NUVEEN EXCHANGE-TRADED FUNDS
OCTOBER 31, 1999
ANNUAL REPORT
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NPP
Performance Plus
NMA
Advantage
NMO
Opportunity
NAD
Dividend Advantage
Photo of:
Man and boy playing chess
<PAGE>
Highlights
As of October 31, 1999
CONTENTS
1 Dear Shareholder
3 Portfolio Manager Roundtable
7 NPP's Performance Overview
8 NMA's Performance Overview
9 NMO's Performance Overview
10 NAD's Performance Overview
11 Shareholder Meeting Report
14 Report of Independent Auditors
15 Portfolio of Investments
44 Statement of Net Assets
45 Statement of Operations
46 Statement of Changes in Net Assets
48 Notes to Financial Statements
53 Financial Highlights
56 Build Your Wealth Automatically
57 Fund Information
CREDIT QUALITY PERFORMANCE HIGHLIGHTS
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
o Taxable-equivalent yield on share price
of 10.09% *
o Good credit quality with 83% of the Fund's
investments rated at AA or higher
Pie Chart:
AA/U.S. Guaranteed 73%
AA 10%
A 9%
BBB/NR 8%
Nuveen Municipal Advantage Fund, Inc. (NMA)
o Taxable-equivalent yield on share price of
10.59% *
o Has provided a steady tax-free
dividend for 24 consecutive months
Pie Chart:
AAA/U.S. Guaranteed 68%
AA 12%
A 8%
BBB/NR 12%
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
o Taxable-equivalent yield on share price of
10.77% *
o Has provided a steady tax-free
dividend for 24 consecutive months
Pie Chart:
AAA/U.S. Guaranteed 60%
AA 11%
A 11%
BBB/NR 17%
Below Investment Grade 1%
Nuveen Dividend Advantage Municipal Fund (NAD)
o Taxable-equivalent yield on share price of
9.45% *
o The first national Nuveen Exchange-Traded
Fund since September 1993
Pie Chart:
AAA/U.S. Guaranteed 67%
AA 17%
A 3%
BBB/NR 13%
* For investors in the 31% federal income tax bracket. See your fund's
performance overview in this report for more information.
<PAGE>
Photo of:
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
I am pleased to report to you on the annual performance of your Nuveen
Exchange-Traded Fund. Providing a stable, attractive tax-free dividend is the
Fund's main objective, and over the past year, your Fund continued to achieve
this goal. During the period covered by this report, we have seen some shifts in
the U.S. investment climate and the fixed-income environment in which your
Nuveen Exchange-Traded Fund operates. I appreciate the opportunity to review the
current investment environment with you, as does the portfolio manager of your
Fund, who discusses fund performance later in this report.
A CHALLENGING INVESTMENT ENVIRONMENT
Over the past 12 months, the U.S. economy continued to be characterized by
surprisingly robust growth, benign inflation, and unemployment levels that
remained among the lowest in three decades. However, concerns about the
persistent pace of the economy's expansion continued to test the new paradigm,
which holds that the improvements in productivity achieved through technology
enable us to have both economic growth and low inflation at the same time. With
investors watching and reacting to each announcement concerning economic
statistics, volatility increased, especially in the equity markets, and the
spectre of inflation seemed to lurk behind every report. Especially worrisome to
the Federal Reserve was the possibility that tight labor markets would
eventually have an inflationary effect on wages and, consequently, on consumer
prices.
In an effort to pre-empt this threat of inflation, the Fed moved to raise
interest rates by a quarter-point on three separate occasions between June and
November 1999. This brought the federal funds rate - which represents the amount
banks charge one another on overnight loans, establishing the standard for other
short-term rates - from 4.75% to 5.50%, thereby erasing the three rate cuts
enacted by the Fed a year earlier. At its November meeting, the Fed announced
that it would shift to a neutral stance following the latest interest rate
increase. With Y2K on the horizon, followed by the politics of an election year,
investors had some hope that the Fed would put any additional rate hikes on
hold. However, the Fed's indication that it would renew its close attention to
the rate of economic growth left the door open for another tightening.
MUNICIPAL BOND PERFORMANCE
Over the past fiscal year, our exchange-traded municipal bond funds continued to
offer attractive, stable income in a market that places a high premium on yield.
At the end of October 1999, the ratio between long-term municipal yields and
30-year Treasury yields stood at 100.3%, compared with the historical average of
86% for the period 1986-1999. For investors, this meant that quality long-term
municipal bonds offered yields slightly higher than those of long Treasury bonds
- - even before the tax advantages of municipals were taken into account. On an
after-tax basis, municipal bonds continued to present an exceptionally
attractive investment option relative to Treasuries.
During 1999, we have seen the supply of municipal bonds drop off from the
near-record levels of 1998. This was largely due to the increase in interest
rates, which deterred municipal governments from issuing new debt and removed
much of the incentive to refund existing bonds. To date, municipal supply has
declined by approximately 20% from the levels of a year ago. This, in turn,
enhanced the attractiveness of the municipal bonds that were brought to market,
as demand - especially from individual investors - remained strong. We
anticipate that this demand will continue to strengthen as investors
increasingly look at rebalancing their portfolios. With the outlook for tighter
supply and continued demand in the months ahead, Nuveen's established
<PAGE>
market position as the leading sponsor of exchange-traded municipal bond funds
enables us to have excellent access to the bond offerings that have the
potential to add value for our shareholders.
A BALANCED PORTFOLIO:
ENHANCED GROWTH WITH REDUCED RISK
If you are like most investors in the marketplace today, your goals for tax-free
investing probably include capturing high after-tax total returns while
moderating risk. To demonstrate the role that municipal bonds can play in
achieving this goal, Nuveen tracked a balanced portfolio consisting of equities
and municipal bonds and compared its hypothetical investment performance - based
on appropriate market indexes and tax rates - with that of a balanced portfolio
composed of equities and taxable bonds.
Our research showed that, over the past 20 years, the pairing of equities with
municipal bonds provided both superior after-tax total returns and lower levels
of risk than the combination of equities and taxable bonds. Incorporating even a
20% allocation of municipal bonds into an all-equity portfolio cut risk
substantially, with only a small reduction in after-tax total return. Purchasing
shares of a Nuveen Exchange-Traded Municipal Bond Fund provides an easy way to
incorporate the benefits of municipal bonds into a balanced portfolio.
NUVEEN FUNDS:
AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the investment environment, your financial
adviser can serve as a valuable resource in helping you determine if adjustments
are needed in your current asset allocation plan and suggesting investments that
can help diversify your portfolio. By investing in other Nuveen funds, you can
bring balance to your portfolio and provide exposure to the different types of
investments that may enhance your potential for success. Your adviser can also
set up a reinvestment plan designed to purchase additional shares of your Nuveen
Exchange-Traded Fund. For more information on Nuveen's expanding array of funds,
contact your financial adviser for a prospectus detailing all charges and
expenses, or call Nuveen at (800) 621-7227. Please read the prospectus carefully
before you invest or send money.
THE NEW MILLENNIUM
Since this is my last opportunity to talk with you before we enter the new
millennium, I wanted to take a moment to discuss the status of Nuveen's
preparations for that event. We believe that Nuveen is fully prepared for the
upcoming transition, from an operational as well as an investment perspective.
During 1999, Nuveen tested all critical operating systems, and we anticipate no
problems with year-end processing. As we evaluated potential investments over
the year, Nuveen carefully reviewed the progress of each issuer toward Y2K
compliance. Last summer, we requested information from the issuers of all bonds
in the Funds' portfolios, with special attention to the largest and more
volatile holdings. In the following months, we continued to monitor issuers'
progress in this area, assisted by securities industry oversight organizations,
including the Municipal Securities Rulemaking Board and the Securities and
Exchange Commission, as well as rating agencies and insurance companies. Based
on our review, we believe that the majority of issuers are Y2K-compliant. The
diligence of the financial industry as a whole in dealing with this transition
should prove to have ongoing benefits for investors.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we enter the new millennium, we remain committed to maintaining that
reputation and finding the best ways to serve your evolving investment needs.
Thank you for your continued confidence.
Sincerely,
/s/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
December 15, 1999
Sidebar text: "Purchasing shares of a Nuveen Exchange-Traded Municipal Bond Fund
provides an easy way to incorporate the benefits of municipal bonds into a
balanced portfolio."
<PAGE>
Nuveen Exchange-Traded Funds
Portfolio Manager Roundtable
PORTFOLIO MANAGERS STEVE PETERSON, RICK HUBER, AND BILL FITZGERALD DISCUSS THE
MUNICIPAL MARKET, RECENT FUND PERFORMANCE, AND KEY INVESTMENT STRATEGIES FOR THE
NUVEEN NATIONAL EXCHANGE-TRADED FUNDS. STEVE, WHO HAS MANAGED NPP SINCE JULY
1998, ADDED PORTFOLIO MANAGEMENT DUTIES FOR THE NEW NUVEEN DIVIDEND ADVANTAGE
MUNICIPAL FUND (NAD) IN MAY 1999. RICK ASSUMED PORTFOLIO MANAGEMENT OF NMA IN
JULY 1998, WHILE BILL HAS MANAGED NMO SINCE ITS INCEPTION IN 1990.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MUNICIPAL MARKET DURING THE
PAST 12 MONTHS ENDED OCTOBER 31, 1999?
Over the past year, the U.S. economy continued to forge ahead with few signs of
slowing. Among the statistics showing surprising strength in recent months was
gross domestic product (GDP) growth, which rose 5.5% in the third quarter, well
ahead of projections. The growth in GDP was fueled by rising inventories, an
improved trade balance, and strong consumer spending, which continues to serve
as the main engine powering U.S. economic expansion. Commodity prices,
particularly oil and gold, and raw material prices also continued to rise. For
the most part, however, these increases did not translate into higher consumer
prices. Through the end of October 1999, the Consumer Price Index showed
inflation maintaining its low profile, with an annualized increase of 2.8%.
Labor markets remained among the tightest in 30 years, as the national
unemployment average dropped to 4.1% in October 1999, down from 4.5% in October
1998. Also in October, U.S. personal income surged 1.3%, its biggest jump in
more than five years.
Concerned about the potential for an overheated economy, the Federal Reserve
raised short-term interest rates twice during the fiscal year covered by this
report. A third increase, announced on November 16, occurred after the reporting
period for the Funds. According to the Fed's theory, the impact of the two rate
increases on the stock market during the period covered by this report should
have caused consumer confidence to fall and consumer spending to slow, thereby
pre-empting any reemergence of inflation. Despite the evidence of the Fed's
continued vigilance on the inflation front, the cumulative effect of 1999's
economic events has been negative for the fixed-income markets, including
municipal bonds.
HOW DID THESE EVENTS IMPACT SUPPLY AND DEMAND IN THE MUNICIPAL MARKET?
For the first 10 months of 1999, municipal supply across the nation fell just
over 20% from the levels recorded during the same period in 1998. Some of this
decline can be attributed to the rise in interest rates, which deterred
municipalities from issuing long-term debt at higher interest costs. In
addition, the refunding activity involving older debt typically declines in a
rising interest rate environment. Among the states, California and New York
remained the most active issuers in the nation. Although we expect to see
adequate municipal supply for the remainder of the year, Y2K concerns are
expected to affect the new issuance calendar to some extent. To avoid any
potential problems as 1999 turns to 2000, some municipal bond issuers have
accelerated this year's issuance, while others have decided to delay issues
until next year. Issuance should gradually return to a more normal level
following January, with issuance in 2000 expected to be on par with that of
1999.
Over recent months, institutional demand for municipal paper has been weakened
by several events outside the municipal market that have limited the cashflow
available for bond purchases. Insurance companies, which have historically been
major buyers of municipal bonds, have been hit hard by claims from natural
disasters and further hampered by price cutting on insurance premiums in the
property casualty sector, which has hurt earnings. At the same time, fund
redemptions have limited the demand from mutual fund companies, another major
source of institutional demand. In addition, an accelerated corporate bond
issuance calendar, timed to avoid any problems with Y2K, resulted in heavy
corporate bond supply, which vied with municipal bonds for institutional
investor attention.
On the other hand, demand from individual investors has been a bright spot for
municipal bonds during most of 1999, as investors actively worked to rebalance
their portfolios by redirecting assets from equity investments into the
fixed-income market. In 1998, individual investors held more than 30% of
outstanding municipal debt, making them the largest owner class, and statistics
indicate that municipal bond sales to retail investors in 1999 are on track to
beat 1998's record levels.
<PAGE>
HOW DID THE NUVEEN EXCHANGE-TRADED FUNDS PERFORM IN THIS ENVIRONMENT?
For the 12 months ended October 31, 1999, the Funds covered in this report (with
the exception of NAD) produced total returns on net asset value (NAV) ranging
from -5.83% to -5.49%, providing taxable-equivalent total returns1 between
- -2.93% and -2.56% for shareholders in the 31% federal income tax bracket, as
shown in the accompanying table.
This report also includes an overview of the performance of our newest national
exchange-traded fund, the Nuveen Dividend Advantage Municipal Fund (NAD). For
the period from inception in May 1999 through October 31, 1999, NAD posted a
total return on NAV of -8.83%, equivalent to a taxable total return of -7.90%.
LEHMAN LIPPER PEER
INDEX TOTAL GROUP
TOTAL RETURN ON NAV RETURN2 AVERAGE3
--------------------------------------------------------
1-Year Ended Taxable- 1-Year Ended 1-Year Ended
10/31/99 Equivalent1 10/31/99 10/31/99
--------------------------------------------------------
NPP -5.63% -2.93% -1.78% -6.48%
--------------------------------------------------------
NMA -5.83% -2.92% -1.78% -6.48%
--------------------------------------------------------
NMO -5.49% -2.56% -1.78% -6.48%
--------------------------------------------------------
Past performance is not predictive of future results.
For additional information on your fund, see its individual performance overview
in this report.
The underperformance of the Funds' total returns on NAV relative to their Lehman
benchmark can be attributed largely to their durations4. Duration measures a
bond fund's price volatility, or reaction to interest rate movements (prices
fall when rates rise and vice versa). The longer the duration, the more
sensitive the fund's NAV is to changes in interest rates. During a period of
falling interest rates, a longer duration enables a fund's NAV to participate
more fully in market gains. However, when interest rates rise, as they did over
the last year, longer duration can make the fund's NAV more vulnerable to price
declines. As of October 31, 1999, the durations of the three older funds ranged
from 11.47 to 12.82, compared with 7.52 for the Lehman index. Between November
1, 1998, and October 31, 1999, the yield on the Bond Buyer Revenue Bond Index5
rose from 5.28% to 6.18%. This meant that funds with longer durations, like the
Funds in this report, were more likely to underperform the market, as
represented by the Lehman Brothers Municipal Bond Index.
Over the past 12 months, the durations of the Funds covered in this report
lengthened considerably due to market action, trading activity, and bond calls
that removed shorter bonds from each fund. Proceeds from sold or called bonds
were reinvested in issues with longer durations, which provided attractive
yields and better call protection. Lengthening the Funds' durations should help
position the Funds to regain net asset value as the bond market recovers. The
fund duration of the newly established NAD was 19.88, which is typical for a new
exchange-traded fund. Over time, we will look for opportunities in the market to
purchase bonds that can move NAD's duration - on an unleveraged basis - closer
to that of the market as a whole.
HOW WERE THE FUNDS' DIVIDENDS AND SHARE PRICES AFFECTED?
During the past 12 months, good call protection helped support the dividends of
NPP, NMA, and NMO and shield the income of these funds from erosion. As of
October 31, 1999, NPP had provided shareholders with steady dividends for 12
consecutive months, while NMA and NMO had produced 24 consecutive months of
stable dividends. All of the Nuveen funds covered in this report continued to
provide competitive market yields.
Over the past year, rising interest rates, inflation worries, and the
uncertainty surrounding the timing of the Federal Reserve's moves created a
challenging environment in the fixed-income markets. In addition, concerns about
the impact of the transition to the year 2000 precipitated an early start to
tax-swap season, as investors attempt to offset profits in the equity markets by
selling fixed-income investments at a loss. All of these factors negatively
impacted the market demand for exchange-traded funds, especially NPP, which had
been trading at a premium to its net asset value. This resulted in declines in
share price across the board. Since the prevailing interest rate environment in
October 1999 was higher than that of a year earlier, the Funds' NAVs also
declined, as bond prices fell while interest rates rose. As a result of these
factors, NPP saw its premium (share price above NAV) move to a discount (share
price below NAV), and the discounts on NMA and NMO widened over the past 12
months.
PREMIUM/ TOTAL RETURN
MARKET YIELD DISCOUNT6 ON SHARE PRICE
--------------------------------------------------------------------------
Taxable- 1-Year Ended Taxable-
10/31/99 Equivalent1 10/31/98 10/31/99 10/31/99 Equivalent1
--------------------------------------------------------------------------
NPP 6.96% 10.09% 0.05% -5.50% -10.76% -8.06%
--------------------------------------------------------------------------
NMA 7.31% 10.59% -0.24% -2.54% -8.16% -5.25%
--------------------------------------------------------------------------
NMO 7.43% 10.77% -0.14% -3.88% -9.18% -6.25%
--------------------------------------------------------------------------
NAD 6.52% 9.45% NA 6.61% -7.29%* -6.40%*
--------------------------------------------------------------------------
* Total return since inception (5/26/99).
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/
total return of the Nuveen fund on an after-tax basis. The taxable-
equivalent yield is based on the fund's current market yield and a
federal income tax rate of 31%, while the taxable-equivalent total return
is based on the annualized total return and the 31% federal tax rate.
2 These funds are compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. Results for the index do not reflect any initial or ongoing
expenses.
3 The returns for these funds are compared with the average annualized return
of the 46 funds in the Lipper General Leveraged Closed-End Municipal Debt
Funds category. Fund and Lipper returns assume reinvestment of dividends.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for each fund and therefore differs from the
duration of the actual portfolio of individual bonds that make up the fund.
Unless otherwise noted, references to duration in this commentary are
intended to indicate fund duration.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term
municipal revenue bonds.
6 A fund's premium or discount represents the percentage difference between
the fund's share price and its net asset value (NAV).
<PAGE>
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE PAST 12 MONTHS?
Over the past year, these Funds were managed with the goals of supporting and
strengthening their long-term dividend capabilities, improving call protection,
and enhancing the Funds' tax efficiency by offsetting potential capital gains
with capital losses.
Enhanced tax efficiency has been an increasing focus for us over the past six
months, as the rising interest rate environment offered opportunities to benefit
the Funds through active trading. The increased level of recent trading activity
is reflected in the transaction volume figure for the Nuveen Exchange-Traded
Funds for the third quarter of 1999, which was 10 times that of the same period
in 1998. The strategy we are employing involves selling selected bonds that are
trading at a loss, recognizing the capital losses, and then rolling the proceeds
into bonds with similar characteristics, but offering current market yields and
better call protection. Some of the bonds we sold were due to mature or
scheduled to be called within the next few months, while others were bonds that
we had purchased earlier this year that were earning less than bonds that were
available in the market. This trading not only gave us capital losses with which
to offset current and future capital gains, thereby protecting shareholders from
additional taxes, but also - in most cases - increased the net earnings of the
Funds. If current market conditions persist, we will continue to focus on this
strategy.
Although new issue supply in the municipal market declined from last year's
levels, we were able to identify attractive bonds in several sectors that added
to the Funds' diversification. Among the sectors where we found value were
utilities and transportation, especially in airport and toll road bonds. In NMO,
we are currently seeing increased opportunities in the transportation sector on
the West Coast, particularly California, where transportation infrastructure
projects have received little attention for 20 years. Today, increased demand is
being met with a growing number of toll road and rail projects. We have also
increased our exposure to the New York market, buying bonds backed by dedicated
special taxes, due to the improving credit quality of both New York state and
city. In addition to enhancing diversification, these bonds provide attractive
income, with the potential of being an excellent example of the types of
purchases we made to support the Funds' dividends.
All four funds have holdings in the healthcare sector, which has been beset with
concerns about deregulation and profitability. This sector is a dynamic and
volatile area of the market and has created credit and rating pressures for
certain healthcare organizations and caused some investors to avoid the sector
entirely. Since one of Nuveen's strategies is to find value in sectors and bonds
that have been overlooked by the rest of the market, the healthcare sector has
been an area where Nuveen research and our prudent investment approach enable us
to find and exploit opportunities that can add value for our shareholders. As
credit spreads (or the difference between higher credit quality securities and
those of lower credit quality) widened in recent months, rewarding investors
with higher yields for assuming incremental risk, we continued to watch for
selective opportunities to purchase attractive lower-rated issues with good
future total return prospects. These prospects should be further enhanced when
the federal government acts on proposals affecting federal reimbursements for
Medicare, which should improve the creditworthiness of some healthcare
organizations.
The Funds continue to offer excellent credit quality, with the portion of the
Funds' assets invested in bonds rated AAA/U.S. guaranteed and AA ranging from
71% to 84% at the end of October 1999. Each of the three older funds has a high
percentage (23%-28%) of U.S. guaranteed bonds, representing a large number of
pre-refunded and escrowed issues. Over the next six months, shareholders can
expect to see those percentages drop between 10% and 15% due to bond calls and
sales. The prices of many of the U.S. guaranteed bonds have appreciated to their
full extent, and we are taking advantage of opportunities to sell at attractive
prices before they are called from our portfolios. The credit quality of the
Funds will remain high, however, since these bonds are being replaced with
insured and AAA bonds. All four funds also had allocations (8% to 17%) of BBB
and non-rated bonds. These lower-rated bonds generally provided enhanced levels
of yield, especially as credit spreads widened. In NAD, the investment
guidelines allow us to further exploit credit spread differentials by investing
up to 20% of the Fund's net assets in non-investment grade bonds rated BB and B.
Nuveen's research expertise, along with our presence in the municipal market,
means that shareholders can be assured that the creditworthiness of all issuers
of non-investment grade bonds is subjected to Nuveen's stringent review process
before these bonds are included in the Fund's portfolio.
<PAGE>
All of the Nuveen funds in this report issue Muni-Preferred shares that pay
short-term interest rates to investors seeking short-term liquidity. The
proceeds from these preferred shares are used to buy additional long-term bonds
for the leveraged funds' portfolios. These bonds can generate additional income
for the portfolios, but may also increase volatility, including lengthening the
Funds' durations. During the past year, the leverage ratios of NMA and NMO fell
below the Nuveen guideline of 35%. This led to the issuance of new MuniPreferred
shares for both funds in May. (NPP's leverage ratio remained above Nuveen's 35%
guideline over the past 12 months.) Nuveen releveraged the Funds both to restore
the original leverage ratio of 35% and to provide the potential for increased
incremental tax-free income for common shareholders.
In the area of bond calls, the newly established NAD offers excellent levels of
call protection, due to the purchase of a number of noncallable bonds. This
should provide additional protection and stability for the Fund's dividend over
the next 12 years, an exceptionally long period, even for a new fund. The other
three funds, which were assembled between June 1989 and March 1990, are now in
the part of a bond's life when the likelihood of bond calls increases. Ten years
after the original issue date, issuers typically have their first opportunity to
call, or redeem, outstanding bonds. Calls are more likely to occur if current
interest rates are more favorable to the issuer than the rates that prevailed
when the bonds were first issued. Over the next four years, NPP's greatest
exposure to bond calls occurs in the year 2000, when 13% of the Fund's portfolio
is callable. In 2000, both NMA and NMO also face calls on 25% and 30%,
respectively, of their portfolios.
To reduce the impact of calls, we continuously work on strategies designed to
enhance the Funds' call protection. Currently, that includes selling bonds with
short calls and extending the Funds' call protection by buying new issues with
favorable call features. As mentioned earlier, we have been active buyers in the
current market as we try to take advantage of the higher interest rate
environment. Given the current level of bond yields, we are evaluating suitable
replacements for older bonds, focusing on undervalued bonds that have the
potential to support the Funds' dividends and enhance portfolio structure. This
should enable us to continue providing a competitive level of dividends for our
shareholders.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUNDS?
In the months ahead, we plan to take advantage of the higher yields currently
available in the municipal market to enhance our portfolio holdings and the
dividend capabilities of the Funds. We will also continue to work on strategies
designed to manage the Funds' call exposure and enhance their total return
potential. While credits spreads remain wider, we will continue to monitor the
BBB and non-rated sector, watching for additional opportunities to take
advantage of higher yields, especially in NPP and NAD. We believe that the
durations of the three older funds are currently well positioned for a potential
recovery in the bond market, but as stated earlier - NAD's duration will be
shortened as market opportunities present themselves.
The ability to implement strategies with the potential to benefit the Funds
demonstrates the value that can be added by an active bond manager such as
Nuveen. As an experienced investment manager knowledgeable about the unique
aspects of the municipal market, we are in the marketplace every day, monitoring
market dynamics, looking for opportunities, and trying to capitalize on them to
the benefit of shareholders.
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc.
Performance Overview
As of October 31, 1999
NPP
PORTFOLIO STATISTICS
Inception Date 6/89
- --------------------------------------------------
Share Price $12 15/16
- --------------------------------------------------
Net Asset Value $13.69
- --------------------------------------------------
Market Yield 6.96%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 10.09%
- --------------------------------------------------
Fund Net Assets ($000) $1,220,432
- --------------------------------------------------
Average Effective Maturity (Years) 18.28
- --------------------------------------------------
Leverage-Adjusted Duration 12.82
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -10.76% -5.63%
- --------------------------------------------------
5-Year 6.13% 5.77%
- --------------------------------------------------
10-Year 6.02% 7.13%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -8.06% -2.93%
- --------------------------------------------------
5-Year 9.24% 8.82%
- --------------------------------------------------
10-Year 9.28% 10.39%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 23%
- --------------------------------------------------
Tax Obligation/Limited 15%
- --------------------------------------------------
Tax Obligation/General 11%
- --------------------------------------------------
Healthcare 10%
- --------------------------------------------------
Utilities 10%
- --------------------------------------------------
BAR CHART:
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE3
11/98 0.075
12/98 0.075
1/99 0.075
2/99 0.075
3/99 0.075
4/99 0.075
5/99 0.075
6/99 0.075
7/99 0.075
8/99 0.075
9/99 0.075
10/99 0.075
SHARE PRICE PERFORMANCE
11/6/98 15.19
15.5
15.38
15.44
15.13
15.25
15.25
15.13
14.69
14.56
14.69
14.75
14.56
14.75
15
15.06
14.88
15
15
15.125
15
15
15
15
14.69
14.5
14.56
14.75
14.81
14.94
14.69
15.06
14.94
14.88
14.88
14.75
14.5
13.94
13.88
14.06
13.81
13.25
12.75
12.88
12.88
12.44
12.5
10/31/99 12.94
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL tax rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1998 of $0.0172 per share.
<PAGE>
Nuveen Municipal Advantage Fund, Inc.
Performance Overview
As of October 31, 1999
NMA
PORTFOLIO STATISTICS
Inception Date 12/89
- --------------------------------------------------
Share Price $13 5/8
- --------------------------------------------------
Net Asset Value $13.98
- --------------------------------------------------
Market Yield 7.31%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 10.59%
- --------------------------------------------------
Fund Net Assets ($000) $958,923
- --------------------------------------------------
Average Effective Maturity (Years) 17.98
- --------------------------------------------------
Leverage-Adjusted Duration 12.08
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -8.16% -5.83%
- --------------------------------------------------
5-Year 7.08% 5.98%
- --------------------------------------------------
Since Inception 6.05% 7.18%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -5.25% -2.92%
- --------------------------------------------------
5-Year 10.25% 9.07%
- --------------------------------------------------
Since Inception 9.28% 10.42%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 27%
- --------------------------------------------------
Utilities 14%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
Transportation 9%
- --------------------------------------------------
Water and Sewer 8%
- --------------------------------------------------
BAR CHART:
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
11/98 0.083
12/98 0.083
1/99 0.083
2/99 0.083
3/99 0.083
4/99 0.083
5/99 0.083
6/99 0.083
7/99 0.083
8/99 0.083
9/99 0.083
10/99 0.083
LINE CHART:
SHARE PRICE PERFORMANCE
11/6/98 16.06
16.25
16.25
16.44
16.38
16.5
16.44
16.56
16.5
16.06
16
16
16.19
16.5
16.44
16.44
16.5
16.56
16.63
16.56
16.44
16.13
16
16.19
15.81
15.56
15.56
15.44
15.38
15.69
15.56
15.56
15.75
15.69
15.63
15.5
15.38
15.19
15.13
14.88
14.75
14.56
14.38
14.38
14.25
13.56
13.56
10/31/99 13.63
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL tax rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
<PAGE>
Nuveen Municipal Market Opportunity Fund, Inc.
Performance Overview
As of October 31, 1999
NMO
PORTFOLIO STATISTICS
Inception Date 3/90
- --------------------------------------------------
Share Price $13 9/16
- --------------------------------------------------
Net Asset Value $14.11
- --------------------------------------------------
Market Yield 7.43%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 10.77%
- --------------------------------------------------
Fund Net Assets ($000) $1,022,643
- --------------------------------------------------
Average Effective Maturity (Years) 18.33
- --------------------------------------------------
Leverage-Adjusted Duration 11.47
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -9.18% -5.49%
- --------------------------------------------------
5-Year 7.46% 6.08%
- --------------------------------------------------
Since Inception 6.00% 7.24%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -6.25% -2.56%
- --------------------------------------------------
5-Year 10.66% 9.17%
- --------------------------------------------------
Since Inception 9.23% 10.46%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 28%
- --------------------------------------------------
Tax Obligation/Limited 14%
- --------------------------------------------------
Transportation 14%
- --------------------------------------------------
Tax Obligation/General 13%
- --------------------------------------------------
Utilities 7%
- --------------------------------------------------
BAR CHART:
1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE3
11/98 0.084
12/98 0.084
1/99 0.084
2/99 0.084
3/99 0.084
4/99 0.084
5/99 0.084
6/99 0.084
7/99 0.084
8/99 0.084
9/99 0.084
10/99 0.084
LINE CHART:
SHARE PRICE PERFORMANCE
11/6/98 16.06
16.38
16.5
16.75
16.5
16.63
16.5
16.56
16.38
16
16.31
16.19
16.13
16.31
16.31
16.44
16.44
16.44
16.56
16.5
16.38
16.25
16.19
16.13
15.88
15.63
15.69
15.56
15.81
15.81
15.75
15.81
15.94
15.88
15.88
15.63
15.47
15.47
15.31
15.13
15
14.81
14.56
14.38
14.5
14.31
13.56
13.44
10/31/99 13.56
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL tax rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains distributions in December 1998
of $0.0149 per share.
<PAGE>
Nuveen Dividend Advantage Municipal Fund
Performance Overview
As of October 31, 1999
NAD
PORTFOLIO STATISTICS
Inception Date 5/99
- --------------------------------------------------
Share Price $13 5/8
- --------------------------------------------------
Net Asset Value $12.78
- --------------------------------------------------
Market Yield 6.52%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 9.45%
- --------------------------------------------------
Fund Net Assets ($000) $794,783
- --------------------------------------------------
Average Effective Maturity (Years) 23.77
- --------------------------------------------------
Leverage-Adjusted Duration 19.88
- --------------------------------------------------
TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
Since Inception -7.29% -8.83%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
- --------------------------------------------------
Since Inception -6.40% -7.90%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Healthcare 20%
- --------------------------------------------------
Tax Obligation/General 19%
- --------------------------------------------------
Tax Obligation/Limited 17%
- --------------------------------------------------
Transportation 11%
- --------------------------------------------------
Water and Sewer 8%
- --------------------------------------------------
BAR CHART:
1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE
7/99 0.074
8/99 0.074
9/99 0.074
10/99 0.074
LINE CHART:
SHARE PRICE PERFORMANCE
5/28/99 15.0625
15
15
15.06
15.06
15.06
15.06
15.06
15
15
15.06
14.75
14.75
14.69
14.63
14.69
14.5
14.25
14.44
14.5
14
13.25
10/31/99 13.63
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL tax rate is based on the current market yield and a federal income
tax rate of 31%.
2 Taxable-equivalent total return is based on the total return and a federal
income tax rate of 31%. It represents the return on a taxable investment
necessary to equal the return of the Nuveen fund on an after-tax basis.
<PAGE>
<TABLE>
Shareholder Meeting Report
THE SHAREHOLDER MEETING WAS HELD JULY 28, 1999.
<CAPTION>
NPP
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Robert P. Bremner
For 49,254,370 3,615 3,039 3,151 3,568
Withhold 662,151 -- 46 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,916,521 3,615 3,085 3,169 3,604
====================================================================================================================================
Lawrence H. Brown
For 49,316,998 3,615 3,043 3,151 3,568
Withhold 599,523 -- 42 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,916,521 3,615 3,085 3,169 3,604
====================================================================================================================================
Anne E. Impellizzeri
For 49,362,615 3,615 3,043 3,151 3,568
Withhold 553,906 -- 42 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,916,521 3,615 3,085 3,169 3,604
====================================================================================================================================
Peter R. Sawers
For 49,383,359 3,615 3,043 3,151 3,568
Withhold 533,162 -- 42 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,916,521 3,615 3,085 3,169 3,604
====================================================================================================================================
William J. Schneider
For -- 3,615 3,039 3,151 3,568
Withhold -- -- 46 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,615 3,085 3,169 3,604
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,615 3,039 3,151 3,568
Withhold -- -- 46 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,615 3,085 3,169 3,604
====================================================================================================================================
Judith M. Stockdale
For 49,402,387 3,615 3,043 3,151 3,568
Withhold 514,134 -- 42 18 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,916,521 3,615 3,085 3,169 3,604
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 49,188,523 3,574 3,076 3,154 3,580
Against 232,658 -- -- 2 20
Abstain 495,340 41 9 13 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 49,916,521 3,615 3,085 3,169 3,604
====================================================================================================================================
<PAGE>
<CAPTION>
Shareholder Meeting Report
NMA
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 35,857,897 2,503 2,645 2,415 1,950 2,418
Withhold 382,406 18 5 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total 36,240,303 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
Lawrence H. Brown
For 35,870,376 2,503 2,645 2,415 1,950 2,418
Withhold 369,927 18 5 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total 36,240,303 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
Anne E. Impellizzeri
For 35,905,843 2,503 2,645 2,415 1,950 2,418
Withhold 334,460 18 5 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total 36,240,303 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
Peter R. Sawers
For 35,906,300 2,503 2,645 2,415 1,950 2,418
Withhold 334,003 18 5 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total 36,240,303 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
William J. Schneider
For -- 2,503 2,643 2,415 1,950 2,418
Withhold -- 18 7 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,503 2,645 2,415 1,950 2,418
Withhold -- 18 5 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
Judith M. Stockdale
For 35,941,988 2,503 2,645 2,415 1,950 2,418
Withhold 298,315 18 5 29 -- 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total 36,240,303 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 35,750,333 2,506 2,579 2,437 1,950 2,415
Against 146,479 10 -- 5 -- 1
Abstain 343,491 5 71 2 -- 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 36,240,303 2,521 2,650 2,444 1,950 2,424
====================================================================================================================================
<PAGE>
<CAPTION>
Shareholder Meeting Report
NMO
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-F
====================================================================================================================================
Robert P. Bremner
For 37,812,462 3,560 3,559 3,170 3,725
Withhold 400,772 11 144 30 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 38,213,234 3,571 3,703 3,200 3,729
====================================================================================================================================
Lawrence H. Brown
For 37,862,463 3,560 3,563 3,170 3,725
Withhold 350,771 11 140 30 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 38,213,234 3,571 3,703 3,200 3,729
====================================================================================================================================
Anne E. Impellizzeri
For 37,890,605 3,560 3,563 3,170 3,725
Withhold 322,629 11 140 30 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 38,213,234 3,571 3,703 3,200 3,729
====================================================================================================================================
Peter R. Sawers
For 37,919,551 3,566 3,563 3,170 3,725
Withhold 293,683 5 140 30 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 38,213,234 3,571 3,703 3,200 3,729
====================================================================================================================================
William J. Schneider
For -- 3,560 3,559 3,170 3,723
Withhold -- 11 144 30 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,571 3,703 3,200 3,729
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,560 3,559 3,170 3,725
Withhold -- 11 144 30 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,571 3,703 3,200 3,729
====================================================================================================================================
Judith M. Stockdale
For 37,924,335 3,566 3,563 3,170 3,725
Withhold 288,899 5 140 30 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 38,213,234 3,571 3,703 3,200 3,729
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 37,725,332 3,549 3,563 3,170 3,728
Against 150,274 14 -- -- --
Abstain 337,628 8 140 30 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 38,213,234 3,571 3,703 3,200 3,729
====================================================================================================================================
</TABLE>
REPORT OF INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Performance Plus Municipal Fund, Inc.,
Nuveen Municipal Advantage Fund, Inc., Nuveen Municipal Market Opportunity Fund,
Inc. and Nuveen Dividend Advantage Municipal Fund as of October 31, 1999, and
the related statements of operations and changes in net assets and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
October 31, 1999, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Performance Plus Municipal Fund, Inc., Nuveen Municipal Advantage Fund,
Inc., Nuveen Municipal Market Opportunity Fund, Inc. and Nuveen Dividend
Advantage Municipal Fund at October 31, 1999, and the results of their
operations, changes in their net assets and financial highlights for the periods
indicated therein in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 21, 1999
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Alabama - 0.7%
$ 3,615,000 Alabama Water Pollution Control Authority, Revolving Fund Loan Bonds, 8/05 at 100 AAA $ 3,846,360
Series 1994, 6.750%, 8/15/17
5,075,000 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/07 at 101 AAA 4,851,396
Series 1997-A, 5.625%, 2/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.1%
875,000 Alaska Housing Finance Corporation, Collateralized Bonds, 6/00 at 102 AAA 884,958
1989 First Series (Veterans Mortgage Program), 7.450%, 12/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.5%
5,300,000 Yuma Regional Medical Center on Behalf of Hospital District No. 1 8/02 at 101 1/2 N/R*** 5,856,394
of Yuma County, Arizona, Hospital Revenue Improvement and
Refunding Bonds (Yuma Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 (Pre-refunded to 8/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.8%
7,595,000 Arkansas Development Finance Authority, Single Family Mortgage 1/07 at 102 AAA 7,631,228
Revenue Bonds, 1996 Series H, 6.100%, 7/01/30
(Alternative Minimum Tax)
3,105,000 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101 1/2 AAA 2,696,072
Bonds, 1998 Series B, 5.300%, 7/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
California - 8.7%
Anaheim Public Financing Authority, Lease Revenue Bonds (Anaheim
Public Improvements Project), Subordinate Lease Revenue Bonds,
1997 Series C:
11,000,000 0.000%, 9/01/20 No Opt. Call AAA 3,141,490
25,855,000 0.000%, 9/01/24 No Opt. Call AAA 5,763,597
11,900,000 State Public Works Board of the State of California, Lease Revenue 9/00 at 102 AAA 12,388,376
Bonds (The Trustees of the California State University),
1990 Series A (California State University Library Projects),
6.250%, 9/01/16 (Pre-refunded to 9/01/00)
5,000,000 Mt. Diablo Hospital District, California Insured Hospital Revenue 12/03 at 102 AAA 4,434,500
Bonds, 1993 Series A, 5.125%, 12/01/23
13,450,000 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA 15,551,159
County, California), 1995 Revenue Refunding Bonds (Ontario
Redevelopment Project No.1), 7.200%, 8/01/17
20,420,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 22,854,677
Residential Mortgage Revenue Refunding Bonds, 1991 Series A,
7.150%, 2/01/10
2,325,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 2,852,031
Restructured Single Family Mortgage Revenue Bonds,
Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax)
8,140,000 San Bernardino Joint Powers Financing Authority, Lease 12/05 at 102 A1 7,614,644
Revenue Bonds (State of California Department of Transportation
Lease), 1995 Series A, 5.500%, 12/01/20
10,000,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102 AAA 10,622,100
Series 1995 (Medical Center Financing Project),
5.500%, 8/01/15 (Pre-refunded to 8/01/05)
4,075,000 Southern California Public Power Authority (Palo Verde Project), 7/03 at 102 A+*** 3,732,211
Power Project Revenue Bonds, 1993 Refunding Series A,
5.000%, 7/01/15
15,745,000 Walnut Valley Unified School District (Los Angeles County, 8/11 at 103 AAA 17,938,908
California), General Obligation Refunding Bonds, Series 1997A,
7.200%, 2/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.0%
3,000,000 Colorado Health Facilities Authority, Revenue Bonds (National 1/08 at 101 A 2,611,200
Jewish Medical and Research Center Project), Series 1998,
5.375%, 1/01/28
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Colorado (continued)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
$ 1,020,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Aaa $ 1,118,450
(Pre-refunded to 11/15/02)
3,980,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 BBB+ 4,237,824
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
1,035,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 Aaa 1,097,628
(Pre-refunded to 11/15/00)
10,910,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 BBB+ 11,421,897
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
1,715,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Aaa 1,895,590
(Pre-refunded to 11/15/01)
4,755,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 BBB+ 5,155,228
955,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 1,024,295
(Pre-refunded to 11/15/01)
2,640,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 2,776,858
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
1,000,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 1,053,580
(Pre-refunded to 11/15/01)
3,720,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 3,830,782
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 3.4%
15,000,000 State of Florida, Full Faith and Credit, State Board of Education, 6/10 at 101 AA+ 14,465,250
Public Education Capital Outlay Refunding Bonds, 1999 Series D,
5.750%, 6/01/22 (DD, settling on 3/15/00)
25,935,000 City of St. Petersburg Health Facilities Authority (Florida), 12/99 at 102 Aaa 26,542,138
Allegany Health System Revenue Bonds (St. Mary's Hospital, Inc.),
Series 1985B, 7.750%, 12/01/15 (Pre-refunded to 12/01/99)
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 4.2%
1,200,000 City of Atlanta, Georgia, General Obligation Refunding Bonds, 12/08 at 100 AAA 1,040,544
Series 1998, 5.000%, 12/01/23
5,000,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 4,795,450
Series 1999A, 5.500%, 11/01/22
9,000,000 George L. Smith II World Congress Center Authority, Revenue 7/00 at 102 Aaa 9,369,270
Bonds (Domed Stadium Project), Series 1990, 7.875%, 7/01/20
(Alternative Minimum Tax)
2,000,000 George L. Smith II World Congress Center Authority, Refunding 7/10 at 101 AAA 1,840,860
Revenue Bonds (Domed Stadium Project), Series 2000,
5.500%, 7/01/20 (Alternative Minimum Tax) (DD, settling on 4/04/00)
10,000,000 Development Authority of Monroe County (Georgia), Pollution 4/00 at 102 A+ 10,209,400
Control Revenue Bonds (Georgia Power Company Plant-Scherer
Project), Second Series 1994, 6.750%, 10/01/24
25,000,000 Private Colleges and Universities Authority (Georgia), Revenue 11/09 at 101 Aa1- 23,505,000
Bonds (Emory University Project), Series 1999A, 5.500%, 11/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 13.7%
3,000,000 City of Chicago, General Obligation Library Bonds, Series 1997, 1/08 at 102 AAA 2,927,850
5.750%, 1/01/17
20,500,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 17,891,580
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/30
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1998A:
10,000,000 0.000%, 12/01/19 No Opt. Call AAA 2,904,500
21,800,000 0.000%, 12/01/23 No Opt. Call AAA 4,915,464
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1999A:
10,000,000 0.000%, 12/01/20 No Opt. Call AAA 2,725,500
30,160,000 0.000%, 12/01/22 No Opt. Call AAA 7,250,464
16,715,000 0.000%, 12/01/23 No Opt. Call AAA 3,768,898
5,000,000 City of Chicago, Illinois, Gas Supply Revenue Bonds, 5/00 at 102 AA- 5,186,450
1990 Series A (The Peoples Gas Light and Coke Company Project),
8.100%, 5/01/20 (Alternative Minimum Tax)
9,145,000 City of Chicago, Illinois, Chicago Midway Airport Revenue Bonds, 1/07 at 101 AAA 8,371,516
1996 Series A, 5.500%, 1/01/29
10,600,000 Illinois Development Finance Authority, Revenue and Refunding 2/00 at 102 Baa2*** 10,929,024
Bonds, Series 1990A (Columbus-Cuneo-Cabrini Medical Center),
8.500%, 2/01/15 (Pre-refunded to 2/01/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
Illinois Development Finance Authority, Multi-Family Housing
Revenue Bonds, Series 1992 (Town and Garden Apartments Project):
$ 5,130,000 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 N/R $ 5,420,922
5,960,000 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 N/R 6,221,048
1,000,000 Illinois Educational Facilities Authority, Revenue Bonds, Midwestern 5/08 at 101 A 915,730
University, Series 1998B, 5.500%, 5/15/18
10,000,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue 12/03 at 102 Aa1*** 10,581,000
Bonds, The University of Chicago, Series 1985 Remarketed,
5.700%, 12/01/25 (Pre-refunded to 12/01/03)
12,910,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1994A 8/04 at 102 AA 12,623,656
(Northwestern Memorial Hospital), 6.000%, 8/15/24
4,620,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B 2/00 at 102 AA 4,751,855
(Northwestern Memorial Hospital), 7.200%, 8/15/07
4,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/09 at 101 A- 3,501,480
Series 1999 (Silver Cross Hospital and Medical Centers),
5.250%, 8/15/15
6,330,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/08 at 102 A 5,714,534
Series 1998 (Midwest Physician Group Ltd.), 5.500%, 11/15/19
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
16,570,000 0.000%, 12/15/20 No Opt. Call AAA 4,505,383
23,550,000 0.000%, 12/15/22 No Opt. Call AAA 5,647,997
23,575,000 0.000%, 12/15/23 No Opt. Call AAA 5,302,961
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Refunding Bonds, Series 1998A:
10,280,000 5.500%, 12/15/23 No Opt. Call AAA 9,709,460
3,000,000 5.500%, 6/15/29 No Opt. Call AAA 2,804,910
17,865,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 17,447,138
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999, 5.750%, 6/01/23
6,090,000 Sherman, Illinois, Mortgage Revenue Bonds (Villa Vianney), 10/09 at 102 AAA 6,090,000
GNMA Series 1999 Refunding, 6.450%, 10/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.2%
3,750,000 Fort Wayne International Airport Air Trade Center Building 1/08 at 101 Aaa 3,194,813
Corporation (Allen County, Indiana), First Mortgage Bonds,
Series 1998, 5.000%, 1/15/20 (Alternative Minimum Tax)
5,000,000 Fort Wayne South Side School Building Corporation, First Mortgage 1/04 at 102 AAA 5,356,150
Bonds, Series 1994, Allen County, Indiana, 6.125%, 1/15/12
(Pre-refunded to 1/15/04)
5,250,000 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/04 at 102 AAA 5,327,228
Series 1994A Guarantee Revenue Bonds, 6.000%, 2/01/16
Indiana Health Facility Financing Authority, Revenue Bonds,
Series 1997 (Ancilla Systems Incorporated Obligated Group):
15,380,000 5.250%, 7/01/17 7/07 at 101 AAA 13,937,971
13,735,000 5.250%, 7/01/22 7/07 at 101 AAA 12,240,495
4,980,000 Indiana Municipal Power Agency, Special Obligation Bonds, 11/02 at 100 AAA 4,555,903
First Crossover Series and Power Supply System Refunding
Revenue Bonds, 1998 Series B, 5.300%, 1/01/16
(Pre-refunded to 11/26/02)
5,730,000 Michigan City School Building Corporation, First Mortgage Bonds, 12/04 at 102 AAA 6,050,651
Series 1994 A, LaPorte and Porter Counties, Indiana, 6.125%, 12/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.5%
5,815,000 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, 11/99 at 101 Aaa 5,880,361
1988 Issue B (GNMA Mortgage-Backed Securities Program),
8.250%, 5/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.9%
10,000,000 County of Carroll, Kentucky, Collateralized Pollution Control 9/02 at 102 Aa2 10,837,300
Revenue Bonds (Kentucky Utilities Company Project),
1992 Series A, 7.450%, 9/15/16
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Louisiana - 5.7%
$ 3,310,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 12/00 at 103 Aaa $ 3,422,970
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
Series 1988F, 7.875%, 12/01/21 (Alternative Minimum Tax)
1,600,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 10/07 at 102 Aaa 1,546,816
Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Series 1996C-1, 5.750%, 10/01/26
5,035,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 10/07 at 102 Aaa 4,940,141
Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Series 1997B-1, 5.750%, 10/01/26
6,000,000 East Baton Rouge Mortgage Finance Authority (Composite Remarketing, 4/08 at 101 Aaa 5,314,980
Refunding and New Issue), Single Family Mortgage Revenue Bonds
(GNMA and FNMA Mortgage-Backed Securities Program),
Series 1998A, 5.450%, 10/01/30 (Alternative Minimum Tax)
4,250,000 Parish of Jefferson Home Mortgage Authority (Louisiana), GNMA 12/00 at 103 Aaa 4,388,975
Collateralized Single Family Mortgage Revenue Bonds, Series 1989A,
7.875%, 12/01/21 (Alternative Minimum Tax)
35,700,000 Louisiana Stadium and Exposition District, Hotel Occupancy 7/06 at 102 AAA 37,976,232
Tax Bonds, Series 1996, 5.750%, 7/01/26 (Pre-refunded to 7/01/06)
5,630,000 New Orleans Housing Development Corporation, Multifamily Housing 6/03 at 100 AAA 5,906,771
Revenue Refunding Bonds, Series 1990A (Curran Place
Apartments/Fannie Mae Collateralized), 7.700%, 8/01/23
6,500,000 City of Shreveport, State of Louisiana, Water and Sewer Revenue 6/03 at 103 AAA 6,589,635
Bonds, 1986 Series A, 5.950%, 12/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.9%
11,000,000 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102 AA 10,434,270
1994 Series A, 5.700%, 11/15/26
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.3%
7,475,000 Housing Opportunities Commission of Montgomery County 7/04 at 102 Aaa 7,579,800
(Montgomery County, Maryland), Multifamily Housing Revenue Bonds,
1994 Series A, 6.250%, 7/01/28
7,090,000 City of Takoma Park, Maryland, Hospital Facilities Refunding and No Opt. Call AAA 7,753,199
Improvement Revenue Bonds (Washington Adventist Hospital),
Series 1995, 6.500%, 9/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.2%
10,065,000 City of Boston, Massachusetts, Boston City Hospital Revenue Bonds 8/00 at 102 Aaa 10,532,721
(FHA-Insured Mortgage), Series A, 7.625%, 2/15/21
(Pre-refunded to 8/15/00)
14,375,000 Massachusetts Bay Transportation Authority, General Transportation 3/01 at 102 AAA 15,326,481
System Bonds, 1990 Series B, 7.875%, 3/01/21 (Pre-refunded to 3/01/01)
410,000 Massachusetts Municipal Wholesale Electric Company, Power Supply No Opt. Call BBB+ 462,767
System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18
Massachusetts Development Finance Agency, Revenue Bonds,
Northern Berkshire Community Services, Inc. Issue, 1999 Series A:
1,500,000 6.250%, 8/15/19 8/09 at 101 A 1,461,645
3,725,000 6.250%, 8/15/25 8/09 at 101 A 3,665,996
10,100,000 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 10,541,976
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
1,420,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 Aaa 1,130,647
Revenue Bonds, Southcoast Health System Obligated Group Issue,
Series A, 4.750%, 7/01/27
8,000,000 Massachusetts Water Resources Authority, General Revenue Bonds, 4/00 at 102 AAA 8,278,880
1990 Series A, 7.500%, 4/01/16 (Pre-refunded to 4/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.7%
17,000,000 School District of the City of Birmingham, County of Oakland, 11/07 at 100 AAA 14,009,020
State of Michigan, School Building and Site Bonds, Series 1998,
4.750%, 11/01/24
9,500,000 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101 AAA 8,287,990
(Senior Lien) Bonds, Series 1997-A, 5.000%, 7/01/21
4,220,000 Grand Rapids Housing Corporation, Multifamily Revenue Refunding 1/04 at 104 AAA 4,480,965
Bonds, Series 1992 (FHA-Insured Mortgage Loan-Section 8
Assisted Elderly Project), 7.375%, 7/15/41
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan (continued)
$ 4,030,000 City of Hancock Hospital Finance Authority, FHA-Insured Mortgage 8/08 at 100 AAA $ 3,576,786
Hospital Revenue Bonds (Portage Health System, Inc.), Series 1998,
5.450%, 8/01/47
15,000,000 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102 AAA 13,709,850
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18
6,000,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds 9/09 at 102 AAA 5,475,900
(The Detroit Edison Company Pollution Control Bonds Project),
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax)
8,425,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 101 AAA 7,970,977
County Airport, Airport Revenue Bonds, Series 1998A,
5.250%, 12/01/13 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 3.9%
7,550,000 The Dakota County Housing and Redevelopment Authority, 4/04 at 102 AAA 7,817,950
Single Family Mortgage Revenue Bonds (Fannie Mae Mortgage-Backed
Securities Program), Series 1994A, 6.900%, 10/01/27
(Alternative Minimum Tax)
23,655,000 The Housing and Redevelopment Authority of the City of Saint Paul, 11/15 at 103 AAA 26,835,415
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project),
Series 1996, 7.100%, 11/01/23
The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Single Family Mortgage Revenue Refunding Bonds
(Middle Income Program, Phase II FNMA Mortgage-Backed
Securities Program), Series 1995:
2,290,000 6.400%, 3/01/21 3/05 at 102 Aaa 2,335,342
9,655,000 6.800%, 3/01/28 3/05 at 102 19/32 Aaa 10,081,558
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.0%
9,750,000 Mississippi Business Finance Corporation, Pollution Control Revenue 10/03 at 102 BBB- 8,622,510
Refunding Bonds (System Energy Resources, Inc. Project),
Series 1998, 5.875%, 4/01/22
3,635,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 1/07 at 102 A 3,503,159
Refunding Bonds, Series 1997B (Rush Medical Foundation Project),
6.000%, 1/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.4%
4,875,000 Missouri Housing Development Commission, Single Family 11/99 at 102 AAA 4,917,754
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1988 Series A, 8.300%, 5/01/19 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.4%
5,000,000 Montana Higher Education Student Assistance Corporation, 12/08 at 101 A2 4,524,350
Student Loan Revenue Bonds, Subordinate Series 1998B,
5.500%, 12/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.9%
10,505,000 State of Nevada, General Obligation-Limited Tax Bonds, 5/06 at 101 AA*** 11,212,407
(Nevada Municipal Bond Bank Project No. 52), Series July 1,
1996A, 6.000%, 5/15/21 (Pre-refunded to 5/15/06)
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.3%
3,070,000 The Industrial Development Authority of the State of New Hampshire, 12/99 at 103 BBB+ 3,166,644
Pollution Control Revenue Bonds (The United Illuminating Company
Project), 1989 Series A, 8.000%, 12/01/14 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.1%
2,450,000 New Jersey Health Care Facilities Financing Authority, Meridian 7/09 at 101 AAA 2,270,244
Health System Obligated Group Issue, Revenue Bonds,
Series 1999, 5.375%, 7/01/24
3,000,000 New Jersey Economic Development Authority, Transportation 5/09 at 100 AAA 2,812,230
Project Sublease Revenue Bonds (New Jersey Transit Corporation
Light Rail Transit System Projects), 1999 Series A and B,
5.250%, 5/01/17
8,750,000 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102 Aa2 8,235,850
System Bonds, 1996 Series B, 5.250%, 6/15/16
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York - 11.9%
$ 5,000 The City of New York, General Obligation Bonds, Fiscal 1987 Series D, 2/00 at 101 A- $ 5,104
8.500%, 8/01/08
The City of New York, General Obligation Bonds, Fiscal 1992 Series C:
7,910,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 8,474,062
90,000 6.625%, 8/01/14 8/02 at 101 1/2 AAA 95,861
12,500,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series A, No Opt. Call A- 13,719,375
Fixed Rate Tax-Exempt Bonds, 7.000%, 8/01/05
16,295,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F, 2/06 at 101 1/2 A- 15,945,472
5.750%, 2/01/15
20,650,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 19,979,495
Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26
10,000,000 New York City Municipal Water Finance Authority, Water and 6/09 at 101 A1 9,603,400
Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/30
5,755,000 New York City Transitional Finance Authority, Future Tax Secured 8/09 at 101 AA 5,559,215
Bonds, Fiscal 2000 Series A, Tax-Exempt, 5.750%, 8/15/24
4,350,000 Dormitory Authority of the State of New York, State University 5/00 at 102 Aaa 4,524,957
Educational Facilities Revenue Bonds, Series 1990A,
7.700%, 5/15/12 (Pre-refunded to 5/15/00)
4,000,000 Dormitory Authority of the State of New York, State University 5/00 at 100 A 3,976,280
Educational Facilities Revenue Bonds, Series 1990B, 6.000%, 5/15/17
2,070,000 Dormitory Authority of the State of New York (853 Schools Program 7/08 at 101 AAA 1,953,397
1998 Issue 1), Gateway-Longview, Inc. Insured Revenue Bonds,
Series 1998A, 5.500%, 7/01/18
4,600,000 Dormitory Authority of the State of New York, Skidmore College 8/08 at 101 AAA 3,563,344
Insured Revenue Bonds, Series 1998, 4.500%, 8/15/28
12,125,000 Dormitory Authority of the State of New York, Mental Health Services 2/09 at 101 AAA 10,056,596
Facilities Improvement Revenue Bonds, Series 1999C, 4.750%, 8/15/19
17,000,000 Dormitory Authority of the State of New York, City University System 7/09 at 101 AAA 15,793,680
Consolidated Third General Resolution Revenue Bonds,
1999 Series 1, 5.500%, 7/01/29
4,000,000 New York State Medical Care Facilities Finance Agency, 2/00 at 102 AA 4,099,080
St. Lukes-Roosevelt Hospital Center FHA-Insured Mortgage
Revenue Bonds, 1989 Series A, 7.375%, 2/15/19
14,750,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102 AAA 14,042,000
Mental Health Services Facilities Improvement Revenue Bonds,
1993 Series F Refunding, 5.375%, 2/15/14
15,000,000 New York State Urban Development Corporation, Correctional Facilities 1/00 at 102 Aaa 15,384,900
Revenue Bonds, Series G, 7.250%, 1/01/14 (Pre-refunded to 1/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.4%
5,000,000 North Carolina Municipal Power Agency, Number 1 Catawba 1/08 at 102 AAA 4,285,950
Electric Revenue Bonds, Series 1998A, 5.000%, 1/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.5%
20,000,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 7/09 at 100 AAA 18,679,200
Bonds, 1999 Series C (Mortgage-Backed Securities Program),
5.750%, 9/01/30 (Alternative Minimum Tax)
Ohio Water Development Authority, Solid Waste Disposal Revenue
Bonds (Bay Shore Power Project), Convertible Series 1998B:
6,550,000 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102 N/R 6,387,626
4,000,000 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102 N/R 3,619,320
240,000 Toledo-Lucas County Port Authority, Development Revenue Bonds No Opt. Call N/R 240,154
(Northwest Ohio Bond Fund), Series 1989C, 8.250%, 11/15/99
(Alternative Minimum Tax)
650,000 Toledo-Lucas County Port Authority, Development Revenue Bonds 5/00 at 102 N/R*** 671,704
(Northwest Ohio Bond Fund), Series 1989E, 8.375%, 5/15/05
(Alternative Minimum Tax) (Pre-refunded to 5/15/00)
750,000 Toledo-Lucas County Port Authority, Development Revenue Bonds 11/99 at 102 N/R 763,380
(Northwest Ohio Bond Fund), Series 1989F, 8.375%, 11/15/04
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.7%
9,150,000 Port Saint Helens Pollution Control (Portland General Electric), No Opt. Call A3 8,491,292
Series 1985-B, 4.800%, 6/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania - 1.9%
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Guaranteed Water Revenue Bonds, Series of 1998:
$ 3,125,000 0.000%, 5/15/22 No Opt. Call AAA $ 782,063
3,125,000 0.000%, 5/15/23 No Opt. Call AAA 733,750
3,135,000 0.000%, 5/15/24 No Opt. Call AAA 692,177
3,155,000 0.000%, 5/15/26 No Opt. Call AAA 612,764
4,145,000 0.000%, 11/15/26 No Opt. Call AAA 780,545
2,800,000 0.000%, 5/15/28 No Opt. Call AAA 479,724
3,000,000 0.000%, 11/15/28 No Opt. Call AAA 498,060
11,000,000 Delaware County Authority, Health System Revenue Bonds, 11/08 at 102 AAA 9,312,930
Catholic Health East Issue, Series 1998A, 4.875%, 11/15/18
4,500,000 Delaware County Industrial Development Authority, Refunding 1/08 at 102 BB- 4,126,095
Revenue Bonds, Series A 1997 (Resource Recovery Facility),
6.200%, 7/01/19
5,390,000 Pennsylvania Higher Educational Facilities Authority (Commonwealth 11/00 at 102 A*** 5,695,182
of Pennsylvania), Revenue Bonds (Thomas Jefferson University-Jefferson
Park Hospital), 1990 Series, 7.750%, 11/01/15 (Pre-refunded to 11/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.6%
6,925,000 State of South Carolina, General Obligation State Capital Improvement 10/09 at 101 AAA 5,628,155
Bonds, Series 1999A, 4.000%, 10/01/14
2,095,000 South Carolina State Housing Finance and Development Authority, 1/00 at 101 1/2 AA 2,126,949
Homeownership Mortgage Purchase Bonds, 1988 Series A,
8.600%, 7/01/19 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.9%
4,000,000 The Health and Educational Facilities Board of Johnson City, 1/09 at 101 AAA 3,480,720
Tennessee, Hospital Revenue Refunding and Improvement Bonds,
Series 1998C (Johnson City Medical Center Hospital), 5.125%, 7/01/25
7,065,000 The Health, Educational and Housing Facility Board of the City 1/03 at 103 AAA 7,302,031
of Memphis, Tennessee, Multifamily Mortgage Revenue Refunding
Bonds (Riverdale Plaza Apartments Project), Series 1993,
6.350%, 7/20/28
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 6.4%
11,800,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding 11/02 at 100 AAA 11,629,608
Bonds, Series 1992, 5.750%, 11/15/16
20,000,000 Dallas-Fort Worth International Airport Facility Improvement 11/00 at 102 Baa2 20,766,800
Corporation, American Airlines, Inc. Revenue Bonds, Series 1990,
7.500%, 11/01/25 (Alternative Minimum Tax)
3,850,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue 10/01 at 103 Aa 4,038,612
Refunding Bonds, Series 1991A, 8.500%, 10/01/11
1,500,000 Harris County Health Facilities Development Corporation, 7/09 at 101 AAA 1,354,125
Revenue Bonds (CHRISTUS Health), Series 1999A, 5.375%, 7/01/24
595,000 Hidalgo County Housing Finance Corporation, Single Family Mortgage 4/04 at 102 Aaa 610,500
Revenue Bonds (GNMA and FNMA Collateralized), Series 1994A,
6.750%, 10/01/15 (Alternative Minimum Tax)
3,885,000 Houston Independent School District Public Facility Corporation No Opt. Call AAA 1,134,342
(Harris County, Texas), Lease Revenue Bonds (Cesar E. Chavez
High School), Series 1998A, 0.000%, 9/15/19
City of Houston, Texas, Water and Sewer System, Junior Lien
Revenue Refunding Bonds, Series 1998A:
28,500,000 0.000%, 12/01/24 No Opt. Call AAA 6,085,035
49,015,000 0.000%, 12/01/27 No Opt. Call AAA 8,641,835
1,690,000 City of Laredo, Texas (Webb County), Combination Tax and Sewer 2/08 at 100 AAA 1,378,922
System Revenue Certificates of Obligation, Series 1998A, 4.500%, 2/15/18
Leander Independent School District (Williamson and Travis
Counties, Texas), Unlimited Tax School Building and Refunding
Bonds, Series 1998:
4,930,000 0.000%, 8/15/20 8/06 at 46 15/32 AAA 1,368,272
3,705,000 0.000%, 8/15/22 8/06 at 41 5/16 AAA 907,021
1,825,000 The Lubbock Housing Finance Corporation (Texas), Single Family 6/07 at 102 AAA 1,854,620
Mortgage Revenue Refunding Bonds (GNMA Mortgage Backed
Securities Program), Series 1997A, 6.125%, 12/01/17
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
$ 6,050,000 City of San Antonio, Texas, Electric and Gas Systems Revenue 2/09 at 100 Aa1 $ 4,858,937
Refunding Bonds, New Series 1998A, 4.500%, 2/01/21
9,570,000 State of Texas, Veterans Bonds, Series 1985, General Obligation 12/99 at 100 AAA 9,607,706
Bonds, 8.300%, 12/01/16 (Pre-refunded to 12/01/99)
4,500,000 Texas Water Development Board, State Revolving Fund, 7/09 at 100 AAA 4,236,255
Senior Lien Revenue Bonds, Program Series 1999A, 5.500%, 7/15/21
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.9%
13,000,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 (IHC Health 8/07 at 101 AAA 11,583,000
Services, Inc.), 5.250%, 8/15/21
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.9%
11,000,000 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/04 at 102 A+ 11,449,570
Series 5, 7.000%, 11/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.9%
10,865,000 Fairfax County Water Authority (Virginia), Water Revenue Bonds, 1/00 at 102 AAA 11,143,682
Series 1989, 7.250%, 1/01/27 (Pre-refunded to 1/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 2.6%
12,235,000 Public Utility District No. 1 of Chelan County, Washington, No Opt. Call AAA 2,345,450
Columbia River-Rock Island Hydro-Electric System Revenue
Refunding Bonds, Series 1997A, 0.000%, 6/01/26
2,815,000 Grant County Public Utility District 2, Wanapum Hydro Electric 1/06 at 102 AAA 2,646,240
Revenue Bonds, Series 1997A, Master Lease Program, 5.625%, 1/01/26
5,000,000 Washington State Housing Finance Commission, Nonprofit Housing 7/09 at 101 AA 4,829,050
Revenue Bonds (The Kline Galland Center Project), Series 1999,
6.000%, 7/01/29
16,000,000 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 15,532,480
No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
2,065,000 Washington Public Power Supply System, Nuclear Project No. 2 No Opt. Call Aaa 2,271,520
Revenue Bonds, Series 1981A, 14.375%, 7/01/01
4,000,000 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 Aa1 3,840,360
Refunding Revenue Bonds, Series 1993B, 5.700%, 7/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.3%
2,105,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 102 AAA 2,121,650
1992 Series C, 7.200%, 11/01/18 (Alternative Minimum Tax)
975,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 102 AAA 985,860
1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 1.2%
8,900,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/03 at 102 AAA 7,819,360
Bonds, Series 1993 (Aurora Health Care Obligated Group),
5.250%, 8/15/23
7,490,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 7/08 at 103 N/R 6,898,360
Series 1998 (Agnesian Healthcare, Inc.), 6.100%, 1/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
$1,449,090,000 Total Investments - (cost $1,210,081,174) - 97.6% 1,191,348,501
==============
Short-Term Investments - 3.7%
2,500,000 Ascension Parish Pollution Control (BASF Wyandotte Corporation), P-1 2,500,000
Variable Rate Demand Bonds, 3.500%, 12/01/05+
3,190,000 California Health Facilities Financing Authority, Refunding Revenue VMIG-1 3,190,000
Bonds (St. Joseph Health System), Series 1985B, Variable Rate
Demand Bonds, 3.500%, 7/01/13+
4,500,000 California Health Facilities Financing Authority (St. Joseph Health System), VMIG-1 4,500,000
Series 1991B, Variable Rate Demand Bonds, 3.500%, 7/01/09+
4,500,000 California Statewide Communities Development Authority, Certificates VMIG-1 4,500,000
of Participation (St. Joseph Health System), Variable Rate
Demand Bonds, 3.500%, 7/01/24+
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments (continued)
$ 4,000,000 Farmington Pollution Control (Arizona Public Service Co.- Four A-1+ $ 4,000,000
Corners Project), 1994 Series B, Variable Rate Demand Bonds,
3.550%, 9/01/24+
4,000,000 The Fayetteville Public Facilities Board (Arkansas), Variable Rate VMIG-1 4,000,000
Demand Refunding Revenue Bonds (Butterfield Trail Village Project),
Series 1997, 3.500%, 9/01/27+
4,300,000 Guadalupe-Blanco River Authority (Texas), Pollution Control Revenue VMIG-1 4,300,000
Refunding Bonds (Central Power and Light Company Project),
Series 1995, Variable Rate Demand Bonds, 3.500%, 11/01/15+
5,700,000 Lincoln County, Wyoming, Pollution Control (Exxon), Series A, A-1+ 5,700,000
Variable Rate Demand Bonds, 3.600%, 11/01/14+
4,900,000 Louisiana Offshore Terminal Authority, Deepwater Port Refunding VMIG-1 4,900,000
Revenue Bonds, (Loop Inc. Project), First Stage Series 1992A,
Variable Rate Demand Bonds, 3.500%, 9/01/08+
1,300,000 Louisville/Jefferson County Regional Airport Authority, Facilities VMIG-1 1,300,000
Revenue Bonds, Series 1999B (UPS Worldwide Forwarding Inc.
Project) Variable Rate Demand Bonds, 3.650%, 1/01/29
(Alternative Minimum Tax)+
1,000,000 Maricopa County Pollution Control Corporation, Pollution Control A-1+ 1,000,000
Revenue Refunding Bonds (Arizona Public Service Company-Palo
Verde Project), 1994 Series C, Variable Rate Demand Bonds,
3.600%, 5/01/29+
4,750,000 New York State Energy Research and Development Authority, P-1 4,750,000
Pollution Control Revenue Bonds, Refunding Series 1987A (Niagara
Mohawk Power Corporation), Variable Rate Demand Bonds,
3.550%, 3/01/27+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 44,640,000 Total Short-Term Investments - (cost $44,640,000) - 3.7% 44,640,000
=============
Other Assets Less Liabilities - (1.3)% (15,556,090)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,220,432,411
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis (note
1).
+ 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.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Municipal Advantage Fund, Inc. (NMA)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 1.9%
$ 15,000,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA $13,377,750
Warrants, Series 1999-A, 5.375%, 2/01/36
5,075,000 The Health Care Authority of Lauderdale County and the City of 7/09 at 101 AAA 4,489,700
Florence, Alabama, Series 1999-A, Coffee Health Group,
5.250%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.3%
10,000,000 Alaska Energy Authority, Power Revenue Refunding Bonds, 7/09 at 101 AAA 8,595,000
Fifth Series (Bradley Hydroelectric Project), 5.000%, 7/01/21
3,700,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 12/02 at 102 Aa2*** 3,987,712
1992 Series B, 6.600%, 12/01/23 (Pre-refunded to 12/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
California - 10.3%
5,000,000 California Health Facilities Financing Authority, Kaiser Permanente 10/08 at 102 A 4,289,500
Revenue Bonds, Series 1998B, 5.000%, 10/01/18
24,260,000 State Public Works Board of the State of California, Lease Revenue 6/03 at 102 Aa3 22,648,408
Refunding Bonds (The Regents of the University of California),
1993 Series A (Various University of California Projects),
5.500%, 6/01/21
7,535,000 County of Contra Costa, California, 1989 Home Mortgage Revenue No Opt. Call AAA 8,987,522
Bonds (GNMA Mortgage-Backed Securities Program),
7.750%, 5/01/22 (Alternative Minimum Tax)
City of Duarte, California, Certificates of Participation, City
of Hope National Medical Center, Series 1999A:
1,800,000 5.000%, 4/01/13 4/09 at 101 BBB+ 1,587,636
5,000,000 5.250%, 4/01/31 4/09 at 101 BBB+ 4,081,850
10,455,000 Department of Water and Power of the City of Los Angeles, 11/03 at 102 Aa3 8,755,017
California, Electric Plant Refunding Revenue Bonds,
Second Issue of 1993, 4.750%, 11/15/19
10,000,000 Department of Water and Power of the City of Los Angeles, 5/01 at 102 AA 10,305,200
Water Works Refunding Revenue Bonds, Issue of 1992,
6.400%, 5/15/28
14,490,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds 8/02 at 102 AAA 14,630,843
(Project Area No. 2), 1992 Series A, 6.125%, 8/01/22
5,000,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 5,886,150
California, Residential Mortgage Revenue Refunding Bonds,
Series 1991-B, 7.375%, 2/01/12
5,000,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 6,129,700
California, Single Family Mortgage Revenue Bonds,
Series 1986A Restructured, 8.000%, 3/01/16
(Alternative Minimum Tax)
9,315,000 City of Perris, California, Single Family Mortgage Revenue Bonds No Opt. Call AAA 11,128,258
(GNMA Mortgage-Backed Securities), 1989 Series A,
7.600%, 1/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 1.9%
9,000,000 Colorado Health Facilities Authority, Revenue Bonds, 1994 Series A 7/06 at 102 A 8,111,070
(Kaiser Permanente) Remarketed, 5.350%, 11/01/16
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
815,000 8.500%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/00)11/00 at 102 Aaa 868,399
8,575,000 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 BBB+ 9,020,386
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.9%
5,000,000 District of Columbia (Washington, D.C,), General Obligation Bonds, No Opt. Call AAA 5,025,500
Series 1998B, 6.000%, 6/01/19
6,585,000 District of Columbia Housing Finance Agency, Collateralized Single 12/04 at 103 AAA 6,694,640
Family Mortgage Revenue Bonds, Series 1988F-1, 6.375%, 6/01/26
(Alternative Minimum Tax)
6,385,000 District of Columbia Housing Finance Agency, Single Family 6/07 at 102 AAA 6,088,353
Revenue Bonds, Series 1997-B, 5.900%, 12/01/28
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida - 2.1%
$ 5,000,000 Dade County Educational Facilities Authority, Revenue Bonds, 1/00 at 102 N/R*** $ 5,131,600
Series 1990 (St. Thomas University Issue), 7.650%, 1/01/14
(Pre-refunded to 1/01/00)
4,875,000 Dade County Health Facilities Authority, Hospital Revenue Bonds 2/00 at 102 A+*** 5,015,888
(South Shore Hospital and Medical Center FHA-Insured Mortgage),
Series 1989A, 7.600%, 8/01/24 (Pre-refunded to 2/01/00)
10,990,000 City of Tampa, Florida, Allegany Health System Revenue Bonds, 12/03 at 102 AAA 9,670,980
St. Mary's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.4%
3,750,000 Housing Finance and Development Corporation (State of Hawaii), 7/07 at 102 Aa1 3,503,250
Single Family Mortgage Purchase Revenue Bonds, 1997 Series A,
5.750%, 7/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 6.5%
2,625,000 City of Chicago (Illinois), Lakefront Millennium Project, Parking No Opt. Call AAA 2,564,021
Facilities Bonds (Limited Tax), Series 1998, 5.750%, 1/01/23
4,000,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 3,855,520
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1997, 5.750%, 12/01/20
15,000,000 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call AAA 3,179,400
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1998A, 0.000%, 12/01/24
5,000,000 The County of Cook, Illinois, General Obligation Capital Improvement 11/09 at 101 AAA 4,199,300
Bonds, Series 1999A, 5.000%, 11/15/28
10,750,000 Illinois Development Finance Authority, Revenue and Refunding 2/00 at 102 Baa2*** 11,083,680
Bonds, Series 1990A (Columbus-Cuneo-Cabrini Medical Center),
8.500%, 2/01/15 (Pre-refunded to 2/01/00)
10,115,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102 AAA 10,201,382
Series 1996A (Rush-Presbyterian-St. Luke's Medical Center
Obligated Group), 6.250%, 11/15/20
11,800,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick 6/03 at 102 Aaa 12,767,364
Place Expansion Project Bonds, Series 1992A, 6.500%, 6/15/27
(Pre-refunded to 6/15/03)
12,455,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick 12/09 at 101 AAA 11,492,104
Place Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24
2,500,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 2,873,575
and Will Counties, Illinois, General Obligation Bonds, Series 1990A,
7.200%, 11/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.6%
7,425,000 Fort Wayne International Airport Building Corporation, Airport 1/04 at 101 Aa 7,371,540
Improvement Bonds, Series 1994, Fort Wayne, Indiana,
5.900%, 1/01/14 (Alternative Minimum Tax)
9,000,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/06 at 102 AAA 8,584,020
Refunding and Improvement Bonds, Series 1995 (Community
Hospitals Projects), 5.700%, 5/15/22
6,075,000 LaGrange County Jail Building Corporation, First Mortgage 10/09 at 101 A3 5,529,465
Jail Bonds, Series 1998 (LaGrange County, Indiana), 5.400%, 10/01/21
3,215,000 Mooresville Consolidated School Building Corporation, First 1/04 at 102 A*** 3,467,152
Mortgage Bonds, Series 1994B (Morgan County, Indiana),
6.400%, 7/15/15 (Pre-refunded to 1/15/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.8%
4,375,000 Iowa Finance Authority, Single Family Mortgage Bonds, 1/05 at 102 AAA 4,459,875
1995 Series C, 6.450%, 1/01/24
3,500,000 City of Marshalltown, Iowa, Pollution Control Revenue 11/03 at 102 AAA 3,230,885
Refunding Bonds (Iowa Electric Light and Power Company Project),
Series 1993, 5.500%, 11/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.7%
5,500,000 Louisville and Jefferson County Metropolitan Sewer District 5/07 at 101 AAA 4,916,780
(Commonwealth of Kentucky), Sewer and Drainage System
Revenue Bonds, Series 1997A, 5.250%, 5/15/27
13,250,000 Louisville and Jefferson County Metropolitan Sewer District 11/07 at 101 AAA 11,798,860
(Commonwealth of Kentucky), Sewer and Drainage System
Revenue Bonds, Series 1997B, 5.200%, 5/15/25
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.0%
13,500,000 Parish of De Soto, State of Louisiana Pollution Control Revenue 9/09 at 102 AAA 13,110,660
Refunding Bonds (Cleco Utility Group Inc. Project), Series 1999,
5.875%, 9/01/29
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Louisiana (continued)
$ 2,970,000 Louisiana Stadium and Exposition District, Hotel Occupancy 7/09 at 102 AAA $ 2,533,380
Tax Refunding Bonds, Series 1998B, 5.000%, 7/01/26
10,000,000 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 12,997,000
Revenue Bonds (Comm-Care Corporation Project), Series 1994,
11.000%, 2/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 7.7%
1,000,000 City of Boston, Massachusetts, General Obligation Bonds, 2/00 at 102 Aa3*** 1,028,630
1990 Series A, 7.375%, 2/01/10 (Pre-refunded to 2/01/00)
Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series A:
5,000,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 5,052,800
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 3,613,225
5,000,000 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101 AA- 4,235,550
System Bonds, 1998 Series B, 5.000%, 3/01/28
13,915,000 Massachusetts Health and Educational Facilities Authority, Revenue 4/00 at 102 AAA 14,387,275
Bonds, Capital Asset Program Issue, Series F, 7.300%, 10/01/18
(Pre-refunded to 4/01/00)
7,255,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/00 at 102 AAA 7,591,995
Bonds, Emerson Hospital Issue, Series C, 8.000%, 7/01/18
(Pre-refunded to 7/01/00)
7,000,000 Massachusetts Health and Educational Facilities Authority, Revenue 1/09 at 101 AAA 5,886,370
Bonds, Brandeis University Issue, Series I, 5.000%, 7/01/28
10,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 7/01 at 103 N/R 11,095,057
Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15
Massachusetts Water Resources Authority, General Revenue Bonds,
1990 Series A:
8,770,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 9,080,283
11,535,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 11,937,110
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.6%
The Economic Development Corporation of the City of Lapeer, Limited
Obligation Revenue Bonds (Lapeer Health Services Corporation Project),
Series 1990:
2,915,000 8.250%, 2/01/04 (Pre-refunded to 2/01/00) 2/00 at 102 BBB*** 3,003,762
3,000,000 2/01/12 (Pre-refunded to 2/01/00) 2/00 at 102 BBB*** 3,093,210
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) 2/00 at 102 BBB*** 2,062,760
4,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds 8/08 at 101 BBB 3,125,280
(The Detroit Medical Center Obligated Group), Series 1998A,
5.250%, 8/15/28
5,000,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 101 AAA 4,243,900
County Airport, Airport Revenue Bonds, Series 1998A,
5.000%, 12/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.9%
Minneapolis/St. Paul Housing Finance Board, Single Family Mortgage
Revenue Bonds (Minneapolis/St. Paul Family Housing Program,
Phase VIII), Series 1990A:
410,000 7.750%, 8/01/10 (Alternative Minimum Tax) 2/00 at 102 AA+ 419,172
2,225,000 8.000%, 2/01/23 (Alternative Minimum Tax) 2/00 at 102 AA+ 2,274,996
3,275,000 Minneapolis Community Development Agency, Limited Tax Supported 12/99 at 101 A- 3,318,852
Development Revenue Bonds, Series 1988-1, 8.750%, 12/01/17
(Alternative Minimum Tax)
2,390,000 Minneapolis Community Development Agency, Limited Tax Supported 12/99 at 102 A- 2,441,409
Development Revenue Bonds, Series 1989-1, 8.250%, 6/01/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.5%
5,200,000 Coahoma-Clarksdale Housing Development Corporation, 8/03 at 100 AAA 5,448,404
1990 Multifamily Mortgage Revenue Refunding Bonds (Gooden
Estates and McLaurin Arms Project), Series B, 8.000%, 8/01/24
1,575,000 Greenwood-Leflore Housing Development Corporation, 2/01 at 100 AA- 1,595,050
1990 Multifamily Mortgage Revenue Refunding Bonds (Ivory
Apartment Project), Series D, 7.950%, 2/01/22
2,595,000 Greenwood-Leflore Housing Development Corporation, 8/01 at 100 AA- 2,640,620
1990 Multifamily Mortgage Revenue Refunding Bonds
(Bishop Apartment Project), Series B, 7.950%, 8/01/22
2,635,000 Greenwood-Leflore Housing Development Corporation, 6/02 at 100 AA- 2,707,463
1990 Multifamily Mortgage Revenue Refunding Bonds (Jones
Apartment Projects), Series C, 7.950%, 8/01/22
1,655,000 Greenwood-Leflore Housing Development Corporation, 3/02 at 100 AA- 1,696,358
1990 Multifamily Mortgage Revenue Refunding Bonds (McNeace
Apartment Projects), Series A, 7.950%, 8/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Montana - 1.6%
$ 15,585,000 Montana Board of Housing, Single Family Program Bonds, 12/05 at 102 AA+ $15,789,631
1995 Series B (Federally Insured or Guaranteed Mortgage Loan),
6.400%, 12/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.2%
7,500,000 Clark County, Nevada, Airport System Subordinate Lien 7/10 at 101 AAA 7,422,300
Revenue Bonds, Series 1999A, 6.000%, 7/01/29 (WI)
4,500,000 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102 Aaa 4,256,325
1997 Series C-2 Senior Bonds, 5.750%, 4/01/29
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 1.2%
3,000,000 Business Finance Authority of the State of New Hampshire, 12/04 at 102 AAA 3,104,820
Water Facility Revenue Bonds (Pennichuck Water
Works, Inc. - 1994 Issue), Series A, 6.350%, 12/01/19
1,900,000 Business Finance Authority of the State of New Hampshire, 12/04 at 102 AAA 1,955,214
Water Facility Revenue Bonds (Pennichuck Water
Works, Inc.), Series B, 6.450%, 12/01/16 (Alternative Minimum Tax)
3,795,000 New Hampshire Housing Finance Authority, Single Family 1/00 at 102 Aa3 3,876,365
Residential Mortgage Bonds, 1989 Series A, 7.900%, 7/01/22
(Alternative Minimum Tax)
2,370,000 New Hampshire Housing Finance Authority, Single Family 7/00 at 102 Aa3 2,434,725
Residential Mortgage Bonds, 1990 Series A, 7.950%, 7/01/22
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.0%
8,750,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 9,519,125
Series 1991C, 6.500%, 1/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.2%
2,120,000 New Mexico Mortgage Finance Authority, Single Family 7/07 at 102 AAA 1,976,752
Mortgage Program Bonds, 1997 Series F-2 Bonds,
5.700%, 7/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 10.4%
8,000,000 The City of New York, General Obligation Bonds, Fiscal 1991 No Opt. Call A- 9,215,520
Series B, 9.500%, 6/01/03
The City of New York, General Obligation Bonds, Fiscal 1997 Series G:
95,000 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A-*** 102,107
9,905,000 6.000%, 10/15/26 10/07 at 101 A- 9,819,718
The City of New York, General Obligation Bonds, Fiscal 1999 Series H:
1,810,000 5.250%, 3/15/12 3/09 at 101 A- 1,739,030
5,000,000 5.250%, 3/15/16 3/09 at 101 A- 4,570,600
5,685,000 The City of New York, General Obligation Bonds, 4/09 at 101 A- 4,891,147
Fiscal 1999 Series I, 5.000%, 4/15/20
5,000,000 New York City Municipal Water Finance Authority, Water 6/09 at 101 AAA 4,253,000
and Sewer System Revenue Bonds, Fiscal 1999 Series B,
5.000%, 6/15/29
8,850,000 New York City Industrial Development Agency, Special Facility 12/08 at 102 A 7,553,121
Revenue Bonds, Series 1998 (1998 British Airways PLC Project),
5.250%, 12/01/32 (Alternative Minimum Tax)
19,965,000 Dormitory Authority of the State of New York, State University 5/00 at 102 Aaa 20,767,992
Educational Facilities Revenue Bonds, Series 1990A,
7.700%, 5/15/12 (Pre-refunded to 5/15/00)
3,655,000 Dormitory Authority of the State of New York, State University 10/08 at 102 A 3,149,769
Educational Facilities Revenue Bonds, Series 1997, 5.125%, 5/15/27
New York State Housing Finance Agency, Health Facilities Revenue
Bonds (New York City), 1990 Series A Refunding:
16,315,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) 11/00 at 102 AAA 17,285,253
3,885,000 8.000%, 11/01/08 11/00 at 102 BBB+ 4,055,241
5,000,000 New York State Medical Care Facilities Finance Agency, 2/00 at 102 AAA 5,150,950
St. Luke's-Roosevelt Hospital Center FHA-Insured Mortgage
Revenue Bonds, 1989 Series B, 7.450%, 2/15/29
(Pre-refunded to 2/15/00)
3,180,000 New York State Thruway Authority, Highway and Bridge Trust 4/09 at 101 AAA 2,885,150
Fund Bonds, Series 1999B, 5.000%, 4/01/15
5,000,000 New York State Urban Development Corporation, Correctional 1/09 at 101 AAA 4,996,100
Facilities Service Contract Revenue Bonds, Series C, 6.000%, 1/01/29
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
North Carolina - 1.2%
$ 12,715,000 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 100 AAA $11,966,849
Revenue Bonds, Refunding Series 1993 B, 5.500%, 1/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.6%
6,000,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (University 7/09 at 101 AAA 5,540,160
Hospitals Health System, Inc.), Series 1999B, 5.500%, 1/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.6%
10,480,000 Central Oklahoma Transportation and Parking Authority (Oklahoma City, 7/06 at 100 AAA 9,704,794
Oklahoma), Parking System Revenue and Refunding Bonds,
Series 1996, 5.250%, 7/01/16
945,000 Cleveland County Home Loan Authority (Oklahoma), Single Family 8/01 at 102 A1 985,900
Mortgage Revenue Refunding Bonds, Series 1992, 8.375%, 2/01/12
13,615,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa2 14,263,346
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.8%
9,000,000 Beaver County Industrial Development Authority, Pennsylvania, No Opt. Call Baa3 8,693,010
Pollution Control Revenue Refunding Bonds, Series 1999-A
(Ohio Edison Company Project), 4.650%, 6/01/33
(Mandatory put 6/01/04)
3,000,000 Pennsylvania Economic Development Finance Authority, Solid Waste 6/09 at 102 BBB+ 2,752,890
Disposal Revenue Bonds (USG Corporation Project), Series 1999,
6.000%, 6/01/31 (Alternative Minimum Tax)
3,500,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/03 at 102 AAA 3,487,820
Bonds, Issue 1993, 5.800%, 7/01/18
8,500,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue 6/03 at 100 AAA 7,600,445
Bonds, Series 1993, 5.000%, 6/15/16
4,580,000 Venango Housing Corporation, Multifamily Mortgage Revenue 2/03 at 100 AAA 4,749,506
Refunding Bonds (FHA-Insured Mortgage/Evergreen Arbors Project),
1990 Series A, 8.000%, 2/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.7%
6,000,000 Rhode Island Convention Center Authority, Refunding Revenue Bonds, 5/04 at 102 AAA 5,124,240
1993 Series C, 5.000%, 5/15/23
The Housing Authority of the City of Providence, Rhode Island,
Multifamily Mortgage Revenue Bonds (FHA-Insured Mortgage Loan
Cathedral Square Apartments II Project), 1992 Series:
435,000 7.375%, 4/01/10 (Alternative Minimum Tax) 4/02 at 105 AAA 465,267
1,060,000 7.400%, 4/01/20 (Alternative Minimum Tax) 4/02 at 105 AAA 1,134,338
3,050,000 7.500%, 10/01/32 (Alternative Minimum Tax) 4/02 at 105 AAA 3,270,668
4,050,000 Rhode Island Housing and Mortgage Finance Corporation, 4/00 at 102 AA+ 4,149,347
Homeownership Opportunity Bonds, Series 2, 7.750%, 4/01/22
12,250,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 11,594,258
Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue,
Series 1996, 5.500%, 5/15/16
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.7%
5,000,000 Piedmont Municipal Power Agency (South Carolina), Electric 1/09 at 101 BBB- 4,100,200
Revenue Bonds, 1999A Refunding Series, 5.250%, 1/01/21
2,650,000 South Carolina Public Service Authority, Revenue Bonds, 1/03 at 102 AAA 2,242,695
1993 Refunding Series C, 5.000%, 1/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.1%
7,500,000 The Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA 7,301,250
Government of Nashville and Davidson County, Tennessee,
Revenue Bonds (Ascension Health Credit Group), Series 1999A,
5.875%, 11/15/28
3,500,000 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102 A+ 3,612,560
Program Bonds, 1994 Series A, 6.900%, 7/01/25
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 10.9%
8,000,000 Brazos River Authority (Texas), Collateralized Pollution Control 2/00 at 102 BBB+ 8,205,440
Revenue Bonds (Texas Utilities Electric Company Project),
Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax)
5,000,000 Brazos River Authority (Texas), Pollution Control Revenue Refunding 4/08 at 102 Baa1 4,213,400
Bonds (Texas Utilities Electric Company Project), Series 1995C,
5.550%, 6/01/30 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
$ 7,000,000 Brazos River Authority (Texas), Pollution Control Revenue Refunding 5/08 at 102 AAA $ 6,329,190
Bonds (Texas Utilities Electric Company Project), Series 1998A,
5.550%, 5/01/33 (Alternative Minimum Tax)
6,000,000 Brazos River Authority (Texas), Revenue Refunding Bonds (Houston No Opt. Call AAA 5,287,620
Lighting and Power Company Project), Series 1998,
5.050%, 11/01/18 (Alternative Minimum Tax)
4,925,000 The Cameron County Housing Finance Corporation, Single Family 9/02 at 103 AAA 5,045,810
Mortgage Revenue Refunding Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), Series 1992, 6.750%, 3/01/26
7,500,000 Dallas-Fort Worth International Airport Facility Improvement 11/09 at 101 Baa1 7,210,350
Corporation, American Airlines, Inc. Revenue Bonds, Series 1999,
6.375%, 5/01/35 (Alternative Minimum Tax)
3,000,000 El Paso Housing Finance Corporation, Multifamily Housing 1/00 at 103 AAA 3,095,670
Revenue Refunding Bonds (Las Flores Development Company
Project), Series 1990A, 7.500%, 3/20/25
8,400,000 Gulf Coast Waste Disposal Authority (Texas), Waste Disposal 4/09 at 101 BBB- 7,172,004
Revenue Bonds (Valero Energy Corporation Project), Series 1999,
5.700%, 4/01/32 (Alternative Minimum Tax)
4,000,000 Harris County Health Facilities Development Corporation 10/09 at 101 AA 3,449,280
(Texas Children's Hospital Project), Series 1999A, Hospital
Revenue Bonds, 5.250%, 10/01/29
6,000,000 Harris County Health Facilities Development Corporation, 5/00 at 102 AAA 6,229,920
Special Facilities Revenue Bonds (Texas Medical Center Project),
Series 1990, 7.375%, 5/15/20 (Pre-refunded to 5/15/00)
10,000,000 Harris County Health Facilities Development Corporation, 5/06 at 102 AAA 9,880,200
Special Facilities Revenue Bonds (Texas Medical Center Project),
Series 1996, 5.900%, 5/15/16
4,500,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/08 at 100 AAA 3,757,455
Bonds, Series 1998B, 5.000%, 7/01/25 (Alternative Minimum Tax)
City of Houston, Texas, Water Conveyance System Contract,
Certificates of Participation, Series 1993 A-J:
5,490,000 6.800%, 12/15/10 No Opt. Call AAA 6,078,144
2,000,000 6.800%, 12/15/11 No Opt. Call AAA 2,216,680
7,500,000 Matagorda County Navigation District Number One (Texas), Revenue 5/09 at 101 BBB+ 6,988,275
Refunding Bonds (Reliant Energy, Incorporated Project), Series 1999B,
5.950%, 5/01/30
7,500,000 Sabine River Authority of Texas (Texas Utilities Electric Company 2/00 at 102 BBB+ 7,692,675
Project), Series 1990A, 8.125%, 2/01/20(Alternative Minimum Tax)
4,000,000 State of Texas, General Obligation Bonds, Water Financial Assistance 8/09 at 100 Aa1 3,665,560
Bonds, Series 1999C (State Participation Program), 5.500%, 8/01/35
6,500,000 Travis County Health Facilities Development Corporation, 11/00 at 101 AAA 6,333,600
Revenue Bonds (Ascension Health Credit Group), Series 1999A,
5.875%, 11/15/24 (WI)
The Wood Glen Housing Finance Corporation, Mortgage Revenue
Refunding Bonds, Series 1990C (FHA-Insured Mortgage Loan - Section 8
Assisted-Copperwood II Project):
1,255,000 7.625%, 1/01/10 1/00 at 103 AAA 1,295,805
1,250,000 7.650%, 7/01/23 1/00 at 103 AAA 1,289,563
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.4%
4,000,000 Intermountain Power Agency, Power Supply Revenue Refunding 7/06 at 102 A+ 3,410,120
Bonds, 1996 Series D, 5.000%, 7/01/23
90,000 Utah Housing Finance Agency, Single Family Mortgage Senior Bonds, 1/00 at 102 AAA 90,764
1989 Issue B (Federally Insured or Guaranteed Mortgage Loans),
8.250%, 7/01/21 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.8%
8,130,000 Capital Region Airport Commission, Richmond (Virginia), 7/05 at 102 AAA 7,831,304
International Airport Projects, Airport Revenue Bonds, Series 1995A,
5.625%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 8.1%
5,000,000 Port of Seattle (Washington), Special Facility Revenue Bonds 3/10 at 101 AAA 4,920,700
(Terminal 18 Project), Series 1999C, 6.000%, 9/01/20
(Alternative Minimum Tax)
5,250,000 Everett School District No. 2, Snohomish County, Washington, 12/03 at 102 AAA 5,658,030
Unlimited Tax General Obligation Bonds, Series 1993,
6.200%, 12/01/12 (Pre-refunded to 12/01/03)
2,500,000 City of Walla Walla, Washington, Water and Wastewater 8/07 at 100 AAA 2,205,300
Revenue Bonds, Series 1997, 5.000%, 8/01/17
7,195,000 State of Washington, Various Purpose General Obligation Bonds, 3/01 at 100 AA+*** 7,359,046
Series 1991A, 6.000%, 3/01/16 (Pre-refunded to 3/01/01)
9,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/08 at 101 Aaa 7,457,400
Series 1998 (Children's Hospital and Regional Medical Center),
5.000%, 10/01/28
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington (continued)
$ 5,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101 AAA $ 4,553,550
Series 1999 (Providence Services), 5.375%, 12/01/19
11,135,000 Washington Public Power Supply System, Nuclear Project 1/00 at 102 AAA 11,418,943
No. 1 Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15
(Pre-refunded to 1/01/00)
3,000,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 Aa1 2,984,310
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13
19,300,000 Washington Public Power Supply System, Nuclear Project No. 2 7/00 at 102 AAA 20,110,600
Refunding Revenue Bonds, Series 1990A, 7.375%, 7/01/12
(Pre-refunded to 7/01/00)
3,400,000 Washington Public Power Supply System, Nuclear Project No. 2 7/04 at 102 AAA 3,327,104
Refunding Revenue Bonds, Series 1994A, 5.000%, 7/01/09
8,750,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/08 at 102 Aa1 7,660,273
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 4.4%
3,000,000 Housing Authority of the City of Milwaukee, Wisconsin, 6/00 at 102 Aa 3,086,190
Multifamily Housing Refunding Revenue Bonds, Series 1990
(FHA-Insured Mortgage Loan - The Blatz Apartments Project),
7.500%, 12/01/28
3,000,000 Southeast Wisconsin Professional Baseball Park District, Sales No Opt. Call AAA 2,871,390
Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19
11,835,000 Wisconsin Health and Educational Facilities Authority, Revenue 3/00 at 102 Aaa 12,250,880
Bonds, Series 1990 (Franciscan Health System, Inc. Project),
8.500%, 3/01/20 (Pre-refunded to 3/01/00)
Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1996 (Aurora Medical Group, Inc. Project):
10,000,000 5.600%, 11/15/16 5/06 at 102 AAA 9,550,700
15,000,000 5.750%, 11/15/25 5/06 at 102 AAA 14,178,900
- ------------------------------------------------------------------------------------------------------------------------------------
$ 970,910,000 Total Investments - (cost $940,193,279) - 98.0% 940,077,449
=============
Short-Term Investments - 1.5%
2,300,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B, VMIG-1 2,300,000
Variable Rate Demand Bonds, 3.500%, 8/15/05+
5,000,000 Uinta County, Wyoming, Pollution Control Refunding Revenue Bonds P-1 5,000,000
(Chevron U.S.A. Inc. Project), Series 1993, Variable Rate Demand
Bonds, 3.500%, 8/15/20+
2,000,000 Farmington Pollution Control Revenue (Arizona Public Service A-1+ 2,000,000
Co.-Four Corners Project), Series A, Variable Rate Demand Bonds,
3.550%, 5/01/24+
5,000,000 Louisiana Offshore Terminal Authority, Deepwater Port Refunding VMIG-1 5,000,000
Revenue Bonds (Loop Inc. Project), First Stage Series 1992A,
Variable Rate Demand Bonds, 3.500%, 9/01/08+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 14,300,000 Total Short-Term Investments - (cost $14,300,000) - 1.5% 14,300,000
=============
Other Assets Less Liabilities - 0.5% 4,545,464
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $958,922,913
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ 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.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 0.4%
$ 5,000,000 BMC Special Care Facilities Financing Authority of the City of 11/08 at 101 AAA $ 4,177,800
Montgomery (Alabama), Revenue Bonds, Series 1998-B
(Baptist Health), 5.000%, 11/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.1%
12,000,000 Alaska State Housing Finance Corporation, Governmental 12/05 at 102 AAA 11,544,240
Purpose Bonds, 1995 Series A, 5.875%, 12/01/30
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.2%
2,150,000 The Industrial Development Authority of the County of Pima, 5/07 at 105 27/32 AAA 2,257,758
Single Family Mortgage Revenue Bonds, Series 1997A,
7.100%, 11/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.3%
4,000,000 Baxter County, Arkansas, Hospital Revenue Improvement Bonds, 9/09 at 100 BBB 3,478,000
Series 1999B (Baxter County Regional Hospital), 5.600%, 9/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
California - 10.7%
13,215,000 Alameda County Public Facilities Corporation, Certificates of 9/06 at 102 AAA 13,302,748
Participation (1991 Financing Project), 6.000%, 9/01/21
8,745,000 Bell Community Redevelopment Agency, Bell Redevelopment Area, 11/03 at 102 AAA 8,958,815
1994 Tax Allocation Refunding Bonds, 6.350%, 11/01/23
6,050,000 California Housing Finance Agency, Multifamily Housing 8/08 at 101 1/2 AAA 5,481,421
Revenue Bonds III, 1998 Series A, 5.450%, 8/01/28
(Alternative Minimum Tax)
4,000,000 California Health Facilities Financing Authority, Insured 5/00 at 102 AA-*** 4,145,800
Health Facilities Revenue Bonds (ValleyCare Hospital Corporation),
1989 Series A, 7.000%, 5/01/20 (Pre-refunded to 5/01/00)
7,300,000 California Health Facilities Financing Authority, Insured Hospital 7/00 at 102 AAA 7,580,174
Revenue Bonds (Children's Hospital-San Diego), Series 1990,
6.500%, 7/01/20 (Pre-refunded to 7/01/00)
6,810,000 California Health Facilities Financing Authority, Kaiser Permanente 5/03 at 102 A 6,126,276
Revenue Bonds, 1993 Series C, 5.600%, 5/01/33
5,000,000 State of California, Veterans General Obligation Bonds, 12/03 at 102 AA- 4,602,250
Series BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
3,500,000 State of California, General Obligation Refunding Bonds, 5.000%, 2/01/212/08 at 101 AA- 3,069,045
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, 7/00 at 100 BBB*** 2,525,125
California, Central Business District Redevelopment Project,
Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10
6,000,000 Department of Water and Power of the City of Los Angeles 10/03 at 102 Aa3 4,996,080
(California), Electric Plant Revenue Bonds, Second Issue of 1993,
4.750%, 10/15/20
6,815,000 Department of Water and Power of the City of Los Angeles, 11/03 at 102 Aa3 6,208,874
California, Electric Plant Refunding Revenue Bonds, Second Issue
of 1993, 5.400%, 11/15/31
12,080,000 Department of Water and Power of the City of Los Angeles, California, 2/04 at 102 Aa3 10,913,676
Electric Plant Revenue Bonds, Issue of 1994, 5.375%, 2/15/34
6,000,000 Department of Water and Power of the City of Los Angeles, 5/01 at 102 AA 6,183,120
Water Works Refunding Revenue Bonds, Issue of 1992,
6.400%, 5/15/28
County of Orange, California, 1996 Recovery Certificates of
Participation, Series A:
13,000,000 5.875%, 7/01/19 7/06 at 102 AAA 12,998,700
3,450,000 6.000%, 7/01/26 7/06 at 102 AAA 3,455,417
5,870,000 Sacramento Municipal Utility District (California), Electric Revenue 9/03 at 100 AAA 4,960,854
Refunding Bonds, 1993 Series G, 4.750%, 9/01/21
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
San Joaquin Hills Transportation Corridor Agency, Toll Road
Refunding Revenue Bonds, Series 1997 A:
$ 5,000,000 0.000%, 1/15/17 1/14 at 102 AAA $ 3,228,200
5,000,000 0.000%, 1/15/26 No Opt. Call AAA 1,018,100
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.9%
1,335,000 Colorado Housing and Finance Authority, Single-Family Program 8/00 at 102 AAA 1,345,253
Senior Bonds, 1990 Issue C (Federally Insured or Guaranteed
Mortgage Loans), 7.650%, 8/01/22 (Alternative Minimum Tax)
25,000,000 Colorado Health Facilities Authority, Retirement Facilities Revenue No Opt. Call AAA 5,226,500
Bonds (Liberty Heights), Series 1991B, 0.000%, 7/15/24
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
3,240,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01)11/01 at 100 Aaa 3,475,094
9,010,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 9,477,078
2,785,000 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/02 at 102 BBB+ 2,965,412
Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax)
6,020,000 City and County of Denver, Colorado, Airport System Revenue 11/02 at 102 BBB+ 6,075,866
Bonds, Series 1992C, 6.750%, 11/15/22 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
3,955,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 BBB+ 4,212,233
3,940,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 4,057,333
3,100,000 Poudre School District R-1, Larimer County, Colorado, General 12/08 at 100 AA- 2,787,675
Obligation Refunding Bonds, Series 1998, 5.000%, 12/15/16
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.2%
2,095,000 District of Columbia Housing Finance Agency, Collateralized Single 12/00 at 102 AAA 2,178,528
Family Mortgage Revenue Bonds, Series 1990A,
8.100%, 12/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.2%
32,050,000 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, 5/09 at 101 AAA 26,763,673
Series 1999A, 5.000%, 11/01/38
6,450,000 Development Authority of Fulton County (Georgia), Special Facilities 5/08 at 101 BBB- 5,549,774
Revenue Bonds (Delta Air Lines, Inc. Project), Series 1998,
5.450%, 5/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 2.0%
26,000,000 City and County of Honolulu (Hawaii), Wastewater System 7/09 at 101 AAA 20,150,000
Revenue Bonds (Second Bond Resolution), Junior Series 1998,
4.500%, 7/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 3.6%
6,500,000 City of Chicago, Illinois, Gas Supply Refunding Revenue Bonds, 6/05 at 102 AA- 6,478,680
1995 Series A (The Peoples Gas, Light and Coke Company
Project), 6.100%, 6/01/25
7,300,000 City of Chicago, Chicago-O'Hare International Airport, Special 11/00 at 102 Baa2 7,602,658
Facility Revenue Bonds (American Airlines Inc. Project),
Series 1990A, 7.875%, 11/01/25 (Alternative Minimum Tax)
4,000,000 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 4,769,000
Certificates of Participation, 8.750%, 1/01/06
5,210,000 Illinois Housing Development Authority, Section 8 Elderly Housing 1/03 at 102 A 5,342,178
Revenue Bonds (Garden House of River Oaks West Development),
Series 1992A, 6.875%, 1/01/20
1,685,000 Illinois Housing Development Authority, Section 8 Elderly Housing 3/03 at 102 A 1,728,877
Revenue Bonds (Village Center Development), Series 1992C,
6.600%, 3/01/07
1,430,000 City of Peoria, Peoria County, City of Pekin, Tazewell and Peoria 8/00 at 103 AA+ 1,440,067
Counties, and City of Waukegan, Lake County (Illinois), Jointly,
GNMA Collateralized Mortgage Revenue Bonds, Series 1990,
7.875%, 8/01/22 (Alternative Minimum Tax)
9,195,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/02 at 100 AAA 9,579,811
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 6.125%, 6/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 5.2%
5,000,000 Columbus Multi-School Building Corporation (Bartholomew 1/01 at 102 N/R*** 5,287,800
County, Indiana), First Mortgage Bonds, 7.600%, 1/15/14
(Pre-refunded to 1/15/01)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indiana (continued)
$ 9,400,000 Fort Wayne (Indiana), Economic Development Revenue Bonds 4/08 at 102 N/R $ 8,777,062
(Oaklawn Court Apartments Project), Series 1998A, 7.000%, 4/01/28
(Alternative Minimum Tax)
13,500,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 8/00 at 102 AAA 14,164,740
Series 1990 (Bartholomew County Hospital District),
7.750%, 8/15/20 (Pre-refunded to 8/15/00)
10,000,000 Indiana State Office Building Commission, Capitol Complex 7/00 at 102 AAA 10,416,600
Revenue Bonds, Series 1990B (State Office Building I Facility),
7.250%, 7/01/12 (Pre-refunded to 7/01/00)
3,750,000 The Indianapolis Local Public Improvement Bond Bank, 2/03 at 102 AA 3,962,513
Series 1992 D Bonds, 6.750%, 2/01/20
10,080,000 The Trustees of Purdue University, Purdue University Student 7/06 at 101 Aa2 10,824,610
Fee Bonds, Series M, 6.100%, 7/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.7%
3,310,000 City of Des Moines, Iowa, Aviation System Revenue Bonds, 7/08 at 100 AAA 2,861,528
Series 1998A, 5.125%, 7/01/28
4,215,000 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, No Opt. Call N/R 4,204,336
Series 1997 (IPSCO Project), 6.000%, 6/01/27
(Alternative Minimum Tax) (Mandatory put 6/01/07)
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.2%
1,500,000 Kentucky Economic Development Finance Authority, Health Care 5/08 at 102 BBB 1,310,055
Facilities Revenue Bonds, Series 1998 (The Christian Church Homes
of Kentucky Inc. Obligated Group), 5.375%, 11/15/23
1,210,000 Kentucky Housing Corporation, Housing Revenue Bonds 7/00 at 102 AAA 1,246,022
(FHA-Insured/VA Guaranteed), 1990 Series C Bonds,
8.100%, 1/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 0.4%
4,035,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 8/00 at 102 Aaa 4,144,429
Revenue Bonds (GNMA Mortgage Backed Securities Program),
Series 1990A, 7.875%, 8/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 9.4%
Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series A:
7,500,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 7,579,200
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 11,149,380
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Daughters of Charity National Health System-Carney
Hospital Issue, Series C:
4,200,000 7.500%, 7/01/05 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 4,381,608
10,800,000 7.750%, 7/01/14 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,284,704
5,900,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA 6,158,184
Bonds, New England Medical Center Hospitals Issue, Series F,
6.625%, 7/01/25
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Goddard Memorial Hospital Issue, Series B:
3,090,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 3,253,585
4,410,000 9.000%, 7/01/15 7/00 at 102 BBB 4,577,315
7,500,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA 6,251,100
Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
25,000,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101 AAA 20,774,750
Revenue Bonds, 1999 Series A (Subordinated), 5.000%, 1/01/39
Massachusetts Water Resources Authority, General Revenue
Bonds, 1990 Series A
8,450,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 8,748,961
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 6,845,599
5,195,000 7.000%, 4/01/18 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 5,365,552
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.0%
10,630,000 School District of the City of Detroit, Wayne County, Michigan, 5/09 at 101 AAA 8,646,655
School Building and Site Improvement Bonds (Unlimited Tax
General Obligation Bonds), Series 1998A, 4.750%, 5/01/28
8,160,000 Michigan State Hospital Finance Authority, Hospital Revenue 7/00 at 102 A3 8,528,832
and Refunding Bonds (Bay Medical Center), Series 1990A,
8.250%, 7/01/12
4,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds 8/01 at 102 Aaa 4,835,205
(The Detroit Medical Center Obligated Group), Series 1991A,
7.500%, 8/15/11 (Pre-refunded to 8/15/01)
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan (continued)
$ 8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB $ 8,572,165
(Waste Management, Inc. Project), Series 1992,
6.625%, 12/01/12 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.5%
1,705,000 The Dakota County Housing and Redevelopment Authority, 6/00 at 102 AAA 1,722,596
The Washington County Housing and Redevelopment Authority and
Stearns County Housing and Redevelopment Authority, Single Family
Residential Mortgage Revenue Bonds (GNMA Mortgaged Backed
Securities Program), Series 1990, 7.850%, 12/01/30
(Alternative Minimum Tax)
8,845,000 City of Minneapolis, and the Housing and Redevelopment Authority 8/00 at 102 AAA 9,295,476
of the City of St. Paul, Minnesota, Health Care System Revenue
Bonds (Health One Obligated Group), Series 1990C, 8.000%, 8/15/19
(Pre-refunded to 8/15/00)
3,660,000 The Housing and Redevelopment Authority of the City of 11/15 at 103 AAA 4,152,087
Saint Paul, Minnesota, Sales Tax Revenue Refunding Bonds
(Civic Center Project), Series 1996, 7.100%, 11/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.1%
5,900,000 Mississippi Business Finance Corporation, Pollution Control Revenue 10/03 at 102 BBB- 5,217,724
Refunding Bonds (System Energy Resources, Inc. Project),
Series 1998, 5.875%, 4/01/22
5,410,000 Mississippi Home Corporation, Single Family Mortgage Revenue 7/07 at 105 Aaa 5,672,169
Bonds, Series 1997D, Class 5, 0.000%, 7/01/29
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.6%
6,000,000 State of Nevada, General Obligation Limited Tax Bonds 5/06 at 101 AA*** 6,404,040
(Nevada Municipal Bond Bank Project No. 52), Series July 1, 1996A,
6.000%, 5/15/21 (Pre-refunded to 5/15/06)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.5%
3,250,000 Pollution Control Financing Authority of Camden County (Camden No Opt. Call B2 3,176,810
County, New Jersey), Solid Waste Disposal and Resource
Recovery System Revenue Bonds, Series 1991 C, 7.125%, 12/01/01
(Alternative Minimum Tax)
2,000,000 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 1,941,720
(Camden County, New Jersey), Solid Waste Disposal and Resource
Recovery System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.5%
5,085,000 New Mexico Mortgage Finance Authority, Single Family Mortgage 9/00 at 102 AAA 5,259,060
Program Senior Bonds, 1990 Series A (Federally Insured or
Guaranteed Mortgage Loans), 7.800%, 9/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 23.1%
10,000,000 Erie County Industrial Development Agency, Solid Waste 12/10 at 103 N/R 10,696,800
Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna
Project), 9.050%, 12/01/25 (Alternative Minimum Tax)
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 2/06 at 101 1/2 A- 9,645,700
Series G, 5.750%, 2/01/20
21,715,000 The City of New York, General Obligation Bonds, Fiscal 1996 3/06 at 101 1/2 A- 21,306,975
Series I, 5.875%, 3/15/18
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 8/07 at 101 A- 10,013,400
Series H, 6.125%, 8/01/25
6,750,000 The City of New York, General Obligation Bonds, Fiscal 1995 2/05 at 101 A-*** 7,373,498
Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05)
New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, Fiscal 1991 Series A:
12,875,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 13,353,049
5,915,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 Aaa 5,994,320
7,585,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 AAA 7,686,715
2,550,000 New York City Municipal Water Finance Authority, Water and 6/02 at 101 1/2 AAA 2,505,503
Sewer System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18
7,400,000 New York City Municipal Water Finance Authority, Water and 6/09 at 101 AAA 6,294,440
Sewer System Revenue Bonds, Fiscal 1999 Series B, 5.000%, 6/15/29
17,870,000 New York City Transitional Finance Authority, Future Tax 8/09 at 101 AA 17,262,063
Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 15,000,000 Dormitory Authority of the State of New York, City University System No Opt. Call BBB+ $16,950,000
Consolidated Second General Resolution Revenue Bonds,
Series 1990D, 8.750%, 7/01/03
9,010,000 Dormitory Authority of the State of New York, State University 5/00 at 102 Aaa 9,350,758
Educational Facilities Revenue Bonds, Series 1989B,
7.250%, 5/15/15 (Pre-refunded to 5/15/00)
13,250,000 Dormitory Authority of the State of New York, Mental Health Services 2/06 at 102 A- 11,847,488
Authority Improvement Bonds, Series 1996-B, 5.375%, 2/15/26
27,000,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 A- 25,526,070
Services Facilities Improvement Revenue Bonds, Series 1997A,
5.750%, 2/15/27
4,500,000 New York State Energy Research and Development Authority, 7/03 at 102 AAA 4,169,070
Gas Facilities Revenue Bonds, Series C (The Brooklyn Union Gas
Company Project), 5.600%, 6/01/25 (Alternative Minimum Tax)
New York State Housing Finance Agency, Health Facilities Revenue
Bonds (New York City), 1990 Series A Refunding:
16,580,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) 11/00 at 102 AAA 17,566,013
3,420,000 8.000%, 11/01/08 11/00 at 102 BBB+ 3,569,864
5,000,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 5,540,850
Hospital Medical Center Secured Revenue Bonds, Series 1995-A,
6.850%, 2/15/17 (Pre-refunded to 2/15/05)
4,785,000 New York State Medical Care Facilities Finance Agency, 11/05 at 102 Aa1 4,921,038
Health Center Projects Revenue Bonds (Secured Mortgage Program),
1995 Series A, 6.375%, 11/15/19
7,150,000 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102 AAA 7,651,930
Series C, 6.000%, 1/01/25 (Pre-refunded to 1/01/05)
10,000,000 The Port Authority of New York and New Jersey, Special 12/07 at 102 AAA 9,731,700
Project Bonds, Series 6, JFK International Air Terminal LLC Project,
5.750%, 12/01/22 (Alternative Minimum Tax)
7,000,000 Triborough Bridge and Tunnel Authority (New York), General Purpose 1/10 at 100 Aa3 6,463,800
Revenue Bonds, Series 1999B, 5.500%, 1/01/30
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.0%
10,500,000 North Carolina Eastern Municipal Power Agency, Power 1/02 at 102 BBB 10,716,195
System Revenue Bonds, Refunding Series 1991 A, 6.250%, 1/01/03
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.4%
8,500,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable 12/00 at 102 Baa2 8,813,055
Rate Revenue Obligations, 7.375%, 12/01/20
(Alternative Minimum Tax)
5,000,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa2 5,238,100
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.4%
5,000,000 Delaware County Industrial Development Authority (Pennsylvania), 1/08 at 102 BB- 4,584,550
Refunding Revenue Bonds, Series A 1997 (Resource Recovery Facility),
6.200%, 7/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.2%
7,050,000 Rhode Island Housing and Mortgage Finance Corporation, 4/00 at 102 AA+ 7,222,937
Homeownership Opportunity Bonds, Series 2, 7.750%, 4/01/22
5,000,000 Rhode Island Health and Educational Building Corporation, 4/00 at 102 AAA 5,192,550
Higher Education Facility Revenue Bonds, Johnson and Wales
University (Series 1990), 8.375%, 4/01/20 (Pre-refunded to 4/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.6%
3,640,000 South Carolina Jobs-Economic Development Authority, Economic 9/02 at 102 N/R*** 3,984,854
Development Revenue Bonds (Carolinas Hospital System Project),
Series 1992, 7.550%, 9/01/22 (Pre-refunded to 9/01/02)
2,450,000 Three Rivers Solid Waste Authority (South Carolina), Solid Waste 1/07 at 102 AAA 2,174,400
Disposal Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.4%
4,500,000 The Health and Educational Facilities Board of the Metropolitan 7/03 at 102 N/R 3,939,300
Government of Nashville and Davidson County, Tennessee,
Revenue Refunding Bonds, Series 1998 (The Blakford at Green Hills),
5.650%, 7/01/16
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas - 14.1%
$ 6,000,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa2 $ 6,244,320
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax)
Arlington Independent School District (Tarrant County, Texas),
Unlimited Tax Refunding and Improvement Bonds, Series 1995:
8,940,000 0.000%, 2/15/12 (Pre-refunded to 2/15/05) 2/05 at 67 5/16 Aaa 4,624,751
3,710,000 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 1,801,242
8,930,000 0.000%, 2/15/13 (Pre-refunded to 2/15/05) 2/05 at 62 15/16 Aaa 4,318,637
3,710,000 0.000%, 2/15/13 2/05 at 62 15/16 Aaa 1,671,207
12,000,000 City of Austin, Texas, Hotel Occupancy Tax Subordinate Lien Revenue 11/09 at 100 AAA 11,626,800
Refunding Bonds, Series 1999, 5.800%, 11/15/29
Brownsville Independent School District (Cameron County, Texas),
Unlimited Tax School Building Bonds, Series 1999:
5,015,000 5.625%, 8/15/25 8/09 at 100 AAA 4,753,568
8,825,000 5.625%, 8/15/29 8/09 at 100 AAA 8,326,564
20,500,000 Dallas-Fort Worth International Airport Facility Improvement 11/00 at 102 Baa2 21,285,970
Corporation, American Airlines, Inc. Revenue Bonds, Series 1990,
7.500%, 11/01/25 (Alternative Minimum Tax)
31,175,000 Houston Independent School District (Texas), Limited Tax 2/09 at 100 AAA 25,431,942
Schoolhouse and Refunding Bonds, Series 1999A, 4.750%, 2/15/26
3,885,000 Houston Independent School District Public Facility Corporation No Opt. Call AAA 1,844,248
(Harris County, Texas), Lease Revenue Bonds (Cesar E. Chavez
High School), Series 1998A, 0.000%, 9/15/12
20,035,000 Keller Independent School District (Tarrant County, Texas), 8/09 at 100 AAA 16,380,215
Unlimited Tax School Building and Refunding Bonds, Series 1999,
4.875%, 8/15/31
15,130,000 Lubbock Health Facilities Development Corporation, Hospital Revenue 12/00 at 102 AAA 15,957,460
Bonds (Methodist Hospital, Lubbock, Texas), Series 1990,
7.250%, 12/01/19 (Pre-refunded to 12/01/00)
15,000,000 San Antonio Independent School District (Bexar County, Texas), 8/09 at 100 AAA 14,533,800
Unlimited Tax School Building Bonds, Series 1999, 5.800%, 8/15/29
4,618,965 General Services Commission (An Agency of the State of Texas), 9/05 at 100 A 4,873,701
as Lessee, Participation Interests, 7.500%, 9/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.5%
4,750,000 Tooele County, Hazardous Waste Disposal Revenue Bonds 8/05 at 102 BBB 4,836,688
(Laidlaw Inc./USPCI Clive Project), Series 1995, 6.750%, 8/01/10
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.9%
3,880,000 Industrial Development Authority of the County of Henrico, Virginia, 8/00 at 102 A+*** 4,046,297
Adjustable Rate Revenue Bonds (St. Mary's Hospital Project),
Series 1985C, 7.500%, 9/01/07 (Pre-refunded to 8/01/00)
2,950,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 2,997,938
Revenue Bonds, 1992 Series B, Subseries B-4, 6.550%, 1/01/27
(Alternative Minimum Tax)
2,000,000 Virginia Housing Development Authority, Multi-Family Housing Bonds, 5/02 at 102 AA+ 2,111,840
1992 Series D, 7.050%, 5/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.1%
9,000,000 Washington Higher Education Facilities Authority, Revenue and 4/08 at 101 AAA 8,045,280
Refunding Bonds (The University of Puget Sound Project),
Series 1998, 5.375%, 10/01/30
7,890,000 Washington Higher Education Facilities Authority, Revenue Bonds 11/09 at 101 AA 7,490,293
(Pacific Lutheran University Project), Series 1999, 5.950%, 11/01/29
5,430,000 Washington Public Power Supply System, Nuclear Project No. 1 7/00 at 102 AAA 5,666,096
Refunding Revenue Bonds, Series 1990A, 7.600%, 7/01/05
(Pre-refunded to 7/01/00)
9,775,000 Washington Public Power Supply System, Nuclear Project No. 1 7/01 at 102 Aaa 10,361,500
Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17
(Pre-refunded to 7/01/01)
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1990A:
6,835,000 7.625%, 7/01/08 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 7,133,279
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 13,796,080
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wisconsin - 0.2%
$ 2,250,000 Wisconsin Health and Educational Facilities Authority, Revenue 3/08 at 101 N/R $ 1,881,765
Bonds, Series 1998 (United Lutheran Program for the Aging, Inc.),
5.700%, 3/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.3%
2,800,000 Town of Jackson, Wyoming, National Rural Utilities Cooperative 5/07 at 101 AA- 2,652,741
Finance Corporation, Guaranteed Gas Supply Revenue Bonds
(Lower Valley Power and Light, Inc. Project), Series 1997B,
5.875%, 5/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
$1,068,158,965 Total Investments - (cost $995,498,813) - 97.9% 1,001,393,542
==============
Other Assets Less Liabilities - 2.1% 21,249,131
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,022,642,673
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Dividend Advantage Municipal Fund (NAD)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 0.7%
$ 6,370,000 BMC Special Care Facilities Financing Authority of the City of 11/08 at 102 AAA $ 5,703,571
Montgomery (Alabama), Revenue Bonds, Series 1999-A (Baptist
Medical Center), 5.250%, 5/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
California - 1.0%
5,500,000 California Pollution Control Financing Authority, Pollution Control 9/09 at 101 AAA 5,122,755
Refunding Revenue Bonds (Southern California Edison Company),
1999 Series C, 5.450%, 9/01/29
3,000,000 Department of Water and Power of the City of Los Angeles (California), 6/04 at 101 AAA 2,743,920
Electric Plant Revenue Bonds, Issue of 1999, 5.250%, 6/15/19
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 0.4%
3,205,000 City and County of Denver, Colorado, Airport Special Facilities 1/09 at 101 AAA 3,282,016
Revenue Bonds (Rental Car Projects), Series 1999A, 6.000%, 1/01/12
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 4.0%
2,000,000 Baker County Hospital Authority, Health Care Facilities Revenue Bonds, 12/08 at 102 A 1,758,380
Series 1998, 5.300%, 12/01/23
22,000,000 JEA Water and Sewer System Revenue Bonds (Jacksonville, Florida), 10/04 at 101 AA- 20,112,180
1999 Series A, 5.375%, 10/01/29
8,000,000 Jacksonville Health Facilities Authority (Florida), Hospital Revenue 8/09 at 101 AA 7,384,320
Bonds (Charity Obligated Group), Series 1999C, 5.375%, 8/15/23
2,800,000 Martin County Industrial Development Authority (Florida), Industrial 12/04 at 102 BBB- 2,851,856
Development Revenue Bonds (Indianatown Cogeneration. L.P. Project),
Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.9%
10,000,000 The Hospital Authority of Hall County and the City of Gainesville, 5/09 at 101 AAA 9,253,300
Revenue Anticipation Certificates (Northeast Georgia Health System,
Inc. Project), Series 1999, 5.500%, 5/15/29
15,000,000 Private Colleges and Universities Authority (Georgia), Revenue Bonds 11/09 at 101 Aa1 13,988,700
(Emory University Project), Series 1999A, 5.500%, 11/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.2%
1,745,000 Idaho Housing and Finance Association, Single Family Mortgage 7/09 at 101 Aa2 1,656,878
Bonds, 1999 Series E, 5.750%, 1/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 24.8%
3,500,000 Village of Channahon, Illinois, Revenue Refunding Bonds, 12/09 at 102 BBB+ 3,258,220
Series 1999 (Morris Hospital), 5.750%, 12/01/12
22,750,000 City of Chicago (Illinois), General Obligation Bonds (Emergency No Opt. Call AAA 21,510,580
Telephone System), Refunding Series 1999, 5.500%, 1/01/23
10,000,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 8,727,600
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/30
7,250,000 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call AAA 6,799,413
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1999A, 5.500%, 12/01/26
3,895,000 City of Chicago, Chicago Midway Airport Revenue Bonds, 1/09 at 101 AAA 3,252,559
Series 1998A, 5.125%, 1/01/35 (Alternative Minimum Tax)
City of Chicago, Multi-Family Housing Revenue Bonds (Archer
Court Apartments), Series 1999A (FHA-Insured/GNMA):
1,000,000 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101 AAA 925,430
1,210,000 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101 AAA 1,103,738
1,925,000 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101 AAA 1,765,264
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 8,275,000 City of Chicago, Chicago-O'Hare International Airport Special 12/04 at 102 Baa1 $ 9,353,977
Facilities Revenue Refunding Bonds (American Air Lines, Inc. Project),
Series 1994, 8.200%, 12/01/24
12,650,000 City of Chicago, Wastewater Transmission Revenue Bonds, 1/06 at 102 AAA 10,950,220
Series 1995, 5.125%, 1/01/25
3,250,000 City of Chicago, Water Revenue Bonds, Series 1995, 5.000%, 11/01/25 11/06 at 102 AAA 2,755,058
5,000,000 City of Chicago, Water Revenue Bonds, Series 1997, 5.250%, 11/01/27 11/07 at 102 AAA 4,393,400
250,000 Illinois Development Finance Authority, Solid Waste Disposal Revenue No Opt. Call BBB 254,310
Bonds (Waste Management, Inc. Project), Series 1990, 7.125%, 1/01/01
(Alternative Minimum Tax)
24,835,000 Illinois Development Finance Authority, Refunding Revenue Bonds, 9/07 at 102 AAA 23,102,262
Series 1999 (The Presbyterian Home Lake Forest Project),
5.625%, 9/01/31
3,935,000 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 1,588,284
Revenue Bonds, Series 1999A (Round Lake Community Unit School
District Number 116 Project), 0.000%, 1/01/15
4,250,000 Illinois Educational Facilities Authority, Revenue Bonds, 9/09 at 100 AAA 4,020,075
MJH Education Assistance Illinois LLC, Series 1998D, 5.450%, 9/01/14
Illinois Health Facilities Authority, Revenue Bonds, Series 1997A
(Loyola University Health System):
1,600,000 5.000%, 7/01/24 (Pre-refunded to 7/01/07) 7/07 at 101 AAA 1,614,416
5,400,000 5.000%, 7/01/24 7/07 at 101 AAA 4,535,298
5,265,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102 A- 4,747,398
Series 1996B (Sarah Bush Lincoln Health Center), 5.500%, 2/15/16
17,280,000 Illinois Health Facilities Authority, Converted Adjustable Rate 10/07 at 102 AAA 17,270,150
Revenue Bonds,Series 1991A (Highland Park Hospital),
6.000%, 10/01/15
3,350,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/01 at 102 Baa3 3,191,043
Series 1991 (Proctor Community Hospital Project), 7.375%, 1/01/23
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
9,750,000 0.000%, 12/15/22 No Opt. Call AAA 2,338,343
33,000,000 0.000%, 12/15/24 No Opt. Call AAA 6,977,850
17,900,000 0.000%, 6/15/25 No Opt. Call AAA 3,660,729
7,500,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick No Opt. Call AAA 7,012,275
Place Expansion Project Refunding Bonds, Series 1998A,
5.500%, 6/15/29
Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999:
22,650,000 5.750%, 6/01/19 No Opt. Call AAA 22,269,933
20,000,000 5.750%, 6/01/23 No Opt. Call AAA 19,532,200
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.4%
9,005,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds 11/09 at 101 AAA 8,310,174
(Charity Obligated Group), Series 1999D, 5.500%, 11/15/24
4,190,000 City of Indianapolis, Indiana, Economic Development Revenue Bonds 6/09 at 101 Aa3 3,959,885
(Park Tudor Foundation Inc., Project), Series 1999, 5.700%, 6/01/24
28,645,000 The Indianapolis Local Public Improvement Bond Bank, Series 1999E, No Opt. Call AAA 6,739,309
0.000%, 2/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.4%
11,300,000 Iowa Higher Education Loan Authority, Private College Facility 10/10 at 102 N/R 11,159,880
Revenue Bonds (Waldorf College Project), Series 1999,
7.375%, 10/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.4%
3,825,000 City of Wichita, Kansas, Water and Sewer Utility Revenue Bonds, 10/06 at 101 AAA 2,903,864
Series 1999, 4.000%, 10/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.0%
4,200,000 Louisville and Jefferson County Metropolitan Sewer District 5/07 at 101 AAA 4,304,412
(Commonwealth of Kentucky), Sewer and Drainage System
Revenue Bonds, Series 1997A, 6.250%, 5/15/26
3,750,000 Louisville and Jefferson County Metropolitan Sewer District 11/07 at 101 AAA 3,339,300
(Commonwealth of Kentucky), Sewer and Drainage System
Revenue Bonds, Series 1997B, 5.200%, 5/15/25
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts - 4.7%
$ 10,305,000 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101 AA- $ 8,835,713
System Bonds, 1997 Series C, 5.000%, 3/01/24
20,775,000 Massachusetts Port Authority, Revenue Bonds, Series 1998-E, 7/08 at 101 AA- 17,317,832
5.000%, 7/01/28 (Alternative Minimum Tax)
11,000,000 Massachusetts Port Authority, PFC Revenue Bonds, 7/09 at 101 AAA 9,977,000
Series 1999-A, 5.125%, 7/01/17
1,150,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102 AAA 1,115,489
(US Air Project), Series 1996-A, 5.875%, 9/01/23
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.1%
8,750,000 City of Detroit, Michigan, Sewage Disposal System Revenue Bonds, 7/07 at 101 AAA 7,599,550
Series 1997A, 5.000%, 7/01/22
10,000,000 Board of Governors of Wayne State University (Michigan), General 11/09 at 101 AAA 8,696,100
Revenue Bonds, Series 1999, 5.125%, 11/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.6%
5,000,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101 AA+ 4,626,600
1998 Series H-1 Fixed Rate Remarketing, 5.650%, 7/01/31
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.3%
2,000,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 2,015,960
Bonds, Series A-5A, 6.200%, 6/01/13 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.6%
15,600,000 New Jersey Economic Development Authority, Solid Waste Facilities No Opt. Call N/R 14,894,100
Revenue Bonds (Bridgewater Resources, Inc. Project),
Series 1999B, 8.250%, 6/01/19 (Alternative Minimum Tax)
10,000,000 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102 Aa2 9,412,400
System Bonds, 1996 Series B, 5.250%, 6/15/16
4,000,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call Aa2 3,983,840
System Bonds, 1999 Series A, 5.750%, 6/15/18
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 16.6%
Long Island Power Authority, Electric System General Revenue Bonds,
Series 1998A:
16,455,000 5.125%, 12/01/22 6/08 at 101 AAA 14,566,131
8,000,000 5.250%, 12/01/26 6/08 at 101 AAA 7,147,280
11,440,000 Metropolitan Transportation Authority, Dedicated Tax Fund Bonds, 4/09 at 101 AAA 10,321,054
Series 1999A, 5.250%, 4/01/23
County of Nassau, New York, General Obligation Bonds, Serial
General Improvement Bonds, Series B:
7,005,000 5.250%, 6/01/19 6/09 at 102 AAA 6,318,230
7,005,000 5.250%, 6/01/20 6/09 at 102 AAA 6,308,003
7,005,000 5.250%, 6/01/21 6/09 at 102 AAA 6,283,625
7,005,000 5.250%, 6/01/22 6/09 at 102 AAA 6,260,018
The City of New York, General Obligation Bonds, Fiscal 1998 Series F:
2,000,000 5.250%, 8/01/14 2/08 at 101 AAA 1,894,580
14,000,000 5.375%, 8/01/19 2/08 at 101 AAA 12,955,740
6,775,000 The City of New York, General Obligation Bonds, Fiscal 1999 Series J, 5/09 at 101 AAA 5,897,841
5.000%, 5/15/20
3,000,000 New York City Health and Hospitals Corporation, Health System Bonds, 2/09 at 101 AAA 2,607,540
1999 Series A, 5.000%, 2/15/20
2,500,000 New York City, Municipal Water Finance Authority, Water and Sewer 6/09 at 101 AAA 2,126,500
System Revenue Bonds, Fiscal 1999 Series B, 5.000%, 6/15/29
5,000,000 New York City Transitional Finance Authority, Future Tax Secured 8/07 at 101 AA 4,252,850
Bonds, Fiscal 1998 Series A, 5.000%, 8/15/27
10,000,000 New York City Transitional Finance Authority, Future Tax Secured 8/09 at 101 AA 9,659,800
Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24
14,970,000 Dormitory Authority of the State of New York, Mental Health Services 2/06 at 102 AAA 13,231,534
Facilities Improvement Revenue Bonds, Series 1996B, 5.125%, 8/15/21
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 4,400,000 Dormitory Authority of the State of New York, Mental Health Services 2/07 at 102 AAA $ 3,974,960
Facilities Improvement Revenue Bonds, Series 1996E, 5.250%, 2/15/18
2,170,000 Dormitory Authority of the State of New York, Frances Schervier 7/07 at 102 AA 2,020,183
Home and Hospital Insured Revenue Bonds (Franciscan Health
Partnership Obligated Group), Series 1997, 5.500%, 7/01/17
7,500,000 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101 1/2 AAA 6,820,650
Revenue Refunding Bonds (Wyckoff Heights Medical Center),
Series 1998H, 5.300%, 8/15/21
10,000,000 Dormitory Authority of the State of New York, City University System 7/09 at 101 AAA 9,290,400
Consolidated Third General Resolution Revenue Bonds,
1999 Series 1, 5.500%, 7/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.7%
13,700,000 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102 N/R 13,748,498
Bonds (Bay Shore Power Project), Convertible Series 1998B,
6.625%, 9/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.2%
18,900,000 City of Philadelphia, Pennsylvania, Airport Revenue Refunding Bonds, 6/08 at 102 AAA 17,616,690
Series 1998A (Philadelphia Airport System), 5.500%, 6/15/18
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.2%
1,875,000 City of Central Falls, Rhode Island, General Obligation School Bonds, 5/09 at 102 AA 1,861,013
6.250%, 5/15/20
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.6%
14,500,000 The Health, Educational and Housing Facilities Board of the 4/09 at 101 Baa1 12,732,305
County of Knox, Revenue Bonds, Series 1999 (University Health
System, Inc.), 5.625%, 4/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 15.0%
7,450,000 Brazos River Authority (Texas), Pollution Control Revenue Refunding 4/08 at 102 AAA 6,784,417
Bonds (Texas Utilities Electric Company Project), Series 1998A,
5.550%, 6/01/30 (Alternative Minimum Tax)
3,000,000 Brazos River Authority (Texas), Pollution Control Revenue Refunding 4/08 at 102 AAA 2,731,980
Bonds (Texas Utilities Electric Company Project), Series 1995C,
5.550%, 6/01/30 (Alternative Minimum Tax)
4,675,000 Carrollton-Farmers Branch Independent School District (Dallas County, 2/09 at 100 AAA 4,682,761
Texas), School Building Unlimited Tax Bonds, Series 1999,
6.000%, 2/15/20 (WI)
8,000,000 Conroe Independent School District, Unlimited Tax Schoolhouse 2/07 at 100 AAA 7,234,240
and Refunding Bonds, Series 1997, 5.250%, 2/15/21
Coppell Independent School District (Dallas County, Texas),
Unlimited Tax School Building and Refunding Bonds, Series 1999:
5,130,000 0.000%, 8/15/20 8/09 at 52 15/32 AAA 1,398,182
7,000,000 0.000%, 8/15/21 8/09 at 49 15/32 AAA 1,788,500
7,340,000 0.000%, 8/15/22 8/09 at 46 21/32 AAA 1,761,527
7,345,000 0.000%, 8/15/23 8/09 at 44 AAA 1,651,964
7,000,000 0.000%, 8/15/24 8/09 at 41 1/2 AAA 1,478,680
7,350,000 0.000%, 8/15/25 8/09 at 39 1/8 AAA 1,454,565
7,000,000 0.000%, 8/15/26 8/09 at 36 29/32 AAA 1,297,590
16,000,000 Dallas-Fort Worth International Airport Facility Improvement 11/02 at 102 Baa2 16,860,160
Corporation, American Airlines, Inc., Revenue Bonds,
Series 1992, 7.250%, 11/01/30 (Alternative Minimum Tax)
Harris County Health Facilities Development Corporation, Revenue
Bonds (CHRISTUS Health), Series 1999A:
12,000,000 5.375%, 7/01/24 7/09 at 101 AAA 10,833,000
16,000,000 5.375%, 7/01/29 7/09 at 101 AAA 14,286,560
2,095,000 Harris County Health Facilities Development Corporation 10/09 at 101 AA 1,958,176
(Texas Children's Hospital Project), Series 1999A, Hospital
Revenue Bonds, 5.375%, 10/01/14
Harris County Housing Finance Corporation, Multifamily Housing
Revenue Bonds (Windfern Pointe and Waterford Place Apartments
Projects), 1999 Senior Series A and B, Subordinate Series C and
Junior Subordinate Series D:
2,860,000 9.000%, 7/01/29 at 103 N/R 2,787,327
12,150,000 6.000%, 7/01/29 7/09 at 102 A 11,445,179
<PAGE>
<CAPTION>
Portfolio of Investments
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
October 31, 1999
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
$ 30,000,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue No Opt. Call AAA $ 7,260,600
Refunding Bonds, Series 1998A, 0.000%, 12/01/22
10,000,000 Irving Independent School District, Unlimited Tax School Building 2/07 at 100 AAA 8,681,300
Bonds, Series 1997, 5.000%, 2/15/21
4,500,000 Lower Neches Valley Authority Industrial Development Corporation 3/08 at 101 AA 4,104,090
(Texas), Refunding Revenue Bonds, Series 1998 (Mobil Oil Refining
Corporation Project), 5.550%, 3/01/33
10,000,000 Tarrant County Health Facilities Development Corporation, 2/08 at 102 AAA 9,073,700
Texas Health Resources System Revenue Bonds, Series 1997A,
5.250%, 2/15/17
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.0%
Utah Housing Finance Agency, Single Family Mortgage Bonds, 1999
Series C-2, Class I Bonds:
3,195,000 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101 1/2 AAA 3,028,413
1,700,000 5.750%, 7/01/21 (Alternative Minimum Tax) No Opt. Call AA 1,612,212
2,700,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101 AA 2,578,608
1999 Series D (Federally Insured or Guaranteed Loans),
5.850%, 7/01/21 (Alternative Minimum Tax)
1,000,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101 1/2 Aa2 1,005,220
1999 Series F, 6.300%, 7/01/21 (WI)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.5%
Port of Seattle (Washington), Special Facility Revenue Bonds
(Terminal 18 Project), Series 1999B:
1,755,000 6.000%, 9/01/15 (Alternative Minimum Tax) 3/10 at 101 AAA 1,753,947
2,590,000 6.000%, 9/01/16 (Alternative Minimum Tax) 3/10 at 101 AAA 2,577,542
Port of Seattle (Washington), Special Facility Revenue Bonds
(Terminal 18 Project), Series 1999C:
875,000 6.000%, 9/01/15 3/10 at 101 AAA 874,475
1,260,000 6.000%, 9/01/16 3/10 at 101 AAA 1,253,939
11,605,000 State of Washington, Certificates of Participation (Washington State 7/00 at 100 AAA 10,666,039
Convention and Trade Center), Series 1999, 5.250%, 7/01/16
State of Washington, General Obligation Compound Interest Bonds,
Series 1999S-2:
16,580,000 0.000%, 1/01/17 No Opt. Call AAA 5,859,206
18,350,000 0.000%, 1/01/18 No Opt. Call AAA 6,060,638
State of Washington, General Obligation Compound Interest Bonds,
Series 1999S-3:
17,650,000 0.000%, 1/01/20 No Opt. Call AA+ 5,139,680
18,470,000 0.000%, 1/01/21 No Opt. Call AA+ 5,048,959
4,800,000 Washington Public Power Supply System, Nuclear Project No. 3 7/07 at 102 AAA 4,425,888
Refunding Revenue Bonds, Series 1997-A, 5.250%, 7/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 3.6%
3,800,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 5/09 at 101 A 3,323,136
Series 1999 (Kenosha Hospital and Medical Center, Inc. Project),
5.625%, 5/15/29
Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1999 (FH Healthcare Development, Inc. Project):
8,225,000 6.250%, 11/15/20 11/09 at 101 N/R 7,739,720
5,000,000 6.250%, 11/15/28 11/09 at 101 N/R 4,635,550
14,000,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 8/09 at 101 Aaa 12,753,440
Series 1999 (Mercy Health System Corporation), 5.500%, 8/15/25
- ------------------------------------------------------------------------------------------------------------------------------------
$1,016,440,000 Total Investments - (cost $829,012,086) - 97.9% 777,745,84
==============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments - 1.5%
$ 4,200,000 Guadalupe-Blanco River Authority (Texas), Pollution Control Revenue VMIG-1 $ 4,200,000
Refunding Bonds (Central Power and Light Company Project),
Series 1995, Variable Rate Demand Bonds, 3.500%, 11/01/15+
4,000,000 Louisville/Jefferson County Regional Airport Authority, Facilities VMIG-1 4,000,000
Revenue Bonds, Series 1999B (UPS Forwarding, Inc. Project),
Variable Rate Demand Bonds, 3.650%, 1/01/29 (Alternative Minimum Tax)+
3,800,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding Bonds VMIG-1 3,800,000
(Exxon Pipeline Company Project), 1993 Series A, Variable Rate
Demand Bonds, 3.500%, 12/01/33+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 12,000,000 Total Short-Term Investments - (cost $12,000,000) - 1.5% 12,000,000
=============
Other Assets Less Liabilities - 0.6% 5,037,033
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $794,782,877
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ 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.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
<CAPTION>
PERFORMANCE PLUS ADVANTAGE OPPORTUNITY DIVIDEND ADVANTAGE
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value
<S> <C> <C> <C> <C> <C>
(note 1) $1,191,348,501 $940,077,449 $1,001,393,542 $777,745,844
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 44,640,000 14,300,000 -- 12,000,000
Cash -- 2,800,420 4,528,599 2,399,140
Receivables:
Interest 21,867,525 19,350,928 20,106,890 12,321,989
Investments sold 13,211,245 7,905,000 1,560,000 --
Other assets 80,300 47,993 54,942 295,154
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,271,147,571 984,481,790 1,027,643,973 804,762,127
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 28,387,147 -- -- --
Payable for investments purchased 16,512,680 20,932,418 -- 5,654,949
Accrued expenses:
Management fees (note 6) 644,922 510,355 542,884 221,486
Other 480,655 375,257 442,810 1,037,608
Preferred share dividends payable 196,208 171,335 190,208 188,732
Common share dividends payable 4,493,548 3,569,512 3,825,398 2,876,475
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 50,715,160 25,558,877 5,001,300 9,979,250
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $1,220,432,411 $958,922,913 $1,022,642,673 $794,782,877
====================================================================================================================================
Preferred shares, at liquidation value $ 400,000,000 $358,000,000 $ 380,000,000 $295,000,000
====================================================================================================================================
Preferred shares outstanding 16,000 14,320 15,200 11,800
====================================================================================================================================
Common shares outstanding 59,914,077 42,980,340 45,540,876 39,117,380
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares at
liquidation value, divided by Common shares
outstanding) $ 13.69 $ 13.98 $ 14.11 $ 12.78
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIVIDEND
PERFORMANCE PLUS ADVANTAGE OPPORTUNITY ADVANTAGE*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1) $ 76,798,735 $ 60,533,971 $ 64,935,407 $ 16,533,864
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 7,980,015 6,108,850 6,444,801 1,963,259
Preferred shares - auction fees 1,000,001 749,998 749,998 185,891
Preferred shares - dividend disbursing agent fees 40,000 42,521 32,520 7,561
Shareholders' servicing agent fees and expenses 223,876 130,928 148,205 10,362
Custodian's fees and expenses 409,506 130,900 200,208 211,226
Directors'/Trustees' fees and expenses (note 6) 12,534 9,245 9,716 1,677
Professional fees 22,317 21,302 21,448 8,673
Shareholders' reports - printing and mailing expenses 299,957 212,585 239,933 35,726
Stock exchange listing fees 53,199 36,847 38,792 10,436
Investor relations expense 118,764 83,129 89,461 15,485
Other expenses 62,617 44,492 41,543 2,771
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 10,222,786 7,570,797 8,016,625 2,453,067
Custodian fee credit (note 1) (254,903) (9,431) (72,618) (181,347)
Expense reimbursement (note 6) -- -- -- (938,559)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 9,967,883 7,561,366 7,944,007 1,333,161
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 66,830,852 52,972,605 56,991,400 15,200,703
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss)
from investment transactions
(notes 1 and 4) (366,395) 144,273 (371,232) (6,053,493)
Net change in unrealized appreciation (depreciation)
of investments (103,177,454) (79,766,302) (82,437,095) (51,266,242)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (103,543,849) (79,622,029) (82,808,327) (57,319,735)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ (36,712,997) $(26,649,424) $(25,816,927) $(42,119,032)
===================================================================================================================================
*For the period May 26, 1999 (commencement of operations) through
October 31, 1999.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
PERFORMANCE PLUS ADVANTAGE
------------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/99 10/31/98 10/31/99 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 66,830,852 $ 70,718,467 $ 52,972,605 $ 52,460,342
Net realized gain (loss) from investment transactions
(notes 1 and 4) (366,395) 6,830,490 144,273 410,207
Net change in unrealized appreciation (depreciation)
of investments (103,177,454) 5,944,124 (79,766,302) 6,827,515
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (36,712,997) 83,493,081 (26,649,424)
59,698,064
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (54,161,633) (56,892,715) (42,644,599) (42,274,725)
Preferred shareholders (12,595,263) (13,848,428) (10,169,082) (10,287,913)
From accumulated net realized gains from investment transactions:
Common shareholders (720,584) -- -- --
Preferred shareholders -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (67,477,480) (70,741,143) (52,813,681)
(52,562,638)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 2,436,387 5,237,739 5,674,526 6,216,101
Preferred shares:
Net proceeds from sale of shares -- -- 57,301,876 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 2,436,387 5,237,739 62,976,402 6,216,101
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (101,754,090) 17,989,677 (16,486,703) 13,351,527
Net assets at the beginning of period 1,322,186,501 1,304,196,824 975,409,616 962,058,089
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $1,220,432,411 $1,322,186,501 $958,922,913 $975,409,616
====================================================================================================================================
Balance of undistributed net investment income at the
end of period $ 1,426,728 $ 1,352,772 $ 1,114,212 $ 955,288
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIVIDEND ADVANTAGE
----------------------------
OPPORTUNITY
------------------------------ FOR THE PERIOD 5/26/99
YEAR ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
10/31/99 10/31/98 THROUGH 10/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C>
Net investment income $ 56,991,400 $ 56,435,388 $ 15,200,703
Net realized gain (loss) from investment transactions
(notes 1 and 4) (371,232) 797,092 (6,053,493)
Net change in unrealized appreciation (depreciation)
of investments (82,437,095) 5,539,573 (51,266,242)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (25,816,927) 62,772,053 (42,119,032)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (45,729,071) (45,439,581) (11,578,052)
Preferred shareholders (10,755,431) (10,834,625) (2,864,236)
From accumulated net realized gains from investment transactions:
Common shareholders (673,786) (1,234,583) --
Preferred shareholders (164,760) (310,600) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (57,323,048) (57,819,389) (14,442,288)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Common shares:
Net proceeds from sale of shares -- -- 559,414,591
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 5,498,147 5,052,060 61,095
Preferred shares:
Net proceeds from sale of shares 79,077,760 -- 291,768,490
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 84,575,907 5,052,060 851,244,176
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 1,435,932 10,004,724 794,682,856
Net assets at the beginning of period 1,021,206,741 1,011,202,017 100,021
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $1,022,642,673 $1,021,206,741 $794,782,877
====================================================================================================================================
Balance of undistributed net investment income at the
end of period $ 1,430,851 $ 923,953 $ 758,415
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Performance Plus Municipal Fund, Inc.
(NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market
Opportunity Fund, Inc. (NMO) and Nuveen Dividend Advantage Municipal Fund (NAD).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
SECURITIES VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
SECURITIES TRANSACTIONS
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
October 31, 1999, Performance Plus, Advantage and Dividend Advantage had
outstanding when-issued and delayed delivery purchase commitments of
$16,512,680, $13,628,720 and $5,654,949, respectively. There were no such
outstanding purchase commitments in Opportunity.
INVESTMENT INCOME
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
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 tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.001 per Common share for Performance Plus and
$.01 per Common share for Advantage, Opportunity and Dividend Advantage.
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. All
monthly tax-exempt income dividends paid during the fiscal year ended October
31, 1999, have been designated Exempt Interest Dividends. Net realized capital
gain and market discount distributions are subject to federal taxation.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions are distributed to shareholders not less frequently
than annually. Furthermore, capital gains are distributed only to the extent
they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted
accounting principles. Accordingly, temporary over-distributions as a result of
these differences may occur and will be classified as either distributions in
excess of net investment income, distributions in excess of net realized gains
and/or distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
<PAGE>
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 by the auction agent.
The number of shares outstanding, by Series and in total, for each Fund is as
follows:
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
- --------------------------------------------------------------------------------
Number of shares:
Series M 4,000 3,000 4,000 4,000
Series T 4,000 3,000 4,000 4,000
Series W 4,000 3,000 3,200 --
Series Th -- 2,320 -- 3,800
Series F 4,000 3,000 4,000 --
- --------------------------------------------------------------------------------
Total 16,000 14,320 15,200 11,800
================================================================================
Effective December 15, 1999, Performance Plus issued 1,760 Series Th $25,000
stated value Preferred shares.
Effective May 14, 1999, Advantage issued 2,320 Series Th $25,000 stated value
Preferred shares.
Effective May 7, 1999, Opportunity issued 3,200 Series W $25,000 stated value
Preferred shares.
Effective July 16, 1999, Dividend Advantage issued 4,000 Series M, 4,000
Series T and 3,800 Series Th $25,000 stated value Preferred shares.
DERIVATIVE FINANCIAL INSTRUMENTS
The Funds may invest in transactions 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 fiscal year ended October 31, 1999.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby the 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.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets 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:
<TABLE>
<CAPTION>
PERFORMANCE PLUS ADVANTAGE
----------------------- ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/99 10/31/98 10/31/99 10/31/98
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of distributions 161,510 335,829 358,976 389,093
- -----------------------------------------------------------------------------------------------------------
161,510 335,829 358,976 389,093
===========================================================================================================
Preferred shares sold -- -- 2,320 --
===========================================================================================================
<CAPTION>
OPPORTUNITY DIVIDEND ADVANTAGE
----------------------- -----------------------
YEAR ENDED YEAR ENDED FOR THE PERIOD 5/26/99
10/31/99 10/31/98 THROUGH 10/31/99
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- -- 39,106,228
Shares issued to shareholders
due to reinvestment of distributions 346,047 313,666 4,170
- -----------------------------------------------------------------------------------------------------------
346,047 313,666 39,110,398
===========================================================================================================
Preferred shares sold 3,200 -- 11,800
===========================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 1999, to shareholders of record
on November 15, 1999, as follows:
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
- --------------------------------------------------------------------------------
Dividend per share $.0750 $.0830 $.0840 $.0740
================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended
October 31, 1999, were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE*
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $371,499,353 $335,046,124 $398,014,646 $927,062,942
Short-term municipal securities 248,465,000 149,080,000 57,270,000 719,064,811
Sales and maturities:
Long-term municipal securities 375,146,377 278,179,433 318,597,189 93,124,156
Short-term municipal securities 205,925,000 136,080,000 63,270,000 707,064,811
===========================================================================================================
</TABLE>
*For the period May 26, 1999 (commencement of operations) through October 31,
1999.
At October 31, 1999, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,254,721,174 $954,609,685 $995,498,813 $841,328,262
==========================================================================================================
</TABLE>
At October 31, 1999, the Funds had unused capital loss carryforwards available
for federal income tax purpose to be applied against future capital gains, if
any. If not applied, the carryforwards will expire as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2001 $ -- $166,788 $ -- $ --
2002 -- 501,699 -- --
2003 -- -- -- --
2004 -- -- -- --
2005 -- -- -- --
2006 -- -- -- --
2007 301,903 -- 412,727 5,737,317
- --------------------------------------------------------------------------------------------------------
Total $301,903 $668,487 $412,727 $5,737,317
========================================================================================================
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 1999, were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $ 28,285,602 $ 25,239,618 $ 36,467,867 $ 497,991
depreciation (47,018,275) (25,471,854) (30,573,138) (52,080,409)
- --------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $(18,732,673) $ (232,236) $ 5,894,729 $(51,582,418)
==============================================================================================================
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Dividend Advantage) investment management agreements
with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The
John Nuveen Company, each Fund pays to the Adviser an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
- ------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
========================================================================
Under Dividend Advantage's investment management agreement with the Advisor, the
Fund pays an annual management fee, payable monthly, at the rates set forth
below, which are based upon the average daily net assets of the Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
- ------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
========================================================================
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Dividend Advantage in an amount equal to .30% of the average daily
net assets for the period May 26, 1999 (commencement of operations) through July
31, 2004, .25% of the average daily net assets for the year ended July 31, 2005,
.20% of the average daily net assets for the year ended July 31, 2006, .15% of
the average daily net assets for the year ended July 31, 2007, .10% of the
average daily net assets for the year ended July 31, 2008, and .05% of the
average daily net assets for the year ended July 31, 2009. The Adviser has not
agreed to reimburse Dividend Advantage for any portion of its fees and expenses
beyond July 31, 2009.
The 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.
<PAGE>
7. COMPOSITION OF NET ASSETS
At October 31, 1999, net assets consisted of:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE*
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value
per share, at liquidation value $ 400,000,000 $358,000,000 $ 380,000,000 $295,000,000
Common shares, $.01 par value per share 599,141 429,803 455,409 391,174
Paid-in surplus 837,441,118 600,279,621 635,274,411 555,953,023
Balance of undistributed net investment income 1,426,728 1,114,212 1,430,851 758,415
Accumulated net realized gain (loss) from
investment transactions (301,903) (784,893) (412,727) (6,053,493)
Net unrealized appreciation (depreciation)
of investments (18,732,673) (115,830) 5,894,729 (51,266,242)
- ----------------------------------------------------------------------------------------------------------
Net assets $1,220,432,411 $958,922,913 $1,022,642,673 $794,782,877
==========================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited
==========================================================================================================
</TABLE>
8. INVESTMENT COMPOSITION
At October 31, 1999, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations 4% 3% 4% 7%
Health Care 10 13 4 20
Housing/Multifamily 4 4 2 2
Housing/Single Family 10 7 5 2
Long-Term Care 1 1 1 3
Tax Obligation/General 11 6 13 19
Tax Obligation/Limited 15 7 14 17
Transportation 5 9 14 11
U.S. Guaranteed 23 27 28 --
Utilities 10 14 7 8
Water and Sewer 7 8 6 8
Other -- 1 2 3
- ---------------------------------------------------------------------------------------------------------
100% 100% 100% 100%
=========================================================================================================
</TABLE>
Certain long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed by
an escrow or trust containing U.S. government or U.S. government agency
securities, both of which ensure the timely payment of principal and interest in
the event of default (64% for Performance Plus, 62% for Advantage, 51% for
Opportunity and 63% for Dividend Advantage).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
9. SUBSEQUENT EVENT
On December 15, 1999, Performance Plus issued 1,760 Series Th $25,000 stated
value Preferred shares.
<PAGE>
Financial Highlights
<PAGE>
Financial Highlights
Selected data for a Common share outstanding throughout each period:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
------------------------------ -------------------------------------------------
Organization
Net Net and Offering
Net Investment Investment Capital Capital Costs and
Realized/ Income To Income To Gains To Gains To Preferred Ending
Beginning Net Unrealized Common Preferred Common Preferred Share Net
Net Asset Investment Investment Share- Share- Share- Share- Underwriting Asset
Value Income Gain (Loss) Total holders holders+ holders holders+ Total Discounts Value
Performance Plus
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $15.43 $1.12 $(1.73) $ (.61) $ (.91) $(.21) $(.01) $-- $(1.13) $-- $13.69
1998 15.22 1.19 .20 1.39 (.95) (.23) -- -- (1.18) -- 15.43
1997 15.07 1.24 .15 1.39 (1.00) (.24) -- -- (1.24) -- 15.22
1996 15.21 1.27 (.12) 1.15 (1.04) (.25) -- -- (1.29) -- 15.07
1995 14.40 1.32 .85 2.17 (1.08) (.28) -- -- (1.36) -- 15.21
<CAPTION>
Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 15.85 1.24 (1.85) (.61) (1.00) (.24) -- -- (1.24) (.02) 13.98
1998 15.68 1.24 .17 1.41 (1.00) (.24) -- -- (1.24) -- 15.85
1997 15.48 1.27 .21 1.48 (1.03) (.25) -- -- (1.28) -- 15.68
1996 15.57 1.29 (.07) 1.22 (1.05) (.26) -- -- (1.31) -- 15.48
1995 14.60 1.33 1.01 2.34 (1.09) (.28) -- -- (1.37) -- 15.57
<CAPTION>
Opportunity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 15.96 1.26 (1.83) (.57) (1.01) (.24) (.01) -- (1.26) (.02) 14.11
1998 15.85 1.25 .15 1.40 (1.01) (.24) (.03) (.01) (1.29) -- 15.96
1997 15.66 1.29 .20 1.49 (1.04) (.26) -- -- (1.30) -- 15.85
1996 15.77 1.30 (.10) 1.20 (1.05) (.26) -- -- (1.31) -- 15.66
1995 14.69 1.33 1.12 2.45 (1.09) (.28) -- -- (1.37) -- 15.77
<CAPTION>
Dividend Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (a) 14.33 .39 (1.47) (1.08) (.30) (.07) -- -- (.37) (.10) 12.78
<PAGE>
<CAPTION>
Total Returns Ratios/Supplemental Data
---------------- -------------------------------------------------------------
Before Credit/Reimbursement
---------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
Based to Average Average to Average Average
Based on Ending Net Assets Net Assets Total Total
Ending on Net Net Applicable Applicable Net Assets Net Assets
Market Market Asset Assets to Common to Common Including Including
Value Value** Value** (000) Shares++ Shares++ Preferred++ Preferred++
Performance Plus
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $12.9375 (10.76)% (5.63)% $1,220,432 1.15% 7.48% .79% 5.16%
1998 15.4375 9.48 7.87 1,322,187 1.11 7.74 .77 5.38
1997 15.0000 5.94 7.89 1,304,197 1.12 8.24 .77 5.69
1996 15.1250 6.17 6.15 1,290,635 1.13 8.47 .78 5.83
1995 15.2500 22.77 13.58 1,289,804 1.13 8.88 .78 6.08
<CAPTION>
Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 13.6250 (8.16) (5.83) 958,923 1.16 8.12 .77 5.41
1998 15.8125 5.58 7.65 975,410 1.12 7.84 .78 5.41
1997 15.9375 12.57 8.20 962,058 1.14 8.23 .78 5.64
1996 15.1250 7.04 6.37 951,656 1.14 8.37 .78 5.72
1995 15.1250 20.69 14.62 954,277 1.15 8.80 .78 5.98
<CAPTION>
Opportunity
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 13.5625 (9.18) (5.49) 1,022,643 1.15 8.18 .77 5.50
1998 15.9375 5.40 7.45 1,021,207 1.09 7.88 .77 5.55
1997 16.1250 13.01 8.12 1,011,202 1.10 8.25 .77 5.78
1996 15.2500 8.82 6.15 1,000,987 1.10 8.29 .77 5.81
1995 15.0000 21.98 15.30 1,005,798 1.10 8.70 .76 6.04
<CAPTION>
Dividend Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (a) 13.6250 (7.29) (8.83) 794,783 1.06* 6.10* .77* 4.41*
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------------------
After Credit/Reimbursement***
----------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
Performance Plus
Year Ended 10/31:
<S> <C> <C> <C> <C> <C>
1999 1.12% 7.51% .77% 5.18% 30%
1998 1.11 7.74 .77 5.38 23
1997 1.12 8.24 .77 5.69 12
1996 1.13 8.47 .78 5.83 15
1995 1.13 8.88 .78 6.08 7
<CAPTION>
Advantage
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.16 8.12 .77 5.41 29
1998 1.12 7.84 .78 5.41 8
1997 1.14 8.23 .78 5.64 8
1996 1.14 8.37 .78 5.72 13
1995 1.15 8.80 .78 5.98 4
<CAPTION>
Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.14 8.19 .77 5.50 31
1998 1.09 7.88 .77 5.55 13
1997 1.10 8.25 .77 5.78 20
1996 1.10 8.29 .77 5.81 19
1995 1.10 8.70 .76 6.04 13
Dividend Advantage
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (a) .58* 6.58* .42* 4.76* 16
* Annualized.
** Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in stock
price per share.
Total Return on Net Asset Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in net asset value per share.
Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 6).
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period May 26, 1999 (commencement of operations) through October 31,
1999.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: NUVEEN OFFERS A NUMBER OF CONVENIENT WAYS TO ADD TO YOUR PORTFOLIO
AND EARN THE TAX-FREE INCOME YOU NEED TO ACHIEVE YOUR FINANCIAL GOALS.
Sidebar text: NUVEEN OFFERS A NUMBER OF CONVENIENT WAYS TO ADD TO YOUR PORTFOLIO
AND EARN THE TAX-FREE INCOME YOU NEED TO ACHIEVE YOUR FINANCIAL GOALS.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
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. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
To be effective, dollar cost averaging requires that you invest over a long
period of time and does not assure that you will profit.
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.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
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, of course, 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 also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. 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 adviser or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
Our Year 2000 review, repair, and testing program has been substantially
completed. This program included industry-wide testing of critical systems and
receipt of satisfactory assurances from critical service providers, vendors, and
issuers regarding their Year 2000 readiness. We will continue more refined
testing of our systems and their relationships with other parties' systems and
will regularly discuss the results of this testing with those parties. We are
also making Year 2000 contingency plans to guide recovery efforts in the event
that, despite our remediation attempts, Year 2000 issues adversely affect the
Funds. Although we can never have complete assurance that the steps we take will
be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds, we can assure you that we will take all reasonable steps
to prevent disruption of the services provided by your Fund.
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Photo of: JOHN NUVEEN, SR.
Serving Investors for Generations
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO:
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-2-10-99
