LOGO: NUVEEN Investments
ANNUAL REPORT October 31, 2000
Municipal Closed-End
Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
PERFORMANCE PLUS
NPP
MUNICIPAL ADVANTAGE
NMA
MARKET OPPORTUNITY
NMO
DIVIDEND ADVANTAGE
NAD
2 Photos of: People walking and talking.
INVEST WELL.
LOOK AHEAD.
LEAVE YOUR MARK.(SM)
<PAGE>
Credit Quality
HIGHLIGHTS As of October 31, 2000
PIE CHARTS:
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
AAA/U.S. Guaranteed 69%
AA 14%
A 10%
BBB 4%
NR 3%
Nuveen Municipal Advantage Fund, Inc. (NMA)
AAA/U.S. Guaranteed 65%
AA 14%
A 9%
BBB 11%
NR 1%
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
AAA/U.S. Guaranteed 51%
AA 14%
A 16%
BBB 15%
NR 3%
Other 1%
Nuveen Dividend Advantage Municipal Fund, Inc. (NAD)
AAA/U.S. Guaranteed 61%
AA 16%
A 3%
BBB 5%
NR 12%
Other 3%
CONTENTS
1 Dear Shareholder
3 Portfolio Managers' Comments
6 NPP Performance Overview
7 NMA Performance Overview
8 NMO Performance Overview
9 NAD Performance Overview
10 Shareholder Meeting Report
14 Report of Independent Auditors
15 Portfolio of Investments
43 Statement of Net Assets
44 Statement of Operations
45 Statement of Changes in Net Assets
47 Notes to Financial Statements
53 Financial Highlights
56 Build Your Wealth Automatically
57 Fund Information
--------------------------------------------------------------------------------
COMPOUND YOUR WEALTH - AUTOMATICALLY
All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital
gains directly into additional shares of your Fund. This is a great way to see
your investment grow through the power of compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT
RISKS."
Dear
SHAREHOLDER
One of the primary goals of your Nuveen Fund is to provide you with attractive,
dependable tax-free income from a quality port-folio. I am pleased to report
that over the past fiscal year your Fund has continued to meet these objectives.
I urge you to read the Portfolio Managers' Comments and Performance Overview
pages included in this report, which provide more details about Fund results,
how they were achieved, and how the Funds are trying to position themselves for
the future.
The uncertain markets of this past reporting period also remind us of another
important reason for investing in Nuveen Funds. In times such as these, your
Nuveen Fund can help bring a measure of diversification to your overall
portfolio and serve as a useful counterbalance to other holdings. A
well-balanced portfolio can help you reduce your investment risks and provide
one of the keys to strong long-term performance.
Invest Well. Look Ahead. Leave Your Mark.
At Nuveen, we believe that investors should focus not only on investments that
can help them accumulate wealth, but also on the plans and services that can
help preserve that wealth and pass it along to future generations. This
long-term perspective is an integral part of our portfolio management
strategies, our insistence on quality, and our desire to provide investments
that can withstand the test of time.
<PAGE>
Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND
ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN
BE AN INVALUABLE RESOURCE."
In establishing a program tailored to your needs, the sound ongoing advice and
disciplined focus provided by a trusted financial advisor can be an invaluable
resource, enabling you to make wise investment decisions and build a program
that can result in a lasting legacy.
For more than a century, Nuveen has offered quality investments to those who
recognize and embrace the need for building, preserving and managing wealth. All
of us at Nuveen are dedicated to working with you and your financial advisor to
provide the services, products, perspectives, and solutions that can help you
meet your personal and family financial goals, now and for years to come. We
thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2000
<PAGE>
Nuveen National Closed-End Exchange-Traded Funds (NPP, NMA, NMO, NAD)
Portfolio Managers'
COMMENTS
Portfolio managers Steve Peterson, Rick Huber, and Bill Fitzgerald review the
economic environment, key investment strategies, and the performance of the
Nuveen Closed-End Municipal Funds. Steve and Rick have managed NPP and NMA,
respectively, since 1998, with Steve adding portfolio management duties for NAD
at its inception in May 1999. Bill has managed NMO since its inception in 1990.
WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET OVER THE
PAST 12 MONTHS?
The major news affecting the fixed-income markets over the past fiscal year has
been the Federal Reserve's tightening policy. In an effort to keep inflation in
check, the Fed continued to raise interest rates through May 2000, eventually
bringing the federal funds target rate to 6.50%, the highest level in almost a
decade. The Fed's policy has been to try to slow economic growth without causing
a recession.
Some recent evidence has suggested that the Fed effort may be having an impact.
While the U.S. economic expansion has reached a record tenth year, several
indicators point to slowing growth. As a result, the Fed now seems to have put
additional rate increases on hold, with some anticipating that the current
tightening cycle may have reached its end.
Although the Fed rate hikes and hints of an economic slowdown have affected the
municipal bond market, several supply and demand factors helped to prevent a
major increase in rates or drop in value. New issue supply of municipal bonds
during the first 10 months of 2000 totaled $154 billion nationwide, down 17.5%
from 1999 levels. At this rate, the supply of municipal bonds could finish 2000
at its lowest level since 1995. The generally favorable economic conditions in
many cities and states have enabled many issuers to use pay-as-you-go funding
for necessary projects, holding the supply of new bonds in check. At the same
time, demand from individual investors looking for diversification and income
has remained strong. As a result, current municipal bond prices and yields are
comparable to those of a year ago.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST YEAR?
For the fiscal year ended October 31, 2000, the Nuveen National Municipal
Closed-End Funds produced total returns on net asset value (NAV) as shown in the
accompanying table. The annual returns for the Lehman Brothers Municipal Bond
Index(1) and the Funds' Lipper Peer Group(2) are also presented.
MARKET TOTAL RETURN LEHMAN LIPPER
YIELD ON NAV TOTAL RETURN(1) AVERAGE(2)
-----------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
10/31/00 EQUIVALENT(3) 10/31/00 10/31/00 10/31/00
-----------------------------------------------------------------------------
NPP 6.60% 9.57% 11.47% 8.51% 9.47%
-----------------------------------------------------------------------------
NMA 6.71% 9.72% 11.48% 8.51% 9.47%
-----------------------------------------------------------------------------
NMO 6.92% 10.03% 9.41% 8.51% 9.47%
-----------------------------------------------------------------------------
NAD 6.61% 9.58% 13.61% 8.51% 9.47%
-----------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Early in the year, as the Fed's series of interest rate hikes pushed yields
higher, municipal bond prices underwent a corresponding drop. Over the summer
and fall, however, the tight supply of new municipal issues and generally
favorable technicals helped to prompt a shift in market outlook, rallying the
municipal market and boosting the prices of many bonds. In this recent
environment, we would expect funds with longer durations4 to perform well. As of
October 31, 2000, NPP, NMA and NMO had durations ranging from 13.00 to 13.76,
while the 17-month-old NAD had a duration of 17.31. By comparison, the duration
of the unleveraged Lehman Brothers Municipal Bond Index was 7.40.
The Funds' participation in the recovery of the municipal market is reflected in
the total returns on NAV listed above. They show dramatic improvement over the
results shown in the Funds' semiannual report last
1 The Funds' performances are compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not reflect
any expenses.
2 The total returns of the Funds are compared with the average annualized return
of the 53 funds in the Lipper General Leveraged Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 31%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
<PAGE>
spring. As of October 31, 2000, long-term municipal yields were more than 99% of
30-year Treasury yields, compared with the historical average of 86% for the
period 1986-1999.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT?
All four of these Funds use leverage as a way to potentially enhance the
dividends paid to common shareholders. The extent of this benefit, however, is
tied in part to the short-term rates that the Funds pay their MuniPreferred(R)
shareholders. When short-term rates rise, the Funds must pay out more income to
preferred shareholders, decreasing the amount of income available for common
shareholders. As the Federal Reserve raised short-term rates six times between
June 1999 and May 2000, these increases had a corresponding impact on short-term
municipal rates. Higher rates, combined with bond calls in several of the Funds,
led to decreases in the common share dividends of each of these Funds over the
past year. Despite these dividend adjustments, all of the Funds continued to
provide competitive market yields, as shown in the accompanying table.
Recently, investor demand for municipal bonds with shorter maturities has caused
the slope of the municipal yield curve to become very steep. The increased
demand for short-maturity bonds could have beneficial effects on the dividend
stability of these leveraged Funds going forward by holding short-term rates
down and reducing the amount the Funds pay their MuniPreferred shareholders.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
During late 1999 and the first half of 2000, uncertainties about inflation and
interest rates, coupled with investors' focus on equity market performance,
tended to dampen interest in most fixed-income products. The lack of demand put
pressure on the prices of many municipal bond investments, including these
Nuveen Funds. In recent months, as the bond market began to show signs of
recovery and the stock market continued to be volatile, we believe many
investors began to again consider tax-free fixed-income alternatives.
However, investor interest in this opportunity continued to lag the rise in
value of the bonds held by the Funds. Consequently, NPP, NMA and NMO saw their
discounts (share price below NAV) widen over the past 12 months, while NAD moved
from trading at a premium (share price above NAV) to a discount. With the market
prices of these Funds lower than the actual value of the bonds in their
portfolios, shareholders may want to consider taking advantage of this
opportunity to add to their holdings of their Nuveen Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2000?
Despite a slow start, the past fiscal year turned out to be generally positive
for the fixed-income markets, including municipal bonds. During this period, we
focused on strengthening the Funds' long-term dividend-paying capabilities,
enhancing call protection, and finding value in specific areas of the market,
including healthcare, utilities, and tobacco and industrial development bonds.
For example, while the healthcare industry continued to face challenging times,
we believed that selective opportunities remained within this sector as
hospitals became more efficient in managing revenue streams and improving cost
structure and operating incomes. We took advantage of this investment
opportunity to make several purchases of healthcare bonds with the potential to
add value for our shareholders. In NMO, we bought bonds issued by the Minnesota
Agricultural and Economic Development Board for Fairview Health Services. Since
our purchase in May, this credit has performed well for the Fund.
All four Funds also had utilities among their top five sector weightings. Over
the past 12 months, NPP and NAD added to holdings in this sector by purchasing
high-yield credits issued by co-generation projects, in which an independent
power producer burns natural gas to produce electricity. With the price of
electricity rising due to the current supply/demand imbalance, we believe that
power producers have become increasingly economically viable and creditworthy,
and these bonds have been performing well for the Funds.
<PAGE>
Tobacco bonds, which are secured by payments under the $250 billion master
settlement agreement reached between four major tobacco companies and 46 states
in 1998, were another area of the market that we believed offered value. During
the past year, NMO purchased bonds issued on behalf of Nassau County (New York)
by the Tobacco Settlement Corporation that provided both attractive yields and
good performance. As of October 31, 2000, these bonds accounted for 2% of the
Fund's assets.
In other management activity over the past fiscal year, we took advantage of
bond calls in NMA to continue restructuring the Fund by purchasing what we
believe to be attractively priced replacement bonds that provided good levels of
income, quality, diversification, and price appreciation potential. Instead of
simply replacing the called bonds with new long-term bonds, we chose to ladder
the portfolio across the yield curve to spread out future call exposure. While
NMA's duration lengthened as we worked through the calls, laddering helped us to
control the Fund's interest rate risk.
All four Funds continued to offer excellent credit quality, with between 65% and
83% of their assets invested in bonds rated AAA/U.S. guaranteed and AA as of
October 31, 2000. The Funds also had allocations of BBB/non-rated bonds that
ranged from 7% to 18%, which generally provided higher yields. NAD, which can
invest up to 20% of its assets in non-investment-grade bonds, currently has
about 3% of its portfolio allocated to this category. Over the past 12 months,
NPP, NMA, and NMO saw their allocations of U.S. guaranteed bonds drop
substantially. Virtually all of these bonds were pre-refunded and were either
called as expected or sold just prior to their call dates. We used this
opportunity to enhance the Funds' diversification by reinvesting the proceeds
throughout the yield curve and across market sectors. We expect to see this
activity continue through 2001.
WHAT IS YOUR OUTLOOK FOR THESE NUVEEN NATIONAL FUNDS?
In general, our outlook for the fixed-income markets over the next 12 months is
positive. Current projections call for continued strong demand for municipal
bonds, while new municipal issuance nationwide in 2001 is expected to stay under
$200 billion. These supply-and-demand dynamics should continue to provide
support for the municipal market and municipal bond prices.
Looking specifically at these Nuveen National Funds, all four Funds offer
excellent levels of call protection over the next two years. NAD has about 1% of
its portfolio scheduled for calls between now and the end of 2002, while calls
could affect 8-11% of the NPP, NMA and NMO portfolios in 2001 and 2002. The
interest rate environment over the next two years will play a major role in
whether these bonds are actually called. While we cannot control the direction
of interest rates, we continue to work to improve the Funds' call protection and
to actively manage the Funds in an effort to mitigate the longer-term effects of
the bond call process.
In addition to bond calls, we plan to continue to focus on strengthening the
Funds' dividend-payment capabilities, taking advantage of the wider credit
spreads currently available in the marketplace. The high credit quality of these
Funds gives us room to increase our allocations of lower-rated issues with the
potential to enhance current portfolio yields and future capital appreciation.
As value-oriented investors, we will also continue to look for areas of the
market that offer opportunities to add value for our shareholders, particularly
healthcare, industrial development bonds, and transportation. In NAD, we plan to
continue our efforts to shorten the Fund's duration and reduce its interest rate
risk. We believe these Nuveen Funds will continue to serve as a dependable
source of tax-free income and portfolio diversification, two essential elements
of a comprehensive investment strategy.
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NPP
PORTFOLIO STATISTICS
-----------------------------------------------------
Inception Date 6/89
-----------------------------------------------------
Share Price $12 3/16
-----------------------------------------------------
Net Asset Value $14.36
-----------------------------------------------------
Market Yield 6.60%
-----------------------------------------------------
Taxable-Equivalent Yield(1) 9.57%
-----------------------------------------------------
Fund Net Assets ($000) $1,304,556
-----------------------------------------------------
Average Effective Maturity (Years) 19.14
-----------------------------------------------------
Leverage-Adjusted Duration 13.76
-----------------------------------------------------
ANNUALIZED TOTAL RETURN
-----------------------------------------------------
ON SHARE PRICE ON NAV
-----------------------------------------------------
1-Year 0.90% 11.47%
-----------------------------------------------------
5-Year 2.09% 5.38%
-----------------------------------------------------
10-Year 6.30% 7.76%
-----------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
-----------------------------------------------------
Tax Obligation/Limited 14%
-----------------------------------------------------
U.S.Guaranteed 13%
-----------------------------------------------------
Utilities 13%
-----------------------------------------------------
Tax Obligation/General 12%
-----------------------------------------------------
Healthcare 12%
-----------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share(2)
11/99 0.075
12/99 0.072
1/00 0.072
2/00 0.072
3/00 0.072
4/00 0.072
5/00 0.072
6/00 0.067
7/00 0.067
8/00 0.067
9/00 0.067
10/00 0.067
LINE CHART:
Share Price Performance
11/5/99 12.69
12.63
12.31
12.25
11.88
11.44
11.63
11.63
11.81
11.44
11.69
12.13
12.31
12.31
12.25
12.06
12.13
11.63
11.44
11.75
12.06
12.25
12.13
11.75
11.81
11.69
11.44
11.56
11.75
12.19
11.94
11.88
11.81
12
12.25
12.13
12.31
12.44
12.5
12.75
12.63
12.69
12.81
12.88
12.56
12.25
12.25
12.31
12.25
12.13
10/31/00 12.19
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. It is
calculated using the current market yield and a federal income tax rate of
31%.
2 The Fund also paid shareholders a net ordinary income distribution in December
1999 of $0.0023 per share.
<PAGE>
Nuveen Municipal Advantage Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NMA
PORTFOLIO STATISTICS
------------------------------------------------------
Inception Date 12/89
------------------------------------------------------
Share Price $12 7/8
------------------------------------------------------
Net Asset Value $14.61
------------------------------------------------------
Market Yield 6.71%
------------------------------------------------------
Taxable-Equivalent Yield(1) 9.72%
------------------------------------------------------
Fund Net Assets ($000) $986,099
------------------------------------------------------
Average Effective Maturity (Years) 21.93
------------------------------------------------------
Leverage-Adjusted Duration 13.00
------------------------------------------------------
ANNUALIZED TOTAL RETURN
------------------------------------------------------
ON SHARE PRICE ON NAV
------------------------------------------------------
1-Year 1.46% 11.48%
------------------------------------------------------
5-Year 3.46% 5.40%
------------------------------------------------------
10-Year 6.42% 7.90%
------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
------------------------------------------------------
Housing Single Family 16%
------------------------------------------------------
Healthcare 15%
------------------------------------------------------
Utilities 12%
------------------------------------------------------
Tax Obligation/Limited 11%
------------------------------------------------------
Transportation 11%
------------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.083
12/99 0.08
1/00 0.08
2/00 0.08
3/00 0.077
4/00 0.077
5/00 0.077
6/00 0.072
7/00 0.072
8/00 0.072
9/00 0.072
10/00 0.072
LINE CHART:
Share Price Performance
11/5/99 13.88
13.5
13.56
13.13
12.38
12.06
12.13
12
12.44
12.38
12.19
13
13.13
13.31
13.06
13
12.81
12.19
11.81
12.25
12.5
12.81
12.69
12.38
12.19
12.38
12.13
12.38
12.44
12.75
12.31
12.31
12.38
12.56
12.75
12.75
12.81
13.06
12.81
12.94
12.94
13.06
13.25
13.25
13.06
12.94
13
12.75
12.69
12.44
10/31/00 12.56
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. It is
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
Nuveen Municipal Market Opportunity Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NMO
PORTFOLIO STATISTICS
--------------------------------------------------------
Inception Date 3/90
--------------------------------------------------------
Share Price $13
--------------------------------------------------------
Net Asset Value $14.45
--------------------------------------------------------
Market Yield 6.92%
--------------------------------------------------------
Taxable-Equivalent Yield(1) 10.03%
--------------------------------------------------------
Fund Net Assets ($000) $1,038,070
--------------------------------------------------------
Average Effective Maturity (Years) 21.59
--------------------------------------------------------
Leverage-Adjusted Duration 13.08
--------------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------
1-Year 2.97% 9.41%
--------------------------------------------------------
5-Year 3.92% 4.98%
--------------------------------------------------------
10-Year 6.66% 7.63%
--------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------------
Transportation 22%
--------------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------------
Tax Obligation/Limited 18%
--------------------------------------------------------
Healthcare 10%
--------------------------------------------------------
Utilities 7%
--------------------------------------------------------
LINE CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.084
12/99 0.081
1/00 0.081
2/00 0.081
3/00 0.078
4/00 0.078
5/00 0.078
6/00 0.075
7/00 0.075
8/00 0.075
9/00 0.075
10/00 0.075
BAR CHART:
Share Price Performance
11/5/99 14.06
13.56
13.63
13.19
12.5
12.13
12.19
12.25
12.44
12.44
12.31
12.94
13.19
13.25
13.13
12.75
12.69
11.94
11.88
12.13
12.56
12.88
12.75
12.44
12.44
12.5
12.25
12.38
12.44
12.75
12.69
12.63
12.69
12.94
13.31
13.25
13.19
13.25
13
13.44
13.31
13.5
13.63
13.56
13.5
13.38
13.31
13.25
12.88
12.63
10/31/00 12.81
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. It is
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
Nuveen Dividend Advantage Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NAD
PORTFOLIO STATISTICS
------------------------------------------------------
Inception Date 5/99
------------------------------------------------------
Share Price $12 5/8
------------------------------------------------------
Net Asset Value $13.59
------------------------------------------------------
Market Yield 6.61%
------------------------------------------------------
Taxable-Equivalent Yield(1) 9.58%
------------------------------------------------------
Fund Net Assets ($000) $826,571
------------------------------------------------------
Average Effective Maturity (Years) 21.21
------------------------------------------------------
Leverage-Adjusted Duration 17.31
------------------------------------------------------
ANNUALIZED TOTAL RETURN
------------------------------------------------------
ON SHARE PRICE ON NAV
------------------------------------------------------
1-Year -0.79% 13.61%
------------------------------------------------------
Since Inception -5.66% 2.48%
------------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
------------------------------------------------------
Tax Obligation/Limited 17%
------------------------------------------------------
Healthcare 16%
------------------------------------------------------
Tax Obligation/General 17%
------------------------------------------------------
Transportation 14%
------------------------------------------------------
Utilities 9%
------------------------------------------------------
LINE CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.074
12/99 0.074
1/00 0.074
2/00 0.074
3/00 0.0725
4/00 0.0725
5/00 0.0725
6/00 0.0695
7/00 0.0695
8/00 0.0695
9/00 0.0695
10/00 0.0695
BAR CHART:
Share Price Performance
11/5/99 13.38
12.94
13.06
12.63
12.5
12.44
12.31
12.13
12.88
12.94
12.38
13
12.81
12.88
12.94
12.88
12.44
12.25
11.81
12
12.38
12.63
12.25
12.5
12.31
12.75
12.06
11.94
12
12.38
12.56
12.38
12.19
12.25
12.5
12.38
12.25
12.31
13
13.06
12.94
12.81
12.88
13
12.88
12.88
13.13
12.88
12.69
12.44
10/31/00 12.44
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. It is
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
Shareholder
MEETING REPORT
The annual shareholder meeting was held on July 26, 2000, at the Northern Trust
Bank, Chicago, Illinois.
<TABLE>
<CAPTION>
NPP
------------------------------------------------------------------------------------------------------------------------------------
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
====================================================================================================================================
Robert P. Bremner
<S> <C> <C> <C> <C> <C> <C>
For 50,208,250 3,495 3,670 3,087 1,760 3,191
Withhold 814,729 -- 15 15 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total 51,022,979 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
Lawrence H. Brown
For 50,185,589 3,495 3,670 3,087 1,760 3,191
Withhold 837,390 -- 15 15 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total 51,022,979 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
Anne E. Impellizzeri
For 50,146,047 3,495 3,670 3,087 1,760 3,191
Withhold 876,932 -- 15 15 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total 51,022,979 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
Peter R. Sawers
For 50,182,418 3,495 3,670 3,087 1,760 3,191
Withhold 840,561 -- 15 15 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total 51,022,979 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
Judith M. Stockdale
For 50,169,120 3,495 3,670 3,087 1,760 3,181
Withhold 853,859 -- 15 15 -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total 51,022,979 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
William J. Schneider
For -- 3,495 3,670 3,087 1,760 3,191
Withhold -- -- 15 15 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,495 3,670 3,087 1,760 3,191
Withhold -- -- 15 15 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 50,336,668 3,474 3,673 3,086 1,760 3,191
Against 252,861 -- 4 -- -- --
Abstain 433,450 21 8 16 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total 51,022,979 3,495 3,685 3,102 1,760 3,194
====================================================================================================================================
<PAGE>
<CAPTION>
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
====================================================================================================================================
Robert P. Bremner
<S> <C> <C> <C> <C> <C> <C>
For 37,225,624 2,834 2,889 2,557 1,747 2,641
Withhold 634,278 23 14 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total 37,859,902 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
Lawrence H. Brown
For 37,218,917 2,834 2,889 2,557 1,747 2,641
Withhold 640,985 23 14 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total 37,859,902 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
Anne E. Impellizzeri
For 37,227,133 2,834 2,889 2,557 1,747 2,641
Withhold 632,769 23 14 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total 37,859,902 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
Peter R. Sawers
For 37,217,935 2,831 2,867 2,557 1,747 2,641
Withhold 641,967 26 36 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total 37,859,902 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
Judith M. Stockdale
For 37,198,991 2,831 2,867 2,557 1,747 2,641
Withhold 660,911 26 36 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total 37,859,902 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
William J. Schneider
For -- 2,834 2,889 2,557 1,747 2,641
Withhold -- 23 14 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,834 2,889 2,557 1,747 2,641
Withhold -- 23 14 2 20 21
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 37,374,622 2,832 2,884 2,559 1,767 2,637
Against 173,368 -- -- -- -- --
Abstain 311,912 25 19 -- -- 25
------------------------------------------------------------------------------------------------------------------------------------
Total 37,859,902 2,857 2,903 2,559 1,767 2,662
====================================================================================================================================
<PAGE>
<CAPTION>
Shareholder MEETING REPORT (continued)
The annual shareholder meeting was held on July 26, 2000, at the
Northern Trust Bank, Chicago, Illinois.
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
<S> <C> <C> <C> <C> <C>
For 39,325,469 3,538 3,708 3,104 3,591
Withhold 1,063,288 1 -- 20 3
------------------------------------------------------------------------------------------------------------------------------------
Total 40,388,757 3,539 3,708 3,124 3,594
====================================================================================================================================
Lawrence H. Brown
For 39,321,464 3,538 3,708 3,104 3,591
Withhold 1,067,293 1 -- 20 3
------------------------------------------------------------------------------------------------------------------------------------
Total 40,388,757 3,539 3,708 3,124 3,594
====================================================================================================================================
Anne E. Impellizzeri
For 39,298,194 3,538 3,708 3,104 3,591
Withhold 1,090,563 1 -- 20 3
------------------------------------------------------------------------------------------------------------------------------------
Total 40,388,757 3,539 3,708 3,124 3,594
====================================================================================================================================
Peter R. Sawers
For 39,326,665 3,538 3,708 3,103 3,592
Withhold 1,062,092 1 -- 21 2
------------------------------------------------------------------------------------------------------------------------------------
Total 40,388,757 3,539 3,708 3,124 3,594
====================================================================================================================================
Judith M. Stockdale
For 39,293,844 3,538 3,708 3,103 3,591
Withhold 1,094,913 1 -- 21 3
------------------------------------------------------------------------------------------------------------------------------------
Total 40,388,757 3,539 3,708 3,124 3,594
====================================================================================================================================
William J. Schneider
For -- 3,538 3,708 3,104 3,592
Withhold -- 1 -- 20 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,539 3,708 3,124 3,594
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,538 3,708 3,104 3,592
Withhold -- 1 -- 20 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,539 3,708 3,124 3,594
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 39,338,332 3,537 3,708 3,108 3,592
Against 161,422 -- -- -- --
Abstain 889,003 2 -- 16 2
------------------------------------------------------------------------------------------------------------------------------------
Total 40,388,757 3,539 3,708 3,124 3,594
====================================================================================================================================
<PAGE>
<CAPTION>
NAD
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-M Series-T Series-TH
====================================================================================================================================
Robert P. Bremner
<S> <C> <C> <C> <C>
For 37,505,957 3,564 3,334 3,257
Withhold 398,815 89 85 85
------------------------------------------------------------------------------------------------------------------------------------
Total 37,904,772 3,653 3,419 3,342
====================================================================================================================================
Lawrence H. Brown
For 37,479,638 3,564 3,334 3,257
Withhold 425,134 89 85 85
------------------------------------------------------------------------------------------------------------------------------------
Total 37,904,772 3,653 3,419 3,342
====================================================================================================================================
Anne E. Impellizzeri
For 37,469,043 3,563 3,334 3,256
Withhold 435,729 90 85 86
------------------------------------------------------------------------------------------------------------------------------------
Total 37,904,772 3,653 3,419 3,342
====================================================================================================================================
Peter R. Sawers
For 37,473,913 3,564 3,334 3,257
Withhold 430,859 89 85 85
------------------------------------------------------------------------------------------------------------------------------------
Total 37,904,772 3,653 3,419 3,342
====================================================================================================================================
Judith M. Stockdale
For 37,478,575 3,564 3,334 3,256
Withhold 426,197 89 85 86
------------------------------------------------------------------------------------------------------------------------------------
Total 37,904,772 3,653 3,419 3,342
====================================================================================================================================
William J. Schneider
For -- 3,564 3,334 3,257
Withhold -- 89 85 85
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,653 3,419 3,342
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,563 3,334 3,257
Withhold -- 90 85 85
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,653 3,419 3,342
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 37,516,429 3,565 3,334 3,256
Against 154,137 88 51 85
Abstain 234,206 -- 34 1
------------------------------------------------------------------------------------------------------------------------------------
Total 37,904,772 3,653 3,419 3,342
====================================================================================================================================
</TABLE>
<PAGE>
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000, 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, 2000, and the results of their
operations, changes in their net assets and financial highlights for the periods
indicated therein in conformity with accounting principles standards generally
accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
December 18, 2000
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
Portfolio of
INVESTMENTS October 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alabama - 0.7%
$ 3,615 Alabama Water Pollution Control Authority, Revolving Fund Loan Bonds, 8/05 at 100 AAA $ 3,880,305
Series 1994, 6.750%, 8/15/17
5,075 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/07 at 101 AAA 5,084,440
Series 1997-A, 5.625%, 2/01/22
-----------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.1%
520 Alaska Housing Finance Corporation, Collateralized Bonds, 12/00 at 102 AAA 523,806
1989 First Series (Veterans Mortgage Program), 7.450%, 12/01/29
-----------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.4%
5,155 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101 1/2 N/R*** 5,535,851
No. 1 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)
------------------------------------------------------------------------------------------------------------------------------------
California - 6.5%
Anaheim Public Financing Authority, Lease Revenue Bonds (Anaheim
Public Improvements Project), Subordinate Lease Revenue Bonds,
1997 Series C:
11,000 0.000%, 9/01/20 No Opt. Call AAA 3,646,610
25,855 0.000%, 9/01/24 No Opt. Call AAA 6,781,249
7,500 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/10 at 24 5/8 AAA 1,052,850
Series 2000F, 0.000%, 8/01/31 (Alternative Minimum Tax)
1,000 Mt. Diablo Hospital District, California Insured Hospital 12/03 at 102 AAA 967,110
Revenue Bonds, 1993 Series A, 5.125%, 12/01/23
13,450 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA 16,609,405
County, California), 1995 Revenue Refunding Bonds
(Ontario Redevelopment Project No.1), 7.200%, 8/01/17
20,420 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 22,957,593
Residential Mortgage Revenue Refunding Bonds,
1991 Series A, 7.150%, 2/01/10
2,325 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 3,051,958
Restructured Single Family Mortgage Revenue Bonds,
Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax)
10,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102 AAA 10,742,700
Series 1995 (Medical Center Financing Project), 5.500%,
8/01/15 (Pre-refunded to 8/01/05)
15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103 AAA 18,890,851
California, General Obligation Refunding Bonds,
Series 1997A, 7.200%, 2/01/16
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 2.1%
1,075 Colorado Health Facilities Authority, Revenue Bonds 1/08 at 101 A 953,826
(National Jewish Medical and Research Center Project),
Series 1998, 5.375%, 1/01/28
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992B:
1,020 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,092,563
3,980 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 4,199,935
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991D:
1,000 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 1,025,990
3,720 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 3,783,166
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991A:
5,145 8.750%, 11/15/05 (Alternative Minimum Tax) 11/01 at 102 A 5,429,210
1,715 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,822,102
4,755 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 5,011,960
955 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 989,418
2,640 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 2,712,864
------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.0%
4,905 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, 1/10 at 100 AAA 4,923,884
2000 Series 11, 5.850%, 1/01/22 (Alternative Minimum Tax)
(WI, settling 11/01/00)
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Florida (continued)
$ 10,050 State Board of Education, Florida, Public Education Capital 6/10 at 101 AA+ $10,301,753
Outlay Refunding Bonds (Full Faith and Credit),
1999 Series D, 5.750%, 6/01/22
10,750 Martin County Industrial Development Authority (Florida), 12/04 at 102 BBB- 10,877,065
Industrial Development Revenue Bonds (Indianatown
Cogeneration LP Project), Series 1994A, 7.875%,
12/15/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.6%
1,200 City of Atlanta, Georgia, General Obligation Refunding Bonds, 12/08 at 100 AAA 1,101,048
Series 1998, 5.000%, 12/01/23
5,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 5,054,250
Series 1999A, 5.500%, 11/01/22
2,000 George L. Smith II World Congress Center Authority, 7/10 at 101 AAA 1,968,440
Refunding Revenue Bonds (Domed Stadium Project),
Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax)
1,235 Georgia Housing and Finance Authority, Home Ownership 6/02 at 102 Aa 1,265,307
Opportunity Program Bonds, Series 1992-A2,
6.875%, 12/01/20 (Alternative Minimum Tax)
10,000 Development Authority of Monroe County (Georgia), Pollution 4/01 at 101 A+ 10,109,500
Control Revenue Bonds (Georgia Power Company Plant
Scherer Project), Second Series 1994, 6.750%, 10/01/24
15,000 Private Colleges and Universities Authority (Georgia), 11/09 at 101 Aa1 14,969,700
Revenue Bonds (Emory University Project),
Series 1999A, 5.500%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.1%
1,335 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100 A1 1,373,568
Bonds, 2000 Series D, 6.200%, 7/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 15.8%
3,000 City of Chicago (Illinois), General Obligation Library Bonds, 1/08 at 102 AAA 3,080,340
Series 1997, 5.750%, 1/01/17
City of Chicago (Illinois), General Obligation Bonds (City
Colleges of Chicago Capital Improvement Project), Series 1999:
32,170 0.000%, 1/01/21 No Opt. Call AAA 10,195,316
32,670 0.000%, 1/01/22 No Opt. Call AAA 9,719,978
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 0.000%, 12/01/19 No Opt. Call AAA 3,359,800
21,800 0.000%, 12/01/23 No Opt. Call AAA 5,675,194
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 0.000%, 12/01/20 No Opt. Call AAA 3,154,600
30,160 0.000%, 12/01/22 No Opt. Call AAA 8,374,829
16,715 0.000%, 12/01/23 No Opt. Call AAA 4,362,114
9,145 City of Chicago, Chicago-Midway Airport Revenue Bonds, 1/07 at 101 AAA 8,895,433
Series 1996A, 5.500%, 1/01/29
1,025 City of Chicago, Chicago-O'Hare International Airport, 11/00 at 103 Baa2 1,072,294
Special Facility Revenue Bonds (United Air Lines, Inc. Project),
Series 1988A, 8.950%, 5/01/18 (Alternative Minimum Tax)
Forest Preserve District of DuPage County, Illinois,
General Obligation Limited Tax Bonds, Series 2000:
15,535 0.000%, 11/01/18 No Opt. Call AAA 5,678,509
15,285 0.000%, 11/01/19 No Opt. Call AAA 5,244,436
3,500 Illinois Development Finance Authority, Pollution Control 3/05 at 102 AAA 3,791,480
Refunding Revenue Bonds, Commonwealth Edison Company
Project, Series 1994D, 6.750%, 3/01/15
Illinois Development Finance Authority, Multifamily Housing
Revenue Bonds, Series 1992 (Town and Garden Apartments Project):
4,490 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 N/R 4,675,706
5,960 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 N/R 6,161,388
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101 A 956,000
Midwestern University, Series 1998B, 5.500%, 5/15/18
10,000 Illinois Educational Facilities Authority, Adjustable 12/03 at 102 AAA 10,523,200
Demand Revenue Bonds (The University of Chicago),
Series 1985 Remarketed, 5.700%, 12/01/25
(Pre-refunded to 12/01/03)
12,910 Illinois Health Facilities Authority, Revenue Bonds, 8/04 at 102 AA+ 12,980,618
Series 1994A (Northwestern Memorial Hospital), 6.000%, 8/15/24
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Illinois (continued)
$ 4,620 Illinois Health Facilities Authority (Northwestern Memorial Hospital), 2/01 at 101 AA+ $ 4,698,910
Revenue Bonds, Series 1989B, 7.200%, 8/15/07
3,835 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/09 at 101 A- 3,500,089
Series 1999 (Silver Cross Hospital and Medical Centers), 5.250%, 8/15/15
2,515 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A3 2,452,754
Series 1999A, West Suburban Hospital Medical Center, 5.500%, 7/01/09
6,330 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/08 at 102 A 5,795,685
Series 1998 (Midwest Physician Group Ltd.), 5.500%, 11/15/19
3,570 Illinois Health Facilities Authority, Tax-Exempt Revenue Bonds, 12/12 at 102 AAA 3,747,929
Series 1999A (GNMA Collateralized-Midwest Care Center IV, Inc.),
6.375%, 12/01/24
4,580 Illinois Health Facilities Authority, GNMA Collateralized Series 2000 8/10 at 102 Aaa 4,620,212
(Midwest Care Center IX), 6.250%, 8/20/35
4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/01 at 102 Baa3 3,623,920
Series 1991 (Proctor Community Hospital Project), 7.375%, 1/01/23
(DD, settling 11/03/00)
3,700 Village of Libertyville, Illinois, Affordable Housing Revenue Bonds, 11/09 at 100 A2 3,707,326
Series 1999A (Liberty Towers Project), 7.000%, 11/01/29
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Refunding Bonds, Series 1996A:
16,570 0.000%, 12/15/20 No Opt. Call AAA 5,295,606
23,550 0.000%, 12/15/22 No Opt. Call AAA 6,633,564
23,575 0.000%, 12/15/23 No Opt. Call AAA 6,242,896
10,280 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 10,259,234
McCormick Place Expansion Project Refunding Bonds,
Series 1998A, 5.500%, 12/15/23
10,650 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 12,626,960
McCormick Place Hospitality Facilities Revenue Bonds,
Series 1996A, 7.000%, 7/01/26
17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 18,591,034
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999, 5.750%, 6/01/23
6,090 Sherman, Illinois, Mortgage Revenue Bonds (Villa Vianney), 10/09 at 102 AAA 6,108,940
GNMA Series 1999 Refunding, 6.450%, 10/01/29
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.1%
3,750 Fort Wayne International Airport, Air Trade Center Building 1/08 at 101 Aaa 3,409,388
Corporation (Allen County, Indiana), First Mortgage Bonds,
Series 1998, 5.000%, 1/15/20 (Alternative Minimum Tax)
5,000 Fort Wayne South Side School Building Corporation (Allen County, 1/04 at 102 AAA 5,324,000
Indiana), First Mortgage Bonds, Series 1994, 6.125%, 1/15/12
(Pre-refunded to 1/15/04)
5,250 Indiana Bond Bank, State Revolving Fund Program Bonds, Series 1994A, 2/04 at 102 AAA 5,426,925
Guaranteed Revenue Bonds, 6.000%, 2/01/16
Indiana Health Facility Financing Authority, Revenue Bonds,
Series 1997 (Ancilla Systems Incorporated Obligated Group):
15,380 5.250%, 7/01/17 7/07 at 101 AAA 14,886,148
13,735 5.250%, 7/01/22 7/07 at 101 AAA 12,934,524
4,980 Indiana Municipal Power Agency, Special Obligation Bonds, First 11/02 at 100 AAA 4,808,041
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 Michigan City School Building Corporation, LaPorte and 12/04 at 102 AAA 6,109,211
Porter Counties, Indiana, First Mortgage Bonds, Series 1994A,
6.125%, 12/15/09
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.3%
4,545 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, 11/00 at 100 Aaa 4,550,772
1988 Issue B (GNMA Mortgage-Backed Securities Program),
8.250%, 5/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.3%
5,790 Sedgwick County, Kansas, Unified School District No. 259 (Wichita), 9/10 at 100 AA 4,564,141
General Obligation Bonds, Series 2000, 3.500%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.3%
10,000 County of Carroll, Kentucky, Collateralized Pollution Control Revenue 9/02 at 102 A1 10,596,600
Bonds (Kentucky Utilities Company Project), 1992 Series A, 7.450%, 9/15/16
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Kentucky (continued)
$ 3,700 Louisville and Jefferson County Metropolitan Sewer District 5/07 at 101 AAA $ 3,906,756
(Commonwealth of Kentucky), Sewer and Drainage System Revenue Bonds,
Series 1997A, 6.250%, 5/15/26
2,605 County of Trimble, Kentucky, Pollution Control Revenue Bonds, 9/02 at 102 AAA 2,721,574
1990 Series B (Louisville Gas and Electric Company Project),
6.550%, 11/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.7%
2,785 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 12/00 at 103 Aaa 2,871,725
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1988F,
7.875%, 12/01/21 (Alternative Minimum Tax)
4,035 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 10/07 at 102 Aaa 4,034,758
Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities
Program), Series 1997B-1, 5.750%, 10/01/26
3,535 Parish of Jefferson Home Mortgage Authority (Louisiana), 12/00 at 103 Aaa 3,623,057
GNMA Collateralized Single Family Mortgage Revenue Bonds,
Series 1989A, 7.875%, 12/01/21 (Alternative Minimum Tax)
35,700 Louisiana Stadium and Exposition District, Hotel Occupancy Tax Bonds, 7/06 at 102 AAA 38,286,108
Series 1996, 5.750%, 7/01/26 (Pre-refunded to 7/01/06)
5,630 New Orleans Housing Development Corporation, Multifamily Housing 6/03 at 100 AAA 5,836,452
Revenue Refunding Bonds, Series 1990A (Curran Place
Apartments/Fannie Mae Collateralized), 7.700%, 8/01/23
6,500 City of Shreveport, State of Louisiana, Water and Sewer Revenue 6/03 at 103 AAA 6,759,090
Bonds, 1986 Series A, 5.950%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.7%
9,000 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102 AA 8,915,400
1994 Series A, 5.700%, 11/15/26
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.2%
7,475 Housing Opportunities Commission of Montgomery County, 7/04 at 102 Aa2 7,609,475
Maryland, Multifamily Housing Revenue Bonds,
1994 Series A, 6.250%, 7/01/28
7,090 City of Takoma Park, Maryland, Hospital Facilities Refunding and No Opt. Call AAA 8,013,756
Improvement Revenue Bonds (Washington Adventist Hospital),
Series 1995, 6.500%, 9/01/12
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.8%
14,375 Massachusetts Bay Transportation Authority, General Transportation 3/01 at 102 AAA 14,826,950
System Bonds, 1990 Series B, 7.875%, 3/01/21 (Pre-refunded to 3/01/01)
2,280 Massachusetts Educational Financing Authority, Education 12/10 at 101 AAA 2,363,220
Loan Revenue and Refunding Bonds, Issue G, Series 2000A,
5.700%, 12/01/11 (Alternative Minimum Tax)
370 Massachusetts Municipal Wholesale Electric Company, Power Supply No Opt. Call BBB+ 410,164
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:
1,000 6.250%, 8/15/19 8/09 at 101 A 1,011,220
3,725 6.250%, 8/15/25 8/09 at 101 A 3,737,591
10,100 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 10,535,411
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
1,420 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 Aaa 1,199,474
Revenue Bonds, Southcoast Health System Obligated Group Issue,
Series A, 4.750%, 7/01/27
2,840 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 AAA 2,647,562
Refunding Bonds, 1993 Series B, 5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.5%
17,000 School District of the City of Birmingham, County of Oakland, 11/07 at 100 AAA 14,992,980
State of Michigan, School Building and Site Bonds,
Series 1998, 4.750%, 11/01/24
9,500 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101 AAA 8,878,130
(Senior Lien) Bonds, Series 1997-A, 5.000%, 7/01/21
4,145 Grand Rapids Housing Corporation, Multifamily Revenue 1/04 at 104 AAA 4,301,515
Refunding Bonds, Series 1992 (FHA-Insured Mortgage Loan - Section 8
Assisted Elderly Project), 7.375%, 7/15/41
4,030 City of Hancock Hospital Finance Authority, FHA-Insured Mortgage 8/08 at 100 AAA 3,776,916
Hospital Revenue Bonds (Portage Health System, Inc.),
Series 1998, 5.450%, 8/01/47
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Michigan (continued)
$ 15,000 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102 AAA $ 14,658,900
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18
3,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 2,896,530
Bonds (The Detroit Edison Company Pollution Control Bonds
Project), Collateralized Series 1999A, 5.550%, 9/01/29
(Alternative Minimum Tax)
10,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 102 AAA 9,747,500
Wayne County Airport, Airport Revenue Bonds, Series 1998A,
5.375%, 12/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 3.5%
6,355 The Dakota County Housing and Redevelopment Authority, 4/04 at 102 AAA 6,544,824
Single Family Mortgage Revenue Bonds (Fannie Mae
Mortgage-Backed Securities Program), Series 1994A,
6.900%, 10/01/27 (Alternative Minimum Tax)
23,250 The Housing and Redevelopment Authority of the City of 11/15 at 103 AAA 27,386,408
St. Paul, Minnesota, Sales Tax Revenue Refunding Bonds
(Civic Center Project), Series 1996, 7.100%, 11/01/23
Housing and Redevelopment Authority of the City of St. Paul,
Minnesota, Single Family Mortgage Revenue Refunding Bonds
(Middle Income Program, Phase II FNMA Mortgage-Backed Securities
Program), Series 1995:
1,675 6.400%, 3/01/21 3/05 at 102 Aaa 1,740,945
9,655 6.800%, 3/01/28 3/05 at 102 3/5 Aaa 10,215,183
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.8%
9,750 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102 BBB- 8,976,338
Revenue Refunding Bonds (System Energy Resources, Inc. Project),
Series 1998, 5.875%, 4/01/22
830 Mississippi Home Corporation, Single Family Mortgage Revenue Bonds, 4/05 at 102 Aaa 844,251
Series 1995B, 6.550%, 4/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.3%
4,400 Missouri Housing Development Commission, Single Family Mortgage 11/00 at 100 AAA 4,405,588
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
1988 Series A, 8.300%, 5/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.8%
5,000 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100 AA+ 5,166,100
2000 Series A2, 6.450%, 6/01/29 (Alternative Minimum Tax)
5,000 Montana Higher Education Student Assistance Corporation, 12/08 at 101 A2 4,777,900
Student Loan Revenue Bonds, Subordinate Series 1998B,
5.500%, 12/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.9%
10,505 State of Nevada, General Obligation Bonds (Limited Tax) 5/06 at 101 AA*** 11,284,996
(Nevada Municipal Bond Bank Project No. 52), Series 1996A, 6.000%,
5/15/21 (Pre-refunded to 5/15/06)
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.8%
New Hampshire Housing Finance Authority, Multifamily Housing
Revenue Bonds, 1994 Issue Remarketing (Countryside Limited
Partnership - Countryside Project):
3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101 Aaa 3,761,989
6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101 Aaa 7,013,617
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.8%
4,615 Higher Education Student Assistance Authority of the 6/10 at 101 AAA 4,852,857
State of New Jersey, Student Loan Revenue Bonds,
2000 Series A, 6.000%, 6/01/13 (Alternative Minimum Tax)
3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100 AAA 2,982,000
Project Sublease Revenue Bonds (New Jersey Transit
Corporation - Light Rail Transit System Projects), 1999 Series A,
5.250%, 5/01/17
8,750 New Jersey Transportation Trust Fund Authority, 6/07 at 102 AA 8,726,375
Transportation System Bonds, 1996 Series B, 5.250%, 6/15/16
Township of West Deptford, County of Gloucester, New Jersey,
General Obligation Bonds, Series 2000:
3,150 5.500%, 9/01/21 9/10 at 100 Aaa 3,160,427
3,335 5.500%, 9/01/22 9/10 at 100 Aaa 3,343,504
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New York - 12.9%
$ 14,000 Long Island Power Authority, New York, Electric System No Opt. Call AAA $ 3,672,900
General Revenue Bonds, Series 2000A, 0.000%, 6/01/24
5 The City of New York, New York, General Obligation Bonds, 2/01 at 100 1/2 A 5,071
Fiscal 1987 Series D, 8.500%, 8/01/08
The City of New York, New York, General Obligation Bonds,
Fiscal 1992 Series C:
7,910 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 8,331,128
90 6.625%, 8/01/14 8/02 at 101 1/2 AAA 94,310
12,500 The City of New York, New York, General Obligation Bonds, No Opt. Call A 13,740,625
Fiscal 1997 Series A, 7.000%, 8/01/05
16,295 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 16,626,929
Fiscal 1996 Series F, 5.750%, 2/01/15
20,650 New York City Municipal Water Finance Authority, 6/06 at 101 AAA 20,835,024
Water and Sewer System Revenue Bonds, Fiscal 1996
Series B, 5.750%, 6/15/26
4,875 New York City Municipal Water Finance Authority, 6/06 at 101 AAA 4,814,355
Water and Sewer System Revenue Bonds, Fiscal 1997
Series A, 5.500%, 6/15/24
10,000 New York City Municipal Water Finance Authority, Water and 6/09 at 101 AA 10,076,400
Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/30
7,810 New York City Transitional Finance Authority, 8/09 at 101 AA 7,906,297
Future Tax Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24
2,250 Dormitory Authority of the State of New York, Lease Revenue Bonds 7/09 at 101 AAA 2,216,295
(State University Dormitory Facilities Issue),
Series 1999C, 5.500%, 7/01/29
4,000 Dormitory Authority of the State of New York, State University 11/00 at 100 A 4,001,480
Educational Facilities, Revenue Bonds, Series 1990B, 6.000%, 5/15/17
1,500 Dormitory Authority of the State of New York, Revenue Bonds 8/07 at 101 AAA 1,436,190
(St. Barnabas Hospital), Series 1997, 5.450%, 8/01/35
2,070 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101 AAA 2,078,301
Bonds (853 Schools Program - 1998 Issue 1), Gateway-Longview, Inc.
Insured Revenue Bonds, Series 1998A, 5.500%, 7/01/18
4,600 Dormitory Authority of the State of New York, Mental Health 8/08 at 101 AAA 3,795,000
Services Facilities Improvement Revenue Bonds,
Series 1998F, 4.500%, 8/15/28
12,125 Dormitory Authority of the State of New York, Mental Health 2/09 at 101 AAA 10,903,043
Services Facilities Improvement Revenue Bonds,
Series 1999C, 4.750%, 8/15/19
17,000 Dormitory Authority of the State of New York, City University 7/09 at 101 AAA 16,745,340
System Consolidated Third General Resolution Revenue Bonds,
1999 Series 1, 5.500%, 7/01/29
3,000 Dormitory Authority of the State of New York, City University 1/08 at 102 AAA 2,913,750
System Consolidated Third General Resolution Revenue Bonds,
1997 Series 1, 5.375%, 7/01/24
2,000 Dormitory Authority of the State of New York, Mental Health 2/06 at 102 AAA 1,935,400
Services Facilities Improvement Revenue Bonds,
Series 1996B, 5.375%, 2/15/26
Dormitory Authority of the State of New York, Marymount
Manhattan College Insured Revenue Bonds, Series 1999:
1,580 6.375%, 7/01/13 7/09 at 101 AA 1,723,401
9,235 6.125%, 7/01/21 7/09 at 101 AA 9,649,836
3,000 New York State Energy Research and Development Authority, 9/08 at 102 AAA 3,052,650
Pollution Control Revenue Bonds (Rochester Gas and Electric
Corporation Project), Series 1998A, 5.950%, 9/01/33
(Alternative Minimum Tax)
4,000 New York State Medical Care Facilities Finance Agency, 2/01 at 101 AA 4,086,360
St. Lukes-Roosevelt Hospital Center, FHA-Insured Mortgage
Revenue Bonds, 1989 Series A, 7.375%, 2/15/19
14,750 New York State Medical Care Facilities Finance Agency, 2/04 at 102 AAA 14,876,998
Mental Health Services Facilities Improvement Revenue Bonds,
1993 Series F Refunding, 5.375%, 2/15/14
3,400 Niagara Frontier Transportation Authority 4/09 at 101 AAA 3,361,784
(Buffalo-Niagara International Airport), Airport Revenue Bonds,
Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.4%
5,000 North Carolina Municipal Power Agency Number 1, 1/08 at 102 AAA 4,658,100
Catawba Electric Revenue Bonds, Series 1998A, 5.000%, 1/01/20
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
North Dakota - 0.6%
$ 7,500 North Dakota Housing Finance Agency, Housing Finance 7/10 at 100 Aa3 $ 7,786,275
Program Bonds (Home Mortgage Finance Program), 2000 Series A
Refunding, 6.500%, 1/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 3.2%
19,500 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds 7/09 at 100 Aaa 19,273,410
(Fixed Rate), 1999 Series C (Mortgage-Backed Securities Program),
5.750%, 9/01/30 (Alternative Minimum Tax)
Ohio Water Development Authority, State of Ohio,
Solid Waste Disposal Revenue Bonds (Bay Shore
Power Project), Convertible Series 1998B:
15,500 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102 N/R 12,399,225
3,200 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102 N/R 2,863,040
8,800 6.625%, 9/01/20 9/09 at 102 N/R 7,856,992
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.9%
2,750 State of Oregon, Housing and Community Services Department, 1/10 at 100 Aa2 2,832,830
Mortgage Revenue Bonds (Single Family Mortgage Program),
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
9,150 Port of St. Helens Pollution Control (Portland General Electric), No Opt. Call A3 8,940,191
1985-B Variable Rate Demand Bonds, 4.800%, 6/01/10
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.0%
Bethlehem Authority, Northampton and Lehigh Counties,
Pennsylvania, Guaranteed Water Revenue Bonds, Series of 1998:
3,125 0.000%, 5/15/22 No Opt. Call AAA 920,125
3,125 0.000%, 5/15/23 No Opt. Call AAA 865,531
3,135 0.000%, 5/15/24 No Opt. Call AAA 819,113
3,155 0.000%, 5/15/26 No Opt. Call AAA 733,664
4,145 0.000%, 11/15/26 No Opt. Call AAA 936,729
2,800 0.000%, 5/15/28 No Opt. Call AAA 579,740
3,000 0.000%, 11/15/28 No Opt. Call AAA 603,300
5,000 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 5,089,750
Resource Recovery Revenue Refunding Bonds, 2000 Series
(Panther Creek Partners Project), 6.650%, 5/01/10
(Alternative Minimum Tax)
3,000 Cumberland County Municipal Authority, Pennsylvania, 11/04 at 102 BBB- 2,529,420
Carlisle Hospital and Health Services First Mortgage Revenue
and Refunding Bonds, Series 1994, 6.800%, 11/15/14
11,000 Delaware County Authority (Pennsylvania), Health System Revenue 11/08 at 102 AAA 9,739,180
Bonds, Catholic Health East Issue,
Series 1998A, 4.875%, 11/15/18
2,500 Pennsylvania Economic Development Finance Authority, 1/04 at 102 BBB- 2,448,400
Resource Recovery Revenue Bonds, Senior Series 1994A
(Northampton Generating Project), 6.500%, 1/01/13
(Alternative Minimum Tax)
1,000 Pennsylvania Economic Development Financing Authority, 1/04 at 102 N/R 998,060
Resource Recovery Revenue Subordinate Bonds,Series 1994C
(Northampton Generating Project), 6.875%, 1/01/11
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.1%
1,250 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 AAA 1,314,65
Revenue Bonds, Series B, 5.875%, 7/01/21
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.2%
10,055 Greenville Hospital System, Board of Trustees, Hospital Revenue 5/06 at 102 AAA 9,442,952
Bonds (South Carolina), Series 1996B, 5.250%, 5/01/23
6,925 State of South Carolina, General Obligation State Capital 10/09 at 101 AAA 6,137,281
Improvement Bonds, Series 1999A, 4.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.7%
The Health and Educational Facilities Board of the City of
Johnson, Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Series 1998C (Johnson City Medical Center Hospital):
2,260 5.125%, 7/01/25 (Pre-refunded to 7/01/23) 7/23 at 100 AAA 2,121,575
1,740 5.125%, 7/01/25 1/09 at 101 AAA 1,624,568
1,700 Memphis-Shelby County Airport Authority (Tennessee), 3/10 at 101 AAA 1,741,259
Airport Revenue Bonds, Series 1999D, 6.000%,
3/01/24 (Alternative Minimum Tax)
6,975 The Health, Educational and Housing Facility Board of the City 1/03 at 103 AAA 7,154,327
of Memphis, Tennessee, Multifamily Mortgage Revenue Refunding
Bonds (Riverdale Plaza Apartments Project), Series 1993,
6.350%, 7/20/28
<PAGE>
Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Tennessee (continued)
$ 6,000 The Health and Educational Facilities Board of the Metropolitan 12/17 at 100 AAA $ 6,406,620
Davidson County (Tennessee), Revenue Refunding and Improvement
Bonds (Meharry Medical College Project), Series 1996,
6.000%, 12/01/19
15,000 Tennessee Housing Development Agency, Homeownership Program 7/10 at 101 AA 15,604,800
Bonds, Issue 2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 5.3%
11,800 City of Austin, Texas, Combined Utility Systems Revenue 11/02 at 100 AAA 11,899,946
Refunding Bonds, Series 1992, 5.750%, 11/15/16
4,000 Health Facilities Development Corporation, Bell County (Texas), 2/10 at 101 AAA 4,144,760
Hospital Revenue Bonds (Scott and White Memorial Hospital
and Scott, Sherwood and Brindley Foundation Project),
Series 2000A, 6.125%, 8/15/23
18,690 International Airport Facilities Improvement Corporation, No Opt. Call Baa1 18,874,097
Dallas-Ft. Worth, Texas, Revenue Refunding Bonds (American
Airlines), Series 2000B, 6.050%, 5/01/29 (Alternative Minimum
Tax)(Mandatory put 11/01/05)
2,950 Fort Worth Housing Finance Corporation, Home Mortgage Revenue 10/01 at 103 Aa 3,066,260
Refunding Bonds, Series 1991A, 8.500%, 10/01/11
1,500 Harris County Health Facilities Development Corporation (Texas), 7/09 at 101 AAA 1,397,400
Revenue Bonds (CHRISTUS Health), Series 1999A, 5.375%, 7/01/24
475 Hidalgo County Housing Finance Corporation (Florida), Single 4/04 at 102 Aaa 485,303
Family Mortgage Revenue Bonds (GNMA and FNMA Collateralized),
Series 1994A, 6.750%, 10/01/15 (Alternative Minimum Tax)
3,885 Houston Independent School District Public Facility Corporation No Opt. Call AAA 1,331,817
(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 0.000%, 12/01/24 No Opt. Call AAA 7,091,655
49,015 0.000%, 12/01/27 No Opt. Call AAA 10,215,706
1,690 City of Laredo, Texas (Webb County), Combination Tax and Sewer 2/08 at 100 AAA 1,487,555
System, Revenue Certificates ofObligation, 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 0.000%, 8/15/20 8/06 at 46 15/32 AAA 1,515,679
3,705 0.000%, 8/15/22 8/06 at 41 5/16 AAA 998,312
1,825 The Lubbock Housing Finance Corporation (Texas), Single Family 6/07 at 102 AAA 1,853,452
Mortgage Revenue Refunding Bonds (GNMA Mortgage Backed
Securities Program), Series 1997A, 6.125%, 12/01/17
6,050 City of San Antonio, Texas, Electric and Gas Systems Revenue 2/09 at 100 Aa1 5,180,736
Refunding Bonds, New Series 1998A, 4.500%, 2/01/21
------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.7%
13,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 8/07 at 101 AAA 12,293,060
(IHC Health Services, Inc.), 5.250%,8/15/21
1,100 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100 AA 1,123,100
2000 Issue B (Federally Insured or Guaranteed Mortgage Loans),
6.250%, 7/01/22 (Alternative Minimum Tax)
3,350 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA- 3,436,397
2000 Series D1, 6.050%, 7/01/14 (Alternative Minimum Tax)
3,600 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA- 3,643,596
2000 Series E-1, Class III, 6.000%, 1/01/15
(Alternative Minimum Tax)
1,400 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA 1,420,020
2000 Series E-1, Class II, 6.150%, 1/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.8%
9,500 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/04 at 102 A+ 9,847,225
Series 5, 7.000%, 11/01/27 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Virginia - 1.2%
$ 16,000 Metropolitan Washington Airports Authority, Airport System 10/04 at 100 AAA $ 15,553,600
Revenue Bonds, Series 1994A, 5.500%, 10/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Washington - 2.4%
12,235 Public Utility District No. 1 of Chelan County, Washington, No Opt. Call AAA 2,798,634
Columbia River-Rock Island Hydro-Electric System Revenue
Refunding Bonds, Series 1997A, 0.000%, 6/01/26
1,815 Grant County Public Utility District 2, Wanapum Hydro-Electric 1/06 at 102 AAA 1,809,991
Revenue Bonds, Series 1997A, Master Lease Program,
5.625%, 1/01/26
5,000 Washington State Housing Finance Commission, Nonprofit Housing 7/09 at 101 AA 4,958,950
Revenue Bonds (The Kline Galland Center Project), Series 1999,
6.000%, 7/01/29
16,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 16,197,600
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
1,035 Washington Public Power Supply System, Nuclear Project No. 2 No Opt. Call Aaa 1,086,367
Revenue Bonds, Series 1981A, 14.375%, 7/01/01
4,000 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 Aa1 4,016,040
Refunding Revenue Bonds, Series 1993B, 5.700%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.2%
2,105 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 102 AAA 2,156,404
1992 Series C, 7.200%, 11/01/18 (Alternative Minimum Tax)
775 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 102 AAA 793,926
1992 Series B, 7.200%, 11/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.0%
8,900 Wisconsin Health and Educational Facilities Authority, 8/03 at 102 AAA 8,311,176
Revenue Bonds, Series 1993 (Aurora Health Care Obligated
Group), 5.250%, 8/15/23
11,400 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101 AA 11,645,893
Bonds, Series 1999 (Marshfield Clinic), 6.250%, 2/15/29
7,490 Wisconsin Health and Educational Facilities Authority, Revenue 7/08 at 103 N/R 6,302,760
Bonds, Series 1998, The Millennium Housing Foundation Inc.
Project, 6.100%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 1,562,245 Total Investments (cost $1,237,841,559) - 96.7% 1,261,089,228
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 43,466,929
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,304,556,157
====================================================================================================================
* 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.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Nuveen Municipal Advantage Fund, Inc. (NMA)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alabama - 1.9%
$ 15,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA $ 14,254,800
Warrants, Series 1999-A, 5.375%, 2/01/36
5,075 The Health Care Authority of Lauderdale County and the City 7/09 at 101 AAA 4,738,731
of Florence, Alabama, Series 1999-A,Coffee Health Group,
5.250%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.4%
3,700 Alaska Housing Finance Corporation, General Housing Purpose 12/02 at 102 Aa2*** 3,827,724
Bonds, 1992 Series A, 6.600%, 12/01/23
(Pre-refunded to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.5%
5,000 Pollution Control Corporation, Public Service Company of New 5/06 at 101 BBB- 4,591,650
Mexico, Maricopa County, Arizona, Pollution Control Revenue
Refunding Bonds (Remarketing), Series 1992A, 5.750%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
California - 6.3%
5,000 California Health Facilities Financing Authority, Kaiser 10/08 at 101 A 4,637,600
Permanente, Revenue Bonds, Series 1998B,5.000%, 10/01/18
7,500 California Statewide Communities Development Authority, 4/09 at 101 BBB 6,549,000
Certificates of Participation, The Internext Group,
5.375%, 4/01/30
7,535 County of Contra Costa, California, 1989 Home Mortgage Revenue No Opt. Call AAA 9,550,010
Bonds (GNMA Mortgage-Backed Securities Program), 7.750%,
5/01/22 (Alternative Minimum Tax)
1,750 City of Hope National Medical Center, City of Duarte, 4/09 at 101 BBB+ 1,519,980
California, Certificates of Participation, Series 1999A,
5.250%, 4/01/31
14,490 Palm Desert Financing Authority, Tax Allocation Revenue Bonds 8/02 at 102 AAA 14,932,525
(Project Area No. 2), 1992 Series A, 6.125%, 8/01/22
5,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 6,230,000
California, Residential Mortgage Revenue Refunding Bonds,
Series 1991-B, 7.375%, 2/01/12
5,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 6,557,550
California, Single Family Mortgage Revenue Bonds, Series 1986A
Restructured, 8.000%, 3/01/16 (Alternative Minimum Tax)
9,315 City of Perris, California, Single Family Mortgage Revenue Bonds No Opt. Call AAA 11,823,343
(GNMA Mortgage-Backed Securities), 1989 Series A, 7.600%,
1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 0.8%
9,000 Colorado Health Facilities Authority, Revenue Bonds, 1994 7/06 at 102 A 8,231,490
Series A, Kaiser Permanente (Remarketed), 5.350%, 11/01/16
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 1.4%
7,880 City of Bridgeport, Connecticut, General Obligation Bonds, 7/10 at 101 AAA 8,356,425
2000 Series A, 6.000%, 7/15/17
5,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/09 at 100 AA 4,999,850
Program Bonds, 2000 Series B-2, 5.750%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.3%
6,585 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103 AAA 6,676,136
Single Family Mortgage Revenue Bonds, Series 1988F-1,
6.375%, 6/01/26 (Alternative Minimum Tax)
6,260 District of Columbia Housing Finance Agency, Single Family 6/07 at 102 AAA 6,272,144
Revenue Bonds, Series 1997-B, 5.900%, 12/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.1%
10,990 City of Tampa, Florida, Allegany Health System Revenue Bonds, 12/03 at 102 AAA 10,392,584
St. Mary's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.1%
10,250 Georgia Housing and Finance Authority, Single Family Mortgage 3/10 at 100 AAA 10,669,225
Bonds, 2000 Series A2, 6.450%, 12/01/30 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Hawaii - 0.4%
$ 3,740 Housing Finance and Development Corporation (State of Hawaii), 7/07 at 102 Aaa $ 3,676,420
Single Family Mortgage Purchase Revenue Bonds, 1997 Series A,
5.750%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 5.9%
5,865 City of Chicago (Illinois), General Obligation Bonds 7/10 at 101 AAA 6,399,888
(Neighborhoods Alive 21 Program), Series 2000A, 6.500%, 1/01/35
4,000 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 4,066,240
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1997,
5.750%, 12/01/20
12,500 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 11,770,500
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues),
Series 1997A, 5.250%, 12/01/27
5,000 City of Chicago (Illinois), Second Lien Wastewater Transmission 1/08 at 102 AAA 4,700,450
Revenue Bonds, Series 1997, 5.250%, 1/01/28
10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102 AAA 10,545,596
Series 1996A (Rush/Presbyterian - St. Lukes Medical Center
Obligated Group), 6.250%, 11/15/20
6,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102 A- 5,392,140
Series 1996B (Sarah Bush Lincoln Health Center),
5.750%, 2/15/22
12,455 Metropolitan Pier and Exposition Authority (Illinois), McCormick 12/09 at 101 AAA 12,249,991
Place Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24
2,500 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,009,600
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.6%
7,425 Fort Wayne International Airport Building Corporation, Indiana, 1/04 at 101 Aa 7,532,217
Airport Improvement Bonds, Series 1994, 5.900%, 1/01/14
(Alternative Minimum Tax)
9,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/06 at 102 AAA 8,989,740
Refunding and Improvement Bonds, Series 1995
(Community Hospitals Projects), 5.700%, 5/15/22
6,075 LaGrange County Jail Building Corporation, Indiana, First 10/09 at 101 A3 5,808,611
Mortgage Jail Bonds, Series 1998, 5.400%, 10/01/21
3,215 Mooresville Consolidated School Building Corporation, First 1/04 at 102 A*** 3,442,461
Mortgage Bonds, Series 1994B (Morgan County, Indiana),
6.400%, 7/15/15 (Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.7%
3,885 Iowa Finance Authority, Single Family Mortgage Bonds, 1/05 at 102 AAA 3,953,609
1995 Series C, 6.450%, 1/01/24
3,500 City of Marshalltown, Iowa, Pollution Control Revenue Refunding 11/03 at 102 AAA 3,391,290
Bonds (Iowa Electric Light and Power Company Project),
Series 1993, 5.500%, 11/01/23
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.3%
2,585 Sedgwick County, Kansas and Shawnee County, Kansas, Single No Opt. Call Aaa 2,545,863
Family Mortgage Revenue Bonds (Mortgaged-Backed Securities
Program), 1997 Series A-1, 5.100%, 12/01/14 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 2.5%
7,500 City of Ashland, Kentucky, Pollution Control Revenue Refunding No Opt. Call Baa2 7,531,425
Bonds (Ashland Inc. Project), Series 1999, 5.700%, 11/01/09
5,500 Louisville and Jefferson County Metropolitan Sewer District 5/07 at 101 AAA 5,258,165
(Commonwealth of Kentucky), Sewer and Drainage System Revenue
Bonds, Series 1997A, 5.250%, 5/15/27
12,750 Louisville and Jefferson County Metropolitan Sewer District 11/07 at 101 AAA 12,114,540
(Commonwealth of Kentucky), Sewer and Drainage System Revenue
Bonds, Series 1997B, 5.200%, 5/15/25
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.3%
13,500 Parish of De Soto, State of Louisiana, Pollution Control 9/09 at 102 AAA 13,715,055
Revenue Refunding Bonds (Cleco Utility Group Inc. Project),
Series 1999, 5.875%, 9/01/29
3,235 Parish of Jefferson, State of Louisiana, Home Mortgage No Opt. Call AAA 3,249,493
Authority, Tax-Exempt Agency Mortgage-Backed Securities,
Series 1995A, 5.900%, 12/01/16 (Alternative Minimum Tax)
2,970 Louisiana Stadium and Exposition District, Hotel Occupancy 7/09 at 102 AAA 2,687,909
Tax Refunding Bonds, Series 1998B, 5.000%, 7/01/26
10,000 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 12,614,300
Revenue Bonds (Comm-Care Corporation Project), Series 1994,
11.000%, 2/01/14
<PAGE>
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Massachusetts - 3.3%
$ 7,000 Massachusetts Health and Educational Facilities Authority, 1/09 at 101 AAA $ 6,153,980
Revenue Bonds, Brandeis University Issue, Series I,
5.000%, 7/01/28
10,300 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 10,798,417
Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15
10,430 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100 AAA 10,704,518
Revenue Bonds, Series 77, 5.950%, 6/01/25
(Alternative Minimum Tax)
5,300 Massachusetts State Housing Finance Agency, Single Family 12/09 at 100 AAA 5,318,126
Housing Revenue Bonds, Series 79, 5.950%, 12/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.3%
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 2,840,880
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/28
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.5%
3,200 Minneapolis Community Development Agency, Limited Tax Supported 12/00 at 100 A- 3,208,800
Development Revenue Bonds, Common Bond Fund, Series 1988-1,
8.750%, 12/01/17 (Alternative Minimum Tax)
2,340 Minneapolis Community Development Agency, Limited Tax Supported 12/00 at 101 A- 2,366,816
Development Revenue Bonds, Common Bond Fund, Series 1989-1,
8.250%, 6/01/19 (Alternative Minimum Tax)
9,155 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100 AA+ 9,287,564
2000 Series C, 5.550%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.4%
5,110 Coahoma-Clarksdale Housing Development Corporation, 1990 8/03 at 100 AAA 5,295,494
Multifamily Mortgage Revenue Refunding Bonds (Gooden Estates
and McLaurin Arms Project), Series B, 8.000%, 8/01/24
1,555 Greenwood-Leflore Housing Development Corporation, 1990 2/01 at 100 AA- 1,561,733
Multifamily Mortgage Revenue Refunding Bonds (Ivory Apartment
Project), Series D, 7.950%, 2/01/22
2,565 Greenwood-Leflore Housing Development Corporation, 1990 8/01 at 100 AA- 2,594,754
Multifamily Mortgage Revenue Refunding Bonds (Bishop Apartment
Project), Series B, 7.950%, 8/01/22
2,605 Greenwood-Leflore Housing Development Corporation, 1990 6/02 at 100 AA- 2,667,807
Multifamily Mortgage Revenue Refunding Bonds (Jones Apartment
Projects), Series C, 7.950%, 8/01/22
1,635 Greenwood-Leflore Housing Development Corporation, 1990 3/02 at 100 AA- 1,668,354
Multifamily Mortgage Revenue Refunding Bonds (McNeace Apartment
Projects), Series A, 7.950%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.3%
2,500 Missouri Housing Development Commission, Single Family Mortgage 9/09 at 102 AAA 2,774,475
Revenue Bonds (Homeownership Loan Program), 2000 Series A-1,
7.500%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Montana - 2.4%
15,585 Montana Board of Housing, Single Family Program Bonds, 1995 12/05 at 102 AA+ 16,011,717
Series B (Federally Insured or Guaranteed Mortgage Loan),
6.400%, 12/01/27 (Alternative Minimum Tax)
7,280 Montana Board of Housing, Single Family Program Bonds, 6/07 at 101 1/2 AA+ 7,385,560
1997 Series A, 6.050%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.5%
7,310 Clark County, Nevada, General Obligation Limited Tax Bond Bank 7/10 at 101 AA 7,312,120
Bonds, Series 2000 (Additionally Secured by Pledged Revenues),
5.500%, 7/01/19
7,500 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/10 at 101 AAA 7,795,875
Bonds, Series 1999A, 6.000%, 7/01/29
5,000 Las Vegas Convention and Visitors Authority, Nevada, Revenue 7/09 at 101 AAA 5,234,300
Bonds, Series 1999, 5.500%, 7/01/10
4,455 Nevada Housing Division, Single Family Mortgage Bonds (Senior), 4/07 at 102 Aaa 4,321,439
1997 Series C-2, 5.750%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.8%
2,940 Business Finance Authority of the State of New Hampshire, Water 12/04 at 102 AAA 3,071,830
Facility Revenue Bonds (Pennichuck Water Works, Inc. -
1994 Issue), Series A, 6.350%, 12/01/19
1,860 Business Finance Authority of the State of New Hampshire, Water 12/04 at 102 AAA 1,954,302
Facility Revenue Bonds (Pennichuck Water Works, Inc.) Series B,
6.450%, 12/01/16 (Alternative Minimum Tax)
3,100 New Hampshire Housing Finance Authority, Single Family 1/01 at 101 Aa3 3,135,588
Residential Mortgage Bonds, 1989 Series A, 7.900%, 7/01/22
Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New Mexico - 0.7%
$ 7,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101 Baa3 $ 6,867,975
Refunding Bonds, Series 1997B (Public Service Company of
New Mexico - San Juan Project), 5.800%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
New York - 11.7%
4,500 Long Island Power Authority, New York, Electric System General No Opt. Call AAA 4,721,130
Revenue Bonds, Series 1998A,5.500%, 12/01/06
County of Nassau, New York, Serial General Improvement Bonds,
General Obligations, Series F:
3,980 7.000%, 3/01/11 3/10 at 100 AAA 4,607,805
4,070 7.000%, 3/01/12 3/10 at 100 AAA 4,695,478
3,925 7.000%, 3/01/15 3/10 at 100 AAA 4,480,819
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series G:
95 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A*** 103,619
9,905 6.000%, 10/15/26 10/07 at 101 A 10,184,222
5,685 The City of New York, New York, General Obligation Bonds, 4/09 at 101 A 5,248,904
Fiscal 1999 Series I, 5.000%, 4/15/20
580 The City of New York, New York, General Obligation Bonds, No Opt. Call A*** 651,375
Fiscal 2000 Series B, 9.500%, 6/01/03
7,420 The City of New York, New York, General Obligation Bonds, No Opt. Call A 8,296,525
Fiscal 2000 Series B, 9.500%, 6/01/03
7,435 The City of New York, New York, General Obligation Bonds, 5/10 at 101 A 7,538,123
Fiscal 2000 Series E, 5.750%, 5/15/20
9,750 New York City Municipal Water Finance Authority, Water and Sewer 6/09 at 101 AAA 9,849,743
System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/31
5,000 New York City Municipal Water Finance Authority, Water and Sewer 6/07 at 101 AAA 5,034,850
System Revenue Bonds, Fiscal 1997 Series B, 5.750%, 6/15/29
10,000 New York City Transitional Finance Authority, Future Tax Secured 5/10 at 101 AA 10,435,800
Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29
8,850 New York City Industrial Development Agency, Special Facility 12/08 at 102 A2 7,601,973
Revenue Bonds, Series 1998 (1998 British Airways PLC Project),
5.250%, 12/01/32 (Alternative Minimum Tax)
7,360 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 A 7,332,842
Services Facilities Improvement Revenue Bonds, Series 1997B,
5.625%, 2/15/21
3,655 Dormitory Authority of the State of New York, State University 5/08 at 101 A 3,364,939
Educational Facilities Revenue Bonds, Series 1997,
5.125%, 5/15/27
2,020 New York State Housing Finance Agency, Health Facilities Revenue 11/00 at 102 A 2,055,229
Bonds (New York City), 1990 Series A Refunding,
8.000%, 11/01/08
5,000 New York State Urban Development Corporation, Correctional 1/09 at 101 AAA 5,194,100
Facilities Service Contract Revenue Bonds, Series C,
6.000%, 1/01/29
5,000 Suffolk County Industrial Development Agency, Solid Waste No Opt. Call AAA 5,411,000
Disposal Facility Revenue Bonds (Ogden Martin Systems of
Huntington - Limited Partnership Resource Recovery Facility)
Series 1999, 5.950%, 10/01/09 (Alternative Minimum Tax)
8,500 Triborough Bridge and Tunnel Authority (New York), General 1/11 at 100 AAA 9,756,725
Purpose Revenue Bonds, Series X, 6.625%, 1/01/12
-----------------------------------------------------------------------------------------------------------------------------------
North Carolina - 3.8%
12,715 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 100 AAA 12,722,883
Revenue Bonds, Refunding Series 1993B,5.500%, 1/01/17
10,970 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100 AA 11,226,479
Bonds, Series 7-A (1998 Trust Agreement), 6.250%, 1/01/29
(Alternative Minimum Tax)
12,920 North Carolina Housing Finance Agency, Home Ownership Revenue 1/10 at 100 AA 13,277,884
Bonds, Series 8-A (1998 Trust Agreement), 5.950%, 1/01/27
(Alternative Minimum Tax)
<PAGE>
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ohio - 4.4%
$ 6,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (University 7/09 at 101 AAA $ 5,837,160
Hospitals Health System, Inc.), 5.500%, 1/15/30
5,000 County of Montgomery, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101 BBB+ 5,024,450
Series 1999 (Kettering Medical Center Network Obligated Group),
6.750%, 4/01/18
10,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, 8/10 at 100 Aaa 10,108,400
2000 Series D, Mortgage-Backed Securities Program,
5.450%, 9/01/31 (Alternative Minimum Tax)
13,000 Ohio Air Quality Development Authority, State of Ohio, 12/04 at 100 Baa3 13,201,890
Pollution Control Revenue Refunding Bonds, Series 1999-C
(Ohio Edison Company Project), 5.800%, 6/01/16
(Optional put 12/01/04)
9,000 State of Ohio, Turnpike Revenue Bonds, Issued by the Ohio No Opt. Call AAA 9,087,840
Turnpike Commission, 1998 Series A, 5.500%, 2/15/24
-----------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 3.1%
10,480 Central Oklahoma Transportation and Parking Authority (Oklahoma 7/06 at 100 AAA 10,352,563
City), Parking System Revenue and Refunding Bonds, Series 1996,
5.250%, 7/01/16
750 Cleveland County Home Loan Authority (Oklahoma), Single Family 8/01 at 102 A1 772,695
Mortgage Revenue Refunding Bonds, Series 1992, 8.375%, 2/01/12
5,000 Oklahoma Industries Authority, Health System Revenue and 8/09 at 101 AAA 4,982,050
Refunding Bonds (Obligated Group Consisting of INTEGRIS Baptist
Medical Center, Inc., INTEGRIS South Oklahoma City Hospital
Corporation and INTEGRIS Rural Health, Inc.), Revenue
Refunding Bonds, Series 1999A, 5.750%, 8/15/29
13,615 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa1 13,982,605
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.4%
3,000 Pennsylvania Economic Development Finance Authority, Solid Waste 6/09 at 102 Baa1 2,534,70
Disposal Revenue Bonds (USG Corporation Project), Series 1999,
6.000%, 6/01/31 (Alternative Minimum Tax)
3,500 Pennsylvania Housing Finance Agency, Rental Housing 7/03 at 102 AAA 3,501,08
Refunding Bonds, Issue 1993, 5.800%, 7/01/18
6,000 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 100 AAA 5,782,26
Revenue Bonds, Series 1993, 5.000%, 6/15/16
4,515 Venango Housing Corporation, Multifamily Mortgage Revenue 2/03 at 100 AAA 4,634,96
Refunding Bonds (FHA-Insured Mortgage/Evergreen Arbors
Project), 1990 Series A, 8.000%, 2/01/24
6,750 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 7,325,70
Revenue Bonds (Capital Projects and Equipment Acquisition
Program), Series of 1999, 6.150%, 12/01/29
-----------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.3%
6,000 Rhode Island Convention Center Authority, Refunding Revenue 5/04 at 102 AAA 5,524,14
Bonds, 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 7.375%, 4/01/10 (Alternative Minimum Tax) 4/02 at 105 AAA 462,67
1,060 7.400%, 4/01/20 (Alternative Minimum Tax) 4/02 at 105 AAA 1,128,23
3,050 7.500%, 10/01/32 (Alternative Minimum Tax) 4/02 at 105 AAA 3,254,74
180 Rhode Island Housing and Mortgage Finance Corporation, 4/01 at 101 AA+ 183,85
Homeownership Opportunity Bonds, Series 2, 7.750%, 4/01/22
12,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 12,243,38
Hospital Financing Revenue Bonds, Lifespan Obligated Group
Issue, Series 1996, 5.500%, 5/15/16
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.6%
5,000 Piedmont Municipal Power Agency (South Carolina), Electric 1/09 at 101 BBB- 4,233,20
Revenue Bonds, 1999A Refunding Series, 5.250%, 1/01/21
1,900 South Carolina Public Service Authority, Revenue Bonds, 1/03 at 102 AAA 1,725,58
1993 Refunding Series C, 5.000%, 1/01/25
-----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.8%
14,385 The Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA 14,515,90
Government of Nashville and Davidson County, Tennessee,
Revenue Bonds (Ascension Health Credit Group), Series 1999A,
5.875%, 11/15/28
3,210 Tennessee Housing Development Agency, Mortgage Finance Program 7/04 at 102 AA 3,323,37
Bonds, 1994 Series A, 6.900%, 7/01/25 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Texas - 7.9%
$ 5,000 Brazos River Authority (Texas), Pollution Control Revenue 5/08 at 102 AAA $ 4,773,20
Refunding Bonds (Texas Utilities Electric Company Project),
Series 1998A, 5.550%, 5/01/33 (Alternative Minimum Tax)
5,000 Brazos River Authority (Texas), Pollution Control Revenue 4/08 at 102 AAA 4,791,90
Refunding Bonds (Texas Utilities Electric Company Project),
Series 1995C, 5.550%, 6/01/30 (Alternative Minimum Tax)
6,000 Brazos River Authority (Texas), Revenue Refunding Bonds No Opt. Call AAA 5,469,48
(Houston Lighting and Power Company Project), Series 1998,
5.050%, 11/01/18 (Alternative Minimum Tax)
4,925 The Cameron County Housing Finance Corporation, Single Family 9/02 at 103 AAA 5,029,90
Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Series 1992, 6.750%, 3/01/26
3,000 El Paso Housing Finance Corporation, Multifamily Housing Revenue 1/01 at 102 AAA 3,086,13
Refunding Bonds (Las Flores Development Company Project),
Series 1990A, 7.500%, 3/20/25
8,400 Gulf Coast Waste Disposal Authority (Texas), Waste Disposal 4/09 at 101 BBB- 7,178,22
Revenue Bonds (Valero Energy Corporation Project), Series 1999,
5.700%, 4/01/32 (Alternative Minimum Tax)
4,000 Harris County Health Facilities Development Corporation (Texas), 10/09 at 101 AA 3,620,64
Hospital Revenue Bonds (Texas Children's Hospital Project),
Series 1999A, 5.250%, 10/01/29
10,000 Harris County Health Facilities Development Corporation, Special 5/06 at 102 AAA 10,261,80
Facilities Revenue Bonds (Texas Medical Center Project),
Series 1996, 5.900%, 5/15/16
4,500 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/08 at 100 AAA 3,990,10
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 6.800%, 12/15/10 No Opt. Call AAA 6,288,24
2,000 6.800%, 12/15/11 No Opt. Call AAA 2,291,42
8,805 Matagorda County Navigation District Number One (Texas), Revenue 5/09 at 101 Baa1 8,007,44
Refunding Bonds (Reliant Energy, Inc. Project), Series 1999B,
5.950%, 5/01/30
4,000 State of Texas, General Obligation Water Financial Assistance 8/09 at 100 Aa1 3,918,88
Bonds, Series 1999C (State Participation Program),
5.500%, 8/01/35
6,500 Travis County (Texas), Health Facilities Development 11/00 at 101 AAA 6,553,75
Corporation, Revenue Bonds (Ascension Health Credit Group),
Series 1999A, 5.875%, 11/15/24
The Wood Glen Housing Finance Corporation (Texas), Mortgage
Revenue Refunding Bonds, Series 1990C (FHA-Insured Mortgage Loan
- Section 8 Assisted Copperwood II Project):
1,050 7.625%, 1/01/10 1/01 at 102 AAA 1,082,80
1,250 7.650%, 7/01/23 1/01 at 102 AAA 1,291,12
-----------------------------------------------------------------------------------------------------------------------------------
Virgin Islands - 0.6%
6,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin No Opt. Call BBB- 6,127,74
Islands Gross Receipts Tax LoanNote), Series 1999A,
5.625%, 10/01/10
-----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.8%
8,130 Capital Region Airport Commission, Richmond, Virginia, 7/05 at 102 AAA 8,169,67
International Airport Projects, Airport Revenue Bonds,
Series 1995A, 5.625%, 7/01/20
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 8.2%
10,730 Sumner School District No. 320, Pierce County, Washington, 12/10 at 100 Aaa 11,565,54
Unlimited Tax General Obligation Bonds, Series 2000,
6.250%, 12/01/17
5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, No Opt. Call AAA 5,669,82
6.000%, 2/01/10 (Alternative Minimum Tax)
19,295 Port of Seattle, Washington, Special Facility Revenue Bonds 3/10 at 101 AAA 20,007,56
(Terminal 18 Project), Series 1999A, 6.000%, 9/01/29
5,000 Port of Seattle, Washington, Special Facility Revenue Bonds 3/10 at 101 AAA 5,121,35
(Terminal 18 Project), Series 1999C, 6.000%, 9/01/20
(Alternative Minimum Tax)
5,250 Everett School District No. 2, Snohomish County, Washington, 12/03 at 102 AAA 5,601,06
Unlimited Tax General Obligation Bonds, Series 1993,
6.200%, 12/01/12 (Pre-refunded to 12/01/03)
2,500 City of Walla Walla, Washington, Water and Wastewater Revenue 8/07 at 100 AAA 2,378,550
Bonds, Series 1997, 5.000%, 8/01/17
7,195 State of Washington, Various Purpose General Obligation Bonds, 3/01 at 100 AA+*** 7,233,637
Series 1991A, 6.000%, 3/01/16 (Pre-refunded to 3/01/01)
<PAGE>
Nuveen Municipal Advantage Fund, Inc. (NMA) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Washington (continued)
$ 9,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/08 at 101 Aaa $ 7,917,480
Series 1998 (Children's Hospital and
Regional Medical Center), 5.000%, 10/01/28
5,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101 AAA 4,834,200
Series 1999 (Providence Services), 5.375%, 12/01/19
3,000 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 3,063,000
No. 1 Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13
8,750 Washington Public Power Supply System, Nuclear Project No. 3, 7/08 at 102 Aa1 8,203,825
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 3.7%
3,000 Housing Authority of the City of Milwaukee, Wisconsin, 12/00 at 101 1/2 Aa 3,063,390
Multifamily Housing Refunding Revenue Bonds, Series 1990
(FHA-Insured Mortgage Loan - The Blatz Apartments Project),
7.500%, 12/01/28
3,000 Southeast Wisconsin Professional Baseball Park District, No Opt. Call AAA 3,029,940
Sales Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19
4,995 Wisconsin Housing and Economic Development Authority, 3/10 at 100 AA 5,097,595
Home Ownership Revenue Bonds, 2000 Series B, 5.750%,
3/01/22 (Alternative Minimum Tax)
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Series 1996 (Aurora Medical Group, Inc. Project):
10,000 5.600%, 11/15/16 5/06 at 102 AAA 10,071,200
15,000 5.750%, 11/15/25 5/06 at 102 AAA 14,950,200
------------------------------------------------------------------------------------------------------------------------------------
$ 928,365 Total Investments (cost $914,903,758) - 95.0% 937,045,441
=============-----------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 1.3%
4,400 County of Delta, Michigan, 1985 Series D P-1 4,400,000
(Mead-Escanba Paper Company Project), Variable Rate
Demand Bonds, 4.600%, 12/01/23+
4,300 Illinois Health Facilities Authority, Series 1998 VMIG-1 4,300,000
(The University of Chicago Hospital and Health System),
Variable Rate Demand Bonds, 4.600%, 8/01/26+
4,300 Louisiana Offshore Terminal Authority (LOOP Inc. Project), VMIG-1 4,300,000
First Stage Series 1992A, Variable Rate Demand Bonds, 4.600%, 9/01/08+
------------------------------------------------------------------------------------------------------------------------------------
$ 13,000 Total Short-Term Investments (cost $13,000,000) 13,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.7% 36,053,360
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 986,098,801
====================================================================================================================
* 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.
+ 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>
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Arizona - 0.5%
$ 3,225 The Industrial Development Authority of the County of Maricopa, 7/10 at 102 Baa3 $ 3,243,995
Education Revenue Bonds (Arizona Charter Schools Project I),
Series 2000A, 6.750%, 7/01/29
2,150 The Industrial Development Authority of the County of Pima, 5/07 at 105 17/20 AAA 2,336,577
Single Family Mortgage Revenue Bonds, Series 1997A,
7.100%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.8%
5,000 Arkansas Development Finance Authority, Hospital Revenue Bonds 2/10 at 100 BBB- 5,026,600
(Washington Regional Medical Center), Series 2000, 7.000%, 2/01/15
4,000 Baxter County, Arkansas, Hospital Revenue Improvement Bonds, 9/09 at 100 BBB 3,371,120
Series 1999B (Baxter County Regional Hospital), 5.600%, 9/01/21
------------------------------------------------------------------------------------------------------------------------------------
California - 5.7%
8,745 Bell Community Redevelopment Agency, Bell Redevelopment Area, 11/03 at 102 AAA 9,204,637
Tax Allocation Refunding Bonds, Series 1994, 6.350%, 11/01/23
6,810 California Health Facilities Financing Authority, 5/03 at 102 A 6,564,636
Kaiser Permanente, Revenue Bonds, 1993 Series C, 5.600%, 5/01/33
2,500 The Community Redevelopment Agency of the City of Los Angeles 1/01 at 100 BBB*** 2,513,450
(California), Central Business District Redevelopment Project,
Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10
6,000 Department of Water and Power of the City of Los Angeles 10/03 at 102 Aa3 5,368,380
(California), Electric Plant Revenue Bonds,
Second Issue of 1993, 4.750%, 10/15/20
12,080 Department of Water and Power of the City of Los Angeles, 2/04 at 102 Aa3 11,660,099
(California), Electric Plant Revenue Bonds,
Issue of 1994, 5.375%, 2/15/34
County of Orange, California, 1996 Recovery Certificates of
Participation, Series A:
13,000 5.875%, 7/01/19 7/06 at 102 AAA 13,577,200
180 6.000%, 7/01/26 7/06 at 102 AAA 188,357
5,870 Sacramento Municipal Utility District (California), 9/03 at 100 AAA 5,297,264
Electric Revenue Refunding Bonds, 1993 Series G,
4.750%, 9/01/21
San Joaquin Hills Transportation Corridor Agency, Toll Road
Refunding Revenue Bonds, Series 1997A:
5,000 0.000%, 1/15/17 1/14 at 102 AAA 3,513,900
5,000 0.000%, 1/15/26 No Opt. Call AAA 1,205,250
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 4.9%
3,000 City and County of Broomfield Building Corporation, Colorado, 12/09 at 100 AAA 3,034,740
Master Facilities Lease Purchase Agreement,
Certificates of Participation, Series 1999,
5.750%, 12/01/24
25,000 Colorado Health Facilities Authority, Retirement Facilities No Opt. Call AAA 5,832,250
Revenue Bonds (Liberty Heights), Series 1991B, 0.000%, 7/15/24
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991A:
3,240 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 3,356,770
9,010 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 9,258,676
2,785 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/02 at 102 A 2,938,899
Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax)
6,020 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/02 at 102 A 6,283,315
Series 1992C, 6.750%, 11/15/22 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991D:
3,955 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 4,130,800
3,940 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 4,006,901
11,465 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100 AAA 11,862,148
Refunding Bonds, Series 2000A, 6.000%, 11/15/18
(Alternative Minimum Tax)
<PAGE>
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
District of Columbia - 0.2%
$ 1,850 District of Columbia Housing Finance Agency, Collateralized 12/00 at 102 AAA $ 1,889,609
Single Family Mortgage Revenue Bonds, Series 1990A, 8.100%,
12/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 0.5%
5,525 Miami-Dade County Industrial Development Authority, No Opt. Call Baa3 5,567,543
Special Facilities Revenue Bonds (United Airlines, Inc.
Project), Series 2000, 6.050%, 3/01/35 (Alternative Minimum Tax)
(Mandatory put 3/01/10)
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.7%
15,000 City of Atlanta, Georgia, Airport General Revenue 1/10 at 101 AAA 15,004,950
and Refunding Bonds, Series 2000A, 5.600%, 1/01/30
14,000 Fulton County Facilities Corporation, Certificates of 11/10 at 101 AAA 14,042,700
Participation (Fulton County, Georgia, Public Purpose Project),
Series 1999, 5.500%, 11/01/18
8,000 State of Georgia, General Obligation Bonds, 1995 Series C, No Opt. Call AAA 9,311,040
7.250%, 7/01/08
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 7.4%
6,500 City of Chicago, Illinois, Gas Supply Refunding Revenue Bonds, 6/05 at 102 AA- 6,630,325
1995 Series A (The Peoples Gas Light and Coke Company Project),
6.100%, 6/01/25
7,300 City of Chicago, Chicago-O'Hare International Airport, 11/00 at 102 Baa1 7,454,322
Special Facility Revenue Bonds (American Airlines Inc. Project),
Series 1990A, 7.875%, 11/01/25 (Alternative Minimum Tax)
4,000 Community College District No. 508, Cook County, Illinois, No Opt. Call AAA 4,728,640
Certificates of Participation, 8.750%, 1/01/06
5,210 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102 A 5,321,494
Housing Revenue Bonds (Garden House of River Oaks West
Development), Series 1992A, 6.875%, 1/01/20
1,520 Illinois Housing Development Authority, Section 8 Elderly 3/03 at 102 A 1,553,607
Housing Revenue Bonds (Village Center Development),
Series 1992C, 6.600%, 3/01/07
38,645 State of Illinois, General Obligation Bonds, Illinois First, 4/10 at 100 AAA 38,106,675
Series of April 2000, 5.500%, 4/01/25
1,150 City of Peoria, Peoria County, City of Pekin, Tazewell 2/01 at 103 AA 1,182,085
and Peoria Counties, and City of Waukegan, Lake County
(Illinois), Jointly, GNMA Collateralized Mortgage Revenue
Bonds, Series 1990, 7.875%, 8/01/22 (Alternative Minimum Tax)
Regional Transportation Authority of Cook, DuPage, Kane, Lake,
McHenry, and Will Counties, Illinois, General Obligation Bonds,
Series 2000A:
5,575 5.750%, 7/01/10 No Opt. Call AAA 5,969,264
5,650 6.000%, 7/01/11 No Opt. Call AAA 6,173,360
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.6%
5,000 Columbus Multi-School Building Corporation (Bartholomew County, 1/01 at 102 N/R*** 5,130,750
Indiana), First Mortgage Bonds, 7.600%, 1/15/14
(Pre-refunded to 1/15/01)
9,290 Fort Wayne (Indiana), Economic Development Revenue Bonds 4/08 at 102 N/R 8,620,563
(Oaklawn Court Apartments Project), Series 1998A, 7.000%,
4/01/28 (Alternative Minimum Tax)
20,695 Indianapolis Airport Authority, Specialty Facility Revenue Bonds, 11/05 at 102 Baa2 19,716,540
Series 1995A (United Airlines, Inc., Indianapolis Maintenance
Center Project), 6.500%, 11/15/31 (Alternative Minimum Tax)
3,750 The Indianapolis Local Public Improvement Bond Bank, 2/03 at 102 AA 3,957,638
Series 1992D Bonds, 6.750%, 2/01/20
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.4%
4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, No Opt. Call N/R 4,155,231
Series 1997 (IPSCO Project), 6.000%, 6/01/27
(Alternative Minimum Tax) (Mandatory put 6/01/07)
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.0%
School District Finance Corporation, Jefferson County, Kentucky, School
Building Revenue Bonds, Series 2000A:
3,045 5.250%, 7/01/17 1/10 at 101 AAA 3,009,800
7,490 5.250%, 7/01/20 1/10 at 101 AAA 7,270,468
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Massachusetts - 3.7%
$ 19,150 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100 AAA $ 18,197,288
2000 Series A, 5.250%, 7/01/30
5,400 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 5,632,794
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
4,175 Massachusetts Health and Educational Facilities Authority, 1/01 at 102 BBB 4,261,965
Revenue Bonds, Goddard Memorial Hospital Issue,
Series B, 9.000%, 7/01/15
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101 AAA 10,066,100
2000 Series A, 5.750%, 8/01/39
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.3%
4,500 Michigan State Hospital Finance Authority, Hospital Revenue Bonds 8/01 at 102 Aaa 4,696,425
(The Detroit Medical Center Obligated Group), Series 1991A,
7.500%, 8/15/11 (Pre-refunded to 8/15/01)
8,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB 8,515,895
(Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 5.1%
13,675 State of Minnesota, General Obligation Bonds, Series 2000, 5.125%, 11/10 at 100 AAA 13,539,618
11/01/16 (WI, settling 11/08/00)
5,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds 1/11 at 101 AA+ 5,095,450
(Remarketed), 1997 Series H, 6.050%, 7/01/31
(Alternative Minimum Tax)
30,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101 A 30,426,000
Health Care System Revenue Bonds, Series 2000A (Fairview
Health Services), 6.375%, 11/15/29
3,600 The Housing and Redevelopment Authority of the City of St. Paul, 11/15 at 103 AAA 4,240,476
Minnesota, Sales Tax Revenue Refunding Bonds
(Civic Center Project), Series 1996, 7.100%, 11/01/23
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.0%
5,900 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102 BBB- 5,431,835
Revenue Refunding Bonds (System Energy Resources, Inc.
Project), Series 1998, 5.875%, 4/01/22
5,170 Mississippi Home Corporation, Single Family Mortgage Revenue Bonds, 7/07 at 105 Aaa 5,398,256
Series 1997D, Class 5, 0.000%, 7/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.9%
21,000 Director of the State of Nevada, Department of Business and 1/10 at 100 AAA 19,824,000
Industry, Las Vegas Monorail Project Revenue Bonds,
1st Tier Series 2000, 5.375%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.4%
1,670 Pollution Control Financing Authority of Camden County No Opt. Call B2 1,647,756
(New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991C, 7.125%, 12/01/01
(Alternative Minimum Tax)
1,815 Pollution Control Financing Authority of Camden County 12/01 at 102 B2 1,722,181
(New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
21,000 New Jersey Transportation Trust Fund Authority, 6/10 at 100 AA 21,711,690
Transportation System Bonds, 2000 Series B, 5.750%, 6/15/17
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.4%
4,460 New Mexico Mortgage Finance Authority, Single Family Mortgage 3/01 at 102 AAA 4,555,087
Program Senior Bonds, 1990 Series A (Federally Insured or
Guaranteed Mortgage Loans), 7.800%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
New York - 18.8 %
10,000 Erie County Industrial Development Agency (New York), 12/10 at 103 N/R 7,000,000
Solid Waste Disposal Facility Revenue Bonds
(1998 CanFibre of Lackawanna Project), 9.050%,
12/01/25 (Alternative Minimum Tax)
20,000 Nassau County Tobacco Settlement Corporation (New York), 7/09 at 101 A- 20,033,400
Tobacco Settlement Asset-Backed Bonds,
Series A, 6.400%, 7/15/33
10,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 10,096,300
Fiscal 1996 Series G, 5.750%, 2/01/20
21,715 The City of New York, New York, General Obligation Bonds, 3/06 at 101 1/2 A 22,181,655
Fiscal 1996 Series I, 5.875%, 3/15/18
10,000 The City of New York, New York, General Obligation Bonds, 8/07 at 101 A 10,373,800
Fiscal 1997 Series H, 6.125%, 8/01/25
<PAGE>
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New York (continued)
$ 6,750 The City of New York, New York, General Obligation Bonds, 2/05 at 101 A*** $ 7,360,403
Fiscal 1995 Series F, 6.625%, 2/15/25 (Pre-refunded to 2/15/05)
2,550 New York City Municipal Water Finance Authority, 6/02 at 101 1/2 AAA 2,579,249
Water and Sewer System Revenue Bonds, Fiscal 1993
Series A, 5.750%, 6/15/18
17,870 New York City Transitional Finance Authority, Future Tax 8/09 at 101 AA 18,090,337
Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24
15,000 Dormitory Authority of the State of New York, City University No Opt. Call Baa1 16,491,300
System Consolidated Second General Resolution Revenue Bonds,
Series 1990D, 8.750%, 7/01/03
20,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 A 20,016,200
Services Facilities Improvement Revenue Bonds,
Series 1997A, 5.750%, 2/15/27
4,500 New York State Energy Research and Development Authority, 7/03 at 102 AAA 4,402,800
Gas Facilities Revenue Bonds, Series C (The Brooklyn Union
Gas Company Project), 5.600%, 6/01/25 (Alternative Minimum Tax)
1,775 New York State Housing Finance Agency, Health Facilities 11/00 at 102 A 1,805,956
Revenue Bonds, 1990 Series A Refunding, 8.000%, 11/01/08
5,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 5,547,450
Brookdale Hospital Medical Center Secured Hospital
Revenue Bonds, 1995 Series A, 6.850%, 2/15/17
(Pre-refunded to 2/15/05)
4,785 New York State Medical Care Facilities Finance Agency, 11/05 at 102 Aa1 5,059,372
Health Center Projects Revenue Bonds (Secured Mortgage
Program), Series 1995A, 6.375%, 11/15/19
10,000 The Port Authority of New York and New Jersey, 12/07 at 102 AAA 10,151,300
Special Project Bonds, Series 6 (JFK International
Air Terminal LLC Project), 5.750%, 12/01/22
(Alternative Minimum Tax)
7,000 Triborough Bridge and Tunnel Authority, New York, 1/10 at 100 Aa3 6,855,030
General Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
26,500 TSASC, Inc. (New York), Tobacco Flexible Amortization Bonds, 7/09 at 101 Aa2 26,221,220
Series 1999-1, 6.250%, 7/15/34
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.0%
10,500 North Carolina Eastern Municipal Power Agency, Power System 1/02 at 102 BBB 10,748,115
Revenue Bonds, Refunding Series 1991A, 6.250%, 1/01/03
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 2.5%
21,155 City of Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101 AAA 20,659,127
MertiCare Obligated Group, Series 2000A, 5.625%,
6/01/31 (WI, settling 11/08/00)
North Dakota State Water Commission, Water Development Trust
Fund, Water Development and Management Program Bonds, 2000
Series A:
2,230 5.700%, 8/01/18 8/10 at 100 AAA 2,280,153
2,450 5.750%, 8/01/19 8/10 at 100 AAA 2,507,575
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.6%
16,140 County of Montgomery, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call BBB+ 16,225,058
Series 1999 (Kettering Medical Center Network
Obligated Group), 6.300%, 4/01/12
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.3%
8,500 Trustees of the Tulsa Municipal Airport Trust, 12/00 at 102 Baa1 8,675,950
1988 Adjustable Rate Revenue Obligations, 7.375%,
12/01/20 (Alternative Minimum Tax)
5,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, 6/01 at 102 Baa1 5,135,000
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.0%
City of Portland, Oregon, Water System Revenue Bonds,
2000 Series A:
6,780 5.375%, 8/01/18 8/10 at 100 Aa1 6,779,390
3,655 5.500%, 8/01/20 8/10 at 100 Aa1 3,675,212
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Pennsylvania - 2.4%
$ 5,000 Delaware County Industrial Development Authority (Pennsylvania), 1/08 at 102 BB- $ 4,528,350
Refunding Revenue Bonds, Series A 1997 (Resource Recovery
Facility), 6.200%, 7/01/19
15,000 Delaware River Port Authority, Revenue Refunding Bonds, No Opt. Call AAA 15,556,050
Series B of 1998, 5.250%, 1/01/08
5,000 Pennsylvania Higher Education Assistance Agency, 12/10 at 100 AAA 5,091,250
Capital Acquisition Bonds, Series of 2000, 5.875%, 12/15/30
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.1%
315 Rhode Island Housing and Mortgage Finance Corporation, 4/01 at 101 AA+ 321,750
Homeownership Opportunity Bonds, Series 2, 7.750%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.6%
3,640 South Carolina Jobs-Economic Development Authority, 9/02 at 102 N/R*** 3,893,708
Economic Development Revenue Bonds (Carolina's Hospital
System Project), Series 1992, 7.550%, 9/01/22
(Pre-refunded to 9/01/02)
2,335 Three Rivers Solid Waste Authority (South Carolina), 1/07 at 102 AAA 2,213,160
Solid Waste Disposal Facilities Revenue Bonds,
Series 1997, 5.300%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.2%
3,000 The Health and Educational Facilities Board of the 7/03 at 102 N/R 2,431,410
Metropolitan Government of Nashville and Davidson County,
Tennessee, Revenue Refunding Bonds, Series 1998
(The Blakeford at Green Hills), 5.650%, 7/01/16
------------------------------------------------------------------------------------------------------------------------------------
Texas - 15.0%
6,000 Alliance Airport Authority, Inc., Special Facilities 12/00 at 102 Baa1 6,126,000
Revenue Bonds, 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:
3,710 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 1,985,073
3,710 0.000%, 2/15/13 2/05 at 62 15/16 Aaa 1,846,578
12,000 City of Austin, Texas, Hotel Occupancy Tax Subordinate 11/09 at 100 AAA 12,148,560
Lien Revenue 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 5.625%, 8/15/25 8/09 at 100 AAA 5,021,419
8,825 5.625%, 8/15/29 8/09 at 100 AAA 8,811,674
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
17,325 5.400%, 2/15/18 2/10 at 100 AAA 17,194,716
10,000 5.650%, 2/15/19 2/10 at 100 AAA 10,110,700
6,880 5.700%, 2/15/20 2/10 at 100 AAA 6,973,912
8,020 5.700%, 2/15/21 2/10 at 100 AAA 8,120,170
6,000 International Airport Facility Improvement Corporation, 11/09 at 101 Baa1 5,849,040
Dallas-Fort Worth, Texas, Revenue Bonds (American Airlines),
Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax)
14,375 International Airport Facilities Improvement Corporation, No Opt. Call Baa1 14,521,338
Dallas-Fort Worth, Texas, Revenue Refunding Bonds
(American Airlines), Series 2000C, 6.150%, 5/01/29
(Alternative Minimum Tax)(Mandatory put 11/01/07)
22,500 City of Houston, Texas, Water and Sewer System Junior Lien 12/10 at 100 AAA 21,250,575
Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30
15,130 Lubbock Health Facilities Development Corporation, Hospital 12/00 at 102 AAA 15,466,794
Revenue Bonds (Methodist Hospital, Lubbock, Texas),
Series 1990, 7.250%, 12/01/19 (Pre-refunded to 12/01/00)
15,000 San Antonio Independent School District (Bexar County, Texas), 8/09 at 100 AAA 15,216,000
Unlimited Tax School Building Bonds, Series 1999, 5.800%, 8/15/29
4,538 General Services Commission (an Agency of the State of Texas), 9/01 at 101 A 4,679,378
as Lessee, Participation Interests, 7.500%, 9/01/22
<PAGE>
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Utah - 0.1%
$ 4,750 Tooele County, Hazardous Waste Disposal Revenue Bonds 8/05 at 102 N/R $ 1,382,678
(Laidlaw Inc./USPCI Clive Project), Series 1995,
6.750%, 8/01/10 (Alternative Minimum Tax)#
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.2%
2,000 Virginia Housing Development Authority, Multifamily 5/02 at 102 AA+ 2,083,280
Housing Bonds, 1992 Series D, 7.050%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.8%
33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100 AAA 33,296,428
5.625%, 2/01/30
9,000 Washington Higher Education Facilities Authority, Revenue 4/08 at 101 AAA 8,625,420
and Refunding Bonds (The University of Puget Sound Project),
Series 1998, 5.375%, 10/01/30
7,890 Washington Higher Education Facilities Authority, Revenue Bonds 11/09 at 101 AA 8,030,837
(Pacific Lutheran University Project), Series 1999,
5.950%, 11/01/29
9,775 Washington Public Power Supply System, Nuclear Project 7/01 at 102 Aaa 10,126,314
No. 1 Refunding Revenue Bonds, Series 1991A, 6.875%,
7/01/17 (Pre-refunded to 7/01/01)
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.6%
4,995 City of Milwaukee, Milwaukee County, Wisconsin, No Opt. Call AA+ 5,248,994
General Obligation Corporate Purpose Bonds,
Series R, 5.500%, 9/01/08
1,750 Wisconsin Health and Educational Facilities Authority, 3/08 at 101 N/R 1,382,570
Program for the Aging, Inc.), 5.700%, 3/01/28
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.3%
2,800 National Rural Utilities Cooperative Finance Corporation, 5/07 at 101 AA- 2,785,351
Town of Jackson, Wyoming, Guaranteed Gas Supply Revenue Bonds
(Lower Valley Power and Light, Inc. Project), Series 1997B,
5.875%, 5/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,026,023 Total Investments (cost $975,925,339) - 96.0% 996,806,213
=============-----------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.8%
2,100 Health and Education Facilities Authority of the State of VMIG-1 2,100,000
Missouri, Educational Facilities Adjustable Demand Revenue Bonds
(St. Louis University), Series 1985, 4.650%, 12/01/05+
5,900 Power County, Idaho (FMC Corporation Project), 1985 Series, VMIG-1 5,900,000
Variable Rate Demand Bonds, 4.650%, 12/01/10+
------------------------------------------------------------------------------------------------------------------------------------
$ 8,000 Total Short-Term Investments (cost $8,000,000) 8,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.2% 33,263,665
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,038,069,878
====================================================================================================================
* 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.
# Non-income producing security, in the case of a
bond, generally denotes that issuer has defaulted on
the payment of principal or interest or has filed
for bankruptcy.
N/R Investment is not rated. (WI) Security purchased on
a when-issued basis.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Nuveen Dividend Advantage Municipal Fund (NAD)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alabama - 0.5%
$ 4,370 BMC Special Care Facilities Financing Authority of the City of 11/08 at 102 AAA $ 4,142,760
Montgomery (Alabama), Revenue Bonds, Series 1999-A
(Baptist Medical Center), 5.250%, 5/01/20
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.1%
15,000 Pollution Control Corporation, Maricopa County, Arizona, No Opt. Call BB+ 15,004,650
Pollution Control Revenue Remarketing Bonds, Series 1994A,
El Paso Electric Company, 6.375%, 7/01/14 (Mandatory put 8/01/05)
2,500 The Industrial Development Authority of the City of Mesa, Arizona, 1/10 at 101 AAA 2,501,700
Revenue Bonds (Discovery Health System), Series 1999A, 5.625%, 1/01/29
------------------------------------------------------------------------------------------------------------------------------------
California - 1.2%
9,375 Sacramento County Sanitation Districts Financing Authority, 12/05 at 101 AA 9,654,656
Revenue Bonds, Series 2000A (Sacramento Regional County
Sanitation District), 5.875%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 1.8%
10,000 City and County of Denver (Colorado), Airport System 11/06 at 101 AAA 9,859,300
Revenue Bonds, Series 1996C, 5.500%, 11/15/25
1,475 City and County of Denver (Colorado), Multifamily Housing 10/07 at 102 AAA 1,457,005
Revenue Bonds (FHA-Insured Mortgage Loan - The Boston Lofts Project),
Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax)
3,205 City and County of Denver (Colorado), Airport Special Facilities 1/09 at 101 AAA 3,400,152
Revenue Bonds (Rental Car Projects), Series 1999A, 6.000%,
1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.5%
Connecticut Development Authority, Health Facility
Refunding Revenue Bonds, Alzheimers Resource
Center of Connecticut, Inc. Project, Series 1994A:
1,045 6.875%, 8/15/04 No Opt. Call N/R 1,016,628
3,000 7.125%, 8/15/14 8/04 at 102 N/R 2,815,860
------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.8%
1,630 Florida Housing Finance Agency, Housing Revenue Bonds, 12/07 at 102 AAA 1,635,607
1997 Series F (Mar Lago Village Apartments Project),
5.800%, 12/01/17 (Alternative Minimum Tax)
13,400 Martin County Industrial Development Authority (Florida), 12/04 at 102 BBB- 13,558,388
Industrial Development Revenue Bonds (Indiantown Cogeneration
LP Project), Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 0.9%
4,000 Water and Sewerage Authority, Forsyth County, Georgia, Revenue Bonds, 4/10 at 102 Aa2 4,200,840
Series 2000, 6.000%, 4/01/25
3,500 The Hospital Authority of Hall County and the City of Gainesville, 5/09 at 101 AAA 3,409,000
Revenue Anticipation Certificates (Northeast Georgia Health
System, Inc. Project), Series 1999, 5.500%, 5/15/29
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.7%
1,395 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/09 at 101 Aa2 1,388,290
1999 Series E, 5.750%, 1/01/21
2,410 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1/10 at 100 Aa2 2,480,541
2000 Series D, 6.350%, 7/01/22
2,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/10 at 100 Aaa 2,025,020
2000 Series E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 21.0%
3,500 Village of Channahon, Illinois, Revenue Refunding Bonds, 12/09 at 102 BBB+ 3,215,100
Series 1999 (Morris Hospital), 5.750%, 12/01/12
22,750 City of Chicago (Illinois), General Obligation Bonds (Emergency No Opt. Call AAA 22,820,525
Telephone System), Refunding Series 1999, 5.500%, 1/01/23
7,250 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 7,244,635
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1999A,
5.500%, 12/01/26
<PAGE>
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Illinois (continued)
City of Chicago, Multifamily Housing Revenue Bonds (Archer Court
Apartments), Series 1999A (FHA-Insured/GNMA):
$ 1,000 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101 AAA $ 952,210
1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101 AAA 1,153,227
1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101 AAA 1,825,805
4,940 City of Chicago (Illinois), Wastewater Transmission 1/06 at 102 AAA 4,578,540
Revenue Bonds, Series 1995, 5.125%, 1/01/25
3,250 City of Chicago (Illinois), Water Revenue Bonds, Series 1995, 11/06 at 102 AAA 2,954,835
5.000%, 11/01/25
5,000 City of Chicago (Illinois), Water Revenue Bonds, Series 1997, 11/07 at 102 AAA 4,702,950
5.250%, 11/01/27
250 Illinois Development Finance Authority, Solid Waste Disposal No Opt. Call BBB 250,290
Revenue Bonds (Waste Management, Inc. Project), Series 1990,
7.125%, 1/01/01 (Alternative Minimum Tax)
24,835 Illinois Development Finance Authority, Refunding Revenue Bonds, 9/07 at 102 AAA 24,606,518
Series 1999 (The Presbyterian Home Lake Forest Project),
5.625%, 9/01/31
3,935 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 1,826,942
Revenue Bonds, Series 1999A (Round Lake Community Unit School
District Number 116 Project), 0.000%, 1/01/15
2,750 Illinois Educational Facilities Authority, Revenue Bonds, 9/09 at 100 AAA 2,750,743
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 5.000%, 7/01/24 (Pre-refunded to 7/01/07) 7/07 at 101 AAA 1,642,992
5,400 5.000%, 7/01/24 7/07 at 101 AAA 4,876,146
5,265 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102 A- 4,766,141
Series 1996B (Sarah Bush Lincoln Health Center), 5.500%, 2/15/16
17,280 Illinois Health Facilities Authority, Converted Adjustable Rate 10/07 at 102 AAA 18,061,056
Revenue Bonds, Series 1991A (Highland Park Hospital),
6.000%, 10/01/15
7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/01 at 102 Baa3 5,946,841
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:
6,660 0.000%, 12/15/18 No Opt. Call AAA 2,417,846
9,750 0.000%, 12/15/22 No Opt. Call AAA 2,746,380
23,000 0.000%, 12/15/24 No Opt. Call AAA 5,736,890
20,500 Metropolitan Pier and Exposition Authority (Illinois), 12/09 at 101 AAA 20,162,570
McCormick Place Expansion Project Bonds,
Series 1999A, 5.500%, 12/15/24
Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1999:
22,650 5.750%, 6/01/19 No Opt. Call AAA 23,639,352
3,500 5.750%, 6/01/23 No Opt. Call AAA 3,642,240
4,500 School District Number 122, Will County, Illinois (New Lenox), No Opt. Call Aaa 1,644,885
Series 2000B, Capital Appreciation Bonds, 0.000%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.5%
8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101 AAA 8,454,966
Bonds (Charity Obligated Group), Series 1999D, 5.500%, 11/15/24
4,190 City of Indianapolis, Indiana, Economic Development Revenue Bonds 6/09 at 101 Aa3 4,176,299
(Park Tudor Foundation Inc., Project), Series 1999, 5.700%, 6/01/24
28,645 The Indianapolis Local Public Improvement Bond Bank (Indiana), No Opt. Call AAA 7,940,967
Series 1999E, 0.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.4%
11,260 Iowa Higher Education Loan Authority, Private College Facility 10/10 at 102 N/R 11,477,994
Revenue Bonds (Waldorf College Project), Series 1999, 7.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.4%
3,825 City of Wichita, Kansas, Water and Sewer Utility Revenue Bonds, 10/06 at 101 AAA 3,165,188
Series 1999, 4.000%, 10/01/18
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Kentucky - 4.4%
$ 3,030 School District Finance Corporation, Hardin County, Kentucky, 2/10 at 101 Aa3 $ 3,099,023
School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20
Kentucky Economic Development Finance Authority,
Hospital System Refunding and Improvement Revenue Bonds,
Series 1997 (Appalachian Regional Healthcare, Inc. Project):
1,850 5.850%, 10/01/17 4/08 at 102 N/R 1,297,054
6,000 5.875%, 10/01/22 4/08 at 102 N/R 4,043,820
3,000 Louisville and Jefferson County Metropolitan Sewer District 11/07 at 101 AAA 2,850,480
(Commonwealth of Kentucky), Sewer and Drainage System Revenue
Bonds, Series 1997B, 5.200%, 5/15/25
Public Properties Corporation, City of Newport, Kentucky, First
Mortgage Revenue Bonds, Series 2000A (Public Parking and Plaza
Project):
17,240 8.375%, 1/01/18 7/10 at 104 N/R 17,039,326
3,000 8.500%, 1/01/27 7/10 at 104 N/R 2,960,070
4,985 8.375%, 1/01/27 7/10 at 104 N/R 4,918,002
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 0.3%
2,245 City of Lafayette, State of Louisiana, Public Improvement Sales 5/10 at 101 1/2 AAA 2,242,037
Tax Bonds, Series 2000B, 5.625%, 5/01/25 (WI, settling 11/30/00)
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.6%
5,000 Community Development Administration, Maryland Department of 9/09 at 100 Aa2 5,009,700
Housing and Community Development, Residential Revenue Bonds,
2000 Series G, 5.950%, 9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.5%
10,305 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101 AA 9,535,938
System Bonds, 1997 Series C, 5.000%, 3/01/24
785 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102 AAA 790,801
(US Air Project), Series 1996-A, 5.875%, 9/01/23
(Alternative Minimum Tax)
1,795 Massachusetts Housing Finance Agency, Single Family Housing 12/04 at 102 Aa 1,861,110
Revenue Bonds, Series 32, 6.600%, 12/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.6%
9,000 The Economic Development Corporation of the County of Midland, 7/07 at 101 BB+ 9,072,630
Michigan, Subordinated Pollution Control Limited Obligation
Revenue Refunding Bonds (Midland Cogeneration Project),
Series 2000A, 6.875%, 7/23/09 (Alternative Minimum Tax)
4,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 102 AAA 3,899,000
County Airport, Airport Revenue Bonds, Series 1998A,
5.375%, 12/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.4%
3,500 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101 AA+ 3,417,995
1998 Series H-1 Fixed Rate (Remarketing), 5.650%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Montana - 1.0%
6,735 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100 AA+ 6,958,737
2000 Series A2, 6.450%, 6/01/29 (Alternative Minimum Tax)
1,000 Montana Higher Education Student Assistance Corporation, 12/09 at 100 A2 1,052,880
Student Loan Revenue Bonds, Subordinate Series 1999B,
6.400%, 12/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.3%
2,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 2,141,800
Bonds, Series A-5A, 6.200%, 6/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.0%
16,525 New Hampshire Housing Finance Authority, Single Family Mortgage 7/05 at 102 Aa3 16,754,202
Acquisition Revenue Bonds, 1995 Series D, 6.550%,
7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.9%
4,000 Higher Education Student Assistance Authority of the 6/10 at 101 AAA 4,206,160
State of New Jersey, Student Loan Revenue Bonds,
2000 Series A, 6.000%, 6/01/13 (Alternative Minimum Tax)
<PAGE>
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New Jersey (continued)
$ 15,600 New Jersey Economic Development Authority, Solid Waste Facilities No Opt. Call N/R $ 13,260,000
Revenue Bonds (Bridgewater Resources Inc. Project), Series 1999B,
8.250%, 6/01/19 (Alternative Minimum Tax)
4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA 4,216,000
System Bonds, 1999 Series A, 5.750%, 6/15/18
10,000 The Port Authority of New York and New Jersey, Special Project Bonds, 12/07 at 102 AAA 10,362,700
Series 6 (JFK International Air Terminal LLC Project),
5.900%, 12/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New York - 14.2%
2,000 Industrial Development Agency, County of Cattaraugus, New York, No Opt. Call N/R 1,965,280
Tax-Exempt Industrial Development Revenue Bonds, Series 1999A
(Laidlaw Energy and Environmental, Inc. Project), 8.500%, 7/01/21
(Alternative Minimum Tax)
5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101 AAA 4,751,400
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
County of Nassau, New York, General Obligations,
Serial General Improvement Bonds, Series B:
5,005 5.250%, 6/01/19 6/09 at 102 AAA 4,851,747
7,005 5.250%, 6/01/20 6/09 at 102 AAA 6,775,937
7,005 5.250%, 6/01/21 6/09 at 102 AAA 6,744,554
7,005 5.250%, 6/01/22 6/09 at 102 AAA 6,720,947
2,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101 AAA 2,013,680
Fiscal 1998 Series E, 5.250%, 8/01/14
14,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101 AAA 13,852,020
Fiscal 1998 Series F, 5.375%, 8/01/19
6,775 The City of New York, New York, General Obligation Bonds, 5/09 at 101 AAA 6,345,330
Fiscal 1999 Series J, 5.000%, 5/15/20
3,000 New York City Health and Hospitals Corporation, 2/09 at 101 AAA 2,787,420
Health System Bonds, 1999 Series A, 5.000%, 2/15/20
5,000 New York City Transitional Finance Authority, 8/07 at 101 AA 4,572,300
Future Tax Secured Bonds, Fiscal 1998 Series A, 5.000%, 8/15/27
10,000 New York City Transitional Finance Authority, 8/09 at 101 AA 10,123,300
Future Tax Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24
14,970 Dormitory Authority of the State of New York, 2/06 at 102 AAA 14,145,602
Mental Health Services Facilities Improvement Revenue Bonds,
Series 1996B, 5.125%, 8/15/21
4,400 Dormitory Authority of the State of New York, Mental Health 2/07 at 102 AAA 4,304,300
Services Facilities Improvement Revenue Bonds, Series 1996E,
5.250%, 2/15/18
2,170 Dormitory Authority of the State of New York, Frances 7/07 at 102 AA 2,140,727
Schervier Home and Hospital Insured Revenue Bonds
(Franciscan Health Partnership Obligated Group),
Series 1997, 5.500%, 7/01/17
7,500 Dormitory Authority of the State of New York, 2/08 at 101 1/2 AAA 7,176,225
Secured Hospital Revenue Refunding Bonds, Wyckoff
Heights Medical Center, Series 1998H, 5.300%, 8/15/21
10,000 Dormitory Authority of the State of New York, City University 7/09 at 101 AAA 9,850,200
System Consolidated Third General Resolution Revenue Bonds,
1999 Series 1, 5.500%, 7/01/29
2,000 Dormitory Authority of the State of New York, City University 1/08 at 102 AAA 1,942,500
System Consolidated Third General Resolution Revenue Bonds,
1997 Series 1, 5.375%, 7/01/24
7,500 Empire Development Corporation, New York State Urban Development 1/06 at 102 AAA 7,272,525
Corporation, Correctional Capital Facilities Revenue Bonds,
Series 6, 5.375%, 1/01/25
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.6%
3,635 County of Franklin, Ohio, Multifamily Housing Mortgage 1/05 at 103 Aa 3,416,246
Revenue Bonds, Series 1994A (FHA-Insured Mortgage Loan - Hamilton
Creek Apartments Project), 5.550%, 7/01/24 (Alternative Minimum Tax)
Ohio Water Development Authority, State of Ohio, Solid Waste
Disposal Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998B:
5,750 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102 N/R 4,599,713
14,000 6.625%, 9/01/20 9/09 at 102 N/R 12,499,760
1,115 Warren County, Ohio, Special Assessment Bonds, 12/07 at 101 Aa2 1,126,897
Waterstone Boulevard, Series 1997 General Obligation,
5.500%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.3%
2,255 Portland, Oregon, Downtown Waterfront Urban Renewal 6/10 at 101 Aaa 2,261,134
and Redevelopment Bonds, 2000 Series A, 5.500%, 6/15/20
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Pennsylvania - 2.5%
$ 2,500 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- $ 2,544,875
Resource Recovery Revenue Refunding Bonds, 2000 Series
(Panther Creek Partners Project), 6.650%, 5/01/10
(Alternative Minimum Tax)
18,900 City of Philadelphia, Pennsylvania, Airport Revenue Refunding Bonds, 6/08 at 102 AAA 18,492,138
Series 1998A (Philadelphia Airport System), 5.500%, 6/15/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.7%
1,875 City of Central Falls, Rhode Island, General Obligation School 5/09 at 102 AA 1,944,525
Bonds, 6.250%, 5/15/20
3,500 Providence Redevelopment Agency, Rhode Island (Public Safety 4/10 at 101 Aaa 3,522,960
and Municipal Building Projects), Revenue Bonds,
1999 Series A, 5.750%, 4/01/29
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.9%
8,750 The Health, Educational and Housing Facilities Board of the 4/09 at 101 Baa1 7,777,438
County of Knox, Revenue Bonds, Series 1999
(University Health System, Inc.), 5.625%, 4/01/24
5,260 Memphis-Shelby County Airport Authority (Tennessee), 3/10 at 101 AAA 5,387,660
Airport Revenue Bonds, Series 1999D, 6.000%,
3/01/24 (Alternative Minimum Tax)
7,525 Tennessee Housing Development Agency, Homeownership 7/10 at 101 AA 7,828,408
Program Bonds, Issue 2000-1, 6.375%, 7/01/25
(Alternative Minimum Tax)
2,500 Tennessee Housing Development Agency, Homeownership 7/10 at 100 AA 2,569,075
Program Bonds, Issue 2000-2B, 6.250%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
Texas - 12.2%
10,000 City of Austin, Texas, Airport System Prior Lien 11/05 at 102 AAA 10,234,600
Revenue Bonds, Series 1995A, 6.125%, 11/15/25
(Alternative Minimum Tax)
4,675 Carrollton-Farmers Branch Independent School District 2/09 at 100 AAA 4,858,400
(Dallas County, Texas), School Building Unlimited Tax Bonds,
Series 1999, 6.000%, 2/15/20
Coppell Independent School District (Dallas County, Texas),
Unlimited Tax School Building and Refunding Bonds, Series 1999:
5,130 0.000%, 8/15/20 8/09 at 52 15/32 AAA 1,580,194
7,000 0.000%, 8/15/21 8/09 at 49 15/32 AAA 2,019,360
7,340 0.000%, 8/15/22 8/09 at 46 21/32 AAA 1,981,947
7,345 0.000%, 8/15/23 8/09 at 44 AAA 1,859,387
7,000 0.000%, 8/15/24 8/09 at 41 1/2 AAA 1,664,530
7,350 0.000%, 8/15/25 8/09 at 39 1/8 AAA 1,641,402
7,000 0.000%, 8/15/26 8/09 at 36 29/32 AAA 1,471,540
10,000 International Airport Facilities Improvement Corporation, No Opt. Call Baa1 10,098,500
Dallas-Ft. Worth, Texas, Revenue Refunding Bonds
(American Airlines), Series 2000B, 6.050%, 5/01/29
(Alternative Minimum Tax) (Mandatory put 11/01/05)
Harris County Health Facilities Development Corporation (Texas),
Revenue Bonds (CHRISTUS Health), Series 1999A:
12,000 5.375%, 7/01/24 7/09 at 101 AAA 11,179,200
11,000 5.375%, 7/01/29 7/09 at 101 AAA 10,126,930
Harris County Housing Finance Corporation (Texas), 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:
2,845 9.000%, 7/01/29 7/12 at 103 N/R 2,753,846
12,150 6.000%, 7/01/29 7/09 at 102 A 10,985,787
30,000 City of Houston, Texas, Water and Sewer System, Junior Lien No Opt. Call AAA 8,434,800
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/22
2,500 Jefferson County, Texas, Certificates of Obligation, 8/10 at 100 AAA 2,599,800
Series 2000, 6.000%, 8/01/25
4,245 Laredo Independent School District (Webb County, Texas), 8/09 at 100 AAA 4,058,814
Unlimited Tax School Building Bonds, Series 1999,
5.250%, 8/01/24
14,250 Leander Independent School District (Williamson and Travis 8/09 at 35 7/8 AAA 3,033,113
Counties, Texas), Unlimited Tax School Building and
Refunding Bonds, Series 2000, 0.000%, 8/15/25
1,500 City of Port Arthur, Texas (Jefferson County), 2/07 at 100 AAA 1,399,320
General Obligation Bonds, Series 1997, 5.000%, 2/15/21
10,000 Health Facilities Development Corporation, Tarrant County 2/08 at 102 AAA 9,341,500
(Texas), Texas Health Resources System Revenue Bonds,
Series 1997A, 5.250%, 2/15/17
<PAGE>
Nuveen Dividend Advantage Municipal Fund (NAD) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Utah - 1.4%
$ 1,095 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 AAA $ 1,133,029
1994 Issue F (Federally Insured or Guaranteed Mortgage Loans),
7.000%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds, 1999
Series C-2 Class I Bonds:
3,190 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101 1/2 AAA 3,175,198
1,695 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101 1/2 AA 1,686,728
2,700 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101 AA 2,711,610
1999 Series D (Federally Insured or Guaranteed Loans),
5.850%, 7/01/21 (Alternative Minimum Tax)
1,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101 1/2 Aa2 1,040,070
1999 Series F, 6.300%, 7/01/21
1,800 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA- 1,812,672
2000 Series F-2, Class III, 6.000%, 1/01/15
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.1%
5,500 Metropolitan Washington Airports Authority, 10/04 at 100 AAA 5,346,550
Airport System Revenue Bonds, Series 1994A, 5.500%,
10/01/24 (Alternative Minimum Tax)
3,395 Virginia Small Business Financing Authority, 11/09 at 102 N/R 3,393,099
Industrial Development Revenue Bonds (S.I.L. Clean
Water, LLC Project), Series 1999, 7.250%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.0%
Port of Seattle (Washington), Special Facility
Revenue Bonds (Terminal 18 Project), Series 1999C:
2,630 6.000%, 9/01/15 (Alternative Minimum Tax) 3/10 at 101 AAA 2,739,750
1,260 6.000%, 9/01/16 (Alternative Minimum Tax) 3/10 at 101 AAA 1,304,528
2,590 6.000%, 9/01/16 (Alternative Minimum Tax) 3/10 at 101 AAA 2,681,531
11,605 State of Washington, Certificates of Participation 7/09 at 100 AAA 11,391,584
(Washington State Convention and Trade Center),
Series 1999, 5.250%, 7/01/16
18,350 State of Washington, General Obligation Compound No Opt. Call AAA 7,042,730
Interest Bonds, Series 1999S-2, 0.000%, 1/01/18
State of Washington, General Obligation
Compound Interest Bonds, Series 1999S-3:
17,650 0.000%, 1/01/20 No Opt. Call AA+ 5,915,045
18,470 0.000%, 1/01/21 No Opt. Call AA+ 5,823,776
4,800 Washington Public Power Supply System, Nuclear Project 7/07 at 102 AAA 4,726,656
No. 3 Refunding Revenue Bonds, Series 1997-A,
5.250%, 7/01/16
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 3.3%
3,800 Wisconsin Health and Educational Facilities Authority, 5/09 at 101 A 3,311,206
Revenue Bonds, 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 6.250%, 11/15/20 11/09 at 101 N/R 7,450,781
5,000 6.250%, 11/15/28 11/09 at 101 N/R 4,409,150
12,750 Wisconsin Health and Educational Facilities Authority, 8/09 at 101 Aaa 12,224,950
Revenue Bonds, Series 1999 (Mercy Health System Corporation),
5.500%, 8/15/25
------------------------------------------------------------------------------------------------------------------------------------
$ 981,255 Total Investments (cost $806,307,565) - 97.0% 801,871,371
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 24,700,019
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 826,571,390
====================================================================================================================
</TABLE>
* 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.
See accompanying notes to financial statements.
<PAGE>
Statement of
NET ASSETS October 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE PLUS ADVANTAGE OPPORTUNITY DIVIDEND ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments in municipal securities, at market value $1,261,089,228 $937,045,441 $ 996,806,213 $801,871,371
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value -- 13,000,000 8,000,000 --
Cash -- -- -- 15,843,119
Receivables:
Interest 22,842,010 20,015,077 20,020,631 14,200,457
Investments sold 39,278,716 27,169,100 58,001,348 --
Other assets 11,830 19,936 7,504 104,972
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,323,221,784 997,249,554 1,082,835,696 832,019,919
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 4,742,807 7,180,752 6,113,273 --
Payable for investments purchased 8,629,747 -- 34,222,390 2,235,911
Accrued expenses:
Management fees 679,077 518,757 546,160 226,100
Other 406,965 197,044 309,044 128,958
Preferred share dividends payable 192,797 159,639 159,768 137,838
Common share dividends payable 4,014,234 3,094,561 3,415,183 2,719,722
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 18,665,627 11,150,753 44,765,818 5,448,529
------------------------------------------------------------------------------------------------------------------------------------
Net assets $1,304,556,157 $986,098,801 $1,038,069,878 $826,571,390
====================================================================================================================================
Preferred shares, at liquidation value $ 444,000,000 $358,000,000 $ 380,000,000 $295,000,000
====================================================================================================================================
Preferred shares outstanding 17,760 14,320 15,200 11,800
====================================================================================================================================
Common shares outstanding 59,914,073 42,980,333 45,540,872 39,125,795
====================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value, divided
by Common shares outstanding) $ 14.36 $ 14.61 $ 14.45 $ 13.59
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
OPERATIONS Year Ended October 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE PLUS ADVANTAGE OPPORTUNITY DIVIDEND ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 76,784,363 $60,629,845 $64,309,276 $ 48,537,489
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 7,837,390 6,013,905 6,368,897 5,023,131
Preferred shares - auction fees 1,099,782 873,217 919,178 739,521
Preferred shares - dividend disbursing agent fees 74,982 50,138 40,110 30,082
Shareholders' servicing agent fees and expenses 175,599 91,296 116,954 47,246
Custodian's fees and expenses 239,063 160,360 220,965 160,862
Directors'/Trustees' fees and expenses 20,550 16,223 17,098 11,238
Professional fees 14,241 9,683 11,449 7,545
Shareholders' reports - printing and mailing expenses 67,669 62,649 105,405 50,926
Stock exchange listing fees 53,245 40,853 40,739 27,701
Investor relations expense 78,554 83,585 90,315 61,983
Other expenses 68,736 79,505 77,937 27,329
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 9,729,811 7,481,414 8,009,047 6,187,564
Custodian fee credit (88,592) (43,667) (83,478) (72,261)
Expense reimbursement -- -- -- (2,413,331)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 9,641,219 7,437,747 7,925,569 3,701,972
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 67,143,144 53,192,098 56,383,707 44,835,517
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (140,796) 5,276,331 2,019,290 (14,146,371)
Change in net unrealized appreciation
(depreciation) of investments 41,980,342 22,257,513 14,986,145 46,830,048
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 41,839,546 27,533,844 17,005,435 32,683,677
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $108,982,690 $80,725,942 $73,389,142 $ 77,519,194
====================================================================================================================================
See accompanying notes to financial statements.
<PAGE>
Statement of
CHANGES IN NET ASSETS
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA)
----------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 67,143,144 $ 66,830,852 $ 53,192,098 $ 52,972,605
Net realized gain (loss) from investment transactions (140,796) (366,395) 5,276,331 144,273
Change in net unrealized appreciation
(depreciation) of investments 41,980,342 (103,177,454) 22,257,513 (79,766,302)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 108,982,690 (36,712,997) 80,725,942 (26,649,424)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income:
Common shareholders (50,585,361) (54,161,633) (39,288,175) (42,644,599)
Preferred shareholders (17,642,520) (12,595,263) (14,261,879) (10,169,082)
From accumulated net realized gains
from investment transactions:
Common shareholders -- (720,584) -- --
Preferred shareholders -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (68,227,881) (67,477,480) (53,550,054) (52,813,681)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- 2,436,387 -- 5,674,526
Preferred shares:
Net proceeds from sale of shares 43,368,937 -- -- 57,301,876
----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 43,368,937 2,436,387 -- 62,976,402
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 84,123,746 (101,754,090) 27,175,888 (16,486,703)
Net assets at the beginning of year 1,220,432,411 1,322,186,501 958,922,913 975,409,616
----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $1,304,556,157 $1,220,432,411 $986,098,801 $958,922,913
==================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of year $ 341,991 $ 1,426,728 $ 762,594 $ 1,114,212
==================================================================================================================================
See accompanying notes to financial statements.
<PAGE>
Statement of
CHANGES IN NET ASSETS (continued)
OPPORTUNITY (NMO) DIVIDEND ADVANTAGE (NAD)
---------------------------------- ----------------------------
FOR THE PERIOD 5/26/99
(COMMENCEMENT OF
YEAR ENDED YEAR ENDED YEAR ENDED OPERATIONS)
10/31/00 10/31/99 10/31/00 THROUGH 10/31/99
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 56,383,707 $ 56,991,400 $ 44,835,517 $ 15,200,703
Net realized gain (loss) from investment transactions 2,019,290 (371,232) (14,146,371) (6,053,493)
Change in net unrealized appreciation
(depreciation) of investments 14,986,145 (82,437,095) 46,830,048 (51,266,242)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 73,389,142 (25,816,927) 77,519,194 (42,119,032)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income:
Common shareholders (42,645,002) (45,729,071) (33,894,651) (11,578,052)
Preferred shareholders (15,316,935) (10,755,431) (11,945,290) (2,864,236)
From accumulated net realized gains from investment transactions:
Common shareholders -- (673,786) -- --
Preferred shareholders -- (164,760) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (57,961,937) (57,323,048) (45,839,941) (14,442,288)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 559,414,591
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- 5,498,147 109,260 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 -- 84,575,907 109,260 851,244,176
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 15,427,205 1,435,932 31,788,513 794,682,856
Net assets at the beginning of year 1,022,642,673 1,021,206,741 794,782,877 100,021
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $1,038,069,878 $1,022,642,673 $826,571,390 $794,782,877
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of year $ (129,003) $ 1,430,851 $ (37,496) $ 758,415
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<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
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers 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, 2000, Performance Plus (NPP), Opportunity (NMO) and Dividend
Advantage (NAD) had outstanding when-issued and delayed delivery purchase
commitments of $8,629,747, $34,222,390 and $2,235,911, respectively. There were
no such outstanding purchase commitments in Advantage (NMA).
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 $.01 per Common share. 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, 2000,
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 accounting principles
generally accepted in the United States. 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>
Notes to
FINANCIAL STATEMENTS (continued)
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:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
-----------------------------------------------------------------------------------------
Number of shares:
<S> <C> <C> <C> <C>
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 1,760 2,320 -- 3,800
Series F 4,000 3,000 4,000 --
-----------------------------------------------------------------------------------------
Total 17,760 14,320 15,200 11,800
=========================================================================================
</TABLE>
Effective December 15, 1999, Performance Plus (NPP) issued 1,760 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, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Organization and Offering Costs
Costs incurred by the Funds in connection with their organization and offering
of Common and Preferred shares were recorded as a reduction of the proceeds from
the sale of the shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
PERFORMANCE PLUS (NPP) ADVANTAGE (NMA)
-------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of distributions -- 161,510 -- 358,976
--------------------------------------------------------------------------------------------------------------
-- 161,510 -- 358,976
==============================================================================================================
Preferred shares sold 1,760 -- -- 2,320
==============================================================================================================
<CAPTION>
OPPORTUNITY (NMO) DIVIDEND ADVANTAGE (NAD)
---------------------- -----------------------------
FOR THE PERIOD
5/26/99
(COMMENCE -
MENT OF
OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
10/31/00 10/31/99 10/31/00 10/31/99
----------------------------------------------------------------------------------------------------------------
Common shares:
<S> <C> <C> <C> <C>
Shares sold -- -- -- 39,106,228
Shares issued to shareholders
due to reinvestment of distributions -- 346,047 8,415 4,170
----------------------------------------------------------------------------------------------------------------
-- 346,047 8,415 39,110,398
================================================================================================================
Preferred shares sold -- 3,200 -- 11,800
================================================================================================================
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, 2000, to shareholders of record
on November 15, 2000, as follows:
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0670 $.0720 $.0750 $.0695
=============================================================================================================
</TABLE>
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
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, 2000, were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
--------------------------------------------------------------------------------------------------------------
Purchases:
<S> <C> <C> <C> <C>
Long-term municipal securities $337,275,536 $363,076,243 $522,304,627 $292,426,780
Short-term municipal securities 107,975,000 145,475,000 72,500,000 83,250,000
Sales and maturities:
Long-term municipal securities 314,867,103 394,514,068 545,051,074 304,964,161
Short-term municipal securities 152,615,000 146,775,000 64,500,000 92,250,000
===============================================================================================================
At October 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,237,841,559 $927,903,758 $983,925,339 $806,307,565
===============================================================================================================
</TABLE>
At October 31, 2000, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
PERFORMANCE DIVIDEND
PLUS ADVANTAGE
(NPP) (NAD)
--------------------------------------------------------------------------------
Expiration year:
2007 $301,903 $ 5,737,317
2008 140,796 14,462,547
--------------------------------------------------------------------------------
Total $442,699 $20,199,864
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 2000, were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
-----------------------------------------------------------------------------------------------------------
Gross unrealized:
<S> <C> <C> <C> <C>
appreciation $ 41,800,242 $31,199,058 $ 32,954,509 $ 11,046,918
depreciation (18,552,573) (9,057,375) (12,073,635) (15,483,112)
===========================================================================================================
</TABLE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Dividend Advantage (NAD)) 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 (NAD) investment management agreement with the
Adviser, 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 (NAD) 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 (NAD) for any portion of its fees
and expenses beyond July 31, 2009.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At October 31, 2000, net assets consisted of:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
----------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value
<S> <C> <C> <C> <C>
per share, at liquidation value $ 444,000,000 $358,000,000 $ 380,000,000 $295,000,000
Common shares, $.01 par value per share 599,141 429,803 455,409 391,258
Paid-in surplus 836,810,055 600,267,682 635,248,279 555,853,686
Undistributed (Over-distribution of)
net investment income 341,991 762,594 (129,003) (37,496)
Accumulated net realized gain (loss)
from investment transactions (442,699) 4,497,039 1,614,319 (20,199,864)
Net unrealized appreciation
(depreciation) of investments 23,247,669 22,141,683 20,880,874 (4,436,194)
-----------------------------------------------------------------------------------------------------------------
Net assets $1,304,556,157 $986,098,801 $1,038,069,878 $826,571,390
=================================================================================================================
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>
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
8. INVESTMENT COMPOSITION
At October 31, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
<TABLE>
<CAPTION>
PERFORMANCE DIVIDEND
PLUS ADVANTAGE OPPORTUNITY ADVANTAGE
(NPP) (NMA) (NMO) (NAD)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples --% --% 5% --%
Education and Civic Organizations 5 -- 4 5
Healthcare 12 15 10 16
Housing/Multifamily 5 4 2 3
Housing/Single Family 11 16 2 8
Long-Term Care 1 2 -- 4
Tax Obligation/General 12 10 18 17
Tax Obligation/Limited 14 11 18 17
Transportation 6 11 22 14
U.S. Guaranteed 13 7 6 --
Utilities 13 12 7 9
Water and Sewer 8 9 4 5
Other -- 3 2 2
------------------------------------------------------------------------------------------------------------
100% 100% 100% 100%
============================================================================================================
</TABLE>
Certain long-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 (61%
for Performance Plus (NPP), 57% for Advantage (NMA), 39% for Opportunity (NMO)
and 58% for Dividend Advantage (NAD)).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
Financial
HIGHLIGHTS
Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each year
ended October 31:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
-------------------------------- -----------------------------------------------------
From and From and
In Excess In Excess Organization
of Net f 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 (NPP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $13.69 $ 1.12 $ .69 $ 1.81 $ (.84) $ (.29) $ -- $ -- $(1.13) $ (.01) $ 14.36
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
Advantage (NMA)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 13.98 1.24 .63 1.87 (.91) (.33) -- -- (1.24) -- 14.61
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
Opportunity (NMO)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.11 1.24 .38 1.62 (.94) (.34) -- -- (1.28) -- 14.45
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
Dividend Advantage (NAD)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 12.78 1.15 .84 1.99 (.86) (.31) -- -- (1.17) (.01) 13.59
1999 (a) 14.33 .39 (1.47) (1.08) (.30) (.07) -- -- (.37) (.10) 12.78
===================================================================================================================================
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------
Total Returns 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 (NPP)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $ 12.1875 .90% 11.47% $ 1,304,556 1.17% 8.09% .77% 5.29%
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
Advantage (NMA)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 12.8750 1.46 11.48 986,099 1.23 8.77 .78 5.51
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
Opportunity (NMO)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 13.0000 2.97 9.41 1,038,070 1.25 8.76 .78 5.51
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
Dividend Advantage (NAD)
-------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 12.6250 (.79) 13.61 826,571 1.22 8.34 .77 5.28
1999 (a) 13.6250 (7.29) (8.83) 794,783 1.06* 6.10* .76* 4.41*
=============================================================================================================
<PAGE>
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------------------
Municipal Auction Rate Cumulative
After Credit/Reimbursement** Preferred Stock at End of Year
------------------------------------------------------- --------------------------------------
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 Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
===========================================================================================================
Performance Plus (NPP)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1.16% 8.10% .76% 5.30% 25% $ 444,000 $25,000 $73,455
1999 1.12 7.51 .77 5.18 30 400,000 25,000 76,277
1998 1.11 7.74 .77 5.38 23 400,000 25,000 82,637
1997 1.12 8.24 .77 5.69 12 400,000 25,000 81,512
1996 1.13 8.47 .78 5.83 15 400,000 25,000 80,665
Advantage (NMA)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.23 8.77 .77 5.52 39 358,000 25,000 68,862
1999 1.16 8.12 .77 5.41 29 358,000 25,000 66,964
1998 1.12 7.84 .78 5.41 8 300,000 25,000 81,284
1997 1.14 8.23 .78 5.64 8 300,000 25,000 80,172
1996 1.14 8.37 .78 5.72 13 300,000 25,000 79,305
Opportunity (NMO)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.23 8.77 .77 5.51 52 380,000 25,000 68,294
1999 1.14 8.19 .77 5.50 31 380,000 25,000 67,279
1998 1.09 7.88 .77 5.55 13 300,000 25,000 85,101
1997 1.10 8.25 .77 5.78 20 300,000 25,000 84,267
1996 1.10 8.29 .77 5.81 19 300,000 25,000 83,416
Dividend Advantage (NAD)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 .73 8.83 .46 5.59 37 295,000 25,000 70,048
1999 (a) .58* 6.58* .42* 4.76* 16 295,000 25,000 67,354
===========================================================================================================
</TABLE>
* 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.
+ 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.
See accompanying notes to financial statements.
<PAGE>
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
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.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial 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
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, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
Nuveen Investments o 333 West Wacker Drive FAN-2-10-00
Chicago, IL 60606 o www.nuveen.com
