Independent Auditor's Report
To the Shareholders and
Board of Trustees of
Nuveen Floating Rate Fund
In planning and performing our audit of the financial
statements of Nuveen Floating Rate Fund for the period from
November 29, 1999 (commencement of investment
operations) to May 31, 2000, we considered its internal
control, including control activities for safeguarding
securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-
SAR, not to provide assurance on internal control.
The management of Nuveen Floating Rate Fund is
responsible for establishing and maintaining internal control.
In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are
fairly presented in conformity with generally accepted
accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use,
or disposition.
Because of inherent limitations in internal control, error or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American
Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of
one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements
caused by error or fraud in amounts that would be material in
relation to the financial statements being audited may occur
and not be detected within a timely period by employees in
the normal course of performing their assigned functions.
However, we noted no matters involving internal control and
its operation, including controls for safeguarding securities,
that we consider to be material weaknesses as defined above
as of May 31, 2000.
This report is intended solely for the information and use of
management and the Board of Trustees of Nuveen Floating
Rate Fund and the Securities and Exchange Commission and
is not intended to be and should not be used by anyone other
than these specified parties.
KPMG LLP
/s/- KPMG LLP
July 20, 2000
