Washington, D.C. 20549
Kevin J. McCarthy
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
NUVEEN INVESTMENTS ANNOUNCES STRATEGIC COMBINATION WITH FAF ADVISORS
On July 29, 2010, Nuveen Investments announced that U.S. Bancorp will receive a 9.5% stake in Nuveen Investments and cash consideration in exchange for the long-term asset business of U.S. Bancorp’s FAF Advisors. Nuveen Investments is the parent of Nuveen Asset Management (NAM), the investment adviser for the Funds included in this report.
FAF Advisors, which currently manages about $25 billion of long-term assets and serves as the advisor of the First American Funds, will be combined with NAM, which currently manages about $75 billion in municipal fixed income assets. Upon completion of the transaction, Nuveen Investments, which currently manages about $160 billion of assets across several high-quality affiliates, will manage a combined total of about $185 billion in institutional and retail assets.
This combination will not affect the investment objectives, strategies or policies of the Funds in this report. Over time, Nuveen Investments expects that the combination will provide even more ways to meet the needs of investors who work with financial advisors and consultants by enhancing the multi-boutique model of Nuveen Investments, which also includes highly respected investment teams at Hyde Park, NWQ Investment Management, Santa Barbara Asset Management, Symphony Asset Management, Tradewinds Global Investors and Winslow Capital.
The transaction is expected to close late in 2010, subject to customary conditions.
Chairman’s
Letter to Shareholders
Dear Shareholder,
Recent months have revealed the fragility and disparity of the global economic recovery. In the U.S., the rate of economic growth has slowed as various stimulus programs wind down, exposing weakness in the underlying economy. In contrast, many emerging market countries are experiencing a return to comparatively high rates of growth. Confidence in global financial markets has been undermined by concerns about high sovereign debt levels in Europe and the U.S. Until these countries can begin credible programs to reduce their budgetary deficits, market unease and hesitation will remain. On a more encouraging note, while the global recovery is expanding existing trade imbalances, policy makers in the leading economies are making a sustained effort to create a global framework through which various countries can take complimentary actions that should red uce those imbalances over time.
The U.S. economy is subject to unusually high levels of uncertainty as it struggles to recover from a devastating financial crisis. Unemployment remains stubbornly high, due to what appears to be both cyclical and structural forces. Federal Reserve policy makers are implementing another round of quantitative easing, a novel approach to provide support to the economy. However, the high levels of debt owed both by U.S. consumers and the U.S. government limit the Fed’s ability to engineer a stronger economic recovery.
The U.S. financial markets reflect the crosscurrents now impacting the U.S. economy. Today’s historically low interest rates reflect the Fed’s intervention in the financial markets and the demand for U.S. government debt by U.S. and overseas investors looking for a safe haven for investment. The continued corporate earnings recovery and recent electoral results are giving a boost to equity markets. Encouragingly, financial institutions are rebuilding their balance sheets and the financial reform legislation enacted last summer has the potential to address many of the most significant contributors to the financial crisis, although the details still have to be worked out.
In this difficult environment your Nuveen investment team continues to seek sustainable investment opportunities and, at the same time, remains alert for potential risks that may result from a recovery still facing many headwinds. As your representative, the Nuveen Fund Board monitors the activities of each investment team to assure that all maintain their investment disciplines. As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund.
On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 22, 2010
Nuveen Investments 1
Portfolio Managers’ Comments
Nuveen Municipal Value Fund, Inc. (NUV)
Nuveen Municipal Value Fund 2 (NUW)
Nuveen Municipal Income Fund, Inc. (NMI)
Nuveen Enhanced Municipal Value Fund (NEV)
Recently, portfolio managers Tom Spalding and Johnathan Wilhelm discussed U.S. economic and municipal market conditions, key investment strategies and the performance of these four national Funds. With 34 years of investment experience at Nuveen, Tom has managed NUV since its inception in 1987, adding portfolio management responsibility for NUW at its inception in February 2009. Johnathan, who came to Nuveen in 2001 with 20 years of industry experience, served as co-portfolio manager of NMI beginning in 2007 and assumed full portfolio management responsibility for this Fund in March 2009. He added portfolio management responsibility for NEV at its inception in September 2009.
Since the close of this reporting period, Johnathan Wilhelm has left Nuveen Asset Management and no longer manages NMI and NEV. Paul Brennan now is the portfolio manager for NMI. Paul has 20 years of investment experience, including 12 years with Nuveen. Steve Hlavin is the new portfolio manager for NEV. Steve’s investment experience began with Nuveen seven years ago. Steve has been involved with the management of NEV since its inception.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Any reference to credit ratings for portfolio holdings denotes the highest rating assigned by a Nationally Recognized Statistical Rating Organization (NRSRO) such as Standard & Poor’s, Moody’s or Fitch. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below investment grade. Holdings and ratings may change over time.
What factors affected the U.S. economy and municipal market during the twelve-month reporting period ended October 31, 2010?
During this period, the U.S. economy remained under considerable stress, and both the Federal Reserve (Fed) and the federal government continued their efforts to improve the overall economic environment. For its part, the Fed held the benchmark fed funds rate in a target range of zero to 0.25% since cutting it to this record low level in December 2008. At its November 2010 meeting (shortly after the end of this reporting period), the central bank renewed its commitment to keeping the fed funds rate at “exceptionally low levels” for an “extended period.” The Fed also announced a second round of quantitative easing, in which it plans to purchase $600 billion in U.S. Treasury bonds by June 30, 2011. The goal of this plan is to lower long-term interest rates and thereby stimulate economic activity and create jobs. The federal go vernment continued to focus on implementing the economic stimulus package passed in early 2009 and aimed at providing job creation, tax relief, fiscal assistance to state and local governments, and expansion of unemployment benefits and other federal social welfare programs.
These and other measures to ease the economic recession produced some signs of economic improvement. In the third quarter of 2010, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.5%, marking the
first time the economy had strung together five consecutive quarters of growth since 2007-2008. Inflation remained relatively tame, as the Consumer Price Index (CPI) rose just 1.2% year-over-year as of October 2010. The core CPI (which excludes food and energy) rose 0.6% over this period, the smallest twelve-month increase in the 53-year history of this index. Housing prices also continued to recover from their April 2009 lows, although growth rates moderated from previous periods. For the twelve months ended September 2010 (the latest information available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index rose 0.6%. Unemployment remained persistently high, with the jobless rate hovering at or above 9.5% over the past 15 months. As of October 31, 2010, national unemployment stood at 9.6% for the third consecutive month, down from its 26-year high of 10.1% in October 2009.
Municipal bond prices generally rose during this period, as the combination of strong demand and tight supply of new tax-exempt issuance created favorable conditions. One reason for the decrease in new tax-exempt supply was the heavy issuance of taxable municipal debt under the Build America Bond program. Build America Bonds, which were created as part of the February 2009 economic stimulus package, currently offer municipal issuers a federal subsidy equal to 35% of a bond’s interest payments, providing issuers with an alternative to traditional tax-exempt debt that often proves to be lower in cost. For the twelve months ended October 31, 2010, taxable Build America Bonds issuance totaled $100.3 billion, accounting for 24% of new bonds issued in the municipal market.
Over the twelve months ended October 31, 2010, municipal bond issuance nationwide—both tax-exempt and taxable—totaled $418.0 billion, an increase of 9% compared with the twelve-month period ended October 31, 2009. However, if taxable Build America Bond issuance were removed from the equation, the supply of tax-exempt bonds alone actually fell 15%. Since interest payments from Build America Bonds represent taxable income, we do not view these bonds as good investment opportunities for the tax-exempt Nuveen municipal closed-end funds.
What key strategies were used to manage these Funds during this reporting period?
As previously discussed, the supply of tax-exempt municipal bonds declined nationally during this period, due in part to the issuance of taxable municipal bonds under the Build America Bond program. In this environment of constrained issuance of tax-exempt municipal bonds, we continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. In NUV, we found value in several areas of the market, including health care and other revenue bonds offering longer maturities. In NMI, our focus during this period was largely on purchasing lower-rated bonds, specifically those rated BBB, to take advantage of the values we saw among these securities. In general, NUW and NEV saw less investment activity than NUV and NMI because these Funds just recently went through their init ial investment processes. We did carry out some trading activity in NEV aimed at finalizing long-term allocations in terms of ratings and sectors.
Some of our investment activity resulted from opportunities created by the provisions of the Build America Bond program. For example, tax-exempt supply was more plentiful in the health care sector because, as 501(c)(3) (nonprofit) organizations, hospitals generally do not qualify for the Build America Bond program and must continue to issue bonds in
Nuveen Investments 3
| | Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. |
| | For additional information, see the individual Performance Overview for your Fund in this report. |
| 1 | An inverse floating rate security, also known as an inverse floater, is a financial instrument designed to pay long-term interest at a rate that varies inversely with a short-term interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index, previously referred to as the Bond Market Association Index or BMA. Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. |
| 2 | Each Fund may invest in derivative instruments such as forwards, futures, options and swap transactions. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, see the Portfolio of Investments, Financial Statements, and Notes to Financial Statements sections of this report. |
| 3 | The Standard & Poor’s (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment. |
| 4 | The Lipper General and Insured Unleveraged Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 8 funds; 5-year, 7 funds; and 10-year, 7 funds. The Lipper General Leveraged Municipal Debt Funds Average is calculated using the returns of all leveraged closed-end funds in this category for each period as follows: 1-year, 46 funds; 5-year, 44 funds; and 10-year, 30 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper averages are not available for direct investment. |
| 5 | NEV is a leveraged Fund through investments in inverse floating rate securities, as discussed in more detail on page six. The remaining three Funds in this report are unleveraged and use inverse floating rate securities for duration management and both income and total return enhancement. |
the tax-exempt municipal market. Supply in the health care sector was also boosted in the early part of the period by hospitals issuing fixed rate bonds in order to refinance and retire outstanding debt that had initially been issued as variable rate debt. Bonds with proceeds earmarked for refundings, working capital, and private activities also are not covered by the Build America Bond program, and this resulted in attractive opportunities in various other sectors of the market.
The impact of the Build America Bond program was also evident in the area of longer-term issuance, as municipal issuers sought to take full advantage of the attractive financing terms offered by these bonds. Approximately 70% of Build America Bonds were issued with maturities of at least 30 years. Even though this significantly reduced the availability of tax-exempt credits with longer maturities and made locating appropriate longer bonds more challenging, we continued to find good opportunities to purchase attractive longer-term bonds for these Funds.
Cash for new purchases during this period was generated primarily by the proceeds from called and maturing bonds, which we worked to redeploy to keep the Funds fully invested. NUV, in particular, had good cash flows from a number of bond calls. In NMI, we also sold some pre-refunded bonds in order to reduce our position and have the cash to take advantage of opportunities to purchase higher-yielding bonds at attractive prices.
As of October 31, 2010, all four of these Funds continued to use inverse floating rate securities.1 We employ inverse floaters for a variety of reasons, including leverage, duration management and both income and total return enhancement. During this period, NEV also invested in additional types of derivative instruments2 designed to help shorten its duration. These derivatives remained in place at period end.
How did the Funds perform?
Individual results for these Funds, as well as relevant index, average and peer group information, are presented in the accompanying table.
| | | | | | | | | | |
Average Annual Total Returns on Net Asset Value | | | | | | | | | |
For periods ended 10/31/10 | | | | | | | | | |
Fund | | 1-Year | | | 5-Year | | | 10-Year | |
NUV | | | 8.44 | % | | | 4.42 | % | | | 5.34 | % |
NUW | | | 9.91 | % | | | N/A | | | | N/A | |
NMI | | | 10.12 | % | | | 5.07 | % | | | 5.21 | % |
Standard & Poor’s (S&P) National Municipal Bond Index3 | | | 8.06 | % | | | 4.98 | % | | | 5.58 | % |
Lipper General and Insured Unleveraged Municipal Debt Funds Average4 | | | 6.11 | % | | | 3.96 | % | | | 4.65 | % |
NEV5 | | | 14.73 | % | | | N/A | | | | N/A | |
Standard & Poor’s (S&P) National Municipal Bond Index3 | | | 8.06 | % | | | 4.98 | % | | | 5.58 | % |
Lipper General Leveraged Municipal Debt Funds Average4 | | | 13.81 | % | | | 4.87 | % | | | 6.36 | % |
For the twelve months ended October 31, 2010, the total returns on net asset value (NAV) for NUV, NUW and NMI exceeded the return on the Standard & Poor’s (S&P) National Municipal Bond Index as well as the average return for the Lipper General and Insured Unleveraged Municipal Debt Funds Average. For this same period, NEV outperformed both the Standard & Poor’s (S&P) National Municipal Bond Index and the Lipper General Leveraged Municipal Debt Funds Average.
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, the use of derivatives, credit exposure and sector allocation. In addition, NEV’s use of leverage was an important positive factor in its performance and the chief reason behind NEV’s outperformance of the other Funds in this report for the twelve-month period. The impact of leverage is discussed in more detail on page six.
During this period, municipal bonds with longer maturities generally outperformed those with shorter maturities, with credits at the longest end of the municipal yield curve posting the strongest returns. The outperformance of longer term bonds was due in part to the decline in interest rates, particularly in the intermediate and longer segments of the curve. The scarcity of tax-exempt bonds with longer maturities also drove up the prices of these bonds. In general, the greater a Fund’s exposure to the outperforming longer part of the yield curve, the greater the positive impact on the Fund’s return. Both NUW and NEV had the longer durations typically associated with newer Funds that have been recently invested, which benefited their returns. On the other hand, NUV and NMI had more exposure to bonds at the underperforming short end of t he yield curve, including pre-refunded bonds with short call dates, which detracted from their relative performance during this period.
As mentioned earlier, our duration strategies in NEV included using derivative positions to synthetically reduce the duration of this Fund and moderate its interest rate risk. During this period, these derivatives performed poorly and had a negative impact on NEV’s total return performance.
Credit exposure also played a role in performance. The demand for municipal bonds increased during this period driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for higher yields and additional risk. At the same time, the supply of new tax-exempt municipal paper declined, due largely to Build America Bond issuance. As investors bid up municipal bond prices, bonds rated BBB or below generally outperformed those rated AAA. All of these Funds, especially NMI and NEV, benefited from their allocations to lower-rated bonds. However, this positive impact was offset to some degree in NUV by the relatively heavier weighting in bonds rated AAA.
Holdings that generally contributed positively to the Funds’ returns during this period included industrial development revenue and health care bonds. In general, all of these Funds had strong weightings in health care, which added to their performances. Revenue bonds as a whole performed well, with transportation, housing, leasing and special tax credits among the other sectors that outperformed the general municipal market. Zero coupon bonds and credits backed by the 1998 master tobacco settlement agreement also were among the strongest performers. As of October 31, 2010, these Funds held approximately 4% to 6% of their portfolios in lower-rated tobacco bonds.
Nuveen Investments 5
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities continued to perform poorly during this period. While these securities continued to provide attractive tax-free income, the underperformance of these bonds can be attributed primarily to the price declines associated with their shorter effective maturities and higher credit quality. Although allocations of pre-refunded bonds fell in both NUV and NMI over the period due to bond calls and sales, NUV continued to hold a heavier weighting of pre-refunded bonds than NMI. (As relatively new Funds, NUW held less than 0.1% of its portfolio in pre-refunded bonds, while NEV did not hold any of these bonds at period end.) Among the revenue sectors, resource recovery trailed the overall municipal market by the widest margin, and water and sewer bonds turned in a relatively weak er performance. General obligation and other tax-supported bonds also struggled to keep pace with the overall municipal market return during these twelve months.
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the return of NEV relative to the comparative indexes was the Fund’s use of financial leverage through investments in inverse floating rate securities. This Fund uses leverage because its managers believe that, over time, leveraging provides opportunities for additional income and total return for shareholders. However, use of leverage also can expose shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on net asset value and total return is magnified by the use of leverage. Conversely, leverage may enhance returns during periods when the prices of securities held by a Fund generally are rising.
Leverage made a positive contribution to the performance of NEV over this reporting period.
6 Nuveen Investments
Dividend and
Share Price Information
During the twelve-month reporting period ended October 31, 2010, NMI had one monthly dividend increase, while the dividends of NUV, NUW and NEV remained stable throughout the period.
Due to normal portfolio activity, shareholders of the following Funds received capital gains and/or net ordinary income distributions at the end of December 2009 as follows:
| | | |
| | | Short-Term Capital Gains |
| | Long-Term Capital Gains | and/or Ordinary Income |
Fund | (per share) | (per share) |
NUV | $0.0051 | $0.0019 |
NUW | — | $0.0097 |
NEV | — | $0.0009 |
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of October 31, 2010, NUV, NMI and NEV had positive UNII balances for both financial report ing and tax purposes, while NUW had a positive UNII balance for tax purposes and a negative UNII balance for financial reporting purposes.
SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Funds’ repurchase program, the Funds have not repurchased any of their outstanding shares.
Shelf Equity Program
On December 8, 2010, a registration statement filed by NUV with the Securities and Exchange Commission became effective authorizing the Fund to issue 19,600,000 shares through a shelf offering. Under this equity shelf program, the Fund, subject to market conditions, may raise additional equity capital from time to time in varying amounts and offer methods at a net price at or above the Fund’s NAV per share.
As of October 31, 2010, the Funds’ share prices were trading at (+) premiums or (-) discounts to their NAVs as shown in the accompanying table.
| | | | |
| | 10/31/10 | 12-Month Average |
Fund | (+)Premium/(-)Discount | (+)Premium/(-)Discount |
NUV | +2.04% | +2.37% |
NUW | +4.27% | +1.30% |
NMI | +3.69% | +5.13% |
NEV | -1.49% | -0.47% |
| | | |
| | NUV | Nuveen Municipal |
| | | Value Fund, Inc. |
| | Performance | |
| | OVERVIEW | |
| | | as of October 31, 2010 |
| | | |
Fund Snapshot | | |
Share Price | | $10.02 |
Net Asset Value (NAV) | | $9.82 |
Premium/(Discount) to NAV | | 2.04% |
Market Yield | | 4.67% |
Taxable-Equivalent Yield1 | | 6.49% |
Net Assets ($000) | | $1,944,094 |
Average Effective Maturity | | |
on Securities (Years) | | 17.85 |
Modified Duration | | 6.47 |
Average Annual Total Return | | |
(Inception 6/17/87) | | |
| | On Share Price | On NAV |
1-Year | 6.18% | 8.44% |
5-Year | 6.14% | 4.42% |
10-Year | 7.21% | 5.34% |
States4 | | |
(as a % of total investments) | | |
California | | 13.2% |
Illinois | | 13.0% |
Texas | | 7.9% |
New York | | 7.0% |
New Jersey | | 5.1% |
Michigan | | 4.4% |
Florida | | 4.4% |
Washington | | 4.1% |
Colorado | | 4.0% |
Missouri | | 3.5% |
South Carolina | | 2.9% |
Louisiana | | 2.8% |
Puerto Rico | | 2.6% |
Ohio | | 2.5% |
Wisconsin | | 2.3% |
Indiana | | 2.0% |
Other | | 18.3% |
Portfolio Composition4 | | |
(as a % of total investments) | | |
Health Care | | 19.1% |
Tax Obligation/Limited | | 18.7% |
U.S. Guaranteed | | 17.8% |
Transportation | | 11.8% |
Tax Obligation/General | | 8.6% |
Utilities | | 6.8% |
Consumer Staples | | 6.1% |
Other | | 11.1% |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing the Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | The Fund paid shareholders capital gains and net ordinary income distributions in December 2009 of $0.0070 per share. |
| 3 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 4 | Holdings are subject to change. |
8 Nuveen Investments
| | |
| NUW | Nuveen Municipal Value Fund 2 |
| Performance | |
OVERVIEW | |
| | as of October 31, 2010 |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing the Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | The Fund paid shareholders a net ordinary income distribution in December 2009 of $0.0097 per share. |
| 3 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 4 | Holdings are subject to change. |
| | | |
Fund Snapshot | | |
Share Price | | $17.57 |
Net Asset Value (NAV) | | $16.85 |
Premium/(Discount) to NAV | | 4.27% |
Market Yield | | 5.12% |
Taxable-Equivalent Yield1 | | 7.11% |
Net Assets ($000) | | $216,146 |
Average Effective Maturity | | |
on Securities (Years) | | 26.12 |
Modified Duration | | 9.44 |
Average Annual Total Return | | |
(Inception 2/25/09) | | |
| | On Share Price | On NAV |
1-Year | 17.22% | 9.91% |
Since Inception | 15.85% | 16.08% |
States4 | | |
(as a % of total investments) | | |
Illinois | | 11.9% |
California | | 10.6% |
Florida | | 8.7% |
Wisconsin | | 8.1% |
Louisiana | | 7.6% |
Texas | | 6.2% |
Ohio | | 5.9% |
Indiana | | 5.4% |
Colorado | | 5.2% |
Puerto Rico | | 5.2% |
Nevada | | 4.4% |
Arizona | | 3.5% |
Other | | 17.3% |
Portfolio Composition4 | | |
(as a % of total investments) | | |
Health Care | | 24.1% |
Tax Obligation/Limited | | 22.5% |
Transportation | | 12.2% |
Tax Obligation/General | | 10.9% |
Utilities | | 8.9% |
Consumer Staples | | 6.6% |
Water and Sewer | | 5.1% |
Other | | 9.7% |
Nuveen Investments 9
| | | |
| | NMI | Nuveen Municipal |
| | | Income Fund, Inc. |
| | Performance | |
| | OVERVIEW | |
| | | as of October 31, 2010 |
| | | |
Fund Snapshot | | |
Share Price | | $11.24 |
Net Asset Value (NAV) | | $10.84 |
Premium/(Discount) to NAV | | 3.69% |
Market Yield | | 5.07% |
Taxable-Equivalent Yield1 | | 7.04% |
Net Assets ($000) | | $89,008 |
Average Effective Maturity | | |
on Securities (Years) | | 15.40 |
Modified Duration | | 5.80 |
| | | |
Average Annual Total Return | | |
(Inception 4/20/88) | | |
| | On Share Price | On NAV |
1-Year | 11.14% | 10.12% |
5-Year | 6.49% | 5.07% |
10-Year | 5.42% | 5.21% |
States3 | | |
(as a % of total investments) | | |
California | | 18.2% |
Texas | | 10.4% |
Illinois | | 9.6% |
Colorado | | 6.1% |
New York | | 5.8% |
Missouri | | 5.0% |
Indiana | | 4.3% |
South Carolina | | 4.2% |
Florida | | 3.5% |
Michigan | | 3.0% |
Kentucky | | 2.9% |
Virginia | | 2.8% |
Maryland | | 2.5% |
Tennessee | | 2.4% |
Alabama | | 2.4% |
Other | | 16.9% |
Portfolio Composition3 | | |
(as a % of total investments) | | |
Health Care | | 19.6% |
U.S. Guaranteed | | 12.9% |
Utilities | | 12.6% |
Tax Obligation/Limited | | 11.5% |
Tax Obligation/General | | 9.3% |
Education and Civic Organizations | | 6.7% |
Transportation | | 5.9% |
Materials | | 5.4% |
Water and Sewer | | 5.3% |
Other | | 10.8% |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing the Fund to invest- ments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 3 | Holdings are subject to change. |
10 Nuveen Investments
| | |
| NEV | Nuveen Enhanced Municipal Value Fund |
| Performance | |
OVERVIEW | |
| | as of October 31, 2010 |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing the Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | The Fund paid shareholders a net ordinary income distribution in December 2009 of $0.0009 per share. |
| 3 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 4 | Holdings are subject to change |
| 5 | Excluding investments in derivatives. |
| | | |
Fund Snapshot | | |
Share Price | | $14.56 |
Net Asset Value (NAV) | | $14.78 |
Premium/(Discount) to NAV | | -1.49% |
Market Yield | | 6.26% |
Taxable-Equivalent Yield1 | | 8.69% |
Net Assets ($000) | | $284,682 |
Average Effective Maturity | | |
on Securities (Years) | | 22.97 |
Modified Duration | | 9.52 |
| | | |
Average Annual Total Return | | |
(Inception 9/25/09) | | |
| | On Share Price | On NAV |
1-Year | 3.52% | 14.73% |
Since Inception | 3.19% | 9.01% |
States4,5 | | |
(as a % of total investments) | | |
California | | 15.5% |
Florida | | 9.0% |
Illinois | | 7.6% |
Michigan | | 7.0% |
Ohio | | 6.5% |
Pennsylvania | | 6.4% |
Colorado | | 5.0% |
Arizona | | 4.8% |
Massachusetts | | 4.1% |
Texas | | 3.9% |
Wisconsin | | 3.5% |
Indiana | | 3.4% |
Georgia | | 2.7% |
New York | | 2.6% |
Other | | 18.0% |
Portfolio Composition4,5 | | |
(as a % of total investments) | | |
Health Care | | 22.5% |
Tax Obligation/Limited | | 17.8% |
Education and Civic Organizations | | 10.9% |
Tax Obligation/General | | 8.6% |
Transportation | | 8.3% |
Utilities | | 8.1% |
Consumer Staples | | 5.0% |
Housing/Single Family | | 4.9% |
Other | | 13.9% |
Nuveen Investments 11
| | |
NUV | Shareholder Meeting Report |
NUW | The annual meeting of shareholders was held on July 27, 2010, in the Lobby Conference Room, 333 |
NMI | West Wacker Drive, Chicago, IL 60606; at this meeting the shareholders were asked to vote on the |
| NEV | election of Board Members. |
| | |
| | | | | |
| | NUV | NUW | NMI | NEV |
| | Common Shares | Common Shares | Common Shares | Common Shares |
Approval of the Board Members was reached | | | | |
as follows: | | | | |
William C. Hunter | | | | |
For | 159,112,192 | 11,654,135 | 6,784,150 | 14,458,251 |
Withhold | 2,729,181 | 304,673 | 126,731 | 161,550 |
Total | 161,841,373 | 11,958,808 | 6,910,881 | 14,619,801 |
Judith M. Stockdale | | | | |
For | 158,971,814 | 11,641,448 | 6,785,487 | 14,439,555 |
Withhold | 2,869,559 | 317,360 | 125,394 | 180,246 |
Total | 161,841,373 | 11,958,808 | 6,910,881 | 14,619,801 |
Carole E. Stone | | | | |
For | 159,057,543 | 11,644,207 | 6,788,053 | 14,448,341 |
Withhold | 2,783,830 | 314,601 | 122,828 | 171,460 |
Total | 161,841,373 | 11,958,808 | 6,910,881 | 14,619,801 |
Report of Independent
Registered Public Accounting Firm
The Board of Directors/Trustees and Shareholders
Nuveen Municipal Value Fund, Inc.
Nuveen Municipal Value Fund 2
Nuveen Municipal Income Fund, Inc.
Nuveen Enhanced Municipal Value Fund
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Municipal Value Fund, Inc., Nuveen Municipal Value Fund 2, Nuveen Municipal Income Fund, Inc. and Nuveen Enhanced Municipal Value Fund (the “Funds”) as of October 31, 2010, and the related statements of operations, changes in net assets and the financial highlights for each of 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 the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Municipal Value Fund, Inc., Nuveen Municipal Value Fund 2, Nuveen Municipal Income Fund, Inc. and Nuveen Enhanced Municipal Value Fund at October 31, 2010, the results of their operations, the changes in their net assets and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2010
Nuveen Investments 13
| | | Nuveen Municipal Value Fund, Inc. | | | |
NUV | | Portfolio of Investments | | |
| | | | October 31, 2010 | |
| | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Alabama – 0.1% | | | |
$ 1,750 | | Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2001A, 5.750%, 6/01/31 | 6/11 at 101.00 | A1 (4) | $ 1,824,270 |
| | | (Pre-refunded 6/01/11) | | | |
| | | Alaska – 0.6% | | | |
3,335 | | Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A, 5.000%, | 12/14 at 100.00 | AA | 3,448,090 |
| | | 12/01/30 – FGIC Insured | | | |
5,000 | | Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005B-2, 5.250%, | 6/15 at 100.00 | AA | 5,170,450 |
| | | 12/01/30 – NPFG Insured | | | |
3,000 | | Anchorage, Alaska, General Obligation Bonds, Series 2003B, 5.000%, 9/01/23 (Pre-refunded | 9/13 at 100.00 | AA (4) | 3,365,370 |
| | | 9/01/13) – FGIC Insured | | | |
11,335 | | Total Alaska | | | 11,983,910 |
| | | Arizona – 0.7% | | | |
1,400 | | Arizona Health Facilities Authority, Hospital System Revenue Bonds, Phoenix Children’s | 2/12 at 101.00 | N/R (4) | 1,520,512 |
| | | Hospital, Series 2002A, 6.250%, 2/15/21 (Pre-refunded 2/15/12) | | | |
2,500 | | Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, Series | 7/18 at 100.00 | AA– | 2,575,275 |
| | | 2008A, 5.000%, 7/01/38 | | | |
2,575 | | Quechan Indian Tribe of the Fort Yuma Reservation, Arizona, Government Project Bonds, Series | 12/17 at 102.00 | N/R | 2,485,184 |
| | | 2008, 7.000%, 12/01/27 | | | |
5,600 | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc | No Opt. Call | A | 5,290,488 |
| | | Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 | | | |
1,000 | | Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale | 9/13 at 100.00 | A– | 1,017,050 |
| | | Healthcare, Series 2008A, 5.250%, 9/01/30 | | | |
13,075 | | Total Arizona | | | 12,888,509 |
| | | Arkansas – 0.1% | | | |
2,000 | | University of Arkansas, Fayetteville, Various Facilities Revenue Bonds, Series 2002, 5.000%, | 12/12 at 100.00 | Aa2 | 2,044,860 |
| | | 12/01/32 – FGIC Insured | | | |
| | | California – 13.3% | | | |
| | | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: | | | |
10,000 | | 5.125%, 5/01/19 (Pre-refunded 5/01/12) | 5/12 at 101.00 | Aaa | 10,806,700 |
10,000 | | 5.250%, 5/01/20 (Pre-refunded 5/01/12) | 5/12 at 101.00 | Aaa | 10,825,400 |
| | | California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, | | | |
| | | Series 2006: | | | |
5,000 | | 5.000%, 4/01/37 – BHAC Insured | 4/16 at 100.00 | AA+ | 5,132,250 |
6,000 | | 5.000%, 4/01/37 | 4/16 at 100.00 | A+ | 5,956,260 |
6,830 | | California Infrastructure Economic Development Bank, Revenue Bonds, J. David Gladstone | 10/11 at 101.00 | A– | 6,783,693 |
| | | Institutes, Series 2001, 5.250%, 10/01/34 | | | |
2,335 | | California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series | 7/20 at 100.00 | Baa1 | 2,372,874 |
| | | 2010A, 5.750%, 7/01/40 | | | |
1,500 | | California Pollution Control Financing Authority, Revenue Bonds, Pacific Gas and Electric | 6/17 at 100.00 | A3 | 1,503,135 |
| | | Company, Series 2004C, 4.750%, 12/01/23 – FGIC Insured (Alternative Minimum Tax) | | | |
10,390 | | California Statewide Community Development Authority, Certificates of Participation, Internext | 4/11 at 100.00 | BBB | 10,452,132 |
| | | Group, Series 1999, 5.375%, 4/01/17 | | | |
3,500 | | California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital | 8/19 at 100.00 | Aa2 | 4,053,420 |
| | | Project, Series 2009, 6.750%, 2/01/38 | | | |
3,600 | | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, | 7/18 at 100.00 | AA– | 3,759,768 |
| | | Series 2007A, 5.750%, 7/01/47 – FGIC Insured | | | |
| | | California, General Obligation Bonds, Series 2003: | | | |
14,600 | | 5.250%, 2/01/28 | 8/13 at 100.00 | A1 | 14,994,784 |
11,250 | | 5.000%, 2/01/33 | 8/13 at 100.00 | A1 | 11,296,463 |
16,000 | | California, Various Purpose General Obligation Bonds, Series 2007, 5.000%, 6/01/37 | 6/17 at 100.00 | A1 | 16,057,120 |
5,000 | | Coast Community College District, Orange County, California, General Obligation Bonds, Series | 8/18 at 100.00 | AA+ | 4,349,450 |
| | | 2006C, 0.000%, 8/01/32 – AGM Insured | | | |
14 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | California (continued) | | | |
$ 16,045 | | Desert Community College District, Riverside County, California, General Obligation Bonds, | 8/17 at 42.63 | AA+ | $ 3,954,932 |
| | | Election 2004 Series 2007C, 0.000%, 8/01/33 – AGM Insured | | | |
30,000 | | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series | No Opt. Call | AAA | 21,345,000 |
| | | 1995A, 0.000%, 1/01/22 (ETM) | | | |
21,150 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | 6/13 at 100.00 | AAA | 23,484,326 |
| | | Asset-Backed Bonds, Series 2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) – AMBAC Insured | | | |
| | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | | | |
| | | Asset-Backed Revenue Bonds, Series 2005A: | | | |
5,280 | | 5.000%, 6/01/38 – FGIC Insured | 6/15 at 100.00 | A2 | 5,066,213 |
10,000 | | 5.000%, 6/01/45 | 6/15 at 100.00 | A2 | 9,495,900 |
3,540 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | 6/13 at 100.00 | AAA | 4,089,373 |
| | | Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) | | | |
| | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | | | |
| | | Bonds, Series 2007A-1: | | | |
7,550 | | 5.000%, 6/01/33 | 6/17 at 100.00 | BBB | 6,249,060 |
1,500 | | 5.125%, 6/01/47 | 6/17 at 100.00 | BBB | 1,081,065 |
4,500 | | Hemet Unified School District, Riverside County, California, General Obligation Bonds, Series | 8/16 at 102.00 | AA+ | 4,671,630 |
| | | 2008B, 5.125%, 8/01/37 – AGC Insured | | | |
9,000 | | Los Angeles Department of Water and Power, California, Waterworks Revenue Refunding Bonds, | 7/11 at 100.00 | AA | 9,077,760 |
| | | Series 2001A, 5.125%, 7/01/41 | | | |
4,000 | | Los Angeles Regional Airports Improvement Corporation, California, Sublease Revenue Bonds, Los | 12/12 at 102.00 | B– | 4,072,520 |
| | | Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002C, | | | |
| | | 7.500%, 12/01/24 (Alternative Minimum Tax) | | | |
| | | Merced Union High School District, Merced County, California, General Obligation Bonds, | | | |
| | | Series 1999A: | | | |
2,500 | | 0.000%, 8/01/23 – FGIC Insured | No Opt. Call | AA– | 1,244,050 |
2,555 | | 0.000%, 8/01/24 – FGIC Insured | No Opt. Call | AA– | 1,193,619 |
2,365 | | Montebello Unified School District, Los Angeles County, California, General Obligation Bonds, | No Opt. Call | A+ | 854,356 |
| | | Series 2004, 0.000%, 8/01/27 – FGIC Insured | | | |
3,550 | | M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009C, | No Opt. Call | A | 4,165,677 |
| | | 6.500%, 11/01/39 | | | |
4,900 | | Ontario, California, Certificates of Participation, Water System Improvement Project, | 7/14 at 100.00 | AA– | 5,010,887 |
| | | Refunding Series 2004, 5.000%, 7/01/29 – NPFG Insured | | | |
2,350 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, | 11/19 at 100.00 | Baa3 | 2,595,058 |
| | | 6.750%, 11/01/39 | | | |
8,000 | | Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical | 7/14 at 100.00 | Baa1 (4) | 9,367,040 |
| | | Center, Series 2004, 5.625%, 7/01/34 (Pre-refunded 7/01/14) | | | |
15,505 | | Riverside Public Financing Authority, California, University Corridor Tax Allocation Bonds, | 8/17 at 100.00 | A | 13,590,443 |
| | | Series 2007C, 5.000%, 8/01/37 – NPFG Insured | | | |
| | | San Bruno Park School District, San Mateo County, California, General Obligation Bonds, | | | |
| | | Series 2000B: | | | |
2,575 | | 0.000%, 8/01/24 – FGIC Insured | No Opt. Call | AA | 1,260,694 |
2,660 | | 0.000%, 8/01/25 – FGIC Insured | No Opt. Call | AA | 1,224,026 |
| | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue | | | |
| | | Refunding Bonds, Series 1997A: | | | |
10,000 | | 0.000%, 1/15/25 – NPFG Insured | No Opt. Call | A | 3,469,200 |
14,605 | | 0.000%, 1/15/35 – NPFG Insured | No Opt. Call | A | 2,285,244 |
5,000 | | San Jose, California, Airport Revenue Bonds, Series 2007A, 6.000%, 3/01/47 – AMBAC Insured | 3/17 at 100.00 | A | 5,276,450 |
| | | (Alternative Minimum Tax) | | | |
13,220 | | San Mateo County Community College District, California, General Obligation Bonds, Series | No Opt. Call | Aaa | 5,336,914 |
| | | 2006A, 0.000%, 9/01/28 – NPFG Insured | | | |
709 | | Yuba County Water Agency, California, Yuba River Development Revenue Bonds, Pacific Gas and | 3/11 at 100.00 | Baa1 | 694,714 |
| | | Electric Company, Series 1966A, 4.000%, 3/01/16 | | | |
309,064 | | Total California | | | 258,499,600 |
| | | Colorado – 4.0% | | | |
5,000 | | Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – | 10/16 at 100.00 | BBB | 4,849,400 |
| | | SYNCORA GTY Insured | | | |
Nuveen Investments 15
| | |
| | Nuveen Municipal Value Fund, Inc. (continued) |
NUV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Colorado (continued) | | | |
$ 1,800 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, | 8/11 at 100.00 | AAA | $ 1,904,166 |
| | | Peak-to-Peak Charter School, Series 2001, 7.625%, 8/15/31 (Pre-refunded 8/15/11) | | | |
5,000 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, | 9/16 at 100.00 | AA | 4,860,450 |
| | | Series 2006A, 4.500%, 9/01/38 | | | |
11,825 | | Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of | No Opt. Call | AA | 12,086,096 |
| | | Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 | | | |
2,100 | | Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series | 3/12 at 100.00 | Aa2 (4) | 2,231,103 |
| | | 2002A, 5.500%, 3/01/32 (Pre-refunded 3/02/12) | | | |
750 | | Colorado Health Facilities Authority, Revenue Bonds, Longmont United Hospital, Series 2006B, | 12/16 at 100.00 | Baa2 | 715,905 |
| | | 5.000%, 12/01/23 – RAAI Insured | | | |
1,700 | | Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley Health System, Series | 9/18 at 102.00 | AA+ | 1,754,196 |
| | | 2005C, 5.250%, 3/01/40 – AGM Insured | | | |
500 | | Colorado Health Facilities Authority, Revenue Bonds, Vail Valley Medical Center, Series 2001, | 1/12 at 100.00 | BBB+ | 505,360 |
| | | 5.750%, 1/15/22 | | | |
18,915 | | Denver, Colorado, Airport System Revenue Refunding Bonds, Series 2003B, 5.000%, 11/15/33 – | 11/13 at 100.00 | A+ | 19,073,697 |
| | | SYNCORA GTY Insured | | | |
| | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: | | | |
24,200 | | 0.000%, 9/01/31 – NPFG Insured | No Opt. Call | A | 6,203,670 |
17,000 | | 0.000%, 9/01/32 – NPFG Insured | No Opt. Call | A | 4,047,870 |
7,600 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Refunding Series 2006B, 0.000%, | 9/26 at 52.09 | A | 960,108 |
| | | 9/01/39 – NPFG Insured | | | |
10,000 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 3/01/36 – | 9/20 at 41.72 | A | 1,695,700 |
| | | NPFG Insured | | | |
5,000 | | Ebert Metropolitan District, Colorado, Limited Tax General Obligation Bonds, Series 2007, | 12/17 at 100.00 | N/R | 3,953,450 |
| | | 5.350%, 12/01/37 – RAAI Insured | | | |
1,450 | | Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds, Senior Series 2001A, | 6/11 at 102.00 | N/R (4) | 1,521,877 |
| | | 5.500%, 6/15/19 (Pre-refunded 6/15/11) – AMBAC Insured | | | |
7,000 | | Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds, Senior Series 2001C, | 6/16 at 100.00 | N/R (4) | 8,088,220 |
| | | 0.000%, 6/15/21 (Pre-refunded 6/15/16) – AMBAC Insured | | | |
3,750 | | Regional Transportation District, Colorado, Denver Transit Partners Eagle P3 Project Private | 7/20 at 100.00 | Baa3 | 3,967,350 |
| | | Activity Bonds, Series 2010, 6.000%, 1/15/41 | | | |
123,590 | | Total Colorado | | | 78,418,618 |
| | | Connecticut – 0.2% | | | |
8,670 | | Mashantucket Western Pequot Tribe, Connecticut, Subordinate Special Revenue Bonds, Series | 11/17 at 100.00 | N/R | 3,993,142 |
| | | 2007A, 5.750%, 9/01/34 | | | |
| | | District of Columbia – 0.5% | | | |
10,000 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax | 10/16 at 100.00 | A1 | 10,000,700 |
| | | Revenue Bonds, Series 2007A, 4.500%, 10/01/30 – AMBAC Insured | | | |
| | | Florida – 4.4% | | | |
4,000 | | Escambia County Health Facilities Authority, Florida, Revenue Bonds, Ascension Health Credit | 11/12 at 101.00 | Aa1 | 4,153,720 |
| | | Group, Series 2002C, 5.750%, 11/15/32 | | | |
10,000 | | Florida State Board of Education, Public Education Capital Outlay Bonds, Series 2005E, 4.500%, | 6/15 at 101.00 | AAA | 10,031,500 |
| | | 6/01/35 (UB) | | | |
1,750 | | Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa | 10/16 at 100.00 | A3 | 1,751,680 |
| | | General Hospital, Series 2006, 5.250%, 10/01/41 | | | |
10,690 | | Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, Series 2001, 5.000%, | 10/11 at 100.00 | Aa2 | 10,778,299 |
| | | 10/01/30 – AMBAC Insured | | | |
3,000 | | JEA, Florida, Electric System Revenue Bonds, Series Three 2006A, 5.000%, 10/01/41 – AGM Insured | 4/15 at 100.00 | AA+ | 3,070,920 |
4,880 | | Lee County, Florida, Airport Revenue Bonds, Series 2000A, 6.000%, 10/01/32 – AGM Insured | 4/11 at 101.00 | AA+ | 4,934,022 |
| | | (Alternative Minimum Tax) | | | |
5,000 | | Marion County Hospital District, Florida, Revenue Bonds, Munroe Regional Medical Center, | 10/17 at 100.00 | A3 | 4,877,150 |
| | | Series 2007, 5.000%, 10/01/34 | | | |
4,000 | | Miami-Dade County Expressway Authority, Florida, Toll System Revenue Bonds, Series 2010A, | 7/20 at 100.00 | A | 4,079,680 |
| | | 5.000%, 7/01/40 | | | |
16 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Florida (continued) | | | |
$ 4,000 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010B, | 10/20 at 100.00 | A2 | $ 4,118,120 |
| | | 5.000%, 10/01/29 | | | |
8,250 | | Orange County School Board, Florida, Certificates of Participation, Series 2002A, 5.000%, | 8/12 at 100.00 | AA– | 8,360,055 |
| | | 8/01/27 – NPFG Insured | | | |
2,900 | | Orange County, Florida, Tourist Development Tax Revenue Bonds, Series 2006, 5.000%, 10/01/31 – | 10/16 at 100.00 | A+ | 2,955,680 |
| | | SYNCORA GTY Insured | | | |
9,250 | | Port Saint Lucie, Florida, Special Assessment Revenue Bonds, Southwest Annexation District 1B, | 7/17 at 100.00 | A | 8,977,958 |
| | | Series 2007, 5.000%, 7/01/40 – NPFG Insured | | | |
2,500 | | Seminole Tribe of Florida, Special Obligation Bonds, Series 2007A, 5.250%, 10/01/27 | 10/17 at 100.00 | BBB | 2,424,925 |
14,730 | | South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System | 8/17 at 100.00 | AA | 14,906,613 |
| | | Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) | | | |
84,950 | | Total Florida | | | 85,420,322 |
| | | Georgia – 1.0% | | | |
10,240 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 1999A, 5.000%, 11/01/38 – | 5/11 at 100.00 | A1 | 10,247,782 |
| | | FGIC Insured | | | |
2,500 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2001A, 5.000%, 11/01/33 – | 5/12 at 100.00 | A1 | 2,542,025 |
| | | NPFG Insured | | | |
4,000 | | Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 2004, 5.250%, 10/01/39 – | 10/14 at 100.00 | AA+ | 4,181,920 |
| | | AGM Insured | | | |
2,250 | | Royston Hospital Authority, Georgia, Revenue Anticipation Certificates, Ty Cobb Healthcare | 1/11 at 101.00 | N/R | 2,116,890 |
| | | System Inc., Series 1999, 6.500%, 7/01/27 | | | |
18,990 | | Total Georgia | | | 19,088,617 |
| | | Hawaii – 1.1% | | | |
7,140 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Bonds, Hawaiian Electric | 10/12 at 101.00 | A | 7,341,562 |
| | | Company Inc., Series 1997A, 5.650%, 10/01/27 – NPFG Insured | | | |
12,325 | | Honolulu City and County, Hawaii, General Obligation Bonds, Series 2003A, 5.250%, 3/01/28 – | 3/13 at 100.00 | Aa1 | 13,190,215 |
| | | NPFG Insured | | | |
19,465 | | Total Hawaii | | | 20,531,777 |
| | | Illinois – 13.1% | | | |
2,060 | | Aurora, Illinois, Golf Course Revenue Bonds, Series 2000, 6.375%, 1/01/20 | 1/11 at 100.00 | A+ | 2,064,882 |
17,205 | | Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax | No Opt. Call | Aa2 | 8,509,421 |
| | | Revenues, Series 1998B-1, 0.000%, 12/01/24 – FGIC Insured | | | |
400 | | Chicago Greater Metropolitan Sanitary District, Illinois, General Obligation Capital | No Opt. Call | Aaa | 404,248 |
| | | Improvement Bonds, Series 1991, 7.000%, 1/01/11 (ETM) | | | |
5,000 | | Chicago Housing Authority, Illinois, Revenue Bonds, Capital Fund Program, Series 2001, 5.375%, | 7/12 at 100.00 | Aaa | 5,414,550 |
| | | 7/01/18 (Pre-refunded 7/01/12) | | | |
285 | | Chicago, Illinois, General Obligation Bonds, Series 2002A, 5.625%, 1/01/39 – AMBAC Insured | 7/12 at 100.00 | AA– | 300,424 |
9,715 | | Chicago, Illinois, General Obligation Bonds, Series 2002A, 5.625%, 1/01/39 (Pre-refunded | 7/12 at 100.00 | AA– (4) | 10,555,833 |
| | | 7/01/12) – AMBAC Insured | | | |
2,575 | | Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International | 1/11 at 101.00 | A2 | 2,583,678 |
| | | Airport, Series 2001C, 5.100%, 1/01/26 – AMBAC Insured (Alternative Minimum Tax) | | | |
2,825 | | Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, | 1/14 at 100.00 | AA+ | 2,874,692 |
| | | Series 2003C-2, 5.250%, 1/01/30 – AGM Insured (Alternative Minimum Tax) | | | |
3,020 | | Cook County High School District 209, Proviso Township, Illinois, General Obligation Bonds, | 12/16 at 100.00 | AA+ | 3,397,953 |
| | | Series 2004, 5.000%, 12/01/19 – AGM Insured | | | |
8,875 | | Cook County, Illinois, General Obligation Bonds, Refunding Series 2010A, 5.250%, 11/15/33 | 11/20 at 100.00 | AA | 9,511,781 |
3,260 | | Cook County, Illinois, Recovery Zone Facility Revenue Bonds, Navistar International | 10/20 at 100.00 | BB– | 3,394,671 |
| | | Corporation Project, Series 2010, 6.500%, 10/15/40 | | | |
385 | | DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, | 11/13 at 100.00 | Aa2 | 424,405 |
| | | Series 2003B, 5.250%, 11/01/20 – AGM Insured | | | |
1,615 | | DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, | 11/13 at 100.00 | Aa2 (4) | 1,830,118 |
| | | Series 2003B, 5.250%, 11/01/20 (Pre-refunded 11/01/13) – AGM Insured | | | |
Nuveen Investments 17
| | |
| | Nuveen Municipal Value Fund, Inc. (continued) |
NUV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Illinois (continued) | | | |
$ 5,000 | | Illinois Development Finance Authority, Gas Supply Revenue Bonds, Peoples Gas, Light and Coke | 11/13 at 101.00 | A1 | $ 5,133,450 |
| | | Company, Series 2003E, 4.875%, 11/01/38 (Mandatory put 11/01/18) – AMBAC Insured (Alternative | | | |
| | | Minimum Tax) | | | |
28,030 | | Illinois Development Finance Authority, Local Government Program Revenue Bonds, Kane, Cook and | No Opt. Call | Aa3 | 20,789,851 |
| | | DuPage Counties School District U46 – Elgin, Series 2002, 0.000%, 1/01/19 – AGM Insured | | | |
1,800 | | Illinois Development Finance Authority, Local Government Program Revenue Bonds, Winnebago and | No Opt. Call | Aa3 | 1,320,372 |
| | | Boone Counties School District 205 – Rockford, Series 2000, 0.000%, 2/01/19 – AGM Insured | | | |
3,180 | | Illinois Development Finance Authority, Revenue Bonds, Chicago Charter School Foundation, | 12/12 at 100.00 | N/R (4) | 3,534,824 |
| | | Series 2002A, 6.250%, 12/01/32 (Pre-refunded 12/01/12) | | | |
1,450 | | Illinois Development Finance Authority, Revenue Bonds, Illinois Wesleyan University, Series | 9/11 at 100.00 | BBB+ | 1,430,846 |
| | | 2001, 5.125%, 9/01/35 – AMBAC Insured | | | |
6,550 | | Illinois Development Finance Authority, Revenue Bonds, Illinois Wesleyan University, Series | 9/11 at 100.00 | BBB+ (4) | 6,796,935 |
| | | 2001, 5.125%, 9/01/35 (Pre-refunded 9/01/11) – AMBAC Insured | | | |
1,875 | | Illinois Finance Authority, Revenue Bonds, Central DuPage Health, Series 2009B, | 11/19 at 100.00 | AA | 1,996,856 |
| | | 5.500%, 11/01/39 | | | |
5,245 | | Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond | No Opt. Call | Aa1 | 5,607,325 |
| | | Trust 1137, 9.032%, 7/01/15 (IF) | | | |
5,000 | | Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2004A, | 8/14 at 100.00 | N/R (4) | 5,818,350 |
| | | 5.500%, 8/15/43 (Pre-refunded 8/15/14) | | | |
5,030 | | Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Refunding Series 2010A, | 5/20 at 100.00 | A | 5,325,714 |
| | | 6.000%, 5/15/39 | | | |
4,800 | | Illinois Finance Authority, Revenue Bonds, Provena Health, Series 2009A, 7.750%, 8/15/34 | 8/19 at 100.00 | BBB+ | 5,624,976 |
3,975 | | Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A, | 8/17 at 100.00 | BBB | 3,839,691 |
| | | 5.500%, 8/01/37 | | | |
15,000 | | Illinois Health Facilities Authority, Revenue Bonds, Edward Hospital Obligated Group, Series | 2/11 at 101.00 | AA+ (4) | 15,370,200 |
| | | 2001B, 5.250%, 2/15/34 (Pre-refunded 2/15/11) – AGM Insured | | | |
8,180 | | Illinois Health Facilities Authority, Revenue Bonds, Sherman Health Systems, Series 1997, | 2/11 at 100.00 | BBB | 8,179,509 |
| | | 5.250%, 8/01/22 – AMBAC Insured | | | |
3,985 | | Illinois Health Facilities Authority, Revenue Bonds, South Suburban Hospital, Series 1992, | No Opt. Call | N/R (4) | 4,785,945 |
| | | 7.000%, 2/15/18 (ETM) | | | |
5,000 | | Illinois Sports Facility Authority, State Tax Supported Bonds, Series 2001, 5.500%, 6/15/30 – | 6/15 at 101.00 | A | 5,303,100 |
| | | AMBAC Insured | | | |
5,000 | | Lombard Public Facilities Corporation, Illinois, First Tier Conference Center and Hotel | 1/16 at 100.00 | B– | 3,342,550 |
| | | Revenue Bonds, Series 2005A-2, 5.500%, 1/01/36 – ACA Insured | | | |
| | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion | | | |
| | | Project, Series 1992A: | | | |
18,955 | | 0.000%, 6/15/17 – FGIC Insured | No Opt. Call | A | 14,751,350 |
12,830 | | 0.000%, 6/15/18 – FGIC Insured | No Opt. Call | A | 9,390,277 |
| | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion | | | |
| | | Project, Series 1994B: | | | |
7,250 | | 0.000%, 6/15/18 – NPFG Insured | No Opt. Call | AAA | 5,306,275 |
3,385 | | 0.000%, 6/15/21 – NPFG Insured | No Opt. Call | AAA | 2,022,538 |
5,190 | | 0.000%, 6/15/28 – NPFG Insured | No Opt. Call | AAA | 1,950,350 |
11,610 | | 0.000%, 6/15/29 – FGIC Insured | No Opt. Call | AAA | 4,067,912 |
| | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion | | | |
| | | Project, Series 2002A: | | | |
10,000 | | 0.000%, 6/15/24 – NPFG Insured | 6/22 at 101.00 | AAA | 7,822,300 |
21,375 | | 0.000%, 6/15/34 – NPFG Insured | No Opt. Call | AAA | 5,251,624 |
21,000 | | 0.000%, 12/15/35 – NPFG Insured | No Opt. Call | AAA | 4,673,760 |
21,070 | | 0.000%, 6/15/36 – NPFG Insured | No Opt. Call | AAA | 4,528,575 |
10,375 | | 0.000%, 12/15/36 – NPFG Insured | No Opt. Call | AAA | 2,164,018 |
25,825 | | 0.000%, 6/15/39 – NPFG Insured | No Opt. Call | AAA | 4,610,537 |
8,460 | | 5.250%, 6/15/42 – NPFG Insured | 6/12 at 101.00 | AAA | 8,545,192 |
16,700 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place | No Opt. Call | A | 9,685,499 |
| | | Expansion Project, Series 1996A, 0.000%, 12/15/21 – NPFG Insured | | | |
1,650 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place | 11/10 at 100.00 | A2 (4) | 1,654,340 |
| | | Expansion Project, Series 1996A, 5.250%, 6/15/27 (Pre-refunded 11/18/10) – AMBAC Insured | | | |
18 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Illinois (continued) | | | |
| | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place | | | |
| | | Expansion Project, Series 2002B: | | | |
$ 3,775 | | 0.000%, 6/15/20 – NPFG Insured | 6/17 at 101.00 | AAA | $ 3,784,626 |
5,715 | | 0.000%, 6/15/21 – NPFG Insured | 6/17 at 101.00 | AAA | 5,644,934 |
1,000 | | Round Lake, Lake County, Illinois, Special Tax Bonds, Lakewood Grove Special Service Area 4, | 3/17 at 100.00 | AA+ | 1,007,520 |
| | | Series 2007, 4.700%, 3/01/33 – AGC Insured | | | |
1,050 | | Tri-City Regional Port District, Illinois, Port and Terminal Facilities Revenue Refunding | No Opt. Call | N/R | 915,957 |
| | | Bonds, Delivery Network Project, Series 2003A, 4.900%, 7/01/14 (Alternative Minimum Tax) | | | |
1,575 | | Will County Community School District 161, Summit Hill, Illinois, Capital Appreciation School | No Opt. Call | N/R | 1,134,252 |
| | | Bonds, Series 1999, 0.000%, 1/01/18 – FGIC Insured | | | |
720 | | Will County Community School District 161, Summit Hill, Illinois, Capital Appreciation School | No Opt. Call | N/R (4) | 603,763 |
| | | Bonds, Series 1999, 0.000%, 1/01/18 – FGIC Insured (ETM) | | | |
375,830 | | Total Illinois | | | 254,982,749 |
| | | Indiana – 2.0% | | | |
300 | | Anderson, Indiana, Economic Development Revenue Bonds, Anderson University, Series 2007, | 4/14 at 100.00 | N/R | 299,094 |
| | | 5.000%, 10/01/24 | | | |
8,010 | | Indiana Bond Bank, State Revolving Fund Program Bonds, Series 2001A, 5.375%, 2/01/19 | 2/13 at 101.00 | N/R (4) | 8,910,885 |
| | | (Pre-refunded 2/01/13) (Alternative Minimum Tax) | | | |
1,990 | | Indiana Bond Bank, State Revolving Fund Program Bonds, Series 2001A, 5.375%, 2/01/19 | 2/13 at 101.00 | AAA | 2,172,583 |
3,000 | | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Deaconess Hospital Inc., | 3/14 at 100.00 | A | 3,026,640 |
| | | Series 2004A, 5.375%, 3/01/34 – AMBAC Insured | | | |
4,450 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – | 1/17 at 100.00 | A+ | 4,542,026 |
| | | NPFG Insured | | | |
| | | Indianapolis Local Public Improvement Bond Bank, Indiana, Series 1999E: | | | |
12,500 | | 0.000%, 2/01/21 – AMBAC Insured | No Opt. Call | AA | 8,664,250 |
14,595 | | 0.000%, 2/01/27 – AMBAC Insured | No Opt. Call | AA | 7,426,228 |
4,425 | | Whiting Redevelopment District, Indiana, Tax Increment Revenue Bonds, Lakefront Development | 7/20 at 100.00 | N/R | 4,512,748 |
| | | Project, Series 2010, 6.750%, 1/15/32 | | | |
49,270 | | Total Indiana | | | 39,554,454 |
| | | Iowa – 1.0% | | | |
4,115 | | Iowa Finance Authority, Single Family Mortgage Revenue Bonds, Series 2007B, 4.800%, 1/01/37 | 7/16 at 100.00 | AAA | 4,128,909 |
| | | (Alternative Minimum Tax) | | | |
3,500 | | Iowa Higher Education Loan Authority, Private College Facility Revenue Bonds, Wartburg | 10/12 at 100.00 | N/R (4) | 3,829,735 |
| | | College, Series 2002, 5.500%, 10/01/33 (Pre-refunded 10/01/12) – ACA Insured | | | |
7,000 | | Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, | 6/15 at 100.00 | BBB | 5,475,330 |
| | | 5.625%, 6/01/46 | | | |
6,160 | | Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series | 6/11 at 101.00 | AAA | 6,411,082 |
| | | 2001B, 5.600%, 6/01/35 (Pre-refunded 6/01/11) | | | |
20,775 | | Total Iowa | | | 19,845,056 |
| | | Kansas – 0.6% | | | |
10,000 | | Kansas Department of Transportation, Highway Revenue Bonds, Series 2004A, 5.000%, 3/01/22 | 3/14 at 100.00 | AAA | 11,083,700 |
| | | Kentucky – 0.1% | | | |
1,035 | | Greater Kentucky Housing Assistance Corporation, FHA-Insured Section 8 Mortgage Revenue | 1/11 at 100.00 | A | 1,036,449 |
| | | Refunding Bonds, Series 1997A, 6.100%, 1/01/24 – NPFG Insured | | | |
1,000 | | Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, | 6/18 at 100.00 | AA+ | 1,081,800 |
| | | Louisville Arena Authority, Inc., Series 2008-A1, 6.000%, 12/01/38 – AGC Insured | | | |
2,035 | | Total Kentucky | | | 2,118,249 |
| | | Louisiana – 2.8% | | | |
1,000 | | East Baton Rouge Parish, Louisiana, Revenue Refunding Bonds, Georgia Pacific Corporation | 1/11 at 100.00 | Ba3 | 1,000,340 |
| | | Project, Series 1998, 5.350%, 9/01/11 (Alternative Minimum Tax) | | | |
2,310 | | Louisiana Local Government Environment Facilities and Community Development Authority, Revenue | No Opt. Call | BBB- | 2,457,771 |
| | | Bonds, Westlake Chemical Corporation Projects, Series 2009A, 6.500%, 8/01/29 (Mandatory | | | |
| | | put 8/01/20) | | | |
Nuveen Investments 19
| | |
| | Nuveen Municipal Value Fund, Inc. (continued) |
NUV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Louisiana (continued) | | | |
$ 12,000 | | Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue | 11/17 at 100.00 | BB+ | $ 12,767,040 |
| | | Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 | | | |
5,150 | | Louisiana Public Facilities Authority, Hospital Revenue Bonds, Franciscan Missionaries of Our | 8/15 at 100.00 | A+ | 5,175,544 |
| | | Lady Health System, Series 2005A, 5.250%, 8/15/32 | | | |
4,515 | | Louisiana Public Facilities Authority, Hospital Revenue Refunding Bonds, Southern Baptist | 5/10 at 100.00 | AAA | 4,781,791 |
| | | Hospital, Series 1986, 8.000%, 5/15/12 (ETM) | | | |
27,890 | | Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, | 5/11 at 101.00 | BBB | 28,156,907 |
| | | Series 2001B, 5.875%, 5/15/39 | | | |
52,865 | | Total Louisiana | | | 54,339,393 |
| | | Maryland – 0.4% | | | |
3,500 | | Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, | 1/11 at 100.00 | N/R | 3,502,030 |
| | | 7.400%, 9/01/19 (Alternative Minimum Tax) | | | |
4,600 | | Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, MedStar Health, | 8/14 at 100.00 | A2 | 4,721,348 |
| | | Series 2004, 5.500%, 8/15/33 | | | |
8,100 | | Total Maryland | | | 8,223,378 |
| | | Massachusetts – 2.0% | | | |
10,000 | | Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2002A, | 7/12 at 100.00 | AAA | 10,766,700 |
| | | 5.000%, 7/01/32 (Pre-refunded 7/01/12) | | | |
1,720 | | Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds, Ogden Haverhill | 12/10 at 100.00 | BBB | 1,722,236 |
| | | Associates, Series 1998B, 5.100%, 12/01/12 (Alternative Minimum Tax) | | | |
4,340 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cape Cod Health Care | 11/11 at 101.00 | BBB | 4,163,796 |
| | | Inc., Series 2001C, 5.250%, 11/15/31 – RAAI Insured | | | |
500 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., | 7/18 at 100.00 | A3 | 498,860 |
| | | Series 2008E-1 &2, 5.125%, 7/01/38 | | | |
2,000 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northern Berkshire | 7/14 at 100.00 | CCC | 1,036,200 |
| | | Community Services Inc., Series 2004A, 6.375%, 7/01/34 | | | |
| | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northern Berkshire | | | |
| | | Community Services Inc., Series 2004B: | | | |
1,340 | | 6.250%, 7/01/24 | 7/14 at 100.00 | CCC | 694,254 |
1,000 | | 6.375%, 7/01/34 | 7/14 at 100.00 | CCC | 518,100 |
2,300 | | Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk | 7/19 at 100.00 | BBB | 2,439,104 |
| | | University Issue, Series 2009A, 5.750%, 7/01/39 | | | |
12,650 | | Massachusetts Housing Finance Agency, Housing Bonds, Series 2009F, 5.700%, 6/01/40 | 12/18 at 100.00 | AA– | 13,079,594 |
4,250 | | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2000-6, | 8/11 at 100.00 | AAA | 4,307,630 |
| | | 5.500%, 8/01/30 | | | |
40,100 | | Total Massachusetts | | | 39,226,474 |
| | | Michigan – 4.5% | | | |
12,300 | | Detroit Local Development Finance Authority, Michigan, Tax Increment Bonds, Series 1998A, | 11/10 at 100.00 | B– | 6,936,339 |
| | | 5.500%, 5/01/21 | | | |
5,000 | | Detroit Water Supply System, Michigan, Water Supply System Revenue Bonds, Series 2006D, | 7/16 at 100.00 | AA+ | 4,935,650 |
| | | 4.625%, 7/01/32 – AGM Insured | | | |
8,000 | | Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, | 7/15 at 100.00 | A1 | 7,898,880 |
| | | 7/01/35 – NPFG Insured | | | |
5,240 | | Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Refunding Bonds, Series | 10/12 at 100.00 | AAA | 5,637,035 |
| | | 2002, 5.250%, 10/01/19 | | | |
| | | Michigan Municipal Bond Authority, Public School Academy Revenue Bonds, Detroit Academy of | | | |
| | | Arts and Sciences Charter School, Series 2001A: | | | |
600 | | 7.500%, 10/01/12 | 10/11 at 100.00 | B1 | 604,386 |
5,000 | | 7.900%, 10/01/21 | 4/11 at 102.00 | B1 | 5,006,950 |
3,500 | | 8.000%, 10/01/31 | 4/11 at 102.00 | B1 | 3,492,580 |
8,460 | | Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2005I, 5.000%, | 10/15 at 100.00 | Aa3 | 8,859,650 |
| | | 10/15/22 – AMBAC Insured | | | |
22,235 | | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Detroit Medical Center | 2/11 at 100.00 | BB– | 20,795,506 |
| | | Obligated Group, Series 1998A, 5.250%, 8/15/28 | | | |
20 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Michigan (continued) | | | |
$ 350 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Detroit Medical | 1/11 at 100.00 | BB– | $ 334,912 |
| | | Center Obligated Group, Series 1997A, 5.250%, 8/15/27 – AMBAC Insured | | | |
| | | Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center | | | |
| | | Obligated Group, Series 1993A: | | | |
895 | | 6.250%, 8/15/13 | 2/11 at 100.00 | BB– | 895,331 |
12,925 | | 6.500%, 8/15/18 | 2/11 at 100.00 | BB– | 12,924,612 |
7,200 | | Michigan Strategic Fund, Limited Obligation Resource Recovery Revenue Refunding Bonds, Detroit | 12/12 at 100.00 | Baa1 | 7,249,176 |
| | | Edison Company, Series 2002D, 5.250%, 12/15/32 – SYNCORA GTY Insured | | | |
1,150 | | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont | 9/18 at 100.00 | A1 | 1,386,498 |
| | | Hospital, Refunding Series 2009V, 8.250%, 9/01/39 | | | |
92,855 | | Total Michigan | | | 86,957,505 |
| | | Minnesota – 0.6% | | | |
1,750 | | Breckenridge, Minnesota, Revenue Bonds, Catholic Health Initiatives, Series 2004A, | 5/14 at 100.00 | AA | 1,804,968 |
| | | 5.000%, 5/01/30 | | | |
6,375 | | Minneapolis Health Care System, Minnesota, Revenue Bonds, Fairview Hospital and Healthcare | 11/18 at 100.00 | A | 7,299,184 |
| | | Services, Series 2008A, 6.625%, 11/15/28 | | | |
355 | | Minnesota Housing Finance Agency, Rental Housing Bonds, Series 1995D, 5.900%, 8/01/15 – | 2/11 at 100.00 | AA+ | 356,509 |
| | | NPFG Insured | | | |
2,000 | | Saint Paul Housing and Redevelopment Authority, Minnesota, Health Care Facilities Revenue | 11/16 at 100.00 | A3 | 1,950,520 |
| | | Bonds, HealthPartners Obligated Group, Series 2006, 5.250%, 5/15/36 | | | |
10,480 | | Total Minnesota | | | 11,411,181 |
| | | Missouri – 3.5% | | | |
6,000 | | Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Mass Transit Sales | 10/13 at 100.00 | AA+ | 6,096,660 |
| | | Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, | | | |
| | | 10/01/32 – AGM Insured | | | |
40,000 | | Missouri Health and Educational Facilities Authority, Revenue Bonds, BJC Health System, Series | 5/13 at 100.00 | AA | 40,807,200 |
| | | 2003, 5.250%, 5/15/32 (UB) | | | |
12,000 | | Missouri Health and Educational Facilities Authority, Revenue Bonds, SSM Health Care System, | 6/20 at 100.00 | AA– | 12,548,280 |
| | | Series 2010B, 5.000%, 6/01/30 | | | |
4,000 | | Sugar Creek, Missouri, Industrial Development Revenue Bonds, Lafarge North America Inc., | 6/13 at 101.00 | BBB– | 3,841,520 |
| | | Series 2003A, 5.650%, 6/01/37 (Alternative Minimum Tax) | | | |
| | | West Plains Industrial Development Authority, Missouri, Hospital Facilities Revenue Bonds, | | | |
| | | Ozark Medical Center, Series 1997: | | | |
760 | | 5.500%, 11/15/12 | 11/10 at 100.00 | B+ | 760,099 |
1,000 | | 5.600%, 11/15/17 | 11/10 at 100.00 | B+ | 986,040 |
3,175 | | West Plains Industrial Development Authority, Missouri, Hospital Facilities Revenue Bonds,�� | 11/10 at 100.00 | B+ | 3,174,619 |
| | | Ozark Medical Center, Series 1999, 6.750%, 11/15/24 | | | |
66,935 | | Total Missouri | | | 68,214,418 |
| | | Montana – 0.2% | | | |
3,750 | | Forsyth, Rosebud County, Montana, Pollution Control Revenue Refunding Bonds, Puget Sound | 3/13 at 101.00 | A– | 3,780,113 |
| | | Energy, Series 2003A, 5.000%, 3/01/31 – AMBAC Insured | | | |
| | | Nebraska – 0.3% | | | |
5,000 | | Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series 2008A, | 2/18 at 100.00 | Aa1 | 5,492,700 |
| | | 5.500%, 2/01/39 | | | |
| | | Nevada – 1.0% | | | |
2,500 | | Carson City, Nevada, Hospital Revenue Bonds, Carson-Tahoe Hospital, Series 2003A, 5.125%, | 9/13 at 100.00 | BBB | 2,410,575 |
| | | 9/01/29 – RAAI Insured | | | |
5,000 | | Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, 5.750%, 7/01/42 | 1/20 at 100.00 | Aa3 | 5,383,300 |
| | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas | | | |
| | | Monorail Project, First Tier, Series 2000: | | | |
15,095 | | 0.000%, 1/01/24 – AMBAC Insured | No Opt. Call | D | 1,482,329 |
11,000 | | 0.000%, 1/01/25 – AMBAC Insured | No Opt. Call | D | 1,017,060 |
4,000 | | 5.625%, 1/01/32 – AMBAC Insured (5) | 1/12 at 100.00 | N/R | 840,760 |
22,010 | | 5.375%, 1/01/40 – AMBAC Insured (5) | 1/11 at 100.00 | N/R | 4,624,961 |
Nuveen Investments 21
| | |
| | Nuveen Municipal Value Fund, Inc. (continued) |
NUV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Nevada (continued) | | | |
$ 2,500 | | Reno, Nevada, Health Facilities Revenue Bonds, Catholic Healthcare West, Series 2007A, | 7/17 at 100.00 | AA+ | $ 2,983,300 |
| | | Trust 2634, 18.114%, 7/01/31 – BHAC Insured (IF) | | | |
1,500 | | Sparks Tourism Improvement District 1, Legends at Sparks Marina, Nevada, Senior Sales Tax | 6/18 at 100.00 | Ba3 | 1,448,970 |
| | | Revenue Bonds Series 2008A, 6.750%, 6/15/28 | | | |
63,605 | | Total Nevada | | | 20,191,255 |
| | | New Hampshire – 0.1% | | | |
1,500 | | New Hampshire Business Finance Authority, Revenue Bonds, Elliot Hospital Obligated Group | 10/19 at 100.00 | BBB+ | 1,554,630 |
| | | Issue, Series 2009A, 6.125%, 10/01/39 | | | |
| | | New Jersey – 5.1% | | | |
23,625 | | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental | 3/11 at 100.50 | B | 23,278,421 |
| | | Airlines Inc., Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax) | | | |
9,000 | | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental | 11/10 at 101.00 | B | 9,059,670 |
| | | Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) | | | |
4,740 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Barnabas Health | 1/17 at 41.49 | BBB– | 876,236 |
| | | Care System, Series 2006A, 0.000%, 7/01/34 | | | |
7,500 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C, | 6/13 at 100.00 | AAA | 8,450,175 |
| | | 5.500%, 6/15/24 (Pre-refunded 6/15/13) | | | |
| | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: | | | |
30,000 | | 0.000%, 12/15/31 – FGIC Insured | No Opt. Call | AA– | 9,201,000 |
27,000 | | 0.000%, 12/15/32 – AGM Insured | No Opt. Call | AA+ | 8,063,010 |
310 | | New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, 6.500%, 1/01/16 – NPFG Insured | No Opt. Call | A+ | 376,173 |
| | | New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: | | | |
105 | | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | A+ (4) | 131,477 |
1,490 | | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | A+ (4) | 1,704,411 |
27,185 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, | 6/12 at 100.00 | AAA | 29,641,980 |
| | | Series 2002, 6.125%, 6/01/42 (Pre-refunded 6/01/12) | | | |
7,165 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, | 6/13 at 100.00 | AAA | 8,191,745 |
| | | Series 2003, 6.250%, 6/01/43 (Pre-refunded 6/01/13) | | | |
138,120 | | Total New Jersey | | | 98,974,298 |
| | | New Mexico – 0.6% | | | |
1,500 | | University of New Mexico, Revenue Refunding Bonds, Series 1992A, 6.000%, 6/01/21 | No Opt. Call | AA | 1,800,075 |
9,600 | | University of New Mexico, Subordinate Lien Revenue Refunding and Improvement Bonds, Series | 6/12 at 100.00 | AA | 9,733,440 |
| | | 2002A, 5.000%, 6/01/32 | | | |
11,100 | | Total New Mexico | | | 11,533,515 |
| | | New York – 7.0% | | | |
8,500 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Kaleida | 2/14 at 100.00 | AAA | 8,941,065 |
| | | Health, Series 2004, 5.050%, 2/15/25 | | | |
15,500 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A, | 9/11 at 100.00 | AAA | 16,164,485 |
| | | 5.375%, 9/01/25 (Pre-refunded 9/01/11) | | | |
2,000 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006B, | 6/16 at 100.00 | A– | 2,065,820 |
| | | 5.000%, 12/01/35 | | | |
1,510 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vaughn | 12/16 at 100.00 | BB+ | 1,314,304 |
| | | College of Aeronautics, Series 2006B, 5.000%, 12/01/31 | | | |
10,000 | | New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, JFK | 8/12 at 101.00 | B– | 10,406,100 |
| | | Airport – American Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) | | | |
5,500 | | New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue | 12/14 at 100.00 | AAA | 5,758,940 |
| | | Bonds, Series 2004B, 5.000%, 6/15/36 – AGM Insured (UB) | | | |
| 5 | | New York City, New York, General Obligation Bonds, Fiscal Series 1997E, 6.000%, 8/01/16 | 1/11 at 100.00 | AA | 5,022 |
| | | New York City, New York, General Obligation Bonds, Fiscal Series 2003J: | | | |
1,450 | | 5.500%, 6/01/21 (Pre-refunded 6/01/13) | 6/13 at 100.00 | AA (4) | 1,633,121 |
385 | | 5.500%, 6/01/22 (Pre-refunded 6/01/13) | 6/13 at 100.00 | AA (4) | 433,622 |
22 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | New York (continued) | | | |
| | | New York City, New York, General Obligation Bonds, Fiscal Series 2004C: | | | |
$ 8,000 | | 5.250%, 8/15/24 | 8/14 at 100.00 | AA | $ 8,890,400 |
6,000 | | 5.250%, 8/15/25 | 8/14 at 100.00 | AA | 6,632,760 |
10,000 | | New York Dorm Authority, FHA Insured Mortgage Hospital Revenue Bonds, Kaleida Health, Series | 8/16 at 100.00 | AAA | 9,558,400 |
| | | 2006, 4.700%, 2/15/35 | | | |
| | | New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and | | | |
| | | State Contingency Contract-Backed Bonds, Series 2003A-1: | | | |
10,000 | | 5.500%, 6/01/17 | 6/11 at 100.00 | AA– | 10,234,800 |
11,190 | | 5.500%, 6/01/18 | 6/12 at 100.00 | AA– | 11,844,167 |
28,810 | | 5.500%, 6/01/19 | 6/13 at 100.00 | AA– | 31,463,401 |
2,500 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air | No Opt. Call | A | 2,506,325 |
| | | Terminal LLC, Sixth Series 1997, 6.250%, 12/01/10 – NPFG Insured (Alternative Minimum Tax) | | | |
8,500 | | Power Authority of the State of New York, General Revenue Bonds, Series 2000A, 5.250%, 11/15/40 | 11/10 at 100.00 | Aa2 | 8,528,220 |
129,850 | | Total New York | | | 136,380,952 |
| | | North Carolina – 0.6% | | | |
1,500 | | Charlotte, North Carolina, Certificates of Participation, Governmental Facilities Projects, | 6/13 at 100.00 | AA+ | 1,539,645 |
| | | Series 2003G, 5.000%, 6/01/33 | | | |
3,000 | | Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue | 1/18 at 100.00 | AA– | 3,080,130 |
| | | Bonds, Series 2008A, 5.000%, 1/15/47 | | | |
2,500 | | North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series | 1/13 at 100.00 | A– | 2,562,525 |
| | | 2003D, 5.125%, 1/01/26 | | | |
1,500 | | North Carolina Infrastructure Finance Corporation, Certificates of Participation, Correctional | 2/14 at 100.00 | AA+ | 1,657,140 |
| | | Facilities, Series 2004A, 5.000%, 2/01/20 | | | |
2,000 | | North Carolina Medical Care Commission, Health System Revenue Bonds, Mission St. Joseph’s | 10/17 at 100.00 | AA | 1,991,880 |
| | | Health System, Series 2007, 4.500%, 10/01/31 | | | |
10,500 | | Total North Carolina | | | 10,831,320 |
| | | Ohio – 2.6% | | | |
10,000 | | American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project | 2/18 at 100.00 | A1 | 10,379,400 |
| | | Series 2008A, 5.250%, 2/15/43 | | | |
| | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue | | | |
| | | Bonds, Senior Lien, Series 2007A-2: | | | |
2,860 | | 5.375%, 6/01/24 | 6/17 at 100.00 | BBB | 2,558,098 |
475 | | 5.125%, 6/01/24 | 6/17 at 100.00 | BBB | 415,065 |
5,500 | | 5.875%, 6/01/30 | 6/17 at 100.00 | BBB | 4,634,190 |
17,165 | | 5.750%, 6/01/34 | 6/17 at 100.00 | BBB | 13,688,744 |
3,100 | | 6.000%, 6/01/42 | 6/17 at 100.00 | BBB | 2,439,235 |
11,785 | | 5.875%, 6/01/47 | 6/17 at 100.00 | BBB | 9,018,589 |
9,150 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue | 6/22 at 100.00 | Baa3 | 6,350,924 |
| | | Bonds, Senior Lien, Series 2007A-3, 0.000%, 6/01/37 | | | |
60,035 | | Total Ohio | | | 49,484,245 |
| | | Oklahoma – 0.8% | | | |
9,955 | | Oklahoma Development Finance Authority, Revenue Bonds, St. John Health System, Series 2004, | 2/14 at 100.00 | A | 10,054,849 |
| | | 5.125%, 2/15/31 | | | |
5,045 | | Oklahoma Development Finance Authority, Revenue Bonds, St. John Health System, Series 2004, | 2/14 at 100.00 | AAA | 5,749,080 |
| | | 5.125%, 2/15/31 (Pre-refunded 2/15/14) | | | |
15,000 | | Total Oklahoma | | | 15,803,929 |
| | | Oregon – 0.3% | | | |
2,600 | | Clackamas County Hospital Facility Authority, Oregon, Revenue Refunding Bonds, Legacy Health | 5/11 at 101.00 | A+ | 2,650,648 |
| | | System, Series 2001, 5.250%, 5/01/21 | | | |
2,860 | | Oregon State Facilities Authority, Revenue Bonds, Willamette University, Series 2007A, | 10/17 at 100.00 | A | 2,889,887 |
| | | 5.000%, 10/01/32 | | | |
5,460 | | Total Oregon | | | 5,540,535 |
| | | Pennsylvania – 1.8% | | | |
10,300 | | Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn | 11/17 at 100.00 | BB– | 8,216,104 |
| | | Allegheny Health System, Series 2007A, 5.000%, 11/15/28 | | | |
Nuveen Investments 23
| | |
| | Nuveen Municipal Value Fund, Inc. (continued) |
NUV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Pennsylvania (continued) | | | |
$ 6,500 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2004A, 5.500%, 12/01/31 – | 12/14 at 100.00 | Aa3 | $ 7,025,525 |
| | | AMBAC Insured | | | |
8,000 | | Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2004D, 5.125%, | 6/14 at 100.00 | Aa2 (4) | 9,164,960 |
| | | 6/01/34 (Pre-refunded 6/01/14) – FGIC Insured | | | |
10,075 | | State Public School Building Authority, Pennsylvania, Lease Revenue Bonds, Philadelphia School | 6/13 at 100.00 | AAA | 11,179,220 |
| | | District, Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) – AGM Insured | | | |
34,875 | | Total Pennsylvania | | | 35,585,809 |
| | | Puerto Rico – 2.6% | | | |
8,340 | | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, | 7/18 at 100.00 | Baa1 | 8,914,625 |
| | | 6.000%, 7/01/44 | | | |
13,000 | | Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, | No Opt. Call | A3 | 13,450,970 |
| | | 7/01/39 – FGIC Insured | | | |
5,450 | | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities | 12/10 at 101.00 | Baa3 | 5,487,714 |
| | | Financing Authority, Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%, 6/01/26 | | | |
| | | (Alternative Minimum Tax) | | | |
11,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series | 8/26 at 100.00 | A+ | 9,381,900 |
| | | 2009A, 0.000%, 8/01/32 | | | |
4,310 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series | 8/20 at 100.00 | A+ | 4,507,226 |
| | | 2010C, 5.250%, 8/01/41 | | | |
70,300 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, | No Opt. Call | Aa2 | 4,514,666 |
| | | 8/01/54 – AMBAC Insured | | | |
5,000 | | Puerto Rico, General Obligation Bonds, Series 2000B, 5.625%, 7/01/19 – NPFG Insured | 1/11 at 100.00 | A | 5,006,200 |
117,400 | | Total Puerto Rico | | | 51,263,301 |
| | | Rhode Island – 1.3% | | | |
6,250 | | Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, | 11/10 at 100.00 | A | 6,251,813 |
| | | Lifespan Obligated Group, Series 1996, 5.250%, 5/15/26 – NPFG Insured | | | |
19,195 | | Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, | 6/12 at 100.00 | BBB | 19,216,497 |
| | | Series 2002A, 6.250%, 6/01/42 | | | |
25,445 | | Total Rhode Island | | | 25,468,310 |
| | | South Carolina – 3.0% | | | |
7,000 | | Dorchester County School District 2, South Carolina, Installment Purchase Revenue Bonds, | 12/14 at 100.00 | AA– | 7,353,710 |
| | | GROWTH, Series 2004, 5.250%, 12/01/29 | | | |
3,000 | | Myrtle Beach, South Carolina, Hospitality and Accommodation Fee Revenue Bonds, Series 2004A, | 6/14 at 100.00 | A+ | 3,016,980 |
| | | 5.000%, 6/01/36 – FGIC Insured | | | |
11,550 | | Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 2004A-2, | No Opt. Call | AA+ | 4,839,681 |
| | | 0.000%, 1/01/28 – AMBAC Insured | | | |
8,475 | | Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds, Series | 1/11 at 100.00 | A– | 8,481,611 |
| | | 1986, 5.000%, 1/01/25 | | | |
4,320 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, | 11/12 at 100.00 | A3 (4) | 4,759,042 |
| | | Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12) | | | |
16,430 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, | 11/12 at 100.00 | A– | 16,661,826 |
| | | Bon Secours Health System Inc., Series 2002B, 5.625%, 11/15/30 | | | |
8,000 | | South Carolina JOBS Economic Development Authority, Hospital Revenue Bonds, Palmetto Health | 12/10 at 102.00 | Baa2 (4) | 8,232,720 |
| | | Alliance, Series 2000A, 7.375%, 12/15/21 (Pre-refunded 12/15/10) | | | |
4,215 | | Spartanburg Sanitary Sewer District, South Carolina, Sewer System Revenue Bonds, Series 2003B, | 3/14 at 100.00 | AA– | 4,287,245 |
| | | 5.000%, 3/01/38 – NPFG Insured | | | |
62,990 | | Total South Carolina | | | 57,632,815 |
| | | Tennessee – 1.1% | | | |
10,300 | | Jackson, Tennessee, Hospital Revenue Refunding Bonds, Jackson-Madison County General Hospital | 4/18 at 100.00 | A+ | 10,572,640 |
| | | Project, Series 2008, 5.625%, 4/01/38 | | | |
24 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Tennessee (continued) | | | |
| | | Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue | | | |
| | | Bonds, Baptist Health System of East Tennessee Inc., Series 2002: | | | |
$ 3,000 | | 6.375%, 4/15/22 | 4/12 at 101.00 | A1 | $ 3,224,430 |
2,605 | | 6.500%, 4/15/31 | 4/12 at 101.00 | A1 | 2,775,940 |
2,000 | | Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds, | 3/13 at 100.00 | N/R | 1,924,980 |
| | | Wellmont Health System, Refunding Series 2006A, 5.440%, 9/01/32 | | | |
3,000 | | Sullivan County Health Educational and Housing Facilities Board, Tennessee, Revenue Bonds, | 9/16 at 100.00 | BBB+ | 2,949,780 |
| | | Wellmont Health System, Series 2006C, 5.250%, 9/01/36 | | | |
20,905 | | Total Tennessee | | | 21,447,770 |
| | | Texas – 7.9% | | | |
5,000 | | Alliance Airport Authority, Texas, Special Facilities Revenue Bonds, American Airlines Inc., | 12/12 at 100.00 | CCC+ | 3,846,600 |
| | | Series 2007, 5.250%, 12/01/29 (Alternative Minimum Tax) | | | |
2,000 | | Austin Convention Enterprises Inc., Texas, Convention Center Hotel Revenue Bonds, Second Tier | 1/17 at 100.00 | BB | 1,940,080 |
| | | Series 2006B, 5.750%, 1/01/34 | | | |
5,110 | | Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds, TXU Electric | 4/13 at 101.00 | Ca | 1,895,452 |
| | | Company, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax) | | | |
| | | Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue | | | |
| | | Bonds, Series 2005: | | | |
4,000 | | 5.000%, 1/01/35 – FGIC Insured | 1/15 at 100.00 | A | 3,847,760 |
31,550 | | 5.000%, 1/01/45 – FGIC Insured | 1/15 at 100.00 | A | 29,729,250 |
11,850 | | Harris County-Houston Sports Authority, Texas, Junior Lien Revenue Bonds, Series 2001H, | No Opt. Call | A | 3,422,991 |
| | | 0.000%, 11/15/27 – NPFG Insured | | | |
2,950 | | Harris County-Houston Sports Authority, Texas, Senior Lien Revenue Bonds, Series 2001G, | 11/11 at 100.00 | A | 2,901,443 |
| | | 5.250%, 11/15/30 – NPFG Insured | | | |
13,270 | | Harris County-Houston Sports Authority, Texas, Third Lien Revenue Bonds, Series 2004-A3., | 11/24 at 59.10 | A | 2,368,297 |
| | | 0.000%, 11/15/33 – NPFG Insured | | | |
24,660 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment | No Opt. Call | A2 | 8,429,528 |
| | | Project, Series 2001B, 0.000%, 9/01/29 – AMBAC Insured | | | |
10,045 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2000A, 5.875%, 7/01/16 – | 1/11 at 100.00 | AA+ | 10,283,368 |
| | | AGM Insured (Alternative Minimum Tax) | | | |
3,470 | | Irving Independent School District, Texas, Unlimited Tax School Building Bonds, Series 1997, | No Opt. Call | AAA | 3,466,079 |
| | | 0.000%, 2/15/11 | | | |
5,000 | | Kerrville Health Facilities Development Corporation, Texas, Revenue Bonds, Sid Peterson | No Opt. Call | BBB– | 4,766,100 |
| | | Memorial Hospital Project, Series 2005, 5.375%, 8/15/35 | | | |
22,060 | | Leander Independent School District, Williamson and Travis Counties, Texas, Unlimited Tax | 1/11 at 34.37 | AAA | 7,512,312 |
| | | School Building and Refunding Bonds, Series 2000, 0.000%, 8/15/27 | | | |
| | | North Texas Thruway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation | | | |
| | | Series 2008I: | | | |
30,000 | | 0.000%, 1/01/42 – AGC Insured | 1/25 at 100.00 | AA+ | 25,373,100 |
5,220 | | 0.000%, 1/01/43 | 1/25 at 100.00 | A2 | 4,284,418 |
15,450 | | North Texas Thruway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation | No Opt. Call | AA+ | 4,090,233 |
| | | Series 2008, 0.000%, 1/01/36 – AGC Insured | | | |
4,650 | | Port Corpus Christi Industrial Development Corporation, Texas, Revenue Refunding Bonds, Valero | 4/11 at 100.00 | BBB | 4,650,047 |
| | | Refining and Marketing Company, Series 1997A, 5.400%, 4/01/18 | | | |
5,000 | | Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, | 12/13 at 100.00 | Baa2 | 5,012,200 |
| | | Series 2004, 6.000%, 12/01/34 | | | |
2,000 | | Sabine River Authority, Texas, Pollution Control Revenue Refunding Bonds, TXU Electric | 7/13 at 101.00 | CCC | 701,700 |
| | | Company, Series 2003A, 5.800%, 7/01/22 | | | |
3,000 | | San Antonio, Texas, Water System Revenue Bonds, Series 2005, 4.750%, 5/15/37 – NPFG Insured | 5/15 at 100.00 | Aa1 | 3,055,740 |
11,585 | | Tarrant County Cultural & Educational Facilities Financing Corporation, Texas, Revenue Bonds, | 2/17 at 100.00 | AA– | 11,707,569 |
| | | Texas Health Resources Trust 1201, 9.031%, 2/15/30 (IF) | | | |
4,810 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue | 8/20 at 100.00 | A1 | 4,893,405 |
| | | Bonds, Scott & White HealthCare Project, Series 2010, 5.500%, 8/15/45 | | | |
5,000 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Revenue Refunding | 1/19 at 100.00 | AA+ | 5,573,950 |
| | | Bonds, Christus Health, Series 2008, 6.500%, 7/01/37 – AGC Insured | | | |
227,680 | | Total Texas | | | 153,751,622 |
Nuveen Investments 25
| | |
| | Nuveen Municipal Value Fund, Inc. (continued) |
NUV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Utah – 0.4% | | | |
$ 3,260 | | Eagle Mountain, Utah, Gas and Electric Revenue Bonds, Series 2005, 5.000%, 6/01/24 – | 6/15 at 100.00 | N/R | $ 3,291,784 |
| | | RAAI Insured | | | |
390 | | Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1998G-2, Class I, 5.200%, | 1/11 at 100.75 | AAA | 392,172 |
| | | 7/01/30 (Alternative Minimum Tax) | | | |
3,700 | | Utah State Board of Regents, Utah State University, Revenue Bonds, Series 2004, 5.000%, | 4/14 at 100.00 | AA (4) | 4,187,993 |
| | | 4/01/35 (Pre-refunded 4/01/14) – NPFG Insured | | | |
7,350 | | Total Utah | | | 7,871,949 |
| | | Virgin Islands – 0.1% | | | |
2,500 | | Virgin Islands Public Finance Authority, Revenue Bonds, Refinery Project – Hovensa LLC, Series | 1/14 at 100.00 | Baa3 | 2,535,974 |
| | | 2003, 6.125%, 7/01/22 (Alternative Minimum Tax) | | | |
| | | Virginia – 0.7% | | | |
3,000 | | Fairfax County Economic Development Authority, Virginia, Residential Care Facilities Mortgage | 10/17 at 100.00 | N/R | 2,978,880 |
| | | Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42 | | | |
4,125 | | Metropolitan Washington D.C. Airports Authority, Airport System Revenue Bonds, Series 2002A, | 10/12 at 100.00 | AA– | 4,459,578 |
| | | 5.750%, 10/01/16 – FGIC Insured (Alternative Minimum Tax) | | | |
10,000 | | Metropolitan Washington D.C. Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, | 10/28 at 100.00 | BBB+ | 6,458,400 |
| | | Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44 | | | |
17,125 | | Total Virginia | | | 13,896,858 |
| | | Washington – 4.1% | | | |
6,400 | | Cowlitz County Public Utilities District 1, Washington, Electric Production Revenue Bonds, | 9/14 at 100.00 | A1 | 6,477,504 |
| | | Series 2004, 5.000%, 9/01/34 – FGIC Insured | | | |
12,500 | | Energy Northwest, Washington, Electric Revenue Refunding Bonds, Columbia Generating Station – | 7/12 at 100.00 | Aaa | 13,587,250 |
| | | Nuclear Project 2, Series 2002B, 6.000%, 7/01/18 – AMBAC Insured | | | |
4,000 | | Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear Project 3, Series | 7/13 at 100.00 | Aaa | 4,459,880 |
| | | 2003A, 5.500%, 7/01/17 – SYNCORA GTY Insured | | | |
8,200 | | Washington Public Power Supply System, Revenue Refunding Bonds, Nuclear Project 3, Series | No Opt. Call | Aaa | 7,762,120 |
| | | 1989B, 0.000%, 7/01/14 | | | |
2,500 | | Washington State Health Care Facilities Authority, Revenue Bonds, Northwest Hospital and | No Opt. Call | N/R | 2,124,700 |
| | | Medical Center of Seattle, Series 2007, 5.700%, 12/01/32 | | | |
5,000 | | Washington State Health Care Facilities Authority, Revenue Bonds, Providence Health Care | 10/16 at 100.00 | AA | 5,039,750 |
| | | Services, Series 2006A, 4.625%, 10/01/34 – FGIC Insured | | | |
2,815 | | Washington State Health Care Facilities Authority, Revenue Bonds, Virginia Mason Medical | 8/17 at 100.00 | A | 2,732,352 |
| | | Center, Series 2007B, 5.000%, 2/15/27 – NPFG Insured | | | |
7,685 | | Washington State Housing Finance Commission, Single Family Program Bonds, 2006 Series 3A, | 12/15 at 100.00 | Aaa | 7,777,527 |
| | | 5.000%, 12/01/37 (Alternative Minimum Tax) | | | |
19,240 | | Washington State Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, | 6/13 at 100.00 | BBB | 19,541,490 |
| | | Series 2002, 6.625%, 6/01/32 | | | |
| | | Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2002-03C: | | | |
9,000 | | 0.000%, 6/01/29 – NPFG Insured | No Opt. Call | AA+ | 3,998,790 |
16,195 | | 0.000%, 6/01/30 – NPFG Insured | No Opt. Call | AA+ | 6,766,757 |
93,535 | | Total Washington | | | 80,268,120 |
| | | Wisconsin – 2.4% | | | |
| | | Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed | | | |
| | | Bonds, Series 2002: | | | |
4,365 | | 6.125%, 6/01/27 (Pre-refunded 6/01/12) | 6/12 at 100.00 | AAA | 4,650,078 |
14,750 | | 6.375%, 6/01/32 (Pre-refunded 6/01/12) | 6/12 at 100.00 | AAA | 16,119,095 |
6,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of | 9/13 at 100.00 | BBB+ (4) | 6,838,020 |
| | | Christian Charity Healthcare Ministry, Series 2003A, 5.875%, 9/01/33 (Pre-refunded 9/01/13) | | | |
1,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, | 2/16 at 100.00 | BBB+ | 1,048,690 |
| | | Series 2006A, 5.000%, 2/15/17 | | | |
10,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, SSM Healthcare System, | 6/20 at 100.00 | AA– | 10,456,900 |
| | | Series 2010, 5.000%, 6/01/30 | | | |
26 Nuveen Investments
| | | | | |
Principal | | Optional Call | | |
Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Wisconsin (continued) | | | |
$ 3,750 | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan | 2/12 at 101.00 | AAA | $ 4,039,913 |
| | Services Inc., Series 2002, 5.750%, 8/15/30 (Pre-refunded 2/15/12) | | | |
2,590 | Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds, Series | 9/14 at 100.00 | AA | 2,595,671 |
| | 2005C, 4.875%, 3/01/36 (Alternative Minimum Tax) | | | |
42,455 | Total Wisconsin | | | 45,748,367 |
| | Wyoming – 0.1% | | | |
2,035 | Campbell County, Wyoming Solid Waste Facilities Revenue Bonds, Basin Electric Power | 7/19 at 100.00 | A+ | 2,249,692 |
| | Cooperative – Dry Fork Station Facilities, Series 2009A, 5.750%, 7/15/39 | | | |
$ 2,430,349 | Total Investments (cost $1,891,176,876) – 100.7% | | | 1,957,938,961 |
| | Floating Rate Obligations – (2.0)% | | | (38,250,000) |
| | Other Assets Less Liabilities – 1.3% | | | 24,405,486 |
| | Net Assets – 100% | | | $ 1,944,094,447 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| (ETM) | Escrowed to maturity. |
| (IF) | Inverse floating rate investment. |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
Nuveen Investments 27
| | | | | | |
| | | Nuveen Municipal Value Fund 2 | | | |
NUW | | Portfolio of Investments | | |
| | | | October 31, 2010 | |
| | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Alaska – 0.1% | | | |
$ 155 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, | 6/14 at 100.00 | Baa3 | $ 108,939 |
| | | Series 2006A, 5.000%, 6/01/46 | | | |
| | | Arizona – 3.4% | | | |
4,000 | | Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Bonds, El | 2/19 at 100.00 | BBB | 4,605,160 |
| | | Paso Electric Company, Refunding Series 2009A, 7.250%, 2/01/40 | | | |
2,995 | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc | No Opt. Call | A | 2,829,466 |
| | | Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 | | | |
6,995 | | Total Arizona | | | 7,434,626 |
| | | California – 10.4% | | | |
11,000 | | Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, | No Opt. Call | AA+ | 1,697,190 |
| | | Capital Appreciation Series 2009B, 0.000%, 8/01/41 – AGC Insured | | | |
2,500 | | California State Public Works Board, Lease Revenue Bonds, Department of General Services | 4/19 at 100.00 | A2 | 2,704,525 |
| | | Buildings 8 & 9, Series 2009A, 6.250%, 4/01/34 | | | |
500 | | California, General Obligation Bonds, Tender Option Bond Trust 3162, 19.445%, 3/01/18 – | No Opt. Call | AA+ | 622,020 |
| | | AGM Insured (IF) | | | |
1,800 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | 6/15 at 100.00 | A2 | 1,709,262 |
| | | Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 | | | |
2,400 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | 6/17 at 100.00 | BBB | 1,986,456 |
| | | Bonds, Series 2007A-1, 5.000%, 6/01/33 | | | |
450 | | M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series | No Opt. Call | A | 528,044 |
| | | 2009A, 6.500%, 11/01/39 | | | |
| | | Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A: | | | |
9,320 | | 0.000%, 8/01/33 – AGC Insured | No Opt. Call | AA+ | 2,379,862 |
10,200 | | 0.000%, 8/01/38 – AGC Insured | 8/29 at 100.00 | AA+ | 6,718,332 |
| | | Poway Unified School District, San Diego County, California, School Facilities Improvement | | | |
| | | District 2007-1 General Obligation Bonds, Series 2009A: | | | |
8,000 | | 0.000%, 8/01/32 | No Opt. Call | Aa2 | 2,179,600 |
8,000 | | 0.000%, 8/01/33 | No Opt. Call | Aa2 | 2,040,960 |
54,170 | | Total California | | | 22,566,251 |
| | | Colorado – 5.1% | | | |
5,000 | | Denver City and County, Colorado, Airport System Revenue Bonds, Series 2005A, 5.000%, | 11/15 at 100.00 | A+ | 5,261,250 |
| | | 11/15/25 – SYNCORA GTY Insured | | | |
3,605 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/27 – | 9/20 at 67.94 | A | 1,245,924 |
| | | NPFG Insured | | | |
4,000 | | Park Creek Metropolitan District, Colorado, Senior Property Tax Supported Revenue Bonds, | No Opt. Call | AA+ | 4,523,960 |
| | | Series 2009, 6.375%, 12/01/37 – AGC Insured | | | |
12,605 | | Total Colorado | | | 11,031,134 |
| | | Florida – 8.5% | | | |
9,500 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2009A, | 10/19 at 100.00 | A2 | 9,890,165 |
| | | 5.500%, 10/01/41 | | | |
| | | Miami-Dade County, Florida, General Obligation Bonds, Build Better Communities Program, | | | |
| | | Series 2009-B1: | | | |
2,500 | | 6.000%, 7/01/38 | 7/18 at 100.00 | Aa2 | 2,813,325 |
2,000 | | 5.625%, 7/01/38 | 7/18 at 100.00 | Aa2 | 2,156,580 |
4,500 | | Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007, | 5/18 at 100.00 | N/R | 3,557,790 |
| | | 6.450%, 5/01/23 | | | |
18,500 | | Total Florida | | | 18,417,860 |
28 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Georgia – 0.8% | | | |
$ 500 | | Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 2008A, Remarketed, | 1/19 at 100.00 | N/R | $ 524,470 |
| | | 7.500%, 1/01/31 | | | |
1,000 | | Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air | 6/20 at 100.00 | CCC+ | 1,160,150 |
| | | Lines, Inc. Project, Series 2009A, 8.750%, 6/01/29 | | | |
1,500 | | Total Georgia | | | 1,684,620 |
| | | Illinois – 11.7% | | | |
5,000 | | Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2009A, | 8/19 at 100.00 | AA+ | 5,585,550 |
| | | 6.000%, 8/15/39 | | | |
3,500 | | Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2009A, | 5/19 at 100.00 | A | 3,957,380 |
| | | 7.125%, 11/15/37 | | | |
5,000 | | Illinois Finance Authority, Revenue Bonds, Rush University Medical Center Obligated Group, | 11/18 at 100.00 | A– | 5,709,950 |
| | | Series 2009A, 7.250%, 11/01/38 | | | |
3,990 | | Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., | 5/17 at 100.00 | Baa3 | 3,798,680 |
| | | Refunding Series 2007A, 5.250%, 5/01/34 | | | |
28,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion | No Opt. Call | AAA | 6,231,680 |
| | | Project, Series 2002A, 0.000%, 12/15/35 – AGM Insured | | | |
45,490 | | Total Illinois | | | 25,283,240 |
| | | Indiana – 5.3% | | | |
5,000 | | Indiana Finance Authority, Hospital Revenue Bonds, Deaconess Hospital Obligated Group, Series | 3/19 at 100.00 | A | 5,529,250 |
| | | 2009A, 6.750%, 3/01/39 | | | |
3,650 | | Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest | 3/17 at 100.00 | BBB | 3,678,835 |
| | | Indiana, Series 2007, 5.500%, 3/01/37 | | | |
2,000 | | Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2009B, | 1/19 at 100.00 | A+ | 2,203,100 |
| | | 6.000%, 1/01/39 | | | |
10,650 | | Total Indiana | | | 11,411,185 |
| | | Iowa – 1.1% | | | |
3,025 | | Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, | 6/15 at 100.00 | BBB | 2,504,035 |
| | | 5.375%, 6/01/38 | | | |
| | | Louisiana – 7.4% | | | |
5,000 | | Louisiana Citizens Property Insurance Corporation, Assessment Revenue Bonds, Series 2006C-3, | 6/18 at 100.00 | AA+ | 5,640,150 |
| | | 6.125%, 6/01/25 – AGC Insured | | | |
| | | Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, | | | |
| | | Series 2007A: | | | |
7,000 | | 5.375%, 5/15/43 | 5/17 at 100.00 | Baa1 | 6,899,200 |
275 | | 5.500%, 5/15/47 | 5/17 at 100.00 | Baa1 | 272,297 |
3,255 | | St John Baptist Parish, Louisiana, Revenue Bonds, Marathon Oil Corporation, Series 2007A, | 6/17 at 100.00 | BBB+ | 3,241,720 |
| | | 5.125%, 6/01/37 | | | |
15,530 | | Total Louisiana | | | 16,053,367 |
| | | Maine – 1.8% | | | |
3,335 | | Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Bowdoin College, | 7/19 at 100.00 | Aa2 | 3,944,805 |
| | | Tender Option Bond Trust 2009-5B, 12.822%, 7/01/39 (IF) | | | |
| | | Massachusetts – 0.6% | | | |
1,000 | | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Tender Option Bond | 8/19 at 100.00 | AAA | 1,236,820 |
| | | Trust 2989, 13.035%, 8/01/38 (IF) | | | |
| | | Michigan – 2.3% | | | |
5,000 | | Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, | 7/15 at 100.00 | A1 | 4,936,800 |
| | | 7/01/35 – NPFG Insured | | | |
Nuveen Investments 29
| | |
| | Nuveen Municipal Value Fund 2 (continued) |
NUW | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Nevada – 4.3% | | | |
| | | Clark County, Nevada, Airport Revenue Bonds, Tender Option Bond Trust Series 11823: | | | |
$ 750 | | 20.005%, 1/01/18 (IF) | No Opt. Call | Aa3 | $ 979,980 |
1,250 | | 20.005%, 1/01/36 (IF) | 1/20 at 100.00 | Aa3 | 1,633,300 |
250 | | Clark County, Nevada, Senior Lien Airport Revenue Bonds, Series 2005A, 5.000%, 7/01/40 – | No Opt. Call | Aa2 | 251,950 |
| | | AMBAC Insured | | | |
5,415 | | Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, | 6/19 at 100.00 | A | 6,420,511 |
| | | 8.000%, 6/15/30 | | | |
7,665 | | Total Nevada | | | 9,285,741 |
| | | New Jersey – 2.8% | | | |
| | | New Jersey Educational Facilities Authority, Revenue Refunding Bonds, University of Medicine | | | |
| | | and Dentistry of New Jersey, Series 2009B: | | | |
2,135 | | 7.125%, 12/01/23 | 6/19 at 100.00 | Baa1 | 2,530,146 |
3,000 | | 7.500%, 12/01/32 | 6/19 at 100.00 | Baa1 | 3,489,840 |
5,135 | | Total New Jersey | | | 6,019,986 |
| | | New York – 1.5% | | | |
3,000 | | Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series | No Opt. Call | A1 | 3,270,270 |
| | | 2007, 5.500%, 10/01/37 | | | |
| | | North Carolina – 1.5% | | | |
3,000 | | North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, | 1/13 at 100.00 | A | 3,226,770 |
| | | 1/01/19 – NPFG Insured | | | |
| | | Ohio – 5.8% | | | |
5,000 | | American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project | 2/19 at 100.00 | AA+ | 5,449,600 |
| | | Series 2009A, 5.750%, 2/15/39 – AGC Insured | | | |
5,885 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue | 6/17 at 100.00 | BBB | 4,944,989 |
| | | Bonds, Senior Lien, Series 2007A-2, 6.500%, 6/01/47 | | | |
2,000 | | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University | 1/15 at 100.00 | A | 2,146,920 |
| | | Hospitals Health System, Series 2009, 6.750%, 1/15/39 | | | |
12,885 | | Total Ohio | | | 12,541,509 |
| | | Puerto Rico – 5.1% | | | |
4,390 | | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, | 7/18 at 100.00 | Baa1 | 4,692,471 |
| | | 6.000%, 7/01/44 | | | |
3,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series | 8/19 at 100.00 | A+ | 3,354,690 |
| | | 2009A, 6.000%, 8/01/42 | | | |
2,500 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Tender Option Bonds | No Opt. Call | Aa2 | 2,943,300 |
| | | Trust 11851, 18.236%, 2/01/16 (IF) | | | |
9,890 | | Total Puerto Rico | | | 10,990,461 |
| | | Rhode Island – 3.1% | | | |
3,000 | | Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, | 5/19 at 100.00 | A– | 3,384,060 |
| | | Lifespan Obligated Group Issue, Series 2009A, 7.000%, 5/15/39 | | | |
3,240 | | Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, | 6/12 at 100.00 | BBB | 3,259,958 |
| | | Series 2002A, 6.125%, 6/01/32 | | | |
6,240 | | Total Rhode Island | | | 6,644,018 |
| | | Texas – 6.1% | | | |
13,510 | | Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation | 8/17 at 27.35 | AAA | 2,626,344 |
| | | Bonds, Series 2008, 0.000%, 8/15/39 | | | |
5,300 | | North Texas Thruway Authority, Second Tier System Revenue Refunding Bonds, Series 2008, | 1/18 at 100.00 | A3 | 5,595,528 |
| | | 5.750%, 1/01/38 | | | |
5,000 | | Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, | 12/13 at 100.00 | Baa2 | 5,012,200 |
| | | Series 2004, 6.000%, 12/01/34 | | | |
23,810 | | Total Texas | | | 13,234,072 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Virgin Islands – 0.5% | | | |
$ 1,000 | | Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, | 10/19 at 100.00 | BBB | $ 1,127,590 |
| | | Series 2009A, 6.750%, 10/01/37 | | | |
| | | Virginia – 1.1% | | | |
2,000 | | Washington County Industrial Development Authority , Virginia, Hospital Revenue Bonds, | 1/19 at 100.00 | BBB+ | 2,312,760 |
| | | Mountain States Health Alliance, Series 2009C, 7.750%, 7/01/38 | | | |
| | | Wisconsin – 8.0% | | | |
160 | | Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed | 6/12 at 100.00 | AAA | 170,450 |
| | | Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) | | | |
5,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Healthcare Inc., | 4/13 at 100.00 | BBB+ | 5,146,100 |
| | | Series 2003, 6.400%, 4/15/33 | | | |
1,500 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, ProHealth Care, Inc. | 2/19 at 100.00 | A+ | 1,653,000 |
| | | Obligated Group, Series 2009, 6.625%, 2/15/39 | | | |
9,000 | | Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, | 5/19 at 100.00 | AA– | 10,255,588 |
| | | 6.000%, 5/01/36 | | | |
15,660 | | Total Wisconsin | | | 17,225,138 |
$ 268,240 | | Total Investments (cost $180,101,427) – 98.3% | | | 212,491,997 |
| | | Other Assets Less Liabilities – 1.7% | | | 3,653,864 |
| | | Net Assets – 100% | | | $ 216,145,861 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
Nuveen Investments 31
| | | | | | |
| | | Nuveen Municipal Income Fund, Inc. | | | |
NMI | | Portfolio of Investments | | |
| | | | October 31, 2010 | |
| | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Alabama – 2.4% | | | |
$ 1,000 | | Courtland Industrial Development Board, Alabama, Solid Waste Revenue Bonds, International | 6/15 at 100.00 | BBB | $ 991,880 |
| | | Paper Company Project, Series 2005A, 5.200%, 6/01/25 (Alternative Minimum Tax) | | | |
500 | | Jefferson County, Alabama, Limited Obligation School Warrants, Education Tax Revenue Bonds, | 1/14 at 100.00 | AA+ | 489,320 |
| | | Series 2004A, 5.250%, 1/01/23 – AGM Insured | | | |
690 | | Phenix City Industrial Development Board, Alabama, Environmental Improvement Revenue Bonds, | 5/12 at 100.00 | BBB | 680,526 |
| | | MeadWestvaco Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax) | | | |
2,190 | | Total Alabama | | | 2,161,726 |
| | | Arizona – 0.6% | | | |
500 | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc | No Opt. Call | A | 505,815 |
| | | Prepay Contract Obligations, Series 2007, 5.250%, 12/01/28 | | | |
| | | California – 18.5% | | | |
5,530 | | Adelanto School District, San Bernardino County, California, General Obligation Bonds, Series | No Opt. Call | A+ | 2,908,061 |
| | | 1997A, 0.000%, 9/01/22 – NPFG Insured | | | |
500 | | Bay Area Governments Association, California, BART SFO Extension, Airport Premium Fare Revenue | 8/12 at 100.00 | N/R | 440,200 |
| | | Bonds, Series 2002A, 5.000%, 8/01/32 – AMBAC Insured | | | |
| | | Brea Olinda Unified School District, California, General Obligation Bonds, Series 1999A: | | | |
2,000 | | 0.000%, 8/01/21 – FGIC Insured | No Opt. Call | Aa2 | 1,258,840 |
2,070 | | 0.000%, 8/01/22 – FGIC Insured | No Opt. Call | Aa2 | 1,231,174 |
2,120 | | 0.000%, 8/01/23 – FGIC Insured | No Opt. Call | Aa2 | 1,163,859 |
500 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los | 12/18 at 100.00 | Baa3 | 469,110 |
| | | Angeles County Securitization Corporation, Series 2006A, 5.250%, 6/01/21 | | | |
250 | | California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007E, | 2/17 at 100.00 | A | 216,820 |
| | | 4.800%, 8/01/37 (Alternative Minimum Tax) | | | |
3,000 | | California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, | 6/14 at 100.00 | A2 | 3,012,090 |
| | | Coalinga State Hospital, Series 2004A, 5.000%, 6/01/25 | | | |
375 | | California Statewide Communities Development Authority, Revenue Bonds, American Baptist Homes | 10/19 at 100.00 | BBB– | 382,238 |
| | | of the West, Series 2010, 6.000%, 10/01/29 | | | |
1,000 | | California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity | 7/15 at 100.00 | BBB | 882,430 |
| | | Health System, Series 2005A, 5.000%, 7/01/39 | | | |
2,000 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | 6/13 at 100.00 | AAA | 2,310,380 |
| | | Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) | | | |
1,000 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | 6/17 at 100.00 | BBB | 799,850 |
| | | Bonds, Series 2007A-1, 5.750%, 6/01/47 | | | |
500 | | Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, | 10/13 at 102.00 | N/R | 507,075 |
| | | Series 2003H, 6.375%, 10/01/33 | | | |
250 | | Madera County, California, Certificates of Participation, Children’s Hospital Central | 3/20 at 100.00 | A– | 251,723 |
| | | California, Series 2010, 5.375%, 3/15/36 | | | |
300 | | M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series | No Opt. Call | A | 369,285 |
| | | 2009A, 7.000%, 11/01/34 | | | |
250 | | Ridgecrest Redevelopment Agency, California, Ridgecrest Redevelopment Project Tax Allocation | 6/20 at 100.00 | A– | 255,090 |
| | | Bonds, Refunding Series 2010, 6.125%, 6/30/37 | | | |
21,645 | | Total California | | | 16,458,225 |
32 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Colorado – 6.2% | | | |
$ 700 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Douglas | 7/12 at 100.00 | BBB | $ 706,251 |
| | | County School District RE-1 – DCS Montessori School, Series 2002A, 6.000%, 7/15/22 | | | |
360 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, | 8/11 at 100.00 | AAA | 379,548 |
| | | Peak-to-Peak Charter School, Series 2001, 7.500%, 8/15/21 (Pre-refunded 8/15/11) | | | |
1,000 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Weld | 6/11 at 100.00 | N/R (4) | 1,040,850 |
| | | County School District 6 – Frontier Academy, Series 2001, 7.375%, 6/01/31 | | | |
| | | (Pre-refunded 6/01/11) | | | |
1,000 | | Colorado Health Facilities Authority, Revenue Bonds, Evangelical Lutheran Good Samaritan | 6/16 at 100.00 | A– | 990,180 |
| | | Society, Series 2005, 5.000%, 6/01/35 | | | |
1,640 | | Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2000A, | 11/10 at 100.00 | A+ | 1,646,084 |
| | | 6.000%, 11/15/16 – AMBAC Insured (Alternative Minimum Tax) | | | |
520 | | Public Authority for Colorado Energy, Natural Gas Purchase Revenue Bonds, Colorado Springs | No Opt. Call | A | 576,602 |
| | | Utilities, Series 2008, 6.125%, 11/15/23 | | | |
250 | | Southlands Metropolitan District 1, Colorado, Limited Tax General Obligation Bonds, Series | 12/17 at 100.00 | N/R | 220,195 |
| | | 2007, 5.250%, 12/01/34 – RAAI Insured | | | |
5,470 | | Total Colorado | | | 5,559,710 |
| | | Connecticut – 2.0% | | | |
1,480 | | Capitol Region Education Council, Connecticut, Revenue Bonds, Series 1995, 6.750%, 10/15/15 | 4/11 at 100.00 | BBB | 1,484,514 |
330 | | Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator | 1/11 at 100.00 | BBB | 331,073 |
| | | Lisbon Project, Series 1993A, 5.500%, 1/01/14 (Alternative Minimum Tax) | | | |
1,810 | | Total Connecticut | | | 1,815,587 |
| | | Florida – 3.6% | | | |
120 | | Dade County Industrial Development Authority, Florida, Revenue Bonds, Miami Cerebral Palsy | 12/10 at 100.00 | N/R | 118,300 |
| | | Residential Services Inc., Series 1995, 8.000%, 6/01/22 | | | |
1,250 | | Martin County Industrial Development Authority, Florida, Industrial Development Revenue Bonds, | 12/10 at 100.00 | BB+ | 1,275,000 |
| | | Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) | | | |
600 | | Martin County Industrial Development Authority, Florida, Industrial Development Revenue | 12/10 at 100.00 | BB+ | 612,000 |
| | | Refunding Bonds, Indiantown Cogeneration LP, Series 1995B, 8.050%, 12/15/25 (Alternative | | | |
| | | Minimum Tax) | | | |
640 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010B, | 10/20 at 100.00 | AA+ | 657,363 |
| | | 5.000%, 10/01/35 – AGM Insured | | | |
655 | | Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2006, | 5/14 at 101.00 | N/R | 529,450 |
| | | 5.400%, 5/01/37 | | | |
3,265 | | Total Florida | | | 3,192,113 |
| | | Georgia – 0.9% | | | |
500 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.250%, 11/01/34 – | 11/19 at 100.00 | AA+ | 528,270 |
| | | AGM Insured | | | |
300 | | Main Street Natural Gas Inc., Georgia, Gas Project Revenue Bonds, Series 2007B, 5.000%, 3/15/22 | No Opt. Call | A | 308,058 |
800 | | Total Georgia | | | 836,328 |
| | | Illinois – 9.8% | | | |
920 | | Chicago, Illinois, Tax Increment Allocation Bonds, Irving/Cicero Redevelopment Project, Series | 1/11 at 100.00 | N/R | 921,159 |
| | | 1998, 7.000%, 1/01/14 | | | |
1,500 | | Illinois Development Finance Authority, Pollution Control Revenue Refunding Bonds – | 1/11 at 100.00 | BBB– | 1,500,330 |
| | | CIPS Debt, Series 1993C-2, 5.950%, 8/15/26 | | | |
500 | | Illinois Development Finance Authority, Revenue Bonds, Chicago Charter School Foundation, | 12/12 at 100.00 | N/R (4) | 554,500 |
| | | Series 2002A, 6.125%, 12/01/22 (Pre-refunded 12/01/12) | | | |
1,000 | | Illinois Finance Authority, Revenue Bonds, Children’s Memorial Hospital, Tender Option Bond | No Opt. Call | AA+ | 1,180,400 |
| | | Trust 2008-1098, 18.116%, 8/15/15 – AGC Insured (IF) (5) | | | |
250 | | Illinois Finance Authority, Revenue Bonds, Palos Community Hospital, Series 2010C, | 5/20 at 100.00 | N/R | 252,153 |
| | | 5.125%, 5/15/35 | | | |
Nuveen Investments 33
| | |
| | Nuveen Municipal Income Fund, Inc. (continued) |
NMI | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Illinois (continued) | | | |
$ 250 | | Illinois Finance Authority, Revenue Bonds, Rush University Medical Center Obligated Group, | No Opt. Call | A– | $ 274,123 |
| | | Series 2009C, 6.375%, 11/01/29 | | | |
500 | | Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series | 8/19 at 100.00 | BBB | 559,830 |
| | | 2009, 7.000%, 8/15/44 | | | |
250 | | Illinois Finance Authority, Revenue Bonds, Southern Illinois Healthcare Enterprises, Inc., | 3/20 at 100.00 | AA+ | 263,665 |
| | | Series 2005 Remarketed, 5.250%, 3/01/30 – AGM Insured | | | |
600 | | Illinois Health Facilities Authority, Revenue Bonds, Condell Medical Center, Series 2002, | 5/12 at 100.00 | Aaa | 644,508 |
| | | 5.500%, 5/15/32 (Pre-refunded 5/15/12) | | | |
1,000 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, | 1/13 at 100.00 | Baa1 | 1,006,010 |
| | | Series 2002, 5.500%, 1/01/22 | | | |
250 | | Lombard Public Facilities Corporation, Illinois, Second Tier Conference Center and Hotel | 1/16 at 100.00 | B– | 173,103 |
| | | Revenue Bonds, Series 2005B, 5.250%, 1/01/36 | | | |
1,305 | | North Chicago, Illinois, General Obligation Bonds, Series 2005B, 5.000%, 11/01/25 – | 11/15 at 100.00 | A | 1,372,129 |
| | | FGIC Insured | | | |
8,325 | | Total Illinois | | | 8,701,910 |
| | | Indiana – 4.3% | | | |
525 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, Drexel Foundation For | 10/19 at 100.00 | BBB– | 564,207 |
| | | Educational Excellence, Inc., Series 2009A, 7.000%, 10/01/39 | | | |
2,000 | | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Riverview Hospital, | 8/12 at 101.00 | Baa1 | 2,022,700 |
| | | Series 2002, 6.125%, 8/01/31 | | | |
250 | | Indianapolis, Indiana, Multifamily Housing Revenue Bonds, GMF-Berkley Commons Apartments, | 7/20 at 100.00 | A+ | 260,878 |
| | | Series 2010A, 6.000%, 7/01/40 | | | |
1,030 | | Whitley County, Indiana, Solid Waste and Sewerage Disposal Revenue Bonds, Steel Dynamics Inc., | 11/10 at 102.00 | N/R | 1,016,033 |
| | | Series 1998, 7.250%, 11/01/18 (Alternative Minimum Tax) | | | |
3,805 | | Total Indiana | | | 3,863,818 |
| | | Kansas – 0.6% | | | |
500 | | Overland Park Development Corporation, Kansas, Second Tier Revenue Bonds, Overland Park | 1/17 at 100.00 | BBB– | 495,020 |
| | | Convention Center, Series 2007B, 5.125%, 1/01/22 – AMBAC Insured | | | |
| | | Kentucky – 2.9% | | | |
500 | | Kentucky Economic Development Finance Authority, Hospital Facilities Revenue Bonds, Owensboro | No Opt. Call | Baa2 | 533,770 |
| | | Medical Health System, Series 2010A, 6.500%, 3/01/45 | | | |
465 | | Kentucky Housing Corporation, Housing Revenue Bonds, Series 2010C, 4.625%, 7/01/33 | 1/20 at 100.00 | AAA | 471,747 |
1,500 | | Louisville-Jefferson County Metropolitan Government, Kentucky, Health Facilities Revenue | 2/18 at 100.00 | A– | 1,600,560 |
| | | Bonds, Jewish Hospital & Saint Mary’s HealthCare Inc. Project, Series 2008, 6.125%, 2/01/37 | | | |
2,465 | | Total Kentucky | | | 2,606,077 |
| | | Louisiana – 2.0% | | | |
500 | | Louisiana Local Government Environmental Facilities and Community Development Authority, | 1/19 at 100.00 | AA+ | 533,675 |
| | | Revenue Refunding Bonds, City of Shreveport Airport System Project, Series 2008A, 5.750%, | | | |
| | | 1/01/28 – AGM Insured | | | |
| | | Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds, Comm-Care | | | |
| | | Corporation Project, Series 1994: | | | |
105 | | 11.000%, 2/01/14 (ETM) | No Opt. Call | N/R (4) | 122,746 |
950 | | 11.000%, 2/01/14 (ETM) | No Opt. Call | N/R (4) | 1,110,560 |
1,555 | | Total Louisiana | | | 1,766,981 |
| | | Maryland – 2.5% | | | |
1,000 | | Maryland Economic Development Corporation, Economic Development Revenue Bonds, Transportation | 6/20 at 100.00 | Baa3 | 1,044,900 |
| | | Facilities Project, Series 2010A, 5.750%, 6/01/35 | | | |
1,000 | | Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, | 1/11 at 100.00 | N/R | 1,000,580 |
| | | 7.400%, 9/01/19 (Alternative Minimum Tax) | | | |
210 | | Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Patterson Park | 7/20 at 100.00 | BBB– | 217,438 |
| | | Public Charter School Issue, Series 2010, 6.000%, 7/01/40 | | | |
2,210 | | Total Maryland | | | 2,262,918 |
34 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Massachusetts – 0.6% | | | |
$ 250 | | Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds, Ogden Haverhill | 12/10 at 101.00 | BBB | $ 254,058 |
| | | Associates, Series 1999A, 6.700%, 12/01/14 (Alternative Minimum Tax) | | | |
270 | | Massachusetts Industrial Finance Agency, Resource Recovery Revenue Refunding Bonds, Ogden | 12/10 at 100.00 | BBB | 270,510 |
| | | Haverhill Project, Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax) | | | |
520 | | Total Massachusetts | | | 524,568 |
| | | Michigan – 3.0% | | | |
1,000 | | Delta County Economic Development Corporation, Michigan, Environmental Improvement Revenue | 4/12 at 100.00 | AAA | 1,087,570 |
| | | Refunding Bonds, MeadWestvaco Corporation – Escanaba Paper Company, Series 2002B, 6.450%, | | | |
| | | 4/15/23 (Pre-refunded 4/15/12) (Alternative Minimum Tax) | | | |
1,590 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sinai Hospital, | 1/11 at 100.00 | BB | 1,590,477 |
| | | Series 1995, 6.625%, 1/01/16 | | | |
2,590 | | Total Michigan | | | 2,678,047 |
| | | Mississippi – 0.6% | | | |
500 | | Mississippi Business Finance Corporation, Pollution Control Revenue Refunding Bonds, System | 4/11 at 100.00 | BBB | 502,500 |
| | | Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22 | | | |
| | | Missouri – 5.1% | | | |
265 | | Hanley Road Corridor Transportation Development District, Brentwood and Maplewood, Missouri, | 10/19 at 100.00 | A– | 276,954 |
| | | Transportation Sales Revenue Bonds, Refunding Series 2009A, 5.875%, 10/01/36 | | | |
4,450 | | Missouri Environmental Improvement and Energy Resources Authority, Water Facility Revenue | 12/16 at 100.00 | AA+ | 4,243,698 |
| | | Bonds, Missouri-American Water Company, Series 2006, 4.600%, 12/01/36 – AMBAC Insured | | | |
| | | (Alternative Minimum Tax) (UB) | | | |
4,715 | | Total Missouri | | | 4,520,652 |
| | | Montana – 1.3% | | | |
1,200 | | Montana Board of Investments, Exempt Facility Revenue Bonds, Stillwater Mining Company, Series | 7/11 at 100.50 | B | 1,125,096 |
| | | 2000, 8.000%, 7/01/20 (Alternative Minimum Tax) | | | |
| | | Nebraska – 1.2% | | | |
1,000 | | Washington County, Nebraska, Wastewater Facilities Revenue Bonds, Cargill Inc., Series 2002, | 11/12 at 101.00 | A | 1,033,570 |
| | | 5.900%, 11/01/27 (Alternative Minimum Tax) | | | |
| | | New York – 5.8% | | | |
630 | | Brooklyn Areba Local Development Corporation, New York, Payment in Lieu of Taxes Revenue | No Opt. Call | BBB– | 684,111 |
| | | Bonds, Barclays Center Project, Series 2009, 6.250%, 7/15/40 | | | |
1,000 | | Dormitory Authority of the State of New York, Revenue Bonds, Brooklyn Law School, Series | 7/13 at 100.00 | BBB+ | 1,074,890 |
| | | 2003A, 5.500%, 7/01/15 – RAAI Insured | | | |
3,380 | | Yates County Industrial Development Agency, New York, FHA-Insured Civic Facility Mortgage | 2/11 at 101.00 | N/R | 3,447,600 |
| | | Revenue Bonds, Soldiers and Sailors Memorial Hospital, Series 2000A, 6.000%, 2/01/41 | | | |
5,010 | | Total New York | | | 5,206,601 |
| | | Ohio – 2.1% | | | |
520 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue | 6/17 at 100.00 | BBB | 397,935 |
| | | Bonds, Senior Lien, Series 2007A-2, 5.875%, 6/01/47 | | | |
1,000 | | Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands Regional Medical Center | 8/16 at 100.00 | A– | 963,700 |
| | | Project, Series 2006, 5.250%, 8/15/46 | | | |
500 | | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, | 4/20 at 100.00 | BBB– | 513,315 |
| | | Refunding & improvement Series 2010, 6.375%, 4/01/30 | �� | | |
2,020 | | Total Ohio | | | 1,874,950 |
| | | Pennsylvania – 1.8% | | | |
1,080 | | Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn | 11/10 at 102.00 | AAA | 1,105,888 |
| | | Allegheny Health System, Series 2000B, 9.250%, 11/15/30 (Pre-refunded 11/15/10) | | | |
460 | | Cumberland County Municipal Authority Revenue Bonds, Pennsylvania, Diakon Lutheran Social | 1/19 at 100.00 | N/R | 486,114 |
| | | Ministries Project, Series 2009, 6.125%, 1/01/29 | | | |
1,540 | | Total Pennsylvania | | | 1,592,002 |
Nuveen Investments 35
| | |
| | Nuveen Municipal Income Fund, Inc. (continued) |
NMI | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Rhode Island – 1.1% | | | |
$ 1,000 | | Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, | 6/12 at 100.00 | BBB | $ 1,001,119 |
| | | Series 2002A, 6.250%, 6/01/42 | | | |
| | | South Carolina – 4.3% | | | |
1,500 | | Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series | 12/12 at 101.00 | AA | 1,661,160 |
| | | 2002, 5.500%, 12/01/13 | | | |
475 | | Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 1991, 6.750%, | No Opt. Call | AAA | 623,566 |
| | | 1/01/19 – FGIC Insured (ETM) | | | |
1,105 | | South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon | 11/12 at 100.00 | A– | 1,120,592 |
| | | Secours Health System Inc., Series 2002B, 5.625%, 11/15/30 | | | |
395 | | Tobacco Settlement Revenue Management Authority, South Carolina, Tobacco Settlement | 5/11 at 101.00 | BBB (4) | 406,877 |
| | | Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/11) | | | |
3,475 | | Total South Carolina | | | 3,812,195 |
| | | Tennessee – 2.5% | | | |
1,000 | | Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue | 4/12 at 101.00 | A1 | 1,074,810 |
| | | Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 | | | |
| | | Shelby County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue | | | |
| | | Bonds, Methodist Healthcare, Series 2002: | | | |
375 | | 6.500%, 9/01/26 (Pre-refunded 9/01/12) | 9/12 at 100.00 | AAA | 416,260 |
625 | | 6.500%, 9/01/26 (Pre-refunded 9/01/12) | 9/12 at 100.00 | AAA | 693,769 |
63 | | Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding | 11/17 at 100.00 | N/R | 26,021 |
| | | Bonds, Sumner Regional Health System Inc., Series 2007, 5.500%, 11/01/37 (6), (7) | | | |
2,063 | | Total Tennessee | | | 2,210,860 |
| | | Texas – 10.6% | | | |
25 | | Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds, TXU Electric | No Opt. Call | CCC | 23,761 |
| | | Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) | | | |
1,500 | | Cameron Education Finance Corporation, Texas, Charter School Revenue Bonds, Faith Family | 8/16 at 100.00 | BBB– | 1,377,045 |
| | | Academy Charter School, Series 2006A, 5.250%, 8/15/36 – ACA Insured | | | |
2,000 | | Gulf Coast Waste Disposal Authority, Texas, Sewerage and Solid Waste Disposal Revenue Bonds, | 4/12 at 100.00 | BBB+ | 2,023,340 |
| | | Anheuser Busch Company, Series 2002, 5.900%, 4/01/36 (Alternative Minimum Tax) | | | |
1,000 | | Matagorda County Navigation District 1, Texas, Collateralized Revenue Refunding Bonds, Houston | 10/13 at 101.00 | A | 1,040,750 |
| | | Light and Power Company, Series 1995, 4.000%, 10/15/15 – NPFG Insured | | | |
| | | North Texas Thruway Authority, Second Tier System Revenue Refunding Bonds, Tender Option Bond, | | | |
| | | Trust 2903: | | | |
150 | | 17.178%, 1/01/30 (IF) | 1/18 at 100.00 | A3 | 205,086 |
850 | | 17.080%, 1/01/38 (IF) | 1/18 at 100.00 | A3 | 1,140,156 |
270 | | SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, Series | No Opt. Call | A | 289,308 |
| | | 2007, 5.500%, 8/01/27 | | | |
405 | | Texas Private Activity Bond Surface Transportation Corporation, Senior Lien Revenue Bonds, NTE | 12/19 at 100.00 | Baa2 | 440,992 |
| | | Mobility Partners LLC North Tarrant Express Managed Lanes Project, Series 2009, | | | |
| | | 6.875%, 12/31/39 | | | |
770 | | Texas Private Activity Bond Surface Transportation Corporation, Senior Lien Revenue Bonds, LBJ | 6/20 at 100.00 | Baa3 | 839,955 |
| | | Infrastructure Group LLC IH-635 Managed Lanes Project, Series 2010, 7.000%, 6/30/40 | | | |
500 | | Texas Public Finance Authority, Charter School Finance Corporation Revenue Bonds, Idea Public | 8/17 at 100.00 | BBB | 461,840 |
| | | School Project, Series 2007A, 5.000%, 8/15/37 – ACA Insured | | | |
| | | Weslaco Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Knapp | | | |
| | | Medical Center, Series 2002: | | | |
1,000 | | 6.250%, 6/01/25 (Pre-refunded 6/01/12) | 6/12 at 100.00 | N/R (4) | 1,085,330 |
50 | | 6.250%, 6/01/32 (Pre-refunded 6/01/12) | 6/12 at 100.00 | N/R (4) | 54,267 |
1,000 | | West Texas Independent School District, McLennan and Hill Counties, General Obligation | 8/13 at 51.84 | AAA | 465,270 |
| | | Refunding Bonds, Series 1998, 0.000%, 8/15/25 | | | |
9,520 | | Total Texas | | | 9,447,100 |
| | | Virgin Islands – 0.5% | | | |
420 | | Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, | 10/19 at 100.00 | BBB | 473,587 |
| | | Series 2009A, 6.750%, 10/01/37 | | | |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Virginia – 2.9% | | | |
$ 1,000 | | Chesterfield County Industrial Development Authority, Virginia, Pollution Control Revenue | 11/10 at 102.00 | Baa1 | $ 1,022,540 |
| | | Bonds, Virginia Electric and Power Company, Series 1987A, 5.875%, 6/01/17 | | | |
1,500 | | Mecklenburg County Industrial Development Authority, Virginia, Revenue Bonds, UAE Mecklenburg | 10/12 at 100.00 | Baa1 | 1,521,374 |
| | | Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) | | | |
2,500 | | Total Virginia | | | 2,543,914 |
| | | Washington – 0.5% | | | |
500 | | Washington State Health Care Facilities Authority, Revenue Bonds, Northwest Hospital and | No Opt. Call | N/R | 424,940 |
| | | Medical Center of Seattle, Series 2007, 5.700%, 12/01/32 | | | |
| | | Wisconsin – 1.4% | | | |
250 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Beloit Health System, | 4/20 at 100.00 | N/R | 244,820 |
| | | Inc., Series 2010B, 5.000%, 4/01/30 | | | |
1,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Carroll College Inc., | 10/11 at 100.00 | BBB | 1,016,770 |
| | | Series 2001, 6.250%, 10/01/21 | | | |
1,250 | | Total Wisconsin | | | 1,261,590 |
$ 94,363 | | Total Investments (cost $85,976,152) – 101.6% | | | 90,459,519 |
| | | Floating Rate Obligations – (3.7)% | | | (3,335,000) |
| | | Other Assets Less Liabilities – 2.1% | | | 1,883,941 |
| | | Net Assets – 100% | | | $ 89,008,460 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (6) | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| (7) | The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| (ETM) | Escrowed to maturity. |
| (IF) | Inverse floating rate investment. |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
Nuveen Investments 37
| | | | | | |
| | | Nuveen Enhanced Municipal Value Fund | | | |
NEV | | Portfolio of Investments | | |
| | | | October 31, 2010 | |
| | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Alabama – 0.8% | | | |
$ 355 | | Courtland Industrial Development Board, Alabama, Solid Waste Revenue Bonds, International | 6/15 at 100.00 | BBB | $ 352,117 |
| | | Paper Company Project, Series 2005A, 5.200%, 6/01/25 (Alternative Minimum Tax) | | | |
2,000 | | Jefferson County, Alabama, Limited Obligation School Warrants, Education Tax Revenue Bonds, | 1/14 at 100.00 | AA+ | 1,957,280 |
| | | Series 2004A, 5.250%, 1/01/23 – AGM Insured | | | |
2,355 | | Total Alabama | | | 2,309,397 |
| | | Arizona – 4.7% | | | |
2,000 | | Arizona State, Certificates of Participation, Series 2010A, 5.250%, 10/01/28 – AGM Insured | 10/19 at 100.00 | AA+ | 2,121,220 |
2,500 | | Festival Ranch Community Facilities District, Town of Buckeye, Arizona, District General | 7/19 at 100.00 | BBB+ | 2,542,875 |
| | | Obligation Bonds, Series 2009, 6.500%, 7/15/31 | | | |
2,600 | | Nogales Municipal Development Authority, Inc., Arizona, Municipal Facilities Revenue Bonds, | 6/19 at 100.00 | AA | 2,632,838 |
| | | Series 2009, 4.750%, 6/01/39 | | | |
2,000 | | Pima County Industrial Development Authority, Arizona, Pollution Control Revenue Bonds, Tucson | No Opt. Call | BBB– | 2,122,300 |
| | | Electric Power Company, San Juan Project, Series 2009A, 4.950%, 10/01/20 | | | |
320 | | Quechan Indian Tribe of the Fort Yuma Reservation, Arizona, Government Project Bonds, Series | 12/17 at 102.00 | N/R | 308,838 |
| | | 2008, 7.000%, 12/01/27 | | | |
| | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc | | | |
| | | Prepay Contract Obligations, Series 2007: | | | |
50 | | 5.000%, 12/01/32 | No Opt. Call | A | 48,502 |
2,120 | | 5.000%, 12/01/37 | No Opt. Call | A | 2,002,828 |
1,927 | | Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, Series | 7/16 at 100.00 | N/R | 1,623,208 |
| | | 2005, 6.000%, 7/01/30 | | | |
13,517 | | Total Arizona | | | 13,402,609 |
| | | Arkansas – 0.4% | | | |
1,100 | | Little River County, Arkansas, Revenue Refunding Bonds, Georgia-Pacific Corporation, Series | 4/11 at 100.00 | Ba3 | 1,068,155 |
| | | 1998, 5.600%, 10/01/26 (Alternative Minimum Tax) | | | |
| | | California – 15.3% | | | |
1,000 | | Bay Area Governments Association, California, BART SFO Extension, Airport Premium Fare Revenue | 8/12 at 100.00 | N/R | 880,400 |
| | | Bonds, Series 2002A, 5.000%, 8/01/32 – AMBAC Insured | | | |
1,000 | | California Infrastructure Economic Development Bank, Revenue Bonds, J. David Gladstone | 10/11 at 101.00 | A– | 993,220 |
| | | Institutes, Series 2001, 5.250%, 10/01/34 | | | |
1,000 | | California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series | 11/19 at 100.00 | Baa1 | 1,054,510 |
| | | 2009, 8.000%, 11/01/29 | | | |
500 | | California Statewide Communities Development Authority, Revenue Bonds, American Baptist Homes | 10/19 at 100.00 | BBB– | 506,060 |
| | | of the West, Series 2010, 5.750%, 10/01/25 | | | |
4,600 | | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series | 8/18 at 100.00 | AA+ | 4,750,742 |
| | | 2004C, 5.050%, 8/15/38 – AGM Insured | | | |
5,875 | | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series | 8/18 at 100.00 | AA+ | 6,067,523 |
| | | 2004D, 5.050%, 8/15/38 – AGM Insured | | | |
275 | | Eastern Municipal Water District, California, Water and Sewerage System Revenue Certificates | 7/16 at 100.00 | AA | 286,902 |
| | | of Participation, Series 2006A, 5.000%, 7/01/32 – NPFG Insured | | | |
490 | | Etiwanda School District, California, Coyote Canyon Community Facilties District 2004-1 | 9/19 at 100.00 | N/R | 508,267 |
| | | Improvement Area 2 Special Tax Bonds, Series 2009, 6.500%, 9/01/32 | | | |
845 | | Folsom Public Financing Authority, California, Special Tax Revenue Bonds, Refunding Series | 9/17 at 100.00 | N/R | 852,250 |
| | | 2007A, 5.000%, 9/01/23 – AMBAC Insured | | | |
880 | | Folsom Public Financing Authority, California, Subordinate Special Tax Revenue Bonds, Series | 9/20 at 100.00 | A– | 899,272 |
| | | 2010A, 5.250%, 9/01/24 | | | |
3,030 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | 6/15 at 100.00 | AA+ | 3,031,091 |
| | | Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – AGC Insured | | | |
38 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | California (continued) | | | |
| | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed | | | |
| | | Bonds, Series 2007A-1: | | | |
$ 4,055 | | 5.750%, 6/01/47 | 6/17 at 100.00 | BBB | $ 3,243,392 |
1,000 | | 5.125%, 6/01/47 | 6/17 at 100.00 | BBB | 720,710 |
200 | | Jurupa Public Financing Authority, California,Superior Lien Revenue Bonds, Series 2010A, | 9/20 at 100.00 | AA+ | 202,860 |
| | | 5.000%, 9/01/33 | | | |
525 | | Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International | 5/20 at 100.00 | AA | 553,933 |
| | | Airport, Senior Lien Series 2010A, 5.000%, 5/15/31 | | | |
100 | | Los Angeles Regional Airports Improvement Corporation, California, Sublease Revenue Bonds, Los | 12/12 at 102.00 | B– | 101,813 |
| | | Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002B, | | | |
| | | 7.500%, 12/01/24 (Alternative Minimum Tax) | | | |
1,500 | | Palm Drive Health Care District, Sonoma County, California, Certificates of Participation, | No Opt. Call | BB | 1,494,495 |
| | | Parcel Tax Secured Financing Program, Series 2010, 7.000%, 4/01/25 | | | |
265 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, | 11/19 at 100.00 | Baa3 | 292,634 |
| | | 6.750%, 11/01/39 | | | |
5,445 | | Peralta Community College District, Alameda County, California, General Obligation Bonds, | 8/19 at 100.00 | AA– | 5,702,057 |
| | | Election of 2006, Series 2009C, 5.000%, 8/01/39 | | | |
250 | | Ridgecrest Redevelopment Agency, California, Ridgecrest Redevelopment Project Tax Allocation | 6/20 at 100.00 | A– | 255,090 |
| | | Bonds, Refunding Series 2010, 6.125%, 6/30/37 | | | |
2,170 | | San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 2 and 3, | 8/15 at 102.00 | AA+ | 2,539,768 |
| | | Tender Option Bond Trust 3116, 21.368%, 8/01/38 – AGM Insured (IF) | | | |
1,000 | | Semitrophic Improvement District of Semitrophic Water Storage District, Kern County, | 12/19 at 100.00 | AA– | 1,033,530 |
| | | California, Revenue Bonds, Refunding Series 2009A, 5.000%, 12/01/38 | | | |
2,400 | | Semitrophic Improvement District of Semitrophic Water Storage District, Kern County, | No Opt. Call | AA– | 2,893,080 |
| | | California, Revenue Bonds, Tender Option Bond Trust 3584, 21.709%, 6/01/17 (IF) (4) | | | |
3,110 | | Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, | 8/17 at 100.00 | AA+ | 3,248,302 |
| | | Series 2007, 5.000%, 8/01/31 – AGM Insured | | | |
500 | | Tustin Community Redevelopment Agency, California, MCAS Project Area Tax Allocation Bonds, | 9/18 at 102.00 | A | 485,770 |
| | | Series 2010, 5.000%, 9/01/35 (WI/DD, Settling 11/10/10) | | | |
1,020 | | Western Placer Unified School District, Placer County, California, Certificates of | 8/19 at 100.00 | AA+ | 1,042,542 |
| | | Participation, Refunding Series 2009, 5.250%, 8/01/35 – AGM Insured | | | |
43,035 | | Total California | | | 43,640,213 |
| | | Colorado – 4.9% | | | |
1,000 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Crown | 7/19 at 100.00 | N/R | 965,930 |
| | | Pointe Academy of Westminster Project, Chartered Through Adams County School District 50, | | | |
| | | Series 2009, 5.000%, 7/15/39 | | | |
2,120 | | Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Montessori School of | 12/15 at 100.00 | N/R | 1,905,838 |
| | | Evergreen, Series 2005A, 6.500%, 12/01/35 | | | |
750 | | Colorado Health Facilities Authority, Health Facilities Revenue Bonds, Sisters of Charity of Leavenworth | No Opt. Call | AA | 959,250 |
| | | Health Services Corporation, Tender Option Bond Trust 3702, 18.420%, 1/01/18 (IF) (4) | | | |
1,000 | | Colorado Housing and Finance Authority, Multifamily Housing Revenue Senior Bonds, Castle | 12/10 at 100.00 | N/R | 899,200 |
| | | Highlands Apartments Project, Series 2000A-1, 5.900%, 12/01/20 – AMBAC Insured (Alternative | | | |
| | | Minimum Tax) | | | |
250 | | Colorado Housing and Finance Authority, Revenue Bonds, Confluence Energy LLC Project, Series | No Opt. Call | N/R | 189,235 |
| | | 2007, 6.200%, 4/01/16 (Alternative Minimum Tax) (5) | | | |
2,000 | | Conservatory Metropolitan District, Arapahoe County, Colorado, General Obligation Limited Tax | 12/17 at 100.00 | N/R | 1,591,880 |
| | | Bonds, Series 2007, 5.125%, 12/01/37 – RAAI Insured | | | |
| | | Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Series 2003: | | | |
1,000 | | 7.600%, 12/01/16 | 6/14 at 101.00 | N/R | 1,039,350 |
500 | | 7.700%, 12/01/17 | 6/14 at 101.00 | N/R | 520,590 |
| | | Public Authority for Colorado Energy, Natural Gas Purchase Revenue Bonds, Colorado Springs | | | |
| | | Utilities, Series 2008: | | | |
475 | | 6.250%, 11/15/28 | No Opt. Call | A | 538,926 |
3,880 | | 6.500%, 11/15/38 | No Opt. Call | A | 4,562,143 |
Nuveen Investments 39
| | |
| | Nuveen Enhanced Municipal Value Fund (continued) |
NEV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Colorado (continued) | | | |
815 | | Three Springs Metropolitan District 3, Durango, La Plata County, Colorado, Property Tax | 12/20 at 100.00 | N/R | $ 833,492 |
| | | Supported Revenue Bonds, Series 2010, 7.750%, 12/01/39 | | | |
13,790 | | Total Colorado | | | 14,005,834 |
| | | Connecticut – 0.7% | | | |
915 | | Hamden, Connecticut, Facility Revenue Bonds, Whitney Center Project, Series 2009A, | 1/20 at 100.00 | N/R | 998,256 |
| | | 7.750%, 1/01/43 | | | |
1,000 | | Harbor Point Infrastructure Improvement District, Connecticut, Special Obligation Revenue | 4/20 at 100.00 | N/R | 1,069,630 |
| | | Bonds, Harbor Point Project, Series 2010A, 7.000%, 4/01/22 | | | |
1,915 | | Total Connecticut | | | 2,067,886 |
| | | District of Columbia – 0.1% | | | |
400 | | District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, | 5/11 at 101.00 | BBB | 400,440 |
| | | Series 2001, 6.750%, 5/15/40 | | | |
| | | Florida – 8.8% | | | |
1,970 | | Ave Maria Stewardship Community Development District, Florida, Capital Improvement Revenue | 5/16 at 100.00 | N/R | 1,510,143 |
| | | Bonds, Series 2006A, 5.125%, 5/01/38 | | | |
1,000 | | Country Greens Community Development District, Florida, Special Assessment Bonds, Series 2003, | 5/13 at 101.00 | N/R | 1,004,790 |
| | | 6.625%, 5/01/34 | | | |
4,235 | | Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, Series 2009-2, | 7/19 at 100.00 | AA+ | 4,353,495 |
| | | 4.650%, 7/01/29 | | | |
3,160 | | JEA, Florida, Water and Sewerage System Revenue Bonds, Tender Option Bond Trust 11801, | 1/11 at 100.00 | Aa2 | 3,161,106 |
| | | 20.352%, 4/01/35 – NPFG Insured (IF) | | | |
2,400 | | Miami-Dade County School Board, Florida, Certificates of Participation, Tender Option Bond | 11/16 at 100.00 | AA+ | 2,908,080 |
| | | Trust 3118, 21.349%, 11/01/31 – AGM Insured (IF) | | | |
1,625 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series | 10/20 at 100.00 | A2 | 1,692,145 |
| | | 2010A-1, 5.375%, 10/01/35 | | | |
1,460 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010B, | 10/20 at 100.00 | AA+ | 1,499,610 |
| | | 5.000%, 10/01/35 – AGM Insured | | | |
3,660 | | Miami-Dade County, Florida, Capital Asset Acquisition Special Obligation Bonds, Series 2009A, | 4/19 at 100.00 | AA+ | 3,803,143 |
| | | 5.125%, 4/01/34 – AGC Insured | | | |
10 | | Orange County Health Facilities Authority, Florida, Revenue Bonds, Nemours Foundation, Series | 1/19 at 100.00 | AA+ | 10,369 |
| | | 2009A, 5.000%, 1/01/39 | | | |
470 | | Poinciana West Community Development District, Florida, Special Assessment Bonds, Series 2007, | 5/17 at 100.00 | N/R | 444,456 |
| | | 5.875%, 5/01/22 | | | |
1,000 | | South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System | 8/17 at 100.00 | AA | 1,064,160 |
| | | Obligation Group, Tender Option Bond Trust 3119, 17.266%, 8/15/37 (IF) | | | |
2,500 | | Tallahassee, Florida, Energy System Revenue Bonds, Tender Option Bond Trust 09-30W, 21.144%, | 10/15 at 100.00 | AA | 2,800,500 |
| | | 10/01/35 – NPFG Insured (IF) | | | |
1,200 | | Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007, | 5/18 at 100.00 | N/R | 887,028 |
| | | 6.650%, 5/01/40 | | | |
24,690 | | Total Florida | | | 25,139,025 |
| | | Georgia – 2.6% | | | |
750 | | Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 2008A. Remarketed, | 1/19 at 100.00 | N/R | 786,705 |
| | | 7.500%, 1/01/31 | | | |
1,000 | | Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 2008B. Remarketed, | 1/19 at 100.00 | N/R | 1,046,470 |
| | | 6.750%, 1/01/20 | | | |
1,000 | | Augusta, Georgia, Airport Revenue Bonds, Series 2005A, 5.150%, 1/01/35 | 1/15 at 100.00 | Baa2 | 957,680 |
1,250 | | Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air | 6/20 at 100.00 | CCC+ | 1,450,188 |
| | | Lines, Inc. Project, Series 2009A, 8.750%, 6/01/29 | | | |
2,500 | | Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air | 6/15 at 100.00 | CCC+ | 2,730,900 |
| | | Lines, Inc. Project, Series 2009B, 9.000%, 6/01/35 (Alternative Minimum Tax) | | | |
40 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Georgia (continued) | | | |
$ 250 | | Effingham County Development Authority, Georgia, Solid Waste Disposal Revenue Bonds, Ft. James | 1/11 at 100.00 | BBB– | $ 247,450 |
| | | Project, Series 1998, 5.625%, 7/01/18 (Alternative Minimum Tax) | | | |
150 | | Main Street Natural Gas Inc., Georgia, Gas Project Revenue Bonds, Series 2007A, 5.500%, 9/15/26 | No Opt. Call | A | 157,302 |
90 | | Main Street Natural Gas Inc., Georgia, Gas Project Revenue Bonds, Series 2007B, 5.000%, 3/15/22 | No Opt. Call | A | 92,417 |
6,990 | | Total Georgia | | | 7,469,112 |
| | | Illinois – 7.5% | | | |
2,500 | | CenterPoint Intermodal Center Program Trust, Illinois, Series 2004 Class A Certificates, | 1/11 at 100.00 | N/R | 2,525,000 |
| | | 7.500%, 6/15/23 | | | |
2,000 | | Chicago, Illinois, Chicago O’Hare International Airport Special Facility Revenue Refunding | 12/12 at 100.00 | Caa2 | 1,684,560 |
| | | Bonds, American Air Lines, Inc. Project, Series 2007, 5.500%, 12/01/30 | | | |
1,460 | | Hoffman Estates, Illinois, General Obligation Bonds, Tender Option Bond Trust 09-28W, 25.182%, | 12/18 at 100.00 | AA+ | 1,859,398 |
| | | 12/01/38 (IF) | | | |
1,000 | | Illinois Finance Authority Revenue Bonds, Christian Homes, Inc., Refunding Series 2010, | 5/20 at 100.00 | N/R | 995,340 |
| | | 6.125%, 5/15/27 | | | |
4,000 | | Illinois Finance Authority, Revenue Bonds, Illinois Institute of Technology, Refunding Series | 4/16 at 100.00 | Baa2 | 3,619,840 |
| | | 2006A, 5.000%, 4/01/36 | | | |
500 | | Illinois Finance Authority, Revenue Bonds, Little Company of Mary Hospital and Health Care | No Opt. Call | A+ | 493,005 |
| | | Centers, Series 2010, 5.250%, 8/15/36 | | | |
1,000 | | Illinois Finance Authority, Revenue Bonds, Palos Community Hospital, Series 2010C, | 5/20 at 100.00 | N/R | 1,008,610 |
| | | 5.125%, 5/15/35 | | | |
500 | | Illinois Finance Authority, Revenue Bonds, Southern Illinois Healthcare Enterprises, Inc., | 3/20 at 100.00 | AA+ | 527,330 |
| | | Series 2005 Remarketed, 5.250%, 3/01/30 – AGM Insured | | | |
1,000 | | Illinois Finance Authority, Revenue Refunding Bonds, Resurrection Health Care Corporation, | 5/19 at 100.00 | BBB+ | 1,041,640 |
| | | Series 2009, 6.125%, 5/15/25 | | | |
500 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare, | 1/13 at 100.00 | Baa1 | 503,005 |
| | | Series 2002, 5.500%, 1/01/22 | | | |
| | | Lombard Public Facilities Corporation, Illinois, Second Tier Conference Center and Hotel | | | |
| | | Revenue Bonds, Series 2005B: | | | |
2,685 | | 5.250%, 1/01/30 | 1/16 at 100.00 | B– | 1,912,526 |
1,000 | | 5.250%, 1/01/36 | 1/16 at 100.00 | B– | 692,410 |
1,500 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion | 6/20 at 100.00 | AAA | 1,502,190 |
| | | Project, Capital Appreciation Refunding Series 2010B-1, 5.000%, 6/15/50 | | | |
447 | | Pingree Grove Village, Illinois, Tax Assessment Bonds, Special Service Area 1 – Cambridge | No Opt. Call | N/R | 434,819 |
| | | Lakes Project, Series 2005-1, 5.250%, 3/01/15 | | | |
1,500 | | Southwestern Illinois Development Authority, Illinois, Saint Clair County Comprehensive Mental | 6/17 at 103.00 | N/R | 1,431,195 |
| | | Health Center, Series 2007, 6.625%, 6/01/37 | | | |
1,000 | | Springfield, Sangamon County, Illinois, Special Service Area, Legacy Pointe, Special | 3/17 at 102.00 | N/R | 1,045,440 |
| | | Assessment Bonds, Series 2009, 7.875%, 3/01/32 | | | |
22,592 | | Total Illinois | | | 21,276,308 |
| | | Indiana – 3.4% | | | |
5,810 | | Indiana Finance Authority Health System Revenue Bonds, Sisters of St. Francis Health Services, | 11/19 at 100.00 | Aa3 | 6,068,428 |
| | | Inc. Obligated Group, Series 2009, 5.250%, 11/01/39 | | | |
1,395 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, Drexel Foundation For | 10/19 at 100.00 | BBB– | 1,485,396 |
| | | Educational Excellence, Inc., Series 2009A, 6.625%, 10/01/29 | | | |
2,000 | | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Clarian Health Obligation | 2/16 at 100.00 | A+ | 2,003,500 |
| | | Group, Series 2006A, 5.250%, 2/15/40 | | | |
9,205 | | Total Indiana | | | 9,557,324 |
| | | Kansas – 0.5% | | | |
1,500 | | Overland Park Development Corporation, Kansas, Second Tier Revenue Bonds, Overland Park | 1/17 at 100.00 | BBB– | 1,485,060 |
| | | Convention Center, Series 2007B, 5.125%, 1/01/22 – AMBAC Insured | | | |
Nuveen Investments 41
| | |
| | Nuveen Enhanced Municipal Value Fund (continued) |
NEV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Louisiana – 0.6% | | | |
$ 1,000 | | Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue | 11/17 at 100.00 | BB+ | $ 1,063,920 |
| | | Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 | | | |
555 | | Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, | 5/11 at 101.00 | BBB | 560,311 |
| | | Series 2001B, 5.875%, 5/15/39 | | | |
1,555 | | Total Louisiana | | | 1,624,231 |
| | | Maine – 0.8% | | | |
2,000 | | Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Tender Option Bond Trust | No Opt. Call | AA+ | 2,346,400 |
| | | 3597, 21.593%, 11/15/16 (IF) (4) | | | |
| | | Massachusetts – 4.0% | | | |
625 | | Massachusetts Educational Financing Authority, Student Loan Revenue Bonds, Issue I Series | 1/20 at 100.00 | AA | 683,050 |
| | | 2010A, 5.500%, 1/01/22 | | | |
1,000 | | Massachusetts Educational Financing Authority, Student Loan Revenue Bonds, Issue I Series | 1/20 at 100.00 | AA | 1,046,460 |
| | | 2010B, 5.500%, 1/01/23 | | | |
3,000 | | Massachusetts Health and Educational Facilities Authority Revenue Bonds, Quincy Medical Center | 1/18 at 100.00 | N/R | 2,820,720 |
| | | Issue, Series 2008A, 6.250%, 1/15/28 | | | |
1,710 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston College, | 6/13 at 100.00 | AA– | 2,340,631 |
| | | Tender Option Bond Trust 3115, 15.454%, 6/01/37 (IF) | | | |
2,385 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Emerson Hospital, | 8/15 at 100.00 | N/R | 2,081,843 |
| | | Series 2005E, 5.000%, 8/15/35 – RAAI Insured | | | |
2,300 | | Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk | 7/19 at 100.00 | BBB | 2,439,104 |
| | | University Issue, Series 2009A, 5.750%, 7/01/39 | | | |
11,020 | | Total Massachusetts | | | 11,411,808 |
| | | Michigan – 6.9% | | | |
9,650 | | Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2005, | No Opt. Call | AA+ | 10,387,257 |
| | | 5.250%, 5/01/27 – AGM Insured (4) | | | |
2,865 | | Marysville Public School District, St Claire County, Michigan, General Obligation Bonds, | 5/17 at 100.00 | AA+ | 2,968,713 |
| | | Series 2007, 5.000%, 5/01/32 – AGM Insured | | | |
4,600 | | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, | 11/19 at 100.00 | A1 | 4,773,834 |
| | | Refunding Series 2009, 5.750%, 11/15/39 | | | |
1,730 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Detroit Medical | 1/11 at 100.00 | BB– | 1,655,420 |
| | | Center Obligated Group, Series 1997A, 5.250%, 8/15/27 – AMBAC Insured | | | |
18,845 | | Total Michigan | | | 19,785,224 |
| | | Mississippi – 1.1% | | | |
500 | | Mississippi Business Finance Corporation, Gulf Opportunity Zone Revenue Bonds, Roberts Hotel | 2/21 at 102.00 | N/R | 512,665 |
| | | of Jackson, LLC Project, Series 2010, 8.500%, 2/01/30 | | | |
500 | | Mississippi Business Finance Corporation, Pollution Control Revenue Refunding Bonds, System | 4/11 at 100.00 | BBB | 502,500 |
| | | Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22 | | | |
2,000 | | Warren County, Mississippi, Gulf Opportunity Zone Revenue Bonds, International Paper Company | 5/20 at 100.00 | BBB | 2,107,500 |
| | | Project, Series 2010A, 5.800%, 5/01/34 | | | |
3,000 | | Total Mississippi | | | 3,122,665 |
| | | Missouri – 0.6% | | | |
1,000 | | Cole County Industrial Development Authority, Missouri, Revenue Bonds, Lutheran Senior | 2/14 at 100.00 | N/R | 1,001,680 |
| | | Services – Heisinger Project, Series 2004, 5.500%, 2/01/35 | | | |
640 | | St. Louis County Industrial Development Authority, Missouri, Revenue Bonds, Friendship Village | 9/17 at 100.00 | N/R | 646,694 |
| | | of West County, Series 2007A, 5.375%, 9/01/21 | | | |
1,640 | | Total Missouri | | | 1,648,374 |
| | | Nebraska – 1.8% | | | |
5,000 | | Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series 2007A, | 2/17 at 100.00 | Aa1 | 5,249,999 |
| | | 5.000%, 2/01/43 | | | |
42 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Nevada – 0.7% | | | |
$ 2,000 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran | 1/20 at 100.00 | Aa3 | $ 2,081,980 |
| | | International Airport, Series 2010A, 5.000%, 7/01/30 | | | |
| | | New Jersey – 0.8% | | | |
355 | | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental | 3/11 at 100.50 | B | 349,792 |
| | | Airlines Inc., Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax) | | | |
1,750 | | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2010-1A, | 12/19 at 100.00 | AA | 1,803,410 |
| | | 5.000%, 12/01/26 | | | |
2,105 | | Total New Jersey | | | 2,153,202 |
| | | New York – 2.6% | | | |
| | | Brooklyn Areba Local Development Corporation, New York, Payment in Lieu of Taxes Revenue | | | |
| | | Bonds, Barclays Center Project, Series 2009: | | | |
1,100 | | 6.000%, 7/15/30 | 1/20 at 100.00 | BBB– | 1,180,311 |
1,225 | | 6.250%, 7/15/40 | No Opt. Call | BBB– | 1,330,215 |
2,000 | | 6.375%, 7/15/43 | No Opt. Call | BBB– | 2,179,860 |
2,500 | | New York City Industrial Development Agency, New York, American Airlines-JFK International | 8/16 at 101.00 | B– | 2,658,800 |
| | | Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax) | | | |
6,825 | | Total New York | | | 7,349,186 |
| | | North Carolina – 2.1% | | | |
3,485 | | North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Duke University | 6/19 at 100.00 | AA | 3,638,166 |
| | | Health System, Series 2009A, 5.000%, 6/01/42 | | | |
2,000 | | North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Duke University | 6/19 at 100.00 | AA | 2,439,500 |
| | | Health System, Tender Option Bond Trust 11808, 21.518%, 6/01/35 (IF) | | | |
5,485 | | Total North Carolina | | | 6,077,666 |
| | | Ohio – 6.4% | | | |
150 | | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Healthcare Partners, Series | 6/20 at 100.00 | AA– | 152,277 |
| | | 2010A, 5.000%, 6/01/38 | | | |
| | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue | | | |
| | | Bonds, Senior Lien, Series 2007A-2: | | | |
3,000 | | 5.750%, 6/01/34 | 6/17 at 100.00 | BBB | 2,392,440 |
3,500 | | 6.500%, 6/01/47 | 6/17 at 100.00 | BBB | 2,940,945 |
3,000 | | 5.875%, 6/01/47 | 6/17 at 100.00 | BBB | 2,295,780 |
1,000 | | Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.750%, | 11/20 at 100.00 | BBB+ | 1,005,280 |
| | | 11/01/40 (WI/DD, Settling 11/04/10) | | | |
760 | | Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio Presbyterian Retirement | 7/21 at 100.00 | BBB | 778,156 |
| | | Services, Improvement Series 2010A, 5.625%, 7/01/26 | | | |
2,000 | | Greene County, Ohio, Hospital Facilities Revenue Bonds, Kettering Health Network Series 2009, | 4/19 at 100.00 | A | 2,064,840 |
| | | 5.375%, 4/01/34 | | | |
1,000 | | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, | 4/20 at 100.00 | BBB– | 1,026,630 |
| | | Refunding & improvement Series 2010, 6.375%, 4/01/30 | | | |
1,200 | | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation | No Opt. Call | BBB– | 1,304,700 |
| | | Project, Series 2009E, 5.625%, 10/01/19 | | | |
1,970 | | Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, Mortgage-Backed Securities | 9/18 at 100.00 | Aaa | 2,331,200 |
| | | Program, Tender Option Bond Trust 09-35W, 21.264%, 3/01/40 (IF) | | | |
500 | | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System | 1/14 at 100.00 | Aa2 | 518,485 |
| | | Obligated Group, Series 2009B, 5.500%, 1/01/34 | | | |
1,000 | | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System | No Opt. Call | Aa2 | 1,318,960 |
| | | Obligated Group, Tender Option Bond Trust 3591, 19.862%, 1/01/17 (IF) | | | |
19,080 | | Total Ohio | | | 18,129,693 |
| | | Oklahoma – 0.4% | | | |
1,155 | | Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, American Airlines Inc., Series 1992, | 1/11 at 100.00 | B– | 1,155,543 |
| | | 7.350%, 12/01/11 | | | |
Nuveen Investments 43
| | |
| | Nuveen Enhanced Municipal Value Fund (continued) |
NEV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Oregon – 0.7% | | | |
$ 185 | | Oregon, Economic Development Revenue Bonds, Georgia Pacific Corp., Series 1995CLVII, 6.350%, | 1/11 at 100.00 | BBB– | $ 184,991 |
| | | 8/01/25 (Alternative Minimum Tax) | | | |
370 | | Oregon, Economic Development Revenue Refunding Bonds, Georgia Pacific Corp., Series 1997-183, | 1/11 at 100.00 | Ba3 | 368,350 |
| | | 5.700%, 12/01/25 | | | |
1,500 | | Port Astoria, Oregon, Pollution Control Revenue Bonds, James River Project, Series 1993, | 1/11 at 100.00 | BBB– | 1,501,140 |
| | | 6.550%, 2/01/15 | | | |
2,055 | | Total Oregon | | | 2,054,481 |
| | | Pennsylvania – 6.3% | | | |
1,000 | | Allegheny Country Industrial Development Authority, Allegheny County, Pennsylvania, | No Opt. Call | BB | 1,104,280 |
| | | Environmental Improvement Revenue Bonds, United States Steel Corporation Project, Refunding | | | |
| | | Series 2009, 6.750%, 11/01/24 | | | |
1,335 | | Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, Ohio Valley | 4/15 at 100.00 | Ba2 | 1,149,582 |
| | | General Hospital, Series 2005A, 5.125%, 4/01/35 | | | |
1,500 | | Cumberland County Municipal Authority Revenue Bonds, Pennsylvania, Diakon Lutheran Social | 1/19 at 100.00 | N/R | 1,585,155 |
| | | Ministries Project, Series 2009, 6.125%, 1/01/29 | | | |
2,000 | | Luzerne County Industrial Development Authority, Pennsylvania, Guaranteed Lease Revenue Bonds, | 12/19 at 100.00 | N/R | 2,034,720 |
| | | Series 2009, 7.750%, 12/15/27 | | | |
| | | Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage | | | |
| | | Revenue Bonds, New Regional Medical Center Project, Tender Option Bond Trust 62B: | | | |
1,125 | | 17.530%, 8/01/38 (IF) | 8/20 at 100.00 | AA | 1,402,673 |
255 | | 19.040%, 8/01/38 (IF) | 8/20 at 100.00 | AA | 313,132 |
25 | | Northumberland County Industrial Development Authority, Pennsylvania, Facility Revenue Bonds, | 2/13 at 102.00 | N/R | 25,260 |
| | | NHS Youth Services Inc., Series 2002, 7.500%, 2/15/29 | | | |
1,000 | | Pennsylvania Economic Development Finance Authority, Solid Waste Disposal Revenue Bonds (USG | 12/10 at 101.00 | B+ | 973,680 |
| | | Corporation Project) Series 1999, 6.000%, 6/01/31 (Alternative Minimum Tax) | | | |
1,000 | | Pennsylvania Economic Development Financing Authority, Sewage Sludge Disposal Revenue Bonds, | 1/20 at 100.00 | Baa3 | 1,083,330 |
| | | Philadelphia Biosolids Facility Project, Series 2009, 6.250%, 1/01/32 | | | |
1,200 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Edinboro University | 7/20 at 100.00 | BBB– | 1,248,528 |
| | | Foundation Student Housing Project, Series 2010, 5.800%, 7/01/30 | | | |
525 | | Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2010-110A, | 10/19 at 100.00 | AA+ | 532,613 |
| | | 4.750%, 10/01/25 | | | |
4,000 | | Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Tender Option Bond | 4/19 at 100.00 | AA+ | 4,239,360 |
| | | Trust 4657, 15.732%, 10/01/29 (IF) (4) | | | |
3,000 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Capital Appreciation Series 2009E, | 12/27 at 100.00 | A– | 2,261,940 |
| | | 0.000%, 12/01/30 | | | |
17,965 | | Total Pennsylvania | | | 17,954,253 |
| | | Puerto Rico – 0.4% | | | |
1,000 | | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005C, | No Opt. Call | A3 | 1,084,430 |
| | | 5.500%, 7/01/27 – AMBAC Insured | | | |
| | | Tennessee – 1.0% | | | |
1,000 | | Maury County Industrial Development Board, Tennessee, Multi-Modal Interchangeable Rate | 3/11 at 100.00 | C | 995,920 |
| | | Pollution Control Revenue Refunding Bonds, Saturn Corporation, Series 1994, 6.500%, 9/01/24 | | | |
500 | | Memphis Health, Educational and Housing Facilities Board, Tennessee, Multifamily Housing | 12/20 at 100.00 | A– | 499,975 |
| | | Revenue Bonds, Goodwill Village Apartments, Series 2010A, 5.500%, 12/01/30 | | | |
50 | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006A, 5.250%, 9/01/24 | No Opt. Call | BB+ | 51,690 |
1,000 | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006B, 5.625%, 9/01/26 | No Opt. Call | N/R | 1,014,080 |
155 | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006C, 5.000%, 2/01/24 | No Opt. Call | A | 160,157 |
2,705 | | Total Tennessee | | | 2,721,822 |
| | | Texas – 3.8% | | | |
3,000 | | La Vernia Higher Education Financing Corporation, Texas, Charter School Revenue Bonds, Kipp | 8/19 at 100.00 | BBB | 3,180,690 |
| | | Inc., Series 2009A, 6.250%, 8/15/39 | | | |
500 | | Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds, TXU Electric | No Opt. Call | CCC | 475,225 |
| | | Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) | | | |
44 Nuveen Investments
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Texas (continued) | | | |
$ 255 | | Houston, Texas, Airport System Special Facilities Revenue Bonds, Continental Airlines Inc. – | 1/11 at 100.00 | B3 | $ 249,115 |
| | | Airport Improvement Project, Series 1997C, 6.125%, 7/15/27 (Alternative Minimum Tax) | | | |
1,250 | | Sabine River Authority, Texas, Pollution Control Revenue Bonds, TXU Energy Company LLC | No Opt. Call | CCC | 1,188,063 |
| | | Project, Series 2001B, 5.750%, 5/01/30 (Mandatory put 11/01/11) (Alternative Minimum Tax) | | | |
1,000 | | Tarrant County Cultural and Educational Facilities Finance Corporation, Texas, Retirement | 11/11 at 100.00 | N/R | 1,004,550 |
| | | Facility Revenue Bonds, C.C. Young Memorial Home Project, Series 2009-B2, 6.500%, 2/15/14 | | | |
455 | | Texas Municipal Gas Acquisition and Supply Corporation I, Gas Supply Revenue Bonds, Senior | No Opt. Call | A | 512,021 |
| | | Lien Series 2008D, 6.250%, 12/15/26 | | | |
810 | | Texas Private Activity Bond Surface Transportation Corporation, Senior Lien Revenue Bonds, NTE | 12/19 at 100.00 | Baa2 | 881,985 |
| | | Mobility Partners LLC North Tarrant Express Managed Lanes Project, Series 2009, | | | |
| | | 6.875%, 12/31/39 | | | |
1,000 | | Texas Private Activity Bond Surface Transportation Corporation, Senior Lien Revenue Bonds, LBJ | 6/20 at 100.00 | Baa3 | 1,097,070 |
| | | Infrastructure Group LLC IH-635 Managed Lanes Project, Series 2010, 7.000%, 6/30/34 | | | |
1,500 | | Texas Public Finance Authority, Charter School Finance Corporation Revenue Bonds, Idea Public | 8/17 at 100.00 | BBB | 1,385,520 |
| | | School Project, Series 2007A, 5.000%, 8/15/37 – ACA Insured | | | |
5,000 | | Texas Turnpike Authority, Central Texas Turnpike System Revenue Bonds, Second Tier Series | 8/12 at 22.71 | BBB+ | 922,050 |
| | | 2002, 0.000%, 8/15/37 – AMBAC Insured | | | |
14,770 | | Total Texas | | | 10,896,289 |
| | | Utah – 1.4% | | | |
2,400 | | Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, Inc., Tender Option Bonds Trust | 8/19 at 100.00 | AA+ | 2,910,720 |
| | | 3602, 22.102%, 2/15/35 (IF) | | | |
1,000 | | Utah State Charter School Finance Authority, Charter School Revenue Bonds, Paradigm High | 7/20 at 100.00 | BBB– | 1,024,000 |
| | | School, Series 2010A, 6.250%, 7/15/30 | | | |
3,400 | | Total Utah | | | 3,934,720 |
| | | Virgin Islands – 0.1% | | | |
250 | | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Subordinate | 10/19 at 100.00 | Baa3 | 264,303 |
| | | Lien Series 2009A, 6.000%, 10/01/39 | | | |
| | | Virginia – 1.2% | | | |
105 | | Bedford County Industrial Development Authority, Virginia, Industrial Development Revenue | 12/10 at 100.50 | Ba3 | 105,123 |
| | | Refunding Bonds, Nekoosa Packaging Corporation, Series 1999, 6.300%, 12/01/25 (Alternative | | | |
| | | Minimum Tax) | | | |
2,000 | | Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset Backed Bonds, | 6/17 at 100.00 | BBB | 1,411,660 |
| | | Series 2007B1, 5.000%, 6/01/47 | | | |
1,640 | | Virginia State Housing Development Authority, Rental Housing Revenue Bonds, Tender Option | No Opt. Call | AA+ | 1,848,772 |
| | | Bonds Trust 11799, 20.624%, 4/01/17 (IF) | | | |
3,745 | | Total Virginia | | | 3,365,555 |
| | | Washington – 1.5% | | | |
2,000 | | Washington State Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer | 7/19 at 100.00 | A | 2,104,680 |
| | | Research Center, Series 2009A, 6.000%, 1/01/33 | | | |
2,000 | | Washington State Higher Education Facilities Authority, Revenue Bonds, Whitworth University, | 10/19 at 100.00 | Baa1 | 2,048,500 |
| | | Series 2009, 5.625%, 10/01/40 | | | |
4,000 | | Total Washington | | | 4,153,180 |
| | | West Virginia – 0.2% | | | |
585 | | West Virginia Hospital Finance Authority, Hospital Revenue Bonds, Thomas Health System, Inc., | 10/18 at 100.00 | N/R | 581,233 |
| | | Series 2008, 6.500%, 10/01/38 | | | |
| | | Wisconsin – 3.5% | | | |
1,225 | | Milwaukee Redevelopment Authority, Wisconsin, Schlitz Park Mortgage Revenue Refunding Bonds, | 1/11 at 100.00 | N/R | 1,212,297 |
| | | Series 1998A, 5.500%, 1/01/17 (Alternative Minimum Tax) | | | |
1,670 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Ascension Health, Tender | No Opt. Call | Aa1 | 2,121,885 |
| | | Option Bond Trust Series 2010- 3158, 25.657%, 1/15/17 (IF) | | | |
1,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Beloit College, Series | 6/15 at 100.00 | Baa2 | 1,048,970 |
| | | 2010A, 6.000%, 6/01/30 | | | |
Nuveen Investments 45
| | |
| | Nuveen Enhanced Municipal Value Fund (continued) |
NEV | Portfolio of Investments October 31, 2010 |
| | | | | | |
Principal | | | Optional Call | | |
Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | | Wisconsin (continued) | | | |
$ 500 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Beloit Health System, | 4/20 at 100.00 | N/R | $ 489,640 |
| | | Inc., Series 2010B, 5.000%, 4/01/30 | | | |
| | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Froedtert Community | | | |
| | | Health, Inc. Obligated Group, Tender Option Bond Trust 3592: | | | |
1,000 | | 21.843%, 4/01/17 (IF) | No Opt. Call | AA– | 1,173,450 |
1,000 | | 23.094%, 4/01/17 (IF) | No Opt. Call | AA– | 1,274,650 |
2,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan | 8/16 at 100.00 | BBB+ | 2,048,980 |
| | | Healthcare System, Series 2006, 5.250%, 8/15/21 | | | |
500 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan | 8/16 at 100.00 | BBB+ | 481,015 |
| | | Services Inc., Series 2006B, 5.125%, 8/15/30 | | | |
8,895 | | Total Wisconsin | | | 9,850,887 |
$ 280,169 | | Total Investments (cost $267,650,483) – 98.6% | | | 280,818,487 |
| | | Other Assets Less Liabilities – 1.4% | | | 3,863,482 |
| | | Net Assets – 100% | | | $ 284,681,969 |
| | | | | | | | | |
Investments in Derivatives | | | | | | | |
Forward Swaps outstanding at October 31, 2010: | | | | | | | |
| | | Fund | | | Fixed Rate | | | Unrealized |
| | Notional | Pay/Receive | Floating Rate | Fixed Rate | Payment | Effective | Termination | Appreciation |
Counterparty | Amount | Floating Rate | Index | (Annualized) | Frequency | Date (6) | Date | (Depreciation) |
Barclays Bank PLC | $5,000,000 | Receive | 3-Month USD-LIBOR | 4.705% | Semi-Annually | 2/11/11 | 2/11/40 | $ (926,346) |
JPMorgan Chase & Company | 3,000,000 | Receive | 3-Month USD-LIBOR | 4.758 | Semi-Annually | 1/14/11 | 1/14/40 | (594,831) |
Morgan Stanley | 3,250,000 | Receive | 3-Month USD-LIBOR | 4.698 | Semi-Annually | 1/28/11 | 1/28/40 | (602,985) |
| | | | | | | | | $(2,124,162) |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives and/or inverse floating rate transactions. |
| (5) | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| (6) | Effective date represents the date on which both the Fund and Counterparty commence interest payment accruals on each forward swap contract. |
| WI/DD | Purchased on a when-issued or delayed delivery basis. |
| (IF) | Inverse floating rate investment. |
| USD-LIBOR | United States Dollar-London Inter-Bank Offered Rate. |
See accompanying notes to financial statements.
46 Nuveen Investments
| | | | | | | | | | | | | |
Statement of | | | | | | | | | | | | |
| Assets & Liabilities | | | | | | October 31, 2010 | | | | |
| | | | | | | | | Enhanced | |
| | | | | | Municipal | | | Municipal | | | Municipal | |
| | | Municipal Value | | | Value 2 | | | Income | | | Value | |
| | | (NUV) | | | (NUW) | | | (NMI) | | | (NEV) | |
Assets | | | | | | | | | | | | |
Investments, at value (cost $1,891,176,876, $180,101,427, $85,976,152 | | | | | | | | | | | | |
and $267,650,483, respectively) | | $ | 1,957,938,961 | | | $ | 212,491,997 | | | $ | 90,459,519 | | | $ | 280,818,487 | |
Cash | | | 2,320,432 | | | | 473,094 | | | | 311,435 | | | | 2,662,926 | |
Receivables: | | | | | | | | | | | | | | | | |
Interest | | | 29,424,895 | | | | 4,078,754 | | | | 1,572,891 | | | | 6,466,182 | |
Investments sold | | | 563,440 | | | | — | | | | 420,000 | | | | — | |
Other assets | | | 437,362 | | | | 2,521 | | | | 2,254 | | | | 3,418 | |
Total assets | | | 1,990,685,090 | | | | 217,046,366 | | | | 92,766,099 | | | | 289,951,013 | |
Liabilities | | | | | | | | | | | | | | | | |
Floating rate obligations | | | 38,250,000 | | | | — | | | | 3,335,000 | | | | — | |
Unrealized depreciation on forward swaps | | | — | | | | — | | | | — | | | | 2,124,162 | |
Payables: | | | | | | | | | | | | | | | | |
Dividends | | | 6,445,572 | | | | 740,668 | | | | 335,672 | | | | 1,341,183 | |
Interest | | | — | | | | — | | | | — | | | | 38,219 | |
Investments purchased | | | — | | | | — | | | | — | | | | 1,484,755 | |
Accrued expenses: | | | | | | | | | | | | | | | | |
Management fees | | | 856,694 | | | | 117,753 | | | | 48,018 | | | | 226,363 | |
Other | | | 1,038,377 | | | | 42,084 | | | | 38,949 | | | | 54,362 | |
Total liabilities | | | 46,590,643 | | | | 900,505 | | | | 3,757,639 | | | | 5,269,044 | |
Net assets | | $ | 1,944,094,447 | | | $ | 216,145,861 | | | $ | 89,008,460 | | | $ | 284,681,969 | |
Shares outstanding | | | 197,881,125 | | | | 12,829,838 | | | | 8,213,659 | | | | 19,256,862 | |
Net asset value per share outstanding | | $ | 9.82 | | | $ | 16.85 | | | $ | 10.84 | | | $ | 14.78 | |
Net assets consist of: | | | | | | | | | | | | | | | | |
Shares, $.01 par value per share | | $ | 1,978,811 | | | $ | 128,298 | | | $ | 82,137 | | | $ | 192,569 | |
Paid-in surplus | | | 1,865,044,485 | | | | 183,623,605 | | | | 91,856,091 | | | | 275,084,547 | |
Undistributed (Over-distribution of) net investment income | | | 10,460,022 | | | | (280,802 | ) | | | 922,772 | | | | 1,307,825 | |
Accumulated net realized gain (loss) | | | (150,956 | ) | | | 284,190 | | | | (8,335,907 | ) | | | (2,946,814 | ) |
Net unrealized appreciation (depreciation) | | | 66,762,085 | | | | 32,390,570 | | | | 4,483,367 | | | | 11,043,842 | |
Net assets | | $ | 1,944,094,447 | | | $ | 216,145,861 | | | $ | 89,008,460 | | | $ | 284,681,969 | |
Authorized shares | | | 350,000,000 | | | Unlimited | | | | 200,000,000 | | | Unlimited | |
See accompanying notes to financial statements.
Nuveen Investments 47
| | | | | | | | | | | | | |
Statement of | | | | | | | | | | | | |
Operations | | | | | | | Year Ended October 31, 2010 | | | | |
| | | | | | | | |
| | | | | | Municipal | | | Municipal | | | Municipal | |
| | | Municipal Value | | | Value 2 | | | Income | | | Value | |
| | | (NUV) | | | (NUW) | | | (NMI) | | | (NEV) | |
Investment Income | | $ | 108,095,258 | | | $ | 13,029,325 | | | $ | 5,418,586 | | | $ | 21,069,374 | |
Expenses | | | | | | | | | | | | | | | | |
Management fees | | | 10,156,707 | | | | 1,313,968 | | | | 554,064 | | | | 2,640,745 | |
Shareholders’ servicing agent fees and expenses | | | 335,949 | | | | 298 | | | | 17,872 | | | | 224 | |
Interest expense | | | 185,252 | | | | — | | | | 14,722 | | | | 109,704 | |
Custodian’s fees and expenses | | | 311,503 | | | | 38,326 | | | | 22,867 | | | | 57,066 | |
Directors’/Trustees’ fees and expenses | | | 46,594 | | | | 5,079 | | | | 2,119 | | | | 9,225 | |
Professional fees | | | 257,031 | | | | 23,816 | | | | 13,557 | | | | 43,929 | |
Shareholders’ reports – printing and mailing expenses | | | 230,031 | | | | 34,064 | | | | 24,103 | | | | 28,854 | |
Stock exchange listing fees | | | 70,381 | | | | 7,831 | | | | 9,238 | | | | 7,570 | |
Other expenses | | | 71,552 | | | | 22,145 | | | | 6,864 | | | | 20,691 | |
Total expenses before custodian fee credit | | | 11,665,000 | | | | 1,445,527 | | | | 665,406 | | | | 2,918,008 | |
Custodian fee credit | | | (10,649 | ) | | | (1,256 | ) | | | (1,279 | ) | | | (5,261 | ) |
Net expenses | | | 11,654,351 | | | | 1,444,271 | | | | 664,127 | | | | 2,912,747 | |
Net investment income | | | 96,440,907 | | | | 11,585,054 | | | | 4,754,459 | | | | 18,156,627 | |
Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | |
Investments | | | 3,976,235 | | | | 284,334 | | | | 55,664 | | | | (2,117,482 | ) |
Forward swaps | | | — | | | | — | | | | — | | | | (858,333 | ) |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments | | | 55,534,861 | | | | 7,974,062 | | | | 3,560,727 | | | | 23,896,826 | |
Forward swaps | | | — | | | | — | | | | — | | | | (2,124,162 | ) |
Net realized and unrealized gain (loss) | | | 59,511,096 | | | | 8,258,396 | | | | 3,616,391 | | | | 18,796,849 | |
Net increase (decrease) in net assets from operations | | $ | 155,952,003 | | | $ | 19,843,450 | | | $ | 8,370,850 | | | $ | 36,953,476 | |
See accompanying notes to financial statements.
| | | | | | | | | | | | | |
Statement of | | | | | | | | | | | | |
| Changes in Net Assets | | | | | | | |
| | | Municipal Value (NUV) | | | Municipal Value 2 (NUW) | |
| | | | | | | | | | | | For the | |
| | | | | | | | | | | | Period 2/25/09 | |
| | | | | | | | | | | | (commencement | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | of operations) | |
| | | 10/31/10 | | | 10/31/09 | | | 10/31/10 | | | through 10/31/09 | |
Operations | | | | | | | | | | | | |
Net investment income | | $ | 96,440,907 | | | $ | 96,541,783 | | | $ | 11,585,054 | | | $ | 6,262,135 | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | |
Investments | | | 3,976,235 | | | | 29,365 | | | | 284,334 | | | | 123,012 | |
Forward swaps | | | — | | | | — | | | | — | | | | — | |
Futures contracts | | | — | | | | — | | | | — | | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments | | | 55,534,861 | | | | 173,519,317 | | | | 7,974,062 | | | | 24,416,508 | |
Forward swaps | | | — | | | | — | | | | — | | | | — | |
Futures contracts | | | — | | | | — | | | | — | | | | — | |
Net increase (decrease) in net assets from operations | | | 155,952,003 | | | | 270,090,465 | | | | 19,843,450 | | | | 30,801,655 | |
Distributions to Shareholders | | | | | | | | | | | | | | | | |
From net investment income | | | (92,765,935 | ) | | | (92,292,691 | ) | | | (11,478,612 | ) | | | (6,649,379 | ) |
From accumulated net realized gains | | | (1,004,873 | ) | | | — | | | | (123,156 | ) | | | — | |
Decrease in net assets from distributions to shareholders | | | (93,770,808 | ) | | | (92,292,691 | ) | | | (11,601,768 | ) | | | (6,649,379 | ) |
Capital Share Transactions | | | | | | | | | | | | | | | | |
Proceeds from sale of shares, net of offering costs | | | — | | | | — | | | | — | | | | 180,117,000 | |
Net proceeds from shares issued | | | | | | | | | | | | | | | | |
to shareholders due to | | | | | | | | | | | | | | | | |
reinvestment of distributions | | | 9,881,917 | | | | 9,815,879 | | | | 2,195,521 | | | | 1,339,107 | |
Net increase (decrease) in net assets | | | | | | | | | | | | | | | | |
from capital share transactions | | | 9,881,917 | | | | 9,815,879 | | | | 2,195,521 | | | | 181,456,107 | |
Net increase (decrease) in net assets | | | 72,063,112 | | | | 187,613,653 | | | | 10,437,203 | | | | 205,608,383 | |
Net assets at the beginning of period | | | 1,872,031,335 | | | | 1,684,417,682 | | | | 205,708,658 | | | | 100,275 | |
Net assets at the end of period | | $ | 1,944,094,447 | | | $ | 1,872,031,335 | | | $ | 216,145,861 | | | $ | 205,708,658 | |
Undistributed (Over-distribution of) | | | | | | | | | | | | | | | | |
net investment income at the end of period | | $ | 10,460,022 | | | $ | 6,984,529 | | | $ | (280,802 | ) | | $ | (387,244 | ) |
See accompanying notes to financial statements.
Nuveen Investments 49
| | | | | | | | | | | | | |
Statement of | | | | | | | | | | | | |
Changes in Net Assets (continued) | | | | | | | | | | | | |
| | | | | | | | | Enhanced Municipal | |
| | | Municipal Income (NMI) | | | Value (NEV) | |
| | | | | | | | | | | | For the | |
| | | | | | | | | | | | Period 9/25/09 | |
| | | | | | | | | | | | (commencement | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | of operations) | |
| | | 10/31/10 | | | 10/31/09 | | | 10/31/10 | | | through 10/31/09 | |
Operations | | | | | | | | | | | | |
Net investment income | | $ | 4,754,459 | | | $ | 4,646,271 | | | $ | 18,156,627 | | | $ | 718,295 | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | |
Investments | | | 55,664 | | | | (587,919 | ) | | | (2,117,482 | ) | | | 17,480 | |
Forward swaps | | | — | | | | — | | | | (858,333 | ) | | | — | |
Futures contracts | | | — | | | | 196,281 | | | | — | | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments | | | 3,560,727 | | | | 8,919,687 | | | | 23,896,826 | | | | (10,728,822 | ) |
Forward swaps | | | — | | | | — | | | | (2,124,162 | ) | | | — | |
Futures contracts | | | — | | | | 100,144 | | | | — | | | | — | |
Net increase (decrease) in net assets from operations | | | 8,370,850 | | | | 13,274,464 | | | | 36,953,476 | | | | (9,993,047 | ) |
Distributions to Shareholders | | | | | | | | | | | | | | | | |
From net investment income | | | (4,643,516 | ) | | | (4,316,357 | ) | | | (17,538,148 | ) | | | — | |
From accumulated net realized gains | | | — | | | | — | | | | (17,298 | ) | | | — | |
Decrease in net assets from distributions to shareholders | | | (4,643,516 | ) | | | (4,316,357 | ) | | | (17,555,446 | ) | | | — | |
Capital Share Transactions | | | | | | | | | | | | | | | | |
Proceeds from sale of shares, net of offering costs | | | — | | | | — | | | | 20,013,000 | | | | 254,451,000 | |
Net proceeds from shares issued | | | | | | | | | | | | | | | | |
to shareholders due to | | | | | | | | | | | | | | | | |
reinvestment of distributions | | | 398,065 | | | | 371,854 | | | | 712,711 | | | | — | |
Net increase (decrease) in net assets | | | | | | | | | | | | | | | | |
from capital share transactions | | | 398,065 | | | | 371,854 | | | | 20,725,711 | | | | 254,451,000 | |
Net increase (decrease) in net assets | | | 4,125,399 | | | | 9,329,961 | | | | 40,123,741 | | | | 244,457,953 | |
Net assets at the beginning of period | | | 84,883,061 | | | | 75,553,100 | | | | 244,558,228 | | | | 100,275 | |
Net assets at the end of period | | $ | 89,008,460 | | | $ | 84,883,061 | | | $ | 284,681,969 | | | $ | 244,558,228 | |
Undistributed (Over-distribution of) | | | | | | | | | | | | | | | | |
net investment income at the end of period | | $ | 922,772 | | | $ | 823,990 | | | $ | 1,307,825 | | | $ | 718,295 | |
See accompanying notes to financial statements.
50 Nuveen Investments
Notes to
Financial Statements
1. General Information and Significant Accounting Policies
The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) symbols are Nuveen Municipal Value Fund, Inc. (NUV), Nuveen Municipal Value Fund 2 (NUW), Nuveen Municipal Income Fund, Inc. (NMI) and Nuveen Enhanced Municipal Value Fund (NEV) (collectively, the “Funds”). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, registered investment companies.
Prior to the commencement of operations, Municipal Value 2 (NUW) and Enhanced Municipal Value (NEV) had no operations other than those related to organizational matters, the initial capital contribution for each Fund of $100,275 by Nuveen Asset Management (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), and the recording of each Fund’s organization expense ($15,000 for each Fund) and their reimbursement by Nuveen Investments, LLC, also a wholly-owned subsidiary of Nuveen.
Each Fund’s primary investment objective is to provide current income exempt from regular federal income tax by investing primarily in a portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Prices of municipal bonds and forward swap contracts are provided by a pricing service approved by the Funds’ Board of Directors/Trustees. These securities are generally classified as Level 2. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pr icing service may consider information provided by the Adviser in establishing a fair valuation for the security. These securities are generally classified as Level 2 or Level 3, depending on the priority of the significant inputs.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, at the mean of the bid and ask prices. Futures contracts are generally classified as Level 1.
Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. These securities are generally classified as Level 1 or Level 2, which is usually the case for municipal bonds.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but be fore the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors/Trustees or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Nuveen Investments 51
Notes to
Financial Statements (continued)
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At October 31, 2010, Enhanced Municipal Value (NEV) had outstanding when-issued/delayed delivery purchase commitments of $1,484,755. There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in mo st circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.R 21; An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of
52 Nuveen Investments
the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense on the Statement of Operations.
During the fiscal year ended October 31, 2010, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
| | | | | |
At October 31, 2010, each Fund’s maximum exposure to externally-deposited Recourse Trusts is as follows: | | | |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value (NUV) | Value 2 (NUW) | Income (NMI) | Value (NEV) |
Maximum exposure to Recourse Trusts | $7,500,000 | $23,665,000 | $3,485,000 | $129,860,000 |
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended October 31, 2010, were as follows:
| | | |
| | Municipal | Municipal |
| | Value (NUV) | Income (NMI) |
Average floating rate obligations outstanding | $38,250,000 | $3,335,000 |
Average annual interest rate and fees | 0.48% | 0.44% |
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts consistent with its investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).
Each Fund’s use of forward interest rate swap transactions is intended to help a Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align a Fund’s interest rate sensitivity with that of the broader market. Forward interest rate swap transactions involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). The value of a Fund’s swap commitment would increase or decrease based prima rily on the extent to which long-term interest rates for bonds having a maturity of the swap’s termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on forward swaps” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of forward swaps.”
Each Fund may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as a component of “Net realized gain (loss) from forward swaps.” Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination.
The following Fund invested in forward interest rate swap transactions during the fiscal year ended October 31, 2010. The average notional amount of forward interest rate swap contracts outstanding during the fiscal year ended October 31, 2010, was as follows:
| | |
| | Enhanced |
| | Municipal |
| | Value (NEV) |
Average notional amount of forward interest rate swap contracts outstanding* | $10,450,000 |
* The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.
Refer to Footnote 3 — Derivative Instruments and Hedging Activities for further details on forward interest rate swap contract activity.
Nuveen Investments 53
Notes to
Financial Statements (continued)
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the “initial margin.” Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the contract are recorded as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract and is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. The Funds did not enter into futures contracts during the fiscal year ended October 31, 2010.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Organization and Offering Costs
Nuveen Investments, LLC has agreed to reimburse all organization expenses ($15,000 for each Fund) and pay all offering costs (other than the sales load) that exceed $.03 per share of each Municipal Value 2’s (NUW) and Enhanced Municipal Value’s (NEV) shares. Municipal Value 2’s (NUW) and Enhanced Municipal Value’s (NEV) share offering costs ($378,000 and $576,000, respectively) were recorded as reductions of the proceeds from each Fund’s sale of shares.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds’ organizational documents, their officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be
54 Nuveen Investments
made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
In determining the fair value of each Fund’s investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2010:
| | | | | | | | | | | | | |
Municipal Value (NUV) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments: | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | $ | 1,957,938,961 | | | $ | — | | | $ | 1,957,938,961 | |
| | | | | | | | | | | | | | | | | |
Municipal Value 2 (NUW) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments: | | | | | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | $ | 212,491,997 | | | $ | — | | | $ | 212,491,997 | |
| | | | | | | | | | | | | | | | | |
Municipal Income (NMI) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments: | | | | | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | $ | 90,433,498 | | | $ | 26,021 | | | $ | 90,459,519 | |
| | | | | | | | | | | | | | | | | |
Enhanced Municipal Value (NEV) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments: | | | | | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | $ | 280,629,252 | | | $ | 189,235 | | | $ | 280,818,487 | |
Derivatives: | | | | | | | | | | | | | | | | |
Forward Swaps* | | | — | | | | (2,124,162 | ) | | | — | | | | (2,124,162 | ) |
Total | | $ | — | | | $ | 278,505,090 | | | $ | 189,235 | | | $ | 278,694,325 | |
* Represents net unrealized appreciation (depreciation).
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
| | | | | | | |
| | | | | | Enhanced | |
| | | Municipal | | | Municipal | |
| | | Income (NMI) | | | Value (NEV) | |
| | | Level 3 | | | Level 3 | |
| | | | Municipal | | | Municipal | |
| | | | Bonds | | | Bonds | |
Balance at the beginning of year | | $ | — | | | $ | — | |
Gains (losses): | | | | | | | | |
Net realized gains (losses) | | | — | | | | — | |
Net change in unrealized appreciation (depreciation) | | | — | | | | — | |
Net purchases at cost (sales at proceeds) | | | — | | | | — | |
Net discounts (premiums) | | | — | | | | — | |
Net transfers in to (out of) at end of year fair value | | | 26,021 | | | | 189,235 | |
Balance at the end of year | | $ | 26,021 | | | $ | 189,235 | |
“Change in net unrealized appreciation (depreciation) of investments” presented on the Statement of Operations includes net unrealized appreciation (depreciation) related to securities classified as Level 3 at year end as follows:
| | | |
| | | Enhanced |
| | Municipal | Municipal |
| | Income | Value |
| | (NMI) | (NEV) |
Level 3 net unrealized appreciation (depreciation) | $254,805 | $(28,410) |
Nuveen Investments 55
Notes to
Financial Statements (continued)
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 - General Information and Significant Accounting Policies.
The following table presents the fair value of all derivative instruments held by the Funds as of October 31, 2010, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure. Enhanced Municipal Value (NEV) invested in derivative instruments during the fiscal year ended October 31, 2010.
| | | | | | | |
Enhanced Municipal Value (NEV) | | | | | |
| | | Location on the Statement of Assets and Liabilities |
Underlying | Derivative | Asset Derivatives | | | Liability Derivatives |
Risk Exposure | Instrument | Location | Value | | Location | Value |
Interest Rate | Forward Swaps | Unrealized appreciation | | | Unrealized depreciation | |
| | | on forward swaps* | $ — | | on forward swaps* | $2,124,162 |
| * Represents cumulative unrealized appreciation (depreciation) of swap contracts as reported in the Portfolio of Investments. |
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended October 31, 2010, on derivative instruments, as well as the primary risk exposure associated with each.
| | |
| | Enhanced Municipal Value |
| Net Realized Gain (Loss) from Forward Swaps | (NEV) |
Risk Exposure | |
Interest Rate | $(858,333) |
| | Enhanced
Municipal
Value |
| Change in Net Unrealized Appreciation (Depreciation) of Forward Swaps | (NEV) |
Risk Exposure | |
Interest Rate | $(2,124,162) |
4. Fund Shares
The Funds did not repurchase and retire any of their outstanding shares during the fiscal years ended October 31, 2010, and October 31, 2009.
| | | | | | |
Transactions in shares were as follows: | | | | | |
| | Municipal Value (NUV) | | Municipal Value 2 (NUW) |
| | | | | | For the |
| | | | | | Period 2/25/09 |
| | | | | | (commencement |
| | Year | Year | | Year | of operations) |
| | Ended | Ended | | Ended | through |
| | 10/31/10 | 10/31/09 | | 10/31/10 | 10/31/09 |
Shares sold | — | — | | — | 12,600,000 |
Shares issued to shareholders | | | | | |
due to reinvestment of distributions | 1,023,405 | 1,101,278 | | 133,359 | 89,479 |
| | | | | | |
| | | | | Enhanced Municipal |
| | Municipal Income (NMI) | | Value (NEV) |
| | | | | | For the |
| | | | | | Period 9/25/09 |
| | | | | | (commencement |
| | Year | Year | | Year | of operations) |
| | Ended | Ended | | Ended | through |
| | 10/31/10 | 10/31/09 | | 10/31/10 | 10/31/09 |
Shares sold | — | — | | 1,400,000 | 17,800,000 |
Shares issued to shareholders | | | | | |
due to reinvestment of distributions | 37,308 | 38,222 | | 49,862 | — |
56 Nuveen Investments
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended October 31, 2010, were as follows:
| | | | | |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value (NUV) | Value 2 (NUW) | Income (NMI) | Value (NEV) |
Purchases | $161,525,642 | $8,470,205 | $12,497,890 | $126,342,808 |
Sales and maturities | 157,843,672 | 8,734,044 | 12,312,991 | 73,690,633 |
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investments transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2010, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
| | | | | |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value (NUV) | Value 2 (NUW) | Income (NMI) | Value (NEV) |
Cost of investments | $1,851,796,094 | $179,680,682 | $82,505,412 | $267,472,278 |
Gross unrealized: | | | | |
Appreciation | $ 142,490,705 | $ 32,811,315 | $ 5,719,186 | $ 15,151,603 |
Depreciation | (74,597,764) | — | (1,100,543) | (1,805,394) |
Net unrealized appreciation (depreciation) of investments | $ 67,892,941 | $ 32,811,315 | $ 4,618,643 | $ 13,346,209 |
Permanent differences, primarily due to federal taxes paid, taxable market discount and distribution character reclassifications, resulted in | |
reclassifications among the Funds’ components of net assets at October 31, 2010, the Funds’ tax year end, as follows: | | |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value | Value 2 | Income | Value |
| | (NUV) | (NUW) | (NMI) | (NEV) |
Paid-in-surplus | $ — | $ — | $ 2,467 | $ 130 |
Undistributed (Over-distribution of) net investment income | (199,479) | — | (12,161) | (28,949) |
Accumulated net realized gain (loss) | 199,479 | — | 9,694 | 28,819 |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at October 31, 2010, the Funds’ tax year end, were as follows:
| | | | | |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value | Value 2 | Income | Value |
| | (NUV) | (NUW) | (NMI) | (NEV) |
Undistributed net tax-exempt income * | $12,606,689 | $257,771 | $1,139,619 | $2,585,881 |
Undistributed net ordinary income ** | 131,734 | 39,004 | 38,025 | 7,258 |
Undistributed net long-term capital gains | 4,157,153 | 248,104 | — | — |
| * | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 1, 2010, paid on November 1, 2010. |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
Nuveen Investments 57
Notes to
Financial Statements (continued)
The tax character of distributions paid during the Funds’ tax years ended October 31, 2010, and October 31, 2009, was designated for purposes of the dividends paid deduction as follows:
| | | | | |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value | Value 2 | Income | Value |
2010 | (NUV) | (NUW) | (NMI) | (NEV) |
Distributions from net tax-exempt income *** | $92,351,671 | $11,468,610 | $4,637,655 | $16,074,626 |
Distributions from net ordinary income ** | 374,351 | 123,156 | — | 17,298 |
Distributions from net long-term capital gains **** | 1,004,873 | — | — | — |
| | | | | Enhanced |
| | Municipal | Municipal | Municipal | Municipal |
| | Value | Value 2 | Income | Value |
2009 | (NUV) | (NUW)***** | (NMI) | (NEV)****** |
Distributions from net tax-exempt income | $91,855,449 | $5,697,143 | $4,273,870 | $ — |
Distributions from net ordinary income ** | 394,292 | — | — | — |
Distributions from net long-term capital gains | — | — | — | — |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
| *** | The Funds hereby designate these amounts paid during the fiscal year ended October 31, 2010, as Exempt Interest Dividends. |
| **** | The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852 (b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2010. |
| ***** | For the period February 25, 2009 (commencement of operations) through October 31, 2009. |
| ****** | For the period September 25, 2009 (commencement of operations) through October 31, 2009. |
At October 31, 2010, the Funds’ tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
| | | |
| | | Enhanced |
| | Municipal | Municipal |
| | Income | Value |
| | (NMI) | (NEV) |
Expiration: | | |
October 31, 2011 | $6,799,386 | $ — |
October 31, 2012 | 916,759 | — |
October 31, 2013 | 165,764 | — |
October 31, 2016 | 164,175 | — |
October 31, 2017 | 289,822 | — |
October 31, 2018 | — | $2,946,811 |
Total | $8,335,906 | $2,946,811 |
During the tax year ended October 31, 2010, the following Fund utilized its capital loss carryforwards as follows:
| | |
| | Municipal |
| | Income |
| | (NMI) |
Utilized capital loss carryforwards | $65,358 |
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee is separated into two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
58 Nuveen Investments
| | |
The annual fund-level fee for Municipal Value (NUV), payable monthly, is calculated according to the following schedule: | |
| | Municipal Value (NUV) |
Average Daily Net Assets | Fund-Level Fee Rate |
For the first $500 million | .1500% |
For the next $500 million | .1250 |
For net assets over $1 billion | .1000 |
In addition, Municipal Value (NUV) pays an annual management fee, payable monthly, based on gross interest income (excluding interest on bonds underlying a “self-deposited inverse floater” trust that is attributed to the Fund over and above the net interest earned on the inverse floater itself) as follows:
| | |
| | Municipal Value (NUV) |
Gross Interest Income | Gross Income Fee Rate |
For the first $50 million | 4.125% |
For the next $50 million | 4.000 |
For gross income over $100 million | 3.875 |
The annual fund level fee for Municipal Value 2 (NUW), Municipal Income (NMI) and Enhanced Municipal Value (NEV), payable monthly, is calculated according to the following schedules:
| | | | |
| | | Municipal Value 2 (NUW) | |
Average Daily Managed Assets* | | Fund-Level Fee Rate | |
For the first $125 million | | .4000 | % |
For the next $125 million | | .3875 | |
For the next $250 million | | .3750 | |
For the next $500 million | | .3625 | |
For the next $1 billion | | .3500 | |
For managed assets over $2 billion | | .3375 | |
| | | | |
| | | Municipal Income (NMI) | |
Average Daily Net Assets | | Fund-Level Fee Rate | |
For the first $125 million | | .4500 | % |
For the next $125 million | | .4375 | |
For the next $250 million | | .4250 | |
For the next $500 million | | .4125 | |
For the next $1 billion | | .4000 | |
For the next $3 billion | | .3875 | |
For net assets over $5 billion | | .3750 | |
| | | | |
| | | Enhanced Municipal Value (NEV) | |
Average Daily Managed Assets* | | Fund-Level Fee Rate | |
For the first $125 million | | .4500 | % |
For the next $125 million | | .4375 | |
For the next $250 million | | .4250 | |
For the next $500 million | | .4125 | |
For the next $1 billion | | .4000 | |
For managed assets over $2 billion | | .3875 | |
Nuveen Investments 59
| | | | |
Notes to | | | |
Financial Statements (continued) | | | |
| | | | |
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule: | | | |
Complex-Level Managed Asset Breakpoint Level* | | Effective Rate at Breakpoint Level | |
$55 billion | | | .2000 | % |
$56 billion | | | .1996 | |
$57 billion | | | .1989 | |
$60 billion | | | .1961 | |
$63 billion | | | .1931 | |
$66 billion | | | .1900 | |
$71 billion | | | .1851 | |
$76 billion | | | .1806 | |
$80 billion | | | .1773 | |
$91 billion | | | .1691 | |
$125 billion | | | .1599 | |
$200 billion | | | .1505 | |
$250 billion | | | .1469 | |
$300 billion | | | .1445 | |
| * | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for e ach fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. As of October 31, 2010, the complex-level fee rate was .1809%. |
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent directors/trustees that enables directors/trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.
8. Borrowing Arrangements
As part of its investment strategy, Enhanced Municipal Value (NEV) uses borrowings to employ leverage. On May 18, 2010, the Fund entered into a $75 million committed 364-day unsecured line of credit (“Committed Unsecured Line”) with its custodian bank. Interest charged on the used portion of the Committed Unsecured Line is calculated at a rate per annum equal to the higher of the overnight Federal Funds rate or the overnight London Inter-bank Offered Rate (“LIBOR”) plus 1.25%. In addition, the Fund accrues a commitment fee of 0.15% per annum on the unused portion of the Committed Unsecured Line. The Fund also paid a .10% one time closing fee on the Committed Unsecured Line, which was fully expensed during the fiscal year ended October 31, 2010.
During the period May 18, 2010 through October 31, 2010, the Fund did not utilize its Committed Unsecured Line. Commitment and closing fees incurred on the Committed Unsecured Line are recognized as a component of “Interest expense” on the Statement of Operations.
9. New Accounting Standards
Fair Value Measurements
On January 21, 2010, the Financial Accounting Standards Board issued changes to the authoritative guidance under U.S. GAAP for fair value measurements. The objective of which is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities disclose Level 3 activity for purchases, sales, issuances and settlements in the Level 3 roll-forward on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of this guidance and the impact it will have to the footnote disclosures, if any.
10. Subsequent Events
Shelf Offering
On December 8, 2010, a registration statement filed by Municipal Value (NUV) with the Securities and Exchange Commission became effective authorizing the Fund to issue an additional 19,600,000 shares through a shelf offering. Under this shelf offering program, the Fund, subject to market conditions, may raise additional equity capital from time to time in varying amounts and offer methods at a net price at or above the Fund’s NAV per share.
60 Nuveen Investments
Financial
Highlights
Nuveen Investments 61
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Financial | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Highlights | | | | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding throughout each period: | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions | | | | | | | | | | |
| | | | | | | | | Net | | | | | | | | | | | | | | | | | | Ending | | | | |
| | | Beginning | | | Net | | | Realized/ | | | | | | Net | | | | | | | | | | | | Net | | | Ending | |
| | | Net Asset | | | Investment | | | Unrealized | | | | | | Investment | | | Capital | | | | | | Offering | | | Asset | | | Market | |
| | | Value | | | Income | | | Gain (Loss) | | | Total | | | Income | | | Gains | | | Total | | | Costs | | | Value | | | Value | |
Municipal Value (NUV) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | $ | 9.51 | | | $ | .49 | | | $ | .30 | | | $ | .79 | | | $ | (.47 | ) | | $ | (.01 | ) | | $ | (.48 | ) | | $ | — | | | $ | 9.82 | | | $ | 10.02 | |
2009 | | | 8.60 | | | | .49 | | | | .89 | | | | 1.38 | | | | (.47 | ) | | | — | | | | (.47 | ) | | | — | | | | 9.51 | | | | 9.91 | |
2008 | | | 10.12 | | | | .47 | | | | (1.49 | ) | | | (1.02 | ) | | | (.47 | ) | | | (.03 | ) | | | (.50 | ) | | | — | | | | 8.60 | | | | 8.65 | |
2007 | | | 10.39 | | | | .46 | | | | (.23 | ) | | | .23 | | | | (.47 | ) | | | (.03 | ) | | | (.50 | ) | | | — | | | | 10.12 | | | | 9.49 | |
2006 | | | 10.15 | | | | .47 | | | | .26 | | | | .73 | | | | (.47 | ) | | | (.02 | ) | | | (.49 | ) | | | — | | | | 10.39 | | | | 10.16 | |
Municipal Value 2 (NUW) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | | 16.20 | | | | .91 | | | | .65 | | | | 1.56 | | | | (.90 | ) | | | (.01 | ) | | | (.91 | ) | | | — | | | | 16.85 | | | | 17.57 | |
2009(e) | | | 14.33 | | | | .49 | | | | 1.94 | | | | 2.43 | | | | (.53 | ) | | | — | | | | (.53 | ) | | | (.03 | ) | | | 16.20 | | | | 15.84 | |
Municipal Income (NMI) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | | 10.38 | | | | .58 | | | | .45 | | | | 1.03 | | | | (.57 | ) | | | — | | | | (.57 | ) | | | — | | | | 10.84 | | | | 11.24 | |
2009 | | | 9.28 | | | | .57 | | | | 1.06 | | | | 1.63 | | | | (.53 | ) | | | — | | | | (.53 | ) | | | — | | | | 10.38 | | | | 10.66 | |
2008 | | | 10.77 | | | | .53 | | | | (1.52 | ) | | | (.99 | ) | | | (.50 | ) | | | — | | | | (.50 | ) | | | — | | | | 9.28 | | | | 9.89 | |
2007 | | | 11.04 | | | | .52 | | | | (.28 | ) | | | .24 | | | | (.51 | ) | | | — | | | | (.51 | ) | | | — | | | | 10.77 | | | | 10.49 | |
2006 | | | 10.86 | | | | .53 | | | | .16 | | | | .69 | | | | (.51 | ) | | | — | | | | (.51 | ) | | | — | | | | 11.04 | | | | 10.50 | |
Enhanced Municipal Value (NEV) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | | 13.73 | | | | .94 | | | | 1.02 | | | | 1.96 | | | | (.91 | ) | | | — | ** | | | (.91 | ) | | | (— | )** | | | 14.78 | | | | 14.56 | |
2009(f) | | | 14.33 | | | | .04 | | | | (.61 | ) | | | (.57 | ) | | | — | | | | — | | | | — | | | | (.03 | ) | | | 13.73 | | | | 15.00 | |
62 Nuveen Investments
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | Ratios/Supplemental Data | |
| Total Returns | | | | | | Ratios to Average Net Assets(b) | | | | |
| | | | Based | | | | | | | | | | | | | | | | |
| Based | | | on | | | Ending | | | | | | | | | | | | | |
| on | | | Net | | | Net | | | Expenses | | | Expenses | | | Net | | | Portfolio | |
| Market | | | Asset | | | Assets | | | Including | | | Excluding | | | Investment | | | Turnover | |
| Value(a) | | | Value(a) | | | | (000 | ) | | Interest(c)(d) | | | Interest | | | Income(d) | | | Rate | |
| | 6.18 | % | | | 8.44 | % | | $ | 1,944,094 | | | | .61 | % | | | .60 | % | | | 5.05 | % | | | 8 | % |
| | 20.68 | | | | 16.51 | | | | 1,872,031 | | | | .66 | | | | .64 | | | | 5.49 | | | | 5 | |
| | (3.93 | ) | | | (10.51 | ) | | | 1,684,418 | | | | .65 | | | | .61 | | | | 4.86 | | | | 16 | |
| | (1.90 | ) | | | 2.22 | | | | 1,974,535 | | | | .62 | | | | .59 | | | | 4.53 | | | | 10 | |
| | 11.51 | | | | 7.40 | | | | 2,025,964 | | | | .59 | | | | .59 | | | | 4.60 | | | | 6 | |
| | 17.22 | | | | 9.91 | | | | 216,146 | | | | .69 | | | | .69 | | | | 5.55 | | | | 4 | |
| | 9.27 | | | | 16.92 | | | | 205,709 | | | | .67 | * | | | .67 | * | | | 4.84 | * | | | 2 | |
| | 11.14 | | | | 10.12 | | | | 89,008 | | | | .77 | | | | .75 | | | | 5.47 | | | | 14 | |
| | 13.72 | | | | 18.06 | | | | 84,883 | | | | .81 | | | | .78 | | | | 5.85 | | | | 10 | |
| | (1.01 | ) | | | (9.53 | ) | | | 75,553 | | | | .86 | | | | .76 | | | | 5.08 | | | | 8 | |
| | 4.78 | | | | 2.23 | | | | 87,424 | | | | .86 | | | | .75 | | | | 4.76 | | | | 6 | |
| | 4.42 | | | | 6.50 | | | | 89,605 | | | | .76 | | | | .76 | | | | 4.83 | | | | 6 | |
| | 3.52 | | | | 14.73 | | | | 284,682 | | | | 1.07 | | | | 1.03 | | | | 6.64 | | | | 28 | |
| | — | | | | (4.15 | ) | | | 244,558 | | | | 1.02 | * | | | 1.02 | * | | | 3.25 | * | | | 1 | |
| (a) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. |
| | Total returns are not annualized. |
| | Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (b) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities. |
| (d) | Each ratio for Enhanced Municipal Value (NEV) includes the effect of the interest expense paid on borrowings, as described in Footnote 8 – Borrowing Arrangements as follows: |
| | |
| | Ratios of Borrowings Interest |
| | Expense to Average Net Assets |
Enhanced Municipal Value (NEV) | |
Year Ended 10/31: | |
2010 | .04%* |
2009(f) | — |
| (e) | For the period February 25, 2009 (commencement of operations) through October 31, 2009. |
| (f) | For the period September 25, 2009 (commencement of operations) through October 31, 2009. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
See accompanying notes to financial statements.
Nuveen Investments 63
Board Members & Officers(Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
| | | | | |
| Name, | Position(s) Held | Year First | Principal | Number |
| Birthdate | with the Funds | Elected or | Occupation(s) | of Portfolios |
| & Address | | Appointed | Including other | in Fund Complex |
| | | and Term(1) | Directorships | Overseen by |
| | | | During Past 5 Years | Board Member |
Independent Board Members: | | | |
■ ROBERT P. BREMNER(2) | | | Private Investor and Management Consultant; Treasurer and Director, | |
| 8/22/40 | Chairman of | | Humanities Council of Washington, D.C. | |
| 333 W. Wacker Drive | the Board | 1996 | | 206 |
| Chicago, IL 60606 | and Board Member | | | |
| | | | | |
■ JACK B. EVANS | | | President, The Hall-Perrine Foundation, a private philanthropic | |
10/22/48 | | | corporation (since 1996); Director and Chairman, United Fire | |
| 333 W. Wacker Drive | Board Member | 1999 | Group, a publicly held company; President Pro Tem of the Board of | 206 |
| Chicago, IL 60606 | | | Regents for the State of Iowa University System; Director, Gazette | |
| | | | Companies; Life Trustee of Coe College and the Iowa College Foundation; | |
| | | | formerly, Director, Alliant Energy; formerly, Director, Federal | |
| | | | Reserve Bank of Chicago; formerly, President and Chief Operating | |
| | | | Officer, SCI Financial Group, Inc., a regional financial services firm. | |
| | | | | |
■ WILLIAM C. HUNTER | | | Dean, Tippie College of Business, University of Iowa (since | |
| 3/6/48 | | | 2006); Director (since 2004) of Xerox Corporation; Director | |
| 333 W. Wacker Drive | Board Member | 2004 | (since 2005), Beta Gamma Sigma International Honor Society; | 206 |
| Chicago, IL 60606 | | | formerly, Dean and Distinguished Professor of Finance, School of | |
| | | | Business at the University of Connecticut (2003-2006); previously, | |
| | | | Senior Vice President and Director of Research at the Federal | |
| | | | Reserve Bank of Chicago (1995-2003); formerly, Director | |
| | | | (1997-2007), Credit Research Center at Georgetown University. | |
| | | | | |
■ DAVID J. KUNDERT(2) | | | Director, Northwestern Mutual Wealth Management | |
| 10/28/42 | | | Company; retired (since 2004) as Chairman, JPMorgan | |
| 333 W. Wacker Drive | Board Member | 2005 | Fleming Asset Management, President and CEO, Banc One | 206 |
| Chicago, IL 60606 | | | Investment Advisors Corporation, and President, One Group | |
| | | | Mutual Funds; prior thereto, Executive Vice President, Banc One | |
| | | | Corporation and Chairman and CEO, Banc One Investment | |
| | | | Management Group; Member, Board of Regents, Luther College; | |
| | | | member of the Wisconsin Bar Association; member of Board of | |
| | | | Directors, Friends of Boerner Botanical Gardens; member of Board | |
| | | | of Directors and chair of Investment Committee, Greater | |
| | | | Milwaukee Foundation. | |
| | | | |
■ WILLIAM J. SCHNEIDER(2) | | Chairman of Miller-Valentine Partners Ltd., a real estate investment | |
| 9/24/44 | | | company; formerly, Senior Partner and Chief Operating Officer | |
| 333 W. Wacker Drive | Board Member | 1997 | (retired, 2004) of Miller-Valentine Group; member, University of | 206 |
| Chicago, IL 60606 | | | Dayton Business School Advisory Council;member, Mid-America | |
| | | | Health System board; formerly, member and chair, Dayton Philharmonic | |
| | | | Orchestra Association; formerly, member, Business Advisory Council, | |
| | | | Cleveland Federal Reserve Bank. | |
64 Nuveen Investments
| | | | | |
| Name, | Position(s) Held | Year First | Principal | Number |
| Birthdate | with the Funds | Elected or | Occupation(s) | of Portfolios |
| & Address | | Appointed | Including other | in Fund Complex |
| | | and Term(1) | Directorships | Overseen by |
| | | | During Past 5 Years | Board Member |
Independent Board Members: | | | |
■ JUDITH M. STOCKDALE | | | Executive Director, Gaylord and Dorothy Donnelley | |
| 12/29/47 | | | Foundation (since 1994); prior thereto, Executive Director, | |
| 333 W. Wacker Drive | Board Member | 1997 | Great Lakes Protection Fund (1990-1994). | 206 |
| Chicago, IL 60606 | | | | |
| | | | | |
■ CAROLE E. STONE(2) | | | Director, Chicago Board Options Exchange (since 2006); Director, | |
| 6/28/47 | | | C2 Options Exchange, Incorporated (since 2009); formerly, | |
| 333 W. Wacker Drive | Board Member | 2007 | Commissioner, New York State Commission on Public Authority | 206 |
| Chicago, IL 60606 | | | Reform (2010); formerly, Chair, New York Racing Association | |
| | | | Oversight Board (2005-2007). | |
■ TERENCE J. TOTH(2) | | | | |
| 9/29/59 | | | Director, Legal & General Investment Management America, Inc. | |
| 333 W. Wacker Drive | Member | 2008 | (since 2008); Managing Partner, Promus Capital (since 2008); | 206 |
| Chicago, IL 60606 | | | formerly, CEO and President, Northern Trust Global Investments | |
| | | | (2004-2007); Executive Vice President, Quantitative Management | |
| | | | & Securities Lending (2000-2004); prior thereto, various positions | |
| | | | with Northern Trust Company (since 1994); member: Goodman | |
| | | | Theatre Board (since 2004), Chicago Fellowship Boards (since | |
| | | | 2005), University of Illinois Leadership Council Board (since 2007) | |
| | | | and Catalyst Schools of Chicago Board (since 2008); formerly, | |
| | | | member: Northern Trust Mutual Funds Board (2005-2007), | |
| | | | Northern Trust Global Investments Board (2004-2007), Northern | |
| | | | Trust Japan Board (2004-2007), Northern Trust Securities Inc. | |
| | | | Board (2003-2007) and Northern Trust Hong Kong Board | |
| | | | (1997-2004). | |
Interested Board Member: | | | |
■ JOHN P. AMBOIAN(3) | | | Chief Executive Officer (since July 2007), Director (since 1999) | |
| 6/14/61 | | | and Chairman (since 2007) of Nuveen Investments, Inc.; Chief | |
| 333 W. Wacker Drive | Board Member | 2008 | Executive Officer (since 2007) of Nuveen Asset Management, | 206 |
| Chicago, IL 60606 | | | Nuveen Investments Advisors, Inc. | |
| | | | | |
Officers of the Funds: | | | | |
■ GIFFORD R. ZIMMERMAN | | Managing Director (since 2002), Assistant Secretary and | |
| 9/9/56 | Chief | | Associate General Counsel of Nuveen Investments, LLC; Managing | |
| 333 W. Wacker Drive | Administrative | 1988 | Director (since 2004) and Assistant Secretary (since 1994) of Nuveen | 206 |
| Chicago, IL 60606 | Officer | | Investments, Inc.; Managing Director, Associate General Counsel and | |
| | | | Assistant Secretary, of Nuveen Asset Management (since 2002) and of | |
| | | | Symphony Asset Management LLC, (since 2003); Vice President and | |
| | | | Assistant Secretary of NWQ Investment Management Company, LLC. | |
| | | | (since 2002), Nuveen Investments Advisers Inc. (since 2002), | |
| | | | Tradewinds Global Investors, LLC, and Santa Barbara Asset | |
| | | | Management, LLC (since 2006), Nuveen HydePark Group LLC and | |
| | | | Nuveen Investment Solutions, Inc. (since 2007) and of Winslow | |
| | | | Capital Management, Inc. (since 2010); Chief Administrative | |
| | | | Officer and Chief Compliance Officer (since 2010) of Nuveen | |
| | | | Commodities Asset Management, LLC; Chartered Financial Analyst. | |
Nuveen Investments 65
Board Members & Officers (Unaudited) (continued)
| | | | | |
| Name, | Position(s) Held | Year First | Principal | Number |
| Birthdate | with the Funds | Elected or | Occupation(s) | of Portfolios |
| and Address | | Appointed(4) | During Past 5 Years | in Fund Complex |
| | | | | Overseen |
| | | | | by Officer |
| | | | | |
Officers of the Funds: | | | | |
■ WILLIAM ADAMS IV | | | Executive Vice President of Nuveen Investments, Inc.; Executive | |
| 6/9/55 | | | Vice President, U.S. Structured Products of Nuveen Investments, | |
| 333 W. Wacker Drive | Vice President | 2007 | LLC, (since 1999), ; Managing Director (since 2010) of Nuveen | 131 |
| Chicago, IL 60606 | | | Commodities Asset Management, LLC. | |
| | | | | |
■ MARGO L. COOK | | | Executive Vice President (since 2008) of Nuveen | |
| 4/11/64 | | | Investments, Inc.; previously, Head of Institutional Asset | |
| 333 W. Wacker Drive | Vice President | 2009 | Management (2007-2008) of Bear Stearns Asset Management; | 206 |
| Chicago, IL 60606 | | | Head of Institutional Asset Management (1986-2007) of Bank | |
| | | | of NY Mellon; Chartered Financial Analyst. | |
| | | | | |
■ LORNA C. FERGUSON | | | Managing Director (since 2004) of Nuveen Investments, LLC and | |
| 10/24/45 | | | Managing Director (since 2005) of Nuveen Asset Management. | |
| 333 W. Wacker Drive | Vice President | 1998 | | 206 |
| Chicago, IL 60606 | | | | |
| | | | | |
■ STEPHEN D. FOY | | | Senior Vice President (since 2010), formerly, Vice President (1993- | |
| 5/31/54 | Vice President | | 2010) and Funds Controller (since 1998) of Nuveen Investments, | |
| 333 W. Wacker Drive | and Controller | 1998 | LLC; Senior Vice President (since 2010), formerly, Vice President | 206 |
| Chicago, IL 60606 | | | (2005-2010) of Nuveen Asset Management; Certified Public Accountant. | |
| | | | | |
■ SCOTT S. GRACE | | | Managing Director, Corporate Finance & Development, Treasurer | |
| 8/20/70 | Vice President | | (since 2009) of Nuveen Investments, LLC; Managing Director and | |
| 333 W. Wacker Drive | | 2009 | Treasurer of Nuveen Asset Management (since 2009); Nuveen | 206 |
| Chicago, IL 60606 | | | Investment Solutions, Inc., Nuveen Investments Advisers, Inc., and | |
| | | | Nuveen Investments Holdings, Inc.; Vice President and Treasurer of NWQ | |
| | | | Investment Management Company, LLC, Tradewinds Global Investors, | |
| | | | LLC, Symphony Asset Management LLC and Winslow Capital Management, | |
| | | | Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, | |
| | | | Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice | |
| | | | President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior | |
| | | | Associate in Morgan Stanley’s Global Financial Services Group (2000- | |
| | | | 2003); Chartered Accountant Designation. | |
| | | | | |
■ WALTER M. KELLY | | | Senior Vice President (since 2008), Vice President (2006-2008) | |
| 2/24/70 | Chief Compliance | | formerly, Assistant Vice President and Assistant General Counsel | |
| 333 W. Wacker Drive | Officer and | 2003 | (2003-2006) of Nuveen Investments, LLC; Senior Vice President | 206 |
| Chicago, IL 60606 | Vice President | | (since 2008), formerly, Vice President (2006-2008) and Assistant | |
| | | | Secretary (since 2008) of Nuveen Asset Management. | |
| | | | | |
■ TINA M. LAZAR | | | Senior Vice President (since 2009), formerly, Vice President of Nuveen | |
| 8/27/61 | | | Investments, LLC (1999-2009); Senior Vice President (since 2010), | |
| 333 W. Wacker Drive | Vice President | 2002 | formerly, Vice President (2005-2010) of Nuveen Asset Management. | 206 |
| Chicago, IL 60606 | | | | |
66 Nuveen Investments
| | | | | |
| Name, | Position(s) Held | Year First | Principal | Number |
| Birthdate | with the Funds | Elected or | Occupation(s) | of Portfolios |
| and Address | | Appointed(4) | During Past 5 Years | in Fund Complex |
| | | | | Overseen |
| | | | | by Officer |
Officers of the Funds: | | | | |
■ KEVIN J. MCCARTHY | | | Managing Director (since 2008), formerly, Vice President | |
| 3/26/66 | Vice President | | (2007-2008), Nuveen Investments, LLC; Managing Director | |
| 333 W. Wacker Drive | and Secretary | 2007 | (since 2008), formerly, Vice President, and Assistant Secretary, | 206 |
| Chicago, IL 60606 | | | Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; | |
| | | | Vice President (since 2007) and Assistant Secretary, Nuveen | |
| | | | Investment Advisers Inc., NWQ Investment Management Company, | |
| | | | LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, | |
| | | | Symphony Asset Management LLC, Santa Barbara Asset | |
| | | | Management LLC, Nuveen HydePark Group, LLC and Nuveen | |
| | | | Investment Solutions, Inc. (since 2007) and of Winslow Capital | |
| | | | Management, Inc. (since 2010); Vice President and Secretary (since 2010) | |
| | | | of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, | |
| | | | Bell, Boyd & Lloyd LLP (1997-2007). | |
| (1) | Board Members serve three year terms. The Board of Trustees is divided into three classes. Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of Nuveen Asset Management. |
| (3) | Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. |
| (4) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. |
Nuveen Investments 67
Annual Investment Management Agreement Approval Process(Unaudited)
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund’s board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or “interested persons” of any parties (the “Independent Board Members”), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund’s board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably nece ssary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 25-26, 2010 (the “May Meeting”), the Boards of Trustees or Directors (as the case may be) (each, a “Board” and each Trustee or Director, a “Board Member”) of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each, an “Advisory Agreement”) between the Nuveen Municipal Value Fund, Inc. (the “Municipal Value Fund”), the Nuveen Municipal Value Fund 2 (the “Municipal Value Fund 2”) and the Nuveen Municipal Income Fund, Inc. (the “Municipal Income Fund” and, together with the Munici pal Value Fund and the Municipal Value Fund 2, the “Funds”), respectively, and Nuveen Asset Management (the “Adviser”) for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2010 (the “April Meeting”). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and the Adviser, including absolute and comparative performance, fee and expense information for the Funds (as described in more detail below), the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries), and other information regarding the organization, personnel, and services provided by the Adviser. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel a nd with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of the Adviser, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the
68 Nuveen Investments
Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
The Nuveen Enhanced Municipal Value Fund (the “Enhanced Municipal Value Fund”) is a new fund. The initial Advisory Agreement between the Adviser and the Enhanced Municipal Value Fund was approved separately at a meeting of its Board held on July 28-29, 2009 and was not up for renewal at the May Meeting. Therefore, the Enhanced Municipal Value Fund is not a “Fund” for purposes of this discussion. The discussion of the approval for the Enhanced Municipal Value Fund was included in its annual report for the period ending October 31, 2009.
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Adviser’s services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, the Adviser’s organization and business; the types of services that the Adviser or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line, including continued activities to refinance auction rate preferred securities, manage leverage during periods of market turbulence and implement an enhanced leverage management process, modify investment mandates in light of market conditions and se ek shareholder approval as necessary, maintain the fund share repurchase program and maintain shareholder communications to keep shareholders apprised of Nuveen’s efforts in refinancing preferred shares. In addition to the foregoing, the Independent Board Members also noted the additional services that the Adviser or its affiliates provide to closed-end funds, including, in particular, Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing marketing for the closed-end funds; maintaining and enhancing a closed-end fund website; participating in conferences and having direct communications with analysts and financial advisors.
As part of their review, the Independent Board Members also evaluated the background, experience and track record of the Adviser’s investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate the Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks.
Nuveen Investments 69
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by the Adviser and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members also considered the Adviser’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory.
B. The Investment Performance of the Funds and the Adviser
The Board considered the performance results of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks. In this regard, the Board reviewed each Fund’s total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for the Municipal Value Fund 2, which did not exist for part of the foregoing time frame). In addition, the B oard reviewed each Fund’s total return information compared to recognized and/or customized benchmarks for the quarter, one- and three-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for the Municipal Value Fund 2, which did not exist for part of the foregoing time frame). Moreover, the Board reviewed the peer ranking of the Nuveen municipal funds advised by the Adviser in the aggregate. The Independent Board Members also reviewed historic premium and discount levels. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.
In reviewing peer comparison information, the Independent Board Members recognized that the Performance Peer Group of certain funds may not adequately represent the objectives and strategies of the funds, thereby limiting the usefulness of comparing a fund’s performance with that of its Performance Peer Group. In this regard, the Independent Board Members considered that the Performance Peer Groups of certain funds (including the Funds) were classified as having significant differences from such funds based on considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers).
Based on their review, the Independent Board Members determined that each Fund’s investment performance over time had been satisfactory. In this regard, the Independent Board Members noted that although the Municipal Income Fund and the Municipal Value Fund underperformed the performance of their benchmarks in the three-year period, they outperformed the performance of their benchmarks in the one-year period. In addition, the Independent Board Members noted that the Municipal
70 Nuveen Investments
Value Fund 2 is a relatively new fund with a performance history that is generally too short for a meaningful assessment of performance.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds based on data provided by an independent fund data provider (the “Peer Universe”) and in certain cases, to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and/or Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; and the differences in the type and use of leverage may impact the comparative data, thereby limiting the ability to make a meaningful comparison with peers, including for each of the Funds.
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). The Independent Board Members recognized that the Municipal Value Fund 2 had net management fees above the peer average; however, the peer set was limited as noted above. In addition, although the net management fees of the Municipal Income Fund and the Municipal Value Fund were above the peer average and the available peer set was limited, their net expense ratios were below or near the peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by the Adviser to other clients, including municipal separately managed accounts and passively managed municipal bond exchange traded funds (ETFs) that are sub-advised by the Adviser. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles,
Nuveen Investments 71
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Indepen dent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitabi lity, the Independent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen’s level of profitability for its advisory activities was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to the Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits the Adviser may receive as a result of its relationship with the Funds.
72 Nuveen Investments
Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-t o-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Adviser for serving as agent at Nuveen’s trading desk and as co-manager in initial public offerings of new closed-end funds.
In addition to the above, the Independent Board Members considered whether the Adviser received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Adviser in managing the assets of the Funds and other clients. The Independent Board Members noted that the Adviser does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating “commissions,” the Adviser intends to comply with the applicable safe harbor provisions.
Nuveen Investments 73
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
Based on their review, the Independent Board Members concluded that any indirect benefits received by the Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that the Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
74 Nuveen Investments
Reinvest Automatically
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares.
By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ ne t asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price
Nuveen Investments 75
Reinvest Automatically
Easily and Conveniently (continued)
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.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
76 Nuveen Investments
Glossary of Terms
Used in this Report
| · | Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction. |
| · | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and rei nvested dividends and capital gains distributions, if any) over the time period being considered. |
| · | Average Effective Maturity: The market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security. |
| · | Duration: A measure of the price sensitivity of a fixed income security or portfolio to changes in interest rates. Duration is stated in years. For example, if a bond has a duration of four years, the price of the bond is expected to change by approximately 4% for every one percentage point change in interest rates. The shorter the duration, the less price variability expected in the security's price due to changes in interest rates. |
| · | Inverse Floaters: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. |
Nuveen Investments 77
Glossary of Terms
Used in this Report (continued)
| · | Market Yield (also known as Dividend Yield or Current Yield): An investment’s current annualized dividend divided by its current market price. |
| · | Net Asset Value (NAV): A Fund’s NAV is calculated by subtracting the liabilities of the Fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. |
| · | Pre-refunding: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value. |
| · | Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. |
| · | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
Notes
Nuveen Investments 79
Notes
80 Nuveen Investments
Other Useful Information
Board of
Directors/Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust
Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Quarterly Portfolio of Investments and Proxy Voting Information
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public References Section at 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common Share Information
Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased shares of their common stock as shown in the accompanying table.
| | |
| | Common Shares |
Fund | Repurchased |
NUV NUW NMI NEV | — — — — |
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
Nuveen Investments 81
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed more than $160 billion of assets on September 30, 2010.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
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It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Investments Fund information is ready—no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish.
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www.investordelivery.com
If you receive your Nuveen Fund distributions and statements from your financial advisor or brokerage account.
OR
www.nuveen.com/accountaccess
If you receive your Nuveen Fund distributions and statements directly from Nuveen.
| |
Distributed by |
Nuveen Investments, LLC |
333 West Wacker Drive |
Chicago, IL 60606 |
www.nuveen.com |
EAN-A-1010D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committe e of the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are pr ovided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10, 000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, Inc. is the registrant's investment adviser (also referred to as the "Adviser"). The Adviser is responsible for the selection and on-going monitoring of the Fund's investment portfolio, managing the Fund's business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager at the Sub-Adviser:
The following individual has primary responsibility for the day-to-day implementation of the registrant’s investment strategies:
Thomas Spalding, CFA, is Vice President and Senior Investment Officer of Nuveen Investments. He has direct investment responsibility for the National Long Term funds. He joined Nuveen in 1976 as assistant portfolio manager and has been the portfolio manager of the Nuveen Municipal Value Fund, Nuveen's first closed-end exchange traded fund, since its inception in 1987. Currently, he manages investments for 21 Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Kevin J. McCarthy
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Gifford R. Zimmerman
Stephen D. Foy
