UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10253
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Nuveen New York Dividend Advantage Municipal Fund 2
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: September 30, 2003
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Date of reporting period: September 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
ANNUAL REPORT September 30, 2003
NUVEEN NEW YORK
MUNICIPAL VALUE FUND
NNY
NUVEEN NEW YORK
PERFORMANCE PLUS
MUNICIPAL FUND
NNP
NUVEEN NEW YORK
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NAN
NUVEEN NEW YORK
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NXK
Photo of: Man holding up child.
Photo of: 2 women and 2 children looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
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your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
- --------------------------------------------------------------------------------
SOME COMMON CONCERNS:
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No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
- --------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A
PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS.
Dear
SHAREHOLDER
I am very pleased to report that for the year ended September 30, 2003, your
Nuveen New York Fund continued to provide you with attractive monthly income
free from regular federal, New York State and New York City income taxes.
While a number of different New York Funds are covered in this report, each is
managed with the same value investing strategy that puts an emphasis on finding
securities that we think are undervalued or underrated. We believe that there
are always some municipal bonds that the market is not properly valuing, and
that by using a consistent, research-oriented management approach we have the
opportunity to find them for your Fund.
We think this is true even with interest rates at the relatively low levels
we've seen over much of the past year. In this low-rate environment, many have
begun to wonder whether interest rates will soon start to rise, and whether that
possibility should cause them to adjust their holdings of fixed-income
investments. We believe that by constructing a carefully balanced portfolio with
the help of a trusted investment professional you may be able to reduce your
overall investment risk and give yourself a better chance to meet your financial
goals. We think that municipal bond investments like your Nuveen New York Fund
can be important building blocks in a portfolio designed to perform well through
a variety of market conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 15, 2003
1
Nuveen New York Municipal Closed-End Exchange-Traded Funds
(NNY, NNP, NAN, NXK)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan discusses economic and market conditions, key
investment strategies, and the annual performance of the Funds. With 12 years of
investment experience, Paul has managed NNY, NNP, and NAN since 1999, adding NXK
at its inception in 2001.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
12-MONTH PERIOD ENDED SEPTEMBER 30, 2003?
Over the 12-month period, the two greatest influences on the general economy and
the municipal market continued to be historically low interest rates and the
slow pace of economic improvement. In June 2003, the Federal Reserve cut the fed
funds rate to 1%, the lowest level since 1958. Much of the recent concern about
economic recovery centered on the weak labor market--as of September 2003, U.S.
unemployment was 6.1%, up from 5.7% 12 months earlier. At the same time,
inflation remained dormant, with the 12-month advance in the core rate dropping
to 1.2% in September.
The slow rate of economic recovery, low interest rates, and lack of inflationary
pressures helped many municipal bonds perform well over the majority of this
reporting period. During the summer of 2003, however, stronger-than-expected
economic data temporarily precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted overall results across all
fixed-income markets.
During January-September 2003, municipal supply nationally remained robust, with
$287 billion in new bonds--up 13% over the same period in 2002.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW YORK?
Over the 12-month period, both New York State and New York City continued to
struggle with budget problems triggered by the national recession, weak
financial markets, a drop in revenues from personal income and capital gains
taxes, and a decline in tourism. The final state budget for fiscal 2004, which
totaled $92.8 billion, was balanced through a combination of borrowing, spending
cuts, and increased taxes and fees. New York City managed to keep its budget
balanced through expenditure reductions, aid from the state and federal
governments, borrowing through the Transitional Finance Authority (TFA), and
increased property taxes.
New York's high level of debt leaves the state's financial status vulnerable to
further economic stress. As of September 2003, New York State's credit rating
was A2/AA, while New York City was rated A2 with a declining outlook by Moody's
and A with a negative outlook by S&P. During the first nine months of 2003,
municipal issuance in New York state totaled $30 billion, a 19% decrease from
the same period in 2002.
2
HOW DID THE NUVEEN NEW YORK FUNDS PERFORM OVER THIS REPORTING PERIOD?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
LEHMAN LIPPER
TOTAL RETURN NEW YORK NEW YORK
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
9/30/03 EQUIVALENT3 9/30/03 9/30/03 9/30/03
- ---------------------------------------------------------------------------
NNY 4.94% 7.43% 2.59% 3.99% 3.39%
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NNP 6.48% 9.74% 4.25% 3.99% 3.39%
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NAN 6.56% 9.86% 5.04% 3.99% 3.39%
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NXK 6.56% 9.86% 5.39% 3.99% 3.39%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended September 30, 2003, the three leveraged Funds--NNP, NAN,
and NXK--outperformed both the unleveraged Lehman Brothers New York Tax-Exempt
Bond Index and their Lipper peer group average, while the unleveraged NNY
trailed these two benchmarks. The use of leverage was one of the factors that
influenced the Funds' performances relative to the Lehman New York index over
the past 12 months. Because it is unleveraged, NNY was unable to benefit from
this strategy.
In addition to leverage, factors such as call exposure, portfolio trading
activity, and the price movement of specific sectors and holdings also had an
impact on the Funds' relative performances during this period. For example,
because investors generally tended to be somewhat risk-averse over the past 12
months, insured and higher quality issues were in greater demand, and these
bonds generally performed better than their BBB and non-rated counterparts in
New York during this period. As of September 30, 2003, NNYheld 17% of its
portfolio in BBB and lower-rated or non-rated bonds.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As noted earlier, historically low short-term interest rates helped the
dividend-payment capabilities of NNP, NAN, and NXK benefit from their use of
leverage. During the 12 months ended September 30, 2003, we implemented four
dividend increases in each of these leveraged Funds. As an unleveraged Fund,
however, NNY did not experience an increase in income to its portfolio. This
necessitated a dividend cut in this Fund in June 2003.
Increased volatility in the fixed-income markets during the summer of 2003 led
to an overall weakening of bond prices. The Funds' share prices and NAVs
finished this 12-month reporting period lower than they had been at the
beginning. As of September 30, 2003, all four of these New York Funds continued
to trade at discounts to their common share NAVs (see charts on individual
Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED
SEPTEMBER 30, 2003?
Over this reporting period, we continued to place strong emphasis on
diversifying the portfolios, improving call protection, and enhancing
dividend-paying capabilities. One of our primary strategies focused on managing
the Funds' durations4 in order to enhance our ability to mitigate interest rate
risk and produce potentially more consistent returns over time. Interest rate
risk is the risk that the value of a Fund's portfolio will decline when market
interest rates rise. The longer the duration of a Fund's portfolio, the greater
its interest rate risk.
In order to better manage the Fund's durations, the majority of our purchase
activity focused on value opportunities in the intermediate part of the
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
New York Tax-Exempt Bond Index, an unleveraged, unmanaged index comprising a
broad range of investment-grade New York municipal bonds. Results for the
Lehman index do not reflect any expenses.
2 The total returns of these Nuveen New York Funds are compared with the average
annualized return of the 21 funds in the Lipper New York Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at the maximum rate of 15%, in order to equal the yield of the
Nuveen Fund on an after-tax basis. It is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 33.5%.
4 Duration is a measure of a fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
fund. With the exception of NNY, which is unleveraged, references to duration
in this commentary are intended to indicate fund duration unless otherwise
noted.
3
yield curve (i.e., bonds that mature in 15 to 20 years). In many cases, bonds in
this part of the curve offered yields similar to those of longer-term bonds but,
in our opinion, had less interest rate risk.
Although issuance in the New York municipal market was down through the first
nine months of 2003, we continued to find opportunities to make trades that we
believe could benefit the Funds. We believe that, given the current geopolitical
and economic climate, maintaining strong credit quality remains a vital
requirement. As of September 30, 2003, these Nuveen New York Funds offered
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 76% to 83%.
We continued to hold and add to our tobacco investments while regularly
evaluating the situation. One of the larger issues to come to market in New York
this year was $2.3 billion in bonds issued by the New York State Tobacco
Settlement Financing Corporation. In addition to tobacco company revenue, this
latest tobacco issue was secured by appropriations from the state that would
cover any potential shortfall in tobacco revenues. In addition, a portion of
this issue was offered as insured bonds. We felt that, with these enhancements,
the bonds offered good value at attractive prices.
WHAT IS YOUR OUTLOOK FOR BOND CALLS FOR THESE FUNDS?
Looking ahead at bond calls, the Funds offer good levels of call protection over
the next two years, with potential call exposure ranging from 1% in NXK to 7% in
NNY through 2005. The number of actual calls in these Funds will depend largely
on market interest rates in coming months.
4
Nuveen New York Municipal Value Fund, Inc.
Performance
OVERVIEW As of September 30, 2003
NNY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 48%
AA 28%
A 7%
BBB 11%
NR 4%
BB or lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $9.11
- --------------------------------------------------
Common Share Net Asset Value $9.95
- --------------------------------------------------
Market Yield 4.94%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 6.86%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.43%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $150,418
- --------------------------------------------------
Average Effective Maturity (Years) 20.55
- --------------------------------------------------
Average Duration 5.53
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AVERAGE ANNUAL TOTAL RETURN (Inception 10/07/87)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 1.65% 2.59%
- --------------------------------------------------
5-Year 3.53% 4.47%
- --------------------------------------------------
10-Year 3.89% 4.95%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 21%
- --------------------------------------------------
Long-Term Care 15%
- --------------------------------------------------
Healthcare 12%
- --------------------------------------------------
Utilities 9%
- --------------------------------------------------
Education and Civic Organizations 8%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct 0.039
Nov 0.039
Dec 0.039
Jan 0.039
Feb 0.039
Mar 0.039
Apr 0.039
May 0.039
Jun 0.0375
Jul 0.0375
Aug 0.0375
Sep 0.0375
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/02 9.45
9.21
8.95
9.07
9.09
9.17
9.07
8.93
8.88
9.09
8.92
8.84
9.05
9.05
8.93
8.96
8.95
8.92
9.06
9.11
9.15
9.23
9.32
9.2
9.1
9.36
9.17
9.16
9.26
9.35
9.38
9.41
9.65
9.72
9.88
9.45
9.6
9.8
9.7
9.31
9.15
9.17
9
8.99
8.95
9.09
9.09
9.13
9/30/03 9.14
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at the maximum rate of 15%, in order to equal the yield of the
Nuveen Fund on an after-tax basis. It is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 33.5%.
5
Nuveen New York Performance Plus Municipal Fund, Inc.
Performance
OVERVIEW As of September 30, 2003
NNP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 46%
AA 31%
A 8%
BBB 11%
NR 2%
BB or lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $15.66
- --------------------------------------------------
Common Share Net Asset Value $16.57
- --------------------------------------------------
Market Yield 6.48%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.00%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.74%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $247,777
- --------------------------------------------------
Average Effective Maturity (Years) 19.59
- --------------------------------------------------
Leverage-Adjusted Duration 8.96
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/89)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 1.88% 4.25%
- --------------------------------------------------
5-Year 4.18% 7.12%
- --------------------------------------------------
10-Year 5.38% 6.46%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 24%
- --------------------------------------------------
Education and Civic Organizations 15%
- --------------------------------------------------
Healthcare 11%
- --------------------------------------------------
U.S. Guaranteed 10%
- --------------------------------------------------
Utilities 8%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.08
Nov 0.08
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.0825
Apr 0.0825
May 0.0825
Jun 0.0835
Jul 0.0835
Aug 0.0835
Sep 0.0845
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/02 16.66
16.15
15.35
15.31
15.59
15.6
15.45
15.35
15.38
15.46
15.38
15.28
15.56
15.78
15.41
15.38
15.3
15.21
15.4
15.18
15.24
15.39
15.58
15.34
15.21
15.54
15.58
15.61
15.57
15.74
15.96
16.3
16.7
16.61
16.73
16.62
16.81
16.84
16.93
16.54
15.45
15.69
15.35
15.36
15.32
15.37
15.46
15.64
9/30/03 15.58
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at the maximum rate of 15%, in order to equal the yield of the
Nuveen Fund on an after-tax basis. It is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 33.5%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.2332 per share.
6
Nuveen New York Dividend Advantage Municipal Fund
Performance
OVERVIEW As of September 30, 2003
NAN
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 53%
AA 30%
A 6%
BBB 7%
NR 3%
BB or lower 1%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $15.09
- --------------------------------------------------
Common Share Net Asset Value $15.66
- --------------------------------------------------
Market Yield 6.56%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.11%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.86%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $143,886
- --------------------------------------------------
Average Effective Maturity (Years) 19.68
- --------------------------------------------------
Leverage-Adjusted Duration 8.23
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/26/99)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 3.86% 5.04%
- --------------------------------------------------
Since Inception 6.23% 8.18%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Healthcare 24%
- --------------------------------------------------
Tax Obligation/Limited 16%
- --------------------------------------------------
Education and Civic Organizations 15%
- --------------------------------------------------
Tax Obligation/General 10%
- --------------------------------------------------
Utilities 8%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct 0.075
Nov 0.075
Dec 0.077
Jan 0.077
Feb 0.077
Mar 0.08
Apr 0.08
May 0.08
Jun 0.081
Jul 0.081
Aug 0.081
Sep 0.0825
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/02 15.4
15.01
14.23
14.47
14.71
14.78
14.59
14.25
14.25
14.7
14.57
14.63
14.75
14.78
14.65
14.71
14.67
14.63
14.6
14.54
14.63
14.89
14.97
14.95
14.68
14.84
14.93
14.82
14.9
14.89
15.07
15.45
15.81
15.9
16.21
16.3
16.25
16.29
16.18
15.66
14.86
14.8
14.86
14.75
14.76
15
14.79
14.97
9/30/03 15.09
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at the maximum rate of 15%, in order to equal the yield of the
Nuveen Fund on an after-tax basis. It is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 33.5%.
7
Nuveen New York Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of September 30, 2003
NXK
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 53%
AA 24%
A 7%
BBB 12%
NR 3%
BB or lower 1%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $14.55
- --------------------------------------------------
Common Share Net Asset Value $15.44
- --------------------------------------------------
Market Yield 6.56%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.11%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.86%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $99,701
- --------------------------------------------------
Average Effective Maturity (Years) 20.30
- --------------------------------------------------
Leverage-Adjusted Duration 9.28
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 5.35% 5.39%
- --------------------------------------------------
Since Inception 4.92% 9.19%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
U.S. Guaranteed 15%
- --------------------------------------------------
Tax Obligation/Limited 14%
- --------------------------------------------------
Utilities 13%
- --------------------------------------------------
Healthcare 10%
- --------------------------------------------------
Transportation 10%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.072
Nov 0.072
Dec 0.074
Jan 0.074
Feb 0.074
Mar 0.077
Apr 0.077
May 0.077
Jun 0.078
Jul 0.078
Aug 0.078
Sep 0.0795
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/02 14.66
14.42
13.85
13.65
13.84
13.93
13.63
13.46
13.61
13.84
13.78
13.66
13.8
14.22
13.95
13.98
14.06
14.08
14.06
13.85
13.8
13.97
14.37
14.34
14
14.06
14.16
14.06
14.24
14.34
14.6
14.95
14.97
15.28
15.57
15.35
15.5
15.45
15.46
14.78
14.3
14.3
14.08
14.16
14.36
14.5
14.44
14.59
9/30/03 14.52
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at the maximum rate of 15%, in order to equal the yield of the
Nuveen Fund on an after-tax basis. It is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 33.5%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0647 per share.
8
Report of
INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN NEW YORK MUNICIPAL VALUE FUND, INC.
NUVEEN NEW YORK PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New York Municipal Value Fund, Inc.,
Nuveen New York Performance Plus Municipal Fund, Inc., Nuveen New York Dividend
Advantage Municipal Fund and Nuveen New York Dividend Advantage Municipal Fund
2, as of September 30, 2003, and the related statements of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of investments owned as of September 30, 2003, by correspondence
with the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New York Municipal Value Fund, Inc., Nuveen New York Performance Plus
Municipal Fund, Inc., Nuveen New York Dividend Advantage Municipal Fund and
Nuveen New York Dividend Advantage Municipal Fund 2 at September 30, 2003, and
the results of their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended in conformity
with accounting principles generally accepted in the United States.
/s/Ernst & Young LLP
Chicago, Illinois
November 12, 2003
9
Nuveen New York Municipal Value Fund, Inc. (NNY)
Portfolio of
INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5%
$ 485 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 BBB $ 430,699
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
375 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 367,009
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
150 6.000%, 6/01/15 6/10 at 101.00 BBB 147,287
750 6.150%, 6/01/25 6/10 at 101.00 BBB 729,383
995 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 996,552
Pass-Through Bonds, Series 2000, 5.800%, 6/01/23
420 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 370,243
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
1,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 Baa2 1,003,410
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27
325 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 291,681
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
1,250 TSASC, Inc., New York, Tobacco Flexible Amortization 7/09 at 101.00 A2 1,214,475
Bonds, Series 1999-1, 6.250%, 7/15/27
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 1,258,475
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.2%
Albany Industrial Development Agency, New York, Revenue Bonds,
Albany Law School Project, Series 2000A:
600 5.700%, 10/01/20 - RAAI Insured 10/10 at 100.00 AA 652,332
750 5.750%, 10/01/30 - RAAI Insured 10/10 at 100.00 AA 796,763
2,000 The Trust for Cultural Resources of the City of New York, 4/07 at 101.00 AAA 2,176,060
New York, Revenue Bonds, American Museum of Natural
History, Series 1997A, 5.650%, 4/01/27 - MBIA Insured
575 The Trust for Cultural Resources of the City of New York, 7/10 at 101.00 A 633,018
New York, Revenue Bonds, Museum of American Folk Art,
Series 2000, 6.000%, 7/01/22 - ACA Insured
1,100 New York City Industrial Development Agency, New York, 1/12 at 100.00 A- 1,125,795
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
New York State Dormitory Authority, City University System
Consolidated Second General Resolution Revenue Bonds, Series
1993A:
1,000 5.750%, 7/01/18 No Opt. Call AA- 1,166,560
1,400 6.000%, 7/01/20 No Opt. Call AA- 1,664,348
1,000 New York State Dormitory Authority, Insured Revenue Bonds, 9/06 at 102.00 AA 1,047,830
Long Island University, Series 1996, 5.500%, 9/01/20 -
RAAI Insured
750 New York State Dormitory Authority, Revenue Bonds, Pratt 7/09 at 102.00 AA 819,015
Institute, Series 1999, 6.000%, 7/01/24 - RAAI Insured
1,250 New York State Dormitory Authority, Insured Revenue Bonds, 7/09 at 101.00 AA 1,370,363
Marymount Manhattan College, Series 1999,
6.250%, 7/01/29 - RAAI Insured
800 New York State Dormitory Authority, Insured Revenue 7/11 at 102.00 AA 855,032
Bonds, D'Youville College, Series 2001, 5.250%, 7/01/20 -
RAAI Insured
10
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.7%
$ 490 Cattaraugus County Industrial Development Agency, 8/08 at 102.00 A+ $ 497,125
New York, Revenue Bonds, Olean General Hospital Project,
Series 1998A, 5.250%, 8/01/23
925 Nassau County Industrial Development Agency, New York, No Opt. Call N/R 1,012,209
Civic Facility Revenue Refunding Bonds, North Shore
Health System Obligated Group Projects, Series 2001B,
5.875%, 11/01/11
500 New York City Health and Hospitals Corporation, 2/09 at 101.00 AAA 536,125
New York, Health System Revenue Bonds, Series 1999A,
5.125%, 2/15/14 - AMBAC Insured
1,000 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 1,057,190
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
500 New York City Industrial Development Agency, New York, 7/12 at 100.00 Baa3 527,355
Civic Facility Revenue Bonds, Staten Island University
Hospital Project, Series 2001B, 6.375%, 7/01/31
2,250 New York State Dormitory Authority, FHA-Insured 2/07 at 102.00 AAA 2,475,540
Mortgage Nursing Home Revenue Bonds, The Rosalind and
Joseph Gurwin Jewish Geriatric Center of Long Island, Inc.,
Series 1997, 5.700%, 2/01/37 - AMBAC Insured
500 New York State Dormitory Authority, Revenue Bonds, 7/13 at 100.00 Baa1 511,125
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
500 New York State Dormitory Authority, Revenue Bonds, 7/13 at 100.00 Baa1 515,755
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
1,000 New York State Dormitory Authority, Revenue Bonds, 7/10 at 101.00 Ba1 1,015,050
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
1,250 New York State Dormitory Authority, Revenue Bonds, 7/10 at 101.00 BBB+ 1,379,150
Catholic Health Services of Long Island, St. Catherine of
Sienna Medical Center, Series 2000A, 6.500%, 7/01/20
3,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 3,102,030
Hospital Insured Mortgage Revenue Bonds, 1994 Series A
Refunding, 5.500%, 8/15/24 - MBIA Insured
2,185 New York State Medical Care Facilities Financing Agency, 8/05 at 102.00 AAA 2,394,738
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1995 Series B, 6.250%, 2/15/15
1,000 New York State Dormitory Authority, Revenue Bonds, 2/05 at 100.00 BBB- 1,011,660
Mount Sinai NYU Health Obligated Group, Series 2002C,
6.000%, 7/01/26
1,095 Newark-Wayne Community Hospital, Inc., New York, 3/04 at 102.00 N/R 1,063,760
Hospital Revenue Improvement and Refunding Bonds,
Series 1993A, 7.600%, 9/01/15
500 Yonkers Industrial Development Agency, New York, 7/11 at 101.00 BB 503,735
Civic Facility Revenue Bonds, St. John's Riverside Hospital
Project, Series 2001A, 7.125%, 7/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.6%
400 East Syracuse Housing Authority, New York, FHA-Insured 4/10 at 102.00 AAA 428,272
Section 8 Revenue Refunding Bonds, Bennet Project,
Series 2001A, 6.700%, 4/01/21
1,500 New York City Housing Development Corporation, New York, 10/03 at 102.00 AAA 1,545,750
Multifamily Mortgage Revenue Bonds, FHA-Insured Mortgage
Loan, Series 1993A, 6.550%, 10/01/15
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2001A:
1,000 5.400%, 11/01/21 5/11 at 101.00 AA 1,041,990
1,000 5.500%, 11/01/31 5/11 at 101.00 AA 1,029,940
1,000 5.600%, 11/01/42 5/11 at 101.00 AA 1,030,090
440 New York State Housing Finance Agency, Multifamily 8/11 at 100.00 Aa1 463,659
Housing Revenue Bonds, Secured Mortgage Program,
2001 Series E, 5.600%, 8/15/20 (Alternative Minimum Tax)
1,275 Westchester County Industrial Development Agency, 8/11 at 102.00 Aaa 1,340,828
New York, Civic Facility Revenue Bonds, GNMA-Collateralized
Mortgage Loan, Living Independently for the Elderly Inc.
Project, Series 2001A, 5.375%, 8/20/21
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1%
3,750 State of New York Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 3,901,163
Revenue Bonds, Series 73-A, 5.250%, 10/01/17
(Alternative Minimum Tax)
840 New York State Mortgage Agency, Mortgage Revenue 4/13 at 101.00 Aaa 826,358
Bonds, 33-Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
11
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 14.6%
$ 1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA $ 1,123,720
Bonds, WSNCHS East, Inc. Project, Series 2000B,
6.000%, 8/01/24 - MBIA Insured
2,015 East Rochester Housing Authority, New York, FHA-Insured 8/07 at 102.00 AAA 2,233,769
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1997A, 5.750%, 8/01/37 - MBIA Insured
3,125 East Rochester Housing Authority, New York, FHA-Insured 8/08 at 101.00 AAA 3,180,219
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1998A, 5.250%, 8/01/38
650 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 681,551
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2000, 8.125%, 7/01/19
530 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 527,043
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001-A1, 7.250%, 7/01/16
3,000 New York State Dormitory Authority, Hebrew Home for the 2/07 at 102.00 AA 3,340,320
Aged at Riverdale, FHA-Insured Mortgage Nursing
Home Revenue Bonds, 6.125%, 2/01/37
2,000 New York State Dormitory Authority, FHA-Insured 8/06 at 102.00 AA- 2,112,560
Mortgage Revenue Bonds, German Masonic Home
Corporation, Series 1996, 5.950%, 8/01/26
3,000 New York State Dormitory Authority, FHA-Insured Mortgage 8/06 at 102.00 AAA 3,359,610
Revenue Bonds, W.K. Nursing Home Corporation,
Series 1996, 6.125%, 2/01/36
1,000 New York State Dormitory Authority, FHA-Insured 2/08 at 102.00 AAA 1,015,670
Mortgage Nursing Home Revenue Bonds, Eger Health
Care Center of Staten Island, Series 1998, 5.100%, 2/01/28
1,000 New York State Dormitory Authority, Revenue Bonds, 7/10 at 101.00 Aa3 1,080,500
Concord Nursing Home, Inc., Series 2000, 6.500%, 7/01/29
125 New York State Medical Care Facilities Finance Agency, 10/03 at 101.00 AAA 126,830
Hospital and Nursing Home Insured Mortgage Revenue
Bonds, 1992 Series C, 6.550%, 8/15/12 (Pre-refunded
to 10/30/03)
3,000 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/08 at 102.00 AAA 3,250,080
Revenue Bonds, Loretto Rest Residential Health Care Facility
Project, Series 1997A, 5.600%, 8/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.6%
1,000 Nassau County, New York, General Obligation Improvement 3/10 at 100.00 AAA 1,154,390
Bonds, Series 2000E, 6.000%, 3/01/19 - FSA Insured
805 New York, New York, General Obligation Bonds, No Opt. Call A 819,224
Fiscal 1995 Series D, 6.600%, 2/01/04
1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 1,283,870
Water Treatment Plant Bonds, Series 1994, 7.250%, 11/01/11
(Alternative Minimum Tax) - MBIA Insured
550 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 586,438
Series 2000A, 6.000%, 6/01/20 - ACA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.4%
1,000 New York Metropolitan Transportation Authority, State 7/12 at 100.00 AA- 1,016,140
Service Contract Refunding Bonds, Series 2002A,
5.125%, 1/01/29
New York Metropolitan Transportation Authority, Dedicated
Tax Fund Bonds, Series 2002A:
2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,092,080
1,000 5.000%, 11/15/30 11/12 at 100.00 AA- 1,006,130
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ 568,165
Revenue Bonds, Series 2003, 5.500%, 1/01/34
1,000 Nassau County Interim Finance Authority, New York, Sales 11/10 at 100.00 AAA 1,145,510
Tax Secured Revenue Bonds, Series 2000A, 5.750%, 11/15/16 -
MBIA Insured
1,330 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AA+ 1,365,351
Future Tax Secured Bonds, Fiscal 2003 Series E,
5.000%, 2/01/23
2,000 New York State Dormitory Authority, Court Facilities 5/10 at 101.00 AAA 2,202,980
Lease Revenue Bonds, City of New York Issue, Series 1999,
5.750%, 5/15/30 - AMBAC Insured
25 New York State Dormitory Authority, Judicial Facilities 10/03 at 114.14 Baa1 31,215
Lease Revenue Bonds, Suffolk County Issue, Series 1991A,
9.500%, 4/15/14
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,125 New York State Dormitory Authority, Mental Health Services 2/06 at 102.00 AAA $ 3,269,750
Facilities Improvement Revenue Bonds, Series 1996B,
5.375%, 2/15/26 - FSA Insured
660 New York State Housing Finance Agency, H.E.L.P.-Suffolk 11/03 at 100.00 Baa1 672,210
Housing Revenue Bonds, 1989 Series A, 8.100%, 11/01/05
1,810 New York State Dormitory Authority, Service Contract 4/12 at 100.00 AA- 1,979,018
Bonds, Child Care Facilities Development Program Issue,
Series 2002, 5.375%, 4/01/16
600 New York State Dormitory Authority, State Personal 3/13 at 100.00 AA 641,736
Income Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22
1,620 New York State Thruway Authority, State Personal Income 3/12 at 100.00 AA 1,696,934
Tax Revenue Bonds, Series 2002A, 5.125%, 3/15/21
600 New York State Urban Development Corporation, Project No Opt. Call AA- 695,058
Revenue Bonds, University Facilities Grants, Series 1995,
5.875%, 1/01/21
1,750 New York State Urban Development Corporation, Correctional No Opt. Call AA- 1,968,207
and Youth Facilities Service Contract Revenue Bonds,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
3,000 Niagara Falls City School District, Niagara County, 6/08 at 101.00 AAA 3,132,420
New York, Certificates of Participation, High School Facility,
Series 1998, 5.375%, 6/15/28 - MBIA Insured
750 Niagara Falls City School District, Niagara County, New York, 6/09 at 101.00 BBB- 804,960
Certificates of Participation, High School Facility, Series 2000,
6.625%, 6/15/28
1,230 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,332,434
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.000%, 4/15/16 - AMBAC Insured
2,100 Tobacco Settlement Financing Corporation of New York State, 6/13 at 100.00 AAA 2,228,184
Asset-Backed Bonds, Series 2003-A1, 5.250%, 6/01/21 -
AMBAC Insured
1,500 Virgin Islands Public Finance Authority, Gross Receipts Tax 10/10 at 101.00 BBB- 1,659,495
Loan Bonds, Series 1999A, 6.500%, 10/01/24
1,120 Yonkers Industrial Development Agency, New York, Civic 2/11 at 100.00 BBB- 1,184,389
Facility Revenue Bonds, Community Development Properties,
Yonkers Inc. Project, Series 2001A, 6.625%, 2/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.3%
1,000 Buffalo and Fort Erie Public Bridge Authority, New York, 1/05 at 101.00 AAA 1,056,210
Revenue Bonds, Series 1995, 5.750%, 1/01/25 - MBIA Insured
500 New York Metropolitan Transportation Authority, Transportation 11/12 at 100.00 AAA 556,235
Revenue Bonds, Series 2002A Refunding, 5.500%, 11/15/19 -
AMBAC Insured
1,100 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 742,104
Special Facilities Revenue Bonds, British Airways PLC
Project, Series 1998, 5.250%, 12/01/32 (Alternative
Minimum Tax)
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 690,020
Special Facilities Revenue Bonds, American Airlines, Inc.
JFK Airport Project, Series 2002B, 8.500%, 8/01/28
(Alternative Minimum Tax)
500 Niagara Frontier Transportation Authority, New York, Revenue 4/09 at 101.00 AAA 534,620
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 2,593,525
Purpose Revenue Bonds, Series 2002B Refunding,
5.000%, 11/15/21
Triborough Bridge and Tunnel Authority, New York, General
Revenue Subordinate Lien Refunding Bonds, Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 900,307
800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 849,688
13
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.8%
$ 2,250 New York Metropolitan Transportation Authority, Commuter 7/07 at 102.00 AAA $ 2,400,750
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured
20 New York City, New York, General Obligation Bonds, 10/07 at 101.00 Aaa 23,467
Fiscal 1997 Series G, 6.000%, 10/15/26 (Pre-refunded to
10/15/07)
330 New York City, New York, General Obligation Bonds, No Opt. Call A*** 336,263
Fiscal 1995 Series D, 6.600%, 2/01/04
85 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 102,870
Water and Sewer System Revenue Bonds, Fiscal 2000
Series B, 6.100%, 6/15/31 (Pre-refunded to 6/15/10) -
MBIA Insured
3,635 New York State Dormitory Authority, Judicial Facilities No Opt. Call AAA 4,633,825
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16
10 New York State Housing Finance Agency, Service Contract 9/04 at 102.00 AAA 10,708
Obligation Revenue Bonds, 1994 Series A, 6.375%, 9/15/14
(Pre-refunded to 9/15/04)
1,000 New York State Urban Development Corporation, Correctional 1/09 at 101.00 AAA 1,183,550
Facilities Service Contract Revenue Bonds, Series C,
6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured
2,600 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 2,972,736
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded to 1/01/22)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.3%
1,945 Cattaraugus County Industrial Development Agency, New York, No Opt. Call N/R 1,358,699
Revenue Bonds, Laidlaw Energy and Environmental Inc.
Project, Series 1999A, 8.500%, 7/01/21 (Alternative
Minimum Tax) #
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
1,500 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 1,563,405
2,500 5.250%, 12/01/26 6/08 at 101.00 A- 2,559,375
2,330 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,402,603
General Revenue Bonds, Series 2001A, 5.375%, 9/01/21
750 Long Island Power Authority, New York, Electric System 5/11 at 100.00 A- 764,460
General Revenue Bonds, Series 2000L, 5.375%, 5/01/33
New York City Industrial Development Agency, New York,
Industrial Revenue Bonds, Brooklyn Navy Yard Cogeneration
Partners, L.P. Project, Series 1997:
1,000 6.200%, 10/01/22 (Alternative Minimum Tax) No Opt. Call BBB- 962,260
1,000 5.750%, 10/01/36 (Alternative Minimum Tax) 10/08 at 102.00 BBB- 888,750
1,500 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 1,540,875
Series 2000A, 5.250%, 11/15/40
500 Niagara County, New York, Industrial Development Agency 11/11 at 101.00 Baa1 524,510
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara, Series 2001A,
5.450%, 11/15/26 (Alternative Minimum Tax)
(Mandatory put 11/15/12)
Suffolk County Industrial Development Agency, New York,
Industrial Development Revenue Bonds, Nissequogue Cogeneration
Partners Facility, Series 1998:
1,000 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 954,160
575 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 531,881
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.4%
300 Monroe County Water Authority, New York, Water Revenue 8/11 at 101.00 AA 313,643
Bonds, Series 2001, 5.150%, 8/01/22
500 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 555,020
Water and Sewer System Revenue Bonds, Fiscal
Series 1996B, 5.750%, 6/15/26 - MBIA Insured
1,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 1,068,520
Water and Sewer System Revenue Bonds, Fiscal
Series 2000A, 5.500%, 6/15/32 - FGIC Insured
415 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 490,389
Water and Sewer System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
1,250 New York City Municipal Water Finance Authority, 6/10 at 101.00 AA 1,333,638
New York, Water and Sewer System Revenue Bonds,
Fiscal Series 2001A, 5.500%, 6/15/33
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA $ 1,672,155
Water and Sewer System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
740 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 808,184
Water and Sewer System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
3,065 Western Nassau County Water Authority, New York, System 5/06 at 102.00 AAA 3,319,916
Revenue Bonds, Series 1995, 5.650%, 5/01/26 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 140,185 Total Long-Term Investments (cost $139,504,644) - 98.5% 148,094,408
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 2,323,269
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $150,417,677
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# Non-income producing security. In August 2002,
Cattaraugus Acquisition Corp. (an entity formed by
several Nuveen Funds owning various interests in the
Laidlaw Energy and Environmental Inc. project) took
possession of 80% of the Laidlaw Energy assets on
behalf of the various Nuveen Funds. Cattaraugus
Acquisition Corp. has determined that a sale of the
facility is in the best interests of shareholders and
is proceeding accordingly.
N/R Investment is not rated.
See accompanying notes to financial statements.
15
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP)
Portfolio of
INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.2%
$ 970 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 BBB $ 861,399
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
935 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 915,075
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
400 6.000%, 6/01/15 6/10 at 101.00 BBB 392,764
835 6.150%, 6/01/25 6/10 at 101.00 BBB 812,046
1,770 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 1,772,761
Pass-Through Bonds, Series 2000, 5.800%, 6/01/23
875 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 771,339
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
2,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 Baa2 2,508,525
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27
825 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 740,421
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
3,750 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A2 3,643,425
Series 1999-1, 6.250%, 7/15/27
3,000 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 3,020,340
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.9%
1,500 Albany Industrial Development Agency, New York, Revenue 12/09 at 101.00 AA 1,799,370
Bonds, Albany Law School Project, Series 1999A,
6.750%, 12/01/29 - RAAI Insured
2,700 Brookhaven Industrial Development Agency, New York, 12/07 at 101.00 A3 2,837,322
Revenue Bonds, St. Joseph's College, Series 2000,
6.000%, 12/01/20
1,285 Cattaraugus County Industrial Development Agency, New York, 9/08 at 101.00 BBB 1,298,133
Revenue Bonds, St. Bonaventure University Construction
Project, Series 1998B, 5.000%, 9/15/13
Monroe County Industrial Development Agency, New York,
Civic Facility Revenue Bonds, St. John Fisher College
Project, Series 1999:
1,000 5.375%, 6/01/17 - RAAI Insured 6/09 at 102.00 AA 1,077,900
2,365 5.375%, 6/01/24 - RAAI Insured 6/09 at 102.00 AA 2,450,471
3,000 New York City Trust for Cultural Resources, New York, 4/07 at 101.00 AAA 3,264,090
Revenue Bonds, American Museum of Natural History,
Series 1997A, 5.650%, 4/01/27 - MBIA Insured
1,000 New York City Trust for Cultural Resources, New York, 7/09 at 101.00 AAA 1,101,740
Revenue Bonds, American Museum of Natural History,
Series 1999A, 5.750%, 7/01/29 - AMBAC Insured
750 New York City Trust for Cultural Resources, New York, 7/10 at 101.00 A 825,675
Revenue Bonds, The Museum of American Folk Art,
Series 2000, 6.000%, 7/01/22 - ACA Insured
1,250 New York State Dormitory Authority, Lease Revenue 7/09 at 101.00 AAA 1,333,325
Bonds, State University Dormitory Facilities Issue,
Series 1999C, 5.500%, 7/01/29 - MBIA Insured
2,000 New York State Dormitory Authority, Lease Revenue Bonds, 7/10 at 101.00 AA- 2,198,220
State University Dormitory Facilities, Series 2001A,
6.000%, 7/01/30
2,500 New York State Dormitory Authority, State University No Opt. Call AA- 2,950,975
Educational Facilities Revenue Bonds, Series 1993A,
5.875%, 5/15/17
3,000 New York State Dormitory Authority, City University System No Opt. Call AAA 3,605,880
Consolidated Revenue Bonds, Series 1993B,
6.000%, 7/01/14 - FSA Insured
2,850 New York State Dormitory Authority, Upstate Community 7/10 at 101.00 AAA 3,138,962
Colleges, Revenue Bonds, Series 2000A,
5.750%, 7/01/29 - FSA Insured
580 New York State Dormitory Authority, Fashion Institute 7/10 at 101.00 AAA 632,768
of Technology, Revenue Bonds, Series 2000,
5.375%, 7/01/20 - FSA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 5,590 New York State Dormitory Authority, Revenue Bonds, University 7/09 at 101.00 A+ $ 6,074,765
of Rochester, Series 1999A, 5.500%, 7/01/16
New York State Dormitory Authority, Pratt Institute,
Revenue Bonds, Series 1999:
1,250 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 1,452,388
1,000 6.000%, 7/01/24 - RAAI Insured 7/09 at 102.00 AA 1,092,020
3,810 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 4,145,394
8,345 New York State Dormitory Authority, Insured Revenue Bonds, 7/09 at 101.00 AA 9,148,540
Marymount Manhattan College, Series 1999,
6.250%, 7/01/29 - RAAI Insured
New York State Dormitory Authority, Consolidated Third General
Resolution Revenue Bonds, City University System, Series 1998-2:
1,490 5.000%, 7/01/17 - FSA Insured 7/08 at 101.00 AAA 1,604,790
1,055 5.000%, 7/01/18 - FSA Insured 7/08 at 101.00 AAA 1,128,555
2,120 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 2,442,049
New York University, Series 2001-1, 5.500%, 7/01/20 -
AMBAC Insured
1,000 New York State Dormitory Authority, Revenue Bonds, 7/12 at 100.00 AAA 1,102,580
Columbia University, Series 2002B, 5.375%, 7/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.4%
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,000 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,063,480
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,057,190
750 New York City Industrial Development Agency, New York, 7/12 at 100.00 Baa3 791,033
Civic Facility Revenue Bonds, Staten Island University
Hospital Project, Series 2001B, 6.375%, 7/01/31
2,000 New York State Dormitory Authority, FHA-Insured Mortgage 2/04 at 100.00 AAA 2,070,200
Revenue Bonds, St. Vincent's Hospital and Medical Center
of New York, Series 1991, 7.400%, 8/01/30
1,000 New York State Dormitory Authority, FHA-Insured Mortgage 2/08 at 102.00 AA 1,061,360
Hospital Revenue Bonds, St. James Mercy Hospital,
Series 1998, 5.250%, 2/01/18
900 New York State Dormitory Authority, Revenue Bonds, 7/13 at 100.00 Baa1 920,025
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
1,250 New York State Dormitory Authority, Revenue Bonds, 7/13 at 100.00 Baa1 1,289,388
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
8,000 New York State Dormitory Authority, Revenue Bonds, 7/09 at 101.00 AAA 8,766,000
Catholic Health Services of Long Island Obligated Group,
St. Charles Hospital and Rehabilitation Center,
Series 1999A, 5.500%, 7/01/22 - MBIA Insured
3,400 New York State Dormitory Authority, Revenue Bonds, 7/10 at 101.00 Ba1 3,451,170
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
3,750 New York State Dormitory Authority, Revenue Bonds, 7/10 at 101.00 BBB+ 4,137,450
Catholic Health Services of Long Island, St. Catherine of
Sienna Medical Center, Series 2000A, 6.500%, 7/01/20
1,700 New York State Dormitory Authority, Revenue Bonds, 7/11 at 101.00 A3 1,735,955
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
2,205 New York State Medical Care Facilities Finance Agency, 2/04 at 101.00 AAA 2,297,500
FHA-Insured Mortgage Revenue Bonds, Hospital and
Nursing Home Projects, Series 1992B, 6.200%, 8/15/22
5,500 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 5,687,055
Hospital Insured Mortgage Revenue Refunding Bonds,
Series 1994A, 5.500%, 8/15/24 - MBIA Insured
1,880 New York State Medical Care Facilities Financing Agency, 8/05 at 102.00 AAA 2,060,461
FHA-Insured Mortgage Revenue Bonds, Hospital and
Nursing Home Projects, Series 1995B, 6.250%, 2/15/15
1,025 New York State Medical Care Facilities Financing Agency, 2/05 at 102.00 Aa2 1,067,948
FHA-Insured Mortgage Project Revenue Bonds,
Series 1995C, 6.250%, 8/15/15
2,000 New York State Dormitory Authority, Revenue Bonds, 2/05 at 100.00 BBB- 2,023,320
Mount Sinai NYU Health Obligated Group, Series 2002C,
6.000%, 7/01/26
1,100 Yonkers Industrial Development Agency, New York, 7/11 at 101.00 BB 1,108,217
Civic Facility Revenue Bonds, St. John's Riverside Hospital
Project, Series 2001A, 7.125%, 7/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.0%
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2001A:
1,610 5.500%, 11/01/31 5/11 at 101.00 AA 1,658,203
2,000 5.600%, 11/01/42 5/11 at 101.00 AA 2,060,180
17
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
$ 910 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA $ 943,834
450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 465,215
1,140 New York State Housing Finance Agency, Multifamily 11/03 at 100.00 AAA 1,142,896
Housing Revenue Bonds, Series 1989B, 7.550%, 11/01/29
(Alternative Minimum Tax) - AMBAC Insured
1,585 New York State Housing Finance Agency, Multifamily Housing 2/04 at 101.00 Aa1 1,622,247
Revenue Bonds, Secured Mortgage Program, Series 1992A,
7.000%, 8/15/12 (Alternative Minimum Tax)
1,100 New York State Housing Finance Agency, Multifamily 8/09 at 101.00 Aa1 1,136,531
Housing Revenue Bonds, Secured Mortgage Program,
Series 1999I, 6.200%, 2/15/20 (Alternative Minimum Tax)
3,255 Puerto Rico Housing Finance Corporation, Multifamily 10/03 at 100.00 A 3,368,111
Mortgage Revenue Bonds, Portfolio A, Series I,
7.500%, 4/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.8%
2,590 State of New York Mortgage Agency, Homeowner Mortgage 11/09 at 100.00 Aa1 2,777,127
Revenue Bonds, Series 88, 6.250%, 4/01/30 (Alternative
Minimum Tax)
485 State of New York Mortgage Agency, Homeowner Mortgage 1/06 at 102.00 AAA 505,157
Revenue Bonds, Series 52, 6.100%, 4/01/26 (Alternative
Minimum Tax) - MBIA Insured
825 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 887,279
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
1,250 State of New York Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 1,300,388
Revenue Bonds, Series 73-A, 5.250%, 10/01/17 (Alternative
Minimum Tax)
7,095 State of New York Mortgage Agency, Homeowner Mortgage 4/11 at 100.00 Aa1 7,292,312
Revenue Bonds, Series 97, 5.500%, 4/01/31 (Alternative
Minimum Tax)
1,660 State of New York Mortgage Agency, Mortgage Revenue 4/13 at 101.00 Aaa 1,633,042
Bonds, Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.8%
1,650 New York City Industrial Development Agency, New York, Civic 7/10 at 102.00 N/R 1,730,091
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19
1,350 New York City Industrial Development Agency, New York, Civic 7/11 at 101.00 N/R 1,342,467
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001-A1, 7.250%, 7/01/16
3,000 New York State Dormitory Authority, FHA-Insured Mortgage 2/07 at 102.00 AA 3,340,320
Nursing Home Revenue Bonds, Hebrew Home for the Aged
at Riverdale, 6.125%, 2/01/37
1,375 New York State Dormitory Authority, Revenue Bonds, 7/10 at 102.00 A 1,492,301
Miriam Osborn Memorial Home Association, Series 2000B,
6.375%, 7/01/29 - ACA Insured
2,365 New York State Medical Care Facilities Finance Agency, 2/06 at 102.00 AA+ 2,611,906
FHA-Insured Mortgage Hospital and Nursing Home Revenue
Bonds, Series 1995C, 6.100%, 8/15/15
1,520 New York State Dormitory Authority, FHA-Insured Mortgage 2/13 at 102.00 AAA 1,540,049
Nursing Home Revenue Bonds, Shorefront Jewish Geriatric
Center Inc., Series 2002, 5.200%, 2/01/32
2,755 Oswego County Industrial Development Agency, New York, 2/09 at 101.00 AAA 2,886,717
FHA-Insured Civic Facility Mortgage Revenue Bonds, Bishop
Commons Inc. Project, Series 1999A, 5.375%, 2/01/49
4,000 Syracuse Housing Authority, New York, FHA-Insured 2/08 at 102.00 AAA 4,333,440
Mortgage Revenue Bonds, Loretto Rest Residential Health
Care Facility Project, Series 1997A, 5.600%, 8/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.8%
745 Freeport, New York, General Obligation Bonds, Series 2000A, 4/10 at 101.00 Aaa 866,308
6.000%, 4/01/18 - FGIC Insured
1,275 Nassau County, New York, General Obligations, Serial 3/10 at 100.00 AAA 1,508,440
General Improvement Bonds, Series F, 6.500%, 3/01/18 -
FSA Insured
2,095 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,725,616
Water Treatment Plant Bonds, Series 1994, 8.000%, 11/01/09
(Alternative Minimum Tax) - MBIA Insured
1,350 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,439,438
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Oneida County, New York, General Obligation Public
Improvement Bonds, Series 2000:
200 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 223,458
200 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 221,942
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.3%
$ 2,000 Battery Park City Authority, New York, Junior Revenue Bonds, 11/06 at 102.00 AAA $ 2,121,480
Series 1996A, 5.500%, 11/01/29 - AMBAC Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,175 5.750%, 7/01/18 No Opt. Call AA- 2,518,019
2,000 5.125%, 1/01/29 7/12 at 100.00 AA- 2,032,280
1,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 1,013,730
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
5,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 5,230,200
2,500 5.000%, 11/15/30 11/12 at 100.00 AA- 2,515,325
1,680 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ 1,704,494
Revenue Bonds, Series 2003, 5.500%, 1/01/34
2,000 Nassau Health Care Corporation, New York, County Guaranteed 8/09 at 102.00 AAA 2,202,840
Health System Revenue Bonds, Series 1999,
5.750%, 8/01/29 - FSA Insured
4,575 New York City Metropolitan Transportation Authority, New York, 1/10 at 101.00 AAA 5,104,190
Certificates of Participation, Triborough Bridge and Tunnel
Authority, Series 2000A, 5.875%, 1/01/30 - AMBAC Insured
2,665 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AA+ 2,735,836
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
3,000 New York State Dormitory Authority, Court Facilities Lease 5/10 at 101.00 AAA 3,304,470
Revenue Bonds, City of New York Issue, Series 1999,
5.750%, 5/15/30 - AMBAC Insured
New York State Dormitory Authority, Nassau County BOCES Program,
Revenue Bonds, Series 2001A:
1,265 5.250%, 8/15/17 - FSA Insured 8/11 at 100.00 AAA 1,373,967
1,385 5.250%, 8/15/18 - FSA Insured 8/11 at 100.00 AAA 1,495,565
New York State Dormitory Authority, Mental Health Services
Facilities Improvement Revenue Bonds, Series 2000D:
1,755 5.875%, 2/15/18 - FSA Insured 8/10 at 100.00 AAA 1,956,018
1,690 5.875%, 2/15/19 - FSA Insured 8/10 at 100.00 AAA 1,876,052
2,080 5.875%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 2,308,987
1,200 New York State Dormitory Authority, State Personal Income 3/13 at 100.00 AA 1,283,472
Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/10 at 101.00 AAA 1,142,210
Fund Bonds, Series 2000B, 5.750%, 4/01/16 - FGIC Insured
1,500 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,596,360
Fund Bonds, Series 2003A, Second General,
5.250%, 4/01/22 - MBIA Insured
4,200 New York State Thruway Authority, Local Highway and Bridge 4/11 at 100.00 AA- 4,611,264
Service Contract Bonds, Series 2001, 5.250%, 4/01/17
6,500 New York State Thruway Authority, State Personal Income 3/12 at 100.00 AA 6,808,685
Tax Revenue Bonds, Series 2002A, 5.125%, 3/15/21
2,950 New York State Urban Development Corporation, State 3/13 at 100.00 AA 3,040,742
Personal Income Tax Revenue Bonds, Series 2003B,
5.000%, 3/15/22 (WI, settling 10/09/03)
New York State Urban Development Corporation, State Personal
Income Tax Revenue Bonds, State Facilities and Equipment, Series
2002A:
2,860 5.375%, 3/15/19 3/12 at 100.00 AA 3,106,646
2,000 5.375%, 3/15/20 3/12 at 100.00 AA 2,156,220
4,000 New York State Urban Development Corporation, Correctional No Opt. Call AA- 4,498,760
and Youth Facilities Service Contract Revenue Bonds,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
5,000 Niagara Falls City School District, Niagara County, New York, 6/08 at 101.00 AAA 5,220,700
Certificates of Participation, High School Facility,
Series 1998, 5.375%, 6/15/28 - MBIA Insured
1,785 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 2,028,135
Revenue Bonds, Series 2000B, 5.875%, 7/01/35 -
MBIA Insured
5,600 Tobacco Settlement Financing Corporation of New York State, 6/13 at 100.00 AAA 5,987,184
Asset-Backed Bonds, Series 2003-A1, 5.250%, 6/01/20 -
AMBAC Insured
19
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,480 Virgin Islands Public Finance Authority, Gross Receipts Tax 10/10 at 101.00 BBB- $ 3,850,028
Loan Bonds, Series 1999A, 6.500%, 10/01/24
2,520 Yonkers Industrial Development Agency, New York, Civic 2/11 at 100.00 BBB- 2,664,875
Facility Revenue Bonds, Community Development Properties,
Yonkers Inc. Project, Series 2001A, 6.625%, 2/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.5%
1,580 Albany Parking Authority, New York, Revenue Bonds, 10/11 at 101.00 BBB+ 1,695,103
Series 2001B, 5.250%, 10/15/12
1,500 New York Metropolitan Transportation Authority, Transportation No Opt. Call AAA 1,672,740
Revenue Bonds, Series 2003A, 5.000%, 11/15/15 -
FGIC Insured
1,900 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 1,281,816
Special Facilities Revenue Bonds, British Airways PLC Project,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
1,455 New York State Thruway Authority, General Revenue Bonds, 1/04 at 102.00 AAA 1,496,046
Series B, 5.000%, 1/01/20 - MBIA Insured
1,000 Niagara Frontier Transportation Authority, New York, Revenue 4/09 at 101.00 AAA 1,069,240
Bonds, Buffalo-Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
1,925 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 2,062,291
Bonds, One Hundred Twentieth Series, 5.750%, 10/15/26
(Alternative Minimum Tax) - MBIA Insured
2,040 Puerto Rico Port Authority, Special Facilities Revenue Bonds, 6/06 at 102.00 CCC 1,142,584
American Airlines, Inc. Project, Series 1996A,
6.250%, 6/01/26 (Alternative Minimum Tax)
2,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AA- 2,102,660
Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/19
5,750 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 5,965,108
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
2,400 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AAA 2,549,064
Revenue Refunding Subordinate Lien Bonds, Series 2002E,
5.250%, 11/15/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.4%
Longwood Central School District, Suffolk County, New York,
Series 2000:
1,500 5.750%, 6/15/17 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,785,405
1,500 5.750%, 6/15/18 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,785,405
4,525 Metropolitan Transportation Authority, New York, Commuter 7/11 at 100.00 AAA 5,205,832
Facilities Revenue Bonds, Series 1998A, 5.250%, 7/01/28
(Pre-refunded to 7/01/11)
5,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 5,407,550
Tax Fund Bonds, Series 1998A, 4.500%, 4/01/18
(Pre-refunded to 10/01/15) - FGIC Insured
1,350 New York, New York, General Obligation Bonds, Fiscal 10/03 at 100.00 AAA 1,391,094
Series 1990B, 7.250%, 10/01/06 - FGIC Insured
505 New York City Municipal Water Finance Authority, Water 6/10 at 101.00 AAA 611,171
and Sewer System Revenue Bonds, Fiscal Series 2000B,
6.100%, 6/15/31 (Pre-refunded to 6/15/10) - MBIA Insured
295 New York State Environmental Facilities Corporation, State 11/04 at 102.00 AAA 320,252
Water Pollution Control Revolving Fund Revenue Bonds,
Pooled Loan Issue, Series 1994D, 6.900%, 5/15/15
(Pre-refunded to 11/15/04)
5,535 New York State Dormitory Authority, Revenue Bonds, State 5/12 at 101.00 AAA 6,281,395
University Educational Facilities, Series 2002A,
5.000%, 5/15/17 (Pre-refunded to 5/15/12) - FGIC Insured
355 New York State Dormitory Authority, State University 5/08 at 101.00 AAA 400,160
Educational Facilities Revenue Bonds, Series 1998B,
4.750%, 5/15/28 (Pre-refunded to 5/15/08) - FSA Insured
3,000 New York State Urban Development Corporation, Correctional 1/09 at 101.00 AAA 3,550,650
Facilities Service Contract Revenue Bonds, Series C,
6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured
965 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,155,028
Revenue Bonds, Series 2000B, 5.875%, 7/01/35 (Pre-refunded
to 7/01/10) - MBIA Insured
1,600 Triborough Bridge and Tunnel Authority, New York, General No Opt. Call AAA 1,749,968
Purpose Revenue Bonds, Series 1993B, 5.000%, 1/01/20
7,500 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 8,575,200
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded to 1/01/22)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.4%
1,000 Islip Resource Recovery Agency, New York, Revenue Bonds, 7/04 at 102.00 AAA 1,054,750
Series 1994B, 6.125%, 7/01/13 (Alternative Minimum Tax) -
AMBAC Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
$ 3,500 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA $ 3,647,945
2,500 5.250%, 12/01/26 6/08 at 101.00 A- 2,559,375
5,000 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- 5,122,800
Revenue Bonds, Series 2001A, 5.375%, 9/01/25
3,650 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 3,982,253
General Revenue Bonds, Series 2003C, 5.000%, 9/01/15 -
CIFG Insured
5,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 4,443,750
Industrial Revenue Bonds, Brooklyn Navy Yard Cogeneration
Partners, L.P. Project, Series 1997, 5.750%, 10/01/36
(Alternative Minimum Tax)
4,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 4,109,000
Series 2000A, 5.250%, 11/15/40
2,000 Niagara County, New York, Industrial Development Agency, 11/11 at 101.00 Baa1 2,094,600
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara L.P. Facility,
Series 2001D, 5.550%, 11/15/24 (Mandatory put 11/15/15)
4,000 Suffolk County Industrial Development Agency, New York, 1/09 at 101.00 N/R 3,700,040
Industrial Development Revenue Bonds, Nissequogue
Cogeneration Partners Facility, Series 1998, 5.500%, 1/01/23
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.1%
700 Monroe County Water Authority, New York, Water Revenue 8/11 at 101.00 AA 731,843
Bonds, Series 2001, 5.150%, 8/01/22
1,250 New York City Municipal Water Finance Authority, 6/09 at 101.00 AAA 1,335,650
New York, Water and Sewer System Revenue Bonds,
Fiscal Series 2000A, 5.500%, 6/15/32 - FGIC Insured
5,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 5,334,550
Water and Sewer System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33
2,000 New York City Municipal Water Finance Authority, 6/11 at 101.00 AA 2,229,540
New York, Water and Sewer System Revenue Bonds,
Fiscal Series 2001D, 5.500%, 6/15/17
2,495 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,948,242
Water and Sewer System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
2,225 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 2,430,012
Water and Sewer System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
715 New York State Environmental Facilities Corporation, State 12/03 at 100.00 AAA 737,880
Water Pollution Control Revolving Fund Revenue Bonds,
New York City Municipal Water Finance Authority Project,
Series 1990A, 7.500%, 6/15/12
160 New York State Environmental Facilities Corporation, State 11/04 at 102.00 AAA 172,850
Water Pollution Control Revolving Fund Revenue Bonds,
Pooled Loan Issue, Series 1994D, 6.900%, 5/15/15
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, Pooled
Loan Issue, Series 2002F:
1,000 5.250%, 11/15/17 11/12 at 100.00 AAA 1,104,790
3,345 5.250%, 11/15/19 11/12 at 100.00 AAA 3,644,511
4,060 5.250%, 11/15/20 11/12 at 100.00 AAA 4,384,962
- ------------------------------------------------------------------------------------------------------------------------------------
$ 345,740 Total Long-Term Investments (cost $344,811,753) - 148.6% 368,300,613
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 3,775,927
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.2)% (124,300,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $247,776,540
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
21
Nuveen New York Dividend Advantage Municipal Fund (NAN)
Portfolio of
INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.3%
$ 970 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 BBB $ 861,399
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
560 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 548,066
New York, Senior Tobacco Settlement Asset-Backed
Bonds, Series 2000, 6.000%, 7/15/20
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
265 6.000%, 6/01/15 6/10 at 101.00 BBB 260,206
1,915 6.150%, 6/01/25 6/10 at 101.00 BBB 1,862,357
1,160 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 1,161,810
Pass-Through Bonds, Series 2000, 5.800%, 6/01/23
570 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 502,472
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
475 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 426,303
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
2,250 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A2 2,186,055
Series 1999-1, 6.250%, 7/15/27
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 1,258,475
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.2%
Kenmore Housing Authority, New York, Revenue Bonds, State
University of New York at Buffalo, Student Apartment Project,
Series 1999A:
3,000 5.500%, 8/01/19 - RAAI Insured 8/09 at 102.00 AA 3,236,340
2,750 5.500%, 8/01/24 - RAAI Insured 8/09 at 102.00 AA 2,886,208
3,070 Monroe County Industrial Development Agency, New York, 6/09 at 102.00 AA 3,180,950
Civic Facility Revenue Bonds, St. John Fisher College Project,
Series 1999, 5.375%, 6/01/24 - RAAI Insured
500 The Trust for Cultural Resources of the City of New York, 7/10 at 101.00 A 550,450
New York, Revenue Bonds, Museum of American Folk Art,
Series 2000, 6.000%, 7/01/22 - ACA Insured
1,800 New York City Industrial Development Agency, New York, 1/12 at 100.00 A- 1,842,210
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
3,500 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AA- 3,730,930
Bonds, State University Dormitory Facilities Issue,
Series 1999B, 5.375%, 7/01/19
1,000 Dormitory Authority of the State of New York, Lease 7/09 at 101.00 AAA 1,066,660
Revenue Bonds, State University Dormitory Facilities Issue,
Series 1999C, 5.500%, 7/01/29 - MBIA Insured
2,500 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 2,661,600
Bonds, Rochester Institute of Technology, Series 1997,
5.250%, 7/01/22 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Insured 7/07 at 102.00 AAA 1,132,550
Revenue Bonds, Siena College, Series 1997,
5.700%, 7/01/17 - MBIA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 545,490
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20 -
FSA Insured
3,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 A+ 3,260,160
University of Rochester, Series 1999A, 5.500%, 7/01/16
500 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 101.00 AAA 564,705
Bonds, Pace University, Series 2000, 6.000%, 7/01/29 -
MBIA Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
1,750 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 2,033,343
750 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 816,023
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,250 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AA $ 1,370,363
Bonds, Marymount Manhattan College, Series 1999,
6.250%, 7/01/29 - RAAI Insured
1,500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 AA 1,559,775
Civic Facility Revenue Bonds, Niagara University Project,
Series 2001A, 5.350%, 11/01/23 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 34.1%
Albany Industrial Development Agency, New York, Revenue Bonds,
Albany Medical Center Project, Series 1999:
1,120 6.000%, 5/01/19 5/09 at 101.00 N/R 1,095,562
1,460 6.000%, 5/01/29 5/09 at 101.00 N/R 1,362,925
1,500 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 1,585,785
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
Dormitory Authority of the State of New York, Insured Revenue
Bonds, Frances Schervier Home and Hospital, Franciscan Health
Partnership Obligated Group, Series 1997:
2,000 5.500%, 7/01/17 - RAAI Insured 7/07 at 102.00 AA 2,226,200
2,000 5.500%, 7/01/27 - RAAI Insured 7/07 at 102.00 AA 2,091,060
600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 613,350
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 515,755
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
Dormitory Authority of the State of New York, FHA-Insured
Mortgage Hospital Revenue Bonds, Victory Memorial Hospital,
Series 1999:
2,350 5.250%, 8/01/15 - MBIA Insured 8/09 at 101.00 AAA 2,537,271
2,000 5.375%, 8/01/25 - MBIA Insured 8/09 at 101.00 AAA 2,112,460
4,850 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 5,201,965
Revenue Refunding Bonds, Wyckoff Heights Medical Center,
Series 1998H, 5.300%, 8/15/21 - MBIA Insured
2,605 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 101.00 AAA 2,753,329
Mortgage Hospital Revenue Bonds, The Memorial Hospital
of William F. and Gertrude F. Jones, Inc., Series 1999,
5.250%, 8/01/19 - MBIA Insured
4,825 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 5,112,474
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.450%, 8/01/29 - AMBAC Insured
1,575 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 1,598,704
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
2,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 BBB+ 2,206,640
Catholic Health Services of Long Island, St. Catherine
of Sienna Medical Center, Series 2000A, 6.500%, 7/01/20
5,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 Aa2 5,167,900
Hospital Insured Mortgage Revenue Bonds, 1994 Series A,
5.250%, 8/15/14
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/05 at 100.00 BBB- 1,011,660
Mount Sinai NYU Health Obligated Group, Series 2002C,
6.000%, 7/01/26
4,000 Ulster County Industrial Development Agency, New York, 11/09 at 101.00 A2 4,059,800
Civic Facility Revenue Bonds, The Kingston Hospital
Project - Letter of Credit Secured, Series 1999,
5.650%, 11/15/24
3,825 Yates County Industrial Development Agency, New York, 8/09 at 101.00 AAA 4,184,091
FHA-Insured Civic Facility Revenue Bonds, Soldiers and
Sailors Memorial Hospital of Yates County Project,
Series 1999A, 5.650%, 2/01/39
650 Yonkers Industrial Development Agency, New York, Civic 7/11 at 101.00 BB 654,856
Facility Revenue Bonds, St. John's Riverside Hospital
Project, Series 2001A, 7.125%, 7/01/31
3,000 Yonkers Industrial Development Agency, New York, 2/09 at 101.00 AAA 3,117,210
FHA-Insured Mortgage Revenue Bonds, Michael Malotz
Skilled Nursing Pavilion Project, Series 1999,
5.450%, 2/01/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9%
990 New York City Housing Development Corporation, New York, 11/10 at 101.00 AA 1,042,807
Multifamily Housing Revenue Bonds, Series 2000A,
5.850%, 11/01/20 (Alternative Minimum Tax)
3,000 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 3,089,820
Multifamily Housing Revenue Bonds, Series 2001A,
5.500%, 11/01/31
23
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.6%
$ 645 Guam Housing Corporation, Single Family Mortgage Revenue No Opt. Call AAA $ 698,922
Bonds, Mortgage-Backed Securities Program, Series 1998A,
5.750%, 9/01/31 (Alternative Minimum Tax)
4,690 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 5,044,048
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
840 State of New York Mortgage Agency, Mortgage Revenue 4/13 at 101.00 Aaa 826,358
Bonds, 33-Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.0%
Appleridge Retirement Community, Inc., New York,
GNMA Collateralized Mortgage Loan Revenue Bonds,
Series 1999:
1,150 5.700%, 9/01/31 9/09 at 102.00 Aaa 1,262,160
1,250 5.750%, 9/01/41 9/09 at 102.00 Aaa 1,386,050
820 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 859,803
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2000, 8.125%, 7/01/19
750 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 745,815
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001-A1, 7.250%, 7/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.9%
Monticello Central School District, Sullivan County, New York,
General Obligation Bonds, Series 2000:
300 6.000%, 6/15/18 - FGIC Insured 6/09 at 101.00 AAA 348,468
335 6.000%, 6/15/19 - FGIC Insured 6/09 at 101.00 AAA 389,123
300 6.000%, 6/15/20 - FGIC Insured 6/09 at 101.00 AAA 348,468
County of Nassau, New York, General Obligation Improvement
Bonds, Series 2000E:
1,400 6.000%, 3/01/17 - FSA Insured 3/10 at 100.00 AAA 1,616,146
740 6.000%, 3/01/19 - FSA Insured 3/10 at 100.00 AAA 854,249
5,000 City of New York, New York, General Obligation Bonds, 5/09 at 101.00 AAA 5,100,850
Fiscal 1999 Series J, 5.125%, 5/15/29 - MBIA Insured
800 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 853,000
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Orange County, New York, General Obligation Bonds,
Series 1997:
3,040 5.125%, 9/01/22 9/07 at 101.00 Aa1 3,140,198
1,195 5.125%, 9/01/23 9/07 at 101.00 Aa1 1,230,468
City of Rochester, New York, General Obligation Serial Bonds,
Series 1999:
720 5.250%, 10/01/18 - MBIA Insured No Opt. Call AAA 817,740
720 5.250%, 10/01/19 - MBIA Insured No Opt. Call AAA 815,105
2,280 Rockland County, New York, General Obligation Bonds, 10/09 at 101.00 AA- 2,595,210
Series 1999, 5.600%, 10/15/16
Rye City School District, Westchester County, New York, General
Obligation Bonds, Series 1999:
650 5.600%, 8/15/17 8/08 at 101.00 Aaa 737,893
675 5.600%, 8/15/18 8/08 at 101.00 Aaa 766,274
675 5.600%, 8/15/19 8/08 at 101.00 Aaa 766,274
1,000 Yonkers, New York, General Obligation Bonds, School Issue, 6/09 at 101.00 AAA 1,064,660
Series 1999C, 5.000%, 6/01/19 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.2%
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
1,700 5.750%, 1/01/17 No Opt. Call AA- 1,962,786
1,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,016,140
1,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 1,013,730
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,092,080
2,000 5.000%, 11/15/30 11/12 at 100.00 AA- 2,012,260
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,130 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ $ 1,146,475
Revenue Bonds, Series 2003, 5.500%, 1/01/34
2,500 Nassau County Interim Finance Authority, New York, Sales 11/10 at 100.00 AAA 2,863,775
Tax Secured Revenue Bonds, Series 2000A,
5.750%, 11/15/16 - MBIA Insured
1,670 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AA+ 1,714,389
Tax Secured Bonds, Fiscal 2003 Series E, 5.000%, 2/01/23
2,000 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 AAA 2,202,980
Lease Revenue Bonds, City of New York Issue, Series 1999,
5.750%, 5/15/30 - AMBAC Insured
1,960 Dormitory Authority of the State of New York, Mental Health 8/10 at 100.00 AAA 2,184,498
Services Facilities Improvement Revenue Bonds,
Series 2000D, 5.875%, 8/15/18 - FSA Insured
1,000 Dormitory Authority of the State of New York, Service 4/12 at 100.00 AA- 1,074,040
Contract Bonds, Child Care Facilities Development Program
Issue, Series 2002, 5.375%, 4/01/19
600 Dormitory Authority of the State of New York, State Personal 3/13 at 100.00 AA 641,736
Income Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,057,080
Fund Bonds, Series 2003A, Second General, 5.250%, 4/01/23 -
MBIA Insured
2,900 New York State Thruway Authority, Local Highway and Bridge 4/08 at 101.00 AAA 3,219,261
Service Contract Bonds, Series 1998A, 5.375%, 4/01/16 -
MBIA Insured
1,000 New York State Urban Development Corporation, State Personal 3/12 at 100.00 AA 1,019,920
Income Tax Revenue Bonds, State Facilities and Equipment,
Series 2002A, 5.125%, 3/15/27
3,345 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 3,717,901
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.250%, 10/15/15 - AMBAC Insured
2,100 Tobacco Settlement Financing Corporation of New York State, 6/13 at 100.00 AAA 2,228,184
Asset-Backed Bonds, Series 2003-A1, 5.250%, 6/01/21 -
AMBAC Insured
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB- 829,748
Loan Bonds, Series 1999A, 6.500%, 10/01/24
1,400 Yonkers Industrial Development Agency, New York, Civic 2/11 at 100.00 BBB- 1,480,486
Facility Revenue Bonds, Community Development Properties,
Yonkers Inc. Project, Series 2001A, 6.625%, 2/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.4%
1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 1,046,680
Revenue Bonds, Series 2002A Refunding, 5.125%, 11/15/22 -
FGIC Insured
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 690,020
Special Facilities Revenue Bonds, American Airlines, Inc. JFK
Airport Project, Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
500 Niagara Frontier Transportation Authority, New York, Revenue 4/09 at 101.00 AAA 534,620
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
3,000 The Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,213,960
Bonds, One Hundred Twentieth Series, 5.750%, 10/15/26
(Alternative Minimum Tax) - MBIA Insured
1,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AA- 1,096,270
Purpose Revenue Bonds, Series 2001A, 5.250%, 1/01/16
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 2,593,525
Purpose Revenue Bonds, Series 2002B Refunding,
5.000%, 11/15/21
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.4%
1,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 1,333,750
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured
5,520 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 6,376,759
Tax Fund Bonds, Series 1999A, 5.250%, 4/01/23 (Pre-refunded
to 10/01/14) - FSA Insured
1,000 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 1,035,930
Mental Health Services Facilities Improvement Revenue
Bonds, 1994 Series A, 5.250%, 8/15/23 (Pre-refunded
to 2/15/04) - MBIA Insured
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AA-*** 3,323,460
Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28
(Pre-refunded to 1/01/22)
25
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.4%
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
$ 4,800 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA $ 5,002,896
5,575 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 5,783,784
2,000 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 2,182,060
General Revenue Bonds, Series 2003C, 5.000%, 9/01/15 -
CIFG Insured
2,000 Power Authority of the State of New York, General Revenue 11/10 at 100.00 Aa2 2,062,780
Bonds, Series 2000A, 5.250%, 11/15/30
1,325 Suffolk County Industrial Development Agency, New York, No Opt. Call N/R 1,370,010
Industrial Development Revenue Bonds, Nissequogue
Cogeneration Partners Facility, Series 1998,
4.875%, 1/01/08 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.5%
6,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 6,660,240
Water and Sewer System Revenue Bonds, Fiscal 1996
Series B, 5.750%, 6/15/26 - MBIA Insured
2,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 2,133,820
Water and Sewer System Revenue Bonds, Fiscal 2001
Series A, 5.500%, 6/15/33
1,130 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA 1,234,115
Water and Sewer System Revenue Bonds, Fiscal 2003
Series A, 5.375%, 6/15/19
1,955 New York State Environmental Facilities Corporation, 11/12 at 100.00 AAA 2,159,860
State Clean Water and Drinking Water Revolving Funds
Revenue Bonds, Pooled Loan Issue, Series 2002F,
5.250%, 11/15/17
- ------------------------------------------------------------------------------------------------------------------------------------
$ 196,220 Total Long-Term Investments (cost $194,627,479) - 144.9% 208,425,814
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 4,460,030
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.0)% (69,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $143,885,844
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
26
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK)
Portfolio of
INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.1%
$ 485 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 430,699
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
565 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 498,064
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
285 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 255,782
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
5,000 TSASC, Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 A2 4,857,900
Series 1999-1, 6.250%, 7/15/27
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.8%
2,750 Albany Industrial Development Agency, New York, Revenue 7/11 at 101.00 Aaa 2,884,750
Bonds, St. Rose College Project, Series 2001A,
5.375%, 7/01/31 - AMBAC Insured
1,975 Amherst Industrial Development Agency, New York, Revenue 8/11 at 102.00 AAA 2,049,398
Bonds, UBF Faculty-Student Housing Corporation, University
of Buffalo Village Green Project, Series 2001A,
5.250%, 8/01/31 - AMBAC Insured
2,190 Monroe County Industrial Development Agency, New York, 6/11 at 102.00 AA 2,254,277
Civic Facility Revenue Bonds, St. John Fisher College
Project, Series 2001, 5.250%, 6/01/26 - RAAI Insured
1,100 New York City Industrial Development Agency, New York, 1/12 at 100.00 A- 1,125,795
Civic Facility Revenue Bonds, The YMCA of Greater
New York, Series 2002, 5.250%, 8/01/21
2,000 New York State Dormitory Authority, Insured Revenue Bonds, 7/08 at 101.00 AAA 2,085,180
New York Medical College, Series 1998, 5.000%, 7/01/21 -
MBIA Insured
1,265 New York State Dormitory Authority, City University System 7/08 at 102.00 AAA 1,310,312
Consolidated Revenue Bonds, Third General Resolution,
1998 Series 1, 5.250%, 7/01/25 - FGIC Insured
1,000 New York State Dormitory Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,038,660
Series 2000, Canisius College, 5.250%, 7/01/30 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.8%
925 Nassau County Industrial Development Agency, New York, No Opt. Call N/R 1,012,209
Civic Facility Revenue Refunding Bonds, North Shore
Health System Obligated Group Projects, Series 2001B,
5.875%, 11/01/11
850 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 A3 882,326
Health System Revenue Bonds, Series 1999A,
5.250%, 2/15/17
500 New York City Industrial Development Agency, New York, 7/12 at 101.00 Baa3 533,230
Civic Facility Revenue Bonds, Staten Island University
Hospital Project, Series 2002C, 6.450%, 7/01/32
500 New York City Industrial Development Agency, New York, 7/12 at 100.00 Baa3 527,355
Civic Facility Revenue Bonds, Staten Island University
Hospital Project, Series 2001B, 6.375%, 7/01/31
320 New York State Dormitory Authority, Revenue Bonds, 7/06 at 102.00 Ba3 307,907
NYACK Hospital, Series 1996, 6.000%, 7/01/06
1,500 New York State Dormitory Authority, FHA-Insured 2/08 at 102.00 AAA 1,576,875
Mortgage Revenue Refunding Bonds, United Health
Services, Series 1997, 5.375%, 8/01/27 - AMBAC Insured
500 New York State Dormitory Authority, Revenue Bonds, 7/13 at 100.00 Baa1 511,125
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
3,000 New York State Dormitory Authority, FHA-Insured 8/09 at 101.00 AAA 3,212,100
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
2,505 New York State Dormitory Authority, FHA-Insured Mortgage 8/09 at 101.00 AAA 2,835,109
Revenue Bonds, New York Hospital Medical Center
of Queens, Series 1999, 5.550%, 8/15/29 -
AMBAC Insured
1,000 New York State Dormitory Authority, Revenue Bonds, 7/11 at 101.00 A3 1,021,150
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
1,250 New York State Dormitory Authority, Revenue Bonds, 2/05 at 100.00 BBB- 1,264,575
Mount Sinai NYU Health Obligated Group, Series 2002C,
6.000%, 7/01/26
27
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
Suffolk County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Huntington Hospital Project, Series
2002C:
$ 425 6.000%, 11/01/22 11/12 at 100.00 Baa1 $ 450,772
610 5.875%, 11/01/32 11/12 at 100.00 Baa1 629,014
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.4%
3,930 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 4,139,273
Multifamily Housing Revenue Bonds, Series 2001B,
5.250%, 11/01/16
1,000 New York City Housing Development Corporation, New York, 11/11 at 100.00 AA 1,016,180
Multifamily Housing Revenue Bonds, Series 2001C-2,
5.400%, 11/01/33 (Alternative Minimum Tax)
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
455 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 471,917
225 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 232,607
1,475 New York State Housing Finance Agency, Multifamily Housing 2/11 at 100.00 Aa1 1,517,229
Revenue Bonds, Series 2001L, Secured Mortgage Program,
5.700%, 2/15/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.5%
3,285 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 3,532,985
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.7%
525 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 522,070
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001-A1, 7.250%, 7/01/16
2,150 New York State Dormitory Authority, Insured Revenue 7/11 at 102.00 AAA 2,212,565
Bonds Pooled Loan Program 1, New York State Rehabilitation
Association, Series 2001A, 5.000%, 7/01/23 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.3%
1,775 Bath Central School District, Steuben County, New York, 6/12 at 100.00 AAA 1,735,293
General Obligation Bonds, Series 2002, 4.000%, 6/15/18 -
FGIC Insured
5,000 Nassau County, New York, General Obligation Serial 6/09 at 102.00 AAA 5,349,250
Improvement Bonds, Series B, 5.250%, 6/01/22 -
AMBAC Insured
4,000 New York, New York, General Obligation Bonds, 8/08 at 101.00 AAA 4,204,120
Fiscal Series 1998H, 5.375%, 8/01/27 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.5%
New York Metropolitan Transportation Authority, State Service
Contract Refunding Bonds, Series 2002A:
1,000 5.750%, 1/01/17 No Opt. Call AA- 1,154,580
1,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,016,140
1,750 New York Metropolitan Transportation Authority, Dedicated 11/12 at 100.00 AAA 1,830,570
Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 -
FSA Insured
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB+ 568,165
Revenue Bonds, Series 2003, 5.500%, 1/01/34
1,670 Nassau County Interim Finance Authority, New York, Sales 11/10 at 100.00 AAA 1,860,747
Tax Secured Revenue Bonds, Series 2000A, 5.375%, 11/15/17 -
MBIA Insured
1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AA+ 1,026,580
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
New York State Municipal Bond Bank Agency, Special Program
Revenue Bonds, City of Buffalo, Series 2001A:
1,070 5.250%, 5/15/23 - AMBAC Insured 5/11 at 100.00 AAA 1,120,900
1,125 5.250%, 5/15/24 - AMBAC Insured 5/11 at 100.00 AAA 1,172,621
New York State Dormitory Authority, Service Contract Bonds,
Child Care Facilities Development Program Issue, Series 2002:
1,905 5.375%, 4/01/17 4/12 at 100.00 AA- 2,072,888
1,000 5.375%, 4/01/19 4/12 at 100.00 AA- 1,074,040
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 400 New York State Dormitory Authority, State Personal Income 3/13 at 100.00 AA $ 427,824
Tax Revenue Bonds, Series 2003A, 5.375%, 3/15/22
2,500 New York State Urban Development Corporation, State 3/12 at 100.00 AA 2,549,800
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002A, 5.125%, 3/15/27
2,100 Tobacco Settlement Financing Corporation of New York State, 6/13 at 100.00 AAA 2,214,660
Asset-Backed Bonds, Series 2003-A1, 5.250%, 6/01/22 -
AMBAC Insured
2,250 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 BBB- 2,274,075
Refunding Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.7%
Albany Parking Authority, New York, Revenue Bonds,
Series 2001A:
2,000 5.625%, 7/15/20 7/11 at 101.00 BBB+ 2,113,380
1,500 5.625%, 7/15/25 7/11 at 101.00 BBB+ 1,541,730
1,000 New York City Industrial Development Agency, New York, 12/12 at 101.00 Ba2 926,090
Special Facilities Revenue Bonds, British Airways
PLC Project, Series 2002, 7.625%, 12/01/32
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 690,020
Special Facilities Revenue Bonds, American Airlines, Inc.
JFK Airport Project, Series 2002B, 8.500%, 8/01/28
(Alternative Minimum Tax)
3,400 Niagara Frontier Transportation Authority, New York, 4/09 at 101.00 AAA 3,635,416
Revenue Bonds, Buffalo-Niagara International Airport,
Series 1999A, 5.625%, 4/01/29 (Alternative Minimum
Tax) - MBIA Insured
2,195 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 2,288,529
Bonds, One Hundred Twentieth Series, 5.500%, 10/15/35
(Alternative Minimum Tax) - MBIA Insured
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 2,593,525
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
780 Triborough Bridge and Tunnel Authority, New York, General No Opt. Call AAA 900,307
Revenue Refunding Subordinate Lien Bonds, Series 2002E,
5.500%, 11/15/20 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.7%
3,750 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 4,247,175
Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29
(Pre-refunded to 10/01/14) - FSA Insured
5,000 New York State Dormitory Authority, Consolidated Third General 1/08 at 102.00 AAA 5,779,750
Resolution Revenue Bonds, City University System,
Series 1997-1, 5.375%, 7/01/24 (Pre-refunded to 1/01/08) -
FSA Insured
4,205 New York State Urban Development Corporation, Correctional 1/11 at 100.00 AAA 4,764,307
Facilities Service Contract Revenue Bonds, Series C,
5.125%, 1/01/21 (Pre-refunded to 1/01/11) - FSA Insured
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/11 at 100.00 AAA 3,417,750
Purpose Revenue Bonds, Series 1996B, 5.200%, 1/01/22
(Pre-refunded to 1/01/11)
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AA-*** 3,323,460
Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28
(Pre-refunded to 1/01/22)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 18.8%
5,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 5,187,250
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26 -
AMBAC Insured
1,500 Long Island Power Authority, New York, Electric System 5/11 at 100.00 A- 1,528,920
General Revenue Bonds, Series 2000L, 5.375%, 5/01/33
1,500 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 1,636,546
General Revenue Bonds, Series 2003C, 5.000%, 9/01/15 -
CIFG Insured
New York City Industrial Development Agency, New York,
Industrial Revenue Bonds, Brooklyn Navy Yard Cogeneration
Partners, L.P. Project, Series 1997:
1,000 6.200%, 10/01/22 (Alternative Minimum Tax) No Opt. Call BBB- 962,260
2,000 5.750%, 10/01/36 (Alternative Minimum Tax) 10/08 at 102.00 BBB- 1,777,500
2,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 2,054,500
Series 2000A, 5.250%, 11/15/40
450 Niagara County, New York, Industrial Development Agency 11/11 at 101.00 Baa1 472,059
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara, Series 2001A,
5.450%, 11/15/26 (Alternative Minimum Tax)
(Mandatory put 11/15/12)
29
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,000 Niagara County, New York, Industrial Development Agency, 11/11 at 101.00 Baa1 $ 2,094,600
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara L.P. Facility,
Series 2001D, 5.550%, 11/15/24 (Mandatory put 11/15/15)
Suffolk County Industrial Development Agency, New York,
Industrial Development Revenue Bonds, Nissequogue Cogeneration
Partners Facility, Series 1998:
1,250 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,192,700
2,000 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,850,020
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.6%
6,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA 6,401,460
Water and Sewer System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33
1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA 1,114,770
Water and Sewer System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
1,000 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 1,104,790
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/17
- ------------------------------------------------------------------------------------------------------------------------------------
$ 135,680 Total Long-Term Investments (cost $135,884,692) - 142.9% 142,450,457
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.2% 4,250,748
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.1)% (47,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $99,701,205
====================================================================================================================
(1) All percentages shown in the Portfolio of
Investments are based on net assets applicable to
Common shares.
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Such
securities are normally considered to be equivalent
to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
30
Statement of
ASSETS AND LIABILITIES September 30, 2003
NEW YORK NEW YORK
NEW YORK NEW YORK DIVIDEND DIVIDEND
VALUE PERFORMANCE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $139,504,644,
$344,811,753, $194,627,479
and $135,884,692, respectively) $148,094,408 $368,300,613 $208,425,814 $142,450,457
Cash 262,269 137,129 830,238 1,588,760
Receivables:
Interest 2,179,567 5,603,151 3,076,511 2,253,016
Investments sold -- 1,300,000 695,000 490,000
Other assets 7,175 32,686 12,813 8,853
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 150,543,419 375,373,579 213,040,376 146,791,086
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased -- 2,998,705 -- --
Accrued expenses:
Management fees 69,629 191,932 59,344 50,053
Other 56,113 106,402 91,371 36,734
Preferred share dividends payable -- -- 3,817 3,094
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 125,742 3,297,039 154,532 89,881
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value -- 124,300,000 69,000,000 47,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $150,417,677 $247,776,540 $143,885,844 $ 99,701,205
====================================================================================================================================
Common shares outstanding 15,120,364 14,957,607 9,186,520 6,457,000
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 9.95 $ 16.57 $ 15.66 $ 15.44
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 151,204 $ 149,576 $ 91,865 $ 64,570
Paid-in surplus 144,257,104 217,797,182 130,388,891 91,652,579
Undistributed (Over-distribution of) net investment income (371,094) 2,945,242 1,769,237 1,106,163
Accumulated net realized gain (loss) from investments (2,209,301) 3,395,680 (2,162,484) 312,128
Net unrealized appreciation of investments 8,589,764 23,488,860 13,798,335 6,565,765
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $150,417,677 $247,776,540 $143,885,844 $ 99,701,205
====================================================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 Unlimited Unlimited
Preferred N/A 1,000,000 Unlimited Unlimited
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
31
Statement of
OPERATIONS Year Ended September 30, 2003
NEW YORK NEW YORK
NEW YORK NEW YORK DIVIDEND DIVIDEND
VALUE PERFORMANCE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 7,898,026 $19,460,798 $10,903,636 $ 7,449,801
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 850,843 2,365,824 1,359,500 940,530
Preferred shares - auction fees N/A 311,271 172,790 114,297
Preferred shares - dividend disbursing agent fees N/A 40,000 10,000 10,000
Shareholders' servicing agent fees and expenses 62,570 57,949 6,637 2,481
Custodian's fees and expenses 46,181 97,962 58,722 36,833
Directors'/Trustees' fees and expenses 2,212 5,243 3,209 1,839
Professional fees 277,495 18,868 14,036 12,378
Shareholders' reports - printing and mailing expenses 26,109 33,993 16,801 20,306
Stock exchange listing fees 15,864 15,864 11,332 680
Investor relations expense 30,353 31,497 17,879 10,527
Other expenses 8,836 29,420 16,192 13,929
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 1,320,463 3,007,891 1,687,098 1,163,800
Custodian fee credit (5,407) (16,486) (9,364) (4,587)
Expense reimbursement -- -- (632,412) (426,449)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,315,056 2,991,405 1,045,322 732,764
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,582,970 16,469,393 9,858,314 6,717,037
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (1,469,045) 4,720,522 91,826 332,133
Change in net unrealized appreciation
(depreciation) of investments (1,291,042) (9,861,815) (2,353,756) (1,502,389)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,760,087) (5,141,293) (2,261,930) (1,170,256)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A (848,395) (666,154) (423,000)
From accumulated net realized gains from investments N/A (366,125) -- (47,699)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Preferred shareholders N/A (1,214,520) (666,154) (470,699)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $ 3,822,883 $10,113,580 $ 6,930,230 $ 5,076,082
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
32
Statement of
CHANGES IN NET ASSETS
NEW YORK VALUE (NNY) NEW YORK PERFORMANCE PLUS (NNP)
---------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,582,970 $ 7,070,992 $ 16,469,393 $ 16,974,339
Net realized gain (loss) from investments (1,469,045) 727,823 4,720,522 3,072,903
Change in net unrealized appreciation
(depreciation) of investments (1,291,042) 4,003,348 (9,861,815) 12,819,022
Distributions to Preferred Shareholders:
From net investment income N/A N/A (848,395) (1,680,916)
From accumulated net realized gains from investments N/A N/A (366,125) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 3,822,883 11,802,163 10,113,580 31,185,348
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,985,610) (7,359,327) (14,769,213) (13,893,897)
From accumulated net realized gains from investments -- -- (3,458,002) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (6,985,610) (7,359,327) (18,227,215) (13,893,897)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- -- --
Preferred shares offering costs N/A N/A -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common Shares
from capital share transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,162,727) 4,442,836 (8,113,635) 17,291,451
Net assets applicable to Common
shares at the beginning of year 153,580,404 149,137,568 255,890,175 238,598,724
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $150,417,677 $153,580,404 $247,776,540 $255,890,175
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ (371,094) $ (91,138) $ 2,945,242 $ 2,241,208
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
33
Statement of
CHANGES IN NET ASSETS (continued)
NEW YORK NEW YORK
DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK)
----------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/03 9/30/02 9/30/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,858,314 $ 9,864,731 $ 6,717,037 $ 6,728,300
Net realized gain (loss) from investments 91,826 1,609,916 332,133 463,421
Change in net unrealized appreciation
(depreciation) of investments (2,353,756) 6,491,120 (1,502,389) 5,889,462
Distributions to Preferred Shareholders:
From net investment income (666,154) (987,619) (423,000) (684,180)
From accumulated net realized gains from investments -- -- (47,699) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 6,930,230 16,978,148 5,076,082 12,397,003
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,692,896) (7,860,612) (5,883,129) (5,475,548)
From accumulated net realized gains from investments -- -- (413,137) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (8,692,896) (7,860,612) (6,296,266) (5,475,548)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 49,603 39,957 -- --
Preferred shares offering costs -- -- 35,208 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common Shares
from capital share transactions 49,603 39,957 35,208 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,713,063) 9,157,493 (1,184,976) 6,921,455
Net assets applicable to Common
shares at the beginning of year 145,598,907 136,441,414 100,886,181 93,964,726
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $143,885,844 $145,598,907 $ 99,701,205 $100,886,181
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 1,769,237 $ 1,202,731 $ 1,106,163 $ 703,010
====================================================================================================================================
See accompanying notes to financial statements.
34
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The New York Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New York Municipal Value Fund,
Inc. (NNY), Nuveen New York Performance Plus Municipal Fund, Inc. (NNP), Nuveen
New York Dividend Advantage Municipal Fund (NAN) and Nuveen New York Dividend
Advantage Municipal Fund 2 (NXK). All of the Funds' Common shares trade on the
New York Stock Exchange, with the exception of New York Dividend Advantage 2's
(NXK) Common shares which trade on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end
management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
New York state income taxes by investing primarily in a diversified portfolio of
municipal obligations issued by state and local government authorities within
the state of New York.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors/Trustees of the Funds, or its designee, may establish a
fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At September 30, 2003,
New York Performance Plus (NNP) had an outstanding when-issued purchase
commitment of $2,998,705. There were no such outstanding purchase commitments in
any of the other funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and New
York state income taxes, to retain such tax-exempt status when distributed to
the shareholders of the Funds. All monthly tax-exempt income dividends paid
during the fiscal year ended September 30, 2003, have been designated Exempt
Interest Dividends.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
35
Notes to
FINANCIAL STATEMENTS (continued)
Preferred Shares
New York Value (NNY) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding $25,000 stated value Preferred shares. Each
Fund's Preferred shares are issued in one or more Series. The dividend rate on
each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
NEW YORK NEW YORK NEW YORK
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 2
(NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Number of shares:
Series M 1,600 -- --
Series T 800 -- --
Series W 2,000 -- 1,880
Series TH -- -- --
Series F 572 2,760 --
- --------------------------------------------------------------------------------
Total 4,972 2,760 1,880
================================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended September 30, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
NEW YORK
NEW YORK VALUE (NNY) PERFORMANCE PLUS (NNP)
------------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/03 9/30/02 9/30/03 9/30/02
- -----------------------------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of distributions -- -- -- --
===========================================================================================================
NEW YORK NEW YORK
DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK)
------------------------ --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/03 9/30/02 9/30/03 9/30/02
- -------------------------------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of distributions 3,056 3,034 -- --
=============================================================================================================
36
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended September 30, 2003, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Purchases $15,227,312 $52,092,321 $16,172,679 $12,199,322
Sales and maturities 18,158,643 60,109,426 19,921,714 17,093,161
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At September 30, 2003, the cost of investments were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Cost of investments $139,308,724 $344,566,943 $194,540,902 $135,850,313
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2003, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Gross unrealized:
Appreciation $10,270,907 $26,127,372 $14,628,212 $ 7,459,166
Depreciation (1,485,223) (2,393,702) (743,300) (859,022)
- --------------------------------------------------------------------------------
Net unrealized appreciation
of investments $ 8,785,684 $23,733,670 $13,884,912 $ 6,600,144
================================================================================
The tax components of undistributed net investment income and net realized gains
at September 30, 2003, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Undistributed net
tax-exempt income $-- $3,953,186 $2,441,122 $1,586,515
Undistributed net
ordinary income * -- 11,164 3,242 5,285
Undistributed net
long-term capital gains -- 3,395,680 -- 308,536
================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
37
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscal years ended September
30, 2003 and September 30, 2002, was designated for purposes of the dividends
paid deduction as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2003 (NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Distributions from net
tax-exempt income $7,004,717 $15,549,877 $9,286,554 $6,256,867
Distributions from net
ordinary income * 3,573 31,448 -- 55,261
Distributions from net
long-term capital gains -- 3,824,127 -- 410,071
================================================================================
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2002 (NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Distributions from net
tax-exempt income $7,371,424 $15,484,246 $8,813,594 $6,152,442
Distributions from net
ordinary income * 40,825 27,024 -- --
Distributions from net
long-term capital gains -- -- -- --
================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At September 30, 2003, 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:
NEW YORK
NEW YORK DIVIDEND
VALUE ADVANTAGE
(NNY) (NAN)
- --------------------------------------------------------------------------------
Expiration year:
2008 $379,371 $ 453,530
2009 120,870 1,678,473
- --------------------------------------------------------------------------------
Total $500,241 $2,132,003
================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2002 through September 30, 2003 ("post-October
losses") in accordance with Federal income tax regulations. The following
post-October losses are treated as having arisen in the following fiscal year.
NEW YORK
NEW YORK DIVIDEND
VALUE ADVANTAGE
(NNY) (NAN)
- --------------------------------------------------------------------------------
$1,709,060 $30,481
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under New York Value's (NNY) investment management agreement with Nuveen
Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments,
Inc. (formerly, The John Nuveen Company), the Fund pays an annual management
fee, payable monthly, of .35% of the average daily net assets of the Fund, as
well as 4.125% of the gross interest income of the Fund.
38
Under New York Performance Plus's (NNP) investment management agreement with the
Adviser, the Fund pays an annual management fee, payable monthly, at the rates
set forth below, which are based upon the average daily net assets (including
net assets attributable to Preferred shares) of the Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under New York Dividend Advantage's (NAN) and New York Dividend Advantage 2's
(NXK) investment management agreements with the Adviser, each Fund pays an
annual management fee, payable monthly, at the rates set forth below, which are
based upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
For the first ten years of New York Dividend Advantage's (NAN) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
- --------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage (NAN) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of New York Dividend Advantage 2's (NXK) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage 2 (NXK) for
any portion of its fees and expenses beyond March 31, 2011.
39
Notes to
FINANCIAL STATEMENTS (continued)
6. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on November 3, 2003, to shareholders of record
on October 15, 2003, as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
- --------------------------------------------------------------------------------
Dividend per share $.0375 $.0845 $.0825 $.0795
================================================================================
40
Financial
HIGHLIGHTS
41
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- -----------------------------
Distributions Distributions
from Net from From Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW YORK VALUE (NNY)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 $10.16 $ .44 $ (.19) $N/A $N/A $ .25 $ (.46) $-- $ (.46)
2002 9.86 .47 .32 N/A N/A .79 (.49) -- (.49)
2001 9.51 .50 .36 N/A N/A .86 (.51) -- (.51)
2000 9.53 .52 (.03) N/A N/A .49 (.51) -- (.51)
1999 10.39 .51 (.76) N/A N/A (.25) (.51) (.10) (.61)
NEW YORK PERFORMANCE
PLUS (NNP)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 17.11 1.10 (.34) (.06) (.02) .68 (.99) (.23) (1.22)
2002 15.95 1.13 1.07 (.11) -- 2.09 (.93) -- (.93)
2001 14.67 1.16 1.26 (.26) -- 2.16 (.88) -- (.88)
2000 14.65 1.23 .12 (.30) (.02) 1.03 (.95) (.06) (1.01)
1999 16.24 1.24 (1.56) (.22) -- (.54) (1.03) -- (1.03)
NEW YORK DIVIDEND
ADVANTAGE (NAN)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 15.85 1.07 (.24) (.07) -- .76 (.95) -- (.95)
2002 14.86 1.07 .89 (.11) -- 1.85 (.86) -- (.86)
2001 13.42 1.08 1.40 (.24) -- 2.24 (.80) -- (.80)
2000 13.27 1.08 .18 (.29) -- .97 (.82) -- (.82)
1999(a) 14.33 .27 (.95) (.05) -- (.73) (.21) -- (.21)
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 15.62 1.04 (.18) (.07) (.01) .78 (.91) (.06) (.97)
2002 14.55 1.04 .99 (.11) -- 1.92 (.85) -- (.85)
2001(b) 14.33 .44 .33 (.07) -- .70 (.35) -- (.35)
====================================================================================================================================
Total Returns
-----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==================================================================================
NEW YORK VALUE (NNY)
- ----------------------------------------------------------------------------------
Year Ended 9/30:
2003 $-- $ 9.95 $ 9.1100 1.65% 2.59%
2002 -- 10.16 9.4200 4.55 8.26
2001 -- 9.86 9.4900 14.66 9.23
2000 -- 9.51 8.7500 6.17 5.29
1999 -- 9.53 8.7500 (8.04) (2.58)
NEW YORK PERFORMANCE
PLUS (NNP)
- ----------------------------------------------------------------------------------
Year Ended 9/30:
2003 -- 16.57 15.6600 1.88 4.25
2002 -- 17.11 16.6000 14.44 13.65
2001 -- 15.95 15.3900 15.56 15.01
2000 -- 14.67 14.1250 (.71) 7.45
1999 (.02) 14.65 15.3125 (8.25) (3.65)
NEW YORK DIVIDEND
ADVANTAGE (NAN)
- ----------------------------------------------------------------------------------
Year Ended 9/30:
2003 -- 15.66 15.0900 3.86 5.04
2002 -- 15.85 15.4700 13.57 12.95
2001 -- 14.86 14.4400 24.06 16.98
2000 -- 13.42 12.3125 (8.62) 7.82
1999(a) (.12) 13.27 14.3750 (2.76) (5.93)
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
- ----------------------------------------------------------------------------------
Year Ended 9/30:
2003 .01 15.44 14.5500 5.35 5.39
2002 -- 15.62 14.7800 8.48 13.67
2001(b) (.13) 14.55 14.4600 (1.29) 4.02
==================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===================================================================================================================
NEW YORK VALUE (NNY)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 $150,418 .88% 4.37% .87% 4.38% 10%
2002 153,580 .79 4.76 .78 4.76 11
2001 149,138 .76 5.13 .74 5.15 23
2000 143,843 .74 5.52 .73 5.53 33
1999 144,079 .74 5.10 .74 5.10 19
NEW YORK PERFORMANCE
PLUS (NNP)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 247,777 1.22 6.67 1.21 6.67 14
2002 255,890 1.24 7.08 1.23 7.09 19
2001 238,599 1.29 7.47 1.28 7.49 19
2000 219,427 1.29 8.61 1.27 8.63 44
1999 218,751 1.20 7.89 1.19 7.90 22
NEW YORK DIVIDEND
ADVANTAGE (NAN)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 143,886 1.19 6.50 .74 6.95 8
2002 145,599 1.21 6.76 .75 7.22 11
2001 136,441 1.25 7.01 .78 7.49 18
2000 123,171 1.31 7.89 .79 8.42 19
1999(a) 121,801 1.10* 5.36* .65* 5.81* 25
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2003 99,701 1.19 6.41 .75 6.85 8
2002 100,886 1.21 6.69 .74 7.16 16
2001(b) 93,965 1.12* 5.63* .69* 6.06* 11
===================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
================================================================
NEW YORK VALUE (NNY)
- ----------------------------------------------------------------
Year Ended 9/30:
2003 $ N/A $ N/A $ N/A
2002 N/A N/A N/A
2001 N/A N/A N/A
2000 N/A N/A N/A
1999 N/A N/A N/A
NEW YORK PERFORMANCE
PLUS (NNP)
- ----------------------------------------------------------------
Year Ended 9/30:
2003 124,300 25,000 74,834
2002 124,300 25,000 76,466
2001 124,300 25,000 72,988
2000 124,300 25,000 69,132
1999 124,300 25,000 68,997
NEW YORK DIVIDEND
ADVANTAGE (NAN)
- ----------------------------------------------------------------
Year Ended 9/30:
2003 69,000 25,000 77,133
2002 69,000 25,000 77,753
2001 69,000 25,000 74,435
2000 69,000 25,000 69,627
1999(a) 69,000 25,000 69,131
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
- ----------------------------------------------------------------
Year Ended 9/30:
2003 47,000 25,000 78,033
2002 47,000 25,000 78,663
2001(b) 47,000 25,000 74,981
================================================================
N/A Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period May 26, 1999 (commencement of operations) through September
30,1999.
(b) For the period March 28, 2001 (commencement of operations) through
September 30, 2001.
See accompanying notes to financial statements.
42-43 SPREAD
Directors/Trustees
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Directors/ Trustees of the Funds. The number of directors/trustees of the Funds
is currently set at eight. None of the directors/trustees who are not
"interested" persons of the Funds has ever been a director/trustee or employee
of, or consultant to, Nuveen or its affiliates. The names and business addresses
of the directors/trustees 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.
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX
YEAR FIRST PRINCIPAL OCCUPATION(S) OVERSEEN
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS BY DIRECTOR/
AND ADDRESS WITH THE FUNDS APPOINTED(2) DURING PAST 5 YEARS TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR/TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 141
3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC;
333 W. Wacker Drive Director/Trustee Director (since 1992) and Chairman (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since 1997)
of Nuveen Asset Management, Inc.; Director (since 1996)
of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management,
Inc.; Chairman of Nuveen Investments Advisers Inc.
(since 2002).
DIRECTORS/TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
William E. Bennett Director/Trustee 2001 Private Investor; previously, President and Chief 141
10/16/46 Executive Officer, Draper & Kramer, Inc., a private
333 W. Wacker Drive company that handles mortgage banking, real estate
Chicago, IL 60606 development, pension advisory and real estate management
Prior thereto, Executive Vice President and Chief Credit
Officer of First Chicago Corporation and its principal
subsidiary, The First National Bank of Chicago.
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Director/Trustee 1997 Private Investor and Management Consultant. 140
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Director/Trustee 1993 Retired (since 1989) as Senior Vice President of The 140
7/29/34 Northern Trust Company; Director of the United Way of
333 W. Wacker Drive Highland Park-Highwood (since 2002).
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Director/Trustee 1994 Retired, formerly, Executive Director (since 1998) 140
1/26/33 of Manitoga/The Russel Wright Design Center; prior
333 W. Wacker Drive thereto, President and Chief Executive Officer of
Chicago, IL 60606 Blanton-Peale Institute (since 1990); prior thereto,
Vice President, Metropolitan Life Insurance Co.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers Director/Trustee 1991 Adjunct Professor of Business and Economics, University 140
4/3/33 of Dubuque, Iowa; formerly (1991-2000) Adjunct
333 W. Wacker Drive Professor, Lake Forest Graduate School of Management,
Chicago, IL 60606 Lake Forest, Illinois; prior thereto, Executive
Director, Towers Perrin Australia, a management
consulting firm; Chartered Financial Analyst;
Certified Management Consultant; Director, Executive
Service Corps of Chicago, a not-for-profit organization.
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Director/Trustee 1997 Senior Partner and Chief Operating Officer, 140
9/24/44 Miller-Valentine Group, Vice President,
333 W. Wacker Drive Miller-Valentine Realty, a construction company; Chair,
Chicago, IL 60606 MiamiValley Hospital; Chair, Dayton Development
Coalition; formerly, Member, Community Advisory Board,
National City Bank, Dayton, Ohio and Business Advisory
Council, Cleveland Federal Reserve Bank.
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Director/Trustee 1997 Executive Director, Gaylord and Dorothy Donnelley 140
12/29/47 Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive Director, Great Lakes Protection Fund (from 1990
Chicago, IL 60606 to 1994).
44
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN
AND ADDRESS WITH THE FUNDS APPOINTED (3) DURING PAST 5 YEARS BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 141
9/9/56 Administrative and Associate General Counsel, formerly, Vice President
333 W. Wacker Drive Officer and Assistant General Counsel of Nuveen Investments,
Chicago, IL 60606 LLC; Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President
(since 2000), of Nuveen Asset Management, Inc.;
Assistant Secretary of Nuveen Investments, Inc.
(since 1994); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002); Vice President
and Assistant Secretary of Nuveen Investments Advisers
Inc. (since 2002); Managing Director, Associate General
Counsel and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since May 2003); Chartered
Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 141
2/3/66 and Assistant Vice President (since 2000), previously, Associate of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 127
11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial
Chicago, IL 60606 Inc.; Chartered Financial Analyst and Certified
Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 141
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997);
333 W. Wacker Drive Vice President and Treasurer of Nuveen Investments, Inc.
Chicago, IL 60606 (since 1999); Vice President and Treasurer of Nuveen
Advisory Corp. and Nuveen Institutional Advisory
Corp. (since 1999); Vice President and Treasurer
of Nuveen Asset Management, Inc. (since 2002) and
of Nuveen Investments Advisers Inc. (since 2002);
Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 141
9/8/54 previously, Vice President of Van Kampen Investment
333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior
thereto, Assistant Vice President of Van Kampen
Investment Advisory Corp. (since 1994).
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General 141
9/24/64 and Secretary Counsel (since 1998); formerly, Assistant Vice
333 W. Wacker Drive President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (since 2002) and Assistant Secretary
(since 1998), formerly Assistant Vice President
of Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.
45
Directors/Trustees
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN
AND ADDRESS WITH THE FUNDS APPOINTED (3) DURING PAST 5 YEARS BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 141
10/24/45 President (since 1998) of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 141
3/2/64 LLC; Managing Director (since 2001), formerly Vice
333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc. (since 2001);
Vice President of Nuveen Investment Advisers Inc.
(since 2002); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller 141
5/31/54 and Controller (since 1998) of Nuveen Investments, LLC and Vice
333 W. Wacker Drive President and Funds Controller (since 1998) of Nuveen
Chicago, IL 60606 Investments, Inc.; Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 127
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 127
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, LLC, 141
3/22/63 previously Assistant Vice President (since 1999); prior
333 W. Wacker Drive thereto, Associate of Nuveen Investments, LLC; Certified
Chicago, IL 60606 Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 141
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant 141
7/27/51 and Assistant General Counsel of Nuveen Investments, LLC; Vice
333 W. Wacker Drive Secretary President and Assistant Secretary of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.;
Assistant Secretary of Nuveen Investments, Inc.
and (since 1997) Nuveen Asset Management, Inc.;
Vice President (since 2000), Assistant Secretary
and Assistant General Counsel (since 1998) of
Rittenhouse Asset Management, Inc.; Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002).
46
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN
AND ADDRESS WITH THE FUNDS APPOINTED (3) DURING PAST 5 YEARS BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
John V. Miller Vice President 2003 Vice President (since 2003), previously, Assistant 127
4/10/67 Vice President (since 1999), prior thereto, credit
333 W. Wacker Drive analyst (since 1996) of Nuveen Advisory Corp.;
Chicago, IL 60606 Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 141
7/7/65 LLC; Managing Director (since 1997), formerly Vice
333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing
Director of Nuveen Asset Management, Inc. (since
1999). Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 127
9/4/60 Vice President (since 1998), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 127
7/31/51 Institutional Advisory Corp.; Chartered Financial
333 W. Wacker Drive Analyst.
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2) Directors/Trustees serve a one-year term until his/her successor is elected.
The year first elected or appointed represents the year in which the
Directors/Trustees was first elected or appointed to any fund in the Nuveen
Complex.
(3) Officers serve a one-year term through July 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.
47
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
48
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows each Fund, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Duration: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
- ---------
Each Fund intends to repurchase shares of its own common or preferred stock,
where applicable, in the future at such times and in such amounts as is deemed
advisable. No shares were repurchased during the year ended September 30, 2003.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
49
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $90 billion in assets, Nuveen Investments offers access to
a number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; and Symphony, a
leading institutional manager of market-neutral alternative investment
portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
EAN-A-0903D
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. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors has determined that the registrant has
at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its audit committee. The registrant's audit committee
financial expert is William E. Bennett, who is "independent" for purposes of
Item 3 of Form N-CSR.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolio; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for clients.
Mr. Bennett has significant experience reviewing, analyzing and evaluating
financial statements of domestic and international companies in a variety of
industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
Nuveen Advisory Corp. (the "Adviser") would either engage an independent third
party to determine how the proxy should be voted or vote the proxy with the
consent, or based on the instructions, of the Fund's Board of Directors or
Trustees or its representative. In the case of a conflict of interest, the proxy
would be submitted to the applicable fund's Board to determine how the proxy
should be voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New York Dividend Advantage Municipal Fund 2
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 9, 2003
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: December 9, 2003
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: December 9, 2003
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.