01/16 (Mandatory put 12/01/04)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.2%
5,000 Oklahoma State Industries Authority, Health System Revenue 8/09 at 101.00 AAA 5,294,200
Refunding Bonds, Baptist Medical Center, Series 1999A,
5.750%, 8/15/29 - MBIA Insured
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B- 9,197,900
Bonds, American Airlines, Inc., Series 2001B,
5.650%, 12/01/35 (Alternative Minimum Tax) (Mandatory
put 12/01/08)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6%
2,460 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,652,151
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,500 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,614,450
Bonds, Series 2002A, 5.500%, 2/01/31 - FSA Insured
4,240 Venango Housing Corporation, Pennsylvania, Multifamily 8/04 at 100.00 AAA 4,258,698
FHA-Insured Mortgage Revenue Bonds, Evergreen Arbors
Project, Series 1990A, 8.000%, 2/01/24
6,750 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 7,727,670
Revenue Bonds, Capital Projects and Equipment Acquisition
Program, Series 1999, 6.150%, 12/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.6%
The Housing Authority of the City of Providence, Rhode Island,
Multifamily Mortgage Revenue Bonds, FHA-Insured Mortgage Loan -
Cathedral Square Apartments II Project, Series 1992:
345 7.375%, 4/01/10 (Alternative Minimum Tax) 4/07 at 100.00 AAA 356,109
1,060 7.400%, 4/01/20 (Alternative Minimum Tax) 4/07 at 100.00 AAA 1,093,252
3,050 7.500%, 10/01/32 (Alternative Minimum Tax) 4/07 at 100.00 AAA 3,145,252
12,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 13,057,520
Hospital Financing Revenue Bonds, Lifespan Obligated Group
Issue, Series 1996, 5.500%, 5/15/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.9%
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 11,009,900
Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,599,225
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 5.750%, 11/01/28
South Carolina Public Service Authority, Revenue Refunding
Bonds, Santee Cooper Electric System, Series 2003A:
3,560 5.000%, 1/01/20 - AMBAC Insured 7/13 at 100.00 AAA 3,674,739
2,125 5.000%, 1/01/21 - AMBAC Insured 7/13 at 100.00 AAA 2,183,863
7,500 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 BBB 6,840,900
Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 5.2%
6,000 Knox County Health, Educational, and Housing Facilities Board, 4/12 at 101.00 Baa2 6,122,940
Tennessee, Hospital Facilities Revenue Bonds, Baptist Health
System of East Tennessee, Inc., Series 2002, 6.500%, 4/15/31
20,415 Knox County Health, Educational, and Housing Facility Board, 1/13 at 75.87 AAA 10,026,215
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A, 0.000%, 1/01/18 - FSA Insured
1,750 Metropolitan Government of Nashville and Davidson County, 5/11 at 100.00 AA 1,769,845
Tennessee, Electric System Revenue Bonds, Series 2001A,
5.125%, 5/15/26
14,385 Metropolitan Government Nashville-Davidson County Health and 11/09 at 101.00 AAA 16,508,514
Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/28
(Pre-refunded to 11/15/09) - AMBAC Insured
29
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.1%
$ 14,900 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB $ 15,754,217
Refunding Bonds, TXU Electric Company Project, Series 2001C,
5.750%, 5/01/36 (Alternative Minimum Tax) (Mandatory
put 11/01/11)
6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, No Opt. Call AAA 6,235,020
Houston Lighting and Power Company Project, Series 1998,
5.050%, 11/01/18 (Alternative Minimum Tax) - AMBAC Insured
8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101.00 BBB 8,272,656
Revenue Bonds, Valero Energy Corporation Project,
Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax)
10,000 Harris County Health Facilities Development Corporation, 5/06 at 102.00 AAA 10,772,800
Texas, Special Facilities Revenue Bonds, Texas Medical
Center Project, Series 1996, 5.900%, 5/15/16 - MBIA Insured
5,000 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 4,959,950
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
12,500 Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 12,954,125
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
5,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 4,991,350
Obligation Bonds, Series 2003, 5.000%, 2/15/28 -
AMBAC 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 6,498,897
2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,382,180
16,305 Matagorda County Navagation District No. 1, Texas, Revenue 5/09 at 101.00 BBB- 15,925,746
Bonds, Reliant Energy, Series 1999B, 5.950%, 5/01/30
(Alternative Minimum Tax)
3,425 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call BBB 3,643,275
Refunding Bonds, TXU Electric Company, Series 2001A,
5.500%, 5/01/22 (Mandatory put 11/01/11)
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 4,932,274
System Revenue Refunding Bonds, Series 2002A,
6.000%, 10/01/21
4,000 State of Texas, General Obligation Bonds, Water Financial 8/09 at 100.00 Aa1 4,131,120
Assistance, State Participation Program, Series 1999C,
5.500%, 8/01/35
6,840 Travis County Health Facilities Development Corporation, 11/09 at 101.00 AAA 7,849,721
Texas, Revenue Bonds, Ascension Health Credit Group,
Series 1999A, 5.875%, 11/15/24 (Pre-refunded to
11/15/09) - AMBAC Insured
2,500 Trinity River Authority of Texas, Pollution Control Revenue No Opt. Call Baa2 2,595,800
Refunding Bonds, TXU Electric Company, Series 2001A,
5.000%, 5/01/27 (Alternative Minimum Tax) (Mandatory
put 11/01/06)
245 The Wood Glen, Texas, Housing Finance Corporation, Mortgage 7/04 at 100.00 AAA 245,867
Revenue Refunding Bonds, FHA-Insured Mortgage Loan-Section 8
Assisted Copperwood I Project, Series 1990A, 7.625%,
1/01/10 - MBIA Insured
The Wood Glen, Texas, Housing Finance Corporation, Mortgage
Revenue Refunding Bonds, FHA-Insured Mortgage Loan - Section 8
Assisted Copperwood II Project, Series 1990C:
105 7.625%, 1/01/10 - MBIA Insured 7/04 at 100.00 AAA 105,273
1,250 7.650%, 7/01/23 - MBIA Insured 7/04 at 100.00 AAA 1,280,000
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
2,200 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 2,421,914
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.0%
6,380 Capital Region Airport Authority, Richmond, Virginia, Airport 7/05 at 102.00 AAA 6,719,097
Revenue Bonds, International Airport Projects, Series 1995A,
5.625%, 7/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.4%
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 9,120,905
Consolidated System Revenue Bonds, Series 2001A,
5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,185,703
Consolidated System Revenue Refunding Bonds, Series 2001C,
5.650%, 7/01/32 (Alternative Minimum Tax) - MBIA Insured
5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,679,842
Consolidated System Revenue Bonds, Series 2002B,
5.250%, 7/01/37 (Alternative Minimum Tax) - AMBAC Insured
10,730 Pierce County School District 320, Sumner, Washington, 12/10 at 100.00 Aaa 12,386,390
Unlimited Tax General Obligation Bonds, Series 2000,
6.250%, 12/01/17 - FSA Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 10,550 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AA+ $ 11,034,034
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 5,903,052
6.000%, 2/01/10 (Alternative Minimum Tax) - MBIA Insured
19,295 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 21,243,023
Terminal 18, Series 1999A, 6.000%, 9/01/29 - MBIA Insured
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 5,470,550
Terminal 18, Series 1999B, 6.000%, 9/01/20 (Alternative
Minimum Tax) - MBIA Insured
5,000 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 5,240,100
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 -
MBIA Insured
8,750 Washington Public Power Supply System, Nuclear Project 3 7/08 at 102.00 Aaa 9,044,525
Revenue Refunding Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,600
Series 2003L, Appalachian Power Company Project,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 7.6%
8,000 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 7,440,720
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 5,196,500
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, No Opt. Call AAA 3,335,670
Sales Tax Revenue Refunding Bonds, Series 1998A,
5.500%, 12/15/19 - MBIA Insured
3,285 Wisconsin Housing and Economic Development Authority, 3/10 at 100.00 AA 3,427,530
Home Ownership Revenue Bonds, Series 2000B,
5.750%, 3/01/22 (Alternative Minimum Tax)
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Aurora Medical Group, Inc., Series 1996:
10,000 5.600%, 11/15/16 - FSA Insured 5/06 at 102.00 AAA 10,672,800
20,000 5.750%, 11/15/25 - FSA Insured 5/06 at 102.00 AAA 20,970,800
------------------------------------------------------------------------------------------------------------------------------------
$ 982,525 Total Long-Term Investments (cost $948,864,832) - 150.5% 1,004,698,154
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6%
3,795 Montgomery County, Tennessee, Public Building Authority, VMIG-1 3,795,000
Pooled Financing Adjustable Revenue Bonds, County Loan Pool
Program, Series 2002, 1.110%, 4/01/32+
------------------------------------------------------------------------------------------------------------------------------------
$ 3,795 Total Short-Term Investments (cost $3,795,000) 3,795,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $952,659,832) - 151.1% 1,008,493,154
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 16,833,607
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.6)% (358,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 667,326,761
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
31
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
$ 3,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/11 at 100.00 AAA $ 3,161,190
Series 2001, 5.250%, 7/01/20
1,725 Maricopa County Industrial Development Authority, Education 7/10 at 102.00 Baa3 1,726,397
Revenue Bonds, Arizona Charter Schools Project I,
Series 2000A, 6.750%, 7/01/29
400 Pima County Industrial Development Authority, Arizona, 5/07 at 105.85 AAA 409,144
FNMA/GNMA Single Family Mortgage Revenue Bonds,
Series 1997A, 7.100%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.8%
5,000 Arkansas Development Finance Authority, Hospital Revenue 2/10 at 100.00 BBB- 5,519,000
Bonds, Washington Regional Medical Center, Series 2000,
7.000%, 2/01/15
3,480 Cabot School District No. 4 of Lonoke County, Arkansas, 8/08 at 100.00 Aaa 3,490,823
General Obligation Refunding Bonds, Series 2003,
5.000%, 2/01/27 - AMBAC Insured
2,865 University of Arkansas, Fayetteville, Various Facilities 12/12 at 100.00 Aaa 3,089,902
Revenue Bonds, Series 2002, 5.500%, 12/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.9%
3,225 California Health Facilities Financing Authority, Revenue Bonds, 3/13 at 100.00 A 3,075,747
Adventist Health System/West, Series 2003A, 5.000%, 3/01/33
1,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 1,084,270
Bonds, Series 2002A, 5.750%, 5/01/17
2,500 Los Angeles Community Redevelopment Agency, California, 7/04 at 100.00 BBB*** 2,515,200
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
Department of Water and Power of Los Angeles, California,
Electric Plant Revenue Bonds, Second Issue of 1993:
490 4.750%, 10/15/20 10/04 at 101.00 AA-*** 491,593
5,510 4.750%, 10/15/20 10/04 at 101.00 Aaa 5,631,000
995 Department of Water and Power of Los Angeles, California, 8/04 at 102.00 AA-*** 1,014,542
Electric Plant Revenue Bonds, Issue of 1994, 5.375%, 2/15/34
Orange County, California, Recovery Certificates of Participation,
Series 1996A:
13,100 5.875%, 7/01/19 - MBIA Insured 7/06 at 102.00 AAA 14,313,846
690 6.000%, 7/01/26 - MBIA Insured 7/06 at 102.00 AAA 748,126
5,000 San Joaquin Hills Transportation Corridor Agency Toll Road 1/14 at 102.00 AAA 4,594,400
Refunding Revenue Bonds, California, Series 1997A,
0.000%, 1/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.0%
3,000 Broomfield, Colorado, Master Facilities Lease Purchase 12/09 at 100.00 AAA 3,241,680
Agreement, Certificates of Participation, Series 1999,
5.750%, 12/01/24 - AMBAC Insured
6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding 12/12 at 100.00 Aaa 6,695,096
and Improvement Bonds, Series 2002A, 5.500%, 12/01/22 -
AMBAC Insured
11,465 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 12,528,952
Refunding Bonds, Series 2000A, 6.000%, 11/15/18 (Alternative
Minimum Tax) - AMBAC Insured
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 4,654,000
Bonds, Series 2000A, 0.000%, 9/01/28 - MBIA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 6.2%
$ 15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA $ 16,981,800
Series 2000A, 5.600%, 1/01/30 (Pre-refunded to
1/01/10) - FGIC Insured
14,330 Fulton County Facilities Corporation, Georgia, Certificates 11/10 at 101.00 AAA 15,558,798
of Participation, Public Purpose Project, Series 1999,
5.500%, 11/01/18 - AMBAC Insured
8,000 Georgia, General Obligation Bonds, Series 1995C, 7.250%, 7/01/08 No Opt. Call AAA 9,406,160
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.3%
6,500 Chicago, Illinois, Gas Supply Revenue Refunding Bonds, 6/05 at 102.00 Aa2 6,843,655
Peoples Gas Light and Coke Company Project, Series 1995A,
6.100%, 6/01/25
5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 1/09 at 101.00 AAA 5,224,380
5.000%, 1/01/28 - MBIA Insured
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,521,444
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,960,640
5.000%, 1/01/33 - AMBAC Insured
5,210 Illinois Housing Development Authority, Section 8 Elderly 7/04 at 101.00 A 5,253,868
Housing Revenue Bonds, Garden House of River Oaks West
Development, Series 1992A, 6.875%, 1/01/20
38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/10 at 100.00 AAA 40,253,018
Series 2000, 5.500%, 4/01/25 - MBIA Insured
1,975 Lake County Community High School District No. 127, Grayslake, No Opt. Call AAA 2,694,315
Illinois, General Obligation Bonds, Series 2002A,
9.000%, 2/01/13 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Bonds, Series 2002A:
3,250 0.000%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 1,655,095
2,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 2,262,214
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8%
4,695 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 4,888,575
Revenue Bonds, Butler University Project, Series 2001,
5.500%, 2/01/26 - MBIA Insured
17,449 Indianapolis Airport Authority, Indiana, Specialty Facility 11/05 at 102.00 N/R 5,191,204
Revenue Bonds, United Air Lines, Inc., Indianapolis
Maintenance Center Project, Series 1995A, 6.500%, 11/15/31
(Alternative Minimum Tax)#
2,000 Petersburg, Indiana, Pollution Control Revenue Refunding 8/11 at 102.00 Baa2 2,024,600
Bonds, Indianapolis Power and Light Company, Series 1991,
5.750%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.6%
4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, No Opt. Call N/R 4,134,789
IPSCO Project, Series 1997, 6.000%, 6/01/27 (Alternative
Minimum Tax) (Mandatory put 6/01/07)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6%
Jefferson County, Kentucky, School District Finance Corporation,
School Building Revenue Bonds, Series 2000A:
3,045 5.250%, 7/01/17 - FSA Insured 1/10 at 101.00 AAA 3,235,647
7,490 5.250%, 7/01/20 - FSA Insured 1/10 at 101.00 AAA 7,925,094
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.1%
7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 AAA 7,354,494
Community Development Authority, Revenue Bonds, Baton
Rouge Community College Facilities Corporation, Series 2002,
5.000%, 12/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.6%
Frederick County, Maryland, General Obligation Public Facilities
Bonds, Series 2002:
3,710 5.000%, 11/01/18 11/12 at 101.00 AA 3,923,251
3,890 5.000%, 11/01/19 11/12 at 101.00 AA 4,090,841
2,500 Maryland Department of Transportation, County Transportation No Opt. Call AA 2,814,950
Revenue Bonds, Series 2002, 5.500%, 2/01/16
33
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.3%
$ 5,250 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA $ 5,318,565
Series 2000A, 5.250%, 7/01/30
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 10,730,400
Bonds, Series 2000A, 5.750%, 8/01/39 - FGIC Insured
6,195 University of Massachusetts Building Authority, Facilities 11/10 at 100.00 AAA 6,284,580
Revenue Bonds, Senior Series 2000A, Commonwealth
Guaranteed, 5.125%, 11/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.5%
6,635 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 101.00 AAA 7,627,994
Bonds, Series 2001A, 5.750%, 7/01/28 (Pre-refunded to
7/01/11) - FGIC Insured
2,090 City of Grand Rapids Building Authority, County of Kent, 8/10 at 100.00 AAA 2,247,335
Michigan, General Obligation Limited Tax Bonds, Series 2000,
5.375%, 8/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 8.2%
13,675 State of Minnesota, General Obligation Bonds, Series 2000, 11/10 at 100.00 AAA 14,609,550
5.125%, 11/01/16
4,110 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 4,356,271
Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative
Minimum Tax)
30,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 32,276,700
Health Care System Revenue Bonds, Fairview Health Services,
Series 2000A, 6.375%, 11/15/29
3,390 The Housing and Redevelopment Authority of the City of Saint 11/15 at 103.00 AAA 4,128,952
Paul, Minnesota, Sales Tax Revenue Refunding Bonds, Civic
Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.2%
5,900 Mississippi Business Finance Corporation, Pollution Control 10/04 at 101.00 BBB- 5,929,441
Revenue Refunding Bonds, System Energy Resources, Inc.
Project, Series 1998, 5.875%, 4/01/22
1,830 Mississippi Home Corporation, GNMA Mortgage-Backed 7/07 at 105.00 Aaa 1,879,282
Securities Single Family Mortgage Revenue Bonds,
Series 1997D-5, 6.750%, 7/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.8%
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier Series 2000:
8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 2,529,090
5,315 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,485,861
21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 21,434,910
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.0%
650 Camden County Pollution Control Financing Authority, New 6/04 at 100.00 B2 626,503
Jersey, Solid Waste Disposal and Resource Recovery System
Revenue Bonds, Series 1991D, 7.250%, 12/01/10
21,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AA-*** 23,861,250
System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded
to 6/15/10)
3,165 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 BBB 2,711,582
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.9%
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 Aa3 6,088,530
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21
5,675 Regents of the University of New Mexico, System Revenue No Opt. Call AA 6,617,334
Refunding Bonds, Series 1992A, 6.250%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 24.7%
5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 5,069,900
Revenue Bonds, Series 1998A, 5.250%, 12/01/26 -
MBIA Insured
11,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- 10,962,600
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33
21,715 New York City, New York, General Obligation Bonds, Fiscal 3/06 at 101.50 A 23,133,641
Series 1996I, 5.875%, 3/15/18
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
$ 1,000 5.000%, 8/01/17 8/12 at 100.00 A $ 1,021,280
10,500 5.750%, 8/01/18 8/12 at 100.00 A 11,279,520
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 A 5,410,400
Series 2003A, 5.750%, 8/01/16
New York City, New York, General Obligation Bonds, Fiscal
Series 1997H:
80 6.125%, 8/01/25 (Pre-refunded to 8/01/07) 8/07 at 101.00 A*** 90,244
9,920 6.125%, 8/01/25 8/07 at 101.00 A 10,760,522
17,870 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AA+*** 20,401,286
Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded to 8/15/09)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1997A:
19,290 5.750%, 2/15/27 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 21,477,100
710 5.750%, 2/15/27 2/07 at 102.00 AA- 730,491
4,500 New York State Energy Research and Development Authority, 7/04 at 101.50 AAA 4,592,340
Gas Facilities Revenue Bonds, The Brooklyn Union Gas
Company Project, Series 1989C, 5.600%, 6/01/25 (Alternative
Minimum Tax) - MBIA Insured
3,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 3,190,380
Secured Hospital Revenue Bonds, Brookdale Hospital Medical
Center, Series 1995A, 6.850%, 2/15/17 (Pre-refunded
to 2/15/05)
4,785 New York State Medical Care Facilities Finance Agency, 11/05 at 102.00 Aa1 5,148,516
Secured Mortgage Revenue Bonds, Brookdale Family Care
Centers, Inc., Series 1995A, 6.375%, 11/15/19
10,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 10,731,100
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured
5,400 New York Tobacco Settlement Financing Corporation, Tobacco 6/10 at 100.00 AA- 5,733,180
Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
7,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 7,782,040
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded to 1/01/22)
20,500 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 BBB 20,617,875
Series 1999-1, 6.250%, 7/15/34
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.2%
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 7,913,400
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 4.3%
22,905 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 23,826,926
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 - MBIA Insured 8/10 at 100.00 AAA 2,469,591
2,450 5.750%, 8/01/19 - MBIA Insured 8/10 at 100.00 AAA 2,719,255
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.7%
16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A3 18,165,570
Kettering Medical Center, Series 1999, 6.300%, 4/01/12
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.0%
300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 279,924
Bonds, American Airlines, Inc., Series 2000B, 6.000%, 6/01/35
(Alternative Minimum Tax) (Mandatory put 12/01/08)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5%
5,000 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 1/13 at 100.00 AAA 5,217,150
5.250%, 7/01/22 - MBIA Insured
Portland, Oregon, Water System Revenue Bonds, Series 2000A:
6,780 5.375%, 8/01/18 8/10 at 100.00 Aa1 7,251,346
3,880 5.500%, 8/01/20 8/10 at 100.00 Aa1 4,215,659
35
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.4%
$ 5,000 Delaware County Industrial Development Authority, Pennsylvania, 1/08 at 102.00 BBB $ 5,153,100
Resource Recovery Revenue Refunding Bonds, Series 1997A,
6.200%, 7/01/19
15,000 Delaware River Port Authority, New Jersey and Pennsylvania, No Opt. Call AAA 16,357,350
Revenue Refunding Bonds, Series 1998B, 5.250%, 1/01/08 -
AMBAC Insured
15,050 Pennsylvania General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 16,025,390
5.000%, 9/15/14
5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100.00 AAA 5,739,200
Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30
(Pre-refunded to 12/15/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.9%
8,105 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 7,639,935
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA*** 11,806,750
Revenue Bonds, Series 2003, 4.500%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.4%
24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 25,560,928
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
1,640 Three Rivers Solid Waste Authority, South Carolina, Solid Waste 1/07 at 102.00 AAA 1,672,177
Disposal Facilities Revenue Bonds, Series 1997,
5.300%, 1/01/27 - MBIA Insured
10,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 9,121,200
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.9%
5,000 The Health, Educational, and Housing Facilities Board of 7/13 at 100.00 AA 4,894,050
Knox County, Tennessee, Hospital Facilities Revenue Bonds,
East Tennessee Children's Hospital, Series 2003A,
5.000%, 7/01/23 - RAAI Insured
1,200 Metropolitan Government Nashville-Davidson County Health 7/04 at 101.00 N/R 1,179,720
and Educational Facilities Board, Tennessee, Revenue
Refunding Bonds, Blakeford at Green Hills, Series 1998,
5.650%, 7/01/16
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 26.9%
5,000 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 6/04 at 100.00 CCC 3,621,750
Bonds, American Airlines, Inc. Project, Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
Arlington Independent School District, Tarrant County, Texas,
General Obligation Bonds, Series 1995:
3,710 0.000%, 2/15/12 2/05 at 67.33 Aaa 2,462,401
3,710 0.000%, 2/15/13 2/05 at 62.94 Aaa 2,302,018
12,250 Austin, Texas, Hotel Occupancy Tax Subordinate Lien Revenue 11/09 at 100.00 AAA 13,196,680
Refunding Bonds, Series 1999, 5.800%, 11/15/29 -
AMBAC Insured
14,200 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB 15,014,086
Refunding Bonds, TXU Electric Company Project, Series 2001C,
5.750%, 5/01/36 (Alternative Minimum Tax) (Mandatory
put 11/01/11)
Brownsville Independent School District, Cameron County, Texas,
General Obligation Bonds, Series 1999:
5,015 5.625%, 8/15/25 8/09 at 100.00 AAA 5,298,448
8,825 5.625%, 8/15/29 8/09 at 100.00 AAA 9,293,166
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
17,325 5.400%, 2/15/18 2/10 at 100.00 AAA 18,563,045
10,000 5.650%, 2/15/19 2/10 at 100.00 AAA 10,936,200
6,880 5.700%, 2/15/20 2/10 at 100.00 AAA 7,541,443
8,020 5.700%, 2/15/21 2/10 at 100.00 AAA 8,744,928
6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/09 at 101.00 CCC 3,926,640
Corporation, Texas, Revenue Bonds, American Airlines, Inc.,
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
11,750 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC 10,279,135
Corporation, Texas, Revenue Refunding Bonds, American
Airlines, Inc., Series 2000C, 6.150%, 5/01/29 (Alternative
Minimum Tax) (Mandatory put 11/01/07)
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 21,500 Houston, Texas, Airport System, Subordinate Lien Revenue 7/10 at 100.00 AAA $ 22,281,095
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
22,500 Houston, Texas, Water and Sewer System, Junior Lien Revenue 12/10 at 100.00 AAA 22,811,400
Refunding Bonds, Series 2000B, 5.250%, 12/01/30 -
FGIC Insured
1,250 Houston, Texas, Water and Sewer System, Junior Lien Revenue 12/11 at 100.00 AAA 1,284,888
Refunding Bonds, Series 2001A, 5.000%, 12/01/20 -
FSA Insured
15,000 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 17,017,350
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded to 8/15/09)
4,259 Texas General Services Commission, Participation Interests, 9/04 at 100.50 A 4,328,717
Series 1992, 7.500%, 9/01/22
3,970 City of Wichita Falls, Wichita County, Texas, Water and Sewer 8/11 at 100.00 AAA 4,056,903
System Priority Lien Revenue Bonds, Series 2001,
5.000%, 8/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 16.0%
5,500 Public Utility District No. 1 of Clark County, Washington, 1/11 at 100.00 AAA 5,719,065
Generating System Revenue Refunding Bonds, Series 2000,
5.125%, 1/01/20 - FSA Insured
2,755 Cowlitz County, Washington, Special Sewer Revenue Refunding No Opt. Call AAA 3,076,123
Bonds, Series 2002, CSOB Wastewater Treatment Facilities,
5.500%, 11/01/16 - FGIC Insured
10,000 Energy Northwest, Washington, Electric Revenue Refunding 7/11 at 101.00 AAA 10,816,400
Bonds, 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 AAA 2,529,200
5.000%, 1/01/23 - FGIC Insured
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 35,286,069
5.625%, 2/01/30 - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,171,149
5.625%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured
Seattle, Washington, General Obligation Refunding and
Improvement Bonds, Series 2002:
6,165 4.400%, 12/01/19 12/12 at 100.00 AAA 5,971,974
6,445 4.500%, 12/01/20 12/12 at 100.00 AAA 6,257,644
City of Tacoma, Washington, Electric System Revenue Refunding
Bonds, Series 2001A:
6,630 5.750%, 1/01/17 - FSA Insured 1/11 at 101.00 AAA 7,323,498
3,500 5.750%, 1/01/18 - FSA Insured 1/11 at 101.00 AAA 3,860,500
9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/12 at 100.00 AAA 9,180,270
Series 2002C, 5.000%, 1/01/21 - FSA Insured
7,890 Washington State Higher Education Facilities Authority, Revenue 11/09 at 101.00 AA 8,237,239
Bonds, Pacific Lutheran University, Series 1999,
5.950%, 11/01/29 - RAAI Insured
3,520 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,551,328
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.2%
1,250 Wisconsin Health and Educational Facilities Authority, Revenue 3/08 at 101.00 N/R 1,100,738
Bonds, United Lutheran Program for the Aging, Inc., Series
1998, 5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4%
2,800 Jackson National Rural Utilities Cooperative Financing 5/07 at 101.00 A 2,884,891
Corporation, Wyoming, Guaranteed Gas Supply Revenue
Bonds, Lower Valley Power and Light, Inc. Project,
Series 1997B, 5.875%, 5/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,030,413 Total Long-Term Investments (cost $988,365,172) - 153.1% 1,038,195,287
=============-----------------------------------------------------------------------------------------------------------------------
37
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7%
$ 4,900 Chester County Industrial Development Authority, Pennsylvania, VMIG-1 $ 4,900,000
Archdiocese of Philadelphia, Variable Rate Demand Revenue
Bonds, Series 2001, 1.100%, 7/01/31+
------------------------------------------------------------------------------------------------------------------------------------
$ 4,900 Total Short-Term Investments (cost $4,900,000) 4,900,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $993,265,172) - 153.8% 1,043,095,287
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 15,012,765
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.0)% (380,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 678,108,052
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
38
Nuveen Dividend Advantage Municipal Fund (NAD)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2%
$ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 1,466,235
Bonds, Series 2000, 5.750%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.7%
15,000 Maricopa County, Arizona, Pollution Control Corporation, Pollution No Opt. Call BB+ 15,609,450
Control Revenue Remarketing Bonds, Series 1994A, El Paso
Electric Company, 6.375%, 7/01/14 (Mandatory put 8/01/05)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.1%
2,475 Los Angeles Department of Water and Power, California, Power 7/06 at 100.00 AA- 2,561,254
System Revenue Bonds, Series 2001A-3, 5.375%, 7/01/20
9,375 Sacramento County Sanitation District Financing Authority, 12/05 at 101.00 AA 9,954,094
California, Revenue Bonds, Series 2000A, 5.875%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.7%
10,250 Denver City and County, Colorado, Airport System Revenue Bonds, 11/06 at 101.00 AAA 10,569,390
Series 1996D, 5.500%, 11/15/25 - MBIA Insured
1,475 City and County of Denver, Colorado, Multifamily Housing Revenue 10/07 at 102.00 AAA 1,507,229
Bonds, FHA-Insured Mortgage Loan - The Boston Lofts Project,
Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax)
3,205 City and County of Denver, Colorado, Airport Special Facilities 1/09 at 101.00 AAA 3,523,128
Revenue Bonds, Rental Car Projects, Series 1999A,
6.000%, 1/01/12 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5%
Connecticut Development Authority, Health Facility Revenue
Refunding Bonds, Alzheimer's Resource Center of Connecticut,
Inc. Project, Series 1994A:
290 6.875%, 8/15/04 No Opt. Call N/R 290,090
2,700 7.125%, 8/15/14 8/04 at 102.00 N/R 2,671,569
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.7%
1,630 Florida Housing Finance Agency, Housing Revenue Bonds, Mar 12/07 at 102.00 AAA 1,704,573
Lago Village Apartments Project, Series 1997F,
5.800%, 12/01/17 (Alternative Minimum Tax) - AMBAC Insured
13,625 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 14,049,555
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP Project, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.4%
4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/10 at 102.00 AA*** 4,615,080
Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded to 4/01/10)
3,500 Gainesville, Hall County Hospital Authority, Georgia, Revenue 5/09 at 101.00 AAA 3,580,815
Anticipation Certificates, Northeast Georgia Health Services,
Inc. Project, Series 1999, 5.500%, 5/15/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.6%
890 Idaho Housing and Finance Association, Single Family Mortgage 7/09 at 101.00 Aa2 926,081
Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax)
1,185 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 1,247,390
Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax)
1,045 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 1,067,363
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
39
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 34.3%
$ 3,635 Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, 12/09 at 102.00 BBB+ $ 3,811,734
Series 1999, 5.750%, 12/01/12
22,750 Chicago, Illinois, General Obligation Refunding Bonds, Emergency No Opt. Call AAA 24,830,260
Telephone System, Series 1999, 5.500%, 1/01/23 - FGIC Insured
7,250 Chicago School Reform Board of Trustees of the Chicago Board No Opt. Call AAA 7,845,153
of Education, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1999A, 5.500%, 12/01/26 -
FGIC Insured
2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,521,444
Series 1993, 5.375%, 1/01/14 - AMBAC Insured
Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue
Bonds, Archer Court Apartments, Series 1999A:
920 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 960,609
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,228,561
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,951,392
4,940 Chicago, Illinois, Wastewater Transmission Revenue Bonds, 1/06 at 102.00 AAA 4,968,356
Series 1995, 5.125%, 1/01/25 - FGIC Insured
5,100 Chicago, Illinois, Water Revenue Bonds, Series 1997, 11/07 at 102.00 AAA 5,163,138
5.250%, 11/01/27 - FGIC Insured
24,835 Illinois Development Finance Authority, Revenue Bonds, 9/07 at 102.00 AAA 26,051,915
Presbyterian Home of Lake Forest Project, Series 1999,
5.625%, 9/01/31 - FSA Insured
3,935 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 2,372,215
Program Revenue Bonds, Round Lake Community Unit School
District 116 Project, Series 1999, 0.000%, 1/01/15 -
MBIA Insured
2,750 Illinois Educational Facilities Authority, Revenue Bonds, MJH 9/09 at 100.00 AAA 2,940,822
Education Assistance Illinois LLC, Series 1999D,
5.450%, 9/01/14 - AMBAC Insured
Illinois Health Facilities Authority, Revenue Bonds, Loyola
University Health System, Series 1997A:
1,600 5.000%, 7/01/24 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,745,376
5,400 5.000%, 7/01/24 - MBIA Insured 7/07 at 101.00 AAA 5,402,052
5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 2/07 at 102.00 A 5,665,351
Lincoln Health Center, Series 1996B, 5.500%, 2/15/16
17,280 Illinois Health Facilities Authority, Converted Adjustable Rate 10/07 at 102.00 AAA 19,644,077
Revenue Bonds, Highland Park Hospital, Series 1991A,
6.000%, 10/01/15 (Pre-refunded to 10/01/07) - FGIC Insured
9,940 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 10,709,654
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/04 at 100.00 BB+ 7,245,652
Proctor Community Hospital Project, Series 1991,
7.375%, 1/01/23
5,000 Community Unit School District No. 300, Counties of Kane, 12/11 at 100.00 AAA 5,398,800
McHenry, Cook, and DeKalb, Illinois, General Obligation
Bonds, Series 2000, 5.500%, 12/01/19 - MBIA Insured
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
9,750 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 3,640,455
13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 4,534,010
20,500 Metropolitan Pier and Exposition Authority, Illinois, McCormick 12/09 at 101.00 AAA 21,531,560
Place Expansion Project Bonds, Series 1999A,
5.500%, 12/15/24 - FGIC 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 25,685,553
3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 3,933,545
4,500 Will County School District No. 122, New Lenox, Illinois, No Opt. Call Aaa 2,186,280
General Obligation Bonds, Series 2000B, 0.000%, 11/01/18 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.8%
8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 8,223,680
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/26 - MBIA Insured
8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 9,881,506
Bonds, Charity Obligated Group, Series 1999D,
5.500%, 11/15/24 (Pre-refunded to 11/15/09) - MBIA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, 6/09 at 101.00 Aa3 $ 4,387,014
Park Tudor Foundation, Inc., Project, Series 1999,
5.700%, 6/01/24
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.0%
11,135 Iowa Higher Education Loan Authority, Private College Facility 10/10 at 102.00 N/R 11,762,012
Revenue Bonds, Waldorf College Project, Series 1999,
7.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.6%
3,825 Wichita, Kansas, Water and Sewer Utility Revenue Bonds, 10/06 at 101.00 AAA 3,586,856
Series 1999, 4.000%, 10/01/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 5.6%
3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101.00 Aa3 3,331,061
School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20
Kentucky Economic Development Finance Authority, Hospital
System Revenue Refunding and Improvement Bonds,
Appalachian Regional Healthcare, Inc. Project, Series 1997:
1,850 5.850%, 10/01/17 4/08 at 102.00 BB- 1,742,182
5,000 5.875%, 10/01/22 4/08 at 102.00 BB- 4,511,700
Newport Public Properties Corporation, Kentucky, First Mortgage
Revenue Bonds, Public Parking and Plaza Project, Series 2000A:
17,240 8.375%, 1/01/18 7/10 at 104.00 N/R 16,536,608
3,875 8.375%, 1/01/27 7/10 at 104.00 N/R 3,670,904
3,000 8.500%, 1/01/27 7/10 at 104.00 N/R 2,882,700
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
2,245 City of Lafayette, State of Louisiana, Public Improvement Sales 5/10 at 101.50 AAA 2,377,388
Tax Bonds, Series 2000B, 5.625%, 5/01/25 - FGIC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,916,635
Community Development Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds - Sharlo Apartments
Project, Series 2002A, 6.500%, 6/20/37
9,545 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 8,252,416
Settlement Asset-Backed Bonds, Series 2001B,
5.500%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.9%
5,000 Maryland Community Development Administration, Residential 9/09 at 100.00 Aa2 5,189,800
Revenue Bonds, Series 2000G, 5.950%, 9/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.7%
1,500 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R 1,472,895
Massachusetts, Subordinate Revenue Bonds, Crosstown
Center Project, Series 2002, 8.000%, 9/01/35 (Alternative
Minimum Tax)
785 Massachusetts Port Authority, Special Facilities Revenue 9/06 at 102.00 AAA 819,391
Bonds, US Airways Group, Inc., Series 1996A, 5.875%, 9/01/23
(Alternative Minimum Tax) - MBIA Insured
7,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/07 at 102.00 AAA 7,348,880
BOSFUEL Corporation, Series 1997, 5.500%, 7/01/18
(Alternative Minimum Tax) - MBIA Insured
620 Massachusetts Housing Finance Agency, Single Family Housing 12/04 at 102.00 AA 636,101
Revenue Bonds, Series 32, 6.600%, 12/01/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
Detroit, Michigan, Water Supply System Senior Lien Revenue
Bonds, Series 2001A:
2,565 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 2,848,176
2,435 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 2,479,195
4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 4,187,720
Metropolitan Airport, Series 1998A, 5.375%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
41
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.7%
$ 2,250 Minneapolis-St. Paul Metropolitan Airports Commission, 4/11 at 101.00 N/R $ 2,052,675
Minnesota, Special Facilities Revenue Bonds, Northwest
Airlines, Inc. Project, Series 2001A, 7.000%, 4/01/25
(Alternative Minimum Tax)
2,170 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA+ 2,257,234
Bonds, Series 1998H-1, 5.650%, 7/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.4%
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
4,370 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 4,531,428
3,670 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 3,728,059
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.6%
2,330 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 2,438,951
Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax)
1,000 Montana Higher Education Student Assistance Corporation, 12/09 at 100.00 A2 1,036,500
Student Loan Revenue Bonds, Subordinate Series 1999B,
6.400%, 12/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3%
1,900 Nebraska Higher Education Loan Program Incorporated, Senior No Opt. Call AAA 2,022,645
Subordinate Bonds, Series 1993A-5A, 6.200%, 6/01/13
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.5%
6,000 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 2,836,440
Revenue Bonds, Las Vegas Monorail Project, First Tier Series
2000, 0.000%, 1/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5%
2,910 New Hampshire Housing Finance Agency, Single Family 7/05 at 102.00 Aa2 2,925,714
Mortgage Acquisition Revenue Bonds, Series 1995D,
6.550%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.9%
3,150 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 3,320,888
Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13
(Alternative Minimum Tax) - MBIA Insured
2,000 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 2,043,600
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center Issue, Series 2001, 4.800%, 8/01/21 - AMBAC Insured
15,600 New Jersey Economic Development Authority, Solid Waste No Opt. Call N/R 9,145,500
Facilities Revenue Bonds, Bridgewater Resources, Inc. Project,
Series 1999B, 8.250%, 6/01/19 (Alternative Minimum Tax)#
475 New Jersey Economic Development Authority, Solid Waste No Opt. Call N/R 278,469
Revenue Bonds, Bridgewater Resources, Inc. Project,
Series 2003C, 0.000%, 6/30/05#
4,130 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,599,911
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- 4,507,080
System Bonds, Series 1999A, 5.750%, 6/15/18
10,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 10,958,900
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.900%, 12/01/17 (Alternative Minimum Tax) - MBIA Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
10,000 5.750%, 6/01/32 6/12 at 100.00 BBB 8,936,800
3,165 6.125%, 6/01/42 6/12 at 100.00 BBB 2,711,582
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.7%
1,940 Cattaraugus County Industrial Development Agency, New York, No Opt. Call N/R 1,116,974
Revenue Bonds, Laidlaw Energy and Environmental, Inc.
Project, Series 1999A, 8.500%, 7/01/21 (Alternative
Minimum Tax)##
5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 5,078,050
Revenue Bonds, Series 1998A, 5.250%, 12/01/26 - FSA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
County of Nassau, New York, General Obligations, Serial General
Improvement Bonds, Series B:
$ 4,005 5.250%, 6/01/19 (Pre-refunded to 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA $ 4,502,141
7,005 5.250%, 6/01/20 (Pre-refunded to 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 7,874,531
7,005 5.250%, 6/01/21 - AMBAC Insured 6/09 at 102.00 AAA 7,477,487
2,000 New York City, New York, General Obligation Bonds, Fiscal 2/08 at 101.00 AAA 2,130,220
Series 1998E, 5.250%, 8/01/14 - AMBAC Insured
14,000 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 14,935,340
Series 1998F, 5.375%, 8/01/19 - MBIA Insured
12,350 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AA+*** 13,969,826
Tax Secured Bonds, Fiscal Series 2000C, 5.500%, 11/01/29
(Pre-refunded to 5/01/10)
10,000 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AA+*** 11,416,500
Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24
(Pre-refunded to 8/15/09)
4,600 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 4,842,420
Revenue Bonds, Mental Health Services Facilities,
Series 1996E, 5.250%, 2/15/18 - AMBAC Insured
2,170 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AA 2,279,216
Bonds, Franciscan Health Partnership Obligated Group - Frances
Shervier Home and Hospital, Series 1997, 5.500%, 7/01/17 -
RAAI Insured
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1996B:
4,305 5.125%, 8/15/21 (Pre-refunded to 2/15/06) - MBIA Insured 2/06 at 100.00 AAA 4,637,518
165 5.125%, 8/15/21 - MBIA Insured 2/06 at 102.00 AAA 169,787
7,500 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 7,862,625
Revenue Refunding Bonds, Wyckoff Heights Medical Center,
Series 1998H, 5.300%, 8/15/21 - MBIA Insured
10,000 Dormitory Authority of the State of New York, Third General 7/09 at 101.00 AAA 11,281,900
Resolution Consolidated Revenue Bonds, City University
System, Series 1999-1, 5.500%, 7/01/29 (Pre-refunded
to 7/01/09) - FSA Insured
2,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 2,230,480
Resolution Consolidated Revenue Bonds, City University
System, Series 1997-1, 5.375%, 7/01/24 (Pre-refunded
to 1/01/08) - FSA Insured
7,500 New York State Urban Development Corporation, Correctional 1/06 at 102.00 AAA 8,083,725
Facilities Revenue Bonds, Series 1995-6, 5.375%, 1/01/25
(Pre-refunded to 1/01/06) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
3,000 County of Wake, North Carolina, General Obligation School 2/11 at 102.00 AAA 3,242,490
Bonds, Series 2001B, 5.250%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.4%
2,300 Amherst Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 2,379,925
Obligation Unlimited Tax School Improvement Bonds,
Series 2001, 5.125%, 12/01/21 - FGIC Insured
3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/05 at 103.00 Aa 3,677,457
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
5,650 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 5,253,766
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
13,500 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 13,560,615
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
1,115 Warren County, Ohio, Special Assessment General Obligation 12/07 at 101.00 Aa2 1,211,581
Bonds, Waterstone Boulevard, Series 1997, 5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4%
2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aaa 2,557,695
Redevelopment Bonds, Series 2000A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.0%
3,480 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 B 3,894,503
Revenue Bonds, West Penn Allegheny Health System,
Series 2000B, 9.250%, 11/15/22
2,180 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,350,280
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
43
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 18,900 City of Philadelphia, Pennsylvania, Airport Revenue Refunding 6/08 at 102.00 AAA $ 19,712,889
Bonds, Philadelphia Airport System, Series 1998A,
5.500%, 6/15/18 (Alternative Minimum Tax) - FGIC Insured
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,491,367
Bonds, Series 2002B, 5.625%, 8/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.0%
12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA*** 11,806,750
Revenue Bonds, Series 2003, 4.500%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.8%
2,015 Central Falls, Rhode Island, General Obligation School Bonds, 5/09 at 102.00 AA 2,233,567
Series 1999, 6.250%, 5/15/20 - RAAI Insured
3,500 Providence Redevelopment Agency, Rhode Island, Revenue 4/10 at 101.00 Aaa 3,755,465
Bonds, Public Safety and Municipal Building Projects,
Series 1999A, 5.750%, 4/01/29 - AMBAC Insured
12,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 10,603,200
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.2%
5,260 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 5,633,250
Revenue Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative
Minimum Tax) - AMBAC Insured
2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 2,444,570
Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured
2,920 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 3,011,192
Program Bonds, Issue 2000-1, 6.375%, 7/01/25 (Alternative
Minimum Tax)
1,620 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 1,682,354
Program Bonds, Issue 2000-2B, 6.250%, 1/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.4%
1,000 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 6/04 at 100.00 CCC 724,350
Bonds, American Airlines, Inc. Project, Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
Austin, Texas, Airport System Prior Lien Revenue Bonds,
Series 1995A:
1,660 6.125%, 11/15/25 (Alternative Minimum Tax) 11/05 at 102.00 AAA 1,794,194
(Pre-refunded to 11/15/05) - MBIA Insured
8,340 6.125%, 11/15/25 (Alternative Minimum Tax) - MBIA Insured 11/05 at 102.00 AAA 8,914,292
2,560 Brazos River Authority, Texas, Pollution Control Revenue Refunding 4/13 at 101.00 BBB 2,925,594
Bonds, TXU Electric Company Project, 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 5,308,696
County, Texas, School Building Unlimited Tax Bonds,
Series 1999, 6.000%, 2/15/20 (Pre-refunded to 2/15/09)
Coppell Independent School District, Dallas County, Texas,
Unlimited Tax School Building and Refunding Bonds, Series 1999:
5,130 0.000%, 8/15/20 8/09 at 52.47 AAA 2,091,655
7,000 0.000%, 8/15/21 8/09 at 49.48 AAA 2,664,830
7,345 0.000%, 8/15/23 8/09 at 44.01 AAA 2,426,347
7,000 0.000%, 8/15/24 8/09 at 41.50 AAA 2,153,410
7,350 0.000%, 8/15/25 8/09 at 39.14 AAA 2,136,498
7,000 0.000%, 8/15/26 8/09 at 36.91 AAA 1,912,540
2,000 Dallas-Ft. Worth International Airport Facility Improvement 11/05 at 100.00 CCC 1,895,100
Corporation, Texas, Revenue Refunding Bonds, American
Airlines, Inc., Series 2000B, 6.050%, 5/01/29 (Alternative
Minimum Tax) (Mandatory put 11/01/05)
6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC 5,248,920
Corporation, Texas, Revenue Refunding Bonds, American
Airlines, Inc., Series 2000C, 6.150%, 5/01/29 (Alternative
Minimum Tax) (Mandatory put 11/01/07)
Harris County Health Facilities Development Corporation, Texas,
Revenue Bonds, Christus Health, Series 1999A:
12,000 5.375%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 12,257,880
11,000 5.375%, 7/01/29 - MBIA Insured 7/09 at 101.00 AAA 11,195,470
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,500 Jefferson County, Texas, Certificates of Obligation, Series 2000, 8/10 at 100.00 AAA $ 2,878,700
6.000%, 8/01/25 (Pre-refunded to 8/01/10) - FSA Insured
4,245 Laredo Independent School District, Webb County, Texas, 8/09 at 100.00 AAA 4,339,154
Unlimited Tax School Building Bonds, Series 1999,
5.250%, 8/01/24
2,000 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100.00 AAA 2,035,940
Series 2001, 5.300%, 3/15/26 - FGIC Insured
1,500 Port Arthur, Texas, Jefferson County, General Obligation Bonds, 2/07 at 100.00 AAA 1,528,080
Series 1997, 5.000%, 2/15/21 - MBIA Insured
10,000 Tarrant County, Texas, Health Facilities Development Corporation 2/08 at 102.00 AAA 10,426,600
Texas Health Resources System Revenue Bonds, Series 1997A,
5.250%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.8%
80 Utah Housing Finance Agency, Single Family Mortgage Senior 7/04 at 102.00 AAA 80,964
Bonds, Federally Insured or Guaranteed Mortgage Loans,
Series 1994F, 7.000%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 1999C-2, Class II:
1,105 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 AAA 1,161,709
560 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 584,629
1,040 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.00 AA 1,072,937
Series 1999D, 5.850%, 7/01/21 (Alternative Minimum Tax)
215 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.50 Aa2 219,859
Series 1999F, 6.300%, 7/01/21 (Alternative Minimum Tax)
1,800 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 1,858,734
Series 2000F-2, Class III, 6.000%, 1/01/15 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.4%
4,815 Metropolitan District of Columbia Airports Authority, Virginia, 10/04 at 100.00 AAA 4,856,457
Airport System Revenue Bonds, Series 1994A, 5.500%, 10/01/24
(Alternative Minimum Tax) - MBIA Insured
3,395 Virginia Small Business Financing Authority, Industrial Development 11/09 at 102.00 N/R 3,307,511
Water Revenue Bonds, S.I.L. Clean Water, LLC Project,
Series 1999, 7.250%, 11/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.9%
4,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 4,352,400
Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999B:
1,755 6.000%, 9/01/15 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 1,936,695
2,590 6.000%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 2,850,088
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18, Series 1999C:
875 6.000%, 9/01/15 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 965,589
1,260 6.000%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 1,386,529
9,760 City of Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,535,725
Bonds, Series 2001A, 5.625%, 1/01/21 - FSA Insured
7,680 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 7,350,451
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
11,605 State of Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 12,323,582
State Convention and Trade Center, Series 1999,
5.250%, 7/01/16 - MBIA Insured
3,350 State of Washington, General Obligation Compound Interest No Opt. Call AAA 1,687,462
Bonds, Series 1999S-2, 0.000%, 1/01/18 - FSA Insured
State of Washington, General Obligation Compound Interest
Bonds, Series 1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call Aa1 7,796,358
18,470 0.000%, 1/01/21 No Opt. Call Aa1 7,646,580
4,800 Washington Public Power Supply System, Nuclear Project 3, 7/07 at 102.00 AAA 5,086,320
Revenue Refunding Bonds, Series 1997A, 5.250%, 7/01/16 -
FSA Insured
45
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.4%
$ 3,810 City of La Crosse, Wisconsin, Industrial Development Refunding 12/08 at 102.00 AAA $ 4,085,615
Revenue Bonds, Dairyland Power Cooperative Project,
Series 1997C, 5.550%, 2/01/15 - AMBAC Insured
4,180 Wisconsin Health and Educational Facilities Authority, Revenue 5/09 at 101.00 A 4,194,714
Bonds, Kenosha Hospital and Medical Center, Inc. Project,
Series 1999, 5.625%, 5/15/29
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, FH Healthcare Development, Inc. Project, Series 1999:
8,375 6.250%, 11/15/20 11/09 at 101.00 N/R 8,767,955
5,000 6.250%, 11/15/28 11/09 at 101.00 N/R 5,186,050
12,700 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101.00 Aaa 13,043,914
Bonds, Mercy Health System Corporation, Series 1999,
5.500%, 8/15/25 - AMBAC Insured
2,200 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,157,293
Bonds, Wheaton Franciscan Services, Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
$ 912,495 Total Long-Term Investments (cost $822,517,570) - 147.4% 867,434,482
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 15,975,387
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (295,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 588,409,869
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
# Non-income producing security. In June 2003, Waste
Solutions Group, Inc. (an entity formed for the benefit
of Nuveen Dividend Advantage Municipal Fund (NAD) which
owns various interests in the Bridgewater Resources
Inc. project) took possession of 45% of the Bridgewater
Resources Inc. assets on behalf of the Fund.
Bridgewater Resources Inc. emerged from bankruptcy in
June 2003. NAD, via Waste Solutions Group Inc., has
agreed to allow debt service reserve monies to be used
for capital expenses, and has also agreed to a debt
service moratorium until December 2005. Nuveen Advisory
Corp. will continue to actively monitor the Bridgewater
Resources, Inc. project, and to cause NAD and Waste
Solutions Group Inc. to act in what it believes is in
the best interests of fund shareholders.
## Non-income producing security. Subsequent to the
reporting period, the Fund sold its position in the
security.
See accompanying notes to financial statements.
46
Nuveen Dividend Advantage Municipal Fund 2 (NXZ)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3%
$ 18,500 Huntsville Health Care Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 $ 19,177,285
Series 2001A, 5.750%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.6%
2,500 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 2,513,825
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6%
2,470 Arkansas Development Finance Authority, Single Family 1/12 at 100.00 AAA 2,507,272
Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities
Program, Series 2002C, 5.400%, 1/01/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.9%
6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,137,340
Stanford University, Series 2001Q, 5.250%, 12/01/32
13,825 California, Department of Veterans Affairs, Home Purchase 6/06 at 101.00 AAA 14,519,706
Revenue Bonds, Series 2001A, 5.550%, 12/01/25 -
AMBAC Insured
11,200 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/28 8/13 at 100.00 Baa1 11,077,584
1,500 California Statewide Community Development Authority, Senior 10/15 at 103.00 N/R 1,628,805
Lien Revenue Bonds, East Valley Tourist Authority,
Series 2003B, 9.250%, 10/01/20
5,000 California Statewide Community Development Authority, No Opt. Call A 4,905,300
Revenue Bonds, Kaiser Permanente System, Series 2004G,
2.300%, 4/01/34 (Mandatory put 5/01/07)
5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 4,692,100
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
6,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 5,111,280
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines, Inc. Terminal 4 Project,
Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax)
230 Yuba County Water Agency, California, Yuba River Development 9/04 at 100.00 Baa3 228,747
Revenue Bonds, Pacific Gas and Electric Company Project,
Series 1966A, 4.000%, 3/01/16
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.2%
3,000 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 AAA 3,507,570
School Revenue Bonds, Peak to Peak Charter School,
Series 2001, 7.500%, 8/15/21 (Pre-refunded to 8/15/11)
10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 2,327,000
Bonds, Series 2000A, 0.000%, 9/01/28 - MBIA Insured
1,885 Eagle County Air Terminal Corporation, Colorado, Airport 5/11 at 101.00 N/R 1,787,018
Terminal Revenue Bonds, Series 2001, 7.125%, 5/01/31
(Alternative Minimum Tax)
5,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 5,084,900
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
Northwest Parkway Public Highway Authority, Colorado, Senior
Lien Revenue Bonds, Series 2001B:
22,000 0.000%, 6/15/28 - FSA Insured 6/11 at 35.65 AAA 5,220,600
17,650 0.000%, 6/15/29 - AMBAC Insured 6/11 at 33.45 AAA 3,916,535
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment 6/14 at 101.00 N/R 1,017,150
Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.1%
15,000 City of Jacksonville, Florida, Transportation Revenue Bonds, 10/11 at 100.00 AAA 15,355,500
Series 2001, 5.250%, 10/01/29 - MBIA Insured
3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 3,059,670
International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
47
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 4,000 Miami-Dade County Health Facilities Authority, Florida, Hospital 8/11 at 101.00 AAA $ 4,037,360
Revenue Refunding Bonds, Miami Children's Hospital, Series
2001A, 5.125%, 8/15/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.4%
5,940 DeKalb County, Georgia, General Obligation Bonds, Series 2003A, No Opt. Call Aaa 6,010,448
3.000%, 1/01/05
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.3%
Honolulu City and County, Hawaii, Board of Water Supply, Water
System Revenue Bonds, Series 2001:
3,000 5.250%, 7/01/26 - FSA Insured 7/11 at 100.00 AAA 3,069,000
6,725 5.250%, 7/01/31 - FSA Insured 7/11 at 100.00 AAA 6,859,298
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.4%
15,270 Chicago, Illinois, General Obligation Project and Refunding Bonds, 1/11 at 101.00 AAA 15,533,866
Series 2001A, 5.250%, 1/01/33 - MBIA Insured
3,690 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 A+ 3,791,770
Revenue Bonds, Stone Terrace Apartments Project, Series 2001A,
5.750%, 12/20/42 (Alternative Minimum Tax)
1,755 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare No Opt. Call N/R 787,556
International Airport, United Air Lines, Inc. Project, Series 2001A,
6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory
put 5/01/13)
2,780 Chicago, Illinois, Collateralized Single Family Mortgage Revenue 4/11 at 105.00 AAA 2,970,402
Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative
Minimum Tax)
3,180 Illinois Development Finance Authority, Revenue Bonds, 12/21 at 100.00 BBB 3,195,487
Chicago Charter School Foundation Project, Series 2002A,
6.250%, 12/01/32
5,000 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 AAA 5,210,150
Wesleyan University, Series 2001, 5.500%, 9/01/32 -
AMBAC Insured
3,100 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 BBB+ 3,188,598
Midwestern University, Series 2001B, 6.000%, 5/15/31
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 5,068,200
Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34 -
FSA Insured
3,000 Illinois Educational Facilities Authority, Student Housing Revenue 5/12 at 101.00 Baa2 3,072,570
Bonds, Educational Advancement Foundation Fund, University
Center Project, Series 2002, 6.250%, 5/01/34
2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/15/16 6/11 at 100.00 AAA 2,470,832
4,980 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/06 at 102.00 AAA 5,027,459
Place Expansion Project Refunding Bonds, Series 1996A,
5.250%, 6/15/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.5%
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ 2,008,880
Bonds, Methodist Hospital, Inc., Series 2001, 5.500%, 9/15/31
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,027,300
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,047,880
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,036,780
2,000 Indianapolis Airport Authority, Indiana, Special Facilities Revenue 7/04 at 102.00 BBB 2,058,600
Bonds, Federal Express Corporation Project, Series 1994,
7.100%, 1/15/17 (Alternative Minimum Tax)
4,478 Indianapolis Airport Authority, Indiana, Specialty Facility Revenue 11/05 at 102.00 N/R 1,332,123
Bonds, United Air Lines, Inc., Indianapolis Maintenance Center
Project, Series 1995A, 6.500%, 11/15/31 (Alternative
Minimum Tax)#
6,100 Saint Joseph County Hospital Authority, Indiana, Health System 2/09 at 102.00 BBB 5,849,473
Revenue Bonds, Madison Center, Inc. Project, Series 1999,
5.800%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2%
1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 A 1,026,920
Revenue Bonds, Wartburg College Project, Series 2002,
5.500%, 10/01/28 - ACA Insured
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.9%
$ 17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ $ 17,345,950
Improvement Bonds, Via Christi Health System, Inc.,
Series 2001-III, 5.625%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2%
17,060 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 14,173,789
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.0%
2,845 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/07 at 102.00 AAA 2,939,369
BOSFUEL Corporation, Series 1997, 5.750%, 7/01/39
(Alternative Minimum Tax) - MBIA Insured
15,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 14,820,450
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 14.5%
Detroit, Michigan, Water Supply System Senior Lien Revenue
Bonds, Series 2001A:
15,390 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 17,089,056
20,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 20,796,400
14,610 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 14,875,172
4,000 Michigan Municipal Bond Authority, Public School Academy 10/09 at 102.00 Ba1 4,111,600
Revenue Bonds, Detroit Academy of Arts and Sciences
Charter School, Series 2001A, 8.000%, 10/01/31
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/04 at 101.00 Ba3 1,718,000
4,000 6.500%, 8/15/18 8/04 at 101.00 Ba3 3,353,280
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 1,464,560
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.2%
14,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 14,199,360
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.8%
21,000 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 21,332,220
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.1%
4,640 Montana Board of Housing, Single Family Program Bonds, 12/10 at 100.00 AA+ 4,740,270
Series 2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.5%
12,275 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 12,529,215
Revenue Bonds, Las Vegas Monorail Project, First Tier Series
2000, 5.375%, 1/01/40 - AMBAC Insured
3,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 3,351,915
Revenue Bonds, Las Vegas Monorail Project, Second Tier
Series 2000, 7.375%, 1/01/40
4,000 Henderson, Nevada, Healthcare Facility Revenue Bonds, 7/08 at 101.00 BBB+ 3,958,360
Catholic Healthcare West, Series 1998A, 5.250%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.6%
8,000 New Hampshire Business Finance Authority, Pollution Control 10/08 at 102.00 A3 8,362,400
Remarketed Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1992A, 5.850%, 12/01/22
2,920 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 3,017,616
Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31
(Alternative Minimum Tax)
49
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.4%
$ 3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B $ 3,433,782
Revenue Bonds, Continental Airlines, Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
425 6.750%, 6/01/39 6/13 at 100.00 BBB 398,829
2,700 6.250%, 6/01/43 6/13 at 100.00 BBB 2,355,048
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 5.2%
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
12,000 5.500%, 8/01/25 8/11 at 101.00 Aa3 12,209,880
10,800 5.500%, 8/01/30 8/11 at 101.00 Aa3 10,931,112
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.7%
6,000 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- 6,112,020
Revenue Bonds, Series 2000L, 5.375%, 5/01/33
14,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA 14,566,120
Water and Sewer System Revenue Bonds, Fiscal Series 2001C,
5.125%, 6/15/33
5,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 3,955,150
Special Facilities Revenue Bonds, JFK Airport - American
Airlines, Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
4,900 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 4,998,637
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.625%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7%
2,950 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 AAA 2,938,702
Bonds, Johnson and Wales University, Series 2003A,
5.000%, 4/01/33 - XLCA Insured
4,500 North Carolina Eastern Municipal Power Agency, Power System 1/09 at 102.00 BBB 4,733,190
Revenue Refunding Bonds, Series 1999B, 5.600%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.9%
3,850 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa2 3,880,839
Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.4%
1,845 Board of Education, City School District of Columbus, Franklin 6/13 at 100.00 AAA 1,851,070
County, Ohio, General Obligation Bonds, Series 2003,
5.000%, 12/01/28 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.7%
Oklahoma Development Finance Authority, Revenue Refunding
Bonds, Hillcrest Healthcare System, Series 1999A:
2,655 5.125%, 8/15/10 8/09 at 101.00 B1 2,346,038
1,000 5.200%, 8/15/11 8/09 at 101.00 B1 873,760
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.9%
8,000 Hospital Facility Authority of Clackamas County, Oregon, Revenue 5/11 at 101.00 AA 8,223,520
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 9,050,130
Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.8%
5,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 B 5,590,000
Revenue Bonds, West Penn Allegheny Health System,
Series 2000B, 9.250%, 11/15/30
2,460 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,652,151
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 A 8,404,080
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.2%
$ 630 South Carolina Public Service Authority, Revenue Refunding 1/06 at 102.00 AAA $ 672,538
Bonds, Santee Cooper Electric System, Series 1996A,
5.750%, 1/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
4,820 South Dakota Housing Development Authority, Remarketed 5/09 at 102.00 AAA 5,026,585
Homeownership Mortgage Bonds, Series 1997E-4,
5.450%, 5/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 23.3%
7,500 Austin, Texas, Electric Utility System Revenue Refunding Bonds, 11/10 at 100.00 AAA 7,461,600
Series 2001, 5.000%, 11/15/30 - FSA Insured
Dallas-Fort Worth International Airport Public Facility
Improvement Corporation, Texas, Airport Hotel Revenue Bonds,
Series 2001:
15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,116,850
1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,765,400
10,000 Gulf Coast Industrial Development Authority, Texas, Solid Waste 4/12 at 100.00 Ba2 10,718,300
Disposal Revenue Bonds, Citgo Petroleum Corporation Project,
Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax)
3,000 Harris County Health Facilities Development Corporation, Texas, 7/09 at 101.00 AAA 3,064,470
Revenue Bonds, Christus Health, Series 1999A,
5.375%, 7/01/24 - MBIA Insured
40,000 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue 11/30 at 54.04 AAA 4,548,000
Refunding Bonds, Series 2001A, 0.000%, 11/15/40 - MBIA Insured
30,980 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA 31,242,091
Refunding Bonds, Series 2001B, 5.250%, 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 8/11 at 43.18 AAA 3,066,740
12,940 0.000%, 8/15/26 8/11 at 40.60 AAA 3,461,579
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 1,133,350
5,000 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,064,450
2,000 Mesquite Independent School District, Dallas County, Texas, 8/04 at 100.00 AAA 2,020,980
General Obligation Bonds, Series 1993, 5.300%, 8/15/06
(Pre-refunded to 8/15/04)
5,000 Metro Health Facilities Development Corporation, Texas, Hospital 1/11 at 100.00 B1 4,718,050
Revenue Bonds, Wilson N. Jones Memorial Hospital Project,
Series 2001, 7.250%, 1/01/31
10,500 Texas State, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aa1 10,691,100
Program, Series 2001, 5.250%, 8/01/35
2,000 Tom Green County Health Facilities Development Corporation, 5/11 at 101.00 Baa3 2,124,840
Texas, Hospital Revenue Bonds, Shannon Health System
Project, Series 2001, 6.750%, 5/15/21
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
2,200 Intermountain Power Agency, Utah, Power Supply Revenue 7/04 at 101.00 A+*** 2,251,304
Refunding Bonds, Series 1993A, 5.500%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.9%
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 5,191,381
7,250 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 7,304,375
3,500 City of Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 3,860,500
Bonds, Series 2001A, 5.750%, 1/01/18 - FSA Insured
2,000 State of Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,133,560
State Convention and Trade Center, Series 1999,
5.125%, 7/01/13 - MBIA Insured
51
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 7,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 AAA $ 7,694,175
Sisters of Providence Health System, Series 2001A,
5.250%, 10/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.1%
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,600
Appalachian Power Company Project, Series 2003L,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7%
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/12 at 100.00 N/R 1,036,290
Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,059,238
Bonds, Wheaton Franciscan Services, Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
$ 744,558 Total Long-Term Investments (cost $629,471,774) - 146.8% 647,529,525
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.2%
5,500 Clark County School District, Nevada, General Obligation Variable A-1+ 5,500,000
Rate Demand Bonds, Series 2001A, 1.070%, 6/15/21 -
FSA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 5,500 Total Short-Term Investments (cost $5,500,000) 5,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $634,971,774) - 148.0% 653,029,525
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 10,183,526
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (222,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 441,213,051
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
52
Nuveen Dividend Advantage Municipal Fund 3 (NZF)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0%
$ 5,655 Alabama State Port Authority, Docks Facilities Revenue Bonds, 10/11 at 100.00 AAA $ 5,715,282
Series 2001, 5.250%, 10/01/26 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7%
4,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 4,149,560
Series 1998A, 5.250%, 7/01/14 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9%
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 Baa1 1,910,827
1,900 5.500%, 11/01/14 11/11 at 101.00 Baa1 1,990,212
1,555 5.250%, 11/01/21 11/11 at 101.00 Baa1 1,541,829
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.6%
5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A 5,058,300
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
18,850 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 19,089,584
Series 2001BZ, 5.350%, 12/01/21 (Alternative Minimum
Tax) - MBIA Insured
1,500 California Statewide Community Development Authority, Senior 10/15 at 103.00 N/R 1,628,805
Lien Revenue Bonds, East Valley Tourist Authority,
Series 2003B, 9.250%, 10/01/20
5,000 California Statewide Community Development Authority, No Opt. Call A 4,905,300
Revenue Bonds, Kaiser Permanente System, Series 2004G,
2.300%, 4/01/34 (Mandatory put 5/01/07)
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 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 15,094,565
5,000 5.375%, 1/01/21 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 5,090,450
1,500 5.250%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 1,501,290
10,000 5.500%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 10,114,500
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.4%
2,250 Canterberry Crossing Metropolitan District II, Parker, Colorado, 12/12 at 100.00 N/R 2,220,772
Limited Tax General Obligation Bonds, Series 2002,
7.375%, 12/01/32
1,775 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 1,844,207
School Revenue Bonds, Weld County School District 6 -
Frontier Academy, Series 2001, 7.375%, 6/01/31
3,250 Colorado Educational and Cultural Facilities Authority, Charter 5/12 at 102.00 N/R 3,166,930
School Revenue Bonds, Montessori Peaks Building Foundation,
Series 2002A, 8.000%, 5/01/32
1,700 Colorado Educational and Cultural Facilities Authority, Charter 3/12 at 100.00 N/R 1,678,512
School Revenue Bonds, Belle Creek Education Center,
Series 2002A, 7.625%, 3/15/32
5,060 Colorado Housing and Finance Authority, Multifamily Project 10/11 at 100.00 AAA 5,155,330
Bonds, Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative
Minimum Tax)
10,100 City of Colorado Springs, Colorado, Utilities System Improvement 11/07 at 100.00 AA 10,393,809
and Refunding Revenue Bonds, Series 1997A, 5.375%, 11/15/26
2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 2,125,620
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 (Alternative
Minimum Tax) - FGIC Insured
Denver City and County, Colorado, Airport System Revenue Bonds,
Series 1996A:
19,150 5.750%, 11/15/16 - MBIA Insured 11/06 at 101.00 AAA 20,756,494
1,105 5.500%, 11/15/25 - MBIA Insured 11/06 at 101.00 AAA 1,148,150
53
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment 6/14 at 101.00 N/R $ 1,017,150
Revenue Bonds, Series 2003, 8.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3%
1,495 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 1,535,126
Program Bonds, Series 2001A-2, 5.350%, 11/15/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
DELAWARE - 0.6%
3,390 Delaware State Housing Authority, Multifamily Mortgage 7/12 at 100.00 Aa3 3,501,124
Revenue Bonds, Series 2001A, 5.400%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.1%
6,000 District of Columbia, Revenue Bonds, The Catholic University of 10/09 at 101.00 AAA 6,293,340
America Issue, Series 1999, 5.625%, 10/01/29 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.0%
2,000 Dade County, Florida, Water and Sewer System Revenue Bonds, 10/07 at 102.00 AAA 2,160,460
Series 1997, 5.375%, 10/01/16 - FGIC Insured
2,030 State of Florida, Full Faith and Credit, State Board of Education, 6/05 at 101.00 AA+ 2,022,591
Public Education Capital Outlay Refunding Bonds, Series 1995D,
4.750%, 6/01/22
Orange County, Florida, Housing Finance Authority, Multifamily
Housing Revenue Bonds, Oak Glen Apartments, Series 2001G:
1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA 1,120,868
2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,225,093
4,175 Pace Property Finance Authority, Inc., Florida, Utility System 9/07 at 102.00 AAA 4,437,107
Improvement and Refunding Revenue Bonds, Series 1997,
5.250%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.3%
5,000 City of Atlanta, Georgia, Airport General Revenue Bonds, 1/10 at 101.00 AAA 5,178,250
Series 2000B, 5.625%, 1/01/30 (Alternative Minimum
Tax) - FGIC Insured
2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station Project, 12/11 at 101.00 N/R 2,806,110
Series 2001, 7.900%, 12/01/24
3,600 Gainesville, Hall County Hospital Authority, Georgia, Revenue 5/11 at 100.00 A- 3,654,648
Anticipation Certificates, Northeast Georgia Health Services,
Inc. Project, Series 2001, 5.500%, 5/15/31
2,000 Henry County, Georgia, Henry County Water and Sewerage 2/10 at 101.00 AAA 2,112,940
Authority, Water and Sewerage Revenue Bonds, Series 2000,
5.625%, 2/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.9%
5,125 State of Hawaii, Highway Revenue Bonds, Series 2001, 7/11 at 100.00 AAA 5,439,111
5.375%, 7/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.3%
3,000 Chicago, Illinois, General Obligation Bonds, Neighborhoods 1/11 at 100.00 AAA 3,115,830
Alive 21 Program, Series 2001A, 5.500%, 1/01/31 -
FGIC Insured
8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 8,779,680
5.500%, 1/01/19 (Alternative Minimum Tax) - FSA Insured
4,950 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AAA 5,014,449
Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured
1,750 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 1,772,855
5.250%, 1/01/28 - FGIC Insured
10,800 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 1/09 at 101.00 AAA 12,015,864
5.375%, 1/01/30 (Pre-refunded to 1/01/09) - FGIC Insured
Chicago, Illinois, Second Lien Wastewater Transmission Revenue
Bonds, Series 2001A:
2,220 5.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 2,461,225
8,610 5.500%, 1/01/26 - AMBAC Insured 1/11 at 100.00 AAA 8,967,315
10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, 11/11 at 100.00 AAA 10,009,300
5.000%, 11/01/26 - AMBAC Insured
1,100 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 A3 1,165,120
Medical Center, Series 2000, 6.500%, 5/15/30
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 $ 15,237,300
University Health System, Series 2001A, 6.125%, 7/01/31
9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB+ 8,542,440
Retirement Communities, Inc., Series 2001, 5.875%, 12/01/31
2,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 2,164,600
Place Expansion Project Refunding Bonds, Series 1998A,
5.500%, 6/15/29 - FGIC Insured
16,900 Metropolitan Pier and Exposition Authority, Illinois, McCormick 12/09 at 101.00 AAA 17,207,073
Place Expansion Project Bonds, Series 1999A, 5.250%, 12/15/28 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.8%
Clark-Pleasant Community School Building Corporation, Indiana,
First Mortgage Bonds, Series 2001:
1,255 5.000%, 7/15/21 - AMBAC Insured 1/12 at 100.00 AAA 1,277,803
1,000 5.000%, 1/15/26 - AMBAC Insured 1/12 at 100.00 AAA 999,270
Evansville Vanderburgh Public Library Leasing Corporation,
Indiana, First Mortgage Bonds, Series 2001:
2,000 5.750%, 7/15/18 - MBIA Insured 7/12 at 100.00 AAA 2,175,420
2,750 5.125%, 1/15/24 - MBIA Insured 1/12 at 100.00 AAA 2,775,933
3,465 Gary, Indiana, GNMA/FHA Mortgage Revenue Bonds, Windsor 11/11 at 102.00 AAA 3,484,092
Square Project, Series 2001A, 5.375%, 10/20/41 (Alternative
Minimum Tax)
1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 AAA 1,273,162
Corporation, Indiana, First Mortgage Bonds, Series 2001,
5.125%, 1/15/23 - AMBAC Insured
9,500 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 9,891,685
Revenue Bonds, Butler University Project, Series 2001,
5.500%, 2/01/26 - MBIA Insured
2,650 Indianapolis Airport Authority, Indiana, Specialty Facility Revenue 11/05 at 102.00 N/R 788,400
Bonds, United Air Lines, Inc., Indianapolis Maintenance Center
Project, Series 1995A, 6.500%, 11/15/31 (Alternative
Minimum Tax)#
3,500 University of Southern Indiana, Indiana, Student Fee Bonds, 10/11 at 100.00 Aaa 3,582,600
Series 2001H, 5.000%, 10/01/21 - AMBAC Insured
Wayne County Jail Holding Corporation, Indiana, First Mortgage
Bonds, Series 2001:
1,150 5.625%, 7/15/18 - AMBAC Insured 1/13 at 101.00 AAA 1,264,483
1,090 5.500%, 7/15/22 - AMBAC Insured 1/13 at 101.00 AAA 1,170,017
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 4.8%
2,000 Iowa Finance Authority, Health Care Facilities Revenue Bonds, 5/11 at 100.00 AAA 2,019,280
Great River 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 6/11 at 101.00 BBB 23,508,240
3,950 5.600%, 6/01/35 6/11 at 101.00 BBB 3,155,063
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.2%
18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 18,813,760
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 2001A, 5.125%, 5/15/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.8%
19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 16,525,010
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
6,000 West Feliciana Parish, Louisiana, Remarketed Pollution Control 5/04 at 101.00 BB+ 6,194,040
Revenue Bonds, Gulf States Utilities Company, Series 1985A,
7.500%, 5/01/15
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.2%
Maine State Housing Authority, Mortgage Purchase Bonds,
Series 2001B:
4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,737,559
2,465 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 2,506,856
55
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.3%
Maryland Community Development Administration, Multifamily
Housing Insured Mortgage Loans, Series 2001B:
$ 1,175 5.250%, 5/15/21 (Alternative Minimum Tax) 5/11 at 100.00 Aa2 $ 1,204,845
1,570 5.250%, 7/01/21 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 1,613,285
10,600 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 10,735,256
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.0%
5,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 AAA 5,207,350
Delta Air Lines, Inc. Project, Series 2001A, 5.500%, 1/01/18
(Alternative Minimum Tax) - AMBAC Insured
465 Massachusetts Housing Finance Agency, Single Family Housing 6/09 at 100.00 AAA 474,574
Revenue Bonds, Series 71, 5.650%, 6/01/31 (Alternative
Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.7%
15,000 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA 17,423,400
Tax School Building and Site Improvement Bonds, Series 2001A,
6.000%, 5/01/29 - FSA Insured
11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 11,228,360
Spectrum Health, Series 2001A, 5.500%, 1/15/31
3,485 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 3,819,525
Refunding Bonds, Sisters of Mercy Health Corporation,
Series 1993P, 5.375%, 8/15/14 - MBIA Insured
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Sparrow Obligated Group, Series 2001:
1,400 5.500%, 11/15/21 11/11 at 101.00 A1 1,426,222
2,500 5.625%, 11/15/31 11/11 at 101.00 A1 2,535,450
12,640 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue 11/11 at 100.00 AAA 12,792,691
Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
2,395 Ypsilanti Community Utilities Authority, County of Washtenaw, 5/11 at 100.00 AAA 2,423,812
State of Michigan, Sanitary Sewer System No. 3 Bonds,
Charter Township of Ypsilanti, 5.100%, 5/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.4%
2,380 Dakota County Community Development Agency, Minnesota, 10/11 at 105.00 Aaa 2,413,106
GNMA Collateralized Multifamily Housing Revenue Bonds,
Rose Apartments Project, Series 2001, 6.350%, 10/20/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/09 at 103.00 AAA 2,194,135
Retirement Facility Mortgage Revenue Refunding Bonds,
Aldersgate Retirement Community, Inc. Project, Series 1999A,
5.450%, 5/20/34
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.6%
2,000 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R 2,031,400
Bonds, Gravois Bluffs Project, Series 2002, 6.125%, 10/01/21
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 3,529,030
3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,697,750
3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 3,873,210
2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,126,414
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.9%
5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 Ba3 5,172,600
Stillwater Mining Company Project, Series 2000,
8.000%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.4%
Nebraska Investment Finance Authority, Single Family Housing
Revenue Bonds, Series 2001D:
3,365 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,432,468
4,545 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 4,585,769
56
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.7%
$ 35,000 Clark County, Nevada, General Obligation Limited Tax Bond Bank 7/10 at 100.00 AAA $ 36,373,750
Bonds, Series 2000, 5.500%, 7/01/30 - MBIA Insured
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 3,830,760
Revenue Bonds, Las Vegas Monorail Project, Second Tier
Series 2000, 7.375%, 1/01/40
1,000 Nevada Housing Division, Single Family Mortgage Senior Bonds, 4/08 at 101.50 Aaa 1,030,340
Series 1998A-1, 5.300%, 4/01/18 (Alternative Minimum Tax)
4,290 University of Nevada, Universities Revenue Bonds, Community 1/12 at 100.00 AAA 4,380,605
College System Project, Series 2001A, 5.250%, 7/01/26 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4%
2,000 New Hampshire Health and Education Authority, Hospital 10/11 at 101.00 Aaa 2,119,140
Revenue Bonds, Concord Hospital Issue, Series 2001,
5.500%, 10/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5%
10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 Aaa 10,095,300
Revenue Bonds, American Water Company, Series 2002A,
5.250%, 11/01/32 (Alternative Minimum Tax) - AMBAC Insured
4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,594,343
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.3%
1,780 East Rochester Housing Authority, New York, GNMA Secured 10/11 at 101.00 AAA 1,821,349
Revenue Bonds, Gates Senior Housing, Inc. Project, Series 2001,
5.300%, 4/20/31
5,350 Metropolitan Transportation Authority, New York, Dedicated Tax 11/11 at 100.00 AAA 5,345,881
Fund Bonds, Series 2001A, 5.000%, 11/15/31 - FGIC Insured
4,155 Monroe County Airport Authority, New York, Greater Rochester No Opt. Call AAA 4,553,838
International Airport Revenue Refunding Bonds, Series 1999,
5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured
2,500 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AAA 2,731,350
Series 2002G, 5.625%, 8/01/20 - MBIA Insured
New York City Municipal Water Finance Authority, New York, Water
and Sewer System Revenue Bonds, Fiscal Series 2001A:
8,610 5.500%, 6/15/33 - MBIA Insured 6/10 at 101.00 AAA 8,965,851
5,710 5.500%, 6/15/33 - FGIC Insured 6/10 at 101.00 AAA 5,945,994
2,000 New York Tobacco Settlement Financing Corporation, Tobacco 6/11 at 100.00 AA- 2,140,780
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003B-1C, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.3%
1,800 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call BBB+ 1,943,334
Revenue Bonds, Series 2003A, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.0%
6,000 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 3/08 at 101.50 AAA 6,160,560
Program, Residential Mortgage Revenue Bonds, Series 1998A-1,
5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured
7,900 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 7,935,471
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
Portage County, Ohio, General Obligation Bonds, Series 2001:
1,870 5.000%, 12/01/21 - FGIC Insured 12/11 at 100.00 AAA 1,918,695
1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AAA 1,799,531
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.5%
Oklahoma Development Finance Authority, Revenue Refunding
Bonds, Hillcrest Healthcare System, Series 1999A:
1,000 5.125%, 8/15/10 8/09 at 101.00 B1 883,630
2,500 5.625%, 8/15/29 8/09 at 101.00 B1 1,983,575
57
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.6%
$ 4,700 Oregon Health, Housing, Educational, and Cultural Facilities 11/11 at 101.00 AAA $ 4,861,633
Authority, Revenue Bonds, Peacehealth Issue, Series 2001,
5.250%, 11/15/21 - AMBAC Insured
10,000 State of Oregon, Housing and Community Services Department, 7/10 at 100.00 Aa2 10,264,600
Multifamily Housing Revenue Bonds, Series 2000A,
6.050%, 7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9%
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
2,000 9.250%, 11/15/22 11/10 at 102.00 B 2,238,220
2,000 9.250%, 11/15/30 11/10 at 102.00 B 2,236,000
3,500 Pennsylvania Economic Development Financing Authority, 7/04 at 102.00 BBB- 3,532,235
Resource Recovery Revenue Bonds, Northampton Generating
Project, Senior Lien Series 1994A, 6.600%, 1/01/19
(Alternative Minimum Tax)
3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,491,367
Bonds, Series 2002B, 5.625%, 8/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.7%
2,185 Greenville County, South Carolina, Special Source Revenue Bonds, 4/11 at 101.00 AAA 2,339,895
Road Improvement Project, Series 2001, 5.500%, 4/01/21 -
AMBAC Insured
6,850 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/11 at 100.00 Aaa 7,731,047
Series 2001A, 5.500%, 10/01/22 (Pre-refunded to
10/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.7%
5,210 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 5,515,827
Revenue Bonds, Series 2001A, 5.500%, 3/01/14 (Alternative
Minimum Tax) - FSA Insured
2,160 Tennessee Housing Development Agency, Homeownership 1/09 at 101.00 AA 2,198,686
Program Bonds, Issue 1998-2, 5.350%, 7/01/23 (Alternative
Minimum Tax)
2,065 Tennessee Housing Development Agency, Homeownership 7/11 at 100.00 AA 2,099,671
Program Bonds, Issue 2001-3A, 5.200%, 7/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.7%
1,125 Brushy Creek Municipal Utility District, Williamson County, 6/09 at 100.00 Aaa 1,132,054
Texas, Combination Unlimited Tax and Revenue Refunding
Bonds, Series 2001, 5.125%, 6/01/26 - FSA Insured
3,850 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,934,662
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
City of Frisco, Texas, in the Counties of Collins and Denton,
General Obligation Bonds, Series 2001:
1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AAA 1,958,476
2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AAA 2,046,503
4,040 Harris County, Texas, Tax and Revenue Certificates of Obligation, 8/11 at 100.00 AA+ 4,046,060
Series 2001, 5.000%, 8/15/27
7,000 Houston, Texas, Airport System Subordinate Lien Revenue Bonds, 7/08 at 101.00 AAA 7,240,240
Series 1998B, 5.250%, 7/01/14 (Alternative Minimum Tax) -
FGIC Insured
Houston, Texas, Airport System Subordinate Lien Revenue
Refunding Bonds, Series 2001A:
2,525 5.500%, 7/01/13 (Alternative Minimum Tax) - FGIC Insured 1/12 at 100.00 AAA 2,690,438
2,905 5.500%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured 1/12 at 100.00 AAA 3,118,750
6,000 Houston, Texas, Water and Sewer System Junior Lien Revenue No Opt. Call AAA 6,480,180
Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - MBIA Insured
Jefferson County, Texas, Health Facilities Development
Corporation, 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 8,687,765
8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 AAA 8,711,480
10,700 Laredo Independent School District, Webb County, Texas, General 8/11 at 100.00 AAA 10,721,721
Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25
2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 2,490,325
Revenue Refunding Bonds, Houston Light and Power Company
Project, Series 1997, 5.125%, 11/01/28 (Alternative Minimum
Tax) - AMBAC Insured
58
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,540 Medina Valley Independent School District, Medina County, Texas, 2/11 at 100.00 Aaa $ 1,568,475
General Obligation Bonds, Series 2001, 5.250%, 2/15/26
5,430 Mineral Wells Independent School District, Pale Pinto and Parker 2/08 at 100.00 Aaa 5,330,468
Counties, Texas, Unlimited School Tax Building and Refunding
Bonds, Series 1998, 4.750%, 2/15/22
3,000 North Central Texas Health Facilities Development Corporation, 2/08 at 102.00 AAA 3,053,460
Revenue Bonds, Texas Health Resources System, Series 1997B,
5.375%, 2/15/26 - MBIA Insured
3,045 Port of Houston Authority of Harris County, Texas, General 10/11 at 100.00 AAA 3,217,652
Obligation Port Improvement Bonds, Series 2001B,
5.500%, 10/01/17 (Alternative Minimum Tax) - FGIC Insured
12,535 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 12,643,929
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
15,700 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 16,426,125
Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.2%
Utah Housing Corporation, Single Family Mortgage Bonds,
Series 2001E:
2,320 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 2,393,753
715 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 725,082
Utah Housing Corporation, Single Family Mortgage Bonds,
Series 2001F-1:
2,860 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 2,960,272
710 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 AA- 731,790
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.9%
5,070 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 5,147,520
Mortgage Bonds, Series 2001J-1, 5.200%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 16.4%
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 1,041,770
2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,112,220
2,090 Public Utility District No. 1 of Benton County, Washington, 11/11 at 100.00 AAA 2,304,141
Electric Revenue Refunding Bonds, Series 2001A,
5.625%, 11/01/15 - FSA Insured
1,500 Public Utility District No. 1 of Grays Harbor County, Washington, 1/11 at 100.00 AAA 1,539,405
Electric Revenue Bonds, Series 2001, 5.125%, 1/01/22 -
AMBAC Insured
2,475 Public Utility District No. 1 of Klickitat County, Washington, 12/11 at 100.00 AAA 2,473,218
Electric Revenue Bonds, Series 2001B, 5.000%, 12/01/26 -
AMBAC Insured
12,955 Port of Seattle, Washington, Passenger Facility Charge Revenue 12/08 at 101.00 AAA 13,472,682
Bonds, Series 1998B, 5.300%, 12/01/16 (Alternative Minimum
Tax) - AMBAC Insured
Port of Seattle, Washington, Revenue Bonds, Series 2001B:
2,535 5.625%, 4/01/18 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 2,690,446
16,000 5.100%, 4/01/24 (Alternative Minimum Tax) - FGIC Insured 10/08 at 100.00 AAA 15,866,880
5,680 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 6,133,037
Refunding and Improvement Bonds, Series 2001,
5.500%, 3/01/18 - FSA Insured
4,530 The City of Tacoma, Washington, Solid Waste Utility Revenue 12/11 at 100.00 AAA 4,726,602
Refunding Bonds, Series 2001, 5.250%, 12/01/21 -
AMBAC Insured
2,250 State of Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,405,610
State Convention and Trade Center, Series 1999,
5.250%, 7/01/14 - MBIA Insured
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 3,191,520
2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,076,812
59
Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 3,720 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa $ 3,909,832
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.375%, 10/01/18 - AMBAC Insured
Washington State Healthcare Facilities Authority, Revenue Bonds,
Good Samaritan Hospital, Series 2001:
5,480 5.500%, 10/01/21 - RAAI Insured 10/11 at 101.00 AA 5,694,816
25,435 5.625%, 10/01/31 - RAAI Insured 10/11 at 101.00 AA 26,400,258
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.2%
City of Appleton, Wisconsin, Waterworks Revenue Refunding
Bonds, Series 2001:
3,705 5.375%, 1/01/20 - FGIC Insured 1/12 at 100.00 Aaa 3,924,151
1,850 5.000%, 1/01/21 - FGIC Insured 1/12 at 100.00 Aaa 1,889,461
1,735 Evansville Community School District, Dane, Green, and Rock 4/11 at 100.00 AAA 1,867,224
Counties, Wisconsin, General Obligation Refunding Bonds,
Series 2001, 5.500%, 4/01/20 - FGIC Insured
12,250 City of La Crosse, Wisconsin, Pollution Control Refunding Revenue 12/08 at 102.00 AAA 13,136,165
Bonds, Dairyland Power Cooperative Project, Series 1997B,
5.550%, 2/01/15 - AMBAC Insured
3,180 State of Wisconsin, Clean Water Revenue Bonds, Series 1999-1, 6/09 at 100.00 AA+ 3,442,441
5.500%, 6/01/17
4,000 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 A+ 3,966,360
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30
2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ 2,529,950
Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25
------------------------------------------------------------------------------------------------------------------------------------
$ 866,425 Total Long-Term Investments (cost $871,153,051) - 149.6% 884,636,061
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
5,000 New York City Municipal Water Finance Authority, New York, A-1+ 5,000,000
Water and Sewer System Variable Rate Revenue Bonds,
Fiscal Series 1993C, 1.080%, 6/15/22 - FGIC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 5,000 Total Short-Term Investments (cost $5,000,000) 5,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $876,153,051) - 150.4% 889,636,061
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 13,866,138
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.7)% (312,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 591,502,199
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
60
Statement of
ASSETS AND LIABILITIES April 30, 2004 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market
value (cost
$1,307,637,592,
$952,659,832,
$993,265,172,
$822,517,570,
$634,971,774 and
$876,153,051,
respectively) $1,374,628,759 $1,008,493,154 $1,043,095,287 $867,434,482 $653,029,525 $889,636,061
Receivables:
Interest 22,028,387 18,926,042 17,656,760 15,235,758 11,513,862 15,456,577
Investments sold 12,981,800 3,088,343 339,057 3,066,540 210,000 1,211,651
Other assets 53,172 36,369 39,435 40,615 15,954 13,520
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,409,692,118 1,030,543,908 1,061,130,539 885,777,395 664,769,341 906,317,809
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 8,362,539 2,921,189 2,252,446 1,900,724 1,271,762 2,434,193
Payable for investments purchased 7,727,610 1,591,150 -- -- -- --
Accrued expenses:
Management fees 712,861 529,297 546,630 238,092 180,752 243,276
Other 211,546 145,234 186,379 207,076 78,987 116,099
Preferred share dividends payable 39,607 30,277 37,032 21,634 24,789 22,042
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 17,054,163 5,217,147 3,022,487 2,367,526 1,556,290 2,815,610
------------------------------------------------------------------------------------------------------------------------------------
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 $ 913,637,955 $ 667,326,761 $ 678,108,052 $588,409,869 $441,213,051 $591,502,199
====================================================================================================================================
Common shares outstanding 59,914,073 43,025,594 45,540,872 39,267,491 29,282,000 40,310,119
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by
Common shares outstanding) $ 15.25 $ 15.51 $ 14.89 $ 14.98 $ 15.07 $ 14.67
====================================================================================================================================
NET ASSETS APPLICABLE TO
COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par
value per share $ 599,141 $ 430,256 $ 455,409 $ 392,675 $ 292,820 $ 403,101
Paid-in surplus 836,257,015 601,030,545 635,357,118 558,026,942 416,101,191 572,811,967
Undistributed net
investment income 12,134,763 9,516,491 6,692,480 7,562,913 6,401,613 5,839,535
Accumulated net realized gain
(loss) from investment
transactions (2,344,131) 516,147 (14,227,070) (22,489,573) 359,676 (1,035,414)
Net unrealized appreciation
of investments 66,991,167 55,833,322 49,830,115 44,916,912 18,057,751 13,483,010
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 913,637,955 $ 667,326,761 $ 678,108,052 $588,409,869 $441,213,051 $591,502,199
====================================================================================================================================
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.
61
Statement of
OPERATIONS Six Months Ended April 30, 2004 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 36,928,510 $27,774,827 $27,541,433 $24,031,261 $18,103,157 $23,595,390
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,376,883 3,238,077 3,356,415 2,811,290 2,120,345 2,869,599
Preferred shares - auction fees 597,110 446,274 473,699 367,740 276,740 388,932
Preferred shares - dividend
disbursing agent fees 24,932 24,932 19,945 14,959 14,959 14,959
Shareholders' servicing agent fees
and expenses 97,588 58,084 64,483 7,779 3,543 3,377
Custodian's fees and expenses 148,967 100,368 96,547 86,235 60,314 89,371
Directors'/Trustees' fees
and expenses 9,466 7,155 7,087 6,088 4,762 6,144
Professional fees 58,550 24,874 20,055 41,666 14,515 25,994
Shareholders' reports - printing and
mailing expenses 80,928 52,427 59,112 43,517 30,175 41,656
Stock exchange listing fees 11,325 8,227 8,695 7,824 2,987 1,752
Investor relations expense 68,090 42,669 51,846 43,061 31,679 43,388
Other expenses 38,957 32,570 30,793 20,801 16,238 20,290
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before
custodian fee credit and
expense reimbursement 5,512,796 4,035,657 4,188,677 3,450,960 2,576,257 3,505,462
Custodian fee credit (17,721) (11,097) (9,290) (10,120) (13,316) (16,447)
Expense reimbursement -- -- -- (1,350,319) (1,011,897) (1,378,879)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,495,075 4,024,560 4,179,387 2,090,521 1,551,044 2,110,136
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,433,435 23,750,267 23,362,046 21,940,740 16,552,113 21,485,254
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss)
from investments 3,480,141 569,412 (986,411) (326,299) 359,146 279,953
Change in net unrealized
appreciation (depreciation)
of investments (15,618,429) (4,492,116) (8,986,473) (7,576,535) (1,851,220) (3,646,861)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (12,138,288) (3,922,704) (9,972,884) (7,902,834) (1,492,074) (3,366,908)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income (2,063,792) (1,544,885) (1,649,886) (1,235,285) (936,313) (1,360,902)
From accumulated net realized
gains from investments -- (42,016) -- -- (52,111) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Preferred shareholders (2,063,792) (1,586,901) (1,649,886) (1,235,285) (988,424) (1,360,902)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations $ 17,231,355 $18,240,662 $11,739,276 $12,802,621 $14,071,615 $16,757,444
====================================================================================================================================
See accompanying notes to financial statements.
62
Statement of
CHANGES IN NET ASSETS (Unaudited)
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO)
-------------------------------- ---------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 31,433,435 $ 64,017,626 $ 23,750,267 $ 48,689,939 $ 23,362,046 $ 47,123,892
Net realized gain (loss)
from investments 3,480,141 (5,880,620) 569,412 634,285 (986,411) (11,663,137)
Change in net unrealized
appreciation (depreciation)
of investments (15,618,429) 8,871,335 (4,492,116) 9,982,884 (8,986,473) 34,046,066
Distributions to Preferred
shareholders:
From net investment income (2,063,792) (4,280,974) (1,544,885) (3,175,596) (1,649,886) (3,474,652)
From accumulated net realized
gains from investments -- (139,879) (42,016) (242,543) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations 17,231,355 62,587,488 18,240,662 55,888,969 11,739,276 66,032,169
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (29,118,247) (56,921,521) (22,196,189) (44,027,554) (21,586,376) (42,990,586)
From accumulated net realized
gains from investments -- (1,515,794) (599,790) (2,984,339) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Common shareholders (29,118,247) (58,437,315) (22,795,979) (47,011,893) (21,586,376) (42,990,586)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common
shares issued to
shareholders due to
reinvestment of distributions -- -- 734,804 -- -- --
Preferred shares offering costs -- (1,000) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- (1,000) 734,804 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable to
Common shares (11,886,892) 4,149,173 (3,820,513) 8,877,076 (9,847,100) 23,041,583
Net assets applicable to Common
shares at the beginning
of period 925,524,847 921,375,674 671,147,274 662,270,198 687,955,152 664,913,569
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $913,637,955 $925,524,847 $667,326,761 $671,147,274 $678,108,052 $687,955,152
====================================================================================================================================
Undistributed net investment
income at the end
of period $ 12,134,763 $ 11,883,367 $ 9,516,491 $ 9,507,298 $ 6,692,480 $ 6,566,696
====================================================================================================================================
See accompanying notes to financial statements.
63
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
--------------------------------- --------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 21,940,740 $ 42,988,353 $ 16,552,113 $ 33,824,202 $ 21,485,254 $ 43,147,335
Net realized gain (loss)
from investments (326,299) (4,617,432) 359,146 890,827 279,953 202,373
Change in net unrealized
appreciation (depreciation)
of investments (7,576,535) 12,311,762 (1,851,220) 4,294,735 (3,646,861) 3,920,609
Distributions to
Preferred shareholders:
From net investment income (1,235,285) (2,660,192) (936,313) (2,029,376) (1,360,902) (2,863,822)
From accumulated net realized
gains from investments -- -- (52,111) (28,710) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations 12,802,621 48,022,491 14,071,615 36,951,678 16,757,444 44,406,495
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (20,134,038) (38,956,575) (15,109,523) (29,486,976) (19,409,322) (37,528,721)
From accumulated net realized
gains from investments -- -- (850,299) (272,342) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Common shareholders (20,134,038) (38,956,575) (15,959,822) (29,759,318) (19,409,322) (37,528,721)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common
shares issued to shareholders
due to reinvestment
of distributions 475,056 155,266 -- -- -- 476,145
Preferred shares offering costs -- -- -- 2,137 -- 1,199
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable to
Common shares from capital
share transactions 475,056 155,266 -- 2,137 -- 477,344
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable to
Common shares (6,856,361) 9,221,182 (1,888,207) 7,194,497 (2,651,878) 7,355,118
Net assets applicable to Common
shares at the beginning
of period 595,266,230 586,045,048 443,101,258 435,906,761 594,154,077 586,798,959
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $588,409,869 $595,266,230 $441,213,051 $443,101,258 $591,502,199 $594,154,077
====================================================================================================================================
Undistributed net investment
income at the end of period $ 7,562,913 $ 6,991,496 $ 6,401,613 $ 5,895,336 $ 5,839,535 $ 5,124,505
====================================================================================================================================
See accompanying notes to financial statements.
64
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Performance Plus Municipal Fund,
Inc. (NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market
Opportunity Fund, Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD),
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) and Nuveen Dividend Advantage
Municipal Fund 3 (NZF). Performance Plus (NPP), Municipal Advantage (NMA),
Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York
Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF)
are traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors/Trustees of the Funds, or its designee, may establish a
fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At April 30, 2004,
Performance Plus (NPP)and Municipal Advantage (NMA) had outstanding when-issued
purchase commitments of $7,727,610 and $1,591,150, respectively. At April 30,
2004, 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.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal income
tax, to retain such tax-exempt status when distributed to shareholders of the
Funds.
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set pursuant to a dutch
auction process by the auction agent, and is payable at or near the end of each
rate period. The number of Preferred shares outstanding, by Series and in total,
for each Fund is as follows:
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
=========================================================================================================
66
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended April 30, 2004.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, its 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.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred 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
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
===========================================================================================================
Common shares issued to
shareholders due to
reinvestment
of distributions -- -- 45,261 -- -- --
===========================================================================================================
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF)
------------------------ -------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
===========================================================================================================
Common shares issued to
shareholders due to
reinvestment
of distributions 29,786 9,858 -- -- -- --
===========================================================================================================
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended April 30, 2004, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------
Purchases $89,390,337 $33,439,601 $15,768,516 $26,011,039 $21,341,432 $15,563,343
Sales and maturities 74,413,682 21,561,750 4,159,171 14,541,596 6,422,807 15,262,950
=========================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At April 30, 2004, the cost of investments were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------------
Cost of investments $1,306,959,341 $951,869,995 $992,784,148 $821,687,058 $634,673,765 $876,099,819
===============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2004, 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 $ 78,745,631 $ 68,422,597 $ 69,471,826 $59,019,244 $27,795,641 $23,091,019
Depreciation (11,076,213) (11,799,438) (19,160,687) (13,271,820) (9,439,881) (9,554,777)
------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $ 67,669,418 $ 56,623,159 $ 50,311,139 $45,747,424 $18,355,760 $13,536,242
==================================================================================================================
68
The tax components of undistributed net investment income and net realized gains
at October 31, 2003, the Funds' last fiscal 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 $15,733,229 $12,505,878 $9,582,171 $9,592,110 $8,183,960 $8,273,202
Undistributed net
ordinary income * 166,616 11,261 145,432 27,034 11 79
Undistributed net long-term
capital gains -- 638,541 -- -- 902,940 --
=========================================================================================================
* 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 fiscal year ended October 31,
2003, the Funds' last fiscal year end, 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 $60,990,090 $46,876,673 $46,423,461 $41,473,029 $31,323,275 $40,277,088
Distributions from net
ordinary income * 3,729 179,625 -- -- 185,573 --
Distributions from net
long-term
capital gains 1,655,369 3,226,882 -- -- 115,479 --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2003, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
PERFORMANCE MARKET DIVIDEND DIVIDEND
PLUS OPPORTUNITY ADVANTAGE ADVANTAGE 3
(NPP) (NMO) (NAD) (NZF)
---------------------------------------------------------------------------------------------------------
Expiration year:
2007 $ -- $ -- $ 2,980,482 $ --
2008 -- -- 14,462,547 --
2009 -- -- -- --
2010 -- 1,622,794 -- 1,315,379
2011 5,874,776 11,657,833 4,594,300 --
---------------------------------------------------------------------------------------------------------
Total $5,874,776 $13,280,627 $22,037,329 $1,315,379
=========================================================================================================
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Performance Plus' (NPP), Municipal Advantage's (NMA) and Market
Opportunity's (NMO) investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.
(formerly, The John Nuveen Company), each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Dividend Advantage's (NAD), Dividend Advantage 2's (NXZ) and Dividend
Advantage 3's (NZF) investment management agreements with the Adviser, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
As approved by the Board of Directors/Trustees, a complex-wide fee schedule for
all Funds managed by the Adviser and its affiliates will go into effect on
August 1, 2004. This complex-wide fee schedule is expected to marginally
decrease the rate at which management fees are to be paid by the Funds. Under no
circumstances will the complex-wide fee schedule result in an increase in the
rate at which management fees would be paid by the Funds if the complex-wide fee
schedule were not implemented.
For the first ten years of Dividend Advantage's (NAD) operations, the Adviser
has agreed to reimburse the Fund, as a percentage of average daily net assets
(including net assets attributable to Preferred shares), for fees and expenses
in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion
of its fees and expenses beyond July 31, 2009.
70
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.
6. INVESTMENT COMPOSITION
At April 30, 2004, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPP) (NMA) (NMO) (NAD) (NXZ) (NZF)
---------------------------------------------------------------------------------------------------------
Consumer Staples 5% 4% 5% 5% 3% 5%
Education and Civic Organizations 3 -- 3 4 3 5
Healthcare 10 17 10 15 25 17
Housing/Multifamily 5 2 1 2 1 4
Housing/Single Family 4 10 1 3 6 6
Long-Term Care 1 2 -- 3 1 1
Tax Obligation/General 15 7 22 13 9 10
Tax Obligation/Limited 14 10 14 12 16 12
Transportation 10 11 16 14 14 17
U.S. Guaranteed 18 14 14 14 4 2
Utilities 10 17 8 11 8 8
Water and Sewer 5 5 5 3 9 12
Other -- 1 1 1 1 1
---------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100% 100%
=========================================================================================================
Certain investments owned by the Funds are either covered by insurance issued by
several private insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest in the event of default (63% for Performance
Plus (NPP), 55% for Municipal Advantage (NMA), 56% for Market Opportunity (NMO),
62% for Dividend Advantage (NAD), 53% for Dividend Advantage 2 (NXZ) and 66% for
Dividend Advantage 3 (NZF)). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of the
Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2004, to shareholders of record on
May 15, 2004, 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 $.0810 $.0860 $.0790 $.0855 $.0860 $.0805
=========================================================================================================
72
Financial
HIGHLIGHTS (Unaudited)
73
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PERFORMANCE PLUS (NPP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) $15.45 $ .52 $ (.20) $(.03) $ -- $ .29 $ (.49) $ -- $ (.49)
2003 15.38 1.07 .05 (.07) -- 1.05 (.95) (.03) (.98)
2002 15.57 1.09 (.22) (.10) (.01) .76 (.90) (.04) (.94)
2001 14.36 1.10 1.17 (.23) -- 2.04 (.83) -- (.83)
2000 13.69 1.12 .69 (.29) -- 1.52 (.84) -- (.84)
1999 15.43 1.12 (1.73) (.21) -- (.82) (.91) (.01) (.92)
MUNICIPAL ADVANTAGE (NMA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 15.62 .55 (.09) (.04) -- .42 (.52) (.01) (.53)
2003 15.41 1.13 .25 (.07) (.01) 1.30 (1.02) (.07) (1.09)
2002 15.65 1.15 (.22) (.10) (.03) .80 (.94) (.10) (1.04)
2001 14.61 1.16 1.10 (.24) (.03) 1.99 (.87) (.08) (.95)
2000 13.98 1.24 .63 (.33) -- 1.54 (.91) -- (.91)
1999 15.85 1.24 (1.85) (.24) -- (.85) (1.00) -- (1.00)
MARKET OPPORTUNITY (NMO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 15.11 .51 (.22) (.04) -- .25 (.47) -- (.47)
2003 14.60 1.03 .50 (.08) -- 1.45 (.94) -- (.94)
2002 15.24 1.11 (.70) (.11) (.01) .29 (.91) (.02) (.93)
2001 14.45 1.16 .80 (.26) (.01) 1.69 (.87) (.03) (.90)
2000 14.11 1.24 .38 (.34) -- 1.28 (.94) -- (.94)
1999 15.96 1.26 (1.83) (.24) -- (.81) (1.01) (.01) (1.02)
DIVIDEND ADVANTAGE (NAD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 15.17 .56 (.21) (.03) -- .32 (.51) -- (.51)
2003 14.94 1.10 .19 (.07) -- 1.22 (.99) -- (.99)
2002 14.84 1.13 .01 (.10) -- 1.04 (.94) -- (.94)
2001 13.59 1.16 1.21 (.24) -- 2.13 (.88) -- (.88)
2000 12.78 1.15 .84 (.31) -- 1.68 (.86) -- (.86)
1999(a) 14.33 .39 (1.47) (.07) -- (1.15) (.30) -- (.30)
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 15.13 .57 (.05) (.03) -- .49 (.52) (.03) (.55)
2003 14.89 1.16 .17 (.07) -- 1.26 (1.01) (.01) (1.02)
2002 15.07 1.15 (.32) (.10) -- .73 (.91) (.01) (.92)
2001(b) 14.33 .52 .88 (.09) -- 1.31 (.45) -- (.45)
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 14.74 .53 (.09) (.03) -- .41 (.48) -- (.48)
2003 14.56 1.07 .10 (.07) -- 1.10 (.93) -- (.93)
2002 14.47 1.03 .16 (.10) -- 1.09 (.91) -- (.91)
2001(c) 14.33 .03 .14 -- -- .17 -- -- --
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=========================================================================================
PERFORMANCE PLUS (NPP)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) $ -- $15.25 $13.5500 (4.39)% 1.79%
2003 -- 15.45 14.6400 9.58 6.97
2002 (.01) 15.38 14.2800 4.51 5.03
2001 -- 15.57 14.5800 26.96 14.51
2000 (.01) 14.36 12.1875 .90 11.47
1999 -- 13.69 12.9375 (10.76) (5.63)
MUNICIPAL ADVANTAGE (NMA)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) -- 15.51 14.2500 (4.55) 2.64
2003 -- 15.62 15.4400 13.17 8.71
2002 -- 15.41 14.6600 5.89 5.39
2001 -- 15.65 14.8500 23.35 13.97
2000 -- 14.61 12.8750 1.46 11.48
1999 (.02) 13.98 13.6250 (8.16) (5.83)
MARKET OPPORTUNITY (NMO)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) -- 14.89 13.2300 (4.36) 1.61
2003 -- 15.11 14.2900 10.62 10.24
2002 -- 14.60 13.8000 .49 2.03
2001 -- 15.24 14.6500 20.03 11.93
2000 -- 14.45 13.0000 2.97 9.41
1999 (.02) 14.11 13.5625 (9.18) (5.49)
DIVIDEND ADVANTAGE (NAD)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) -- 14.98 13.9400 (4.69) 2.07
2003 -- 15.17 15.1200 11.41 8.41
2002 -- 14.94 14.5000 2.01 7.26
2001 -- 14.84 15.1400 27.35 16.03
2000 (.01) 13.59 12.6250 (.79) 13.61
1999(a) (.10) 12.78 13.6250 (7.29) (8.83)
DIVIDEND ADVANTAGE 2 (NXZ)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) -- 15.07 14.1300 (1.38) 3.15
2003 -- 15.13 14.8500 14.39 8.67
2002 .01 14.89 13.9100 (.81) 5.16
2001(b) (.12) 15.07 14.9600 2.75 8.39
DIVIDEND ADVANTAGE 3 (NZF)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) -- 14.67 13.3400 (.04) 2.73
2003 .01 14.74 13.8000 9.04 7.82
2002 (.09) 14.56 13.5300 (4.26) 7.20
2001(c) (.03) 14.47 15.0700 .47 .98
=========================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===========================================================================================================================
PERFORMANCE PLUS (NPP)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) $913,638 1.17%* 6.64%* 1.16%* 6.65%* 5%
2003 925,525 1.18 6.89 1.18 6.90 10
2002 921,376 1.18 7.11 1.17 7.12 11
2001 932,937 1.15 7.29 1.14 7.30 14
2000 860,556 1.17 8.09 1.16 8.10 25
1999 820,432 1.15 7.48 1.12 7.51 30
MUNICIPAL ADVANTAGE (NMA)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 667,327 1.18* 6.92* 1.17* 6.92* 2
2003 671,147 1.21 7.27 1.20 7.27 7
2002 662,270 1.22 7.55 1.22 7.55 17
2001 672,673 1.23 7.60 1.22 7.61 18
2000 628,099 1.23 8.77 1.23 8.77 39
1999 600,923 1.16 8.12 1.16 8.12 29
MARKET OPPORTUNITY (NMO)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 678,108 1.19* 6.64* 1.19* 6.64* 0
2003 687,955 1.25 6.94 1.25 6.94 9
2002 664,914 1.24 7.50 1.24 7.51 13
2001 694,025 1.23 7.73 1.23 7.74 11
2000 658,070 1.25 8.76 1.23 8.77 52
1999 642,643 1.15 8.18 1.14 8.19 31
DIVIDEND ADVANTAGE (NAD)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 588,410 1.13* 6.77* .69* 7.21* 2
2003 595,266 1.35 6.78 .89 7.24 3
2002 586,045 1.25 7.24 .80 7.70 7
2001 581,089 1.26 7.56 .78 8.04 12
2000 531,571 1.22 8.34 .73 8.83 37
1999(a) 499,783 1.06* 6.10* .58* 6.58* 16
DIVIDEND ADVANTAGE 2 (NXZ)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 441,213 1.13* 6.82* .68* 7.28* 1
2003 443,101 1.17 7.20 .71 7.66 11
2002 435,907 1.17 7.32 .70 7.79 9
2001(b) 441,308 1.13* 5.56* .63* 6.06* 5
DIVIDEND ADVANTAGE 3 (NZF)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 591,502 1.15* 6.58* .69* 7.04* 2
2003 594,154 1.17 6.80 .71 7.26 3
2002 586,799 1.17 6.78 .70 7.25 7
2001(c) 583,100 .72* 2.05* .42* 2.36* 1
===========================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
========================================================================
PERFORMANCE PLUS (NPP)
------------------------------------------------------------------------
Year Ended 10/31:
2004(d) $479,000 $25,000 $72,685
2003 479,000 25,000 73,305
2002 479,000 25,000 73,089
2001 444,000 25,000 77,530
2000 444,000 25,000 73,455
1999 400,000 25,000 76,277
MUNICIPAL ADVANTAGE (NMA)
------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 358,000 25,000 71,601
2003 358,000 25,000 71,868
2002 358,000 25,000 71,248
2001 358,000 25,000 71,974
2000 358,000 25,000 68,862
1999 358,000 25,000 66,964
MARKET OPPORTUNITY (NMO)
------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 380,000 25,000 69,612
2003 380,000 25,000 70,260
2002 380,000 25,000 68,744
2001 380,000 25,000 70,660
2000 380,000 25,000 68,294
1999 380,000 25,000 67,279
DIVIDEND ADVANTAGE (NAD)
------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 295,000 25,000 74,865
2003 295,000 25,000 75,446
2002 295,000 25,000 74,665
2001 295,000 25,000 74,245
2000 295,000 25,000 70,048
1999(a) 295,000 25,000 67,354
DIVIDEND ADVANTAGE 2 (NXZ)
------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 222,000 25,000 74,686
2003 222,000 25,000 74,899
2002 222,000 25,000 74,089
2001(b) 222,000 25,000 74,697
DIVIDEND ADVANTAGE 3 (NZF)
------------------------------------------------------------------------
Year Ended 10/31:
2004(d) 312,000 25,000 72,396
2003 312,000 25,000 72,608
2002 312,000 25,000 72,019
2001(c) -- -- --
========================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period May 26, 1999 (commencement of operations) through October
31, 1999.
(b) For the period March 27, 2001 (commencement of operations) through October
31, 2001.
(c) For the period September 25, 2001 (commencement of operations) through
October 31, 2001.
(d) For the six months ended April 30, 2004.
See accompanying notes to financial statements.
74-75 spread
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
76
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
Anne E. Impellizzeri*
William L. Kissick*
Thomas E. Leafstrand*
Peter R. Sawers*
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington*
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
POLICY CHANGE
On February 25, 2004, the Board approved policies that would allow NXZ and NZF
at the discretion of the Adviser, to engage in certain types of derivative
transactions for the purpose of hedging interest rate risk. There is no
guarantee that the Adviser will cause a Fund to enter into such transactions. If
a Fund were to engage in hedging, there is no guarantee that such hedging will
be successful.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
AVERAGE DURATION: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
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*Director/Trustee will be retiring on June 30, 2004.
Each Fund intends to repurchase shares of its own common or preferred stock,
where applicable, in the future at such times and in such amounts as is deemed
advisable. No shares were purchased during the six-months ended April 30, 2004.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
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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.
Managing $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-B-0404D
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.
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. 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 registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Dividend Advantage Municipal Fund 3
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: July 8, 2004
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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 8, 2004
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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 8, 2004
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* Print the name and title of each signing officer under his or her signature.