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 811-21731
-----------------------
Nuveen Equity Premium Advantage Fund
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
---------------------
Date of fiscal year end: December 31
-------------------
Date of reporting period: June 30, 2007
---------------------
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 SHAREHOLDERS
Semi-Annual Report
JUNE 30, 2007
Nuveen Investments
CLOSED-END FUNDS
NUVEEN EQUITY
PREMIUM INCOME
FUND
JPZ
NUVEEN EQUITY
PREMIUM OPPORTUNITY
FUND
JSN
NUVEEN EQUITY
PREMIUM ADVANTAGE
FUND
JLA
NUVEEN EQUITY
PREMIUM AND GROWTH
FUND
JPG
Attractive Monthly Distributions and a Measure of Downside
Protection from an Integrated Index Option and Equity Strategy
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<Table>
www.investordelivery.com OR www.nuveen.com/accountaccess
If you received your Nuveen Fund If you received your Nuveen Fund
dividends and statements from your dividends and statements directly from
financial advisor or brokerage Nuveen.
account.
</Table>
NUVEEN INVESTMENTS LOGO
Chairman's
LETTER TO SHAREHOLDERS
<Table>
(TIMOTHY
SCHWERTFEGER
PHOTO) Timothy R. Schwertfeger Chairman of the Board
</Table>
Dear Shareholder:
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with attractive income. For more
details about the management strategy and performance of your Fund, please read
the Portfolio Managers' Comments, the Dividend and Share Price Information, and
the Performance Overview sections of this report.
I also wanted to take this opportunity to report some important news about
Nuveen Investments. We have accepted a buyout offer from a private equity
investment firm. While this may affect the corporate structure of Nuveen
Investments, it will have no impact on the investment objectives of the Funds,
portfolio management strategies or their dividend policies. We will provide you
with additional information about this transaction as more details become
available.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your
long-term financial goals. A well-diversified portfolio may actually help to
reduce your overall investment risk, and we believe that investments like your
Nuveen Investments Fund can be important building blocks in a portfolio crafted
to perform well through a variety of market conditions.
We are grateful that you have chosen us as a partner as you pursue your
financial goals and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
(TIMOTHY SCHWERTFEGER SIG)
Timothy R. Schwertfeger
Chairman of the Board
August 15, 2007
Portfolio Managers' COMMENTS
NUVEEN INVESTMENTS CLOSED-END FUNDS JPZ, JSN, JLA, JPG
These Funds feature portfolio management by Gateway Investment Advisers, L.P.
(Gateway). J Patrick Rogers and Kenneth H. Toft serve as co-portfolio managers
for JSN and JLA; Patrick and Michael T. Buckius are co-portfolio managers for
JPZ and JPG. Patrick joined Gateway in 1989. He has been President and a
Director of Gateway since 1995 and is the firm's Chief Executive Officer. Ken
joined Gateway in 1992 and has been a Vice President and Portfolio Manager since
1997. Mike joined Gateway in 1999 as a Vice President and Portfolio Manager.
Here the portfolio managers talk about their management strategy and the
performance of the Funds for the six-months ended June 30, 2007.
WHAT WAS YOUR OVERALL MANAGEMENT STRATEGY FOR THE SIX-MONTHS ENDED JUNE 30,
2007?
The core investment strategy employed in JPZ, JSN, JLA and JPG remained the same
and consisted of investing in a broadly diversified portfolio of equity
securities that seeks to substantially track the price movement of a stock
market index or a custom blend of stock market indices. The purpose of the
equity portfolio is to support the index option strategy.
For JPZ and JPG, the equity portfolio seeks to track the price movements of the
S&P 500 Index. Over the course of the first half of 2007, JPZ actively sold
listed S&P 500 index call options against the stock portfolio. These call
options generated a meaningful amount of regular cash flow, which served to both
reduce the risk of owning the stock portfolio and also generated much of the
return of the strategy. The third component of the strategy is the purchase of
listed S&P 500 index put options to help protect the value of the stock
portfolio in the event of a significant market decline over a short period of
time. JPG differs from JPZ in that the index option hedging activity is applied
to 80% of the value of the equity portfolio, leaving 20% unhedged.
For JSN, the equity portfolio is invested to replicate the price performance of
a custom benchmark consisting of 75% S&P 500 Index and 25% NASDAQ-100 Index. JSN
employs an option strategy similar to JPZ with roughly 75% of the call and put
options being S&P 500 index options and the remaining 25% being NASDAQ-100
options.
For JLA, the overall equity and option strategy is similar to JSN. The
differentiating feature of JLA is its underlying equity portfolio, which tracks
a custom benchmark of 50% S&P 500 and 50% NASDAQ-100, with a matching investment
portfolio of S&P 500 and NASDAQ-100 index call and put options.
Discussions of specific investments are for illustration only and are not
intended as recommendations of individual investments. The views expressed
herein represent those of the portfolio managers as of the date of this report
and are subject to change at any time, based on market conditions and other
factors. The Funds disclaim any obligation to advise shareholders of such
changes.
4
HOW DID THE FUNDS PERFORM OVER THE SIX-MONTH PERIOD?
The performance of JPZ, JSN, JLA and JPG, as well as the performance of
comparative indices or benchmarks, is presented in the accompanying table.
Cumulative Total Returns on Net Asset Value
For the six-month period ended 6-30-07
<Table>
JPZ 5.04%
S&P 500 6.96%
JSN 6.37%
Comparative benchmark(1) 7.74%
JLA 6.09%
Comparative benchmark(2) 8.52%
JPG 6.16%
S&P 500 6.96%
</Table>
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that a shareholder may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, please see the individual Performance Overview page
for your Fund in this report.
- --------------------------------------------------------------------------------
For the six-months ended June 30, 2007, all four Funds underperformed their
respective benchmarks.
The most significant factor that impacted the performance of the Funds in the
first half of 2007 was the increase in equity market volatility. Since the
turbulence of global markets in late February and early March in the aftermath
of a plunge in the Shanghai stock index, market participants have seemingly
reassessed the price of risk across equity and credit markets. The struggles
facing the mortgage-backed securities market in the wake of the difficulties in
the underlying mortgage markets have further reinforced this new view of risk.
This reassessment of risk is evident in the broad equity markets. The CBOE
Volatility Index (the "VIX"), a popular gauge of investor sentiment, appears to
have shifted to a higher range despite a backdrop of a generally benign equity
market. For perspective, compared to its 2006 low of 9.90 on November 21, 2006,
the VIX index ended the second quarter of 2007 at 16.23, an increase of over
60%.
Looking forward, there seems to be an ongoing reassessment by global investors
as to whether financial risk is properly priced in the market or whether this
risk has been priced too cheaply over the past several years. One of the lessons
of the market performance of the first half of the year appears to be that
global financial markets are more interconnected than ever and that isolated
incidents in obscure markets can have wide-ranging effects around the world.
One result of this reassessment in the U.S. has been a higher level of broad
equity market volatility as seen in the VIX. This elevated volatility translates
to higher prices (premium) for option contracts and, as we are consistent net
sellers of option premium, the result is more generous cash flows from our
option writing activity. As seen in the first half of 2007, this elevated cash
flow can cushion the portfolio in the event of market turbulence and help
generate an attractive return.
- --------------------------------------------------------------------------------
1 JSN comparative benchmark performance is a blended return consisting of: 1)
75% of the return of the S&P 500 Index, and 2) 25% of the NASDAQ-100 Index,
which includes 100 of the largest domestic and international non-financial
companies listed on The NASDAQ Stock Market based on market capitalization. The
NASDAQ-100 Index reflects companies across major industry groups including
computer hardware and software, telecommunications, retail/wholesale trade and
biotechnology.
2 JLA comparative benchmark performance is a blended return consisting of: 1)
50% of the return of the S&P 500 Index, and 2) 50% of the NASDAQ-100 Index.
- --------------------------------------------------------------------------------
5
Distribution and Share Price
INFORMATION
We are providing you with information regarding your Fund's distributions. This
information is as of June 30, 2007, and likely will vary over time based on the
Fund's investment activities and portfolio investment value changes. On March 1,
2007, Nuveen Investments announced that these Funds would be moving from a
monthly to a quarterly distribution schedule. The last monthly distributions
were paid on April 2, 2007, and first quarterly distributions were paid on July
2, 2007.
Each Fund has a managed distribution policy. The goal of a managed distribution
program is to provide shareholders relatively consistent and predictable cash
flow by systematically converting its expected long-term return potential into
regular distributions. As a result, regular distributions throughout the year
will likely include a portion of expected long-term gains (both realized and
unrealized), along with net investment income.
Important points to understand about the managed distribution program are:
- - Each Fund seeks to establish a relatively stable distribution rate that
roughly corresponds to the projected total return from its investment strategy
over an extended period of time. However, you should not draw any conclusions
about the Fund's past or future investment performance from its current
distribution rate.
- - Actual returns will differ from projected long-term returns (and therefore the
Fund's distribution rate), at least over shorter time periods. Over a specific
timeframe, the difference between actual returns and total distributions will
be reflected in an increasing (returns exceed distributions) or a decreasing
(distributions exceed returns) Fund net asset value.
- - Each distribution is expected to be paid from some or all of the following
sources:
- net investment income (regular interest and dividends),
- realized capital gains, and
- unrealized gains, or, in certain cases, a return of principal (non-taxable
distributions)
- - A non-taxable distribution is a payment of a portion of a Fund's capital. When
a Fund's returns exceed distributions, it may represent portfolio gains
generated, but not realized as a taxable capital gain. In periods when a
Fund's return falls short of distributions, it will represent a portion of
your original principal unless the shortfall is offset during other time
periods over the life of your investment (previous or subsequent) when the
Fund's total return exceeds distributions.
- - Because distribution source estimates are updated during the year, based on a
Fund's performance and forecast for its current fiscal year (which is the
calendar year for each Fund), these estimates may differ from both the tax
information reported to you in your
6
Fund's IRS Form 1099 statement provided at year end, as well as the ultimate
economic sources of distributions over the life of your investment.
The following table provides estimated information regarding each Fund's
distributions and total return performance for the six months ended June 30,
2007. The distribution information is presented on a tax basis rather than on a
generally accepted accounting principles (GAAP) basis. This information is
intended to help you better understand whether the Fund's returns for the
specified time period was sufficient to meet each Fund's distributions.
Information regarding such distributions in the future will likely vary based on
each Fund's investment activities and portfolio investment value changes at that
time.
<Table>
<Caption>
- ---------------------------------------------------------------------------------------------------------------
As of 6/30/07 JPZ JSN JLA JPG
- ---------------------------------------------------------------------------------------------------------------
Inception date 10/26/04 1/26/05 5/25/05 11/22/05
Six months ended 6/30/07:
Per share distribution:
From net investment income $0.23 $0.18 $0.12 $0.29
From realized capital gains -- -- -- --
From return of capital 0.62 0.71 0.79 0.52
-------- ------- ------- --------
Total per share distribution $0.85 $0.89 $0.91 $0.81
======== ======= ======= ========
Distribution rate on NAV 4.61% 4.78% 4.91% 4.05%
Annualized one-year total return on NAV 11.39% 12.61% 11.83% 14.17%
Annualized since inception total return on NAV 8.19% 8.42% 8.10% 11.11%
- ---------------------------------------------------------------------------------------------------------------
</Table>
At the end of the reporting period, the Funds' share prices were trading
relative to their NAVs as shown in the accompanying table:
<Table>
<Caption>
- -------------------------------------------------------------------------------------------------------
6/30/07 Average 6-Month Period
Discount/Premium Discount/Premium
- -------------------------------------------------------------------------------------------------------
JPZ -2.09% 0.40%
JSN -2.15% 0.46%
JLA -0.16% 2.57%
JPG -4.40% -1.47%
- -------------------------------------------------------------------------------------------------------
</Table>
7
<Table>
JPZ Nuveen Equity
PERFORMANCE Premium Income
OVERVIEW Fund
as of 6-30-07
</Table>
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)
(PIE CHART)
<Table>
Common Stocks 94.9
Put Options 0.4
Short-Term Investments 4.7
</Table>
2006 - 2007 DISTRIBUTIONS PER SHARE(2)
(BAR CHART)
<Table>
Jul 0.142
Aug 0.142
Sep 0.142
Oct 0.142
Nov 0.142
Dec 0.142
Jan 0.142
Feb 0.142
Mar 0.142
Jun 0.426
</Table>
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(LINE GRAPH)
<Table>
<Caption>
7/01/06 17.45
- ------- -----
17.46
17.48
17.43
17.47
17.49
17.3
17.25
17.15
17.3
17.17
17.4
17.32
17.21
17.38
17.63
17.82
17.87
18.15
18.22
18.23
18.39
18.35
18.2
18.1
18.29
18.37
18.4
18.35
18.25
18.42
18.45
18.48
18.6
18.41
18.42
18.53
18.54
18.72
18.64
18.68
18.68
18.77
18.85
18.96
18.77
18.71
18.85
18.89
19
18.87
18.64
18.62
18.53
18.6
18.58
18.57
18.57
18.69
18.78
18.86
18.84
18.79
18.79
18.92
19.03
19.19
19.03
19.16
19.17
19.19
18.94
18.94
18.73
18.87
18.71
18.74
18.74
18.84
18.86
18.85
18.85
18.93
18.86
18.8
18.71
18.77
18.62
18.63
18.68
18.92
18.88
18.81
18.86
18.56
18.45
18.41
18.24
17.99
18.03
17.92
18.03
18.13
18.01
18.1
18.36
18.63
18.76
18.79
18.83
18.87
18.9
19.04
19.22
19.26
19.24
19.03
19.1
19.06
19.09
19.22
19.06
19.02
19.05
19.11
19.11
19.22
19.22
19.3
19.22
19.04
19.21
19.23
19
18.99
19.17
19
19.05
18.9
18.97
19
18.97
19.1
19.02
19.05
19.15
19.23
19.33
19.28
19.29
19.36
19.41
19.29
19.31
19.3
19.42
19.01
18.9
18.95
18.87
18.74
18.71
18.66
18.82
18.76
18.73
18.84
18.74
18.65
18.41
18.44
18.65
18.88
18.79
18.93
18.41
18.2
18.3
18.35
18.34
18.38
18.55
18.58
18.58
18.55
18.57
18.53
18.57
18.59
18.59
18.54
18.716
18.75
18.77
18.83
18.83
18.74
18.8
18.95
18.75
18.72
18.69
18.62
18.61
18.62
18.59
18.67
18.75
18.75
18.72
18.75
18.75
18.75
18.71
18.7
18.63
18.65
18.7
18.7
18.66
18.67
18.73
18.78
18.85
18.7
18.71
18.8
18.7
18.74
18.73
18.78
18.83
18.91
19
18.98
18.84
18.66
18.82
18.96
18.91
18.41
18.37
18.29
18.28
18.25
18.24
18.19
18.2
18.1
18.05
18.1
18.2
18.27
6/30/07 18.27
</Table>
FUND SNAPSHOT
<Table>
- -------------------------------------------------------------------------------------
Share Price $18.27
- -------------------------------------------------------------------------------------
Net Asset Value $18.66
- -------------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.09%
- -------------------------------------------------------------------------------------
Current Distribution Rate(1) 9.33%
- -------------------------------------------------------------------------------------
Net Assets ($000) $721,740
- -------------------------------------------------------------------------------------
</Table>
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/26/04)
<Table>
<Caption>
- -------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- -------------------------------------------------------------------------------------
6-Month (cumulative) -0.48% 5.04%
- -------------------------------------------------------------------------------------
1-Year 15.75% 11.39%
- -------------------------------------------------------------------------------------
Since
Inception 5.57% 8.19%
- -------------------------------------------------------------------------------------
</Table>
INDUSTRIES
(as a % of total investments)
<Table>
- -------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 7.5%
- -------------------------------------------------------------------------------------
Pharmaceuticals 7.5%
- -------------------------------------------------------------------------------------
Commercial Banks 7.0%
- -------------------------------------------------------------------------------------
Diversified Financial Services 4.4%
- -------------------------------------------------------------------------------------
Diversified Telecommunication Services 4.3%
- -------------------------------------------------------------------------------------
Insurance 4.1%
- -------------------------------------------------------------------------------------
Industrial Conglomerates 3.8%
- -------------------------------------------------------------------------------------
Computers & Peripherals 3.3%
- -------------------------------------------------------------------------------------
Software 3.2%
- -------------------------------------------------------------------------------------
Capital Markets 3.0%
- -------------------------------------------------------------------------------------
Aerospace & Defense 2.8%
- -------------------------------------------------------------------------------------
Chemicals 2.6%
- -------------------------------------------------------------------------------------
Semiconductors & Equipment 2.6%
- -------------------------------------------------------------------------------------
Energy Equipment & Services 2.6%
- -------------------------------------------------------------------------------------
Tobacco 2.5%
- -------------------------------------------------------------------------------------
Communications Equipment 2.3%
- -------------------------------------------------------------------------------------
Household Products 2.3%
- -------------------------------------------------------------------------------------
Machinery 2.2%
- -------------------------------------------------------------------------------------
Commercial Services & Supplies 2.1%
- -------------------------------------------------------------------------------------
Put Options 0.4%
- -------------------------------------------------------------------------------------
Short-Term Investments 4.7%
- -------------------------------------------------------------------------------------
Other 24.8%
- -------------------------------------------------------------------------------------
</Table>
1 Current Distribution Rate is based on the Fund's current annualized quarterly
distribution divided by the Fund's current market price. The Fund's quarterly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a return of capital for tax purposes.
2 Effective March 1, 2007, the Fund changed from a monthly distribution to a
quarterly distribution schedule. The Fund's last monthly distribution was
declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly
distribution was declared June 1, 2007, and paid on July 2, 2007.
8
<Table>
JSN Nuveen Equity
PERFORMANCE Premium Opportunity
OVERVIEW Fund
as of 6-30-07
</Table>
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)
(PIE CHART)
<Table>
Common Stocks 96.5
Short-Term Investments 3.1
Put Options 0.4
</Table>
2006-2007 DISTRIBUTIONS PER SHARE(2)
(BAR CHART)
<Table>
Jul 0.148
Aug 0.148
Sep 0.148
Oct 0.148
Nov 0.148
Dec 0.148
Jan 0.148
Feb 0.148
Mar 0.148
Jun 0.444
</Table>
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(LINE GRAPH)
<Table>
<Caption>
7/01/06 18.2
- ------- ----
18.11
18.27
18.16
18.18
18.23
18.02
17.9601
17.92
17.9
17.79
17.88
17.99
17.77
17.8
17.84
17.95
18.01
18.03
18.12
18.1
18.24
18.24
18.28
18.3
18.36
18.44
18.5
18.45
18.44
18.36
18.35
18.48
18.55
18.48
18.49
18.53
18.61
18.65
18.6799
18.68
18.85
18.82
18.68
18.65
18.64
18.69
18.82
18.8
18.86
18.75
18.65
18.68
18.51
18.68
18.66
18.67
18.76
18.69
18.85
18.85
18.79
18.95
18.95
19.06
19.1
19.19
19.13
19.21
19.19
19.16
18.88
18.9
18.65
18.51
18.5
18.45
18.41
18.3
18.32
18.37
18.48
18.56
18.6
18.69
18.65
18.45
18.32
18.332
18.4
18.59
18.6
18.58
18.62
18.33
18.27
18.23
18.03
18.15
18.08
17.97
18.02
18.09
17.97
18.06
18.2
18.4
18.6
18.66
18.76
18.81
18.77
18.74
18.77
18.82
18.59
18.61
18.59
18.67
18.63
18.59
18.59
18.65
18.68
18.74
18.58
18.62
18.62
18.75
18.79
18.75
18.86
18.94
18.7
18.65
18.72
18.71
18.74
18.73
18.63
18.5
18.53
18.56
18.44
18.62
18.7
18.82
18.87
18.9
18.89
18.93
18.9
18.87
18.94
18.91
18.94
18.73
18.64
18.63
18.58
18.51
18.47
18.4
18.63
18.76
18.56
18.76
18.6399
18.52
18.44
18.57
18.67
18.72
18.66
18.67
18.34
18.22
18.2
18.17
18.23
18.28
18.3
18.35
18.42
18.38
18.42
18.37
18.38
18.4
18.4
18.362
18.44
18.49
18.53
18.58
18.6
18.53
18.56
18.63
18.53
18.51
18.51
18.45
18.46
18.42
18.43
18.54
18.57
18.62
18.59
18.64
18.65
18.59
18.66
18.61
18.58
18.6
18.67
18.69
18.63
18.6
18.66
18.68
18.72
18.59
18.64
18.71
18.59
18.67
18.71
18.82
18.87
18.97
19.08
19
18.9
18.71
18.9
18.95
18.89
18.37
18.34
18.27
18.24
18.21
18.21
18.2
18.18
18.11
18.09
18.16
18.19
18.22
6/30/07 18.22
</Table>
FUND SNAPSHOT
<Table>
- ---------------------------------------------------------------------------------------
Share Price $18.22
- ---------------------------------------------------------------------------------------
Net Asset Value $18.62
- ---------------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.15%
- ---------------------------------------------------------------------------------------
Current Distribution Rate(1) 9.75%
- ---------------------------------------------------------------------------------------
Net Assets ($000) $1,238,765
- ---------------------------------------------------------------------------------------
</Table>
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/05)
<Table>
<Caption>
- -------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- -------------------------------------------------------------------------------------
6-Month (cumulative) 2.68% 6.37%
- -------------------------------------------------------------------------------------
1-Year 11.47% 12.61%
- -------------------------------------------------------------------------------------
Since Inception 5.51% 8.42%
- -------------------------------------------------------------------------------------
</Table>
INDUSTRIES
(as a % of total investments)
<Table>
- -------------------------------------------------------------------------------------
Pharmaceuticals 7.1%
- -------------------------------------------------------------------------------------
Software 6.2%
- -------------------------------------------------------------------------------------
Communications Equipment 5.6%
- -------------------------------------------------------------------------------------
Computers & Peripherals 5.5%
- -------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 5.2%
- -------------------------------------------------------------------------------------
Semiconductors & Equipment 4.5%
- -------------------------------------------------------------------------------------
Commercial Banks 4.1%
- -------------------------------------------------------------------------------------
Diversified Financial Services 3.6%
- -------------------------------------------------------------------------------------
Diversified Telecommunication Services 3.5%
- -------------------------------------------------------------------------------------
Capital Markets 3.3%
- -------------------------------------------------------------------------------------
Internet Software & Services 3.0%
- -------------------------------------------------------------------------------------
Industrial Conglomerates 2.9%
- -------------------------------------------------------------------------------------
Aerospace & Defense 2.4%
- -------------------------------------------------------------------------------------
Media 2.4%
- -------------------------------------------------------------------------------------
Specialty Retail 2.3%
- -------------------------------------------------------------------------------------
Energy Equipment & Services 2.2%
- -------------------------------------------------------------------------------------
Commercial Services & Supplies 2.1%
- -------------------------------------------------------------------------------------
Insurance 2.0%
- -------------------------------------------------------------------------------------
Biotechnology 1.9%
- -------------------------------------------------------------------------------------
Tobacco 1.7%
- -------------------------------------------------------------------------------------
Put Options 0.4%
- -------------------------------------------------------------------------------------
Short-Term Investments 3.1%
- -------------------------------------------------------------------------------------
Other 25.0%
- -------------------------------------------------------------------------------------
</Table>
1 Current Distribution Rate is based on the Fund's current annualized quarterly
distribution divided by the Fund's current market price. The Fund's quarterly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a return of capital for tax purposes.
2 Effective March 1, 2007, the Fund changed from a monthly distribution to a
quarterly distribution schedule. The Fund's last monthly distribution was
declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly
distribution was declared June 1, 2007, and paid on July 2, 2007.
9
<Table>
JLA Nuveen Equity
PERFORMANCE Premium Advantage
OVERVIEW Fund
as of 6-30-07
</Table>
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)
(PIE CHART)
<Table>
Common Stocks 95.9
Short-Term Investments 3.8
Put Options 0.3
</Table>
2006-2007 DISTRIBUTIONS PER SHARE(2)
(BAR CHART)
<Table>
Jul 0.151
Aug 0.151
Sep 0.151
Oct 0.151
Nov 0.151
Dec 0.151
Jan 0.151
Feb 0.151
Mar 0.151
Jun 0.453
</Table>
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(LINE GRAPH)
<Table>
<Caption>
7/03/06 18.22
- ------- -----
18.24
18.26
18.23
18.24
18.24
18.04
17.95
17.98
17.96
17.87
18.07
17.89
17.95
18.1
18.29
18.33
18.32
18.51
18.39
18.43
18.43
18.61
18.54
18.48
18.59
18.79
18.71
18.57
18.6
18.79
18.93
18.9
18.95
19.02
18.94
18.95
18.95
18.89
18.9
19.08
19.03
19.2
19.21
19.34
19.09
18.91
19.13
19.03
19.16
19.17
18.95
18.99
19.08
19.16
19.1
19.13
19.15
19.14
19.17
19.18
19.25
19.38
19.38
19.37
19.37
19.39
19.35
19.41
19.51
19.56
19.25
19.24
19.05
19.01
18.95
19.1
19.25
19.2
19.11
19.3
19.32
19.27
19.3
19.18
19.0617
19.06
19.11
19.15
19.12
19.17
19.1
19.11
19.27
18.99
18.98
18.87
18.53
18.15
18.2
18.28
18.4
18.64
18.47
18.25
18.34
18.75
18.87
19.05
19.25
19.3
19.05
19.14
19.26
19.35
19.07
18.93
19.07
19.15
19.2
19.29
19.16
19.17
19.28
19.31
19.12
19.2
19.2
19.27
19.23
19.42
19.38
19.54
19.35
19.41
19.5199
19.33
19.16
19.25
19.23
19.18
19.18
19.15
19.07
19.1
19.17
19.25
19.35
19.36
19.29
19.4
19.41
19.46
19.39
19.46
19.5
19.21
19.13
19.22
19.17
19.1
19.08
19.1
19.25
19.2
19.01
19.2
19.13
19
18.6
18.87
18.93
19.05
19.05
19.08
18.61
18.47
18.55
18.46
18.51
18.46
18.6099
18.52
18.61
18.59
18.58
18.51
18.58
18.55
18.55
18.53
18.65
18.74
18.94
18.91
18.97
18.81
18.86
18.97
18.85
18.82
18.78
18.76
18.71
18.75
18.75
18.75
18.82
18.86
18.94
18.93
18.89
18.84
18.9
18.82
18.76
18.79
18.83
18.84
18.84
18.85
18.89
18.85
18.94
18.85
18.81
18.92
18.75
18.87
18.86
18.97
19.01
19.1
19.24
19.2
19.12
18.94
19.14
19.25
19.2
18.66
18.6
18.58
18.63
18.54
18.5
18.53
18.45
18.35
18.39
18.42
18.45
18.51
6/30/07 18.51
</Table>
FUND SNAPSHOT
<Table>
- -------------------------------------------------------------------------------------
Share Price $18.51
- -------------------------------------------------------------------------------------
Net Asset Value $18.54
- -------------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.16%
- -------------------------------------------------------------------------------------
Current Distribution Rate(1) 9.79%
- -------------------------------------------------------------------------------------
Net Assets ($000) $482,547
- -------------------------------------------------------------------------------------
</Table>
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/25/05)
<Table>
<Caption>
- -------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- -------------------------------------------------------------------------------------
6-Month (cumulative) 1.23% 6.09%
- -------------------------------------------------------------------------------------
1-Year 12.51% 11.83%
- -------------------------------------------------------------------------------------
Since Inception 5.75% 8.10%
- -------------------------------------------------------------------------------------
</Table>
INDUSTRIES
(as a % of total investments)
<Table>
- -------------------------------------------------------------------------------------
Software 9.2%
- -------------------------------------------------------------------------------------
Computers & Peripherals 8.3%
- -------------------------------------------------------------------------------------
Communications Equipment 7.6%
- -------------------------------------------------------------------------------------
Semiconductors & Equipment 5.9%
- -------------------------------------------------------------------------------------
Pharmaceuticals 5.1%
- -------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 4.1%
- -------------------------------------------------------------------------------------
Internet Software & Services 3.6%
- -------------------------------------------------------------------------------------
Biotechnology 3.3%
- -------------------------------------------------------------------------------------
Commercial Banks 3.3%
- -------------------------------------------------------------------------------------
Media 3.2%
- -------------------------------------------------------------------------------------
Capital Markets 2.9%
- -------------------------------------------------------------------------------------
Commercial Services & Supplies 2.7%
- -------------------------------------------------------------------------------------
Diversified Telecommunication Services 2.5%
- -------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 2.3%
- -------------------------------------------------------------------------------------
Industrial Conglomerates 2.1%
- -------------------------------------------------------------------------------------
Insurance 1.9%
- -------------------------------------------------------------------------------------
Diversified Financial Services 1.8%
- -------------------------------------------------------------------------------------
Specialty Retail 1.8%
- -------------------------------------------------------------------------------------
Put Options 0.3%
- -------------------------------------------------------------------------------------
Short-Term Investments 3.8%
- -------------------------------------------------------------------------------------
Other 24.3%
- -------------------------------------------------------------------------------------
</Table>
1 Current Distribution Rate is based on the Fund's current annualized quarterly
distribution divided by the Fund's current market price. The Fund's quarterly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a return of capital for tax purposes.
2 Effective March 1, 2007, the Fund changed from a monthly distribution to a
quarterly distribution schedule. The Fund's last monthly distribution was
declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly
distribution was declared June 1, 2007, and paid on July 2, 2007.
10
<Table>
JPG Nuveen Equity
PERFORMANCE Premium and Growth
OVERVIEW Fund
as of 6-30-07
</Table>
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)
(PIE CHART)
<Table>
Common Stocks 97.3
Put Options 0.2
Short-Term Investments 2.5
</Table>
2006-2007 DISTRIBUTIONS PER SHARE(2)
(BAR CHART)
<Table>
Jul 0.135
Aug 0.135
Sep 0.135
Oct 0.135
Nov 0.135
Dec 0.135
Jan 0.135
Feb 0.135
Mar 0.135
Jun 0.405
</Table>
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(LINE GRAPH)
<Table>
<Caption>
7/01/06 17.76
- ------- -----
17.71
17.73
17.76
17.81
17.84
17.56
17.48
17.25
17.23
17.35
17.55
17.51
17.42
17.55
17.7
17.85
17.97
18.18
18.17
18.31
18.39
18.47
18.39
18.43
18.5
18.57
18.54
18.34
18.49
18.56
18.56
18.46
18.6
18.62
18.68
18.73
18.74
18.59
18.62
18.79
18.82
18.99
18.95
19
18.88
18.97
18.97
19.04
19.09
18.89
19
19
18.83
18.7
18.79
18.72
18.69
19.13
19.1
19.14
19.11
19.33
19.33
19.34
19.42
19.43
19.1
19
18.96
19.02
18.9
18.72
18.63
18.64
18.7
18.8
18.86
18.93
18.94
18.86
18.93
18.99
19.03
18.98
18.9
18.94
18.89
18.85
18.9
18.93
19.01
18.86
18.85
18.67
18.68
18.62
18.47
18.4
18.3
18.25
18.54
18.61
18.35
18.61
18.83
18.97
18.99
19.05
19.05
19.05
19
19.03
19.08
19.28
19.29
19.25
19.34
19.48
19.47
19.47
19.35
19.3
19.5
19.48
19.49
19.38
19.38
19.5
19.54
19.42
19.63
19.79
19.58
19.55
19.51
19.55
19.67
19.71
19.63
19.5
19.49
19.51
19.51
19.59
19.86
19.91
19.8
19.93
19.8
19.79
19.78
19.75
19.75
19.75
19.54
19.37
19.51
19.46
19.33
19.26
18.98
18.86
19.34
19.44
19.21
19.35
19.35
19.14
19.19
19.32
19.53
19.58
19.63
19.66
19.38
19.07
19.24
19.15
19.22
19.18
19.42
19.58
19.65
19.6
19.6
19.61
19.68
19.75
19.75
19.74
19.8
19.83
19.79
19.9
19.96
19.81
20
19.99
19.89
19.77
19.76
19.87
19.74
19.77
19.73
19.8
19.84
19.86
19.87
19.93
19.92
19.9
19.91
19.88
19.85
19.82
19.71
19.79
19.76
19.7
19.77
19.77
19.86
19.69
19.67
19.76
19.48
19.53
19.5
19.53
19.63
19.69
19.7
19.68
19.54
19.34
19.48
19.56
19.41
19.04
18.99
19.03
19.06
19.01
18.99
19.04
19.04
18.9
18.83
18.92
18.93
19.1
6/30/07 19.1
</Table>
FUND SNAPSHOT
<Table>
- -------------------------------------------------------------------------------------
Share Price $19.10
- -------------------------------------------------------------------------------------
Net Asset Value $19.98
- -------------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.40%
- -------------------------------------------------------------------------------------
Current Distribution Rate(1) 8.48%
- -------------------------------------------------------------------------------------
Net Assets ($000) $330,427
- -------------------------------------------------------------------------------------
</Table>
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/22/05)
<Table>
<Caption>
- -------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- -------------------------------------------------------------------------------------
6-Month (cumulative) 2.74% 6.16%
- -------------------------------------------------------------------------------------
1-Year 18.53% 14.17%
- -------------------------------------------------------------------------------------
Since Inception 5.34% 11.11%
- -------------------------------------------------------------------------------------
</Table>
INDUSTRIES
(as a % of total investments)
<Table>
- -------------------------------------------------------------------------------------
Pharmaceuticals 9.4%
- -------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 9.2%
- -------------------------------------------------------------------------------------
Commercial Banks 7.1%
- -------------------------------------------------------------------------------------
Insurance 4.5%
- -------------------------------------------------------------------------------------
Industrial Conglomerates 4.4%
- -------------------------------------------------------------------------------------
Diversified Telecommunication Services 4.1%
- -------------------------------------------------------------------------------------
Software 3.4%
- -------------------------------------------------------------------------------------
Capital Markets 3.2%
- -------------------------------------------------------------------------------------
Semiconductors & Equipment 3.1%
- -------------------------------------------------------------------------------------
Diversified Financial Services 2.9%
- -------------------------------------------------------------------------------------
Real Estate 2.7%
- -------------------------------------------------------------------------------------
Computers & Peripherals 2.5%
- -------------------------------------------------------------------------------------
Specialty Retail 2.2%
- -------------------------------------------------------------------------------------
Tobacco 2.2%
- -------------------------------------------------------------------------------------
Metals & Mining 2.2%
- -------------------------------------------------------------------------------------
Household Products 2.0%
- -------------------------------------------------------------------------------------
Media 2.0%
- -------------------------------------------------------------------------------------
Internet Software & Services 1.9%
- -------------------------------------------------------------------------------------
Energy Equipment & Services 1.9%
- -------------------------------------------------------------------------------------
Chemicals 1.8%
- -------------------------------------------------------------------------------------
Put Options 0.2%
- -------------------------------------------------------------------------------------
Short-Term Investments 2.5%
- -------------------------------------------------------------------------------------
Other 24.6%
- -------------------------------------------------------------------------------------
</Table>
1 Current Distribution Rate is based on the Fund's current annualized quarterly
distribution divided by the Fund's current market price. The Fund's quarterly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a return of capital for tax purposes.
2 Effective March 1, 2007, the Fund changed from a monthly distribution to a
quarterly distribution schedule. The Fund's last monthly distribution was
declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly
distribution was declared June 1, 2007, and paid on July 2, 2007.
11
SHAREHOLDER MEETING REPORT
The shareholder meeting was held in the offices of Nuveen Investments
on April 4, 2007.
<Table>
<Caption>
JPZ JSN JLA JPG
- ------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common Common Common Common
Shares Shares Shares Shares
- ------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 34,744,871 63,233,381 21,509,676 13,788,341
Withhold 277,245 547,523 190,698 56,105
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown(1)
For 34,741,858 63,201,698 21,495,808 13,787,924
Withhold 280,258 579,206 204,566 56,522
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
Jack B. Evans
For 34,751,404 63,238,562 21,517,488 13,788,601
Withhold 270,712 542,342 182,886 55,845
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
William C. Hunter
For 34,755,564 63,240,760 21,516,773 13,784,926
Withhold 266,552 540,144 183,601 59,520
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
David J. Kundert
For 34,743,453 63,227,739 21,502,461 13,787,741
Withhold 278,663 553,165 197,913 56,705
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For 34,747,099 63,224,956 21,512,180 13,789,376
Withhold 275,017 555,948 188,194 55,070
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For 34,750,269 63,230,013 21,515,252 13,788,741
Withhold 271,847 550,891 185,122 55,705
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 34,732,668 63,238,253 21,510,136 13,787,341
Withhold 289,448 542,651 190,238 57,105
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
Carole E. Stone
For 34,740,098 63,233,436 21,508,186 13,787,741
Withhold 282,018 547,468 192,188 56,705
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine(2)
For 34,748,133 63,228,606 21,515,065 13,788,741
Withhold 273,983 552,298 185,309 55,705
- ------------------------------------------------------------------------------------------------------------------------
Total 35,022,116 63,780,904 21,700,374 13,844,446
- ------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Lawrence H. Brown retired from the Board of Trustees on July 1, 2007.
(2) Mr. Eugene S. Sunshine resigned from the Board of Trustees on July 31, 2007.
12
JPZ
Nuveen Equity Premium Income Fund
Portfolio of INVESTMENTS
as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 97.1%
AEROSPACE & DEFENSE - 2.8%
71,400 Boeing Company $ 6,865,824
100,000 Honeywell International Inc. 5,628,000
32,000 Raytheon Company 1,724,480
89,400 United Technologies Corporation 6,341,142
- --------------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 20,559,446
-------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS - 0.1%
13,759 United Parcel Service, Inc., Class B 1,004,407
- --------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.2%
22,200 AMR Corporation-DEL, (1) 584,970
14,800 Continental Airlines, Inc., (1) 501,276
- --------------------------------------------------------------------------------------------------------------------------------
Total Airlines 1,086,246
-------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.2%
21,200 American Axle and Manufacturing Holdings Inc. 627,944
30,487 Cooper Tire & Rubber 842,051
- --------------------------------------------------------------------------------------------------------------------------------
Total Auto Components 1,469,995
-------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.6%
204,000 Ford Motor Company 1,921,680
48,800 General Motors Corporation 1,844,640
4,000 Harley-Davidson, Inc. 238,440
- --------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 4,004,760
-------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.1%
106,397 Coca-Cola Company 5,565,627
40,500 PepsiCo, Inc. 2,626,425
- --------------------------------------------------------------------------------------------------------------------------------
Total Beverages 8,192,052
-------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.0%
100 Genentech, Inc., (1) 7,566
- --------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.1%
25,567 Masco Corporation 727,892
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 3.1%
46,000 Charles Schwab Corporation 943,920
19,900 Goldman Sachs Group, Inc. 4,313,325
10,500 Jefferies Group, Inc. 283,290
177,861 JPMorgan Chase & Co. 8,617,365
20,300 Legg Mason, Inc. 1,997,114
31,400 Merrill Lynch & Co., Inc. 2,624,412
23,500 Morgan Stanley 1,971,180
59,400 Waddell & Reed Financial, Inc., Class A 1,544,994
- --------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 22,295,600
-------------------------------------------------------------------------------------------------------------------
CHEMICALS - 2.7%
51,511 Dow Chemical Company 2,277,816
148,600 E.I. Du Pont de Nemours and Company 7,554,824
40,400 Eastman Chemical Company 2,598,932
42,998 Lubrizol Corporation 2,775,521
36,100 Lyondell Chemical Company 1,340,032
19,000 NL Industries Inc. 190,380
53,293 Olin Corporation 1,119,153
63,622 RPM International, Inc. 1,470,304
- --------------------------------------------------------------------------------------------------------------------------------
Total Chemicals 19,326,962
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 7.1%
383,779 Bank of America Corporation 18,762,955
18,300 Comerica Incorporated 1,088,301
</Table>
13
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
3,000 Federated Investors Inc. $ 114,990
52,600 HSBC Holdings PLC, Sponsored ADR 4,827,102
145,300 Lloyds TSB Group PLC, Sponsored ADR 6,497,816
38,700 TrustCo Bank Corporation NY 382,356
175,300 U.S. Bancorp 5,776,135
112,400 Wachovia Corporation 5,760,500
34,100 Washington Mutual, Inc. 1,454,024
190,800 Wells Fargo & Company 6,710,436
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 51,374,615
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 2.2%
65,710 Automatic Data Processing, Inc. 3,184,964
3,800 Avery Dennison Corporation 252,624
90,303 Deluxe Corporation 3,667,205
1,700 ITT Educational Services, Inc., (1) 199,546
3,200 Manpower Inc. 295,168
35,000 Paychex, Inc. 1,369,200
23,000 Pitney Bowes Inc. 1,076,860
5,800 Priceline.com Incorporated, (1) 398,692
8,500 R.R. Donnelley & Sons Company 369,835
116,428 ServiceMaster Company 1,799,977
34,100 Standard Register Company 388,740
65,671 Waste Management, Inc. 2,564,453
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 15,567,264
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.3%
17,600 ADTRAN, Inc. 457,072
30,600 Avaya Inc., (1) 515,304
8,828 Ciena Corporation, (1) 318,956
263,500 Cisco Systems, Inc., (1) 7,338,475
56,100 Corning Incorporated, (1) 1,433,355
11,875 JDS Uniphase Corporation, (1) 159,481
149,100 Motorola, Inc. 2,639,070
91,479 QUALCOMM Inc. 3,969,274
- --------------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 16,830,987
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 3.3%
51,646 Apple, Inc., (1) 6,302,878
67,793 Dell Inc., (1) 1,935,490
93,700 EMC Corporation, (1) 1,695,970
129,100 Hewlett-Packard Company 5,760,442
70,044 International Business Machines Corporation 7,372,131
(IBM)
10,457 McAfee Inc., (1) 368,086
133,600 Sun Microsystems Inc., (1) 702,736
- --------------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 24,137,733
-------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.8%
9,900 Chesapeake Corporation 124,443
65,700 Packaging Corp. of America 1,662,867
87,489 Sonoco Products Company 3,745,404
- --------------------------------------------------------------------------------------------------------------------------------
Total Containers & Packaging 5,532,714
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 4.5%
16,900 A. G. Edwards, Inc. 1,428,895
91,104 Capitalsource Inc. 2,240,247
8,700 Chicago Mercantile Exchange Holdings Inc., Class 4,648,932
A
438,000 Citigroup Inc. 22,465,020
22,000 Federal Home Loan Mortgage Corporation 1,335,400
2,500 Moody's Corporation 155,500
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 32,273,994
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.4%
582,077 AT&T Inc. 24,156,196
220,900 Citizens Communications Company 3,373,143
107,100 Verizon Communications Inc. 4,409,307
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 31,938,646
-------------------------------------------------------------------------------------------------------------------
</Table>
14
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.5%
27,000 Ameren Corporation $ 1,323,270
33,900 Consolidated Edison, Inc. 1,529,568
25,949 Great Plains Energy Incorporated 755,635
60,600 OGE Energy Corp. 2,220,990
80,800 Pepco Holdings, Inc. 2,278,560
33,400 Progress Energy, Inc. 1,522,706
27,000 Southern Company 925,830
- --------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 10,556,559
-------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.9%
122,400 Emerson Electric Co. 5,728,320
400 Hubbell Incorporated, Class B 21,688
14,000 Rockwell Automation, Inc. 972,160
- --------------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 6,722,168
-------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.0%
6,500 Cogent Inc., (1) 95,485
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 2.6%
21,300 Diamond Offshore Drilling, Inc. 2,163,228
24,668 ENSCO International Incorporated 1,504,995
111,600 Halliburton Company 3,850,200
11,600 Patterson-UTI Energy, Inc. 304,036
79,200 Schlumberger Limited 6,727,248
17,600 Smith International, Inc. 1,032,064
46,500 Tidewater Inc. 3,295,920
- --------------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 18,877,691
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.8%
36,406 CVS Caremark Corporation 1,326,999
200 Longs Drug Stores Corporation 10,504
38,696 SUPERVALU INC 1,792,399
53,325 Wal-Mart Stores, Inc. 2,565,466
800 Whole Foods Market, Inc. 30,640
- --------------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 5,726,008
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 1.0%
173,705 Kraft Foods Inc. 6,123,101
57,000 Sara Lee Corporation 991,800
- --------------------------------------------------------------------------------------------------------------------------------
Total Food Products 7,114,901
-------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.9%
28,200 AGL Resources Inc. 1,141,536
62,601 Atmos Energy Corporation 1,881,786
81,800 Nicor Inc. 3,510,856
- --------------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 6,534,178
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3%
36,000 Baxter International Inc. 2,028,240
3,025 Medtronic, Inc. 156,877
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 2,185,117
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.0%
15,450 Coventry Health Care, Inc., (1) 890,693
6,700 Mentor Corporation 272,556
2,100 Omnicare, Inc. 75,726
88,646 UnitedHealth Group Incorporated 4,533,356
21,300 Wellpoint Inc., (1) 1,700,379
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 7,472,710
-------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.0%
17,000 Carnival Corporation 829,090
13,566 Harrah's Entertainment, Inc. 1,156,637
22,661 International Game Technology 899,642
86,900 McDonald's Corporation 4,411,044
- --------------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 7,296,413
-------------------------------------------------------------------------------------------------------------------
</Table>
15
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 1.7%
4,100 Black & Decker Corporation $ 362,071
22,017 D.R. Horton, Inc. 438,799
1,300 KB Home 51,181
107,400 Newell Rubbermaid Inc. 3,160,782
12,400 Snap-on Incorporated 626,324
25,600 Stanley Works 1,553,920
106,700 Tupperware Corporation 3,066,558
29,936 Whirlpool Corporation 3,328,883
- --------------------------------------------------------------------------------------------------------------------------------
Total Household Durables 12,588,518
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 2.3%
53,200 Colgate-Palmolive Company 3,450,020
22,000 Kimberly-Clark Corporation 1,471,580
193,080 Procter & Gamble Company 11,814,565
- --------------------------------------------------------------------------------------------------------------------------------
Total Household Products 16,736,165
-------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 3.9%
2,000 American Standard Companies Inc. 117,960
657,430 General Electric Company 25,166,420
52,800 Genuine Parts Company 2,618,880
- --------------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 27,903,260
-------------------------------------------------------------------------------------------------------------------
INSURANCE - 4.2%
36,800 Allstate Corporation 2,263,568
111,000 American International Group, Inc. 7,773,330
24,405 Arthur J. Gallagher & Co. 680,411
209,268 Fidelity National Title Group Inc., Class A 4,959,652
12,500 Hartford Financial Services Group, Inc. 1,231,375
80,446 Lincoln National Corporation 5,707,644
72,500 Marsh & McLennan Companies, Inc. 2,238,800
1,100 Mercury General Corporation 60,621
46,000 Travelers Companies, Inc. 2,461,000
52,700 Unitrin, Inc. 2,591,786
- --------------------------------------------------------------------------------------------------------------------------------
Total Insurance 29,968,187
-------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.3%
24,004 Amazon.com, Inc., (1) 1,642,114
16,438 IAC/InterActiveCorp., (1) 568,919
- --------------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 2,211,033
-------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 1.5%
56,917 eBay Inc., (1) 1,831,589
3,160 F5 Networks, Inc., (1) 254,696
10,606 Google Inc., Class A, (1) 5,550,968
7,100 Openwave Systems Inc., (1) 44,446
159,665 United Online, Inc. 2,632,876
30,100 Yahoo! Inc., (1) 816,613
- --------------------------------------------------------------------------------------------------------------------------------
Total Internet Software & Services 11,131,188
-------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.2%
2,050 FactSet Research Systems Inc. 140,118
6,395 Fidelity National Information Services 347,121
- --------------------------------------------------------------------------------------------------------------------------------
Total IT Services 487,239
-------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.1%
2,138 Brunswick Corporation 69,763
17,155 Eastman Kodak Company 477,424
7,900 Polaris Industries Inc. 427,864
- --------------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 975,051
-------------------------------------------------------------------------------------------------------------------
MACHINERY - 2.2%
30,891 Briggs & Stratton Corporation 974,920
75,600 Caterpillar Inc. 5,919,480
2,400 Cummins Inc. 242,904
9,200 Deere & Company 1,110,808
13,600 Graco Inc. 547,808
16,555 Ingersoll Rand Company Limited, Class A 907,545
400 Joy Global Inc. 23,332
</Table>
16
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
MACHINERY (continued)
6,500 Parker Hannifin Corporation $ 636,415
57,966 SPX Corporation 5,089,994
12,000 Timken Company 433,320
- --------------------------------------------------------------------------------------------------------------------------------
Total Machinery 15,886,526
-------------------------------------------------------------------------------------------------------------------
MEDIA - 1.8%
45,213 CBS Corporation, Class B 1,506,497
2,780 Citadel Broadcasting Corporation 17,931
67,800 Clear Channel Communications, Inc. 2,564,196
15,000 Dow Jones & Company, Inc. 861,750
5,355 Idearc Inc. 189,192
39,613 New York Times, Class A 1,006,170
26,000 Omnicom Group Inc. 1,375,920
183,600 Regal Entertainment Group, Class A 4,026,348
5,800 ValueClick, Inc., (1) 170,868
36,200 Walt Disney Company 1,235,868
6,200 XM Satellite Radio Holdings Inc., Class A, (1) 72,974
- --------------------------------------------------------------------------------------------------------------------------------
Total Media 13,027,714
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 1.4%
16,400 Alcoa Inc. 664,692
28,800 CONSOL Energy Inc. 1,327,968
32,000 Nucor Corporation 1,876,800
63,400 Southern Copper Corporation 5,976,084
- --------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 9,845,544
-------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 1.2%
13,000 Family Dollar Stores, Inc. 446,160
38,002 Federated Department Stores, Inc. 1,511,720
55,400 Nordstrom, Inc. 2,832,048
7,900 Sears Holding Corporation, (1) 1,339,050
40,800 Target Corporation 2,594,880
- --------------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 8,723,858
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 1.8%
125,900 Duke Energy Corporation 2,303,970
82,456 Integrys Energy Group, Inc. 4,182,993
28,500 National Fuel Gas Company 1,234,335
49,100 ONEOK, Inc. 2,475,131
32,100 Public Service Enterprise Group Incorporated 2,817,738
- --------------------------------------------------------------------------------------------------------------------------------
Total Multi-Utilities 13,014,167
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 7.7%
1,100 BP Amoco PLC 79,354
167,900 Chevron Corporation 14,143,896
63,649 ConocoPhillips 4,996,447
422,200 Exxon Mobil Corporation 35,414,132
9,900 Valero Energy Corporation 731,214
- --------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 55,365,043
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.6%
12,070 Bowater Incorporated 301,147
47,000 Weyerhaeuser Company 3,709,710
- --------------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 4,010,857
-------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 7.7%
111,700 Abbott Laboratories 5,981,535
246,638 Bristol-Myers Squibb Company 7,783,895
13,040 CV Therapeutics Inc., (1) 172,258
63,000 Eli Lilly and Company 3,520,440
11,471 GlaxoSmithKline PLC, ADR 600,736
164,856 Johnson & Johnson 10,158,427
234,802 Merck & Co. Inc. 11,693,140
426,857 Pfizer Inc. 10,914,733
22,700 Schering-Plough Corporation 690,988
69,200 Wyeth 3,967,928
- --------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 55,484,080
-------------------------------------------------------------------------------------------------------------------
</Table>
17
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.7%
9,500 American Financial Realty Trust $ 98,040
57,700 American Home Mortgage Investment Corp. (4) 1,060,526
154,100 Crescent Real Estate Equities Company 3,458,004
39,900 First Industrial Realty Trust, Inc. 1,546,524
21,000 Health Care REIT, Inc. 847,560
58,500 Healthcare Realty Trust, Inc. 1,625,130
117,900 HRPT Properties Trust 1,226,160
22,300 Lexington Corporate Properties Trust 463,840
5,700 Liberty Property Trust 250,401
42,800 Nationwide Health Properties, Inc. 1,164,160
7,682 Newcastle Investment Corporation 192,588
27,000 Senior Housing Properties Trust 549,450
- --------------------------------------------------------------------------------------------------------------------------------
Total Real Estate 12,482,383
-------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.3%
17,069 Burlington Northern Santa Fe Corporation 1,453,255
13,563 Norfolk Southern Corporation 713,007
- --------------------------------------------------------------------------------------------------------------------------------
Total Road & Rail 2,166,262
-------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 2.7%
11,500 Advanced Micro Devices, Inc., (1) 164,450
26,500 Analog Devices, Inc. 997,460
105,600 Applied Materials, Inc. 2,098,272
45,300 Broadcom Corporation, Class A, (1) 1,325,025
190,771 Intel Corporation 4,532,719
10,600 Intersil Holding Corporation, Class A 333,476
6,800 Lam Research Corporation, (1) 349,520
64,115 Maxim Integrated Products, Inc. 2,142,082
39,700 Microchip Technology Incorporated 1,470,488
24,800 National Semiconductor Corporation 701,096
20,800 NVIDIA Corporation, (1) 859,248
115,500 Texas Instruments Incorporated 4,346,265
- --------------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 19,320,101
-------------------------------------------------------------------------------------------------------------------
SOFTWARE - 3.3%
42,852 Adobe Systems Incorporated, (1) 1,720,508
4,580 Akamai Technologies, Inc., (1) 222,771
11,400 Autodesk, Inc., (1) 536,712
34,800 BEA Systems, Inc., (1) 476,412
16,333 Cognizant Technology Solutions Corporation, Class A, (1) 1,226,445
438,892 Microsoft Corporation 12,934,147
16,433 NAVTEQ Corporation, (1) 695,773
251,178 Oracle Corporation, (1) 4,950,718
6,100 Red Hat, Inc., (1) 135,908
10,500 Salesforce.com, Inc., (1) 450,030
3,384 VeriSign, Inc., (1) 107,374
- --------------------------------------------------------------------------------------------------------------------------------
Total Software 23,456,798
-------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 2.1%
27,715 Abercrombie & Fitch Co., Class A 2,022,641
47,700 American Eagle Outfitters, Inc. 1,223,982
52,650 Best Buy Co., Inc. 2,457,176
24,200 Chico's FAS, Inc., (1) 589,028
9,100 Christopher & Banks Corporation 156,065
86,896 Home Depot, Inc. 3,419,358
53,597 Limited Brands, Inc. 1,471,238
55,300 Lowe's Companies, Inc. 1,697,157
5,212 RadioShack Corporation 172,726
500 Sherwin-Williams Company 33,235
5,000 Tiffany & Co. 265,300
19,700 TJX Companies, Inc. 541,750
83,469 Tuesday Morning Corporation 1,031,677
- --------------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 15,081,333
-------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.3%
27,238 VF Corporation 2,494,456
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
18
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
60,800 New York Community Bancorp, Inc. $ 1,034,816
- --------------------------------------------------------------------------------------------------------------------------------
TOBACCO - 2.5%
217,733 Altria Group, Inc. 15,271,793
32,200 Reynolds American Inc. 2,099,440
34,424 Vector Group Ltd. 775,573
- --------------------------------------------------------------------------------------------------------------------------------
Total Tobacco 18,146,806
-------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $512,242,701) 700,453,494
===================================================================================================================
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.8%
$ 34,909 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 34,909,257
Corporation, dated 6/29/07, repurchase price
$34,920,893, collateralized by $29,190,000 U.S.
Treasury Bonds, 7.125%, due 2/15/23, value
$35,611,800
========== -------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $34,909,257) 34,909,257
===================================================================================================================
<Caption>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS - 0.3%
692 S&P 500 Index $ 91,690,000 7/21/07 $ 1,325 $ 31,140
692 S&P 500 Index 93,420,000 7/21/07 $ 1,350 58,820
684 S&P 500 Index 92,340,000 8/18/07 1,350 328,320
653 S&P 500 Index 89,787,500 8/18/07 1,375 424,450
664 S&P 500 Index 87,980,000 9/22/07 1,325 464,800
619 S&P 500 Index 83,565,000 9/22/07 1,350 550,910
608 S&P 500 Index 83,600,000 9/22/07 1,375 693,120
- -----------------------------------------------------------------------------------------------------------------------------------
4,612 TOTAL PUT OPTIONS (COST $3,549,040) 622,382,500 2,551,560
===================================================================================================================================
TOTAL INVESTMENTS (COST $550,700,998) - 102.2% 737,914,311
====================================================================================================================
<Caption>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (2.3)% (3)
(1,140) S&P 500 Index $ (168,150,000) 7/21/07 $ 1,475 $ (4,827,900)
(872) S&P 500 Index (130,800,000) 7/21/07 1,500 (2,123,320)
(578) S&P 500 Index (88,145,000) 7/21/07 1,525 (630,020)
(580) S&P 500 Index (85,550,000) 8/18/07 1,475 (3,268,300)
(567) S&P 500 Index (85,050,000) 8/18/07 1,500 (2,214,135)
(311) S&P 500 Index (47,427,500) 8/18/07 1,525 (763,505)
(564) S&P 500 Index (84,600,000) 9/22/07 1,500 (2,946,900)
- -----------------------------------------------------------------------------------------------------------------------------------
(4,612) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (689,722,500) (16,774,080)
$22,787,880)
===================================================================================================================================
OTHER ASSETS LESS LIABILITIES - 0.1% 600,157
====================================================================================================================
NET ASSETS - 100% $ 721,740,388
====================================================================================================================
</Table>
<Table>
(1) Non-income producing.
(2) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options Written.
(4) At or subsequent to June 30, 2007, this issue was under the protection of the Federal
Bankruptcy Court.
ADR American Depositary Receipt.
</Table>
See accompanying notes to financial statements.
19
JSN
Nuveen Equity Premium Opportunity Fund
Portfolio of INVESTMENTS
as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.2%
AEROSPACE & DEFENSE - 2.5%
79,265 Boeing Company $ 7,622,122
133,500 Honeywell International Inc. 7,513,380
26,000 Lockheed Martin Corporation 2,447,380
41,700 Northrop Grumman Corporation 3,247,179
46,000 Raytheon Company 2,478,940
107,600 United Technologies Corporation 7,632,068
- --------------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 30,941,069
-------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS - 0.6%
97,866 United Parcel Service, Inc., Class B 7,144,218
- --------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.2%
93,200 AMR Corporation-DEL, (1) 2,455,820
- --------------------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.4%
82,581 General Motors Corporation 3,121,562
35,100 Harley-Davidson, Inc. 2,092,311
- --------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 5,213,873
-------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.2%
176,250 Coca-Cola Company 9,219,638
83,200 PepsiCo, Inc. 5,395,520
- --------------------------------------------------------------------------------------------------------------------------------
Total Beverages 14,615,158
- --------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 2.0%
87,961 Amgen Inc., (1) 4,863,364
117,884 Biogen Idec Inc., (1) 6,306,794
44,700 Genentech, Inc., (1) 3,382,002
36,400 Genzyme Corporation, (1) 2,344,160
184,200 Gilead Sciences, Inc., (1) 7,141,434
3,029 Sepracor Inc., (1) 124,250
- --------------------------------------------------------------------------------------------------------------------------------
Total Biotechnology 24,162,004
-------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 3.4%
156,050 Charles Schwab Corporation 3,202,146
26,800 Goldman Sachs Group, Inc. 5,808,900
308,177 JPMorgan Chase & Co. 14,931,176
32,749 Legg Mason, Inc. 3,221,847
132,250 Morgan Stanley 11,093,130
136,400 Waddell & Reed Financial, Inc., Class A 3,547,764
- --------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 41,804,963
-------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.7%
63,500 Dow Chemical Company 2,807,970
134,900 E.I. Du Pont de Nemours and Company 6,858,316
41,579 Eastman Chemical Company 2,674,777
72,000 Lubrizol Corporation 4,647,600
26,400 Lyondell Chemical Company 979,968
152,650 RPM International, Inc. 3,527,742
- --------------------------------------------------------------------------------------------------------------------------------
Total Chemicals 21,496,373
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 4.3%
485,130 Bank of America Corporation 23,718,006
113,756 Commerce Bancorp, Inc. 4,207,834
30,000 F.N.B. Corporation PA 502,200
11,515 HSBC Holdings PLC, Sponsored ADR 1,056,732
91,300 Lloyds TSB Group PLC, Sponsored ADR 4,082,936
283,700 U.S. Bancorp 9,347,915
</Table>
20
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
41,702 Wachovia Corporation $ 2,137,228
217,900 Wells Fargo & Company 7,663,543
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 52,716,394
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 2.1%
98,100 Automatic Data Processing, Inc. 4,754,907
28,958 Corporate Executive Board Company 1,879,664
88,440 Deluxe Corporation 3,591,548
19,417 Fair Isaac Corporation 779,010
57,150 Manpower Inc. 5,271,516
49,600 R.R. Donnelley & Sons Company 2,158,096
267,200 ServiceMaster Company 4,130,912
95,550 Waste Management, Inc. 3,731,228
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 26,296,881
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 5.7%
67,678 ADTRAN, Inc. 1,757,598
880,708 Cisco Systems, Inc., (1) 24,527,718
184,500 Corning Incorporated, (1) 4,713,975
55,800 Harris Corporation 3,043,890
243,800 Motorola, Inc. 4,315,260
552,115 QUALCOMM Inc. 23,956,270
44,412 Research In Motion Limited, (1) 8,881,956
- --------------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 71,196,667
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 5.6%
326,729 Apple, Inc., (1) 39,874,007
46,900 Dell Inc., (1) 1,338,995
222,900 EMC Corporation, (1) 4,034,490
317,700 Hewlett-Packard Company 14,175,774
63,117 International Business Machines Corporation (IBM) 6,643,064
57,350 McAfee Inc., (1) 2,018,720
46,028 Network Appliance, Inc., (1) 1,344,018
- --------------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 69,429,068
-------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.2%
31,000 American Express Company 1,896,580
55,700 Western Union Company 1,160,231
- --------------------------------------------------------------------------------------------------------------------------------
Total Consumer Finance 3,056,811
-------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.9%
206,200 Packaging Corp. of America 5,218,922
127,450 Sonoco Products Company 5,456,135
- --------------------------------------------------------------------------------------------------------------------------------
Total Containers & Packaging 10,675,057
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 3.7%
56,200 A. G. Edwards, Inc. 4,751,710
1,171 Capitalsource Inc. 28,795
11,000 Chicago Mercantile Exchange Holdings Inc., Class A 5,877,960
549,300 Citigroup Inc. 28,173,597
33,900 Eaton Vance Corporation 1,497,702
126,150 ING Group N.V., Sponsored ADR 5,546,816
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 45,876,580
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 3.6%
745,702 AT&T Inc. 30,946,625
163,538 Citizens Communications Company 2,497,225
13,679 Level 3 Communications Inc., (1) 80,022
110,023 Sprint Nextel Corporation 2,278,576
219,641 Verizon Communications Inc. 9,042,620
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 44,845,068
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.1%
38,400 Ameren Corporation 1,881,984
92,400 Companhia Energetica de Minas Gerais 1,949,640
884 CPFL Energia SA 53,685
113,550 Great Plains Energy Incorporated 3,306,576
</Table>
21
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (continued)
92,500 OGE Energy Corp. $ 3,390,125
118,050 Pepco Holdings, Inc. 3,329,010
- --------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 13,911,020
-------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.3%
52,646 Cooper Industries, Ltd., Class A 3,005,560
161,600 Emerson Electric Co. 7,562,880
46,400 Hubbell Incorporated, Class B 2,515,808
39,000 Rockwell Automation, Inc. 2,708,160
- --------------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 15,792,408
-------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
122,860 Gentex Corporation 2,419,113
51,200 Roper Industries Inc. 2,923,520
- --------------------------------------------------------------------------------------------------------------------------------
Total Electronic Equipment & Instruments 5,342,633
-------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 2.2%
45,800 Diamond Offshore Drilling, Inc. 4,651,448
50,173 ENSCO International Incorporated 3,061,055
194,500 Halliburton Company 6,710,250
57,216 Patterson-UTI Energy, Inc. 1,499,631
75,000 Schlumberger Limited 6,370,500
77,621 Tidewater Inc. 5,501,776
- --------------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 27,794,660
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.9%
86,506 CVS Caremark Corporation 3,153,144
49,900 Kroger Co. 1,403,687
33,114 SUPERVALU INC 1,533,840
33,376 Walgreen Co. 1,453,191
87,014 Wal-Mart Stores, Inc. 4,186,244
- --------------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 11,730,106
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.9%
153,214 Kraft Foods Inc. 5,400,794
61,000 Monsanto Company 4,119,940
90,000 Sara Lee Corporation 1,566,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Food Products 11,086,734
-------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.9%
24,400 AGL Resources Inc. 987,712
149,850 Atmos Energy Corporation 4,504,491
122,400 Nicor Inc. 5,253,408
22,569 Piedmont Natural Gas Company 556,326
- --------------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 11,301,937
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.6%
83,900 Baxter International Inc. 4,726,926
4,300 Boston Scientific Corporation, (1) 65,962
35,700 Hillenbrand Industries 2,320,500
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 7,113,388
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.4%
47,762 Aetna Inc. 2,359,443
7,100 AmericGroup Corporation, (1) 168,980
37,826 Coventry Health Care, Inc., (1) 2,180,669
70,244 Health Management Associates Inc. 797,972
43,000 Mentor Corporation 1,749,240
104,537 UnitedHealth Group Incorporated 5,346,022
60,402 Wellpoint Inc., (1) 4,821,892
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 17,424,218
-------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.5%
68,500 International Game Technology 2,719,450
218,400 McDonald's Corporation 11,085,984
</Table>
22
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (continued)
43,343 Starwood Hotels & Resorts Worldwide, Inc. $ 2,907,015
15,200 Wynn Resorts Ltd 1,363,288
- --------------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 18,075,737
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 1.1%
184,850 Newell Rubbermaid Inc. 5,440,136
44,700 Stanley Works 2,713,290
52,780 Whirlpool Corporation 5,869,136
- --------------------------------------------------------------------------------------------------------------------------------
Total Household Durables 14,022,562
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 1.4%
59,100 Colgate-Palmolive Company 3,832,635
229,375 Procter & Gamble Company 14,035,456
- --------------------------------------------------------------------------------------------------------------------------------
Total Household Products 17,868,091
-------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 3.0%
9,932 3M Co. 861,998
850,058 General Electric Company 32,540,220
57,800 Genuine Parts Company 2,866,880
12,000 Tyco International Ltd. 405,480
- --------------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 36,674,578
-------------------------------------------------------------------------------------------------------------------
INSURANCE - 2.0%
43,400 Allstate Corporation 2,669,534
120,020 American International Group, Inc. 8,405,001
118,050 Arthur J. Gallagher & Co. 3,291,234
53,486 Fidelity National Title Group Inc., Class A 1,267,618
105,900 Marsh & McLennan Companies, Inc. 3,270,192
35,150 Mercury General Corporation 1,937,117
81,750 Unitrin, Inc. 4,020,465
- --------------------------------------------------------------------------------------------------------------------------------
Total Insurance 24,861,161
-------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.5%
62,150 Amazon.com, Inc., (1) 4,251,682
45,134 IAC/InterActiveCorp., (1) 1,562,088
- --------------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 5,813,770
-------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 3.1%
2,500 Baidu.com, Inc., (1) 419,950
392,000 Earthlink, Inc., (1) 2,928,240
173,114 eBay Inc., (1) 5,570,809
41,698 Google Inc., Class A, (1) 21,823,899
265,070 United Online, Inc. 4,371,004
109,390 Yahoo! Inc., (1) 2,967,751
- --------------------------------------------------------------------------------------------------------------------------------
Total Internet Software & Services 38,081,653
-------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.5%
7,300 aQuantive, Inc., (1) 465,740
53,300 BearingPoint Inc., (1) 389,623
2,519 Broadridge Financial Solutions, Inc. 48,163
87,200 Electronic Data Systems Corporation 2,418,056
26,178 Fidelity National Information Services 1,420,942
55,700 First Data Corporation 1,819,719
- --------------------------------------------------------------------------------------------------------------------------------
Total IT Services 6,562,243
-------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.3%
85,100 Mattel, Inc. 2,152,179
34,500 Polaris Industries Inc. 1,868,520
- --------------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 4,020,699
-------------------------------------------------------------------------------------------------------------------
MACHINERY - 1.7%
105,200 Caterpillar Inc. 8,237,160
52,750 Graco Inc. 2,124,770
23,730 Joy Global Inc. 1,384,171
76,400 SPX Corporation 6,708,684
67,000 Timken Company 2,419,370
- --------------------------------------------------------------------------------------------------------------------------------
Total Machinery 20,874,155
-------------------------------------------------------------------------------------------------------------------
</Table>
23
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
MARINE - 0.0%
20,735 Eagle Bulk Shipping Inc. $ 464,671
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.5%
11,039 Cablevision Systems Corporation, (1) 399,501
19,550 Catalina Marketing Corporation 615,825
17,100 CBS Corporation, Class B 569,772
118,281 Citadel Broadcasting Corporation 762,912
71,700 Clear Channel Communications, Inc. 2,711,694
12,600 Dow Jones & Company, Inc. 723,870
51,300 Entrcom Communications Corporation 1,276,857
10,982 Idearc Inc. 387,994
8,687 Live Nation Inc., (1) 194,415
144,450 News Corporation, Class A 3,063,785
56,950 Omnicom Group Inc. 3,013,794
234,500 Regal Entertainment Group, Class A 5,142,585
308,859 Sirius Satellite Radio Inc., (1) 932,754
19,800 Time Warner Inc. 416,592
46,400 Viacom Inc., Class B, (1) 1,931,632
144,300 Walt Disney Company 4,926,402
192,470 Westwood One, Inc., (1) 1,383,859
189,337 XM Satellite Radio Holdings Inc., Class A, (1) 2,228,496
- --------------------------------------------------------------------------------------------------------------------------------
Total Media 30,682,739
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 1.2%
52,210 Alcoa Inc. 2,116,071
140,000 Companhia Siderurgica Nacional S.A., Sponsored ADR 7,240,800
58,775 Southern Copper Corporation 5,540,132
- --------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 14,897,003
-------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 1.0%
12,800 Family Dollar Stores, Inc. 439,296
66,792 Federated Department Stores, Inc. 2,656,986
93,000 Nordstrom, Inc. 4,754,160
9,977 Sears Holding Corporation, (1) 1,691,102
44,400 Target Corporation 2,823,840
- --------------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 12,365,384
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 1.3%
181,250 Duke Energy Corporation 3,316,875
88,300 National Fuel Gas Company 3,824,273
95,800 ONEOK, Inc. 4,829,278
42,100 Public Service Enterprise Group Incorporated 3,695,538
- --------------------------------------------------------------------------------------------------------------------------------
Total Multi-Utilities 15,665,964
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 5.3%
183,650 Chevron Corporation 15,470,676
74,000 ConocoPhillips 5,809,000
491,421 Exxon Mobil Corporation 41,220,393
20,922 General Maritime Corporation, (1) 560,291
44,960 Norsk Hydro ASA 1,720,619
2,417 Occidental Petroleum Corporation 139,896
15,611 Royal Dutch Shell PLC, Class A 1,267,613
- --------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 66,188,488
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.2%
37,000 Bowater Incorporated 923,150
- --------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 7.3%
152,900 Abbott Laboratories 8,187,795
406,450 Bristol-Myers Squibb Company 12,827,562
108,800 Celgene Corporation, (1) 6,237,504
24,800 CV Therapeutics Inc., (1) 327,608
92,538 Eli Lilly and Company 5,171,023
49,700 GlaxoSmithKline PLC, ADR 2,602,789
111,950 Johnson & Johnson 6,898,359
381,350 Merck & Co. Inc. 18,991,230
6,000 Neurocrine Biosciences Inc., (1) 67,380
698,250 Pfizer Inc. 17,854,253
</Table>
24
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (continued)
124,850 Schering-Plough Corporation $ 3,800,434
139,850 Wyeth 8,018,999
- --------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 90,984,936
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.6%
277,600 Crescent Real Estate Equities Company 6,229,344
4,742 Deerfield Triarc Capital Corporation 69,375
56,800 First Industrial Realty Trust, Inc. 2,201,568
59,500 Health Care REIT, Inc. 2,401,420
86,441 Hospitality Properties Trust 3,586,437
18,978 Host Hotels & Resorts Inc. 438,771
149,200 HRPT Properties Trust 1,551,680
112,500 Nationwide Health Properties, Inc. 3,060,000
4,210 Newcastle Investment Corporation 105,545
5,793 RAIT Investment Trust 150,734
- --------------------------------------------------------------------------------------------------------------------------------
Total Real Estate 19,794,874
-------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.1%
15,000 Union Pacific Corporation 1,727,250
- --------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 4.7%
84,500 Advanced Micro Devices, Inc., (1) 1,208,350
67,374 Altera Corporation 1,490,987
110,003 Analog Devices, Inc. 4,140,513
253,400 Applied Materials, Inc. 5,035,058
131,882 Broadcom Corporation, Class A, (1) 3,857,549
955,665 Intel Corporation 22,706,600
26,000 Intersil Holding Corporation, Class A 817,960
4,607 KLA-Tencor Corporation 253,155
55,742 Linear Technology Corporation 2,016,746
87,187 Marvell Technology Group Ltd., (1) 1,587,675
6,035 Maxim Integrated Products, Inc. 201,629
123,350 National Semiconductor Corporation 3,487,105
213,250 Texas Instruments Incorporated 8,024,598
111,960 Xilinx, Inc. 2,997,169
- --------------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 57,825,094
-------------------------------------------------------------------------------------------------------------------
SOFTWARE - 6.3%
82,841 Activision Inc., (1) 1,546,641
187,925 Adobe Systems Incorporated, (1) 7,545,189
36,736 Akamai Technologies, Inc., (1) 1,786,839
68,043 Autodesk, Inc., (1) 3,203,464
10,900 Blackboard, Inc., (1) 459,108
255,843 CNET Networks, Inc., (1) 2,095,354
1,417,340 Microsoft Corporation 41,769,010
44,240 NAVTEQ Corporation, (1) 1,873,122
671,102 Oracle Corporation, (1) 13,227,420
1,900 Red Hat, Inc., (1) 42,332
41,500 SAP AG, Sponsored ADR 2,119,405
88,788 VeriSign, Inc., (1) 2,817,243
- --------------------------------------------------------------------------------------------------------------------------------
Total Software 78,485,127
-------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 2.3%
20,800 Abercrombie & Fitch Co., Class A 1,517,984
56,354 American Eagle Outfitters, Inc. 1,446,044
88,950 Best Buy Co., Inc. 4,151,297
13,700 Cabela's Incorporated, (1) 303,181
69,800 CarMax, Inc., (1) 1,779,900
35,909 Chico's FAS, Inc., (1) 874,025
64,850 Gap, Inc. 1,238,635
191,284 Home Depot, Inc. 7,527,025
126,450 Limited Brands, Inc. 3,471,053
109,500 Lowe's Companies, Inc. 3,360,555
242,300 Pier 1 Imports, Inc. 2,057,127
106,640 Tuesday Morning Corporation 1,318,070
- --------------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 29,044,896
-------------------------------------------------------------------------------------------------------------------
</Table>
25
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.3%
188,076 New York Community Bancorp, Inc. $ 3,201,054
5,503 Thornburg Mortgage Inc. 144,069
- --------------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 3,345,123
-------------------------------------------------------------------------------------------------------------------
TOBACCO - 1.8%
221,400 Altria Group, Inc. 15,528,996
42,914 Loews Corp - Carolina Group 3,315,965
45,400 Reynolds American Inc. 2,960,080
- --------------------------------------------------------------------------------------------------------------------------------
Total Tobacco 21,805,041
-------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.4%
84,500 China Mobile Hong Kong Limited, Sponsored ADR 4,554,544
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $911,660,143) 1,229,032,041
===================================================================================================================
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.2%
$ 39,759 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 39,759,028
Corporation, dated 6/29/07, repurchase price
$39,772,281, collateralized by $33,040,000 U.S.
Treasury Bonds, 7.250%, due 8/15/22, value
$40,556,600
========== -------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $39,759,028) 39,759,028
===================================================================================================================
</Table>
<Table>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
PUT OPTIONS - 0.4%
347 NASDAQ 100 Index $ 58,122,500 8/18/07 $ 1,675 $ 131,860
431 NASDAQ 100 Index 73,270,000 8/18/07 1,700 202,570
414 NASDAQ 100 Index 68,310,000 9/22/07 1,650 285,660
422 NASDAQ 100 Index 71,740,000 9/22/07 1,700 432,550
889 S&P 500 Index 117,792,500 7/21/07 1,325 40,005
888 S&P 500 Index 119,880,000 7/21/07 1,350 75,480
867 S&P 500 Index 117,045,000 8/18/07 1,350 416,160
843 S&P 500 Index 115,912,500 8/18/07 1,375 547,950
873 S&P 500 Index 115,672,500 9/22/07 1,325 611,100
843 S&P 500 Index 113,805,000 9/22/07 1,350 750,270
798 S&P 500 Index 109,725,000 9/22/07 1,375 909,720
- --------------------------------------------------------------------------------------------------------------------------------
7,615 TOTAL PUT OPTIONS (COST $5,984,548) 1,081,275,000 4,403,325
================================================================================================================================
TOTAL INVESTMENTS (COST $957,403,719) - 102.8% 1,273,194,394
===================================================================================================================
</Table>
26
<Table>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (2.8)% (3)
(3,230) Mini-NDX 100 Index $ (60,562,500) 7/21/07 $ 187.5 $ (2,519,400)
(230) Mini-NDX 100 Index (4,370,000) 7/21/07 190.0 (133,400)
(1,830) Mini-NDX 100 Index (34,770,000) 9/22/07 190.0 (1,830,000)
(1,785) Mini-NDX 100 Index (34,361,250) 9/22/07 192.5 (1,481,550)
(182) NASDAQ 100 Index (33,670,000) 7/21/07 1,850 (1,824,550)
(34) NASDAQ 100 Index (6,375,000) 7/21/07 1,875 (264,010)
(163) NASDAQ 100 Index (30,970,000) 7/21/07 1,900 (938,065)
(354) NASDAQ 100 Index (67,260,000) 8/18/07 1,900 (2,794,830)
(173) NASDAQ 100 Index (32,870,000) 9/22/07 1,900 (1,735,190)
(1,476) S&P 500 Index (217,710,000) 7/21/07 1,475 (6,250,860)
(1,114) S&P 500 Index (171,600,000) 7/21/07 1,500 (2,785,640)
(760) S&P 500 Index (115,900,000) 7/21/07 1,525 (828,400)
(753) S&P 500 Index (111,067,000) 8/18/07 1,475 (4,243,155)
(743) S&P 500 Index (111,450,000) 8/18/07 1,500 (2,901,415)
(422) S&P 500 Index (64,335,000) 8/18/07 1,525 (1,036,010)
(703) S&P 500 Index (105,450,000) 9/22/07 1,500 (3,673,175)
- --------------------------------------------------------------------------------------------------------------------------------
(13,982) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (1,202,741,250) (35,239,650)
$41,439,788)
================================================================================================================================
OTHER ASSETS LESS LIABILITIES - 0.0% 810,241
===================================================================================================================
NET ASSETS - 100% $ 1,238,764,985
===================================================================================================================
</Table>
<Table>
(1) Non-income producing.
(2) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options Written.
ADR American Depositary Receipt.
</Table>
See accompanying notes to financial statements.
27
JLA
Nuveen Equity Premium Advantage Fund
Portfolio of INVESTMENTS
as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 98.6%
AEROSPACE & DEFENSE - 1.5%
26,400 Boeing Company $ 2,538,624
41,300 Honeywell International Inc. 2,324,364
30,100 United Technologies Corporation 2,134,993
- -----------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 6,997,981
----------------------------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS - 0.5%
33,410 United Parcel Service, Inc., Class B 2,438,930
- -----------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.0%
12,313 Southwest Airlines Co. 183,587
- -----------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS -- 0.5%
41,333 American Axle and Manufacturing Holdings Inc. 1,224,283
49,461 Cooper Tire & Rubber 1,366,113
- -----------------------------------------------------------------------------------------------------------------------------
Total Auto Components 2,590,396
----------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.5%
87,695 Ford Motor Company 826,087
19,783 General Motors Corporation 747,797
14,900 Harley-Davidson, Inc. 888,189
- -----------------------------------------------------------------------------------------------------------------------------
Total Automobiles 2,462,073
----------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.8%
39,700 Coca-Cola Company 2,076,707
28,800 PepsiCo, Inc. 1,867,680
- -----------------------------------------------------------------------------------------------------------------------------
Total Beverages 3,944,387
----------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 3.4%
63,255 Amgen Inc., (1) 3,497,369
67,600 Biogen Idec Inc., (1) 3,616,600
12,500 Cephalon, Inc., (1) 1,004,875
31,099 Genzyme Corporation, (1) 2,002,776
158,920 Gilead Sciences, Inc., (1) 6,161,328
3,000 Sepracor Inc., (1) 123,060
- -----------------------------------------------------------------------------------------------------------------------------
Total Biotechnology 16,406,008
----------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.1%
22,301 Masco Corporation 634,909
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 2.9%
23,800 Bank of New York Company, Inc. 986,272
72,720 Charles Schwab Corporation 1,492,214
9,100 Goldman Sachs Group, Inc. 1,972,425
89,700 JPMorgan Chase & Co. 4,345,965
12,825 Merrill Lynch & Co., Inc. 1,071,914
35,700 Morgan Stanley 2,994,516
51,000 Waddell & Reed Financial, Inc., Class A 1,326,510
- -----------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 14,189,816
----------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.6%
12,674 Dow Chemical Company 560,444
44,813 E.I. Du Pont de Nemours and Company 2,278,293
21,574 NL Industries Inc. 216,171
- -----------------------------------------------------------------------------------------------------------------------------
Total Chemicals 3,054,908
----------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 3.4%
108,993 Bank of America Corporation 5,328,668
25,052 Commerce Bancorp, Inc. 926,673
19,882 Fifth Third Bancorp 790,707
38,433 FirstMerit Corporation 804,403
73,513 Lloyds TSB Group PLC, Sponsored ADR 3,287,501
</Table>
28
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
63,800 U.S. Bancorp $ 2,102,210
34,900 Wachovia Corporation 1,788,625
40,776 Wells Fargo & Company 1,434,092
- -----------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 16,462,879
----------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 2.8%
32,440 Automatic Data Processing, Inc. 1,572,367
23,755 CheckFree Corp., (1) 954,951
4,940 Corporate Executive Board Company 320,655
32,672 Deluxe Corporation 1,326,810
7,816 Global Payments Inc. 309,904
11,893 ITT Educational Services, Inc., (1) 1,396,000
20,400 Manpower Inc. 1,881,696
61,190 Paychex, Inc. 2,393,753
29,775 Pitney Bowes Inc. 1,394,066
24,714 R.R. Donnelley & Sons Company 1,075,306
42,188 ServiceMaster Company 652,226
- -----------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 13,277,734
----------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 7.8%
459,280 Cisco Systems, Inc., (1) 12,790,948
33,878 Comverse Technology, Inc., (1) 706,356
59,568 Corning Incorporated, (1) 1,521,962
29,400 Harris Corporation 1,603,770
13,075 JDS Uniphase Corporation, (1) 175,597
15,830 Motorola, Inc. 280,191
358,500 QUALCOMM Inc. 15,555,315
24,399 Research In Motion Limited, (1) 4,879,556
- -----------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 37,513,695
----------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 8.5%
218,498 Apple, Inc., (1) 26,665,496
100,200 Hewlett-Packard Company 4,470,924
43,935 International Business Machines Corporation (IBM) 4,624,159
23,041 McAfee Inc., (1) 811,043
7,245 NCR Corporation, (1) 380,652
58,920 Network Appliance, Inc., (1) 1,720,464
21,943 SanDisk Corporation, (1) 1,073,890
242,000 Sun Microsystems Inc., (1) 1,272,920
- -----------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 41,019,548
----------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.2%
18,900 American Express Company 1,156,302
----------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.5%
43,903 Packaging Corp. of America 1,111,185
24,900 Sonoco Products Company 1,065,969
- -----------------------------------------------------------------------------------------------------------------------------
Total Containers & Packaging 2,177,154
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 1.9%
4,400 Chicago Mercantile Exchange Holdings Inc., Class A 2,351,184
108,876 Citigroup Inc. 5,584,250
20,000 Moody's Corporation 1,244,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 9,179,434
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.6%
220,695 AT&T Inc. 9,158,843
25,414 Chunghwa Telecom Co., Ltd., Sponsored ADR 479,308
72,955 Citizens Communications Company 1,114,023
11,127 France Telecom SA 305,770
31,090 Verizon Communications Inc. 1,279,975
- -----------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 12,337,919
----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.6%
21,600 Exelon Corporation 1,568,160
30,400 OGE Energy Corp. 1,114,160
- -----------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 2,682,320
----------------------------------------------------------------------------------------------------------------
</Table>
29
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.2%
26,000 Cooper Industries, Ltd., Class A $ 1,484,340
59,800 Emerson Electric Co. 2,798,640
13,500 Hubbell Incorporated, Class B 731,970
13,700 Rockwell Automation, Inc. 951,328
- -----------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 5,966,278
----------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0%
17,182 Agilent Technologies, Inc., (1) 660,476
26,404 Amphenol Corporation, Class A 941,303
13,259 Diebold Inc. 692,120
48,857 Gentex Corporation 961,994
18,868 Roper Industries Inc. 1,077,363
177,201 Solectron Corporation, (1) 652,100
- -----------------------------------------------------------------------------------------------------------------------------
Total Electronic Equipment & Instruments 4,985,356
----------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.4%
15,200 Cooper Cameron Corporation, (1) 1,086,344
19,059 Diamond Offshore Drilling, Inc. 1,935,632
52,800 Halliburton Company 1,821,600
34,200 Smith International, Inc. 2,005,488
- -----------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 6,849,064
----------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 1.1%
43,162 CVS Caremark Corporation 1,573,255
10,816 Kroger Co. 304,254
23,562 SUPERVALU INC. 1,091,392
51,700 Wal-Mart Stores, Inc. 2,487,287
- -----------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 5,456,188
----------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 1.0%
9,285 Chiquita Brands International Inc. 176,044
47,193 Kraft Foods Inc. 1,663,553
27,800 Monsanto Company 1,877,612
64,658 Sara Lee Corporation 1,125,049
- -----------------------------------------------------------------------------------------------------------------------------
Total Food Products 4,842,258
----------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.6%
47,295 Nicor Inc. 2,029,901
26,700 Piedmont Natural Gas Company 658,155
- -----------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 2,688,056
----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.2%
33,800 Applera Corporation-Applied Biosystems Group 1,032,252
34,700 Baxter International Inc. 1,954,998
19,890 Boston Scientific Corporation, (1) 305,113
3,702 Intuitive Surgical, Inc., (1) 513,727
6,899 Medtronic, Inc. 357,782
19,174 St. Jude Medical Inc., (1) 795,529
12,487 Zimmer Holdings, Inc., (1) 1,060,021
- -----------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 6,019,422
----------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.9%
11,349 Medco Health Solutions, Inc., (1) 885,109
26,237 UnitedHealth Group Incorporated 1,341,760
11,200 Universal Health Services, Inc., Class B 688,800
16,293 Wellpoint Inc., (1) 1,300,670
- -----------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 4,216,339
----------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 2.3%
18,429 Carnival Corporation 898,782
9,154 Harrah's Entertainment, Inc. 780,470
26,904 International Game Technology 1,068,089
45,500 McDonald's Corporation 2,309,580
137,420 Starbucks Corporation, (1) 3,605,901
15,700 Starwood Hotels & Resorts Worldwide, Inc. 1,052,999
</Table>
30
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (continued)
27,491 Tim Hortons Inc. $ 845,348
20,300 Wendy's International, Inc. 746,025
- -----------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 11,307,194
----------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.6%
24,388 Leggett and Platt Inc. 537,755
38,500 Newell Rubbermaid Inc. 1,133,055
12,700 Whirlpool Corporation 1,412,240
- -----------------------------------------------------------------------------------------------------------------------------
Total Household Durables 3,083,050
----------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 1.0%
76,495 Procter & Gamble Company 4,680,729
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 2.1%
13,364 3M Co. 1,159,862
14,536 American Standard Companies Inc. 857,333
158,640 General Electric Company 6,072,739
17,994 Genuine Parts Company 892,502
37,342 Tyco International Ltd. 1,261,786
- -----------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 10,244,222
----------------------------------------------------------------------------------------------------------------
INSURANCE - 2.0%
15,228 AFLAC Incorporated 782,719
64,270 American International Group, Inc. 4,500,828
34,260 Fidelity National Title Group Inc., Class A 811,962
30,179 Marsh & McLennan Companies, Inc. 931,928
14,360 Prudential Financial, Inc. 1,396,223
18,473 Travelers Companies, Inc. 988,306
- -----------------------------------------------------------------------------------------------------------------------------
Total Insurance 9,411,966
----------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 1.1%
52,639 Amazon.com, Inc., (1) 3,601,034
52,220 IAC/InterActiveCorp., (1) 1,807,334
- -----------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 5,408,368
----------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 3.7%
44,756 Earthlink, Inc., (1) 334,327
93,739 eBay Inc., (1) 3,016,521
25,023 Google Inc., Class A, (1) 13,096,538
7,385 NIC, Incorporated 50,513
43,727 United Online, Inc. 721,058
27,105 Yahoo! Inc., (1) 735,359
- -----------------------------------------------------------------------------------------------------------------------------
Total Internet Software & Services 17,954,316
----------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.7%
41,600 Electronic Data Systems Corporation 1,153,568
17,573 Fidelity National Information Services 953,862
17,800 First Data Corporation 581,526
13,150 Infosys Technologies Limited, Sponsored ADR 662,497
- -----------------------------------------------------------------------------------------------------------------------------
Total IT Services 3,351,453
----------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.1%
26,523 Eastman Kodak Company 738,135
- -----------------------------------------------------------------------------------------------------------------------------
MACHINERY - 1.5%
29,600 Caterpillar Inc. 2,317,680
8,459 Danaher Corporation 638,655
15,700 Eaton Corporation 1,460,100
18,700 Graco Inc. 753,236
21,330 SPX Corporation 1,872,987
- -----------------------------------------------------------------------------------------------------------------------------
Total Machinery 7,042,658
----------------------------------------------------------------------------------------------------------------
MEDIA - 3.3%
102,787 Citadel Broadcasting Corporation 662,976
32,300 Clear Channel Communications, Inc. 1,221,586
233,522 Comcast Corporation, Special Class A, (1) 6,529,275
1,638 Idearc Inc. 57,871
20,333 Monster Worldwide Inc., (1) 835,686
</Table>
31
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
36,179 New York Times, Class A $ 918,947
62,500 News Corporation, Class A 1,325,625
22,800 Omnicom Group Inc. 1,206,576
3,757 RCN Corporation, (1) 70,594
65,946 Regal Entertainment Group, Class A 1,446,196
36,300 Walt Disney Company 1,239,282
62,910 Westwood One, Inc., (1) 452,323
- -----------------------------------------------------------------------------------------------------------------------------
Total Media 15,966,937
----------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.9%
56,000 Companhia Siderurgica Nacional S.A., Sponsored ADR 2,896,320
2,736 Freeport-McMoRan Copper & Gold, Inc. 226,596
14,778 Southern Copper Corporation 1,392,974
- -----------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 4,515,890
----------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 1.0%
10,616 Dollar General Corporation 232,703
23,653 Federated Department Stores, Inc. 940,916
17,000 J.C. Penney Company, Inc. 1,230,460
12,639 Kohl's Corporation, (1) 897,748
8,597 Sears Holding Corporation, (1) 1,457,192
- -----------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 4,759,019
----------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.4%
61,600 Duke Energy Corporation 1,127,280
15,502 Integrys Energy Group, Inc. 786,416
26 National Grid PLC, Sponsored ADR 1,918
- -----------------------------------------------------------------------------------------------------------------------------
Total Multi-Utilities 1,915,614
----------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 4.3%
70,620 Chevron Corporation 5,949,029
28,900 ConocoPhillips 2,268,650
139,529 Exxon Mobil Corporation 11,703,693
16,092 Norsk Hydro ASA 615,841
- -----------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 20,537,213
----------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.1%
6,887 Bowater Incorporated 171,831
23,723 International Paper Company 926,383
- -----------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 1,098,214
----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 5.3%
35,730 Abbott Laboratories 1,913,342
77,186 Bristol-Myers Squibb Company 2,435,990
58,800 Celgene Corporation, (1) 3,371,004
29,208 Eli Lilly and Company 1,632,143
9,155 GlaxoSmithKline PLC, ADR 479,447
42,743 Johnson & Johnson 2,633,824
99,822 Merck & Co. Inc. 4,971,136
182,940 Pfizer Inc. 4,677,776
33,686 Schering-Plough Corporation 1,025,402
39,006 Wyeth 2,236,604
- -----------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 25,376,668
----------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.9%
30,269 Healthcare Realty Trust, Inc. 840,873
9,611 Host Hotels & Resorts Inc. 222,206
38,339 Lexington Corporate Properties Trust 797,451
51,777 Nationwide Health Properties, Inc. 1,408,334
41,422 Senior Housing Properties Trust 842,938
- -----------------------------------------------------------------------------------------------------------------------------
Total Real Estate 4,111,802
----------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.3%
17,500 Burlington Northern Santa Fe Corporation 1,489,950
----------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 6.1%
54,763 Altera Corporation 1,211,905
14,165 Analog Devices, Inc. 533,171
</Table>
32
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT (continued)
109,780 Applied Materials, Inc. $ 2,181,329
66,600 Broadcom Corporation, Class A, (1) 1,948,050
18,900 Cymer, Inc., (1) 759,780
47,717 Cypress Semiconductor Corporation, (1) 1,111,329
39,437 Fairchild Semiconductor International Inc., Class A, (1) 761,923
46,242 Integrated Device Technology, Inc., (1) 706,115
5,434 International Rectifier Corporation, (1) 202,471
20,531 Intersil Holding Corporation, Class A 645,905
20,150 KLA-Tencor Corporation 1,107,243
70,275 Linear Technology Corporation 2,542,550
96,703 LSI Logic Corporation, (1) 726,240
12,210 Marvell Technology Group Ltd., (1) 222,344
80,150 Maxim Integrated Products, Inc. 2,677,812
73,000 Micron Technology, Inc., (1) 914,690
52,100 National Semiconductor Corporation 1,472,867
27,401 Novellus Systems, Inc., (1) 777,366
56,690 NVIDIA Corporation, (1) 2,341,864
21,817 PMC-Sierra, Inc., (1) 168,645
110,442 Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR 1,229,223
13,849 Tessera Technologies Inc., (1) 561,577
79,714 Texas Instruments Incorporated 2,999,638
33,502 Varian Semiconductor Equipment Associate, (1) 1,342,090
2,103 Verigy Limited, (1) 60,167
- -----------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 29,206,294
----------------------------------------------------------------------------------------------------------------
SOFTWARE - 9.5%
60,364 Activision Inc., (1) 1,126,996
91,430 Adobe Systems Incorporated, (1) 3,670,915
28,460 Akamai Technologies, Inc., (1) 1,384,294
27,918 Autodesk, Inc., (1) 1,314,379
61,885 BEA Systems, Inc., (1) 847,206
27,633 CA Inc. 713,760
74,410 Cadence Design Systems, Inc., (1) 1,634,044
62,757 CNET Networks, Inc., (1) 513,980
741,380 Microsoft Corporation 21,848,469
8,453 NAVTEQ Corporation, (1) 357,900
490,178 Oracle Corporation, (1) 9,661,408
8,038 SAP AG, Sponsored ADR 410,501
38,088 Satyam Computer Services Limited, ADR 943,059
40,834 VeriSign, Inc., (1) 1,295,663
- -----------------------------------------------------------------------------------------------------------------------------
Total Software 45,722,574
----------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 1.9%
28,650 Best Buy Co., Inc. 1,337,096
50,492 Gap, Inc. 964,397
44,771 Home Depot, Inc. 1,761,739
40,900 Limited Brands, Inc. 1,122,705
30,400 Lowe's Companies, Inc. 932,976
53,164 Pier 1 Imports, Inc. 451,362
6,115 RadioShack Corporation 202,651
28,938 TJX Companies, Inc. 795,795
43,412 Tuesday Morning Corporation 536,572
37,616 Urban Outfitters, Inc., (1) 903,912
- -----------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 9,009,205
----------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
4,769 Federal National Mortgage Association 311,561
- -----------------------------------------------------------------------------------------------------------------------------
TOBACCO - 1.1%
68,196 Altria Group, Inc. 4,783,267
12,882 Vector Group Ltd. 290,231
- -----------------------------------------------------------------------------------------------------------------------------
Total Tobacco 5,073,498
----------------------------------------------------------------------------------------------------------------
</Table>
33
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.8%
46,400 China Mobile Hong Kong Limited, Sponsored ADR $ 2,500,960
5,800 iPCS Inc. 196,446
36,448 Vodafone Group PLC, Sponsored ADR 1,225,746
- -----------------------------------------------------------------------------------------------------------------------------
Total Wireless Telecommunication Services 3,923,152
----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $343,009,368) 475,972,623
================================================================================================================
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.9%
$ 18,964 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 18,964,322
Corporation, dated 6/29/07, repurchase price
$18,970,643, collateralized by $15,760,000 U.S.
Treasury Bonds, 7.250%, due 8/15/22, value
$19,345,400
========== ----------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $18,964,322) 18,964,322
================================================================================================================
<Caption>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- --------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS - 0.4%
287 NASDAQ 100 Index $ 48,072,500 8/18/07 $ 1,675 $ 109,060
326 NASDAQ 100 Index 55,420,000 8/18/07 1,700 153,220
308 NASDAQ 100 Index 50,820,000 9/22/07 1,650 212,520
318 NASDAQ 100 Index 54,060,000 9/22/07 1,700 325,950
217 S&P 500 Index 28,752,500 7/21/07 1,325 9,765
239 S&P 500 Index 32,265,000 7/21/07 1,350 20,315
224 S&P 500 Index 30,240,000 8/18/07 1,350 107,520
224 S&P 500 Index 30,800,000 8/18/07 1,375 145,600
236 S&P 500 Index 31,270,000 9/22/07 1,325 165,200
225 S&P 500 Index 30,375,000 9/22/07 1,350 200,250
199 S&P 500 Index 27,362,500 9/22/07 1,375 226,860
- --------------------------------------------------------------------------------------------------------------------------------
2,803 TOTAL PUT OPTIONS (COST $2,238,728) 419,437,500 1,676,260
================================================================================================================================
TOTAL INVESTMENTS (COST $364,212,418) - 102.9% 496,613,205
=================================================================================================================
</Table>
<Table>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (3.3)% (3)
(230) Mini-NDX 100 Index $ (4,255,000) 7/21/07 $185.0 $ (230,000)
(1,460) Mini-NDX 100 Index (27,375,000) 7/21/07 187.5 (1,138,800)
(780) Mini-NDX 100 Index (14,820,000) 7/21/07 190.0 (452,400)
(200) Mini-NDX 100 Index (3,800,000) 8/18/07 190.0 (158,000)
(460) Mini-NDX 100 Index (8,740,000) 9/22/07 190.0 (460,000)
(1,050) Mini-NDX 100 Index (20,212,500) 9/22/07 192.5 (871,500)
(143) NASDAQ 100 Index (26,455,000) 7/21/07 1,850 (1,433,575)
(128) NASDAQ 100 Index (24,000,000) 7/21/07 1,875 (993,920)
(52) NASDAQ 100 Index (9,880,000) 7/21/07 1,900 (299,260)
(263) NASDAQ 100 Index (49,970,000) 8/18/07 1,900 (2,076,385)
(235) NASDAQ 100 Index (44,650,000) 9/22/07 1,900 (2,357,050)
(381) S&P 500 Index (56,197,500) 7/21/07 1,475 (1,613,535)
(303) S&P 500 Index (45,450,000) 7/21/07 1,500 (737,805)
(200) S&P 500 Index (30,500,000) 7/21/07 1,525 (218,000)
(215) S&P 500 Index (31,712,500) 8/18/07 1,475 (1,211,525)
(181) S&P 500 Index (27,150,000) 8/18/07 1,500 (706,805)
(100) S&P 500 Index (15,250,000) 8/18/07 1,525 (245,500)
(184) S&P 500 Index (27,600,000) 9/22/07 1,500 (961,400)
- --------------------------------------------------------------------------------------------------------------------------------
(6,565) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (468,017,500) (16,165,460)
$16,821,998)
================================================================================================================================
OTHER ASSETS LESS LIABILITIES - 0.4% 2,099,161
===================================================================================================================
NET ASSETS - 100% $ 482,546,906
===================================================================================================================
</Table>
<Table>
(1) Non-income producing.
(2) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options Written.
ADR American Depositary Receipt.
</Table>
See accompanying notes to financial statements.
34
JPG
Nuveen Equity Premium and Growth Fund
Portfolio of INVESTMENTS
as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.0%
AEROSPACE & DEFENSE - 1.8%
20,500 Boeing Company $ 1,971,280
4,500 Goodrich Corporation 268,020
33,500 Honeywell International Inc. 1,885,380
23,900 United Technologies Corporation 1,695,227
- --------------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 5,819,907
-------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS - 0.6%
28,200 United Parcel Service, Inc., Class B 2,058,600
- --------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.1%
5,400 AMR Corporation-DEL, (1) 142,290
9,600 Continental Airlines, Inc., (1) 325,152
- --------------------------------------------------------------------------------------------------------------------------------
Total Airlines 467,442
-------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.2%
24,800 American Axle and Manufacturing Holdings Inc. 734,576
9,310 Cooper Tire & Rubber 257,142
- --------------------------------------------------------------------------------------------------------------------------------
Total Auto Components 991,718
-------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.4%
35,600 General Motors Corporation 1,345,680
2,500 Harley-Davidson, Inc. 149,025
- --------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 1,494,705
-------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.6%
35,500 Coca-Cola Company 1,857,005
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 3.2%
35,000 Charles Schwab Corporation 718,200
8,500 Goldman Sachs Group, Inc. 1,842,375
104,500 JPMorgan Chase & Co. 5,063,025
31,000 Morgan Stanley 2,600,280
18,800 Waddell & Reed Financial, Inc., Class A 488,988
- --------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 10,712,868
-------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.8%
1,000 Chemtura Corporation 11,110
51,000 Dow Chemical Company 2,255,220
38,955 E.I. Du Pont de Nemours and Company 1,980,472
2,700 Eastman Chemical Company 173,691
3,000 Lyondell Chemical Company 111,360
14,000 Olin Corporation 294,000
13,000 PPG Industries, Inc. 989,430
8,000 RPM International, Inc. 184,880
- --------------------------------------------------------------------------------------------------------------------------------
Total Chemicals 6,000,163
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 7.2%
167,515 Bank of America Corporation 8,189,808
8,000 Comerica Incorporated 475,760
9,000 Federated Investors Inc. 344,970
48,000 FirstMerit Corporation 1,004,640
27,720 HSBC Holdings PLC, Sponsored ADR 2,543,864
34,000 Lloyds TSB Group PLC, Sponsored ADR 1,520,480
18,800 National City Corporation 626,416
15,493 Regions Financial Corporation 512,818
91,383 U.S. Bancorp 3,011,070
32,118 Wachovia Corporation 1,646,048
</Table>
35
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
9,600 Washington Mutual, Inc. $ 409,344
98,100 Wells Fargo & Company 3,450,177
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 23,735,395
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 1.4%
23,000 Automatic Data Processing, Inc. 1,114,810
1,400 Avery Dennison Corporation 93,072
46,100 Deluxe Corporation 1,872,121
1,000 Robert Half International Inc. 36,500
86,500 ServiceMaster Company 1,337,290
6,000 Standard Register Company 68,400
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 4,522,193
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 1.3%
11,321 Alcatel SA 158,494
119,800 Cisco Systems, Inc., (1) 3,336,430
21,452 Corning Incorporated, (1) 548,099
1,000 Plantronics Inc. 26,220
3,291 QUALCOMM Inc. 142,796
- --------------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 4,212,039
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 2.6%
15,467 Apple, Inc., (1) 1,887,593
12,000 Dell Inc., (1) 342,600
25,000 EMC Corporation, (1) 452,500
65,500 Hewlett-Packard Company 2,922,610
27,500 International Business Machines Corporation 2,894,375
(IBM)
- --------------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 8,499,678
-------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.1%
21,200 Packaging Corp. of America 536,572
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 3.0%
66,000 Capitalsource Inc. 1,622,940
1,500 Chicago Mercantile Exchange Holdings Inc., Class 801,540
A
140,929 Citigroup Inc. 7,228,248
4,000 Federal Home Loan Mortgage Corporation 242,800
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 9,895,528
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.2%
4,000 Alaska Communications Systems Group Inc. 63,360
139,200 AT&T Inc. 5,776,800
104,800 Citizens Communications Company 1,600,296
3,700 Compania Anonima Nacional Telefonos de Venezuela 36,486
15,600 FairPoint Communications Inc. 276,900
2,000 France Telecom SA 54,960
27,000 Iowa Telecommunications Services, Inc. 613,710
129,500 Verizon Communications Inc. 5,331,515
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 13,754,027
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.6%
5,400 Ameren Corporation 264,654
26,500 CenterPoint Energy, Inc. 461,100
120,000 Companhia Energetica de Minas Gerais 2,532,000
13,600 Consolidated Edison, Inc. 613,632
6,000 Enel SpA, Sponsored ADR 322,200
14,700 Great Plains Energy Incorporated 428,064
8,882 Progress Energy, Inc. 404,930
3,849 TXU Corp. 259,038
- --------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 5,285,618
-------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.0%
5,000 Cooper Industries, Ltd., Class A 285,450
60,000 Emerson Electric Co. 2,808,000
</Table>
36
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (continued)
2,000 Hubbell Incorporated, Class B $ 108,440
1,000 Rockwell Automation, Inc. 69,440
- --------------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 3,271,330
-------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.1%
3,100 MEMC Electronic Materials, (1) 189,472
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.9%
12,700 Baker Hughes Incorporated 1,068,451
12,000 Carbo Ceramics Inc. 525,720
2,500 Diamond Offshore Drilling, Inc. 253,900
17,600 Halliburton Company 607,200
2,500 National-Oilwell Varco Inc., (1) 260,600
5,000 Noble Corporation 487,600
8,000 Patterson-UTI Energy, Inc. 209,680
23,514 Schlumberger Limited 1,997,279
2,000 Tidewater Inc. 141,760
7,000 Transocean Inc., (1) 741,860
- --------------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 6,294,050
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 1.2%
8,500 CVS Caremark Corporation 309,825
29,375 SUPERVALU INC. 1,360,650
38,200 Wal-Mart Stores, Inc. 1,837,802
9,000 Whole Foods Market, Inc. 344,700
- --------------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 3,852,977
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.8%
41,300 ConAgra Foods, Inc. 1,109,318
45,387 Kraft Foods Inc. 1,599,892
- --------------------------------------------------------------------------------------------------------------------------------
Total Food Products 2,709,210
-------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 1.5%
77,000 KeySpan Corporation 3,232,460
35,390 Nicor Inc. 1,518,939
12,600 Spectra Energy Corporation 327,096
- --------------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 5,078,495
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
2,700 Baxter International Inc. 152,118
29,000 Medtronic, Inc. 1,503,940
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 1,656,058
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.5%
9,973 Aetna Inc. 492,666
12,000 Health Management Associates Inc. 136,320
21,337 UnitedHealth Group Incorporated 1,091,174
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 1,720,160
-------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.9%
4,800 Harrah's Entertainment, Inc. 409,248
5,500 International Game Technology 218,350
31,900 McDonald's Corporation 1,619,244
12,813 Tim Hortons Inc. 394,000
10,200 Wendy's International, Inc. 374,850
- --------------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 3,015,692
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 1.4%
5,000 Black & Decker Corporation 441,550
1,000 D.R. Horton, Inc. 19,930
2,200 Furniture Brands International, Inc. 31,240
13,500 Kimball International Inc., Class B 189,135
1,000 La Z Boy Inc. 11,460
55,500 Newell Rubbermaid Inc. 1,633,365
12,000 Snap-on Incorporated 606,120
</Table>
37
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (continued)
13,500 Stanley Works $ 819,450
8,998 Whirlpool Corporation 1,000,578
- --------------------------------------------------------------------------------------------------------------------------------
Total Household Durables 4,752,828
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 2.0%
20,000 Kimberly-Clark Corporation 1,337,800
85,500 Procter & Gamble Company 5,231,745
- --------------------------------------------------------------------------------------------------------------------------------
Total Household Products 6,569,545
-------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 4.5%
15,600 3M Co. 1,353,924
6,700 American Standard Companies Inc. 395,166
302,676 General Electric Company 11,586,437
23,200 Genuine Parts Company 1,150,720
14,166 Tyco International Ltd. 478,669
- --------------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 14,964,916
-------------------------------------------------------------------------------------------------------------------
INSURANCE - 4.6%
20,000 Allstate Corporation 1,230,200
38,690 American International Group, Inc. 2,709,461
9,000 Arthur J. Gallagher & Co. 250,920
149,977 Fidelity National Title Group Inc., Class A 3,554,455
74,334 Lincoln National Corporation 5,273,997
13,000 Marsh & McLennan Companies, Inc. 401,440
12,600 Mercury General Corporation 694,386
16,400 Travelers Companies, Inc. 877,400
1,500 Unitrin, Inc. 73,770
- --------------------------------------------------------------------------------------------------------------------------------
Total Insurance 15,066,029
-------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.2%
14,500 Amazon.com, Inc., (1) 991,945
- --------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 2.0%
43,000 eBay Inc., (1) 1,383,740
6,400 Google Inc., Class A, (1) 3,349,632
104,600 United Online, Inc. 1,724,854
- --------------------------------------------------------------------------------------------------------------------------------
Total Internet Software & Services 6,458,226
-------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
5,374 Fidelity National Information Services 291,701
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.5%
5,000 Brunswick Corporation 163,150
2,000 Eastman Kodak Company 55,660
39,200 Mattel, Inc. 991,368
8,000 Polaris Industries Inc. 433,280
- --------------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 1,643,458
-------------------------------------------------------------------------------------------------------------------
MACHINERY - 1.7%
25,000 Briggs & Stratton Corporation 789,000
30,000 Caterpillar Inc. 2,349,000
5,100 Deere & Company 615,774
11,000 Illinois Tool Works Inc. 596,090
19,000 Ingersoll Rand Company Limited, Class A 1,041,580
3,000 Pentair, Inc. 115,710
10,500 Volvo AB 208,845
- --------------------------------------------------------------------------------------------------------------------------------
Total Machinery 5,715,999
-------------------------------------------------------------------------------------------------------------------
MEDIA - 2.1%
105,000 Citadel Broadcasting Corporation 677,250
1,500 Clear Channel Communications, Inc. 56,730
17,600 Dow Jones & Company, Inc. 1,011,120
55,700 Entrcom Communications Corporation 1,386,373
39,000 New York Times, Class A 990,600
500 Reed Elsevier NV, Sponsored ADR 18,960
</Table>
38
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
76,486 Regal Entertainment Group, Class A $ 1,677,338
99,500 Westwood One, Inc., (1) 715,405
18,500 World Wrestling Entertainment Inc. 295,815
- --------------------------------------------------------------------------------------------------------------------------------
Total Media 6,829,591
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 2.3%
38,104 Companhia Siderurgica Nacional S.A., Sponsored ADR 1,970,739
763 Freeport-McMoRan Copper & Gold, Inc. 63,192
57,336 Southern Copper Corporation 5,404,491
- --------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 7,438,422
-------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.7%
18,000 Dollar General Corporation 394,560
19,200 Federated Department Stores, Inc. 763,776
5,500 J.C. Penney Company, Inc. 398,090
12,800 Nordstrom, Inc. 654,336
- --------------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 2,210,762
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 1.5%
1,450 Dominion Resources, Inc. 125,150
76,000 Duke Energy Corporation 1,390,800
58,575 Integrys Energy Group, Inc. 2,971,510
10,500 ONEOK, Inc. 529,305
- --------------------------------------------------------------------------------------------------------------------------------
Total Multi-Utilities 5,016,765
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 9.4%
68,900 Chevron Corporation 5,804,136
17,026 ConocoPhillips 1,336,541
185,000 Exxon Mobil Corporation 15,517,801
3,600 Frontline Limited 165,060
12,800 General Maritime Corporation, (1) 342,784
15,600 Marathon Oil Corporation 935,376
141,559 Norsk Hydro ASA 5,417,463
24,500 Occidental Petroleum Corporation 1,418,060
385 Ship Financial International Limited 11,427
3,000 YPF Sociedad Anonima 135,600
- --------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 31,084,248
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 1.0%
11,000 Bowater Incorporated 274,450
8,500 International Paper Company 331,925
32,400 Weyerhaeuser Company 2,557,332
- --------------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 3,163,707
-------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.2%
23,000 Avon Products, Inc. 845,250
- --------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 9.5%
65,000 Abbott Laboratories 3,480,750
146,264 Bristol-Myers Squibb Company 4,616,092
31,132 Eli Lilly and Company 1,739,656
89,900 Johnson & Johnson 5,539,638
140,500 Merck & Co. Inc. 6,996,900
288,500 Pfizer Inc. 7,376,945
30,500 Wyeth 1,748,870
- --------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 31,498,851
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 2.8%
9,700 American Home Mortgage Investment Corp. (4) 178,286
60,671 Apartment Investment & Management Company, Class A 3,059,032
2,800 Colonial Properties Trust 102,060
57,500 Healthcare Realty Trust, Inc. 1,597,350
47,000 Hospitality Properties Trust 1,950,030
17,500 Lexington Corporate Properties Trust 364,000
</Table>
39
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE (continued)
53,300 Nationwide Health Properties, Inc. $ 1,449,760
20,000 Senior Housing Properties Trust 407,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Real Estate 9,107,518
-------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.5%
39,500 CSX Corporation 1,780,660
- --------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 3.2%
47,000 Analog Devices, Inc. 1,769,080
11,500 Applied Materials, Inc. 228,505
185,873 Intel Corporation 4,416,342
44,000 Maxim Integrated Products, Inc. 1,470,040
30,600 Microchip Technology Incorporated 1,133,424
13,400 NVIDIA Corporation, (1) 553,554
84,654 Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR 942,199
- --------------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 10,513,144
-------------------------------------------------------------------------------------------------------------------
SOFTWARE - 3.5%
7,700 Adobe Systems Incorporated, (1) 309,155
25,180 InfoSpace, Inc. 584,428
273,500 Microsoft Corporation 8,060,045
9,000 NAVTEQ Corporation, (1) 381,060
99,976 Oracle Corporation, (1) 1,970,527
3,500 Salesforce.com, Inc., (1) 150,010
- --------------------------------------------------------------------------------------------------------------------------------
Total Software 11,455,225
-------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 2.3%
6,450 Abercrombie & Fitch Co., Class A 470,721
25,500 American Eagle Outfitters, Inc. 654,330
17,000 Best Buy Co., Inc. 793,390
7,000 Chico's FAS, Inc., (1) 170,380
14,151 Gap, Inc. 270,284
26,987 Home Depot, Inc. 1,061,938
30,700 Limited Brands, Inc. 842,715
24,225 Lowe's Companies, Inc. 743,465
42,000 Pier 1 Imports, Inc. 356,580
12,000 RadioShack Corporation 397,680
7,300 Sherwin-Williams Company 485,231
6,000 Talbots, Inc. 150,180
1,000 Tiffany & Co. 53,060
12,000 TJX Companies, Inc. 330,000
58,000 Tuesday Morning Corporation 716,880
- --------------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 7,496,834
-------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.7%
702 Cherokee Inc. 25,651
20,000 VF Corporation 1,831,600
55,718 Xerium Technologies, Inc. 424,571
- --------------------------------------------------------------------------------------------------------------------------------
Total Textiles, Apparel & Luxury Goods 2,281,822
-------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.9%
18,900 Federal National Mortgage Association 1,234,737
4,289 IndyMac Bancorp, Inc. 125,110
88,000 New York Community Bancorp, Inc. 1,497,760
- --------------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 2,857,607
-------------------------------------------------------------------------------------------------------------------
TOBACCO - 2.3%
65,586 Altria Group, Inc. 4,600,202
3,000 Reynolds American Inc. 195,600
30,000 UST Inc. 1,611,300
47,422 Vector Group Ltd. 1,068,418
- --------------------------------------------------------------------------------------------------------------------------------
Total Tobacco 7,475,520
-------------------------------------------------------------------------------------------------------------------
</Table>
40
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
1,000 W.W. Grainger, Inc. $ 93,050
- --------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.6%
22,351 iPCS Inc. 757,028
4,000 SK Telecom Company Limited 109,400
32,000 Vodafone Group PLC, Sponsored ADR 1,076,160
- --------------------------------------------------------------------------------------------------------------------------------
Total Wireless Telecommunication Services 1,942,588
-------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $261,807,843) 327,177,113
===================================================================================================================
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.5%
$ 8,248 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 8,248,235
Corporation, dated 6/29/07, repurchase price
$8,250,984, collateralized by $6,855,000 U.S.
Treasury Bonds, 7.250%, due 8/15/22, value
$8,414,513
========== -------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $8,248,235) 8,248,235
===================================================================================================================
<Caption>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS - 0.3%
243 S&P 500 Index $ 32,197,500 7/21/07 $1,325 $ 10,935
263 S&P 500 Index 35,505,000 7/21/07 1,350 22,355
257 S&P 500 Index 34,695,000 8/18/07 1,350 123,360
237 S&P 500 Index 32,587,000 8/18/07 1,375 154,050
266 S&P 500 Index 35,245,000 9/22/07 1,325 186,200
237 S&P 500 Index 31,955,000 9/22/07 1,350 210,930
231 S&P 500 Index 31,762,000 9/22/07 1,375 263,340
- -----------------------------------------------------------------------------------------------------------------------------------
1,734 TOTAL PUT OPTIONS (COST $1,347,058) 233,987,500 971,170
===================================================================================================================================
TOTAL INVESTMENTS (COST $271,403,136) - 101.8% 336,396,518
====================================================================================================================
</Table>
<Table>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (1.9)% (3)
(433) S&P 500 Index $ (63,687,500) 7/21/07 $1,475 $ (1,833,755)
(319) S&P 500 Index (47,850,000) 7/21/07 1,500 (776,765)
(219) S&P 500 Index (33,397,500) 7/21/07 1,525 (238,710)
(219) S&P 500 Index (32,302,500) 8/18/07 1,475 (1,234,065)
(218) S&P 500 Index (32,700,000) 8/18/07 1,500 (851,290)
(117) S&P 500 Index (17,842,500) 8/18/07 1,525 (287,235)
(209) S&P 500 Index (31,350,000) 9/22/07 1,500 (1,092,025)
- --------------------------------------------------------------------------------------------------------------------------------
(1,734) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (259,310,000) (6,313,845)
$8,559,115)
================================================================================================================================
OTHER ASSETS LESS LIABILITIES - 0.1% 343,991
===================================================================================================================
NET ASSETS - 100% $ 330,426,664
===================================================================================================================
</Table>
<Table>
(1) Non-income producing.
(2) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options Written.
(4) At or subsequent to June 30, 2007, this issue was under the protection of the Federal
Bankruptcy Court.
ADR American Depositary Receipt.
</Table>
See accompanying notes to financial statements.
41
Statement of
ASSETS & LIABILITIES
June 30, 2007 (Unaudited)
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $550,700,998, $957,403,719,
$364,212,418 and $271,403,136, respectively) $737,914,311 $1,273,194,394 $496,613,205 $336,396,518
Receivables:
Dividends 1,089,860 1,639,613 502,243 607,269
Interest 7,758 8,835 4,214 1,833
Investments sold -- -- 1,981,396 --
Reclaims 296 11,148 2,084 4,253
Other assets 30,200 43,510 17,059 11,137
- --------------------------------------------------------------------------------------------------------------------------------
Total assets 739,042,425 1,274,897,500 499,120,201 337,021,010
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Call options written, at value (premiums received
$22,787,880, $41,439,788, $16,821,998 and $8,559,115,
respectively) 16,774,080 35,239,650 16,165,460 6,313,845
Accrued expenses:
Management fees 343,722 576,694 273,149 236,248
Other 184,235 316,171 134,686 44,253
- --------------------------------------------------------------------------------------------------------------------------------
Total liabilities 17,302,037 36,132,515 16,573,295 6,594,346
- --------------------------------------------------------------------------------------------------------------------------------
Net assets $721,740,388 $1,238,764,985 $482,546,906 $330,426,664
================================================================================================================================
Shares outstanding 38,682,087 66,537,837 26,021,407 16,536,342
================================================================================================================================
Net asset value per share outstanding $ 18.66 $ 18.62 $ 18.54 $ 19.98
================================================================================================================================
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 386,821 $ 665,378 $ 260,214 $ 165,363
Paid-in surplus 638,807,398 1,104,367,017 436,632,659 298,627,565
Undistributed (Over-distribution of) net investment income (24,240,841) (47,509,767) (20,494,134) (8,892,014)
Accumulated net realized gain (loss) from investments and
call options written (86,440,103) (140,748,456) (66,909,158) (26,712,902)
Net unrealized appreciation (depreciation) of investments
and call options written 193,227,113 321,990,813 133,057,325 67,238,652
- --------------------------------------------------------------------------------------------------------------------------------
Net assets $721,740,388 $1,238,764,985 $482,546,906 $330,426,664
================================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited
================================================================================================================================
</Table>
See accompanying notes to financial statements.
42
Statement of
OPERATIONS
Six months ended June 30, 2007
(Unaudited)
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $0, $32,166,
$15,259 and $23,461, respectively) $ 10,101,795 $ 14,003,077 $ 4,283,316 $ 5,628,064
Interest 876,510 1,373,020 602,823 361,487
- ------------------------------------------------------------------------------------------------------------------------------
Total investment income $ 10,978,305 $ 15,376,097 $ 4,886,139 $ 5,989,551
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 3,133,708 5,263,641 2,100,629 1,403,662
Shareholders' servicing agent fees and expenses 86 134 -- 31
Custodian's fees and expenses 58,435 101,615 41,130 28,516
Trustees' fees and expenses 16,030 25,740 10,298 6,581
Professional fees 18,962 28,426 15,602 13,869
Shareholders' reports - printing and mailing expenses 43,865 81,322 26,966 6,901
Stock exchange listing fees 7,135 12,584 4,777 4,777
Investor relations expense 60,538 100,111 38,781 23,396
Other expenses 53,541 124,775 84,003 13,132
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 3,392,300 5,738,348 2,322,186 1,500,865
Custodian fee credit (17,201) (29,724) (9,978) (5,579)
Expense reimbursement (1,073,524) (1,827,817) (475,578) --
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,301,575 3,880,807 1,836,630 1,495,286
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 8,676,730 11,495,290 3,049,509 4,494,265
- ------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (3,715,359) (13,278,735) (4,856,158) (482,033)
Call options written (18,836,836) (19,996,302) (3,730,620) (6,529,482)
Change in net unrealized appreciation (depreciation) of:
Investments 41,213,458 95,430,336 37,985,530 19,173,632
Call options written 8,084,565 2,389,033 (3,769,037) 2,984,525
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 26,745,828 64,544,332 25,629,715 15,146,642
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 35,422,558 $ 76,039,622 $28,679,224 $19,640,907
==============================================================================================================================
</Table>
See accompanying notes to financial statements.
43
Statement of
CHANGES in NET ASSETS
(Unaudited)
<Table>
<Caption>
EQUITY PREMIUM EQUITY PREMIUM
INCOME (JPZ) OPPORTUNITY (JSN)
----------------------------- ----------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
6/30/07 12/31/06 6/30/07 12/31/06
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,676,730 $ 16,326,681 $ 11,495,290 $ 20,798,722
Net realized gain (loss) from:
Investments (3,715,359) (21,102,851) (13,278,735) (39,977,281)
Call options written (18,836,836) (15,767,514) (19,996,302) (25,604,162)
Change in net unrealized appreciation (depreciation) of:
Investments 41,213,458 99,612,007 95,430,336 153,481,781
Call options written 8,084,565 (9,209,912) 2,389,033 (11,574,115)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 35,422,558 69,858,411 76,039,622 97,124,945
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income (32,917,571) -- (59,005,057) --
From net investment income -- (16,326,681) -- (20,798,722)
From accumulated net realized gains -- -- -- --
Tax return of capital -- (49,045,844) -- (96,097,991)
- ---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (32,917,571) (65,372,525) (59,005,057) (116,896,713)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from sale of shares and offering costs
adjustments -- (4,982) -- 256,067
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 3,555,475 3,149,525 7,009,590 8,701,885
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share
transactions 3,555,475 3,144,543 7,009,590 8,957,952
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 6,060,462 7,630,429 24,044,155 (10,813,816)
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at the beginning of period 715,679,926 708,049,497 1,214,720,830 1,225,534,646
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $721,740,388 $715,679,926 $1,238,764,985 $1,214,720,830
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income
at the end of period $(24,240,841) $ -- $ (47,509,767) $ --
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
44
<Table>
<Caption>
EQUITY PREMIUM EQUITY PREMIUM
ADVANTAGE (JLA) AND GROWTH (JPG)
----------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
6/30/07 12/31/06 6/30/07 12/31/06
- ------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,049,509 $ 5,044,077 $ 4,494,265 $ 7,536,145
Net realized gain (loss) from:
Investments (4,856,158) (25,325,874) (482,033) (11,889,817)
Call options written (3,730,620) (9,667,782) (6,529,482) (5,336,041)
Change in net unrealized appreciation (depreciation) of:
Investments 37,985,530 66,909,819 19,173,632 49,090,741
Call options written (3,769,037) (3,099,138) 2,984,525 (3,295,248)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 28,679,224 33,861,102 19,640,907 36,105,780
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net investment income (23,543,643) -- (13,386,279) --
From net investment income -- (5,044,077) -- (8,145,953)
From accumulated net realized gains -- -- -- (2,230,158)
Tax return of capital -- (41,535,076) -- (16,362,378)
- ------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (23,543,643) (46,579,153) (13,386,279) (26,738,489)
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from sale of shares and offering costs
adjustments -- 38,068 (11,071) --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 2,630,617 4,481,520 614,101 --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share
transactions 2,630,617 4,519,588 603,030 --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 7,766,198 (8,198,463) 6,857,658 9,367,291
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at the beginning of period 474,780,708 482,979,171 323,569,006 314,201,715
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $482,546,906 $474,780,708 $330,426,664 $323,569,006
- ------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income
at the end of period $(20,494,134) $ -- $ (8,892,014) $ --
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
45
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding New York
Stock Exchange symbols are Nuveen Equity Premium Income Fund (JPZ), Nuveen
Equity Premium Opportunity Fund (JSN), Nuveen Equity Premium Advantage Fund
(JLA) and Nuveen Equity Premium and Growth Fund (JPG). The Funds are registered
under the Investment Company Act of 1940, as amended, as diversified, closed-end
management investment companies.
Each Fund seeks to provide a high level of current income and gains by investing
primarily in a diversified equity portfolio that seeks to substantially
replicate price movements of either the Standard & Poor's 500 Stock Index or a
weighted average of the Standard & Poor's 500 Stock Index and the NASDAQ-100
Index and is designed to support the Funds' index option strategies.
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.
Investment Valuation
Exchange-listed equity securities are generally valued at the last sales price
on the securities exchange on which such securities are primarily traded.
Securities traded on a securities exchange for which there are no transactions
on a given day or securities not listed on a securities exchange are valued at
the mean of the closing bid and asked prices. Securities traded on Nasdaq are
valued at the Nasdaq Official Closing Price. Prices of index options are
provided through an independent pricing service approved by the Funds' Board of
Trustees. If the pricing service is unable to supply a price for a derivative
investment the Funds may use a market quote provided by a major broker/dealer in
such investments. If it is determined that the market price for an investment is
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish fair value in accordance with procedures established in
good faith by the Board of Trustees. In establishing fair value, the Board of
Trustees, or its designee, will use a wide variety of market data including
prices of comparable securities, indications of value from security dealers,
general market conditions and other information and analysis. Short-term
investments are valued at amortized cost, which approximates market value.
Index options are generally valued at the average of the closing bid and asked
quotations. The close of trading of index options traded on the Chicago Board
Options Exchange normally occurs at 4:15 ET, which is different from the normal
4:00 ET close of the NYSE (the time of day as of which each Fund's NAV is
calculated). Under normal market circumstances, closing index option quotations
are considered to reflect the index option contract values as of the close of
the NYSE and will be used to value the option contracts. However, a significant
change in the S&P 500 or NASDAQ-100 futures contracts between the NYSE close and
the options market close will be considered as an indication that closing market
quotations for index options do not reflect the value of the contracts as of the
stock market close. In the event of such a significant change, the Board of
Trustees, or its designee, will determine a fair value for the options. Any such
fair valuation will likely take into account any information that may be
available about the actual trading price of the affected option as of 4:00 ET,
and if no such information is reliably available, the fair valuation of the
option may take into account various option pricing methodologies, as determined
to be appropriate under the circumstances.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from investment transactions are determined on the specific
identification method.
Option Transactions
Each Fund purchases index put options and writes (sells) index call options. The
purchase of put options involves the risk of loss of all or part of the cash
paid for the options. Put options purchased are accounted for in the same manner
as portfolio securities.
When the Funds write an index call option, an amount equal to the net premium
received (the premium less commission) is recorded as a liability and is
subsequently adjusted to the current value of the written option until the
option expires or the Funds enter into a closing purchase transaction. When an
index call option expires or the Funds enter into a closing purchase
transaction, the difference between the net premium received and any amount paid
at expiration or on effecting a closing purchase transaction, including
commission, is treated as a net realized gain on option contracts written or, if
the net premium received is less than the amount paid, as a net realized loss on
option contracts written. The Funds, as writers of an index call option, bear
the risk of an unfavorable change in the market value of the index underlying
the written option.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities,
when information is available. Interest income is recorded on an accrual basis.
46
Federal Income Taxes
The Fund intends to comply with the requirements of Subchapter M of the Internal
Revenue Code applicable to regulated investment companies. The Fund intends to
distribute substantially all of its investment company taxable income to
shareholders. In any year when the Fund realizes net capital gains, the Fund may
choose to distribute all or a portion of its net capital gains to shareholders,
or alternatively, to retain all or a portion of its net capital gains and pay
federal corporate income taxes on such retained gains.
Dividends and Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend date. The amount
and timing of distributions are determined in accordance with federal corporate
income tax regulations, which may differ from accounting principles generally
accepted in the United States.
The Funds make quarterly cash distributions to shareholders of a stated dollar
amount per share. Subject to approval and oversight by the Funds' Board of
Trustees, each Fund seeks to maintain a stable distribution level designed to
deliver the long-term return potential of each Fund's investment strategy
through regular quarterly distributions (a "Managed Distribution Policy"). Total
distributions during a calendar year generally will be made from each Fund's net
investment income, net realized capital gains and net unrealized capital gains
in the Fund's portfolio, if any. The portion of distributions paid from net
unrealized gains, if any, would be distributed from the Fund's assets and would
be treated by shareholders as a non-taxable distribution for tax purposes. If a
Fund's total return on net asset value exceeds total distributions during a
calendar year, the excess will be reflected as an increase in net asset value
per share. In the event that total distributions during a calendar year exceed a
Fund's total return on net asset value, the difference will be treated as a
return of capital for tax purposes and will reduce net asset value per share.
The final determination of the source and character of all distributions for the
fiscal year are made after the end of the fiscal year and reflected in the
financial statements contained in the annual report as of December 31 each year.
Real Estate Investment Trust ("REIT") distributions received by the Funds are
generally comprised of ordinary income, long-term and short-term capital gains,
and a return of REIT capital. The actual character of amounts received during
the period are not known until after the fiscal year-end.
For the fiscal year ended December 31, 2006, the character of distributions to
the Funds from the REITs was as follows:
<Table>
<Caption>
EQUITY
EQUITY EQUITY EQUITY PREMIUM
PREMIUM PREMIUM PREMIUM AND
INCOME OPPORTUNITY ADVANTAGE GROWTH
(JPZ) (JSN) (JLA) (JPG)
- ----------------------------------------------------------------------------------------------------------------------------
Ordinary income 69.68% 56.33% 65.29% 54.03%
Long-term and short-term capital gains 13.99 20.25 19.55 37.72
Return of REIT capital 16.33 23.42 15.16 8.25
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
For the fiscal years ended December 31, 2006, the Funds applied the actual
character of distributions reported by the REITs in which the Funds invest to
their receipts from the REITs. If a REIT held in the portfolio of investments
did not report the actual character of its distributions during the period, the
Funds treated the distributions as ordinary income.
For the six months ended June 30, 2007, the Funds applied the actual percentages
for the fiscal year ended December 31, 2006, described above, to its receipts
from the REITs and treated as income in the Statement of Operations only the
amount of ordinary income so calculated. The Funds adjusts that estimated
breakdown of income type (and consequently its net investment income) as
necessary early in the following calendar year when the REITs inform their
shareholders of the actual breakdown of income type.
The actual character of distributions made by the Funds during the fiscal year
ended December 31, 2006, are reflected in the accompanying financial statements.
The distributions made by the Funds during the six months ended June 30, 2007,
are provisionally classified as being "From and in excess of net investment
income", and those distributions will be classified as being from net investment
income, net realized capital gains and/or a return of capital, for tax purposes
after the fiscal year end. For purposes of calculating "Undistributed
(Over-distribution of) net investment income" as of June 30, 2007, the
distribution amounts provisionally classified as "From and in excess of net
investment income" were treated as being entirely from net investment income.
Consequently, the financial statements at June 30, 2007, reflect an
over-distribution of net investment income.
47
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the Funds'
policy that its custodian take possession of the underlying collateral
securities, the fair value of which exceeds the principal amount of the
repurchase transaction, including accrued interest, at all times. If the seller
defaults, and the fair value of the collateral declines, realization of the
collateral may be delayed or limited.
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. Credits for cash balances may be offset by charges for any days on
which the Funds overdraw their account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in shares were as follows:
<Table>
<Caption>
EQUITY PREMIUM EQUITY PREMIUM
INCOME (JPZ) OPPORTUNITY (JSN)
---------------------------------- ----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
6/30/07 12/31/06 6/30/07 12/31/06
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders due
to reinvestment of distributions 191,170 169,642 381,737 476,189
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
EQUITY PREMIUM EQUITY PREMIUM
ADVANTAGE (JLA) AND GROWTH (JPG)
---------------------------------- ----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
6/30/07 12/31/06 6/30/07 12/31/06
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders due
to reinvestment of distributions 143,655 245,272 31,102 --
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
3. INVESTMENT TRANSACTIONS
Purchases and sales (excluding put options, call options written and short-term
investments) during the six months ended June 30, 2007, were as follows:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases $24,865,147 $33,976,560 $10,327,898 $16,698,768
Sales 69,996,901 90,589,389 34,307,406 20,974,234
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
48
Transactions in call options written during the six months ended June 30, 2007,
were as follows:
<Table>
<Caption>
EQUITY PREMIUM EQUITY PREMIUM
INCOME (JPZ) OPPORTUNITY (JSN)
---------------------------------- ----------------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding, beginning of period 4,954 $23,418,815 15,548 $44,498,005
Call options written 16,347 62,314,575 45,835 107,880,276
Call options terminated in closing purchase
transactions (16,689) (62,945,510) (46,053) (108,266,043)
Call options expired -- -- (1,348) (2,672,450)
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding, end of period 4,612 $22,787,880 13,982 $41,439,788
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
EQUITY PREMIUM EQUITY PREMIUM
ADVANTAGE (JLA) AND GROWTH (JPG)
---------------------------------- ----------------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding, beginning of period 8,016 $19,166,900 1,754 $8,277,155
Call options written 21,438 42,207,171 5,907 22,472,973
Call options terminated in closing purchase
transactions (21,670) (43,139,670) (5,927) (22,191,013)
Call options expired (1,219) (1,412,403) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding, end of period 6,565 $16,821,998 1,734 $8,559,115
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
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 the recognition of unrealized gain or loss for tax
(mark-to-market) on index option contracts, recognition of income on REIT
investments and timing differences in recognizing certain gains and losses on
investment transactions. To the extent that differences arise that are permanent
in nature, such amounts are reclassified within the capital accounts on the
Statement of Assets and Liabilities presented in the annual report, based on
their federal tax basis treatment; temporary differences do not require
reclassification. Temporary and permanent differences do not impact the net
asset values of the Funds.
At June 30, 2007, the cost of investments (excluding call options written) was
as follows:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
Cost of investments $550,701,026 $957,403,907 $364,212,427 $271,403,136
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
Gross unrealized appreciation and gross unrealized depreciation of investments
(excluding call options written) at June 30, 2007, were as follows:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $191,310,800 $324,865,016 $134,124,906 $66,857,771
Depreciation (4,097,515) (9,074,529) (1,724,128) (1,864,389)
- --------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments $187,213,285 $315,790,487 $132,400,778 $64,993,382
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
49
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax components of undistributed net ordinary income and net long-term
capital gains at December 31, 2006, the Funds' tax year end, were as follows:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
Undistributed net ordinary income * $ -- $ -- $ -- $ --
Undistributed net long-term capital gains -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Net ordinary income consists of net taxable income derived from dividends,
interest, and net short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
December 31, 2006, was designated for purposes of the dividends paid deduction
as follows:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net ordinary income * $16,326,681 $20,798,723 $5,044,077 $9,032,221
Distributions from net long-term capital
gains -- -- -- 1,343,890
Tax return of capital 49,045,844 96,097,990 41,535,076 16,362,378
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Net ordinary income consists of net taxable income derived from dividends,
interest, and net short-term capital gains, if any.
At December 31, 2006, the Funds' last tax year end, the 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:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
Expiration Year:
2013 $7,414,951 $ -- $ -- $ --
2014 48,509,922 88,340,234 49,316,814 17,559,325
- --------------------------------------------------------------------------------------------------------------------------------
Total $55,924,873 $ 88,340,234 $ 49,316,814 $ 17,559,325
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
The Funds elected to defer net realized losses from investments incurred from
November 1, 2006 through December 31, 2006 ("post-October losses") in accordance
with federal income tax regulations. Post-October losses are treated as having
arisen on the first day of the current taxable year:
<Table>
<Caption>
EQUITY EQUITY EQUITY EQUITY
PREMIUM PREMIUM PREMIUM PREMIUM
INCOME OPPORTUNITY ADVANTAGE AND GROWTH
(JPZ) (JSN) (JLA) (JPG)
- --------------------------------------------------------------------------------------------------------------------------------
$10,847,811 $16,643,281 $5,178,975 $3,166,753
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
50
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily Managed Assets of each Fund as follows:
<Table>
<Caption>
EQUITY PREMIUM INCOME (JPZ)
EQUITY PREMIUM OPPORTUNITY (JSN)
EQUITY PREMIUM ADVANTAGE (JLA)
AVERAGE DAILY MANAGED ASSETS FUND-LEVEL FEE RATE
- ----------------------------------------------------------------------------------------------
For the first $500 million .7000%
For the next $500 million .6750
For the next $500 million .6500
For the next $500 million .6250
For Managed Assets over $2 billion .6000
- ----------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
EQUITY PREMIUM AND GROWTH (JPG)
AVERAGE DAILY MANAGED ASSETS FUND-LEVEL FEE RATE
- ---------------------------------------------------------------------------------------------
For the first $500 million .6800%
For the next $500 million .6550
For the next $500 million .6300
For the next $500 million .6050
For Managed Assets over $2 billion .5800
- ---------------------------------------------------------------------------------------------
</Table>
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the tables below. As
of June 30, 2007, the complex-level fee rate was .1828%.
Effective August 20, 2007, the complex-level fee schedule is as follows:
<Table>
<Caption>
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL(1) EFFECTIVE RATE AT BREAKPOINT LEVEL
- ------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
- ------------------------------------------------------------------------------------------------
</Table>
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Prior to August 20, 2007, the complex-level fee schedule was as follows:
<Table>
<Caption>
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL(1) EFFECTIVE RATE AT BREAKPOINT LEVEL
- ------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
- ------------------------------------------------------------------------------------------------
</Table>
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of Nuveen
sponsored funds in the U.S.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Adviser has entered
into Sub-Advisory Agreements with Gateway Investment Advisers, L.P. ("Gateway")
under which Gateway manages the investment portfolios of the Funds. Gateway is
compensated for its services to the Funds from the management fees paid to the
Adviser.
The Funds pay no compensation directly to those of its Trustees who are
affiliated with the Adviser or to its Officers, all of whom receive remuneration
for their services to the Funds from the Adviser or its affiliates. The Board of
Trustees has adopted a deferred compensation plan for independent Trustees that
enables Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
For the first eight years of Equity Premium Income's (JPZ) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily
Managed Assets, for fees and expenses in the amounts and for the time periods
set forth below:
<Table>
<Caption>
YEAR ENDING YEAR ENDING
OCTOBER 31, OCTOBER 31,
- -----------------------------------------------------------------------------------------------------
2004 * .30% 2009 .30%
2005 .30 2010 .22
2006 .30 2011 .14
2007 .30 2012 .07
2008 .30
- -----------------------------------------------------------------------------------------------------
</Table>
* From the commencement of operations.
The Adviser has not agreed to reimburse Equity Premium Income (JPZ) for any
portion of its fees and expenses beyond October 31, 2012.
For the first eight years of Equity Premium Opportunity's (JSN) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily
Managed Assets, for fees and expenses in the amounts and for the time periods
set forth below:
<Table>
<Caption>
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
- -----------------------------------------------------------------------------------------------------
2005 * .30% 2010 .30%
2006 .30 2011 .22
2007 .30 2012 .14
2008 .30 2013 .07
2009 .30
- -----------------------------------------------------------------------------------------------------
</Table>
* From the commencement of operations.
The Adviser has not agreed to reimburse Equity Premium Opportunity (JSN) for any
portion of its fees and expenses beyond January 31, 2013.
52
For the first six years of Equity Premium Advantage's (JLA) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily
Managed Assets, for fees and expenses in the amounts and for the time periods
set forth below:
<Table>
<Caption>
YEAR ENDING YEAR ENDING
MAY 31, MAY 31,
- -----------------------------------------------------------------------------------------------------
2005 * .20% 2009 .20%
2006 .20 2010 .20
2007 .20 2011 .10
2008 .20
- -----------------------------------------------------------------------------------------------------
</Table>
* From the commencement of operations.
The Adviser has not agreed to reimburse Equity Premium Advantage (JLA) for any
portion of its fees and expenses beyond May 31, 2011.
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. One important implication of this is that the
Funds will not be able to buy or sell securities to or from Merrill Lynch, but
the portfolio management teams and Fund management do not expect that this will
significantly impact the ability of the Funds to pursue their investment
objectives and policies. Under the terms of the merger, each outstanding share
of Nuveen Investments' common stock (other than dissenting shares) will be
converted into the right to receive a specified amount of cash, without
interest. The merger is expected to be completed by the end of the year, subject
to customary conditions, including obtaining the approval of Nuveen Investments
shareholders, obtaining necessary fund and client consents sufficient to satisfy
the terms of the Merger Agreement, and expiration of certain regulatory waiting
periods. The obligations of Madison Dearborn Partners, LLC to consummate the
merger are not conditioned on its obtaining financing.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between the Fund and the
Adviser, and will result in the automatic termination of the Fund's agreement.
Prior to the consummation of the merger, it is anticipated that the Board of
Trustees of the Fund will consider a new investment management agreement with
the Adviser. If approved by the Board, the new agreement would be presented to
the Fund's shareholders for approval, and, if so approved by shareholders, would
take effect upon consummation of the merger. There can be no assurance that the
merger described above will be consummated as contemplated or that necessary
shareholder approvals will be obtained.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
Effective June 29, 2007, the Funds adopted Financial Accounting Standards Board
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance regarding how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Management of
the Funds has concluded that there are no significant uncertain tax positions
that require recognition in the Funds' financial statements. Consequently, the
adoption of FIN 48 had no impact on the net assets or results of operations of
the Funds.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of June 30, 2007, the Funds do not believe the adoption of SFAS
No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
53
Financial
HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
<Table>
<Caption>
Investment Operations
--------------------------------
Net
Beginning Net Realized/
Net Asset Investment Unrealized
Value Income(a) Gain (Loss) Total
- ----------------------------------------------------------------------------------
EQUITY PREMIUM INCOME (JPZ)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) $18.59 $.22 $ .70 $ .92
2006 18.48 .43 1.39 1.82
2005 19.28 .42 .48 .90
2004(b) 19.10 .12 .24 .36
EQUITY PREMIUM OPPORTUNITY (JSN)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) 18.36 .17 .98 1.15
2006 18.66 .32 1.16 1.48
2005(c) 19.10 .30 .78 1.08
EQUITY PREMIUM ADVANTAGE (JLA)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) 18.35 .12 .98 1.10
2006 18.84 .20 1.13 1.33
2005(d) 19.10 .10 .60 .70
EQUITY PREMIUM AND GROWTH (JPG)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) 19.60 .27 .92 1.19
2006 19.04 .46 1.72 2.18
2005(e) 19.10 .04 (.06) (.02)
- ----------------------------------------------------------------------------------
<Caption>
Less Distributions
-----------------------------------------
Net Tax Ending Ending
Investment Capital Return of Offering Net Asset Market
Income Gains Capital Total Costs Value Value
- ----------------------------------------------------------------------------------
EQUITY PREMIUM INCOME (JPZ)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) $(.85)* $ -- $ -- $ (.85) $-- $18.66 $ 18.27
2006 (.43) -- (1.28) (1.71) -- 18.59 19.22
2005 (.40) -- (1.30) (1.70) -- 18.48 17.38
2004(b) (.15) -- --** (.15) (.03) 19.28 20.25
EQUITY PREMIUM OPPORTUNITY (JSN)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) (.89)* -- -- (.89) -- 18.62 18.22
2006 (.32) -- (1.46) (1.78) -- 18.36 18.62
2005(c) (.30) (.15) (1.05) (1.50) (.02) 18.66 17.39
EQUITY PREMIUM ADVANTAGE (JLA)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) (.91)* -- -- (.91) -- 18.54 18.51
2006 (.20) -- (1.62) (1.82) -- 18.35 19.20
2005(d) (.10) (.13) (.69) (.92) (.04) 18.84 17.56
EQUITY PREMIUM AND GROWTH (JPG)
- ----------------------------------------------------------------------------------
Year Ended 12/31:
2007(f) (.81)* -- -- (.81) -- 19.98 19.10
2006 (.49) (.14) (.99) (1.62) -- 19.60 19.38
2005(e) -- -- -- -- (.04) 19.04 17.25
- ----------------------------------------------------------------------------------
</Table>
* Represents distributions paid "From and in excess of net investment income"
for the six months ended June 30, 2007.
** Per share Tax Return of Capital rounds to less than $.01 per share.
*** Annualized.
**** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
***** After custodian fee credit and expense reimbursement, where applicable.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) For the period October 26, 2004 (commencement of operations) through
December 31, 2004.
(c) For the period January 26, 2005 (commencement of operations) through
December 31, 2005.
(d) For the period May 25, 2005 (commencement of operations) through December
31, 2005.
(e) For the period November 22, 2005 (commencement of operations) through
December 31, 2005.
(f) For the six months ended June 30, 2007.
54
<Table>
<Caption>
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Before Ratios to Average Net Assets After
Total Returns Credit/Reimbursement Credit/Reimbursement*****
--------------------- ----------------------------------- -----------------------------------
Based
Based on
on Net Ending Net Net Portfolio
Market Asset Net Assets Investment Investment Turnover
Value**** Value**** (000) Expenses Income Expenses Income Rate
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
(.48)% 5.04% $ 721,740 .95%*** 2.12%*** .64%*** 2.42%*** 4%
21.30 10.22 715,680 .96 1.99 .66 2.30 23
(6.12) 4.88 708,049 .96 1.93 .65 2.25 29
1.96 1.68 723,894 1.07*** 3.49*** .73*** 3.82*** 1
- -------------------------------------------------------------------------------------------------------------------------------
2.68 6.37 1,238,765 .94*** 1.58*** .64*** 1.89*** 3
17.86 8.28 1,214,721 .95 1.41 .65 1.72 8
(5.90) 5.65 1,225,535 .95*** 1.40*** .63*** 1.72*** 16
- -------------------------------------------------------------------------------------------------------------------------------
1.23 6.09 482,547 .98*** 1.08*** .77*** 1.28*** 2
20.52 7.35 474,781 .99 .85 .78 1.06 26
(7.87) 3.43 482,979 1.01*** .71*** .78*** .93*** 9
- -------------------------------------------------------------------------------------------------------------------------------
2.74 6.16 330,427 .92*** 2.76*** .92*** 2.76*** 5
22.68 11.90 323,569 .96 2.34 .93 2.37 37
(13.75) (.31) 314,202 1.11*** 2.08*** 1.11*** 2.08*** --
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
55
Annual Investment
Management Agreement
APPROVAL PROCESS
The Board Members are responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At the annual review meeting held on May 21, 2007 (the "May
Meeting"), the Board Members of the Funds, including the Independent Board
Members, unanimously approved the continuance of the Investment Management
Agreement between each Fund (a "Fund") and Nuveen Asset Management ("NAM" or the
"Adviser"), and the Sub-Advisory Agreements between NAM and Gateway Investment
Advisers, L.P. ("Gateway" or the "Sub-Adviser"). NAM and the Sub-Adviser are
each a "Fund Adviser."
The foregoing Investment Management Agreements with NAM and Sub-Advisory
Agreements with the Sub-Adviser are hereafter referred to as "Original
Investment Management Agreements" and "Original Sub-Advisory Agreements,"
respectively.
Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent
company of NAM, entered into a merger agreement providing for the acquisition of
Nuveen by Windy City Investments, Inc., a corporation formed by investors led by
Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the
"Transaction"). Each Original Investment Management Agreement and Original
Sub-Advisory Agreement, as required by Section 15 of the Investment Company Act
of 1940 (the "1940 Act") provides for its automatic termination in the event of
its "assignment" (as defined in the 1940 Act). Any change in control of the
adviser is deemed to be an assignment. The consummation of the Transaction will
result in a change of control of NAM as well as its affiliated sub-advisers and
therefore cause the automatic termination of each Original Investment Management
Agreement and Original Sub-Advisory Agreement, as required by the 1940 Act.
Accordingly, in anticipation of the Transaction, at a meeting held on July 31,
2007 (the "July Meeting"), the Board Members, including the Independent Board
Members, unanimously approved new Investment Management Agreements (the "New
Investment Management Agreements") with NAM on behalf of each Fund and new
Sub-Advisory Agreements (the "New Sub-Advisory Agreements") between NAM and the
Sub-Adviser on behalf of each Fund to take effect immediately after the
Transaction or shareholder approval of the new advisory contracts, whichever is
later. The 1940 Act also requires that each New Investment Management Agreement
and New Sub-Advisory Agreement be approved by the respective Fund's shareholders
in order for it to become effective. Accordingly, to ensure continuity of
advisory services, the Board Members, including the Independent Board Members,
unanimously approved Interim Investment Management Agreements and Interim
Sub-Advisory Agreements to take effect upon the closing of the Transaction if
shareholders have not yet approved the New Investment Management Agreements and
New Sub-Advisory Agreements.
Subsequent to the May Meeting, the Board was also informed that Natixis Global
Asset Management, L.P. ("Natixis GAM") will acquire, through its wholly-owned
subsidiary, IXIS Anchor Acquisition, LLC (which will simultaneously change its
name to Gateway Investment Advisers, LLC) ("New Gateway") substantially all of
the assets and liabilities of Gateway (the "Gateway Transaction"). As noted
above, each Original Sub-Advisory Agreement with Gateway, as required by Section
15 of the 1940 Act, will automatically terminate upon its "assignment" (as
defined in the 1940 Act). Under the 1940 Act, a change in control of an
investment company's sub-adviser is deemed to be an assignment. The Gateway
Transaction will cause a change in control of Gateway and, accordingly, will be
deemed to cause an assignment of each Original Sub-Advisory Agreement with
Gateway. As a result, each Original Sub-Advisory Agreement between NAM and
Gateway on behalf of the Funds will terminate upon the closing of the Gateway
Transaction. Accordingly, in anticipation of the Gateway Transaction, the Board
of each Fund, including the Independent Board Members, unanimously approved a
new sub-advisory agreement between NAM and New Gateway on behalf of each Fund
(each a "New Gateway Sub-Advisory Agreement").
Because the information provided and considerations made at the annual review
continue to be relevant with respect to the evaluation of the New Investment
Management Agreements and New Sub-Advisory Agreements, the Board considered the
foregoing as part of its deliberations of the New Investment Management
Agreements and New Sub-Advisory Agreements. Accordingly, as indicated, the
discussions immediately below outline the materials and information presented to
the Board in connection with the Board's prior annual review and the analysis
56
undertaken and the conclusions reached by Board Members when determining to
continue the Original Investment Management Agreements and Original Sub-Advisory
Agreements. In addition, the approvals for the New Gateway Sub-Advisory
Agreements are set forth below under Section IV.
I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS & ORIGINAL
SUB-ADVISORY AGREEMENTS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Advisers and the performance of
the Funds (as applicable). At each of its quarterly meetings, the Board reviewed
investment performance (as applicable) and various matters relating to the
operations of the Funds and other Nuveen funds, including the compliance
program, shareholder services, valuation, custody, distribution and other
information relating to the nature, extent and quality of services provided by
the Fund Adviser. Between the regularly scheduled quarterly meetings, the Board
Members received information on particular matters as the need arose.
In preparation for their considerations at the May Meeting, the Independent
Board Members received extensive materials, well in advance of the meeting,
which outlined or are related to, among other things:
- - the nature, extent and quality of services provided by the Fund Adviser;
- - the organization and business operations of the Fund Adviser, including the
responsibilities of various departments and key personnel;
- - each Fund's past performance as well as the Fund's performance compared to
funds with similar investment objectives based on data and information
provided by an independent third party and to recognized and/or customized
benchmarks (as appropriate);
- - the profitability of the Fund Adviser and certain industry profitability
analyses for unaffiliated advisers;
- - the expenses of the Fund Adviser in providing the various services;
- - the advisory fees and total expense ratios of each Fund, including comparisons
of such fees and expenses with those of comparable, unaffiliated funds based
on information and data provided by an independent third party (the "Peer
Universe") as well as compared to a subset of funds within the Peer Universe
(the "Peer Group") of the respective Fund (as applicable);
- - the advisory fees the Fund Adviser assesses to other types of investment
products or clients;
- - the soft dollar practices of the Fund Adviser, if any; and
- - from independent legal counsel, a legal memorandum describing among other
things, applicable laws, regulations and duties in reviewing and approving
advisory contracts.
At the May Meeting, NAM made a presentation to, and responded to questions from,
the Board. At the May Meeting, the Independent Board Members met privately with
their legal counsel to review the Board's duties in reviewing advisory contracts
and considering the renewal of the advisory contracts (which include the
sub-advisory contracts). The Independent Board Members, in consultation with
independent counsel, reviewed the factors set out in judicial decisions and
Securities and Exchange Commission ("SEC") directives relating to the renewal of
advisory contracts. As outlined in more detail below, the Board Members
considered all factors they believed relevant with respect to each Fund,
including, but not limited to, the following: (a) the nature, extent and quality
of the services to be provided by the Fund Adviser; (b) the investment
performance of the Fund and the Fund Adviser (as applicable); (c) the costs of
the services to be provided and profits to be realized by the Fund Adviser and
its affiliates; (d) the extent to which economies of scale would be realized;
and (e) whether fee levels reflect those economies of scale for the benefit of
the Fund's investors. In addition, as noted, the Board Members met regularly
throughout the year to oversee the Funds. In evaluating the advisory contracts,
the Board Members also relied upon their knowledge of the respective Fund
Adviser, its services and the Funds resulting from their meetings and other
57
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
interactions throughout the year. It is with this background that the Board
Members considered each advisory contract.
A. NATURE, EXTENT & QUALITY OF SERVICES
In considering the renewal of the Original Investment Management Agreements and
Original Sub-Advisory Agreements, the Board Members considered the nature,
extent and quality of the respective Fund Adviser's services. The Board Members
reviewed materials outlining, among other things, the Fund Adviser's
organization and business; the types of services that the Fund Adviser or its
affiliates provide or are expected to provide to the Funds; the performance
record of the Fund (as described in further detail below); and at the annual
review, any initiatives Nuveen had taken for the applicable fund product line.
As noted, at the annual review, the Board Members were already familiar with the
organization, operations and personnel of each respective Fund Adviser due to
the Board Members' experience in governing the respective Funds and working with
such Fund Advisers on matters relating to the Funds. At the May Meeting, the
Board Members also recognized NAM's investment in additional qualified personnel
throughout the various groups in the organization and recommended to NAM that it
continue to review staffing needs as necessary. The Board Members recognized
NAM's investment of resources and efforts to continue to enhance and refine its
investment processes.
With respect to the Sub-Adviser, the Board Members also received and reviewed an
evaluation of the Sub-Adviser from NAM at the annual review. Such evaluation
outlined, among other things, the Sub-Adviser's organizational history, client
base, product mix, investment team and any changes thereto, investment process
and any changes to its investment strategy, and the Funds' investment objectives
and performance (as applicable). At the May Meeting, the Board Members noted
that NAM recommended the renewal of the applicable Original Sub-Advisory
Agreements and considered the basis for such recommendations and any
qualifications in connection therewith. In its review of the Sub-Adviser, the
Board Members also considered, among other things, the experience of the
investment personnel, the quality of the Sub-Adviser's investment processes in
making portfolio management decisions and any additional refinements and
improvements adopted to the portfolio management processes and Fund performance.
During the last year, the Board Members noted that they visited several
sub-advisers meeting their key investment and business personnel. In this
regard, the Board Members visited Gateway in October, 2006. The Board Members
noted the Sub-Adviser's experienced investment team.
In addition to advisory services, the Independent Board Members considered the
quality of administrative and non-advisory services provided by NAM and noted
that NAM and its affiliates provide the Funds with a wide variety of services
and officers and other personnel as are necessary for the operations of the
Funds, including:
- - product management;
- - fund administration;
- - oversight by shareholder services and other fund service providers;
- - administration of Board relations;
- - regulatory and portfolio compliance; and
- - legal support.
As the Funds operate in a highly regulated industry and given the importance of
compliance, the Board Members considered, in particular, NAM's compliance
activities for the Funds and enhancements thereto. In this regard, the Board
Members recognized the quality of NAM's compliance team. The Board Members also
considered NAM's ability and procedures to monitor the Sub-Adviser's
performance, business practices and compliance policies and procedures. The
Board Members further noted NAM's negotiations with other service providers and
the corresponding reduction in certain service providers' fees at the May
Meeting.
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members recognized Nuveen's continued commitment to supporting the
secondary market for the common shares
58
of its closed-end funds through a variety of programs designed to raise investor
and analyst awareness and understanding of closed-end funds. These efforts
include:
- - maintaining shareholder communications;
- - providing advertising for the Nuveen closed-end funds;
- - maintaining its closed-end fund website;
- - maintaining continual contact with financial advisers;
- - providing educational symposia;
- - conducting research with investors and financial analysis regarding closed-end
funds; and
- - evaluating secondary market performance.
With respect to the Nuveen closed-end funds that utilize leverage through the
issuance of preferred shares ("Preferred Shares"), the Board Members noted
Nuveen's continued support for the holders of Preferred Shares by, among other
things:
- - maintaining an in-house trading desk;
- - maintaining a product manager for the Preferred Shares;
- - developing distribution for Preferred Shares with new market participants;
- - maintaining an orderly auction process;
- - managing leverage and risk management of leverage; and
- - maintaining systems necessary to test compliance with rating agency criteria.
With respect to the Sub-Adviser, the Board Members noted that the sub-advisory
agreements were essentially agreements for portfolio management services only
and the Sub-Adviser was not expected to supply other significant administrative
services to the Funds.
Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the Funds
under the respective Original Investment Management Agreement or Original
Sub-Advisory Agreement, as applicable, were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS & FUND ADVISERS
At the May Meeting, the Board considered the investment performance for each
Fund, including the Fund's historic performance as well as its performance
compared to funds with similar investment objectives (the "Performance Peer
Group") based on data provided by an independent third party (as described
below). The Board Members also reviewed the respective Fund's historic
performance compared to recognized and/or customized benchmarks (as applicable).
In evaluating the performance information during the annual review at the May
Meeting, in certain instances, the Board Members noted that the closest
Performance Peer Group for a fund may not adequately reflect such fund's
investment objectives and strategies, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
These Performance Peer Groups include those for the Funds as well as for: the
Nuveen Diversified Dividend and Income Fund; the Nuveen Multi-Strategy Income
and Growth Fund; the Nuveen Multi-Strategy Income and Growth Fund 2; the Nuveen
Tax-Advantaged Floating Rate Fund; and the Nuveen Real Estate Income Fund.
The Board Members reviewed performance information including, among other
things, total return information compared with the respective Fund's Performance
Peer Group as well as recognized and/or customized benchmarks (as appropriate)
for the one-, three- and five-year periods (as applicable) ending December 31,
2006. This information supplemented the performance information provided to the
Board at each of its quarterly meetings. Based on their review at the May
Meeting, the Board Members determined that the respective Fund's investment
performance over time had been satisfactory.
59
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
C. FEES, EXPENSES & PROFITABILITY
1. Fees & Expenses
During the annual review, the Board evaluated the management fees and
expenses of each Fund reviewing, among other things, such Fund's advisory
fees (net and gross management fees) and total expense ratios (before and
after expense reimbursements and/or waivers) in absolute terms as well as
comparisons to the gross management fees (before waivers), net management
fees (after waivers) and total expense ratios (before and after waivers) of
comparable funds in the Peer Universe and the Peer Group. In reviewing the
fee schedule for a Fund, the Board Members considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and any
fee waivers and reimbursements provided by Nuveen. The Board Members further
reviewed data regarding the construction of Peer Groups as well as the
methods of measurement for the fee and expense analysis and the performance
analysis. In certain cases, due to the small number of peers in the Peer
Universe, the Peer Universe and Peer Group had significant overlap or even
consisted entirely of the same unaffiliated funds. In reviewing the
comparisons of fee and expense information, the Board Members recognized that
in certain cases, the size of a fund relative to peers, the small size and
odd composition of the Peer Group (including differences in objectives and
strategies), expense anomalies, timing of information used or other factors
impacting the comparisons thereby limited some of the usefulness of the
comparative data. The Board Members also considered the differences in the
use of leverage. The Board Members also noted the limited Peer Groups
available for the Nuveen funds with multi-sleeves of investments (e.g., the
Nuveen Diversified Dividend and Income Fund, the Nuveen Multi-Strategy Income
and Growth Fund, the Nuveen Multi-Strategy Income and Growth Fund 2 and the
Nuveen Tax-Advantaged Total Return Strategy Fund). Based on their review of
the fee and expense information provided, the Board Members determined that
each Fund's net total expense ratio was within an acceptable range compared
to peers.
2. Comparisons with the Fees of Other Clients
At the annual review, the Board Members further reviewed data comparing the
advisory fees of NAM with fees NAM charges to other clients. Such clients
include NAM's separately managed accounts and funds that are not offered by
Nuveen but are sub-advised by one of Nuveen's investment management teams. In
general, the advisory fees charged for separate accounts are somewhat lower
than the advisory fees assessed to the Funds. The Board Members considered
the differences in the product types, including, but not limited to, the
services provided, the structure and operations, product distribution and
costs thereof, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Board Members noted, in particular,
that the range of services provided to the Funds (as discussed above) is much
more extensive than that provided to separately managed accounts. As
described in further detail above, such additional services include, but are
not limited to: product management, fund administration, oversight of third
party service providers, administration of Board relations, and legal
support. The Board Members noted that the Funds operate in a highly regulated
industry requiring extensive compliance functions compared to other
investment products. Given the inherent differences in the products,
particularly the extensive services provided to the Funds, the Board Members
believe such facts justify the different levels of fees.
With respect to the Sub-Adviser, in considering the fees of the Sub-Adviser,
the Board Members also considered the pricing schedule or fees that the
Sub-Adviser charges for similar investment management services for other fund
sponsors or clients, as applicable. With respect to sub-advisers unaffiliated
with Nuveen, such as the Sub-Adviser, the Board Members noted that such fees
were the result of arm's-length negotiations.
3. Profitability of Fund Advisers
In conjunction with its review of fees, the Board Members also considered the
profitability of Nuveen for its advisory activities (which incorporated
Nuveen's wholly-owned affiliated sub-advisers) and its financial condition.
At the annual review, the Board Members reviewed the revenues and expenses of
Nuveen's advisory activities for the last three years, the allocation
methodology used in preparing the profitability data as well as the 2006
60
Annual Report for Nuveen. The Board Members noted this information
supplemented the profitability information requested and received during the
year to help keep them apprised of developments affecting profitability (such
as changes in fee waivers and expense reimbursement commitments). In this
regard, the Board Members noted the enhanced dialogue and information
regarding profitability with NAM during the year, including more frequent
meetings and updates from Nuveen's corporate finance group. The Board Members
considered Nuveen's profitability compared with other fund sponsors prepared
by three independent third party service providers as well as comparisons of
the revenues, expenses and profit margins of various unaffiliated management
firms with similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the subjective
nature of determining profitability which may be affected by numerous factors
including the allocation of expenses. Further, the Board Members recognized
the difficulties in making comparisons as the profitability of other advisers
generally is not publicly available and the profitability information that is
available for certain advisers or management firms may not be representative
of the industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations.
Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology
at the annual review and assumptions for allocating expenses across product
lines to determine profitability. Last year, the Board Members also designated
an Independent Board Member as a point person for the Board to review the
methodology determinations during the year and any refinements thereto, which
relevant information produced from such process was reported to the full Board.
In reviewing profitability, the Board Members recognized Nuveen's increased
investment in its fund business. Based on its review, the Board Members
concluded that Nuveen's level of profitability for its advisory activities was
reasonable in light of the services provided. With respect to sub-advisers
unaffiliated with Nuveen, such as the Sub-Adviser, the Board Members also
considered the Sub-Adviser's revenues from serving as Sub-Adviser to the Funds,
expenses (including the basis for allocating expenses) and profitability margins
(pre- and post-tax). Based on their review, the Board Members were satisfied
that the respective Fund Adviser's level of profitability was reasonable in
light of the services provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered other amounts paid to a Fund Adviser by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser
and its affiliates receive, or are expected to receive, that are directly
attributable to the management of the Funds, if any. See Section E below for
additional information on indirect benefits a Fund Adviser may receive as a
result of its relationship with the Funds. Based on their review of the overall
fee arrangement of each Fund, the Board Members determined that the advisory
fees and expenses of the Funds were reasonable.
D. ECONOMIES OF SCALE & WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Board Members recognized the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Board Members
reviewed and considered the breakpoints in the advisory fee schedules that
reduce advisory fees. In addition to advisory fee breakpoints, the Board also
approved a complex-wide fee arrangement in 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Board Members noted that the
last complex-wide asset level breakpoint for the complex-wide fee schedule was
at $91 billion and that the Board Members anticipated further review and/or
negotiations prior to the assets of the Nuveen complex reaching such threshold.
Based on their review, the Board Members concluded that the breakpoint schedule
and complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders, subject to further evaluation
of the complex-wide fee schedule as assets in the complex increase. See Section
II, Paragraph D -- "Approval of the New Investment Management Agreements and New
Sub-Advisory Agreements -- Economies of Scale and Whether Fee Levels Reflect
These Economies of Scale" for information regarding subsequent modifications to
the complex-wide fee.
61
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits the respective Fund Adviser or its affiliates may receive as a result of
its relationship with each Fund. In this regard, the Board Members considered
the revenues received by affiliates of NAM for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Board Members considered whether the Fund Adviser
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to the Fund Adviser in managing the assets of the Funds and other
clients. With respect to NAM, the Board Members noted that NAM does not
currently have any soft dollar arrangements; however, to the extent certain bona
fide agency transactions that occur on markets that traditionally trade on a
principal basis and riskless principal transactions are considered as generating
"commissions," NAM intends to comply with the applicable safe harbor provisions.
With respect to the Sub-Adviser, the Board considered that while the Sub-Adviser
may select brokers that provide it with research services, it is the
Sub-Adviser's current practice not to receive soft dollar credits in connection
with trades executed for the Funds it advises but it may seek to do so in the
future.
Based on their review, the Board Members concluded that any indirect benefits
received by a Fund Adviser as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Board Members did not identify any single factor discussed previously as
all-important or controlling in their considerations to continue an advisory
contract. The Board Members, including the Independent Board Members,
unanimously concluded that the terms of the Original Investment Management and
Original Sub-Advisory Agreements are fair and reasonable, that the respective
Fund Adviser's fees are reasonable in light of the services provided to each
Fund and that the Original Investment Management Agreements and the Original
Sub-Advisory Agreements be renewed.
II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS AND NEW SUB-ADVISORY
AGREEMENTS
Following the May Meeting, the Board Members were advised of the potential
Transaction. As noted above, the completion of the Transaction would terminate
each of the Original Investment Management Agreements and Original Sub-Advisory
Agreements. Accordingly, at the July Meeting, the Board of each Fund, including
the Independent Board Members, unanimously approved the New Investment
Management Agreements and New Sub-Advisory Agreements on behalf of the
respective Funds. Leading up to the July Meeting, the Board Members had several
meetings and deliberations with and without Nuveen management present, and with
the advice of legal counsel, regarding the proposed Transaction as outlined
below.
On June 8, 2007, the Board Members held a special telephonic meeting to discuss
the proposed Transaction. At that meeting, the Board Members established a
special ad hoc committee comprised solely of Independent Board Members to focus
on the Transaction and to keep the Independent Board Members updated with
developments regarding the Transaction. On June 15, 2007, the ad hoc committee
discussed with representatives of NAM the Transaction and modifications to the
complex-wide fee schedule that would generate additional fee savings at
specified levels of complex-wide asset growth. Following the foregoing meetings
and several subsequent telephonic conferences among Independent Board Members
and independent counsel, and between Independent Board Members and
representatives of Nuveen, the Board met on June 18, 2007 to further discuss the
proposed Transaction. Immediately prior to and then again during the June 18,
2007 meeting, the Independent Board Members met privately with their independent
legal counsel. At that meeting, the Board met with representatives of MDP, of
Goldman Sachs, Nuveen's financial adviser in the Transaction, and of the Nuveen
Board to discuss, among other things, the history and structure of MDP, the
terms of the proposed Transaction (including the financing terms),
62
and MDP's general plans and intentions with respect to Nuveen (including with
respect to management, employees, and future growth prospects). On July 9, 2007,
the Board also met to be updated on the Transaction as part of a special
telephonic Board meeting. The Board Members were further updated at a special
in-person Board meeting held on July 19, 2007 (one Independent Board Member
participated telephonically). Subsequently, on July 27, 2007, the ad hoc
committee held a telephonic conference with representatives of Nuveen and MDP to
further discuss, among other things, the Transaction, the financing of the
Transaction, retention and incentive plans for key employees, the effect of
regulatory restrictions on transactions with affiliates after the Transaction,
and current volatile market conditions and their impact on the Transaction.
In connection with their review of the New Investment Management Agreements and
New Sub-Advisory Agreements, the Independent Board Members, through their
independent legal counsel, also requested in writing and received additional
information regarding the proposed Transaction and its impact on the provision
of services by NAM and its affiliates.
The Independent Board Members received, well in advance of the July Meeting,
materials which outlined, among other things:
- - the structure and terms of the Transaction, including MDP's co-investor
entities and their expected ownership interests, and the financing
arrangements that will exist for Nuveen following the closing of the
Transaction;
- - the strategic plan for Nuveen following the Transaction;
- - the governance structure for Nuveen following the Transaction;
- - any anticipated changes in the operations of the Nuveen funds following the
Transaction, including changes to NAM's and Nuveen's day-to-day management,
infrastructure and ability to provide advisory, distribution or other
applicable services to the Funds;
- - any changes to senior management or key personnel who work on Fund related
matters (including portfolio management, investment oversight, and
legal/compliance) and any retention or incentive arrangements for such
persons;
- - any anticipated effect on each Fund's expense ratio (including advisory fees)
following the Transaction;
- - any benefits or undue burdens imposed on the Funds as a result of the
Transaction;
- - any legal issues for the Funds as a result of the Transaction;
- - the nature, quality and extent of services expected to be provided to the
Funds following the Transaction, changes to any existing services and policies
affecting the Funds, and cost-cutting efforts, if any, that may impact such
services or policies;
- - any conflicts of interest that may arise for Nuveen or MDP with respect to the
Funds;
- - the costs associated with obtaining necessary shareholder approvals and who
would bear those costs; and
- - from legal counsel, a memorandum describing the applicable laws, regulations
and duties in approving advisory contracts, including, in particular, with
respect to a change of control.
Immediately preceding the July Meeting, representatives of MDP met with the
Board to further respond to questions regarding the Transaction. After the
meeting with MDP, the Independent Board Members met with independent legal
counsel in executive session. At the July Meeting, Nuveen also made a
presentation and responded to questions. Following the presentations and
discussions of the materials presented to the Board, the Independent Board
Members met again in executive session with their counsel. As outlined in more
detail below, the Independent Board Members considered all factors they believed
relevant with respect to each Fund, including the impact that the Transaction
could be expected to have on the following: (a) the nature, extent and quality
of services to be provided; (b) the investment performance of the Funds; (c) the
costs of the services and profits to be realized by Nuveen and its affiliates;
(d) the extent to which economies of scale would be realized; and (e) whether
fee levels reflect those economies of scale for the benefit of investors. As
noted above, during the past year, the Board Members had completed their annual
review of the respective Original Investment Management Agreements and Original
Sub-Advisory Agreements and many of the factors considered at such reviews were
applicable to their
63
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
evaluation of the New Investment Management Agreements and New Sub-Advisory
Agreements. Accordingly, in evaluating such agreements, the Board Members relied
upon their knowledge and experience with the Fund Advisers and considered the
information received and their evaluations and conclusions drawn at the reviews.
While the Board reviewed many Nuveen funds at the July Meeting, the Independent
Board Members evaluated all information available to them on a fund-by-fund
basis, and their determinations were made separately in respect of each Fund.
A. NATURE, EXTENT & QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by the Fund Adviser under the applicable New Investment Management
Agreement or New Sub-Advisory Agreement, the Independent Board Members
considered, among other things, the expected impact, if any, of the Transaction
on the operations, facilities, organization and personnel of NAM and the
Sub-Adviser (if applicable); the potential implications of regulatory
restrictions on the Funds following the Transaction; the ability of NAM and its
affiliates to perform their duties after the Transaction; and any anticipated
changes to the current investment and other practices of the Funds.
The Board noted that the terms of each New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Original Investment Management Agreement relating to the same Fund (with
both reflecting reductions to fee levels in the complex-wide fee schedule for
complex-wide assets in excess of $80 billion that have an effective date of
August 20, 2007). Similarly, the terms of each New Sub-Advisory Agreement,
including fees payable thereunder, are substantially identical to those of the
Original Sub-Advisory Agreement relating to the same Fund. The Board considered
that the services to be provided and the standard of care under the New
Investment Advisory Agreements and the New Sub-Advisory Agreements are the same
as the corresponding original agreements. The Board Members noted the
Transaction does not alter the allocation of responsibilities between the
Adviser and Sub-Adviser. The Sub-Adviser will continue to furnish an investment
program in respect of, make investment decisions for and place all orders for
the purchase and sale of securities for the portion of each Fund's investment
portfolio allocated by the Adviser to the Sub-Adviser, all on behalf of the
applicable Fund and subject to oversight of the Board and the Adviser. The Board
Members further noted that key personnel of the Adviser or Sub-Adviser who have
responsibility for the Funds in each area, including portfolio management,
investment oversight, fund management, fund operations, product management,
legal/compliance and board support functions, are expected to be the same
following the Transaction. The Board Members considered and are familiar with
the qualifications, skills and experience of such personnel. The Board also
considered certain information regarding any anticipated retention or incentive
plans designed to retain key personnel. Further, the Board Members noted that no
changes to Nuveen's infrastructure (including at the affiliated sub-adviser
level) or operations as a result of the Transaction were anticipated other than
potential enhancements as a result of an expected increase in the level of
investment in such infrastructure and personnel. The Board noted MDP's
representations that it does not plan to have a direct role in the management of
Nuveen, appointing new management personnel, or directly impacting individual
staffing decisions. The Board Members also noted that there were not any planned
"cost cutting" measures that could be expected to reduce the nature, extent or
quality of services. After consideration of the foregoing, the Board Members
concluded that no diminution in the nature, quality and extent of services
provided to the Funds and their shareholders by the respective Fund Advisers is
expected.
In addition to the above, the Board Members considered potential changes in the
operations of each Fund. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
future affiliated persons. During their deliberations, it was noted that, after
the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership
interest in Nuveen at a level that will make Merrill Lynch an affiliated person
of Nuveen. The Board Members recognized that applicable law would generally
prohibit the Funds from engaging in securities transactions with Merrill Lynch
as principal, and would also impose restrictions on using Merrill Lynch for
agency transactions. They recognized that having MDP and Merrill Lynch as
affiliates may restrict the Nuveen funds'
64
ability to invest in securities of issuers controlled by MDP or issued by
Merrill Lynch and its affiliates even if not bought directly from MDP or Merrill
Lynch as principal. They also recognized that various regulations may require
the Nuveen funds to apply investment limitations on a combined basis with
affiliates of Merrill Lynch. The Board Members considered information provided
by NAM regarding the potential impact on the Nuveen funds' operations as a
result of these regulatory restrictions. The Board Members considered, in
particular, the Nuveen funds that may be impacted most by the restricted access
to Merrill Lynch, including: municipal funds (particularly certain state-
specific funds), senior loan funds, taxable fixed income funds, preferred
security funds and funds that heavily use derivatives. The Board Members
considered such funds' historic use of Merrill Lynch as principal in their
transactions and information provided by NAM regarding the expected impact
resulting from Merrill Lynch's affiliation with Nuveen and available measures
that could be taken to minimize such impact. NAM informed the Board Members
that, although difficult to determine with certainty, its management did not
believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would
have a material adverse effect on any Nuveen fund's ability to pursue its
investment objectives and policies.
In addition to the regulatory restrictions considered by the Board, the Board
Members also considered potential conflicts of interest that could arise between
the Nuveen funds and various parties to the Transaction and discussed possible
ways of addressing such conflicts.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Transaction was not expected to
adversely affect the nature, quality or extent of services provided by the
respective Fund Adviser and that the expected nature, quality and extent of such
services supported approval of the New Investment Management Agreements and New
Sub-Advisory Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Transaction.
In addition, the Board Members recently reviewed Fund performance at the May
Meeting, as described above, and determined such Funds' performance was
satisfactory or better. The Board Members further noted that the investment
policies and strategies were not expected to change as a result of the
Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Investment Management
Agreements and New Sub-Advisory Agreements.
C. FEES, EXPENSES & PROFITABILITY
As described in more detail above, during the annual review, the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
At the annual review, the Board Members determined that the respective Fund's
advisory fees and expenses were reasonable. In evaluating the profitability of
the Fund Adviser under the New Investment Management Agreements and New
Sub-Advisory Agreements, the Board Members considered their conclusions at their
prior reviews and whether the management fees or other expenses would change as
a result of the Transaction. As described above, the investment management fee
for NAM is composed of two components -- a fund-level component and complex-wide
level component. The fee schedule under the New Investment Management Agreements
to be paid to NAM is identical to that under the Original Investment Management
Agreements, including the modified complex-wide fee schedule. As noted above,
the Board recently approved a modified complex-wide fee schedule that would
generate additional fee savings on complex-wide assets above $80 billion. The
modifications have an effective date of August 20, 2007 and are part of the
Original Investment Management Agreements. Accordingly, the terms of the
complex-wide component under the New Investment Management Agreements are the
same as under the Original Investment Management Agreements. The Board Members
also noted that Nuveen has committed for a period of two years from the date of
closing of the
65
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
Transaction that it will not increase gross management fees for any Nuveen fund
and will not reduce voluntary expense reimbursement levels for any Nuveen fund
from their currently scheduled prospective levels. Based on the information
provided, the Board Members did not expect that overall Fund expenses would
increase as a result of the Transaction.
In addition, the Board Members considered that additional fund launches were
anticipated after the Transaction which would result in an increase in total
assets under management in the complex and a corresponding decrease in overall
management fees under the complex-wide fee schedule. Taking into consideration
the Board's prior evaluation of fees and expenses at the annual renewal, and the
modification to the complex-wide fee schedule, the Board determined that the
management fees and expenses were reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Transaction on Nuveen's profitability for its advisory activities (which
includes its affiliated sub-advisers), at the recent annual review, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities was reasonable. During the year, the Board Members had noted the
enhanced dialogue regarding profitability and the appointment of an Independent
Board Member as a point person to review methodology determinations and
refinements in calculating profitability. Given their considerations at the
annual review and the modifications to the complex-wide fee schedule, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities continues to be reasonable.
With respect to the Sub-Adviser, the fees paid under the New Sub-Advisory
Agreements are the same as the Original Sub-Advisory Agreements. With respect to
sub-advisers unaffiliated with Nuveen, such as the Sub-Adviser, the Board
Members considered the Sub-Adviser's revenues from serving as Sub-Adviser to the
Funds, expenses (including the basis for allocating expenses) and profitability
margins (pre- and post-tax) at the annual review. The Transaction is not
anticipated to affect the profitability of the Sub-Adviser. At the annual
review, the Board Members were satisfied that the respective Fund Adviser's
level of profitability was reasonable in light of the services provided. Taking
into account the Board's prior evaluation and the fact that sub-advisory fees
will not change, the Board Members were satisfied that the respective Fund
Advisers' levels of profitability were reasonable in light of the services
provided.
D. ECONOMIES OF SCALE & WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
The Board Members have been cognizant of economies of scale and the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure that shareholders share in the benefits derived from
economies of scale, the Board adopted the complex-wide fee arrangement in 2004.
At the May Meeting, the Board Members reviewed the complex-wide fee arrangements
and noted that additional negotiations may be necessary or appropriate as the
assets in the complex approached the $91 billion threshold. In light of this
assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting,
the ad hoc committee met with representatives of Nuveen to further discuss
modifications to the complex-wide fee schedule that would generate additional
savings for shareholders as the assets of the complex grow. The proposed terms
for the complex-wide fee schedule are expressed in terms of targeted cumulative
savings at specified levels of complex-wide assets, rather than in terms of
targeted marginal complex-wide fee rates. Under the modified schedule, the
schedule would generate additional fee savings beginning at complex-wide assets
of $80 billion in order to achieve targeted cumulative annual savings at $91
billion of $28 million on a complex-wide level (approximately $0.6 million
higher than those generated under the then current schedule) and generate
additional fee savings for asset growth above complex-wide assets of $91 billion
in order to achieve targeted annual savings at $125 billion of assets of
approximately $50 million on a complex-wide level (approximately $2.2 million
higher annually than that generated under the then current schedule). At the
July Meeting, the Board approved the modified complex-wide fee schedule for the
Original Investment Management Agreements and these same terms will apply to the
New Investment Management Agreements. Accordingly, the Board Members believe
that the breakpoint schedules and revised complex-wide fee schedule are
appropriate and desirable in ensuring that shareholders participate in the
benefits derived from economies of scale.
66
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that the Fund Adviser may receive as a result of its relationship with
the Funds, as described above. As the policies and operations of the Fund
Advisers are not anticipated to change significantly after the Transaction, such
indirect benefits should remain after the Transaction. The Board Members further
considered any additional indirect benefits to be received by the Fund Adviser
or its affiliates after the Transaction. The Board Members noted that other than
benefits from its ownership interest in Nuveen and indirect benefits from fee
revenues paid by the Funds under the management agreements and other
Board-approved relationships, it was currently not expected that MDP or its
affiliates would derive any benefit from the Funds as a result of the
Transaction or transact any business with or on behalf of the Funds (other than
perhaps potential Fund acquisitions, in secondary market transactions, of
securities issued by MDP portfolio companies); or that Merrill Lynch or its
affiliates would derive any benefits from the Funds as a result of the
Transaction (noting that, indeed, Merrill Lynch would stand to experience the
discontinuation of principal transaction activity with the Nuveen funds and
likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following with respect to the Funds:
- - Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. Section
15(f) provides, in substance, that when a sale of a controlling interest in an
investment adviser occurs, the investment adviser or any of its affiliated
persons may receive any amount or benefit in connection with the sale so long
as (i) during the three-year period following the consummation of a
transaction, at least 75% of the investment company's board of directors must
not be "interested persons" (as defined in the 1940 Act) of the investment
adviser or predecessor adviser and (ii) an "unfair burden" (as defined in the
1940 Act, including any interpretations or no-action letters of the SEC) must
not be imposed on the investment company as a result of the transaction
relating to the sale of such interest, or any express or implied terms,
conditions or understanding applicable thereto. In this regard, to help ensure
that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed
for a period of two years from the date of the closing of the Transaction (i)
not to increase gross management fees for any Nuveen fund; (ii) not to reduce
voluntary expense reimbursement levels for any Nuveen fund from their
currently scheduled prospective levels during that period; (iii) that no
Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use Merrill
Lynch as a broker with respect to portfolio transactions done on an agency
basis, except as may be approved in the future by the Compliance Committee of
the Board; and (iv) that each adviser/portfolio team affiliated with Nuveen
shall not cause the Funds (or sleeves thereof) and other Nuveen funds that the
team manages, as a whole, to enter into portfolio transactions with or through
the other minority owners of Nuveen, on either a principal or an agency basis,
to a significantly greater extent than both what one would expect an
investment team to use such firm in the normal course of business, and what
such team has historically done, without prior Board or Compliance Committee
approval (excluding the impact of proportionally increasing the use of such
other "minority owners" to fill the void necessitated by not being able to use
Merrill Lynch).
- - The Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Investment Management Agreements or New Sub-Advisory
Agreements (except for any costs attributed to seeking shareholder approvals
of Fund specific matters unrelated to the Transaction, such as approval of
Board Members or changes to investment policies, in which case a portion of
such costs will be borne by the applicable Funds).
- - The reputation, financial strength and resources of MDP.
- - The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
- - The benefits to the Nuveen funds as a result of the Transaction including: (i)
as a private company, Nuveen may have more flexibility in making additional
investments in its business; (ii) as a private company, Nuveen may be better
able to structure compensation packages to attract and retain talented
personnel; (iii) as certain of Nuveen's distribution partners are expected to
be equity or debt investors in Nuveen, Nuveen may be able to take advantage of
new or enhanced distribution arrangements with such partners; and (iv) MDP's
experience,
67
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
capabilities and resources that may help Nuveen identify and acquire
investment teams or firms and finance such acquisitions.
- - The historic premium and discount levels at which the shares of the Nuveen
funds have traded at specified dates with particular focus on the premiums and
discounts after the announcement of the Transaction, taking into consideration
recent volatile market conditions and steps or initiatives considered or
undertaken by NAM to address discount levels.
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Investment Management
Agreements and New Sub-Advisory Agreements are fair and reasonable, that the
fees therein are reasonable in light of the services to be provided to each Fund
and that the New Investment Management Agreements and New Sub-Advisory
Agreements should be approved and recommended to shareholders.
III. APPROVAL OF INTERIM CONTRACTS
As noted above, at the July Meeting, the Board Members, including the
Independent Board Members, unanimously approved the Interim Investment
Management Agreements and Interim Sub-Advisory Agreements. If necessary to
assure continuity of advisory services, the Interim Investment Management
Agreements and Interim Sub-Advisory Agreements will take effect upon the closing
of the Transaction if shareholders have not yet approved the New Investment
Management Agreements and New Sub-Advisory Agreements. The terms of each Interim
Investment Management Agreement and Interim Sub-Advisory Agreement are
substantially identical to those of the corresponding Original Investment
Management Agreement and New Investment Management Agreement and the Original
Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, except for
certain term and escrow provisions. In light of the foregoing, the Board
Members, including the Independent Board Members, unanimously determined that
the scope and quality of services to be provided to the Funds under the
respective Interim Investment Management Agreement and Interim Sub-Advisory
Agreement are at least equivalent to the scope and quality of services provided
under the applicable Original Investment Management Agreement and Original
Sub-Advisory Agreement.
IV. APPROVAL OF THE NEW GATEWAY SUB-ADVISORY AGREEMENTS ON BEHALF OF THE FUNDS
Following the May Meeting, the Board Members were advised of the potential
Gateway Transaction. As noted above, the completion of the Gateway Transaction
would terminate the Original Sub-Advisory Agreement with Gateway and NAM on
behalf of each Fund. Accordingly, at the July Meeting, the Board of each Fund,
including the Independent Board Members, unanimously approved the New Gateway
Sub-Advisory Agreement on behalf of each Fund.
In connection with their review of the New Gateway Sub-Advisory Agreements, the
Independent Board Members, through their independent legal counsel, requested in
writing and received information regarding the proposed Gateway Transaction and
its impact on the provision of services by Gateway to the Funds.
The Independent Board Members received, well in advance of the July Meeting,
materials provided by Gateway and Nuveen which outlined, among other things:
- - the structure and terms of the Gateway Transaction, including the ownership
structure of Natixis GAM following the closing of the Gateway Transaction and
the financing arrangements that will exist for New Gateway following the
Gateway Transaction;
- - the strategic plan for New Gateway following the Gateway Transaction;
- - background information regarding Natixis GAM, including its or its affiliates
experience providing advisory and/or sub-advisory services to registered
investment companies, financial condition, and regulatory or litigation
history;
68
- - any anticipated changes in the operations of Gateway following the Gateway
Transaction, including changes to Gateway's day-to-day management and
infrastructure that are relevant to the services provided to the Funds, the
ability to provide sub-advisory services to the Funds and to interact with
NAM, as Adviser to the Funds;
- - any changes or additions to senior management or the key personnel of Gateway
who work on Fund-related matters (including anticipated changes to portfolio
management and compliance personnel); any retention or incentive arrangements
for such persons; and, if new personnel are assigned to the Funds, their
experience and background;
- - any anticipated effect on each Fund's expense ratio (including changes to
sub-advisory fees) following the Gateway Transaction;
- - any benefits or undue burdens imposed on the Funds as a result of the Gateway
Transaction;
- - the nature, quality and extent of the sub-advisory services expected to be
provided to the Funds following the Gateway Transaction, changes to any
existing sub-advisory services and policies affecting the Funds, and any
cost-cutting efforts, if any, that may impact such services or policies;
- - whether the Gateway Transaction will result in an increase in assets to be
managed by the Funds' portfolio managers;
- - any conflicts of interest that may arise for Gateway or that Natixis GAM or
its affiliates may have with respect to the Funds;
- - the costs associated with obtaining necessary shareholder approvals, and who
would bear those costs; and
- - from legal counsel, a memorandum describing the applicable laws, regulations
and duties in approving advisory contracts, including, in particular, with
respect to a change of control.
At the July Meeting, representatives of Nuveen made a presentation and responded
to questions. Following the presentations and discussions of the materials
presented to the Board, the Independent Board Members met in executive session
with their counsel. As outlined in more detail below, the Independent Board
Members considered all factors they believed relevant with respect to each Fund,
including the impact that the Gateway Transaction could be expected to have on
the following: (a) the nature, extent and quality of services to be provided;
(b) the investment performance of the Funds; (c) the costs of the services and
profits to be realized by Gateway; (d) the extent to which economies of scale
would be realized; and (e) whether fee levels reflect those economies of scale
for the benefit of investors. As noted above, the Board Members had recently
completed their annual review of the Original Gateway Sub-Advisory Agreements at
the May Meeting and many of the factors considered at the annual review were
applicable to their evaluation of the New Gateway Sub-Advisory Agreements.
Accordingly, in evaluating the New Gateway Sub-Advisory Agreements, the Board
Members relied upon their knowledge and experience with Gateway and considered
the information received and their evaluations and conclusions drawn at the
annual review. The Independent Board Members evaluated all information available
to them on a Fund-by-Fund basis, and their determinations were made separately
in respect of each Fund.
A. NATURE, EXTENT & QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by New Gateway under the New Gateway Sub-Advisory Agreements, the
Independent Board Members considered, among other things, the expected impact,
if any, of the Gateway Transaction on the operations, facilities, organization
and personnel of Gateway; the potential implications of regulatory restrictions
on the Funds following the Gateway Transaction; the ability of New Gateway to
perform its duties after the Gateway Transaction; and any anticipated changes to
the current investment and other practices of the Funds.
The Board noted that the terms of each New Gateway Sub-Advisory Agreement,
including fees payable thereunder, are substantially identical to those of the
Original Gateway Sub-Advisory Agreement relating to the same Fund, except for
the date of effectiveness. The Board considered that the advisory services to be
provided by New Gateway to each Fund under the New Gateway Sub-Advisory
Agreements are the same as the
69
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
Original Gateway Sub-Advisory Agreements. The fees under the New Gateway
Sub-Advisory Agreements are the same as the Original Gateway Sub-Advisory
Agreements. (However, it was noted that because the sub-advisory fees for the
Nuveen Equity Premium Income Fund and Nuveen Equity Premium Opportunity Fund are
based on a percentage of the advisory fee to NAM, the modified complex-wide fee
schedule described above will also impact the sub-advisory fees to be collected
by Gateway.) The Board Members further noted that all of Gateway's senior
management staff will continue to serve in their current capacities following
the Gateway Transaction. The Board Members noted that the investment team is
expected to remain in place under extended-term employment agreements. The Board
Members considered and are familiar with such personnel's qualifications, skills
and experience. Further, the Board Members noted that changes to Gateway's
infrastructure relevant to the services provided to the Funds were not planned
or anticipated. New Gateway will continue to operate as a separate, stand-alone
registered investment adviser, independent from Natixis GAM's other investment
management affiliates. The Board Members also noted that there were not any
planned "cost cutting" measures that could be expected to reduce the nature,
extent, or quality of sub-advisory services provided to the Funds. After
consideration of the foregoing, the Board Members concluded that no diminution
in the nature, quality and extent of services provided to the Funds and their
shareholders is expected.
In addition to the above, the Board Members considered potential changes in the
operations of the Funds. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
affiliated persons. The Board Members noted Gateway's representations that it
will implement policies and procedures to prevent trading with affiliated firms
on behalf of the Funds, but does not expect the foregoing to have any impact as
the firms that will be affiliated with New Gateway generally are not common
trading partners used for the Funds. In addition to regulatory restrictions
considered by the Board, the Board Members also considered whether a significant
increase in assets under management could impact the management of the Funds.
While New Gateway will continue to seek increases in assets under management,
due to the depth of volume in the markets its strategy operates, Gateway did not
believe a significant increase in assets under management would affect its
capacity to manage the Funds. The Board Members also considered potential
conflicts of interest that could arise between the Funds and the various parties
to the Gateway Transaction, noting that Gateway did not believe any conflict of
interest arose as a result of the Gateway Transaction.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Gateway Transaction was not expected
to adversely affect the nature, quality or extent of services provided and that
the expected nature, quality and extent of such services supported approval of
the New Gateway Sub-Advisory Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Gateway Transaction.
In addition, the Board Members recently reviewed the Funds' performance at the
May Meeting as described above and determined that such performance was
satisfactory or better. Further, the investment policies and strategies were not
expected to change as a result of the Gateway Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Gateway Sub-Advisory
Agreements.
C. FEES, EXPENSES & PROFITABILITY
As described in more detail above, during the annual review the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
The Board also considered the sub-advisory arrangements of the Funds. In
considering the fees of Gateway at the annual review, the Board Members
considered the pricing schedule or fees that Gateway
70
charges for similar investment management services for other fund sponsors or
clients, as available. The Board also noted that as Gateway is unaffiliated with
Nuveen, the sub-advisory fees were the result of arms' length negotiations. At
the annual review, the Board Members determined that the Funds' advisory fees
and expenses were reasonable. In evaluating the sub-advisory fees and
profitability of Gateway under the New Gateway Sub-Advisory Agreements, the
Board Members considered their prior conclusions at the annual review and
whether the sub-advisory fees or other expenses would change as a result of the
Gateway Transaction. As noted, the sub-advisory fee schedules under each New
Gateway Sub-Advisory Agreement are the same as those of the Original Gateway
Sub-Advisory Agreement relating to the same Fund. Based on information provided,
the Board does not anticipate that the Gateway Transaction will have any effect
on the Funds' expense ratios. In light of the foregoing and taking into
consideration the Board's prior evaluation of fees and expenses at the annual
renewal, the Board determined that the sub-advisory fees and expenses were
reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Gateway Transaction on Gateway's profitability, at the recent annual review, the
Board Members were satisfied that the level of profitability for its sub-
advisory activities was reasonable. As noted, there is no change to the
sub-advisory fee schedule for the Funds. Further, as New Gateway will continue
to operate as an autonomous organization, separate and distinct from Natixis
GAM's other investment management affiliates, no economies of scale relating to
the provision of sub-advisory services to the Funds are anticipated in
connection with the Gateway Transaction. Based on their review and given their
considerations at the annual review, the Board Members were satisfied that
Gateway's level of profitability for its sub-advisory activities continues to be
reasonable.
D. ECONOMIES OF SCALE & WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
As noted, New Gateway will continue to operate as an autonomous entity, separate
from other Natixis GAM's other investment management affiliates. Accordingly
economies of scale were not anticipated to be achieved in connection with the
Gateway Transaction. In addition, the Board Members have been cognizant of the
benefits from economies of scale and considered the breakpoint schedule in the
New Gateway Sub-Advisory Agreements. In addition, as described above, the Board
has also adopted a complex-wide fee arrangement to provide additional savings
for shareholders as assets in the complex grow. At the July Meeting, the Board
recently approved a modified complex-wide fee schedule as described above under
Section II, Paragraph D: "Approval of the New Investment Management Agreements
and New Sub-Advisory Agreements -- Economies of Scale and Whether Fee Levels
Reflect These Economies of Scale." Accordingly, the Board Members believe that
the breakpoint schedules and revised complex-wide fee schedule are appropriate
and desirable in ensuring that shareholders participate in the benefits derived
from economies of scale.
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that Gateway may receive as a result of its relationship with the
Funds. As the policies and operations of Gateway are not anticipated to change
significantly after the Gateway Transaction, such indirect benefits should
remain after the Gateway Transaction. In this regard, the Board Members
considered, among other things, whether Gateway received any benefits from soft
dollar arrangements. The Board has noted that, while Gateway may select brokers
that provide it with research services, it is Gateway's current practice not to
receive soft dollar credits in connection with trades executed for the Funds it
advises but it may seek to do so in the future. The Board Members further
considered any additional indirect benefits to be received by Gateway or its
affiliates after the Gateway Transaction. The Board Members noted that it was
not expected that Natixis GAM would receive any direct benefits from the Funds
as a result of the Gateway Transaction. Gateway does not currently trade
securities for the Funds with any affiliate of Gateway or Natixis GAM and has
represented that it has no intention to do so in the future. Other than
Gateway's sub-advisory relationship with the Funds, Gateway and Natixis GAM have
no other current or anticipated relation with the Funds.
71
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following:
- - the Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Gateway Sub-Advisory Agreements;
- - the reputation, financial strength and resources of Natixis GAM; and
- - the philosophy of Natixis GAM to permit Gateway to continue to operate
independently, permitting Gateway to manage the Funds in the same manner as
currently done.
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Gateway Sub-Advisory
Agreements are fair and reasonable, that the sub-advisory fees therein are
reasonable in light of the services to be provided to each Fund and that the New
Gateway Sub-Advisory Agreements be approved and recommended to shareholders.
72
Reinvest Automatically
EASILY and CONVENIENTLY
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price 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.
73
FLEXIBLE
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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
74
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
Market Yield (also known as Dividend Yield or Current Yield): Market yield is
based on the Fund's current annualized monthly distribution divided by the
Fund's current market price. The Fund's monthly distributions to its
shareholders may be comprised of ordinary income, net realized capital gains
and, if at the end of the calendar year the Fund's cumulative net ordinary
income and net realized gains are less than the amount of the Fund's
distributions, a tax return of capital.
Net Asset Value (NAV): A Fund's common share NAV per share 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.
75
NOTES
76
NOTES
77
NOTES
78
OTHER USEFUL INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
most recent 12-month period ended June 30, 2006, and (iii) a description of the
policies and procedures that the Funds used to determine how to vote proxies
relating to portfolio securities are available without charge, upon request, by
calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
Reference Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
Board of Trustees
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
PriceWaterhouseCoopers LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the
future at such times and in such amounts as is deemed advisable. No
shares were repurchased during the period covered by this report. Any
future repurchases will be reported to shareholders in the next
annual or semi-annual report.
79
Nuveen Investments:
- -----------------------------------------------------------------------
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.
We offer many different investing solutions for our clients' different needs.
Managing $172 billion in assets, as of June 30, 2007, 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 six
distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
ESA-D-0607D
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(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 second fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(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 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(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 1940 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 Equity Premium Advantage Fund
By (Signature and Title)* /s/ Kevin J. McCarthy
---------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: September 6, 2007
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: September 6, 2007
By (Signature and Title)* /s/ Stephen D. Foy
---------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: September 6, 2007
* Print the name and title of each signing officer under his or her signature.