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 811-21449
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Nuveen Municipal High Income Opportunity Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: October 31, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report October 31, 2009
----------------- ----------------- ---------------- ----------------
NUVEEN INVESTMENT NUVEEN SELECT NUVEEN QUALITY NUVEEN PREMIER
QUALITY MUNICIPAL QUALITY MUNICIPAL INCOME MUNICIPAL MUNICIPAL INCOME
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
NQM NQS NQU NPF
----------------- ------------------
NUVEEN MUNICIPAL NUVEEN MUNICIPAL
HIGH INCOME HIGH INCOME
OPPORTUNITY FUND OPPORTUNITY FUND 2
NMZ NMD
OCTOBER 09
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LOGO: NUVEEN INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year continues to recede but there is concern about the impact of a
reduction in official liquidity support programs. The major institutions that
are the linchpin of the international financial system have strengthened their
capital structures, but many still struggle with losses in their various
portfolios. Global trends include increasing trade and concern about the ability
of the U.S. government to address its substantial budgetary deficits.
While the fixed-income and equity markets have recovered from the lows recorded
in the first quarter of 2009, identifying those developments that will define
the future is never easy, and rarely is it more difficult than at present. A
fundamental component of a successful investment program is a commitment to
remain focused on long-term investment goals even during periods of heightened
market uncertainty. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of 2009 as part of the annual management
contract renewal process. I encourage you to read the description of this
process in the Annual Investment Management Agreement Approval Process section
of this report. Confirming the appropriateness of a long term investment
strategy is as important for our shareholders as it is for our professional
investment managers. For that reason, I again encourage you to remain in
communication with your financial consultant on this subject.
In September 2009, Nuveen completed the refinancing at par of all the auction
rate preferred shares issued by its taxable closed-end funds. On October 15,
Nuveen announced the first successful offering of an issue of MuniFund Term
Preferred Shares. This new form of preferred securities joins the Variable Rate
Demand Preferred securities as vehicles for refinancing existing municipal fund
auction rate preferred shares (ARPS). By the beginning of December 2009, six of
the leveraged municipal closed-end funds had redeemed all of their outstanding
ARPS. Nuveen remains committed to resolving the issues connected with
outstanding auction rate preferred shares. Please consult the Nuveen web site
for the most recent information on this issue and all recent developments on
your Nuveen Funds at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
---------------------------
Robert P. Bremner
Chairman of the Board
December 21, 2009
Nuveen Investments 1
Portfolio Managers' Comments
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Nuveen Municipal High Income Opportunity Fund (NMZ)
Nuveen Municipal High Income Opportunity Fund 2 (NMD)
Portfolio managers Tom Spalding, Paul Brennan, John Miller and Johnathan Wilhelm
discuss U.S. economic and municipal market conditions, key investment
strategies, and the twelve-month performance of these six Funds. A 33-year
veteran of Nuveen, Tom has managed NQS and NQU since 2003. With 20 years of
industry experience, including twelve years at Nuveen, Paul assumed portfolio
management responsibility for NPF in 2006. John, who has 15 years of municipal
market experience, has managed NMZ since its inception in 2003. Johnathan, who
joined Nuveen in 2001 with 20 years of industry experience, served as
co-portfolio manager of NMD beginning in 2007 and assumed full portfolio
management responsibility for this Fund as well as for NQM in March 2009.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2009?
During this reporting period, municipal bond prices generally rose as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions. As the
period began, there continued to be considerable downward pressure on the
economy. In an effort to improve conditions, the Federal Reserve (Fed) lowered
the fed funds rate to a target range of zero to 0.25% in December 2008, the
lowest level on record. In February 2009, the federal government augmented its
efforts to boost the economy by passing a $787 billion stimulus package, which
joined the $700 billion financial industry rescue package it had passed in late
2008. In March 2009, the Fed announced in addition to maintaining the current
rate, it would buy $300 billion in long-term Treasury securities and up to an
additional $750 billion (for a total of $1.25 trillion) in agency
mortgage-backed securities to bolster the credit and housing markets.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS.
DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT
INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING
STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO
MANAGERS AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR
OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY
FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO
CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS
DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING
STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
In recent months, the measures taken by the Fed and the others to ease the
economic recession have produced some incipient signs of improvement. In the
third quarter of 2009, the U.S. gross domestic product (GDP) posted positive
growth (2.8% annualized) for the first time since the second quarter of 2008.
Housing prices also provided something of a bright spot between June and
September 2009 by recording four consecutive months of positive returns, the
first following three years of decline. At the same time, inflation remained
muted, as the Consumer Price Index (CPI), reflecting a 14% drop in energy
prices, fell 0.2% year-over-year as of October 2009. This marked the seventh
straight month that consumer prices dropped from their levels of a year earlier,
the longest such decline since 1954-1955. The core CPI (which excludes food and
energy) rose 1.7% over the year, within the Fed's unofficial objective of 2.0%
or lower for this measure. However, the economy continued to be stressed by
weakness in the labor markets. October 2009 marked the 22nd consecutive month of
net job losses, with a total of 7.3 million jobs lost since the recession began
in December 2007. This is the biggest decline since the Great Depression. The
national unemployment rate for October 2009 was 10.2%, a 26-year high, up from
6.6% in October 2008.
Municipal market conditions began to show general signs of improvement in
mid-December 2008, and municipal bonds continued to improve throughout most of
2009. This trend was bolstered by the reduced supply of tax-exempt municipal
debt in the marketplace, due in part to the introduction of the Build America
Bond program in April 2009. Build America Bonds are a new class of taxable
municipal debt created as part of the February 2009 economic stimulus package.
These bonds offer municipal issuers a federal subsidy equal to 35% of the
security's interest payments, and therefore provide issuers with an attractive
alternative to traditional tax-exempt debt. As of October 31, 2009, taxable
Build America Bonds issuance totaled $48.5 billion, accounting for almost 20% of
new bonds issued in the municipal market during the period since their
introduction.
Over the twelve months ended October 31, 2009, tax-exempt municipal bond
issuance nationwide totaled $404.5 billion, a drop of approximately 10% compared
with the twelve-month period ended October 31, 2008. As mentioned earlier,
demand was strong, especially on the part of individual investors and
broker/dealers. The combination of lower tax-exempt supply and increased demand
provided support for municipal bond prices.
Nuveen Investments 3
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS?
During the majority of this twelve-month period, the tax-exempt municipal bond
market was characterized by strong demand, constrained supply and generally
improving valuations.
In this environment, our trading activity continued to focus on finding relative
value by taking a bottom-up approach to discover undervalued sectors and
individual credits with the potential to perform well over the long term. In
NQM, we added to our holdings of credits rated A and BBB and, to a lesser
degree, non-rated and sub-investment grade bonds. These additions to our
portfolio, which we purchased in both the primary and secondary markets, tended
to have maturities at the longer end of the yield curve, specifically 20 to 30
years. From a sector perspective, we emphasized hospital and industrial
development revenue (IDR) bonds, both of which we believed to be significant
areas of opportunity. While the overall supply of new tax-exempt bonds declined,
supply was more plentiful in the health care sector because hospitals generally
do not qualify for the Build America Bond program and so must continue to issue
bonds in the tax-exempt municipal market. In addition, many hospitals were
issuing fixed rate bonds during this period in order to refinance and retire
outstanding debt that had initially been issued as variable rate debt.
In NQS and NQU, our focus was generally on purchasing investment-grade quality
bonds offering good call protection. Many of the additions to our portfolio were
in the health care sector, primarily bonds rated AA, A or BBB. In NPF, we
purchased bonds with longer maturities in two categories: essential services and
health care. In essential services, our purchases included bonds such as those
issued for water and sewer projects, utilities, schools and roads. In the health
care sector, most were rated AA or A.
In NMZ and NMD, which were established as high-yield funds that can invest up to
50% of their portfolios in sub-investment-grade quality municipal credits, our
primary emphasis remained on bottom-up credit analysis and selection, which we
believe are critical in the high-yield segment of the market. During this
period, NMZ also emphasized the selective buying of bonds that had been battered
by the challenging market environment of 2008, which we found in sectors such as
hospitals and industrial development revenue (IDR) bonds. Two other areas of the
market that we believed to be undervalued were community development districts
(CDD) and natural gas pre-payment contract bonds. CDD bonds have been impacted
by the decline of the housing market as well as weaker demand, particularly from
retail buyers. Natural gas pre-payment contract bonds, which are used by
municipal utilities to prepay for gas supplies to be delivered over a long
period of time, are backed by a combination of public gas distribution systems
and major financial institutions. As a result, these bonds suffered during the
downturn in the financial sector. In general, we were buying bonds rated BBB
that had better known names and relatively stable track records, all of which
enhanced the liquidity of the bonds we purchased. We also maintained our
positions in bonds that we believed were good long-term holds with stable to
improving credit fundamentals.
4 Nuveen Investments
In NMD, we also found attractive opportunities to increase the Fund's exposure
to gas pre-payment bonds as well as special tax issues and bonds issued for
charter and private schools. In addition, we reduced our exposure to health
care, where we thought NMD had become too heavily weighted.
Cash for new purchases during this period was generated largely by maturing or
called bonds and sinking fund proceeds. In addition, NPF sold some credits with
shorter maturities, including pre-refunded bonds. In NQM, we sold bonds that we
believed did not have much capacity for further price appreciation, including
pre-refunded bonds and bonds that were running up close to their call dates. NMD
also sold holdings where we wanted to reduce exposure to an individual issuer or
where there was a changing credit outlook. Additionally, NMD took advantage of
strong bids to sell selected bonds that were attractive to the market and
reinvested the proceeds in bonds with higher yields. While there was
considerable issuance of Build America Bonds over the last half of this period,
these bonds do not represent good investment opportunities for all these Funds
because their interest payments are considered taxable income.
All of these Funds continued to use inverse floating rate securities(1) as a
form of leverage for a variety of reasons, including duration management, income
enhancement and total return enhancements. NPF, NMZ and NMD also invested in
additional types of derivative instruments(2) designed to help shorten duration
and moderate interest rate risk. In NPF, these derivatives were removed early in
the reporting period, while NMZ and NMD continued to use derivatives as of
October 31, 2009.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE
FOR PERIODS ENDED 10/31/09
1-YEAR 5-YEAR 10-YEAR
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NQM 24.35% 3.63% 6.43%
NQS 25.67% 3.89% 6.50%
NQU 19.58% 3.83% 6.12%
NPF 25.53% 3.02% 5.79%
Standard & Poor's (S&P) National Municipal Bond Index(3) 14.15% 4.04% 5.61%
Lipper General Leveraged Municipal Debt Funds Average(4) 26.02% 3.32% 6.02%
NMZ 30.90% 2.20% N/A
NMD 32.43% N/A N/A
Standard & Poor's (S&P) High-Yield Municipal Bond Index(5) 18.17% 2.93% 4.56%
Lipper High-Yield Municipal Debt Funds Average(4) 24.22% 3.30% 4.65%
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(1) An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
(2) Each Fund may invest in derivative instruments such as forwards, futures,
options and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements and Notes to Financial Statements sections of this report.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(3) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
(4) The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 1- year, 54 funds; 5-year, 52 funds; and 10-year, 38 funds.
The Lipper High-Yield Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 1-year, 15 funds; 5-year, 14 funds; and 10-year, 11 funds. Fund
and Lipper returns assume reinvestment of dividends. You cannot invest
directly in a Lipper Average.
(5) The Standard & Poor's (S&P) High-Yield Municipal Bond Index comprises all
of the bonds in the S&P National Municipal Bond Index that are non-rated
or rated BB+ by S&P and/or Ba1 by Moody's or lower. The index does not
contain bonds that are pre-refunded or escrowed to maturity. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
Nuveen Investments 5
For the twelve months ended October 31, 2009, the total returns on common share
net asset value (NAV) for NQM, NQS, NQU and NPF exceeded the returns for the
Standard & Poor's (S&P) National Municipal Bond Index. These four Funds
underperformed the average return for the Lipper General Leveraged Municipal
Debt Funds Average. Both NMZ and NMD outperformed the returns for the S&P
High-Yield Municipal Bond Index and the Lipper High-Yield Municipal Debt Funds
Average.
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, leverage was an important, positive factor affecting
the Funds' performances over this period. The impact of leverage is discussed in
more detail on page seven.
During this period, yields on tax-exempt bonds generally declined and bond
prices rose, especially at the longer end of the municipal yield curve. As a
result, longer-term bonds generally outperformed credits with shorter
maturities. In general, the greater a Fund's exposure to the longer part of the
yield curve, the greater the positive impact on the Fund's return. Overall, NQM,
NQS and NPF, which had relatively more exposure to the longer end of the curve,
were better positioned in terms of duration than NQU, which had the shortest
duration among these four Funds. Both NMZ and NMD also had heavy allocations of
bonds with longer maturities, with NMZ having the longer duration of the two.
As mentioned earlier, our duration strategies in NPF, NMZ and NMD included using
derivative positions to synthetically reduce the duration of these three Funds
and moderate their interest rate risk. In NMZ and NMD, these derivatives
performed poorly and actually had a slight negative impact on the overall strong
total return performance of these Funds. Because the derivative positions in NPF
were removed shortly after the beginning of this reporting period, they had a
negligible impact on this Fund's performance.
While yield curve positioning and duration played important roles in
performance, credit exposure was also a significant factor. As noted earlier,
demand for municipal bonds increased among both institutional and individual
investors during this period. This increase was driven by a variety of factors,
including concerns about potential tax increases, the need to rebalance
portfolio allocations, and a growing appetite for additional risk. At the same
time, the supply of new tax-exempt municipal securities declined. As investors
bid up municipal bond prices, bonds rated BBB or below and non-rated bonds
generally outperformed those rated AAA. In this environment, allocations of
bonds rated BBB or below and non-rated bonds generally made positive relative
contributions to the Funds' performances. In addition, NQU's overall higher
credit quality (as measured by its allocation of AAA bonds) hampered the Fund's
performance in the market environment of the past twelve months.
6 Nuveen Investments
Holdings that generally contributed positively to the Funds' performances
included industrial development revenue (IDR), housing and health care bonds as
well as education, water and sewer, transportation and special tax bonds. Zero
coupon bonds and credits backed by the 1998 master tobacco settlement agreement
also posted strong returns.
In NMZ, some of the bonds we purchased during this period to take advantage of
opportunities that we believed were undervalued performed very well following
their addition to our portfolio. Examples of these bonds included Harmony
Community Development District in Florida; Sullivan County Health for the
Wellmont Health System in Tennessee; Tennessee Energy Acquisition Corporation, a
natural gas prepayment contract bond backed by Goldman Sachs; and Westlake
Chemical in Louisiana, an IDR bond.
Pre-refunded bonds, which are often backed by U.S. Treasury securities and which
had been one of the top performing segments of the municipal bond market over
the past two years performed poorly during this period. The underperformance of
these bonds can be attributed primarily to their shorter effective maturities
and higher credit quality. As of October 31, 2009, holdings of pre-refunded
bonds ranged from approximately 16% to 35% among NQM, NQS, NQU and NPF, with NQU
having the heaviest weighting and NPF the smallest. NMZ held just over 1% of its
portfolio in pre-refunded issues, while NMD did not hold any of these bonds.
Since pre-refunded bonds tend to be shorter duration, higher quality bonds, they
generally do not fit the profiles of longer-term, higher-yielding Funds such as
NMZ and NMD.
Other market segments that detracted from performance included resource
recovery, leasing, and electric utilities, the only three revenue sectors that
failed to outperform the overall municipal market during this period. Many
general obligation bonds also failed to keep pace with the overall municipal
market.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative index was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
risk-- especially when market conditions are unfavorable. For example, as the
prices of securities held by a Fund decline, the negative impact of these
valuation changes on common share net asset value and common shareholder total
return is magnified by the use of leverage. Conversely, leverage may enhance
common share returns during periods when bond prices generally are rising. Over
the early part of this period, leverage hampered the performance of the Funds
using this strategy. However, leverage made a significant positive contribution
to those Funds returns over much of 2009, which can be seen in their
twelve-month performances shown on page five.
Nuveen Investments 7
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of October 31, 2009, some Funds have issued Variable Rate
Demand Preferred Shares, but these issuances have been limited since it has been
difficult to find liquidity facilities on economically viable terms given the
constrained credit environment. Some Funds also have issued MuniFund Term
Preferred (MTP), a fixed-rate form of preferred stock with a mandatory
redemption period of five years. However, the Funds cannot provide any assurance
on when the remaining outstanding auction rate preferred shares might be
redeemed.
8 Nuveen Investments
As of October 31, 2009, the amount of auction rate preferred securities redeemed
by the Funds are as shown in the accompanying table. As noted previously, NMD is
an unleveraged Fund.3
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NQM $ 90,300,000 30.0%
NQS $ 27,725,000 9.9%
NQU $ 65,125,000 14.4%
NPF $ 38,150,000 23.1%
NMZ $ 60,000,000 38.7%
--------------------------------------------------------------------------------
As of October 31, 2009, 75 out of the 88 Nuveen closed-end municipal funds that
had issued auction rate preferred shares have redeemed, at par, all or a portion
of these shares. These redemptions bring the total amount of Nuveen's municipal
closed-end funds' auction rate preferred share redemptions to approximately $2.4
billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 9
Common Share Dividend and Share Price Information
During the twelve-month reporting period ended October 31, 2009, NQU and NPF
each had three monthly dividend increases and NQM and NQS each had two
increases. The dividends of NMZ and NMD remained stable throughout the reporting
period.
Due to normal portfolio activity, common shareholders of the following Funds
received capital gains and/or net ordinary income distributions at the end of
December 2008 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME FUND
FUND (PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQM $ 0.0299 $ 0.0021
NMZ -- $ 0.0391
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of October 31, 2009, all of
the Funds in this report had positive UNII balances for both tax and financial
statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of October 31, 2009, NPF has cumulatively repurchased common shares as shown
in the accompanying table. Since the inception of the Funds' repurchase program,
NQM, NQS, NQU, NMZ and NMD have not repurchased any of their outstanding common
shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NPF 202,500 1.0%
--------------------------------------------------------------------------------
10 Nuveen Investments
During the twelve-month reporting period, NPF's common shares were repurchased
at a weighted average price and a weighted average discount per common share as
shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NPF $ 10.51 17.21%
--------------------------------------------------------------------------------
As of October 31, 2009, the Funds' common share prices were trading at (+)
premiums or (-) discounts to their common share NAVs as shown in the
accompanying table.
10/31/09 TWELVE-MONTH AVERAGE
FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT
--------------------------------------------------------------------------------
NQM -7.92% -8.99%
NQS -2.62% -4.99%
NQU -7.21% -7.42%
NPF -10.53% -11.36%
NMZ +6.62% +11.74%
NMD +4.69% +10.89%
--------------------------------------------------------------------------------
Nuveen Investments 11
NQM Performance OVERVIEW | Nuveen Investment Quality Municipal Fund, Inc. as of
October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.13
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.26
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.92%
--------------------------------------------------------------------------------
Market Yield 6.40%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.89%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 510,910
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.42
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.68
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/21/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 31.77% 24.35%
--------------------------------------------------------------------------------
5-Year 3.23% 3.63%
--------------------------------------------------------------------------------
10-Year 6.48% 6.43%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 13.4%
--------------------------------------------------------------------------------
New York 10.6%
--------------------------------------------------------------------------------
Texas 9.8%
--------------------------------------------------------------------------------
Illinois 6.9%
--------------------------------------------------------------------------------
Minnesota 4.8%
--------------------------------------------------------------------------------
District of Columbia 4.7%
--------------------------------------------------------------------------------
Washington 3.8%
--------------------------------------------------------------------------------
Florida 3.8%
--------------------------------------------------------------------------------
Georgia 3.2%
--------------------------------------------------------------------------------
Michigan 2.7%
--------------------------------------------------------------------------------
Colorado 2.4%
--------------------------------------------------------------------------------
Wisconsin 2.4%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
Massachusetts 2.2%
--------------------------------------------------------------------------------
Nevada 2.1%
--------------------------------------------------------------------------------
Pennsylvania 1.9%
--------------------------------------------------------------------------------
Tennessee 1.8%
--------------------------------------------------------------------------------
South Carolina 1.7%
--------------------------------------------------------------------------------
Other 19.6%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 22.9%
--------------------------------------------------------------------------------
Health Care 16.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.5%
--------------------------------------------------------------------------------
Transportation 10.9%
--------------------------------------------------------------------------------
Tax Obligation/General 10.8%
--------------------------------------------------------------------------------
Water and Sewer 7.3%
--------------------------------------------------------------------------------
Utilities 5.7%
--------------------------------------------------------------------------------
Other 11.3%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 40%
AA 19%
A 26%
BBB 11%
BB or Lower 1%
N/R 3%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Nov $ 0.0625
Dec 0.0625
Jan 0.0625
Feb 0.0625
Mar 0.0625
Apr 0.0625
May 0.0635
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.0700
Oct 0.0700
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 10.93
11.65
10.95
9.56
10.88
10.45
9.33
9.96
9.89
10.91
11.85
12.00
11.90
12.15
12.27
12.17
10.80
11.73
11.25
11.62
11.64
11.89
11.98
11.95
12.04
12.20
12.23
12.28
12.38
12.54
12.49
12.59
12.05
12.09
12.40
12.40
12.43
12.53
12.67
12.79
12.79
12.57
12.81
12.98
13.30
13.60
13.64
13.82
13.93
13.74
13.17
13.21
10/31/09 13.13
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0320 per share.
12 Nuveen Investments
NQS Performance OVERVIEW | Nuveen Select Quality Municipal Fund, Inc. as of
October 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 41%
AA 14%
A 25%
BBB 17%
BB or Lower 2%
N/R 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0670
Dec 0.0670
Jan 0.0670
Feb 0.0670
Mar 0.0670
Apr 0.0670
May 0.0740
Jun 0.0740
Jul 0.0740
Aug 0.0740
Sep 0.0750
Oct 0.0750
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.07
11.76
11.16
9.39
10.36
9.34
9.20
10.30
10.01
10.72
11.75
12.00
11.67
11.98
12.40
12.26
10.82
11.38
10.96
11.38
11.61
11.59
11.54
11.50
11.75
11.78
12.22
12.48
12.88
12.82
12.96
13.07
12.82
12.89
12.70
12.88
13.30
13.20
13.22
13.27
13.47
13.43
13.50
13.61
13.91
14.07
14.38
14.16
14.37
14.62
13.73
13.93
10/31/09 13.77
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.77
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.14
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.62%
--------------------------------------------------------------------------------
Market Yield 6.54%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.08%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 481,233
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.98
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.34
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 34.19% 25.67%
--------------------------------------------------------------------------------
5-Year 4.21% 3.89%
--------------------------------------------------------------------------------
10-Year 7.22% 6.50%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 9.8%
--------------------------------------------------------------------------------
Texas 9.6%
--------------------------------------------------------------------------------
Colorado 7.4%
--------------------------------------------------------------------------------
New York 5.5%
--------------------------------------------------------------------------------
New Jersey 5.2%
--------------------------------------------------------------------------------
South Carolina 5.1%
--------------------------------------------------------------------------------
Michigan 4.4%
--------------------------------------------------------------------------------
Ohio 4.1%
--------------------------------------------------------------------------------
Nevada 3.8%
--------------------------------------------------------------------------------
California 3.5%
--------------------------------------------------------------------------------
New Mexico 3.3%
--------------------------------------------------------------------------------
North Carolina 3.2%
--------------------------------------------------------------------------------
Washington 3.0%
--------------------------------------------------------------------------------
Tennessee 2.9%
--------------------------------------------------------------------------------
Utah 2.7%
--------------------------------------------------------------------------------
Florida 2.5%
--------------------------------------------------------------------------------
Indiana 2.0%
--------------------------------------------------------------------------------
Arizona 1.9%
--------------------------------------------------------------------------------
Alabama 1.9%
--------------------------------------------------------------------------------
Other 18.2%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 27.5%
--------------------------------------------------------------------------------
Health Care 14.8%
--------------------------------------------------------------------------------
Utilities 14.5%
--------------------------------------------------------------------------------
Transportation 13.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.6%
--------------------------------------------------------------------------------
Tax Obligation/General 8.0%
--------------------------------------------------------------------------------
Consumer Staples 5.3%
--------------------------------------------------------------------------------
Other 7.3%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 13
NQU Performance OVERVIEW | Nuveen Quality Income Municipal Fund, Inc. as of
October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.26
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.29
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.21%
--------------------------------------------------------------------------------
Market Yield 6.52%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.06%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 774,982
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.74
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.98
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 21.10% 19.58%
--------------------------------------------------------------------------------
5-Year 3.96% 3.83%
--------------------------------------------------------------------------------
10-Year 5.93% 6.12%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 10.2%
--------------------------------------------------------------------------------
New York 10.0%
--------------------------------------------------------------------------------
Texas 9.6%
--------------------------------------------------------------------------------
California 8.9%
--------------------------------------------------------------------------------
Washington 6.8%
--------------------------------------------------------------------------------
South Carolina 5.2%
--------------------------------------------------------------------------------
Massachusetts 4.7%
--------------------------------------------------------------------------------
Ohio 3.7%
--------------------------------------------------------------------------------
Puerto Rico 3.6%
--------------------------------------------------------------------------------
Colorado 3.4%
--------------------------------------------------------------------------------
Nevada 3.4%
--------------------------------------------------------------------------------
New Jersey 3.3%
--------------------------------------------------------------------------------
Pennsylvania 2.7%
--------------------------------------------------------------------------------
Louisiana 2.3%
--------------------------------------------------------------------------------
Oklahoma 2.3%
--------------------------------------------------------------------------------
Other 19.9%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 34.1%
--------------------------------------------------------------------------------
Tax Obligation/General 15.3%
--------------------------------------------------------------------------------
Transportation 11.9%
--------------------------------------------------------------------------------
Utilities 10.9%
--------------------------------------------------------------------------------
Health Care 8.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 7.3%
--------------------------------------------------------------------------------
Other 12.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 53%
AA 16%
A 22%
BBB 7%
BB or Lower 1%
N/R 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0630
Dec 0.0630
Jan 0.0630
Feb 0.0630
Mar 0.0650
Apr 0.0650
May 0.0685
Jun 0.0685
Jul 0.0685
Aug 0.0685
Sep 0.0720
Oct 0.0720
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.24
11.70
11.74
10.45
11.00
10.38
9.47
10.44
10.57
11.87
12.26
12.04
12.10
12.21
12.63
12.43
11.27
11.97
11.54
11.88
11.98
12.18
12.02
12.23
12.30
12.54
12.69
13.04
12.83
12.80
12.66
12.69
12.35
12.43
12.73
12.80
13.05
13.15
13.35
13.31
13.25
13.09
13.29
13.44
13.69
13.72
13.92
13.87
13.99
14.01
13.37
13.60
10/31/09 13.26
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NPF Performance OVERVIEW | Nuveen Premier Municipal Income Fund, Inc. as of
October 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S.
Guaranteed 25%
AA 32%
A 30%
BBB 12%
BB or Lower 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0590
Apr 0.0590
May 0.0630
Jun 0.0630
Jul 0.0630
Aug 0.0630
Sep 0.0660
Oct 0.0660
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 9.93
10.72
10.22
9.15
9.46
8.63
8.24
9.18
9.61
10.34
11.13
11.49
11.22
11.18
11.74
11.56
10.63
11.09
10.49
10.86
10.96
11.17
11.34
11.23
11.44
11.61
11.68
11.87
12.04
12.01
11.96
12.01
11.57
11.60
11.67
11.64
11.79
11.98
12.02
12.22
12.25
12.24
12.65
12.53
12.76
13.01
13.31
13.38
13.42
13.18
12.66
12.67
10/31/09 12.40
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.40
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.86
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -10.53%
--------------------------------------------------------------------------------
Market Yield 6.39%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.88%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 275,671
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.09
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.97
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 31.11% 25.53%
--------------------------------------------------------------------------------
5-Year 2.81% 3.02%
--------------------------------------------------------------------------------
10-Year 5.73% 5.79%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 12.7%
--------------------------------------------------------------------------------
New York 12.2%
--------------------------------------------------------------------------------
Colorado 7.0%
--------------------------------------------------------------------------------
Illinois 6.6%
--------------------------------------------------------------------------------
South Carolina 5.1%
--------------------------------------------------------------------------------
Arizona 4.7%
--------------------------------------------------------------------------------
Texas 4.6%
--------------------------------------------------------------------------------
Washington 4.1%
--------------------------------------------------------------------------------
Louisiana 3.9%
--------------------------------------------------------------------------------
Wisconsin 3.7%
--------------------------------------------------------------------------------
New Jersey 3.4%
--------------------------------------------------------------------------------
Minnesota 2.8%
--------------------------------------------------------------------------------
Georgia 2.7%
--------------------------------------------------------------------------------
North Carolina 2.6%
--------------------------------------------------------------------------------
Michigan 2.4%
--------------------------------------------------------------------------------
Indiana 2.1%
--------------------------------------------------------------------------------
Other 19.4%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.7%
--------------------------------------------------------------------------------
Utilities 15.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.7%
--------------------------------------------------------------------------------
Health Care 12.9%
--------------------------------------------------------------------------------
Transportation 11.8%
--------------------------------------------------------------------------------
Tax Obligation/General 9.5%
--------------------------------------------------------------------------------
Water and Sewer 5.1%
--------------------------------------------------------------------------------
Other 14.3%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 15
NMZ Performance OVERVIEW | Nuveen Municipal High Income Opportunity Fund as of
October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.92
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.18
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 6.62%
--------------------------------------------------------------------------------
Market Yield 8.41%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 11.68%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 288,963
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 22.24
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 14.06
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/03)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 20.00% 30.90%
--------------------------------------------------------------------------------
5-Year 2.90% 2.20%
--------------------------------------------------------------------------------
Since
Inception 3.52% 3.55%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)(1)
--------------------------------------------------------------------------------
Florida 9.2%
--------------------------------------------------------------------------------
Indiana 8.0%
--------------------------------------------------------------------------------
California 7.5%
--------------------------------------------------------------------------------
Texas 7.3%
--------------------------------------------------------------------------------
Illinois 6.2%
--------------------------------------------------------------------------------
Colorado 5.1%
--------------------------------------------------------------------------------
Wisconsin 4.7%
--------------------------------------------------------------------------------
Arizona 4.7%
--------------------------------------------------------------------------------
Louisiana 4.4%
--------------------------------------------------------------------------------
Ohio 3.8%
--------------------------------------------------------------------------------
Tennessee 3.7%
--------------------------------------------------------------------------------
Washington 3.2%
--------------------------------------------------------------------------------
Michigan 3.1%
--------------------------------------------------------------------------------
Nebraska 2.5%
--------------------------------------------------------------------------------
Missouri 2.2%
--------------------------------------------------------------------------------
Pennsylvania 2.0%
--------------------------------------------------------------------------------
North Carolina 2.0%
--------------------------------------------------------------------------------
Virgin Islands 1.9%
--------------------------------------------------------------------------------
Other 18.5%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)(1)
--------------------------------------------------------------------------------
Health Care 23.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.3%
--------------------------------------------------------------------------------
Utilities 8.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.0%
--------------------------------------------------------------------------------
Housing/Multifamily 6.8%
--------------------------------------------------------------------------------
Water and Sewer 6.7%
--------------------------------------------------------------------------------
Transportation 6.2%
--------------------------------------------------------------------------------
Materials 5.1%
--------------------------------------------------------------------------------
Industrials 4.6%
--------------------------------------------------------------------------------
Other 12.3%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 9%
AA 4%
A 8%
BBB 25%
BB or Lower 13%
N/R 41%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3)
[BAR CHART]
Nov $ 0.0835
Dec 0.0835
Jan 0.0835
Feb 0.0835
Mar 0.0835
Apr 0.0835
May 0.0835
Jun 0.0835
Jul 0.0835
Aug 0.0835
Sep 0.0835
Oct 0.0835
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 10.91
11.25
9.97
8.17
9.27
8.14
7.37
7.83
8.17
9.15
10.33
9.95
10.57
10.44
10.36
10.15
10.04
10.19
8.86
9.46
9.91
10.30
10.37
10.13
9.70
10.10
10.49
10.62
10.41
10.59
10.92
11.44
10.85
10.51
10.35
10.52
10.63
10.59
10.85
11.39
11.01
10.96
11.04
11.20
11.56
12.10
12.48
12.75
12.99
12.87
12.30
12.71
10/31/09 11.92
(1) Excluding investments in derivatives.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a net ordinary income distribution in December
2008 of $0.0391 per share.
16 Nuveen Investments
NMD Performance OVERVIEW | Nuveen Municipal High Income Opportunity Fund 2 as of
October 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 1%
AA 11%
A 7%
BBB 28%
BB or Lower 14%
N/R 39%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0800
Dec 0.0800
Jan 0.0800
Feb 0.0800
Mar 0.0800
Apr 0.0800
May 0.0800
Jun 0.0800
Jul 0.0800
Aug 0.0800
Sep 0.0800
Oct 0.0800
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 10.09
10.25
9.91
8.20
8.95
8.11
7.12
7.76
8.28
8.00
9.99
10.28
10.11
9.36
10.13
9.90
9.38
9.49
8.34
9.02
9.02
9.42
9.99
9.85
9.28
9.47
9.99
10.36
10.12
10.01
10.24
10.96
10.55
10.16
10.21
10.26
10.36
10.47
10.52
10.88
11.05
10.78
11.05
11.01
11.26
11.82
11.85
12.39
12.35
12.51
11.82
11.92
10/31/09 11.39
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.39
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 10.88
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.69%
--------------------------------------------------------------------------------
Market Yield 8.43%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 11.71%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 174,353
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 24.66
--------------------------------------------------------------------------------
Modified Duration 12.11
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/07)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 25.45% 32.43%
--------------------------------------------------------------------------------
Since
Inception -5.59% -5.31%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)(1)
--------------------------------------------------------------------------------
Florida 13.8%
--------------------------------------------------------------------------------
California 11.4%
--------------------------------------------------------------------------------
Texas 10.3%
--------------------------------------------------------------------------------
Illinois 8.7%
--------------------------------------------------------------------------------
Colorado 5.8%
--------------------------------------------------------------------------------
Washington 5.7%
--------------------------------------------------------------------------------
Arizona 4.4%
--------------------------------------------------------------------------------
New Jersey 3.9%
--------------------------------------------------------------------------------
Louisiana 3.6%
--------------------------------------------------------------------------------
Utah 3.2%
--------------------------------------------------------------------------------
Indiana 2.8%
--------------------------------------------------------------------------------
North Carolina 2.6%
--------------------------------------------------------------------------------
Tennessee 2.6%
--------------------------------------------------------------------------------
Ohio 2.5%
--------------------------------------------------------------------------------
Other 18.7%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)(1)
--------------------------------------------------------------------------------
Health Care 23.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 14.7%
--------------------------------------------------------------------------------
Utilities 7.5%
--------------------------------------------------------------------------------
Transportation 6.1%
--------------------------------------------------------------------------------
Materials 5.1%
--------------------------------------------------------------------------------
Consumer Discretionary 4.9%
--------------------------------------------------------------------------------
Consumer Staples 4.7%
--------------------------------------------------------------------------------
Other 12.0%
--------------------------------------------------------------------------------
(1) Excluding investments in derivatives.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 17
NQM NQS NQU | Shareholder Meeting Report
The annual meeting of shareholders was held on July 28, 2009, in the Lobby
Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the
shareholders were asked to vote on the election of Board Members, the
elimination of Fundamental Investment Policies and the approval of new
Fundamental Investment Policies.3 The meeting for NQM, NQS, NQU, NPF and NMZ was
subsequently adjourned to September 1, 2009, and then adjourned to October 13,
2009, for NQM, NQS, NQU and NPF; NQS additionally adjourned to November 24,
2009.
NQM NQS NQU
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE
FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES
AND BELOW INVESTMENT GRADE SECURITIES.
For 17,720,947 3,407 17,064,272 5,437 27,557,770 8,993
Against 1,232,689 389 910,131 596 1,700,038 923
Abstain 489,432 57 738,310 245 961,646 50
Broker Non-Votes 5,039,813 773 4,726,426 878 8,528,422 989
--------------------------------------------------------------------------------------------------------------------------------
Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 17,798,328 3,449 17,097,665 5,507 27,676,894 9,066
Against 1,100,466 357 836,303 561 1,588,319 838
Abstain 544,274 47 778,745 210 954,241 62
Broker Non-Votes 5,039,813 773 4,726,426 878 8,528,422 989
--------------------------------------------------------------------------------------------------------------------------------
Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
INVESTING IN OTHER INVESTMENT
COMPANIES.
For 17,421,677 3,431 16,878,369 5,446 27,453,747 9,073
Against 1,285,661 357 973,240 587 1,715,971 836
Abstain 735,729 65 861,104 245 1,049,736 57
Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989
--------------------------------------------------------------------------------------------------------------------------------
Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For 17,282,876 3,440 16,862,747 5,469 27,360,911 9,018
Against 1,431,771 342 1,060,825 594 1,857,800 842
Abstain 728,420 71 789,141 215 1,000,743 106
Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989
--------------------------------------------------------------------------------------------------------------------------------
Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 17,298,576 3,426 16,853,977 5,435 27,338,108 9,051
Against 1,394,922 362 994,451 594 1,850,021 843
Abstain 749,569 65 864,285 249 1,031,325 72
Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989
--------------------------------------------------------------------------------------------------------------------------------
Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 17,283,573 3,431 16,830,521 5,429 27,276,934 9,035
Against 1,413,162 357 1,022,139 604 1,842,148 846
Abstain 746,332 65 860,053 245 1,100,372 85
Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989
--------------------------------------------------------------------------------------------------------------------------------
Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955
================================================================================================================================
18 Nuveen Investments
NQM NQS NQU
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 23,347,552 -- 22,131,445 -- 36,800,251 --
Withhold 948,525 -- 1,037,120 -- 1,513,352 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
Robert P. Bremner
For 23,322,963 -- 22,109,502 -- 36,806,010 --
Withhold 973,114 -- 1,059,063 -- 1,507,593 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
Jack B. Evans
For 23,339,209 -- 22,121,089 -- 36,782,523 --
Withhold 956,868 -- 1,047,476 -- 1,531,080 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
William C. Hunter
For -- 4,178 -- 6,801 -- 10,392
Withhold -- 440 -- 294 -- 526
--------------------------------------------------------------------------------------------------------------------------------
Total -- 4,618 -- 7,095 -- 10,918
================================================================================================================================
David J. Kundert
For 23,347,766 -- 22,131,131 -- 36,764,731 --
Withhold 948,311 -- 1,037,434 -- 1,548,872 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
William J. Schneider
For -- 4,178 -- 6,804 -- 10,392
Withhold -- 440 -- 291 -- 526
--------------------------------------------------------------------------------------------------------------------------------
Total -- 4,618 -- 7,095 -- 10,918
================================================================================================================================
Judith M. Stockdale
For 23,313,660 -- 22,108,943 -- 36,774,232 --
Withhold 982,417 -- 1,059,622 -- 1,539,371 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
Carole E. Stone
For 23,343,824 -- 22,115,932 -- 36,764,301 --
Withhold 952,253 -- 1,052,633 -- 1,549,302 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
Terence J. Toth
For 23,347,175 -- 22,129,106 -- 36,776,782 --
Withhold 948,902 -- 1,039,459 -- 1,536,821 --
--------------------------------------------------------------------------------------------------------------------------------
Total 24,296,077 -- 23,168,565 -- 38,313,603 --
================================================================================================================================
Nuveen Investments 19
NPF NMZ NMD | Shareholder Meeting Report (continued)
NPF NMZ NMD
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE
FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES
AND BELOW INVESTMENT GRADE SECURITIES.
For 10,902,126 2,870 11,937,553 1,616 -- --
Against 1,368,514 532 738,356 300 -- --
Abstain 422,350 101 361,876 53 -- --
Broker Non-Votes 2,387,312 -- 3,354,054 198 -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,080,302 3,503 16,391,839 2,167 -- --
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 10,975,776 2,994 12,034,542 1,663 -- --
Against 1,322,490 426 627,550 252 -- --
Abstain 394,724 83 375,693 54 -- --
Broker Non-Votes 2,387,312 -- 3,354,054 198 -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,080,302 3,503 16,391,839 2,167 -- --
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
INVESTING IN OTHER INVESTMENT
COMPANIES.
For 10,884,761 2,990 -- -- -- --
Against 1,319,136 431 -- -- -- --
Abstain 489,093 82 -- -- -- --
Broker Non-Votes 2,387,312 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,080,302 3,503 -- -- -- --
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For 10,741,852 2,994 -- -- -- --
Against 1,416,885 426 -- -- -- --
Abstain 534,253 83 -- -- -- --
Broker Non-Votes 2,387,312 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,080,302 3,503 -- -- -- --
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 10,220,848 2,988 -- -- -- --
Against 1,968,465 431 -- -- -- --
Abstain 503,677 84 -- -- -- --
Broker Non-Votes 2,387,312 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,080,302 3,503 -- -- -- --
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 10,154,786 2,988 -- -- -- --
Against 2,000,498 431 -- -- -- --
Abstain 537,706 84 -- -- -- --
Broker Non-Votes 2,387,312 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,080,302 3,503 -- -- -- --
================================================================================================================================
20 Nuveen Investments
NPF NMZ NMD
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 12,854,664 -- -- -- -- --
Withhold 1,022,451 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- -- -- -- --
================================================================================================================================
Robert P. Bremner
For 12,829,353 -- 15,761,351 -- 13,517,403 --
Withhold 1,047,762 -- 630,488 -- 237,406 --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- 16,391,839 -- 13,754,809 --
================================================================================================================================
Jack B. Evans
For 12,855,248 -- 15,782,587 -- 13,520,517 --
Withhold 1,021,867 -- 609,252 -- 234,292 --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- 16,391,839 -- 13,754,809 --
================================================================================================================================
William C. Hunter
For -- 3,140 -- 1,967 -- --
Withhold -- 355 -- 200 -- --
--------------------------------------------------------------------------------------------------------------------------------
Total -- 3,495 -- 2,167 -- --
================================================================================================================================
David J. Kundert
For 12,848,252 -- -- -- -- --
Withhold 1,028,863 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- -- -- -- --
================================================================================================================================
William J. Schneider
For -- 3,143 -- 1,967 13,520,307 --
Withhold -- 352 -- 200 234,502 --
--------------------------------------------------------------------------------------------------------------------------------
Total -- 3,495 -- 2,167 13,754,809 --
================================================================================================================================
Judith M. Stockdale
For 12,848,036 -- -- -- -- --
Withhold 1,029,079 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- -- -- -- --
================================================================================================================================
Carole E. Stone
For 12,851,983 -- -- -- -- --
Withhold 1,025,132 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- -- -- -- --
================================================================================================================================
Terence J. Toth
For 12,848,032 -- -- -- -- --
Withhold 1,029,083 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total 13,877,115 -- -- -- -- --
================================================================================================================================
Nuveen Investments 21
Report of Independent Registered Public Accounting Firm
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND
NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Investment Quality Municipal Fund,
Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income
Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc., Nuveen
Municipal High Income Opportunity Fund, and Nuveen Municipal High Income
Opportunity Fund 2 (the "Funds") as of October 31, 2009, and the related
statements of operations, changes in net assets, of cash flows (Nuveen
Investment Quality Municipal Fund, Nuveen Premier Municipal Income Fund, Inc.,
and Nuveen Municipal High Income Opportunity Fund 2 only) and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2009, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal
Fund, Inc., Nuveen Quality Income Municipal Fund, Inc., Nuveen Premier Municipal
Income Fund, Inc., Nuveen Municipal High Income Opportunity Fund and Nuveen
Municipal High Income Opportunity Fund 2 at October 31, 2009, the results of
their operations, changes in their net assets, and cash flows (Nuveen Investment
Quality Municipal Fund, Nuveen Premier Municipal Income Fund, Inc., and Nuveen
Municipal High Income Opportunity Fund 2 only) and the financial highlights for
the periods indicated therein in conformity with US generally accepted
accounting principles.
Ernst & Young LLP
Chicago, Illinois
December 28, 2009
22 Nuveen Investments
NQM | Nuveen Investment Quality Municipal Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 3,800 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 3,815,580
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
(UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A:
1,200 5.250%, 11/15/20 11/15 at 100.00 Baa2 1,156,164
800 5.000%, 11/15/30 11/15 at 100.00 Baa2 697,312
1,650 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,501,484
Control Revenue Bonds, International Paper Company, Series
2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,450 Total Alabama 7,170,540
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.6% (1.0% OF TOTAL INVESTMENTS)
4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 4,139,120
Settlement Asset-Backed Bonds, Series 2000, 6.500%,
6/01/31 (Pre-refunded 6/01/10)
Northern Tobacco Securitization Corporation, Alaska, Tobacco
Settlement Asset-Backed Bonds, Series 2006A:
4,000 5.000%, 6/01/32 6/14 at 100.00 Baa3 3,032,120
1,500 5.000%, 6/01/46 6/14 at 100.00 Baa3 996,750
------------------------------------------------------------------------------------------------------------------------------------
9,500 Total Alaska 8,167,990
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.0% (1.3% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
200 5.250%, 12/01/24 12/15 at 100.00 BBB 192,726
265 5.250%, 12/01/25 12/15 at 100.00 BBB 253,610
2,500 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 1,904,950
Longs, Series 11032- 11034, 13.893%, 7/01/31 - FSA Insured
(IF)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 4,961,150
Airport Revenue Bonds, Series 2005, Trust 1132, 9.071%,
7/01/38 (IF)
3,450 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 2,950,958
Bonds, Series 2007, 5.000%,12/01/37
------------------------------------------------------------------------------------------------------------------------------------
11,415 Total Arizona 10,263,394
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,290 University of Arkansas, Pine Bluff Campus, Revenue Bonds, 12/15 at 100.00 Aa3 3,403,143
Series 2005A, 5.000%, 12/01/30 - AMBAC Insured
760 Van Buren County, Arkansas, Sales and Use Tax Revenue 12/10 at 100.00 N/R 775,208
Refunding and Construction Bonds, Series 2000, 5.600%,
12/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,050 Total Arkansas 4,178,351
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.9% (13.4% OF TOTAL INVESTMENTS)
2,250 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 2,297,048
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,000 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 965,950
University of the Pacific, Series 2006, 5.000%, 11/01/30
2,500 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 AAA 2,507,700
Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%,
11/15/27
4,285 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 3,983,250
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
1,800 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 1,925,826
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.899%, 11/15/42 (IF)
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
1,000 5.250%, 7/01/30 7/15 at 100.00 BBB 918,400
2,000 5.000%, 7/01/39 7/15 at 100.00 BBB 1,668,920
5,500 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 5,090,965
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
Nuveen Investments 23
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,900 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 $ 2,000,472
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,530 Commerce Joint Power Financing Authority, California, Tax 8/13 at 100.00 N/R 2,165,857
Allocation Refunding Bonds, Redevelopment Projects 2 and
3, Series 2003A, 5.000%, 8/01/28 - RAAI Insured
145 Commerce Joint Power Financing Authority, California, Tax 8/13 at 100.00 N/R (4) 164,044
Allocation Refunding Bonds, Redevelopment Projects 2 and
3, Series 2003A, 5.000%, 8/01/28 (Pre-refunded 8/01/13) -
RAAI Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
3,000 5.000%, 6/01/33 6/17 at 100.00 BBB 2,289,240
610 5.125%, 6/01/47 6/17 at 100.00 BBB 405,278
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 738,880
9,740 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 13,890,214
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19 (ETM)
2,700 M-S-R Energy Authority, California, Gas Revenue Bonds, Series No Opt. Call A 3,047,355
2009, 7.000%, 11/01/34
1,030 Natomas Union School District, Sacramento County, California, No Opt. Call A 1,160,264
General Obligation Refunding Bonds, Series 1999, 5.950%,
9/01/21 - NPFG Insured
15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 17,976,696
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured
13,145 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 19,226,008
Single Family Mortgage Revenue Bonds, Series 1988B,
8.200%, 9/01/23 (Alternative Minimum Tax) (ETM)
3,415 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 4,027,924
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26 (Pre-refunded 7/01/14)
5,000 Riverside Unified School District, Riverside County, 2/12 at 101.00 A+ 5,026,450
California, General Obligation Bonds, Series 2002A,
5.000%, 2/01/27 - FGIC Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 229,805
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 246,980
660 San Francisco Redevelopment Finance Authority, California, 8/19 at 100.00 A- 688,472
Tax Allocation Revenue Bonds, Mission Bay North
Redevelopment Project, Series 2009, 6.500%, 8/01/39
5,000 San Francisco Unified School District, California, General 6/17 at 100.00 AAA 4,184,700
Obligation Bonds, Series 2007A, 3.000%, 6/15/25 - FSA
Insured
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
6,175 0.000%, 1/15/28 - NPFG Insured No Opt. Call A 1,658,976
8,135 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 1,366,680
17,195 0.000%, 1/15/35 - NPFG Insured No Opt. Call A 2,678,981
1,000 Sierra View Local Health Care District, Tulare County, 1/10 at 100.00 A- 999,940
California, Refunding Revenue Bonds, Series 1998, 5.400%,
7/01/22
3,185 University of California, General Revenue Bonds, Series 5/13 at 101.00 Aa1 3,197,199
2005G, 4.750%, 5/15/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
122,195 Total California 106,728,474
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.8% (2.4% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 945,040
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/29
12,450 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 12,575,247
Refunding Bonds, Series 2000A, 6.000%, 11/15/19 - AMBAC
Insured (Alternative Minimum Tax)
14,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 2,388,150
Series 2004B, 0.000%, 3/01/36 - NPFG Insured
3,000 Park Creek Metropolitan District, Colorado, Senior Property 12/19 at 100.00 AAA 3,352,050
Tax Supported Revenue Bonds, Series 2009, 6.250%, 12/01/30
- AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,950 Total Colorado 19,260,487
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 7.3% (4.7% OF TOTAL INVESTMENTS)
23,745 District of Columbia Water and Sewerage Authority, Public 4/10 at 100.00 AAA 27,929,819
Utility Revenue Bonds, Series 1998, 5.500%, 10/01/23 - FSA
Insured (UB)
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ 3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call A+ $ 3,471,270
6.000%, 6/01/16 - NPFG Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 A (4) 4,825,194
Series 2001A, 0.000%, 4/01/31 (Pre-refunded 4/01/11) - NPFG
Insured
1,200 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,114,068
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,895 Total District of Columbia 37,340,351
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.0% (3.8% OF TOTAL INVESTMENTS)
1,000 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 A+ 1,008,830
Revenue Bonds, Series 2005A, 5.000%, 5/01/27 - NPFG Insured
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 4,086,434
Bonds, Health First Inc. Project, Series 2005, 5.000%,
4/01/24
250 Brevard County Health Facilities Authority, Florida, Revenue 4/19 at 100.00 A- 270,955
Bonds, Health First Inc. Project, Series 2009B, 7.000%,
4/01/39
1,580 Escambia County Health Facilities Authority, Florida, Health 10/10 at 100.00 Baa1 1,518,743
Facility Revenue Refunding Bonds, Baptist Hospital and
Baptist Manor, Series 1998, 5.125%, 10/01/19
1,200 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 831,840
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%,
4/01/30 (Alternative Minimum Tax)
14,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/17 at 100.00 A 13,116,180
International Airport Hub, Series 2007B, 4.500%, 10/01/31 -
NPFG Insured
5,895 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 5,533,931
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
1,995 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,283,403
Assessment Bonds, Series 2006, 5.400%, 5/01/37
2,000 Westchester Community Development District 1, Florida, Special 5/13 at 101.00 N/R 1,554,640
Assessment Bonds, Series 2003, 6.000%, 5/01/23
1,250 Wyndam Park Community Development District, Florida, Special 5/13 at 101.00 A 1,267,275
Assessment Bonds, Series 2003, 6.375%, 5/01/34
------------------------------------------------------------------------------------------------------------------------------------
33,400 Total Florida 30,472,231
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.9% (3.2% OF TOTAL INVESTMENTS)
10,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ (4) 10,189,700
Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC
Insured
2,710 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 2,764,010
2004, 5.000%, 11/01/23 - FSA Insured
1,500 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 1,515,120
2009B, 5.250%, 11/01/34 - FSA Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call A 1,950,620
Hamilton Health Care System Inc., Series 1996, 5.500%,
8/15/26 - NPFG Insured
5,980 Fulton County Development Authority, Georgia, Revenue Bonds, 9/11 at 102.00 N/R 6,145,706
Georgia State University - TUFF/Atlanta Housing LLC, Series
2001A, 5.500%, 9/01/22 - AMBAC Insured
2,250 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 2,636,505
Obligation Bonds, Fourth Crossover Series 1997E, 6.500%,
1/01/20
------------------------------------------------------------------------------------------------------------------------------------
24,440 Total Georgia 25,201,661
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.7% (1.1% OF TOTAL INVESTMENTS)
4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aa3 4,935,204
5.375%, 12/01/31 - NPFG Insured
3,000 Idaho Housing and Finance Association, Single Family Mortgage No Opt. Call Aa3 3,085,260
Revenue Bonds, Series 2009BI, 5.650%, 7/01/26
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
500 5.250%, 9/01/26 9/16 at 100.00 BBB- 459,070
500 5.250%, 9/01/30 9/16 at 100.00 BBB- 448,580
------------------------------------------------------------------------------------------------------------------------------------
8,810 Total Idaho 8,928,114
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.7% (6.9% OF TOTAL INVESTMENTS)
$ 4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 BBB- (4) $ 4,843,280
University, Series 2000, 6.250%, 3/01/20 (Pre-refunded
3/01/10) - RAAI Insured
4,775 Chicago Public Building Commission, Illinois, General 3/13 at 100.00 N/R (4) 5,363,567
Obligation Lease Bonds, Chicago Transit Authority, Series
2003, 5.250%, 3/01/23 (Pre-refunded 3/01/13) - AMBAC
Insured
2,110 Illinois Development Finance Authority, Local Government 1/11 at 100.00 Aa2 (4) 2,233,203
Program Revenue Bonds, DuPage and Cook Counties Community
Unit School District 205 - Elmhurst, Series 2000, 6.000%,
1/01/19 (Pre-refunded 1/01/11) - FSA Insured
1,120 Illinois Finance Authority Revenue Bonds, Rush University 5/19 at 100.00 A- 1,212,288
Medical Center Obligated Group, Series 2009C, 6.625%,
11/01/39
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,500 5.250%, 11/15/21 5/14 at 100.00 A 2,516,975
1,000 5.250%, 11/15/22 5/14 at 100.00 A 1,002,780
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 328,356
Series 2006, 5.125%, 1/01/25
1,000 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 1,124,880
Series 2009A, 7.750%, 8/15/34
Illinois Finance Authority, Revenue Bonds, Silver Cross
Hospital and Medical Centers, Series 2009:
2,000 6.875%, 8/15/38 8/19 at 100.00 BBB 2,102,220
3,000 7.000%, 8/15/44 8/19 at 100.00 BBB 3,157,620
2,600 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 2,882,074
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aa3 14,461,835
Illinois, General Obligation School Bonds, Series 1997,
7.800%, 1/01/12 - FSA Insured
5,000 Madison County Community Unit School District 7, No Opt. Call N/R (4) 5,500,850
Edwardsville, Illinois, School Building Bonds, Series
1994, 5.850%, 2/01/13 - FGIC Insured (ETM)
6,015 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A 3,321,964
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 12/15/21 - NPFG Insured
Will County High School District 204, Joliet, Illinois,
General Obligation Bonds, Series 2001:
1,145 8.700%, 12/01/13 - FSA Insured No Opt. Call AAA 1,444,269
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,686,698
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call A2 1,473,018
Obligation School Building Bonds, Series 2001, 8.400%,
12/01/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
52,570 Total Illinois 54,655,877
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.2% OF TOTAL INVESTMENTS)
5,530 Allen County Jail Building Corporation, Indiana, First 4/11 at 101.00 N/R (4) 5,987,165
Mortgage Bonds, Series 2000, 5.750%, 4/01/20 (Pre-refunded
4/01/11)
1,000 Indiana Finance Authority Health System Revenue Bonds Series 11/19 at 100.00 Aa3 976,380
2009A (Sisters of St. Francis Health Services, Inc.
Obligated Group), 5.250%, 11/01/39 (WI/DD, Settling
11/05/09)
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily 7/10 at 102.00 Aaa 1,930,497
Housing Mortgage Revenue Bonds, Cloverleaf Apartments
Project Phase I, Series 2000, 6.000%, 1/20/31
2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 2,561,317
Revenue Bonds, Blueridge Terrace Project, Series 2000,
6.050%, 1/20/36
St. Joseph County Hospital Authority, Indiana, Revenue Bonds,
Madison Center Inc., Series 2005:
1,550 5.250%, 2/15/23 2/15 at 100.00 BB+ 1,341,789
2,500 5.375%, 2/15/34 2/15 at 100.00 BB+ 1,979,700
2,765 Wayne County Jail Holding Corporation, Indiana, First 1/13 at 101.00 A3 (4) 3,160,754
Mortgage Bonds, Series 2001, 5.750%, 7/15/14 (Pre-refunded
1/15/13) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,720 Total Indiana 17,937,602
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.3% (0.8% OF TOTAL INVESTMENTS)
800 Iowa Finance Authority, Health Facilities Revenue Bonds, Iowa 8/19 at 100.00 Aa2 825,760
Health System, Series 2009, 5.625%, 8/15/37 - AGC Insured
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 5,835,360
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
8,800 Total Iowa 6,661,120
------------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS)
$ 1,000 Kansas Development Finance Authority, Health Facilities 11/15 at 100.00 A2 $ 1,013,500
Revenue Bonds, Hays Medical Center Inc., Series 2005L,
5.000%, 11/15/22
425 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 460,326
Securities Program Single Family Revenue Bonds, Series
1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax)
2,865 Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 3,647,145
Hotel Corporation, Series 1988, 9.500%, 10/01/16
(Pre-refunded 8/15/16) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,290 Total Kansas 5,120,971
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,000 Jefferson County, Kentucky, Health Facilities Revenue 1/10 at 100.00 A 2,001,160
Refunding Bonds, Jewish Hospital HealthCare Services Inc.,
Series 1996, 5.700%, 1/01/21 - AMBAC Insured
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 460,025
Kentucky, Industrial Building Revenue Bonds, Sisters of
Mercy of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,510 Total Kentucky 2,461,185
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.7% (1.1% OF TOTAL INVESTMENTS)
625 East Baton Rouge Mortgage Finance Authority, Louisiana, 4/10 at 101.00 Aaa 639,913
GNMA/FNMA Mortgage-Backed Securities Program Family
Mortgage Revenue Refunding Bonds, Series 1997D, 5.900%,
10/01/30 (Alternative Minimum Tax)
Jefferson Parish Home Mortgage Authority, Louisiana, Single
Family Mortgage Revenue Bonds, Series 2000G-2:
480 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 485,539
695 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 723,453
300 Jefferson Parish Home Mortgage Authority, Louisiana, Single 12/09 at 103.00 Aaa 320,169
Family Mortgage Revenue Refunding Bonds, Series 2000A-2,
7.500%, 12/01/30 (Alternative Minimum Tax)
1,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB 964,990
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
3,000 Louisiana Public Facilities Authority, Hospital Revenue 8/15 at 100.00 A+ 2,969,040
Bonds, Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 2,350,600
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
------------------------------------------------------------------------------------------------------------------------------------
8,600 Total Louisiana 8,453,704
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 2,577,950
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5% (2.2% OF TOTAL INVESTMENTS)
4,795 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 4,532,857
Living Revenue Bonds, Prospect House Apartments, Series
1999, 7.000%, 12/01/31
1,105 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 1,082,801
Revenue Bonds, Caritas Christi Obligated Group, Series
1999A, 5.625%, 7/01/20
1,875 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB+ 1,906,125
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.500%, 7/01/21
2,030 Massachusetts Industrial Finance Agency, Resource Recovery 12/09 at 101.00 BBB 1,818,576
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
5,100 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 5,509,581
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
(UB)
3,120 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 2,883,660
Bonds, Tender Option Bond, Series 2007A, 4.500%, 8/01/46 -
FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,025 Total Massachusetts 17,733,600
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1% (2.7% OF TOTAL INVESTMENTS)
4,250 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 4,710,615
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/20 (Pre-refunded 5/01/12) - FSA
Insured
10,215 Detroit, Michigan, Water Supply System Revenue Refunding No Opt. Call A+ 11,603,627
Bonds, Series 1993, 6.500%, 7/01/15 - FGIC Insured
Nuveen Investments 27
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 1,350 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ $ 1,387,247
Program, Series 2005II, 5.000%, 10/15/22 - AMBAC Insured
1,240 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 1,197,046
Bonds, Henry Ford Health System, Refunding Series 2009,
5.750%, 11/15/39 (WI/DD, Settling 11/03/09)
2,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,997,260
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 262,776
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
------------------------------------------------------------------------------------------------------------------------------------
19,395 Total Michigan 21,158,571
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 7.4% (4.8% OF TOTAL INVESTMENTS)
2,750 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 2,773,293
Inc., Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 7,026,400
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
(ETM)
620 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 632,586
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
19,380 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 20,780,782
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
(Pre-refunded 11/15/10)
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 962,150
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%,
11/15/25
6,280 Washington County, Minnesota, General Obligation Bonds, 8/17 at 100.00 AAA 5,704,438
Capital Improvement Plan, Series 2007A, 3.500%, 2/01/28
------------------------------------------------------------------------------------------------------------------------------------
35,030 Total Minnesota 37,879,649
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,316,883
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 2,021,600
Brentwood and Maplewood, Missouri, Transportation Sales
Revenue Bonds, Series 2009, 5.875%, 10/01/36
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 191,114
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aa2 1,066,990
Missouri, General Obligation Bonds, Series 2006, 5.250%,
3/01/26 - NPFG Insured
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call A 833,547
1,525 5.000%, 6/01/35 6/15 at 100.00 A 1,367,025
2,985 Missouri Development Finance Board. Infrastructure Facilities 4/14 at 100.00 A+ 3,041,178
Revenue Bonds, City of Independence, Missouri - Events
Center Project, Series 2009F, 6.250%, 4/01/38
------------------------------------------------------------------------------------------------------------------------------------
8,490 Total Missouri 8,521,454
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.4% (1.5% OF TOTAL INVESTMENTS)
11,215 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 10,618,250
2007A, 4.500%, 9/01/37 - FGIC Insured (UB)
1,595 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan Program, 3/10 at 100.00 N/R 1,597,584
Series 1993B, 5.875%, 6/01/14 - NPFG Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,810 Total Nebraska 12,215,834
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.3% (2.1% OF TOTAL INVESTMENTS)
11,000 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 12,263,020
Bonds, Series 2002C, 5.500%, 6/15/19 (Pre-refunded
6/15/12) - NPFG Insured
14,530 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 Caa2 2,978,795
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/34 - AMBAC Insured
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 1,600 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A $ 1,796,368
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
27,130 Total Nevada 17,038,183
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2% (0.1% OF TOTAL INVESTMENTS)
945 New Hampshire Housing Finance Authority, Single Family 7/17 at 100.00 Aa2 964,751
Residential Mortgage Bonds, Series 2007-E, 5.750%, 1/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5% (1.6% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,395,570
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,046,940
600 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 677,928
Bonds, University of Medicine and Dentistry of New Jersey
Issue, Series 2009 B, 7.500%, 12/01/32
680 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 663,394
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
665 New Jersey Higher Education Assistance Authority, Student 6/19 at 100.00 AA 775,882
Loan Revenue Bonds, Tender Option Bond Trust PA-4643,
19.377%, 6/01/30 (IF)
3,425 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 3,810,484
Transportation System Bonds, Series 2006A, 5.250%, 12/15/20
700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 733,684
5.250%, 1/01/40
1,380 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 1,500,226
Settlement Asset-Backed Bonds, Series 2002, 5.750%,
6/01/32 (Pre-refunded 6/01/12)
3,250 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,272,530
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%,
6/01/34
------------------------------------------------------------------------------------------------------------------------------------
13,025 Total New Jersey 12,876,638
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Albuquerque, New Mexico, Gross Receipts Lodgers Tax Revenue 7/14 at 100.00 AAA 1,015,310
Refunding Bonds, Series 2004A, 5.000%, 7/01/37 - FSA
Insured
Farmington, New Mexico, Hospital Revenue Bonds, San Juan
Regional Medical Center Inc., Series 2004A:
880 5.125%, 6/01/17 6/14 at 100.00 A3 910,633
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,324,384
------------------------------------------------------------------------------------------------------------------------------------
3,175 Total New Mexico 3,250,327
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.5% (10.6% OF TOTAL INVESTMENTS)
1,665 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,748,516
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
4,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,419,379
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
3,000 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 2,711,730
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
1,000 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 1,029,420
Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34
2,250 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 2,280,375
Transportation Revenue Bonds, Series 2005B, 5.000%,
11/15/30 - AMBAC Insured
3,200 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 3,243,200
Transportation Revenue Bonds, Series 2005F, 5.000%,
11/15/30
7,800 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 8,121,204
Water and Sewerage System Revenue Bonds, Fiscal Series
2005B, 5.000%, 6/15/28 - AMBAC Insured
500 New York City Municipal Water Finance Authority, New York, 6/19 at 100.00 AA+ 555,290
Water and Sewerage System Revenue Bonds, Tender Option
Bond Trust 3484, 17.805%, 6/15/39 (IF)
5,570 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 5,901,248
Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%,
2/01/22 (UB)
1,745 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA 1,914,021
Series 2003J, 5.500%, 6/01/20
Nuveen Investments 29
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 3,255 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA (4) $ 3,724,436
Series 2003J, 5.500%, 6/01/20 (Pre-refunded 6/01/13)
4,200 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 4,342,674
Series 2005J, 5.000%, 3/01/25
7,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 7,251,510
Series 2005M, 5.000%, 4/01/24 (UB)
5,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 5,282,950
2004C-1, 5.250%, 8/15/20 (UB)
5,000 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 5,327,250
Purpose Revenue Bonds, Series 2003C, 5.250%, 12/01/19
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,473,764
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
4,205 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 4,391,618
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/23
- FGIC Insured
16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call A 17,704,851
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 7.000%, 12/01/12 - NPFG Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
81,290 Total New York 84,423,436
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 8,130,465
Bonds, Mission St. Joseph's Health System, Series 2001,
5.250%, 10/01/26 (Pre-refunded 10/01/11)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.3% (0.8% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
3,155 5.125%, 6/01/24 6/17 at 100.00 BBB 2,810,032
530 5.875%, 6/01/30 6/17 at 100.00 BBB 461,296
525 5.750%, 6/01/34 6/17 at 100.00 BBB 441,499
1,180 5.875%, 6/01/47 6/17 at 100.00 BBB 874,286
1,000 6.500%, 6/01/47 6/17 at 100.00 BBB 809,440
800 Ohio Air Quality Development Authority, Ohio, Air Quality No Opt. Call BBB- 801,224
Revenue Bonds, Ohio Valley Electric Corporation Project,
Series 2009E, Non-AMT, 5.625%, 10/01/19
250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 231,835
Economic Development Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,440 Total Ohio 6,429,612
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7% (1.1% OF TOTAL INVESTMENTS)
750 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 668,625
Revenue Bonds, Series 2005, 5.375%, 9/01/36
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
1,900 5.000%, 2/15/37 2/17 at 100.00 A 1,820,751
990 5.000%, 2/15/42 2/17 at 100.00 A 934,035
88 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 82,239
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.366%, 12/15/36 (IF)
5,280 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 5,089,920
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
------------------------------------------------------------------------------------------------------------------------------------
9,008 Total Oklahoma 8,595,570
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.9% (1.9% OF TOTAL INVESTMENTS)
2,000 Allegheny County Hospital Development Authority, 8/19 at 100.00 Aa3 2,015,740
Pennsylvania, University of Pittsburgh Medical Center
Revenue Bonds, Series 2009A, 5.375%, 8/15/29
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 412,305
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 3,131,460
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured (UB)
1,500 Pennsylvania Economic Development Financing Authority Health No Opt. Call A3 1,572,435
System Revenue Bonds Albert Einstein Healthcare Network
Issue, Series 2009A, 6.250%, 10/15/23
5,125 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,741,086
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,750 Philadelphia Hospitals and Higher Education Facilities 11/09 at 100.00 BBB $ 1,750,630
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,000 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,167,470
Revenue Bonds, Catholic Health East, Series 2004B, 5.500%,
11/15/24 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
14,875 Total Pennsylvania 14,791,126
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,586,880
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,218,630
8/01/21 - CIFG Insured
Puerto Rico Sales Tax Financing Corporation, Sales Tax
Revenue Bonds, First Subordinate Series 2009A:
1,100 6.375%, 8/01/39 8/19 at 100.00 A+ 1,189,914
2,000 6.000%, 8/01/42 8/19 at 100.00 A+ 2,100,700
14,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 2,030,280
Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,825 Total Puerto Rico 8,126,404
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.3% (0.9% OF TOTAL INVESTMENTS)
2,410 Rhode Island Health and Educational Building Corporation, 11/09 at 100.00 A 2,410,844
Hospital Financing Revenue Bonds, Lifespan Obligated
Group, Series 1996, 5.750%, 5/15/23 - NPFG Insured
4,315 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 4,350,599
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
6,725 Total Rhode Island 6,761,443
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.6% (1.7% OF TOTAL INVESTMENTS)
2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,043,360
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 4,581,949
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
1,355 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 1,532,464
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
5,145 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 5,184,102
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
12,905 Total South Carolina 13,341,875
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,776,705
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.8% (1.8% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,108,256
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 5,115,950
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
5,000 Metropolitan Government of Nashville-Davidson County Health 10/19 at 100.00 AA 5,224,550
and Educational Facilities Board, Tennessee, Revenue
Refunding Bonds, Vanderbilt University, Series 2009B,
5.000%, 10/01/39
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
700 5.500%, 11/01/37 11/17 at 100.00 N/R 266,070
1,200 5.500%, 11/01/46 11/17 at 100.00 N/R 456,120
------------------------------------------------------------------------------------------------------------------------------------
15,100 Total Tennessee 14,170,946
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.4% (9.8% OF TOTAL INVESTMENTS)
$ 3,060 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa $ 3,261,776
Collateralized Mortgage Loan Multifamily Housing Revenue
Bonds, Santa Maria Village Project, Series 2000A, 7.375%,
6/20/35 (Alternative Minimum Tax)
5,000 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 4,757,650
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
635 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 642,664
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 5.500%, 2/15/22
18,075 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 18,350,282
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 5.500%, 2/15/22 (Pre-refunded 2/15/10)
1,520 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 1,543,864
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
185 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 (4) 188,404
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
2,242 Heart of Texas Housing Finance Corporation, GNMA 6/10 at 105.00 Aaa 2,374,323
Collateralized Mortgage Loan Revenue Bonds, Robinson
Garden Project, Series 2000A, 7.375%, 6/20/35 (Alternative
Minimum Tax)
11,950 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 6,815,922
Refunding Bonds, Series 1998A, 0.000%, 12/01/22 - FSA
Insured (ETM)
4,680 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 2,558,930
Refunding Bonds, Series 1998A, 0.000%, 12/01/22 - FSA
Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 772,656
1,220 5.125%, 8/15/26 No Opt. Call BBB- 1,115,141
1,100 North Texas Thruway Authority, First Tier System Revenue 1/18 at 100.00 AAA 1,159,213
Refunding Bonds, Series 2008A, 5.750%, 1/01/40 - AGC
Insured
3,150 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 3,186,540
Refunding Bonds, Series 2008, 5.750%, 1/01/38
1,100 North Texas Tollway Authority, System Revenue Bonds, Series 1/19 at 100.00 A2 1,153,845
2009, 6.250%, 1/01/39
2,000 Port of Bay City Authority of Matagorda County, Texas, 11/09 at 100.00 B+ 1,977,500
Revenue Bonds (Hoechst Celanese Corporation Project)
Series 1996, 6.500%, 5/01/26 (WI/DD, Settling 11/02/09)
(Alternative Minimum Tax)
1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 446,940
Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100.00 A+ 4,074,998
Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
7,500 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 7,233,675
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
3,030 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 3,240,252
Texas, GNMA Collateralized Mortgage Loan Revenue Bonds,
Eastview Nursing Home, Ebony Lake Nursing Center, Ft.
Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.500%, 12/20/22
650 Texas Municipal Gas Acquisition and Supply Corporation I, Gas No Opt. Call A 677,261
Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%,
12/15/26
Texas Turnpike Authority, First Tier Revenue Bonds, Central
Texas Turnpike System, Series 2002A:
10,000 0.000%, 8/15/21 - AMBAC Insured No Opt. Call BBB+ 5,269,800
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call BBB+ 5,521,080
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,242,875
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
97,357 Total Texas 78,565,591
------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 820 Virgin Islands Public Finance Authority, Matching Fund 10/19 at 100.00 BBB $ 864,854
Revenue Loan Note - Diageo Project, Series 2009A, 6.750%,
10/01/37
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Amherst Industrial Development Authority, Virginia, Revenue 9/16 at 100.00 BBB 944,430
Bonds, Sweet Briar College, Series 2006, 5.000%, 9/01/26
1,870 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 1,782,409
Residential Rental Housing Revenue Bonds, Hamptons and
Hampton Court Apartments, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,870 Total Virginia 2,726,839
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.0% (3.8% OF TOTAL INVESTMENTS)
11,345 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AA 7,481,233
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/19 - NPFG Insured
17,075 Port of Seattle, Washington, General Obligation Bonds, Series 12/10 at 100.00 AAA 17,202,550
2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) (UB)
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 Aa2 5,120,900
5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax)
(UB)
1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 800,090
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
34,420 Total Washington 30,604,773
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,550 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 3,581,950
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
1,950 West Virginia Hospital Finance Authority, Hospital Revenue 9/19 at 100.00 A2 1,923,929
Bonds, Charleston Area Medical Center, Series 2009A,
5.625%, 9/01/32
1,000 West Virginia Hospital Finance Authority Hospital Revenue 10/18 at 100.00 N/R 894,260
Bonds (Thomas Health System, Inc.) Series 2008, 6.500%,
10/01/38
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total West Virginia 6,400,139
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.7% (2.4% OF TOTAL INVESTMENTS)
4,830 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 5,277,789
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27 (Pre-refunded 6/01/12)
315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 258,577
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Eagle River Memorial Hospital Inc., Series
2000:
1,000 5.750%, 8/15/20 - RAAI Insured 8/10 at 101.00 BBB- 1,004,760
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 BBB- 2,934,570
1,150 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,134,441
Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.750%,
5/01/24
4,000 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 3,409,640
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, 5.250%, 8/15/34
4,600 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 4,768,360
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,895 Total Wisconsin 18,788,137
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 1,720 Sweetwater County, Wyoming, Pollution Control Revenue 8/19 at 100.00 A- $ 1,790,004
Refunding Bonds, Idaho Power Company Project, Series 2006,
5.250%, 7/15/26 (Mandatory put 7/14/26)
2,500 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 2,350,074
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,220 Total Wyoming 4,140,078
------------------------------------------------------------------------------------------------------------------------------------
$ 874,815 Total Investments (cost $789,781,632) - 156.2% 798,173,885
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (18.3)% (93,377,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 16,813,335
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (41.2)% (5) (210,700,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 510,910,220
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 26.4%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
34 Nuveen Investments
NQS | Nuveen Select Quality Municipal Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.8% (1.9% OF TOTAL INVESTMENTS)
$ 10,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 A $ 9,374,600
Revenue Bonds, Coffee Health Group, Series 2000A, 6.000%,
7/01/29 - NPFG Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 4,342,108
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,155 Total Alabama 13,716,708
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0% (0.6% OF TOTAL INVESTMENTS)
500 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 514,440
Bonds, Series 2005A, 5.000%, 12/01/26 - FGIC Insured (UB)
2,000 Kenai Peninsula Borough, Alaska, Revenue Bonds, Central Kenai 8/13 at 100.00 A3 2,045,820
Peninsula Hospital Service Area, Series 2003, 5.000%,
8/01/23 - FGIC Insured
2,315 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 2,126,976
Settlement Asset-Backed Bonds, Series 2006A, 4.625%,
6/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,815 Total Alaska 4,687,236
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.9% (1.9% OF TOTAL INVESTMENTS)
2,300 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,315,939
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
3,750 Salt River Project Agricultural Improvement and Power 12/13 at 100.00 Aa2 3,955,163
District, Arizona, Electric System Revenue Bonds, Series
2003, 5.000%, 12/01/18 - NPFG Insured
8,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 6,842,800
Bonds, Series 2007, 5.000%, 12/01/37
750 Scottsdale Industrial Development Authority, Arizona, 9/13 at 100.00 A3 743,378
Hospital Revenue Bonds, Scottsdale Healthcare, Series
2008A, 5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
14,800 Total Arizona 13,857,280
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,163,885
Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.3% (3.5% OF TOTAL INVESTMENTS)
Calexico Unified School District, Imperial County,
California, General Obligation Bonds, Series 2005B:
3,685 0.000%, 8/01/31 - FGIC Insured No Opt. Call A 949,772
4,505 0.000%, 8/01/33 - FGIC Insured No Opt. Call A 1,019,121
1,110 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 930,524
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 5.000%, 6/01/26
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 A 567,122
Revenue Bonds, Pacific Gas and Electric Company, Series
1996A, 5.350%, 12/01/16 - NPFG Insured (Alternative
Minimum Tax)
1,550 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 1,599,259
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, No Opt. Call A 281,020
California, General Obligation Bonds, Series 2005A,
0.000%, 8/01/30 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,200 0.000%, 2/01/30 - FGIC Insured 2/15 at 45.69 A+ 839,552
6,800 0.000%, 2/01/35 - FGIC Insured 2/15 at 34.85 A+ 1,229,712
Cupertino Union School District, Santa Clara County,
California, General Obligation Bonds, Series 2003B:
8,100 0.000%, 8/01/24 - FGIC Insured 8/13 at 58.68 AA 3,528,927
11,430 0.000%, 8/01/27 - FGIC Insured 8/13 at 49.98 AA 4,060,165
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 4,090,170
Enhanced Tobacco Settlement Revenue Bonds, Residual Series
2040, 10.380%, 6/01/45 - FGIC Insured (IF)
1,045 Lake Tahoe Unified School District, El Dorado County, No Opt. Call A2 257,185
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/31 - NPFG Insured
Nuveen Investments 35
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call A+ $ 1,277,760
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
5,000 Riverside County Asset Leasing Corporation, California, No Opt. Call A 2,026,250
Leasehold Revenue Bonds, Riverside County Hospital
Project, Series 1997, 0.000%, 6/01/25 - NPFG Insured
5,000 Santa Monica Community College District, Los Angeles County, No Opt. Call AA 1,890,700
California, General Obligation Bonds, Series 2005C,
0.000%, 8/01/26 - NPFG Insured
2,460 Santee School District, County, California, General No Opt. Call AAA 586,243
Obligation Bonds, Capital Appreciation, Election 2006,
Series 2008D, 0.000%, 8/01/33 - AGC Insured
2,000 Yuma Community College District, California, General 8/17 at 45.45 A1 455,900
Obligation Bonds, Series 2007B, 0.000%, 8/01/33 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
70,435 Total California 25,589,382
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.3% (7.4% OF TOTAL INVESTMENTS)
11,000 Colorado Department of Transportation, Revenue Anticipation 6/10 at 100.50 Aaa 11,443,190
Bonds, Series 2000, 6.000%, 6/15/15 (Pre-refunded 6/15/10)
- AMBAC Insured
3,335 Colorado Health Facilities Authority, Colorado, Revenue 7/19 at 100.00 AA 3,410,004
Bonds, Catholic Health Initiatives, Series 2009A, 5.500%,
7/01/34 (WI/DD, Settling 11/10/09)
1,150 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,151,990
Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA
Insured
16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 17,039,526
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC
Insured (Alternative Minimum Tax)
4,500 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 4,593,330
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC
Insured (Alternative Minimum Tax)
1,500 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 1,194,120
Revenue Bonds, Convention Center Hotel, Series 2006,
4.625%, 12/01/30 - SYNCORA GTY Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
1,420 0.000%, 9/01/23 - NPFG Insured No Opt. Call A 586,034
8,515 0.000%, 9/01/25 - NPFG Insured No Opt. Call A 3,059,099
13,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 45.40 A 2,381,340
Series 2004B, 0.000%, 9/01/34 - NPFG Insured
5,000 Ebert Metropolitan District, Colorado, Limited Tax General 12/17 at 100.00 BBB- 4,498,650
Obligation Bonds, Series 2007, 5.350%, 12/01/37 - RAAI
Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 40.52 AAA 4,888,997
Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/26
(Pre-refunded 6/15/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
78,770 Total Colorado 54,246,280
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.7% (1.8% OF TOTAL INVESTMENTS)
District of Columbia Tobacco Settlement Corporation, Tobacco
Settlement Asset-Backed Bonds, Series 2001:
2,405 6.250%, 5/15/24 5/11 at 101.00 BBB 2,411,061
5,135 6.500%, 5/15/33 No Opt. Call BBB 4,863,204
5,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call A+ 5,860,450
6.000%, 6/01/19 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
12,540 Total District of Columbia 13,134,715
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.7% (2.5% OF TOTAL INVESTMENTS)
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
3,075 5.875%, 10/01/18 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 3,140,651
4,860 5.875%, 10/01/19 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 4,957,346
9,250 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 7,968,320
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/40 - NPFG Insured
2,500 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 1,887,950
Bonds, Baptist Health Systems of South Florida, Series
2007, ROLS 11151, 17.724%, 8/15/42 (IF)
------------------------------------------------------------------------------------------------------------------------------------
19,685 Total Florida 17,954,267
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/10 at 101.00 A+ 3,751,575
2000B, 5.625%, 1/01/30 - FGIC Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.9% (9.8% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
$ 3,855 0.000%, 12/01/25 - FGIC Insured No Opt. Call AA- $ 1,671,721
2,925 0.000%, 12/01/31 - FGIC Insured No Opt. Call AA- 851,000
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,165,464
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded 7/01/10) - FGIC Insured
15,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A1 14,191,200
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Bonds, O'Hare International Airport, Series 2001C:
3,770 5.100%, 1/01/26 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 3,597,900
5,460 5.250%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 5,081,131
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,997,880
Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC
Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 962,860
Services Corporation, Series 2008A, 5.500%, 2/01/40 -
AMBAC Insured
3,975 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 Baa1 3,637,602
Systems, Series 2007A, 5.500%, 8/01/37
10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 11,147,300
Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded
5/15/12)
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest 2/11 at 102.00 Aaa 2,046,780
Care Center I Inc., Series 2001, 5.950%, 2/20/36
8,945 Lake and McHenry Counties Community Unit School District 118, 1/15 at 74.44 Aa3 5,192,483
Wauconda, Illinois, General Obligation Bonds, Series
2005B, 0.000%, 1/01/21 - FSA Insured
9,000 McHenry County Community Unit School District 200, Woodstock, No Opt. Call Aa3 4,717,350
Illinois, General Obligation Bonds, Series 2006B, 0.000%,
1/15/23 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
6,700 0.000%, 12/15/23 - NPFG Insured No Opt. Call AAA 3,253,989
2,920 5.000%, 12/15/28 - NPFG Insured 6/12 at 101.00 AAA 2,981,904
1,100 0.000%, 12/15/35 - NPFG Insured No Opt. Call AAA 254,639
2,455 0.000%, 6/15/41 - NPFG Insured No Opt. Call AAA 412,538
7,500 Valley View Public Schools, Community Unit School District No Opt. Call AA 3,339,675
365U of Will County, Illinois, General Obligation Bonds,
Series 2005, 0.000%, 11/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
94,470 Total Illinois 71,503,416
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.0% (2.0% OF TOTAL INVESTMENTS)
2,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 1,607,640
Revenue Bonds, Cardinal Health System, Series 2006,
5.250%, 8/01/36
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,907,520
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
765 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa 781,631
Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26
(Alternative Minimum Tax)
2,225 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 2,210,738
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
7,660 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/11 at 100.00 AA- (4) 8,153,917
Memorial Health System, Series 2000, 5.625%, 8/15/33
(Pre-refunded 2/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,650 Total Indiana 14,661,446
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,100 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 2,279,337
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.6% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 4,097,672
Series 2004A, 5.000%, 3/01/23 (UB)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 37
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.2% OF TOTAL INVESTMENTS)
$ 1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA $ 1,071,950
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.0% (0.6% OF TOTAL INVESTMENTS)
5,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 4,627,100
Clinic Foundation Project, Series 2007A, 5.375%, 5/15/43
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.3% (0.2% OF TOTAL INVESTMENTS)
835 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AA 844,937
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 -
NPFG Insured (Alternative Minimum Tax)
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 454,360
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/38
------------------------------------------------------------------------------------------------------------------------------------
1,335 Total Massachusetts 1,299,297
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.7% (4.4% OF TOTAL INVESTMENTS)
540 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 BB 459,583
5.250%, 4/01/19 - SYNCORA GTY Insured
10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 10,189,400
Series 1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC
Insured
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 2/10 at 100.00 BB- 3,201,902
Bonds, Detroit Medical Center Obligated Group, Series
1993A, 6.500%, 8/15/18
6,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 5,894,220
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C, 5.650%,
9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax)
7,500 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 6,978,300
Bonds, Detroit Edison Company, Series 2002C, 5.450%,
12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax)
5,900 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 5,466,586
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/35 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
33,215 Total Michigan 32,189,991
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.9% (1.3% OF TOTAL INVESTMENTS)
7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 7,385,070
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%,
1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
1,880 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 1,914,536
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,880 Total Minnesota 9,299,606
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,520,565
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 1,735,050
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,506,825
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Missouri 3,241,875
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.7% (3.8% OF TOTAL INVESTMENTS)
4,885 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA+ (4) 5,054,900
Bonds, Series 2000, 5.500%, 7/01/18 (Pre-refunded 7/01/10)
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 Aa3 (4) 7,857,075
Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) - NPFG
Insured
1,950 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 Caa2 399,770
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/32 - AMBAC Insured
2,500 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,688,850
Healthcare West, Trust 2634, 18.374%, 7/01/31 - BHAC
Insured (IF)
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 10,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA $ 11,572,483
Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
27,585 Total Nevada 27,573,078
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.9% (5.2% OF TOTAL INVESTMENTS)
16,840 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 39.39 BB+ 2,087,992
Bonds, Saint Barnabas Health Care System, Series 2006A,
0.000%, 7/01/35
2,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 2,535,792
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
14,865 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 Aaa 14,950,770
Program Revenue Bonds, Series 2000CC, 5.850%, 10/01/25 -
NPFG Insured (Alternative Minimum Tax)
1,905 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/09 at 100.00 A+ 1,905,400
Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 -
AMBAC Insured (Alternative Minimum Tax)
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,948,200
System Bonds, Series 2006C, 0.000%, 12/15/33 - FSA Insured
6,470 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 7,033,666
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
6,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 4,386,460
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/41
------------------------------------------------------------------------------------------------------------------------------------
68,980 Total New Jersey 37,848,280
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 5.0% (3.3% OF TOTAL INVESTMENTS)
8,500 Farmington, New Mexico, Pollution Control Revenue Refunding 4/10 at 100.00 Baa3 8,447,555
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
8,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 8,723,840
6,200 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 6,760,976
------------------------------------------------------------------------------------------------------------------------------------
22,700 Total New Mexico 23,932,371
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.4% (5.5% OF TOTAL INVESTMENTS)
10,000 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AA- (4) 10,407,200
Lease Revenue Bonds, Court Facilities, Series 1999, 6.000%,
5/15/39 (Pre-refunded 5/15/10)
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,112,000
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
5,000 New York City Municipal Water Finance Authority, New York, 12/09 at 101.00 AAA 5,022,050
Water and Sewerage System Revenue Bonds, Fiscal Series
1999B, 5.000%, 6/15/29 - FSA Insured
2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 N/R (4) 2,298,476
Transportation Authority, Triborough Bridge and Tunnel
Authority, Certificates of Participation, Series 2000A,
5.750%, 1/01/20 (Pre-refunded 1/01/10) - AMBAC Insured
9,750 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AAA 10,148,678
Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29
(Pre-refunded 5/15/10)
5,385 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/10 at 100.50 Aa1 5,400,401
Bonds, Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
39,390 Total New York 40,388,805
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.9% (3.2% OF TOTAL INVESTMENTS)
18,555 North Carolina Eastern Municipal Power Agency, Power System 1/10 at 100.00 Baa1 18,576,519
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
FGIC Insured
1,900 North Carolina Turnpike Authority, Triangle Expressway System 1/19 at 100.00 AAA 1,997,926
Senior Lien Revenue Bonds, Series 2009A, 5.750%, 1/01/39 -
AGC Insured
3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,891,910
Doing Business as Carolinas HealthCare System, Health Care
Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47
------------------------------------------------------------------------------------------------------------------------------------
23,455 Total North Carolina 23,466,355
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 6.3% (4.1% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 240 5.125%, 6/01/24 6/17 at 100.00 BBB $ 213,758
2,980 5.375%, 6/01/24 6/17 at 100.00 BBB 2,724,644
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 2,349,999
2,755 5.750%, 6/01/34 6/17 at 100.00 BBB 2,316,817
7,995 5.875%, 6/01/47 6/17 at 100.00 BBB 5,923,655
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,378,143
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-3, 0.000%, 6/01/37
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
5,000 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,183,150
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,183,150
3,750 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/17 at 100.00 A 2,630,925
University Hospitals Health System Inc., Series 2007A,
Trust 2812-1, 12.410%, 1/15/46 - AMBAC Insured (IF)
185 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 190,526
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,755 Total Ohio 30,094,767
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,709,137
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
2,235 Oklahoma Development Finance Authority, Revenue Bonds, St. 2/14 at 100.00 A 2,245,974
John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
3,910 Total Oklahoma 3,955,111
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7% (1.8% OF TOTAL INVESTMENTS)
95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 95,747
Revenue Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/18 at 100.00 AAA 1,259,025
Series 2008, 5.000%, 12/01/43 - FSA Insured
3,250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 3,027,343
Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31
(Alternative Minimum Tax) (UB)
8,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/27 at 100.00 A2 5,108,518
Capital Appreciation Series 2009E, 0.000%, 12/01/38
5,000 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 3,641,400
Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
17,795 Total Pennsylvania 13,132,033
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.7% (1.8% OF TOTAL INVESTMENTS)
800 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call BBB- 616,256
Facilities Revenue Refunding Bonds, Series 2002D, 0.000%,
7/01/31 - AMBAC Insured
2,200 Puerto Rico Public Buildings Authority, Guaranteed Government 7/17 at 100.00 Baa3 (4) 2,164,514
Facilities Revenue Refunding Bonds, Series 2002D, 0.000%,
7/01/31 (Pre-refunded 7/01/17) - AMBAC Insured
12,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ 8,847,960
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/32
23,890 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 1,461,351
Revenue Bonds, Series 2007A, 0.000%, 8/01/54 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
38,890 Total Puerto Rico 13,090,081
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.6% (1.0% OF TOTAL INVESTMENTS)
Rhode Island Housing & Mortgage Finance Corporation,
Homeownership Opportunity 57-B Bond Program, Series 2008,
Trust 1177:
1,500 9.524%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,534,770
1,000 9.624%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,012,090
5,255 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 4,971,335
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
7,755 Total Rhode Island 7,518,195
------------------------------------------------------------------------------------------------------------------------------------
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.7% (5.1% OF TOTAL INVESTMENTS)
Greenville County School District, South Carolina,
Installment Purchase Revenue Bonds, Series 2002:
$ 5,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA (4) $ 6,373,785
4,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA (4) 5,214,915
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, 10/11 at 100.00 A 3,740,325
Self Memorial Hospital, Series 2001, 5.500%, 10/01/31
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 2,893,150
Hospital Revenue Refunding and Improvement Bonds, Series
2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13)
2,825 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 A 2,911,276
FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%,
2/15/22 - NPFG Insured
21,565 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call A- 6,622,396
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC
Insured
1,250 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aa1 1,260,538
Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20 -
FSA Insured (Alternative Minimum Tax)
7,555 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 7,927,915
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
49,445 Total South Carolina 36,944,300
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.7% (1.1% OF TOTAL INVESTMENTS)
4,375 Sioux Falls, South Dakota, Industrial Revenue Refunding 10/14 at 100.00 AAA 5,348,875
Bonds, Great Plains Hotel Corporation, Series 1989,
8.500%, 11/01/16 (Pre-refunded 10/15/14) (Alternative
Minimum Tax)
1,280 South Dakota Education Loans Inc., Revenue Bonds, Subordinate 12/09 at 101.00 B3 919,130
Series 1998-1K, 5.600%, 6/01/20 (Alternative Minimum Tax)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,776,705
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
7,405 Total South Dakota 8,044,710
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 4.3% (2.9% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 5,115,950
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,060 Knox County Health, Educational and Housing Facilities Board, 1/13 at 80.49 AAA 14,100,776
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A, 0.000%, 1/01/17 - FSA Insured
2,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 1,719,860
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Refunding Series 200A, 5.440%, 9/01/32
------------------------------------------------------------------------------------------------------------------------------------
27,060 Total Tennessee 20,936,586
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.6% (9.6% OF TOTAL INVESTMENTS)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa3 2,983,269
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 7,145,418
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
4,080 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 3,520,102
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 5,980,645
Revenue Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded
12/01/11) - AMBAC Insured
2,000 Ennis Independent School District, Ellis County, Texas, 8/16 at 54.64 Aaa 777,940
General Obligation Bonds, Series 2006, 0.000%, 8/15/28
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB 1,564,648
Revenue Bonds, Valero Energy Corporation, Series 2001,
6.650%, 4/01/32 (Alternative Minimum Tax)
7,570 Harris County-Houston Sports Authority, Texas, Junior Lien No Opt. Call A 1,582,054
Revenue Bonds, Series 2001H, 0.000%, 11/15/31 - NPFG
Insured
5,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA+ 5,143,150
Obligation Bonds, Series 2003, 5.000%, 2/15/26 - AMBAC
Insured (UB)
9,000 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call BBB+ 8,509,860
Revenue Refunding Bonds, Houston Light and Power Company,
Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative
Minimum Tax)
Nuveen Investments 41
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 7,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 $ 5,148,570
Refunding Bonds, Capital Appreciation Series 2008I,
0.000%, 1/01/43
340 Panhandle Regional Housing Finance Corporation, Texas, GNMA 11/09 at 100.00 N/R 344,457
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1991A, 7.500%, 5/01/24 (Alternative
Minimum Tax)
2,210 Richardson Hospital Authority, Texas, Revenue Bonds, 12/13 at 100.00 Baa2 2,160,916
Richardson Regional Medical Center, Series 2004, 6.000%,
12/01/19
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 4,833,668
System Revenue Refunding Bonds, Series 2002A, 6.000%,
10/01/21
5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100.00 AAA 5,725,170
Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%,
8/15/26
4,375 Tarrant County Cultural & Educational Facilities Financing 11/17 at 100.00 AA- 3,852,669
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2008, Trust 1197, 9.071%, 11/15/47 (IF)
3,335 Texas State, General Obligation Bonds, Water Financial 8/19 at 100.00 AA+ 3,777,955
Assistance, Tender Option Bond Trust 3479, 13.214%,
8/01/39 (IF)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/36 8/15 at 33.75 AAA 2,161,074
9,110 0.000%, 8/15/41 8/15 at 25.73 AAA 1,633,332
7,110 0.000%, 8/15/45 8/15 at 20.76 AAA 1,006,705
1,785 Winter Garden Housing Finance Corporation, Texas, GNMA/FNMA 4/10 at 100.00 AAA 1,787,570
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1994, 6.950%, 10/01/27 (Alternative
Minimum Tax)
2,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 57.10 AAA 869,500
General Obligation Bonds, Series 2005, 0.000%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
104,310 Total Texas 70,508,672
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.1% (2.7% OF TOTAL INVESTMENTS)
3,565 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 3,736,655
Payson Power Project, Series 2003A, 5.000%, 4/01/24 - FSA
Insured (UB)
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health 2/10 at 100.00 A (4) 16,111,310
Services Inc., Series 1997, 5.250%, 8/15/26 - NPFG Insured
(ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,615 Total Utah 19,847,965
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.9% (1.3% OF TOTAL INVESTMENTS)
Vermont Educational and Health Buildings Financing Agency,
Revenue Bonds, Fletcher Allen Health Care Inc., Series
2000A:
3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 Baa1 3,798,492
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 Baa1 4,353,072
1,035 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 1,057,221
Series 2000-13A, 5.950%, 11/01/25 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,020 Total Vermont 9,208,785
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,000 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,702,040
Residential Care Facilities Mortgage Revenue Bonds,
Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42
5,000 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 3,416,200
Dulles Toll Road Revenue Bonds, Series 2009C., 0.000%,
10/01/41 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Virginia 5,118,240
------------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA $ 8,811,410
Consolidated System Revenue Bonds, Series 2001A, 5.600%,
1/01/36 - NPFG Insured (Alternative Minimum Tax) (UB)
3,750 FYI Properties, Washington, Lease Revenue Bonds, Washington 6/19 at 100.00 AA 3,933,750
State Department of Information Services Project, Series
2009, 5.500%, 6/01/39
7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 A 7,308,015
Terminal 18, Series 1999B, 6.000%, 9/01/20 - NPFG Insured
(Alternative Minimum Tax)
2,500 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 2,000,225
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
22,285 Total Washington 22,053,400
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.0% (0.7% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,045,000
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.8% (1.8% OF TOTAL INVESTMENTS)
5,950 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 6,501,625
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/27 (Pre-refunded 6/01/12)
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 5,051,250
Bonds, Madison Gas and Electric Company Projects, Series
2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,765,910
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
13,050 Total Wisconsin 13,318,785
------------------------------------------------------------------------------------------------------------------------------------
$ 949,270 Total Investments (cost $729,435,281) - 151.9% 730,919,102
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.9)% (18,540,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.2% 20,129,208
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.2)% (5) (251,275,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 481,233,310
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 34.4%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 43
NQU | Nuveen Quality Income Municipal Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.8% (1.8% OF TOTAL INVESTMENTS)
Jefferson County, Alabama, Sewer Revenue Capitol Improvement
Warrants, Series 2001A:
$ 7,475 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA $ 7,973,358
6,340 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,693,645
6,970 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,434,690
------------------------------------------------------------------------------------------------------------------------------------
20,785 Total Alabama 22,101,693
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.8% (1.1% OF TOTAL INVESTMENTS)
6,110 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 6,266,783
Bonds, Series 2005A, 5.000%, 12/01/27 - FGIC Insured (UB)
11,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 7,309,500
Settlement Asset-Backed Bonds, Series 2006A, 5.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
17,110 Total Alaska 13,576,283
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.2% (1.4% OF TOTAL INVESTMENTS)
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A2 5,354,976
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/28 - NPFG Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, Series No Opt. Call AA- 1,104,030
2002, 5.250%, 7/01/17 - FGIC Insured
2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,366,286
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
8,010 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 8,264,638
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.125%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
16,710 Total Arizona 17,089,930
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS)
Arkansas Development Finance Authority, Tobacco Settlement
Revenue Bonds, Arkansas Cancer Research Center Project,
Series 2006:
2,500 0.000%, 7/01/36 - AMBAC Insured No Opt. Call Aa3 611,550
19,800 0.000%, 7/01/46 - AMBAC Insured No Opt. Call Aa3 2,716,362
4,000 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aa3 4,079,720
Sciences Campus, Series 2004B, 5.000%, 11/01/34 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
26,300 Total Arkansas 7,407,632
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.8% (8.9% OF TOTAL INVESTMENTS)
12,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 2,620,250
Lease Revenue Bonds, Public Improvement Project, Series
1997C, 0.000%, 9/01/35 - FSA Insured
1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 1,127,190
Revenue Bonds, Series 2002A, 5.750%, 5/01/17 (Pre-refunded
5/01/12)
6,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 5,570,700
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
3,450 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,257,732
Bonds, J. David Gladstone Institutes, Series 2001, 5.250%,
10/01/34
1,360 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,249,024
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
3,600 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 3,714,408
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
14,600 California, General Obligation Bonds, Series 2003, 5.250%, 8/13 at 100.00 A 14,618,396
2/01/28
25,000 California, General Obligation Bonds, Series 2005, 4.750%, 3/16 at 100.00 A 22,266,749
3/01/35 - NPFG Insured
10,000 California, Various Purpose General Obligation Bonds, Series 4/10 at 100.00 A 9,314,700
1999, 4.750%, 4/01/29 - NPFG Insured
16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A 14,977,920
2007, 5.000%, 6/01/37
8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 A 7,304,305
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
NPFG Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
$ 10,100 5.000%, 6/01/33 6/17 at 100.00 BBB $ 7,707,108
1,500 5.125%, 6/01/47 6/17 at 100.00 BBB 996,585
3,300 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 3,523,509
Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39
1,830 San Diego Public Facilities Financing Authority, California, 8/19 at 100.00 AA- 2,306,971
Water Utility Revenue Bonds, Tender Option Bond Trust
3504, 19.428%, 8/01/39 (IF)
30,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 4,674,000
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - NPFG Insured
3,000 San Mateo County Community College District, California, No Opt. Call Aa1 951,480
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
NPFG Insured
1,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,062,510
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
153,240 Total California 107,243,537
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.3% (3.4% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,001,730
Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA
Insured
10,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 10,026,200
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC
Insured (Alternative Minimum Tax)
6,185 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 2,059,296
Bonds, Series 1997B, 0.000%, 9/01/26 - NPFG Insured
43,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 8,457,240
Bonds, Series 2000B, 0.000%, 9/01/33 - NPFG Insured
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 65.63 Aaa 9,391,824
Bonds, Series 2000B, 0.000%, 9/01/17 (Pre-refunded
9/01/10) - NPFG Insured
7,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 1,266,650
Series 2004A, 0.000%, 9/01/34 - NPFG Insured
8,740 Larimer County School District R1, Poudre, Colorado, General 12/10 at 100.00 Aa3 (4) 9,208,814
Obligation Bonds, Series 2000, 5.125%, 12/15/19
(Pre-refunded 12/15/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
90,325 Total Colorado 41,411,754
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,395 Bridgeport, Connecticut, General Obligation Bonds, Series 8/11 at 100.00 A- (4) 4,740,535
2001C, 5.375%, 8/15/17 (Pre-refunded 8/15/11) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 5,360,500
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded
11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,000 Medical Center Hospital Authority, Georgia, Revenue 8/18 at 100.00 AAA 5,492,450
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 2008, 6.500%, 8/01/38
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.8% OF TOTAL INVESTMENTS)
10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A 10,212,200
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.8% (10.2% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Revenues, Series 2001C:
1,000 5.500%, 12/01/18 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 1,097,270
3,000 5.000%, 12/01/20 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,260,850
2,000 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,173,900
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
9,400 0.000%, 12/01/14 - FGIC Insured No Opt. Call AA- 7,970,448
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AA- 3,528,668
Nuveen Investments 45
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 32,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- $ 9,602,693
Series 1999, 0.000%, 1/01/32 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, Neighborhoods
Alive 21 Program, Series 2000A:
680 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 712,708
4,320 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 4,527,792
190 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AA- 200,070
5.000%, 1/01/18 - AMBAC Insured
Chicago, Illinois, General Obligation Bonds, Series 2002A:
70 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 Aa3 (4) 77,464
6,190 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 AA- (4) 6,850,040
5,045 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- 5,116,336
2000D, 5.750%, 1/01/30 - FGIC Insured
13,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/10 at 100.50 A 12,261,167
1998A, 5.125%, 1/01/35 - NPFG Insured (Alternative Minimum
Tax)
Chicago, Illinois, Second Lien Wastewater Transmission
Revenue Bonds, Series 2000:
8,000 5.750%, 1/01/25 (Pre-refunded 1/01/10) - NPFG Insured 1/10 at 101.00 A+ (4) 8,154,240
7,750 6.000%, 1/01/30 (Pre-refunded 1/01/10) - NPFG Insured 1/10 at 101.00 A+ (4) 7,902,675
Illinois Educational Facilities Authority, Student Housing
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002:
3,000 6.625%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,438,720
1,800 6.000%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,035,530
1,050 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 A3 1,076,754
Certificates, Local Government Program - Kankakee County,
Series 2005B, 5.000%, 12/01/20 - AMBAC Insured
15,000 Illinois Finance Authority, Illinois, Northwestern 12/15 at 100.00 AAA 15,251,100
University, Revenue Bonds, Series 2006, 5.000%, 12/01/42
(UB)
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,997,880
Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC
Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 962,860
Services Corporation, Series 2008A, 5.500%, 2/01/40 -
AMBAC Insured
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 N/R (4) 5,791,450
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
(Pre-refunded 8/15/14)
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 Aa3 (4) 10,248,400
Health System, Series 2000, 5.875%, 2/15/30 - AMBAC
Insured (ETM)
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 12/10 at 100.00 AA- 5,196,400
Series 2000, 5.450%, 12/01/21 - NPFG Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,318,124
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - NPFG Insured
958 Montgomery, Illinois, Lakewood Creek Project Special 3/16 at 100.00 BBB- 803,819
Assessment Bonds, Series 2007, 4.700%, 3/01/30 - RAAI
Insured
------------------------------------------------------------------------------------------------------------------------------------
145,033 Total Illinois 122,557,358
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 A+ 1,961,260
Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%,
3/01/34 - AMBAC Insured
3,240 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 A+ 3,313,321
Bonds, Marion General Hospital, Series 2002, 5.625%,
7/01/19 - AMBAC Insured
2,400 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 A 2,091,384
Community Hospitals of Indiana, Series 2005A, 5.000%,
5/01/35 - AMBAC Insured
6,015 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/10 at 100.00 AA- 5,867,031
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
13,655 Total Indiana 13,232,996
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.0% (0.7% OF TOTAL INVESTMENTS)
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
4,000 5.375%, 6/01/38 6/15 at 100.00 BBB 2,938,800
7,000 5.625%, 6/01/46 6/15 at 100.00 BBB 5,146,890
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Iowa 8,085,690
------------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aa3 (4) $ 4,755,562
Obligation Bonds, Series 2000, 4.750%, 9/01/19
(Pre-refunded 9/01/10) - FSA Insured
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas 6/14 at 100.00 A 1,767,623
and Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,335 Total Kansas 6,523,185
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,071,950
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured
2,500 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,745,075
Refunding Bonds, Project 74, Series 2002, 5.375%, 2/01/18
(Pre-refunded 2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,500 Total Kentucky 3,817,025
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.6% (2.3% OF TOTAL INVESTMENTS)
10,000 Louisiana Public Facilities Authority, Hospital Revenue No Opt. Call AAA 11,030,200
Bonds, Franciscan Missionaries of Our Lady Health System,
Series 1998A, 5.750%, 7/01/25 - FSA Insured (UB)
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 8,462,160
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 A2 (4) 6,061,880
University, Series 2002A, 5.000%, 7/01/32 (Pre-refunded
7/01/12) - AMBAC Insured
2,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,615,595
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
27,390 Total Louisiana 28,169,835
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.3% (4.7% OF TOTAL INVESTMENTS)
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 454,360
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/38
7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 8,987,449
Revenue Bonds, Massachusetts Institute of Technology,
Series 2002K, 5.500%, 7/01/32 (UB)
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/09 at 101.00 BBB 5,375,100
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
12,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/10 at 100.00 A 11,790,875
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/10 at 100.00 AA 12,786,120
Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 -
AMBAC Insured
425 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 2/10 at 101.00 AAA 430,644
MWRA Loan Program, Subordinate Series 1999A, 5.750%,
8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AA+ (4) 10,480,800
Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded
8/01/10) - FGIC Insured
5,730 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 A+ (4) 6,011,687
Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20
(Pre-refunded 11/01/10) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
56,060 Total Massachusetts 56,317,035
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.0% (0.7% OF TOTAL INVESTMENTS)
3,790 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 4,004,135
Detroit City School District, Series 2005, 5.000%, 6/01/20
- FSA Insured
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,692,052
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,339,923
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
7,990 Total Michigan 8,036,110
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.3% (0.8% OF TOTAL INVESTMENTS)
Chaska, Minnesota, Electric Revenue Bonds, Generating
Facility Project, Series 2000A:
$ 1,930 6.000%, 10/01/20 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) $ 2,027,156
2,685 6.000%, 10/01/25 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,820,163
3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,136,298
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
(ETM)
------------------------------------------------------------------------------------------------------------------------------------
8,270 Total Minnesota 9,983,617
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 1,909,519
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
2,500 Mississippi Hospital Equipment and Facilities Authority, 1/11 at 101.00 Aa3 (4) 2,662,925
Revenue Bonds, Forrest County General Hospital, Series
2000, 5.500%, 1/01/27 (Pre-refunded 1/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,375 Total Mississippi 4,572,444
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6% (1.0% OF TOTAL INVESTMENTS)
15,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 5,205,150
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
2,400 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,459,040
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/23 - FSA Insured
15,350 Springfield Public Building Corporation, Missouri, Lease No Opt. Call N/R 4,323,942
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
0.000%, 6/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,750 Total Missouri 11,988,132
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.3% (3.4% OF TOTAL INVESTMENTS)
34,470 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 37,982,836
Bonds, Series 2002C, 5.000%, 6/15/20 (Pre-refunded
6/15/12) - NPFG Insured
6,845 Director of Nevada State Department of Business and Industry, No Opt. Call Caa2 596,816
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/23 - AMBAC Insured
2,500 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,688,850
Healthcare West, Trust 2634, 18.374%, 7/01/31 - BHAC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,815 Total Nevada 41,268,502
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.1% (3.3% OF TOTAL INVESTMENTS)
1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA 1,120,520
Series 2002A, 5.000%, 12/15/21 (Pre-refunded 12/15/12) -
FSA Insured
10,000 New Jersey Health Care Facilities Financing Authority, 1/17 at 37.38 BB+ 1,134,300
Revenue Bonds, Saint Barnabas Health Care System, Series
2006A, 0.000%, 7/01/36
2,150 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- (4) 2,271,647
Revenue Bonds, Trinitas Hospital Obligated Group, Series
2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10)
2,025 New Jersey Transportation Trust Fund Authority, 12/11 at 100.00 AA- (4) 2,248,864
Transportation System Bonds, Series 2001B, 6.000%,
12/15/19 (Pre-refunded 12/15/11) - NPFG Insured
3,200 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 3,659,648
Transportation System Bonds, Series 2003C, 5.500%, 6/15/22
(Pre-refunded 6/15/13)
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
20,000 0.000%, 12/15/33 - FSA Insured No Opt. Call AAA 4,948,200
20,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 3,942,000
20,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 3,694,800
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
1,965 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,136,191
1,000 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,128,800
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
$ 9,420 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA $ 11,102,224
1,850 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,156,712
------------------------------------------------------------------------------------------------------------------------------------
92,610 Total New Jersey 39,543,906
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,461,094
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21 (Pre-refunded 8/01/11)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.6% (10.0% OF TOTAL INVESTMENTS)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series
2000B:
100 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 101,669
65 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 66,079
1,005 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 1,021,683
8,830 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 8,976,578
275 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 100.00 A 275,646
Bonds, Fordham University, Series 1998, 5.000%, 7/01/28 -
NPFG Insured
2,250 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call A 2,329,695
Bonds, Mount Sinai School of Medicine, Series 1994A,
5.150%, 7/01/24 - NPFG Insured
20,000 Erie County Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA 21,013,599
York, Senior Tobacco Settlement Asset-Backed Bonds, Series
2000, 6.125%, 7/15/30 (Pre-refunded 7/15/10)
1,320 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,113,090
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
1,130 Long Island Power Authority, New York, Electric System 9/11 at 100.00 AAA 1,227,745
General Revenue Bonds, Series 2001A, 5.375%, 9/01/25
(Pre-refunded 9/01/11)
15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100.00 AA (4) 15,352,650
Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30
(Pre-refunded 4/01/10) - FGIC Insured
13,600 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA 12,835,408
Transportation Revenue Bonds, Series 2006B, 4.500%,
11/15/32 - FSA Insured (UB)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000B:
8,035 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 8,352,704
2,065 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 2,146,650
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 AA 987,924
6,555 5.750%, 8/01/18 8/12 at 100.00 AA 7,144,557
3,990 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA (4) 4,508,181
Series 2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12)
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 5,470,700
Series 2003A, 5.750%, 8/01/16
New York State Environmental Facilities Corporation, State
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, New York City Municipal Water Finance Authority
Projects, Second Resolution Bonds, Series 2001C:
6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,190,763
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,720,505
11,540 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 12,695,500
Revenue Bonds, One Hundred Twenty-Eighth Series 2002,
5.000%, 11/01/20 - FSA Insured
2,250 United Nations Development Corporation, New York, Senior Lien 1/10 at 100.00 A3 2,251,665
Revenue Bonds, Series 2004A, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
116,570 Total New York 120,782,991
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA $ 3,786,320
Bonds, Mission St. Joseph's Health System, Series 2007,
4.500%, 10/01/31 (UB)
665 North Carolina Medical Care Commission, Hospital Revenue 12/10 at 100.00 A1 630,566
Bonds, Pitt County Memorial Hospital, Series 1998A,
4.750%, 12/01/28 - NPFG Insured
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A 7,810,050
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - NPFG Insured
3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,891,910
Doing Business as Carolinas HealthCare System, Health Care
Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47
------------------------------------------------------------------------------------------------------------------------------------
15,165 Total North Carolina 15,118,846
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.7% (3.7% OF TOTAL INVESTMENTS)
10,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 10,048,600
Series 2008, 5.250%, 2/15/43
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
205 5.125%, 6/01/24 6/17 at 100.00 BBB 182,585
1,925 5.875%, 6/01/30 6/17 at 100.00 BBB 1,675,462
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,463,253
2,400 6.000%, 6/01/42 6/17 at 100.00 BBB 1,850,808
5,730 5.875%, 6/01/47 6/17 at 100.00 BBB 4,245,472
Cincinnati City School District, Hamilton County, Ohio,
General Obligation Bonds, Series 2002:
2,165 5.250%, 6/01/19 - FSA Insured 12/12 at 100.00 AAA 2,278,554
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,717,286
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,067,740
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,369,800
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA
Insured (UB)
9,350 Ohio Water Development Authority, Solid Waste Disposal 3/10 at 101.00 N/R 8,453,896
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
48,115 Total Ohio 44,353,456
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.6% (2.3% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,709,137
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
6,040 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A 5,698,559
John Health System, Series 2007, 5.000%, 2/15/42
2,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 1,745,240
Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
17,510 Pottawatomie County Home Finance Authority, Oklahoma, Single No Opt. Call AAA 18,471,999
Family Mortgage Revenue Bonds, Series 1991A, 8.625%,
7/01/10 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
27,225 Total Oklahoma 27,624,935
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Deschutes County School District 1, Bend-La Pine, Oregon, 6/11 at 100.00 Aa2 (4) 3,231,330
General Obligation Bonds, Series 2001A, 5.500%, 6/15/18
(Pre-refunded 6/15/11) - FSA Insured
210 Oregon Housing and Community Services Department, Single 1/14 at 100.00 Aa2 211,621
Family Mortgage Revenue Bonds, Series 2004H, 5.125%,
1/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,210 Total Oregon 3,442,951
------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.2% (2.7% OF TOTAL INVESTMENTS)
$ 2,000 Allegheny County Hospital Development Authority, No Opt. Call Aa3 $ 2,048,980
Pennsylvania, University of Pittsburgh Medical Center
Revenue Bonds, Series 2009A, 5.625%, 8/15/39
220 Allentown, Pennsylvania, General Obligation Bonds, Series 10/13 at 100.00 Baa1 238,603
2003, 5.500%, 10/01/19 - FGIC Insured
1,450 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,464,906
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,397,235
Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31
(Alternative Minimum Tax) (UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 Aa3 2,668,172
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
5,000 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 3,641,400
Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 7,802,028
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA
Insured
Philadelphia School District, Pennsylvania, General
Obligation Bonds, Series 2002B:
6,000 5.625%, 8/01/19 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,753,600
5,500 5.625%, 8/01/20 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,190,800
------------------------------------------------------------------------------------------------------------------------------------
32,070 Total Pennsylvania 32,205,724
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 5.7% (3.6% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 2,555,650
Senior Lien Series 2008A, 6.000%, 7/01/44
5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 475,200
Revenue Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured
5,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.000%, 8/12 at 100.00 AAA 5,029,600
8/01/27 - FSA Insured
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 1,499,280
Facilities Revenue Refunding Bonds, Series 2002D, 5.125%,
7/01/20
8,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ 5,898,640
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/32
Puerto Rico Sales Tax Financing Corporation, Sales Tax
Revenue Bonds, Series 2007A:
50,000 0.000%, 8/01/47 - AMBAC Insured No Opt. Call AA- 5,150,500
55,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call AA- 3,364,350
15,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 AA- 15,247,050
Revenue Bonds, Tender Option Bond, Series 2007A, 5.250%,
8/01/57 (UB)
1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,498,080
Series 2001A, 5.500%, 7/01/29
3,465 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 3,306,996
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
146,965 Total Puerto Rico 44,025,346
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed Bonds, Series 2002A:
2,200 6.125%, 6/01/32 6/12 at 100.00 BBB 2,081,244
1,865 6.250%, 6/01/42 6/12 at 100.00 BBB 1,695,080
------------------------------------------------------------------------------------------------------------------------------------
4,065 Total Rhode Island 3,776,324
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.2% (5.2% OF TOTAL INVESTMENTS)
24,725 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 28,278,723
Installment Purchase Revenue Bonds, Series 2002, 5.500%,
12/01/22 (Pre-refunded 12/01/12)
Horry County School District, South Carolina, General
Obligation Bonds, Series 2001A:
5,840 5.000%, 3/01/20 3/12 at 100.00 Aa1 6,218,432
5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,473,072
Nuveen Investments 51
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
$ 5,240 5.250%, 8/15/20 - NPFG Insured 8/14 at 100.00 A $ 5,423,557
3,000 5.250%, 2/15/24 - NPFG Insured 8/14 at 100.00 A 3,078,900
13,615 South Carolina Transportation Infrastructure Bank, Junior 10/11 at 100.00 N/R (4) 14,730,205
Lien Revenue Bonds, Series 2001B, 5.125%, 10/01/21
(Pre-refunded 10/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
57,560 Total South Carolina 63,202,889
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 3,100,410
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.9% (9.6% OF TOTAL INVESTMENTS)
535 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 AAA 581,015
Combined Fee Revenue Refunding Bonds, Series 2001, 5.375%,
11/01/16 - FSA Insured
465 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 Aa3 (4) 507,943
Combined Fee Revenue Refunding Bonds, Series 2001, 5.375%,
11/01/16 (Pre-refunded 11/01/11) - FSA Insured
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 10,147,846
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
5,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 4,690,455
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 5,090,500
Refunding and Improvement Bonds, Series 2001A, 5.625%,
11/01/21 - FGIC Insured (Alternative Minimum Tax)
2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 A 2,471,742
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - NPFG
Insured
14,975 Harris County-Houston Sports Authority, Texas, Third Lien 11/24 at 55.69 A 2,504,719
Revenue Bonds, Series 2004-A3., 0.000%, 11/15/34 - NPFG
Insured
4,865 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 1,835,613
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/27 - AMBAC Insured
22,500 Houston, Texas, Junior Lien Water and Sewerage System Revenue 12/10 at 100.00 AA (4) 23,627,699
Refunding Bonds, Series 2000B, 5.250%, 12/01/30
(Pre-refunded 12/01/10) - FGIC Insured
4,590 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,599,914
Bonds, Series 2000A, 5.625%, 7/01/30 - FSA Insured
(Alternative Minimum Tax)
6,000 Leander Independent School District, Williamson and Travis 8/14 at 33.33 AAA 1,554,660
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/34
17,655 Matagorda County Navigation District 1, Texas, Revenue 11/09 at 101.00 A 16,468,937
Refunding Bonds, Houston Industries Inc., Series 1998B,
5.150%, 11/01/29 - NPFG Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, 11/09 at 100.00 BBB 7,652,372
Revenue Refunding Bonds, Union Pacific Corporation, Series
1992, 5.350%, 11/01/10
2,000 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 BBB 2,039,100
System Revenue Refunding Bonds, Series 2002A, 5.750%,
10/01/21 - RAAI Insured
11,300 San Antonio, Texas, Electric and Gas System Revenue Refunding No Opt. Call AAA 12,395,761
Bonds, New Series 1992, 5.000%, 2/01/17 (ETM)
3,750 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,958,575
Texas, Limited Tax Schoolhouse and Refunding Bonds, Series
2001, 5.125%, 2/01/23 (Pre-refunded 2/01/11)
4,375 Tarrant County Cultural & Educational Facilities Financing 11/17 at 100.00 AA- 3,852,669
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2008, Trust 1197, 9.071%, 11/15/47 (IF)
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
$ 9,110 0.000%, 8/15/38 8/15 at 30.30 AAA $ 1,932,869
9,110 0.000%, 8/15/39 8/15 at 28.63 AAA 1,828,833
6,610 0.000%, 8/15/42 8/15 at 24.42 AAA 1,119,139
7,110 0.000%, 8/15/43 8/15 at 23.11 AAA 1,132,125
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AA- (4) 5,372,450
Sewerage System Revenue Bonds, Series 2001, 5.000%,
8/01/22 (Pre-refunded 8/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
162,055 Total Texas 115,364,936
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.7% (1.1% OF TOTAL INVESTMENTS)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue Refunding 2/10 at 100.00 BBB 5,817,922
Bonds, Laidlaw/ECDC Project, Guaranteed by Allied Waste
Industries, Series 1995, 7.500%, 2/01/10 (Alternative
Minimum Tax)
7,155 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 7,435,118
Payson Power Project, Series 2003A, 5.000%, 4/01/25 - FSA
Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
12,955 Total Utah 13,253,040
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.6% (1.7% OF TOTAL INVESTMENTS)
5,000 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 3,416,200
Dulles Toll Road Revenue Bonds, Series 2009C., 0.000%,
10/01/41 - AGC Insured
4,000 Norfolk Airport Authority, Virginia, Airport Revenue 7/11 at 100.00 A 3,743,880
Refunding Bonds, Series 2001B, 5.125%, 7/01/31 - FGIC
Insured (Alternative Minimum Tax)
11,040 Suffolk Redevelopment and Housing Authority, Virginia, FNMA No Opt. Call Aaa 11,566,387
Multifamily Housing Revenue Refunding Bonds, Windsor at
Potomac Vista L.P. Project, Series 2001, 4.850%, 7/01/31
(Mandatory put 7/01/11)
665 Virginia Housing Development Authority, Rental Housing Bonds, 11/09 at 101.00 AA+ 671,983
Series 1999F, 5.000%, 5/01/15 (Alternative Minimum Tax)
Virginia Resources Authority, Water System Revenue Refunding
Bonds, Series 2002:
500 5.000%, 4/01/18 4/12 at 102.00 AA 542,125
500 5.000%, 4/01/19 4/12 at 102.00 AA 540,500
------------------------------------------------------------------------------------------------------------------------------------
21,705 Total Virginia 20,481,075
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.6% (6.8% OF TOTAL INVESTMENTS)
6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,327,395
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 5.350%, 7/01/18 - FSA Insured
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,738,325
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - NPFG Insured
3,750 FYI Properties, Washington, Lease Revenue Bonds, Washington 6/19 at 100.00 AA 3,933,750
State Department of Information Services Project, Series
2009, 5.500%, 6/01/39
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 Aa2 6,971,406
5.625%, 2/01/24 - NPFG Insured (Alternative Minimum Tax)
(UB)
13,400 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 Aa2 13,944,174
Series 2000, 5.400%, 12/01/25
5,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AA 4,775,500
Bonds, Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured (UB)
7,330 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 7,420,819
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
18,145 Washington, General Obligation Bonds, Series 2001-02A, 7/11 at 100.00 AAA 19,116,846
5.000%, 7/01/23 - FSA Insured
Washington, Motor Vehicle Fuel Tax General Obligation Bonds,
Series 2002C:
7,000 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 7,454,230
7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,182,641
------------------------------------------------------------------------------------------------------------------------------------
78,785 Total Washington 81,865,086
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1% (1.4% OF TOTAL INVESTMENTS)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
$ 130 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA $ 142,052
3,380 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,791,617
7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/09 at 101.00 A3 7,746,377
Bonds, Dairyland Power Cooperative, Series 1997A, 5.450%,
9/01/14 - AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 2,917,801
Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.750%,
5/01/29
2,100 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 1,765,912
Revenue Bonds, Wheaton Franciscan Services Inc., Series
2003A, 5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
16,155 Total Wisconsin 16,363,759
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,035 Campbell County, Wyoming Solid Waste Facilities Revenue 7/19 at 100.00 A+ 2,143,080
Bonds, Basin Electric Power Cooperative - Dry Fork Station
Facilities, Series 2009A, 5.750%, 7/15/39
4,000 Wyoming Municipal Power Agency Power Supply System Revenue 1/18 at 100.00 A2 4,048,441
Bonds, 2008 Series A, 5.375%, 1/01/42
------------------------------------------------------------------------------------------------------------------------------------
6,035 Total Wyoming 6,191,521
------------------------------------------------------------------------------------------------------------------------------------
$ 1,559,208 Total Investments (cost $1,178,627,349) - 155.7% 1,206,346,732
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.6)% (66,620,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 22,130,204
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (5) (386,875,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 774,981,936
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 32.1%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
54 Nuveen Investments
NPF | Nuveen Premier Municipal Income Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.7% (1.0% OF TOTAL INVESTMENTS)
$ 2,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 1,993,780
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
(UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A:
1,200 5.250%, 11/15/20 11/15 at 100.00 Baa2 1,156,164
400 5.000%, 11/15/30 11/15 at 100.00 Baa2 348,656
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,141,610
Alabama, Revenue Bonds, Baptist Medical Center, Series
2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
4,600 Total Alabama 4,640,210
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 664,500
Settlement Asset-Backed Bonds, Series 2006A, 5.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 7.8% (4.7% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
100 5.250%, 12/01/24 12/15 at 100.00 BBB 96,363
135 5.250%, 12/01/25 12/15 at 100.00 BBB 129,198
7,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 5,823,510
Plaza, Series 2005B, 0.000%, 7/01/39 - FGIC Insured
7,500 Salt River Project Agricultural Improvement and Power 1/13 at 100.00 Aa1 7,739,925
District, Arizona, Electric System Revenue Bonds, Series
2002B, 5.000%, 1/01/25 (UB)
6,000 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 6,574,440
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.250%, 1/01/15
1,200 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 1,026,420
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
21,935 Total Arizona 21,389,856
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,155 Arkansas Development Finance Authority, State Facility 11/15 at 100.00 AAA 2,297,036
Revenue Bonds, Department of Correction Special Needs Unit
Project, Series 2005B, 5.000%, 11/01/25 - FSA Insured
2 Stuttgart Public Facilities Board, Arkansas, Single Family 3/10 at 100.00 Aaa 2,299
Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%,
9/01/11
------------------------------------------------------------------------------------------------------------------------------------
2,157 Total Arkansas 2,299,335
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.9% (12.7% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 A 8,585,598
Improvement Project Lease Bonds, Series 2007A-1, 4.375%,
3/01/37 - FGIC Insured
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 Aa2 5,797,826
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC
Insured
1,350 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 1,378,229
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,975 California Health Facilities Financing Authority, Revenue No Opt. Call A 2,083,349
Bonds, Catholic Healthcare West, Series 2004I, 4.950%,
7/01/26 (Mandatory put 7/01/14)
1,700 California Health Facilities Financing Authority, Revenue 10/19 at 100.00 AA 1,725,891
Bonds, Providence Health & Services, Series 2009B, 5.500%,
10/01/39
500 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 417,230
Bonds, Daughters of Charity Health System, Series 2005A,
5.000%, 7/01/39
1,600 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,573,376
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
1,025 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 1,085,847
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.552%, 11/15/48 (IF)
Nuveen Investments 55
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,900 California, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 A $ 4,918,963
6/01/23 - AMBAC Insured
1,000 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,052,880
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
25,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 19,798,997
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17
(ETM)
3,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,325,365
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
450 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 526,586
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
6,005 Los Angeles Unified School District, California, General 7/15 at 100.00 AA- 6,300,386
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC
Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
100 5.000%, 9/01/21 9/15 at 102.00 Baa3 91,922
110 5.000%, 9/01/23 9/15 at 102.00 Baa3 98,792
------------------------------------------------------------------------------------------------------------------------------------
64,905 Total California 57,761,237
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.5% (7.0% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 945,040
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/29
1,150 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 1,133,843
Medical Center, Series 2004, 5.000%, 9/01/25
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 A- 385,852
Valley Health Care, Series 2005F, 5.000%, 3/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 12/09 at 101.00 Aa3 (4) 1,014,560
Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23
(Pre-refunded 12/01/09) - FSA Insured
750 Colorado Health Facilities Authority, Revenue Bonds, Vail 1/15 at 100.00 BBB+ 748,148
Valley Medical Center, Series 2004, 5.000%, 1/15/17
Denver City and County, Colorado, Airport Revenue Bonds,
Series 2006:
4,170 5.000%, 11/15/23 - FGIC Insured 11/16 at 100.00 A+ 4,299,645
6,800 5.000%, 11/15/24 - FGIC Insured 11/16 at 100.00 A+ 6,970,136
Denver, Colorado, Airport Revenue Bonds, Series 2006A:
6,890 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 7,104,210
8,940 5.000%, 11/15/25 - FGIC Insured (UB 11/16 at 100.00 A+ 9,120,499
------------------------------------------------------------------------------------------------------------------------------------
31,100 Total Colorado 31,721,933
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,020 Connecticut Development Authority, Pollution Control Revenue 4/10 at 101.50 Baa1 2,026,100
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,700 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 1,178,440
Florida, Exempt Facilities Remarketed Revenue Bonds,
National Gypsum Company, Apollo Beach Project, Series
2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
2,500 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa1 2,650,675
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
1,000 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 938,750
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
------------------------------------------------------------------------------------------------------------------------------------
5,200 Total Florida 4,767,865
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.5% (2.7% OF TOTAL INVESTMENTS)
8,050 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 A 8,060,143
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - NPFG Insured (Alternative
Minimum Tax)
4,105 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 A1 4,351,054
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
12,155 Total Georgia 12,411,197
------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 2,250 Hawaii Department of Budget and Finance, Special Purpose 1/10 at 100.00 Baa1 $ 2,255,693
Revenue Bonds, Hawaiian Electric Company Inc., Series
1999D, 6.150%, 1/01/20 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3% (0.2% OF TOTAL INVESTMENTS)
75 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa1 75,113
Bonds, Series 1996E, 6.350%, 7/01/14 (Alternative Minimum
Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
500 5.250%, 9/01/26 9/16 at 100.00 BBB- 459,070
200 5.250%, 9/01/37 9/16 at 100.00 BBB- 171,186
------------------------------------------------------------------------------------------------------------------------------------
775 Total Idaho 705,369
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.8% (6.6% OF TOTAL INVESTMENTS)
580 Chicago Public Building Commission, Illinois, General No Opt. Call A (4) 661,652
Obligation Lease Certificates, Chicago Board of Education,
Series 1990B, 7.000%, 1/01/15 - NPFG Insured (ETM)
8,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 4,183,275
Series 1999, 0.000%, 1/01/24 - FGIC Insured
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series No Opt. Call A1 9,452,933
2001, 5.750%, 11/01/30 - AMBAC Insured
200 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 166,256
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,108,490
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 1,617,960
Series 2002, 5.500%, 2/01/17 - FGIC Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
850 5.250%, 1/01/25 1/16 at 100.00 AA 866,065
1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,789,620
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series
1996A:
10,575 0.000%, 12/15/23 - NPFG Insured No Opt. Call A 5,135,960
10,775 0.000%, 12/15/24 - NPFG Insured No Opt. Call A 4,905,965
------------------------------------------------------------------------------------------------------------------------------------
44,400 Total Illinois 29,888,176
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.1% OF TOTAL INVESTMENTS)
2,275 Anderson School Building Corporation, Madison County, 1/14 at 100.00 AAA 2,605,853
Indiana, First Mortgage Bonds, Series 2003, 5.500%,
7/15/23 (Pre-refunded 1/15/14) - FSA Insured
6,180 Crown Point Multi-School Building Corporation, Indiana, First No Opt. Call A 3,214,280
Mortgage Bonds, Crown Point Community School Corporation,
Series 2000, 0.000%, 1/15/23 - NPFG Insured
1,250 Portage, Indiana, Revenue Bonds, Series 2006, 5.000%, 7/15/23 7/16 at 100.00 BBB+ 1,206,600
1,700 Saint Joseph County, Indiana, Educational Facilities Revenue 3/18 at 100.00 Aaa 1,777,078
Bonds, University of Notre Dame du Lac, Refunding Series
2009., 5.000%, 3/01/36
1,000 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BB+ 820,910
Madison Center Inc., Series 2005, 5.250%, 2/15/28
------------------------------------------------------------------------------------------------------------------------------------
12,405 Total Indiana 9,624,721
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.1% (0.6% OF TOTAL INVESTMENTS)
4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 2,917,680
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 460,025
Kentucky, Industrial Building Revenue Bonds, Sisters of
Mercy of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.5% (3.9% OF TOTAL INVESTMENTS)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized 3/10 at 100.00 AAA 1,311,651
Mortgage Revenue Bonds, St. Dominic Assisted Care
Facility, Series 1995, 6.850%, 9/01/25
Nuveen Investments 57
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 1,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 $ 1,410,360
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006A:
825 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 810,851
8,880 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 8,326,332
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 3,757
Residuals 660-1, 16.460%, 5/01/41 - FGIC Insured (IF)
3,950 Morehouse Parish, Louisiana, Pollution Control Revenue Bonds, No Opt. Call BBB 4,098,797
International Paper Company, Series 2002A, 5.700%, 4/01/14
2,090 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,891,555
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
18,560 Total Louisiana 17,853,303
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,465 Maine State Housing Authority, Single Family Mortgage 5/13 at 100.00 AA+ 2,490,414
Purchase Bonds, Series 2004A-2, 5.000%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3% (0.8% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 2,062,360
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,550 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,464,812
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
3,550 Total Maryland 3,527,172
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 947,290
Hampshire College, Series 2004, 5.625%, 10/01/24
3,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 A (4) 3,383,610
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Massachusetts 4,330,900
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9% (2.4% OF TOTAL INVESTMENTS)
2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 BB 2,595,177
5.250%, 4/01/17 - SYNCORA GTY Insured
4,600 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 A 3,998,274
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 998,630
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
170 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 131,388
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 A 3,139,345
Detroit Metropolitan Airport, Series 2002C, 5.375%,
12/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,720 Total Michigan 10,862,814
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.6% (2.8% OF TOTAL INVESTMENTS)
4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 4,386,845
Inc., Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 N/R (4) 1,134,100
Facilities Revenue Bonds, Benedictine Health System - St.
Mary's Duluth Clinic, Series 2004, 5.250%, 2/15/21
(Pre-refunded 2/15/14)
2,290 Minneapolis-St. Paul Housing and Redevelopment Authority, 12/13 at 100.00 Baa1 2,342,166
Minnesota, Revenue Bonds, HealthPartners Inc., Series
2003, 6.000%, 12/01/20
530 Minnesota Higher Education Facilities Authority, Revenue 10/14 at 100.00 A2 561,853
Bonds, University of St. Thomas, Series 2004-5Y, 5.250%,
10/01/19
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,059,090
Series 2004A, 5.250%, 10/01/19
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,189,480
Office Building at Cedar Street, Series 2003, 5.250%,
12/01/20
------------------------------------------------------------------------------------------------------------------------------------
12,170 Total Minnesota 12,673,534
------------------------------------------------------------------------------------------------------------------------------------
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.9% (0.5% OF TOTAL INVESTMENTS)
$ 2,325 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA $ 2,367,803
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1% (0.6% OF TOTAL INVESTMENTS)
100 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 95,557
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
2,880 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 2,829,456
Facilities Revenue Bonds, Freeman Health System, Series
2004, 5.500%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Missouri 2,925,013
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.2% (1.3% OF TOTAL INVESTMENTS)
1,580 Douglas County Hospital Authority 2, Nebraska, Health No Opt. Call Aa3 1,652,712
Facilities Revenue Bonds, Nebraska Medical Center, Series
2003, 5.000%, 11/15/16
1,105 Grand Island, Nebraska, Electric System Revenue Bonds, Series 3/10 at 100.00 A1 (4) 1,201,400
1977, 6.100%, 9/01/12 (ETM)
2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call Aa2 2,477,417
Program, Series 1993A-5B, 6.250%, 6/01/18 - NPFG Insured
(Alternative Minimum Tax)
515 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 782,795
System Revenue Bonds, Nebraska City 2, Series 2006A,
19.714%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
5,550 Total Nebraska 6,114,324
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.3% (1.4% OF TOTAL INVESTMENTS)
1,110 New Hampshire Health and Education Facilities Authority, 6/19 at 100.00 AA+ 1,349,516
Revenue Bonds, Dartmouth College, Tender Option Bond Trust
09-7W, 13.890%, 6/01/39 (IF)
5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily 7/10 at 101.00 Aaa 5,084,050
Housing Remarketed Revenue Bonds, Countryside LP, Series
1994, 6.100%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,110 Total New Hampshire 6,433,566
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.6% (3.4% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AA- 1,053,260
Construction Bonds, Series 2005P, 5.250%, 9/01/24
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,430,920
System Bonds, Series 2003C, 5.500%, 6/15/24 (Pre-refunded
6/15/13)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 4,927,500
10,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 1,847,400
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 1,593,780
5.000%, 1/01/19 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,632,275
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
43,000 Total New Jersey 15,485,135
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 20.2% (12.2% OF TOTAL INVESTMENTS)
10,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/10 at 101.00 AAA 10,381,898
State University Educational Facilities Revenue Bonds, 1999
Resolution, Series 2000B, 5.500%, 5/15/30 (Pre-refunded
5/15/10) - FSA Insured
1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,571,250
Appropriation Lease Bonds, Upstate Community Colleges,
Series 2004B, 5.250%, 7/01/19
2,200 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,855,150
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
7,500 Long Island Power Authority, New York, Electric System Revenue 6/16 at 100.00 AAA 7,939,575
Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured (UB)
5,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 5,143,500
Transportation Revenue Refunding Bonds, Series 2002A,
5.125%, 11/15/21 - FGIC Insured
2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,112,160
Water and Sewerage System Revenue Bonds, Fiscal Series
2005B, 5.000%, 6/15/23 - AMBAC Insured
4,265 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 4,437,733
Series 2003D, 5.250%, 10/15/22 (UB)
Nuveen Investments 59
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,200 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA $ 1,319,436
Series 2004B, 5.250%, 8/01/15
4,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 4,226,360
2004C-1, 5.250%, 8/15/20 (UB)
910 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AAA 995,613
Revenue Bonds, Trust 2364, 16.993%, 11/15/44 - AMBAC
Insured (IF)
3,250 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 3,370,055
Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
6,460 5.000%, 1/01/25 - FSA Insured (UB) 7/15 at 100.00 AAA 6,747,793
2,580 5.000%, 1/01/26 - FSA Insured (UB) 7/15 at 100.00 AAA 2,685,651
1,850 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 1,942,796
Personal Income Tax Revenue Bonds, Series 2005B, 5.000%,
3/15/24 - FSA Insured (UB)
1,000 New York State Urban Development Corporation, Subordinate 7/14 at 100.00 A 1,043,530
Lien Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
53,715 Total New York 55,772,500
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.3% (2.6% OF TOTAL INVESTMENTS)
10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AA- 11,766,100
Revenue Refunding Bonds, Series 1993B, 6.000%, 1/01/22 -
CAPMAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.8% (1.7% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
100 5.125%, 6/01/24 6/17 at 100.00 BBB 89,066
1,050 5.875%, 6/01/30 6/17 at 100.00 BBB 913,889
1,055 5.750%, 6/01/34 6/17 at 100.00 BBB 887,202
2,355 5.875%, 6/01/47 6/17 at 100.00 BBB 1,744,867
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB 3,896,120
Series 2004, 4.250%, 4/01/33 (Mandatory put 4/01/14)
(Alternative Minimum Tax)
250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 231,835
Economic Development Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
8,810 Total Ohio 7,762,979
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1% (0.7% OF TOTAL INVESTMENTS)
450 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 401,175
Revenue Bonds, Series 2005, 5.375%, 9/01/36
2,725 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 2,626,900
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
44 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 41,119
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.366%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
3,219 Total Oklahoma 3,069,194
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.2% (0.7% OF TOTAL INVESTMENTS)
Oregon, General Obligation Bonds, State Board of Higher
Education, Series 2004A:
1,795 5.000%, 8/01/21 8/14 at 100.00 AA 1,971,449
1,240 5.000%, 8/01/23 8/14 at 100.00 AA 1,308,386
------------------------------------------------------------------------------------------------------------------------------------
3,035 Total Oregon 3,279,835
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9% (1.2% OF TOTAL INVESTMENTS)
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 2,058,000
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG
Insured
4,500 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 3,277,260
Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Pennsylvania 5,335,260
------------------------------------------------------------------------------------------------------------------------------------
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 3,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ $ 2,211,990
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/32
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.1% (1.3% OF TOTAL INVESTMENTS)
5,890 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,938,593
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.4% (5.1% OF TOTAL INVESTMENTS)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,554,200
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 4,581,949
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
3,340 Greenville County School District, South Carolina, 12/13 at 100.00 AA 3,508,303
Installment Purchase Revenue Bonds, Series 2003, 5.250%,
12/01/19 (UB)
3,620 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AA- 3,708,256
Refunding Bonds, Series 2003A, 5.250%, 5/01/21 - AMBAC
Insured
310 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 350,601
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
1,190 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 1,199,044
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
4,895 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,678,445
605 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 704,220
750 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 787,020
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
21,615 Total South Carolina 23,072,038
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,776,705
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.8% OF TOTAL INVESTMENTS)
2,060 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 A (4) 2,087,398
Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center, Series 1998C, 5.125%,
7/01/25 (Pre-refunded 7/01/23) - NPFG Insured
1,600 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 1,554,128
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
400 Sumner County Health, Educational, and Housing Facilities 11/17 at 100.00 N/R 152,040
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007, 5.500%, 11/01/37
------------------------------------------------------------------------------------------------------------------------------------
4,060 Total Tennessee 3,793,566
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.2% (4.3% OF TOTAL INVESTMENTS)
1,075 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 CCC 536,264
Bonds, TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
3,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 3,147,420
Bonds, Series 2004A, 5.250%, 5/15/25 - NPFG Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005:
400 5.250%, 8/15/21 No Opt. Call BBB- 386,328
600 5.125%, 8/15/26 No Opt. Call BBB- 548,430
2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 2,323,731
Refunding Bonds, Transmission Services Corporation, Series
2003C, 5.250%, 5/15/25 - AMBAC Insured
Nuveen Investments 61
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 290 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA $ 302,485
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
1,710 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 1,815,917
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
(Pre-refunded 2/15/11)
950 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 961,020
Refunding Bonds, Series 2008, 5.750%, 1/01/38
1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 446,940
Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,000 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 2,893,470
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
185 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 167,281
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 11.996%, 2/15/36 (IF)
Texas Tech University, Financing System Revenue Bonds, 9th
Series 2003:
3,525 5.250%, 2/15/18 - AMBAC Insured 8/13 at 100.00 AA 3,811,160
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AA 2,427,210
------------------------------------------------------------------------------------------------------------------------------------
20,250 Total Texas 19,767,656
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS)
325 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aaa 328,221
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
25 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 Aaa 25,040
Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
30 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 Aaa 30,906
Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
380 Total Utah 384,167
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.8% (4.1% OF TOTAL INVESTMENTS)
2,000 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,190,660
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - NPFG Insured
7,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 7,800,660
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
(UB)
3,160 King County Public Hospital District 2, Washington, Limited 6/11 at 101.00 AA- 3,225,633
Tax General Obligation Bonds, Evergreen Hospital Medical
Center, Series 2001A, 5.250%, 12/01/24 - AMBAC Insured
1,000 Skagit County Public Hospital District 1, Washington, Revenue No Opt. Call Baa2 999,000
Bonds, Skagit Valley Hospital, Series 2003, 6.000%,
12/01/23
4,280 Washington, General Obligation Refunding Bonds, Series 1992A No Opt. Call AA+ 4,426,162
and 1992AT-6, 6.250%, 2/01/11
------------------------------------------------------------------------------------------------------------------------------------
17,440 Total Washington 18,642,115
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.7% (1.0% OF TOTAL INVESTMENTS)
2,000 West Virginia Water Development Authority, Infrastructure 10/13 at 101.00 AAA 2,324,320
Revenue Bonds, Series 2003A, 5.500%, 10/01/23
(Pre-refunded 10/01/13) - AMBAC Insured
2,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 A- 2,247,954
Revenue Bonds, Series 2003B, 5.250%, 11/01/23 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
4,150 Total West Virginia 4,572,274
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.2% (3.7% OF TOTAL INVESTMENTS)
5,670 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 5,727,607
Revenue Bonds, Agnesian Healthcare Inc., Series 2001,
6.000%, 7/01/30
160 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 131,341
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 998,310
Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.375%,
5/01/18
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 205 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- $ 207,888
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30
2,145 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- (4) 2,347,681
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded
10/01/11)
5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 BBB+ 5,054,350
Revenue Bonds, Marshfield Clinic, Series 1999, 6.250%,
2/15/18 - RAAI Insured
2,500 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 2,591,500
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
16,680 Total Wisconsin 17,058,677
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,350 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 1,269,042
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 503,986 Total Long-Term Investments (cost $442,698,590) - 164.7% 454,070,566
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS)
TEXAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,300 Red River Authority, Texas, Pollution Control Revenue Bonds, 11/09 at 100.00 A-1+ 1,300,000
Southwestern Public Service Company, Variable Rate Demand
Obligations, Series 1996, 8.500%, 7/01/16 - AMBAC Insured
(5)
===============---------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,300,000) 1,300,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $443,998,590) - 165.2% 455,370,566
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (21.9)% (60,373,400)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 7,523,957
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.0)% (6) (126,850,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 275,671,123
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 27.9%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 63
NMZ | Nuveen Municipal High Income Opportunity Fund
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL - 2.1% (1.6% OF TOTAL INVESTMENTS)
Charter Mac Equity Issuer Trust, Preferred Shares, Series
2004A-4:
$ 1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) (Alternative
Minimum Tax) 4/15 at 100.00 Aaa $ 1,023,030
5,000 6.000%, 12/31/45 (Mandatory put 4/30/19) (Alternative
Minimum Tax) 4/19 at 100.00 Aaa 5,157,750
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total National 6,180,780
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.1% (0.8% OF TOTAL INVESTMENTS)
2,000 Bessemer, Alabama, General Obligation Warrants, Series 2007, 2/17 at 102.00 N/R 1,422,760
6.500%, 2/01/37
2,000 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa2 1,743,280
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A, 5.000%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Alabama 3,166,040
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
450 Alaska Municipal Bond Bank Authority, Revenue Bonds, Series 9/18 at 100.00 A+ 480,119
2009, 5.625%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 6.3% (4.7% OF TOTAL INVESTMENTS)
436 Estrella Mountain Ranch Community Facilities District, 7/10 at 102.00 N/R 439,641
Goodyear, Arizona, Special Assessment Lien Bonds, Series
2001A, 7.875%, 7/01/25
2,000 Maricopa County Industrial Development Authority, Arizona, 11/09 at 100.00 N/R 1,983,820
Multifamily Housing Revenue Bonds, Privado Park Apartments
Project, Series 2006A, 5.250%, 11/01/41 (Mandatory put
11/01/11) (Alternative Minimum Tax)
6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 CC 5,254,234
Senior Living Facility Revenue Bonds, Christian Care Mesa
II Inc., Series 2004A, 6.625%, 1/01/34 (Alternative
Minimum Tax)
Phoenix Industrial Development Authority, Arizona,
Educational Revenue Bonds, Keystone Montessori School,
Series 2004A:
195 6.375%, 11/01/13 11/11 at 103.00 N/R 195,443
790 7.250%, 11/01/23 11/11 at 103.00 N/R 756,931
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,647,000
550 Pima County Industrial Development Authority, Arizona, 12/14 at 100.00 BBB- 463,881
Charter School Revenue Bonds, Noah Webster Basic Schools
Inc., Series 2004, 6.125%, 12/15/34
500 Pima County Industrial Development Authority, Arizona, No Opt. Call AAA 599,080
Charter School Revenue Bonds, Pointe Educational Services
Charter School, Series 2004, 6.250%, 7/01/14 (ETM)
1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 BBB- 1,093,995
Correctional Facilities Contract Revenue Bonds, Florence
West Prison LLC, Series 2002A, 5.250%, 10/01/22 - ACA
Insured
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue
Bonds, Series 2007:
1,000 5.500%, 12/01/29 No Opt. Call A 983,480
2,500 5.000%, 12/01/37 No Opt. Call A 2,138,375
Surprise Municipal Property Corporation, Arizona, Wastewater
System Revenue Bonds, Series 2007:
1,000 4.700%, 4/01/22 4/14 at 100.00 N/R 869,780
1,000 4.900%, 4/01/32 4/17 at 100.00 N/R 809,840
1,000 Tucson Industrial Development Authority, Arizona, Charter 9/14 at 100.00 BBB- 873,910
School Revenue Bonds, Arizona Agribusiness and Equine
Center Charter School, Series 2004A, 5.850%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
20,556 Total Arizona 18,109,410
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.0% (7.5% OF TOTAL INVESTMENTS)
1,810 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 1,348,631
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 5.125%, 6/01/38
815 California Health Facilities Financing Authority, Hospital 11/09 at 100.00 N/R 540,264
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
3,000 California Health Facilities Financing Authority, Revenue 8/18 at 100.00 Aa3 2,377,620
Bonds, Sutter Health, Tender Option Bond Trust 3103,
14.572%, 8/15/38 (IF)
4,000 California Statewide Communities Development Authority, No Opt. Call BB 2,653,480
Revenue Bonds, EnerTech Regional Biosolids Project, Series
2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,925 California Statewide Community Development Authority, Revenue 3/14 at 102.00 N/R $ 2,889,842
Bonds, Epidaurus Project, Series 2004A, 7.750%, 3/01/34
2,185 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 1,730,476
Bonds, Sutter Health, Tender Option Bond Trust 3048,
12.356%, 11/15/38 (IF)
California Statewide Community Development Authority, Revenue
Bonds, Sutter Health, Tender Option Bond Trust 3102:
890 14.611%, 11/15/38 (IF) 5/18 at 100.00 Aa3 704,862
1,200 15.443%, 11/15/48 (IF) 5/18 at 100.00 Aa3 1,013,232
1,005 California Statewide Community Development Authority, 1/14 at 100.00 N/R 920,831
Subordinate Lien Multifamily Housing Revenue Bonds, Corona
Park Apartments, Series 2004I-S, 7.750%, 1/01/34
(Alternative Minimum Tax)
1,000 Goden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 706,600
Enhanced Tobacco Settlement Asset-Backed Revenue Bonds,
Tender Option Bonds Trust 3107, 17.473%, 6/01/45 - AMBAC
Insured (IF)
500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 369,440
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
1,015 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 918,930
Subordinate Lien Revenue Bonds, El Granada Mobile Home
Park, Series 2004B, 6.500%, 5/15/44
1,200 Lake Elsinore, California, Special Tax Bonds, Community 9/13 at 102.00 N/R 1,071,804
Facilities District 2003-2 Improvement Area A, Canyon
Hills, Series 2004A, 5.950%, 9/01/34
335 Lancaster Redevelopment Agency Combined Project Areas, 8/19 at 100.00 A 355,448
Housing Programs, California, Tax Allocation Bonds 2009,
6.875%, 8/01/39
3,400 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 2,729,384
Special Tax Bonds, Community Facilities District 3, Series
2004, 5.950%, 9/01/34
2,950 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 2,824,271
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc. Terminal 4
Project, Series 2002C, 7.500%, 12/01/24 (Alternative
Minimum Tax)
800 Moreno Valley Unified School District, Riverside County, 9/14 at 100.00 N/R 691,424
California, Special Tax Bonds, Community Facilities
District, Series 2004, 5.550%, 9/01/29
1,000 M-S-R Energy Authority, Gas Revenue Bonds, California, No Opt. Call A 1,067,730
Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39
1,250 San Diego County, California, Certificates of Participation, 9/12 at 100.00 Ba1 1,054,913
San Diego-Imperial Counties Developmental Services
Foundation Project, Series 2002, 5.500%, 9/01/27
3,895 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 2,991,516
Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
35,175 Total California 28,960,698
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.8% (5.1% OF TOTAL INVESTMENTS)
910 Bradburn Metropolitan District 3, Colorado, General 12/13 at 101.00 N/R 782,737
Obligation Bonds, Series 2003, 7.500%,12/01/33
6 Buffalo Ridge Metropolitan District, Colorado, Limited 12/13 at 101.00 N/R 5,743
Obligation Assessment Bonds, Series 2003, 7.500%, 12/01/33
400 Colorado Educational and Cultural Facilities Authority, 12/10 at 101.00 N/R (4) 429,332
Charter School Revenue Bonds, Academy Charter School -
Douglas County School District Re. 1, Series 2000, 6.875%,
(Pre-refunded 12/15/10)
650 Colorado Educational and Cultural Facilities Authority, 9/11 at 100.00 Ba1 (4) 726,057
Charter School Revenue Bonds, Bromley East Charter School,
Series 2000A, 7.250%, 9/15/30 (Pre-refunded 9/15/11)
3,500 Colorado Educational and Cultural Facilities Authority, 5/14 at 101.00 N/R 2,834,650
Charter School Revenue Bonds, Cesar Chavez Academy, Series
2003, 8.000%, 5/01/34
455 Colorado Educational and Cultural Facilities Authority, 12/11 at 100.00 AAA 515,356
Charter School Revenue Bonds, Excel Academy Charter
School, Series 2003, 7.300%, 12/01/23 (Pre-refunded
12/01/11)
1,000 Colorado Educational and Cultural Facilities Authority, 2/16 at 101.00 N/R 771,940
Charter School Revenue Bonds, Jefferson County School
District R-1 - Compass Montessori Secondary School, Series
2006, 5.625%, 2/15/36
Nuveen Investments 65
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Colorado Health Facilities Authority, Colorado, Revenue
Bonds, Catholic Health Initiatives, Series 2006A, Trust 1088:
$ 1,335 14.052%, 9/01/41 (IF) 9/16 at 100.00 AA $ 1,115,806
345 13.414%, 9/01/41 (IF) 9/16 at 100.00 AA 288,354
1,200 Colorado Health Facilities Authority, Colorado, Revenue 4/18 at 100.00 AAA 1,252,248
Bonds, Catholic Health Initiatives, Series 2006C-1, Trust
1090, 14.965%, 10/01/41 - FSA Insured (IF)
3,145 Kit Carson County Health Service District, Colorado, Health No Opt. Call N/R 2,863,648
Care Facility Revenue Bonds, Series 2007, 6.750%, 1/01/34
1,250 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101.00 BBB- 1,174,250
Revenue Bonds, Hilltop Community Resources Inc. Obligated
Group, Series 2001A, 5.250%, 12/01/21 - RAAI Insured
1,000 Mountain Shadows Metropolitan District, Colorado, General 12/16 at 100.00 N/R 697,670
Obligation Limited Tax Bonds, Series 2007, 5.500%, 12/01/27
1,995 Park Creek Metropolitan District, Colorado, Limited Tax 12/13 at 100.00 N/R 2,062,690
Obligation Revenue Bonds, Series 2003CR-2, 7.875%,
12/01/32 (Mandatory put 12/01/13)
3,565 Public Authority for Colorado Energy, Natural Gas Revenue No Opt. Call A 3,752,804
Bonds, Colorado Springs Utilities, Series 2008, 6.500%,
11/15/38
500 Tallyn's Reach Metropolitan District 3, Aurora, Colorado, 12/13 at 100.00 N/R 507,060
Limited Tax General Obligation Bonds, Series 2004, 6.750%,
12/01/33
------------------------------------------------------------------------------------------------------------------------------------
21,256 Total Colorado 19,780,345
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
225 District of Columbia Tobacco Settlement Corporation, Tobacco No Opt. Call BBB 213,091
Settlement Asset-Backed Bonds, Series 2001, 6.500%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 12.3% (9.2% OF TOTAL INVESTMENTS)
1,490 Aberdeen Community Development District, Florida, Special 5/14 at 100.00 N/R 855,156
Assessment Bonds, Series 2005, 5.500%, 5/01/36
7,445 Beacon Lakes Community Development District, Florida, Special 5/13 at 101.00 N/R 6,430,768
Assessment Bonds, Series 2003A, 6.900%, 5/01/35
700 Broward County, Florida, Airport Facility Revenue Bonds, 11/14 at 101.00 Ba2 726,096
Learjet Inc., Series 2000, 7.500%, 11/01/20 (Alternative
Minimum Tax)
1,120 Century Gardens Community Development District, Miami-Dade 5/14 at 101.00 N/R 1,014,115
County, Florida, Special Assessment Revenue Bonds, Series
2004, 5.900%, 5/01/34
8,360 Harmony Community Development District, Florida, Special 5/14 at 103.25 N/R 8,572,846
Assessment Bonds, Series 2001, 7.250%, 5/01/32
415 Islands at Doral Northeast Community Development District, 5/14 at 101.00 N/R 401,658
Miami-Dade County, Florida, Special Assessment Bonds,
Series 2004, 6.125%, 5/01/24
3,000 Jacksonville, Florida, Economic Development Commission Health 9/17 at 100.00 N/R 2,842,170
Care Facilities Revenue Bonds, The Florida Proton Therapy
Institute Project, Series 2007, 6.250%, 9/01/27
2,000 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 2,000,500
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
1,600 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 10/18 at 100.00 AAA 1,524,080
2008, Trust 1145, 11.664%, 10/01/38 - AGC Insured
(Alternative Minimum Tax) (IF)
970 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 708,798
Assessment Bonds, Palm Beach Gardens, Series 2004A,
5.900%, 5/01/35
3,710 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 N/R 3,117,736
Multifamily Housing Revenue Bonds, Lake Delray Apartments,
Series 1999A, 6.400%, 1/01/31 (Alternative Minimum Tax)
1,955 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 1,246,567
Assessment Bonds, Bella Collina, Series 2004, 5.750%,
5/01/35
1,000 Sarasota County Health Facility Authority, Florida, Revenue 7/17 at 100.00 N/R 744,890
Bonds, Sarasota-Manatee Jewish Housing Council, Inc.,
Series 2007, 5.750%, 7/01/45
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 970 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R $ 624,011
Assessment Bonds, Series 2006, 5.400%, 5/01/37
1,715 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R 1,314,736
Assessment Bonds, Series 2007, 6.650%, 5/01/40
Westchester Community Development District 1, Florida,
Special Assessment Bonds, Series 2003:
130 6.000%, 5/01/23 5/13 at 101.00 N/R 101,052
4,735 6.125%, 5/01/35 5/13 at 101.00 N/R 3,308,534
------------------------------------------------------------------------------------------------------------------------------------
41,315 Total Florida 35,533,713
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.1% (0.8% OF TOTAL INVESTMENTS)
500 Effingham County Development Authority, Georgia, Solid Waste 7/10 at 100.00 BB- 463,170
Disposal Revenue Bonds, Ft. James Project, Series 1998,
5.625%, 7/01/18 (Alternative Minimum Tax) (5)
1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 666,490
Revenue Bonds, Elderly Care, Lenbrook Square Project,
Series 2006A, 5.125%, 7/01/37
1,890 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 1,895,254
Revenue Bonds, St. Anne's Terrace, Series 2003, 7.625%,
12/01/33
------------------------------------------------------------------------------------------------------------------------------------
3,390 Total Georgia 3,024,914
------------------------------------------------------------------------------------------------------------------------------------
GUAM - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,445 Guam Government, General Obligation Bonds, 2009 Series A, No Opt. Call B+ 1,567,522
7.000%, 11/15/39
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.9% (0.7% OF TOTAL INVESTMENTS)
1,000 Hawaii State Department of Budget and Finance, Private School 2/17 at 100.00 N/R 768,350
Revenue Bonds, Montessori of Maui, Series 2007, 5.500%,
1/01/37
1,655 Hawaii State Department of Budget and Finance, Special 7/19 at 100.00 Baa1 1,767,441
Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and
Subsidiary Projects, Series 2009, 6.500%, 7/01/39
------------------------------------------------------------------------------------------------------------------------------------
2,655 Total Hawaii 2,535,791
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.4% (6.2% OF TOTAL INVESTMENTS)
1,700 Chicago, Illinois, Certificates of Participation Tax 6/09 at 100.00 N/R 1,695,342
Increment Revenue Notes, Chicago/Kingsbury Redevelopment
Project, Series 2004A, 6.570%, 2/15/13
990 Chicago, Illinois, Certificates of Participation, Tax 7/11 at 100.00 N/R 914,067
Increment Allocation Revenue Bonds, Diversey-Narragansett
Project, Series 2006, 7.460%, 2/15/26
1,000 Illinois Finance Authority, Revenue Bonds, Midwest Regional 10/16 at 100.00 N/R 696,410
Medical Center Galena-Stauss Hospital, Series 2006,
6.750%, 10/01/46
1,000 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 1,124,880
Series 2009A, 7.750%, 8/15/34
3,850 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 4,052,279
Hospital and Medical Centers, Series 2009, 7.000%, 8/15/44
1,350 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 1,342,062
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,108,490
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
7,800 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 7,810,764
Forest Hospital, Series 2002A, 5.750%, 7/01/29 (UB)
1,150 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 978,524
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
1,369 Lombard Public Facilities Corporation, Illinois, Third Tier 7/18 at 100.00 N/R 835,452
Conference Center and Hotel Revenue Bonds, Series 2005C-3,
4.000%, 1/01/36
2,004 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 1,766,887
Lakewood Springs Project, Series 2004A, 6.200%, 3/01/34
Nuveen Investments 67
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 998 Volo Village, Illinois, Special Service Area 3 Special Tax 3/16 at 102.00 N/R $ 720,227
Bonds, Symphony Meadows Project 1, Series 2006, 6.000%,
3/01/36 (Mandatory put 2/29/16)
1,000 Yorkville United City Business District, Illinois, Storm 1/17 at 102.00 N/R 440,810
Water and Water Improvement Project Revenue Bonds, Series
2007, 6.000%, 1/01/26
960 Yorkville, Illinois, Special Service Area 2005-108 Assessment 3/16 at 102.00 N/R 674,246
Bonds, Autumn Creek Project, Series 2006, 6.000%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
26,171 Total Illinois 24,160,440
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 10.7% (8.0% OF TOTAL INVESTMENTS)
6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R 5,488,044
Bonds, Series 2004A, 6.650%, 1/15/24
22,770 Indiana Finance Authority, Water Facilities Refunding Revenue 10/16 at 100.00 Baa1 18,946,689
Bonds, Indiana-American Water Company Inc. Project, Series
2006, 4.875%, 10/01/36 - AMBAC Insured (Alternative
Minimum Tax)
1,250 Indiana Health and Educational Facility Financing Authority, 11/16 at 100.00 Aa1 1,231,963
Revenue Bonds, Ascension Health, Series 2009, Trust 3301,
14.271%, 11/15/39 (IF)
2,500 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 101.00 BBB 2,523,325
Bonds, Community Foundation of Northwest Indiana, Series
2004A, 6.000%, 3/01/34
200 Jasper County, Indiana, Economic Development Revenue 4/10 at 101.00 B2 198,698
Refunding Bonds, Georgia Pacific Corporation Project,
Series 2000, 6.700%, 4/01/29 (Alternative Minimum Tax) (5)
1,000 St. Joseph County, Indiana, Economic Development Revenue 7/15 at 103.00 N/R 919,340
Bonds, Chicago Trail Village Apartments, Series 2005A,
7.500%, 7/01/35
1,560 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 1,485,916
Revenue Bonds, Steel Dynamics Inc., Series 1998, 7.250%,
11/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,640 Total Indiana 30,793,975
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 798,530
Initiatives Project, Series 2006A, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.8% (4.4% OF TOTAL INVESTMENTS)
5,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB 4,824,950
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
1,000 Louisiana Local Government Environmental Facilities and 9/16 at 100.00 N/R 514,770
Community Development Authority, Carter Plantation Hotel
Project Revenue Bonds, Series 2006A, 6.000%, 9/01/36
1,000 Louisiana Local Government Environmental Facilities and 6/16 at 101.00 N/R 869,870
Community Development Authority, Revenue Bonds, CDF
Healthcare of Louisiana LLC, Series 2006A, 7.000%, 6/01/36
3,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 2,221,110
Community Development Authority, Revenue Bonds, Southgate
Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37
Ouachita Parish Industrial Development Authority, Louisiana,
Solid Waste Disposal Revenue Bonds, White Oaks Project,
Series 2004A:
815 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 760,281
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 747,217
5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue 4/11 at 100.00 N/R 5,124,231
Bonds, Freeport McMoran Project, Series 1992, 7.700%,
10/01/22 (Alternative Minimum Tax)
2,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,810,100
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
18,745 Total Louisiana 16,872,529
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.0% (0.7% OF TOTAL INVESTMENTS)
3,155 Portland Housing Development Corporation, Maine, Section 8 2/14 at 102.00 Baa2 2,849,848
Assisted Senior Living Revenue Bonds, Avesta Housing
Development Corporation, Series 2004A, 6.000%, 2/01/34
------------------------------------------------------------------------------------------------------------------------------------
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2% (0.9% OF TOTAL INVESTMENTS)
$ 1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 $ 857,060
Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY
Insured
2,000 Maryland Energy Financing Administration, Revenue Bonds, AES 3/10 at 100.00 N/R 2,000,520
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
350 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 356,451
Revenue Bonds, MedStar Health, Series 2004, 5.500%, 8/15/33
435 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/10 at 100.00 B3 289,845
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
3,785 Total Maryland 3,503,876
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.5% (0.4% OF TOTAL INVESTMENTS)
465 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 416,245
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 1,144,017
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
1,815 Total Massachusetts 1,560,262
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.2% (3.1% OF TOTAL INVESTMENTS)
1,210 Countryside Charter School, Berrien County, Michigan, Charter 4/10 at 100.00 N/R 1,049,022
School Revenue Bonds, Series 1999, 7.000%, 4/01/29
855 Countryside Charter School, Berrien County, Michigan, Charter 4/10 at 100.00 N/R 828,777
School Revenue Bonds, Series 2000, 8.000%, 4/01/29
Detroit Local Development Finance Authority, Michigan, Tax
Increment Bonds, Series 1998A:
1,410 5.500%, 5/01/21 11/09 at 101.00 B- 562,195
15 5.500%, 5/01/21 - ACA Insured 5/10 at 100.00 B- 5,981
Garden City Hospital Finance Authority, Michigan, Revenue
Bonds, Garden City Hospital Obligated Group, Series 2007A:
1,000 4.875%, 8/15/27 8/17 at 100.00 N/R 644,330
1,000 5.000%, 8/15/38 8/17 at 100.00 N/R 581,470
1,000 Michigan Public Educational Facilities Authority, Limited 11/15 at 100.00 BBB 1,001,960
Obligation Revenue Bonds, Chandler Park Academy Project,
Series 2008, 6.500%, 11/01/35
1,000 Michigan Public Educational Facilities Authority, Limited 9/17 at 100.00 BBB- 710,130
Obligation Revenue Bonds, Richfield Public School Academy,
Series 2007, 5.000%, 9/01/36
3,580 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 BB- 3,069,778
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993B, 5.500%, 8/15/23
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 571,985
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
(Pre-refunded 5/15/15)
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/15 at 102.00 N/R 1,323,750
Hills and Dales General Hospital, Series 2005A, 6.750%,
11/15/38
1,000 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,165,150
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
1,000 Summit Academy North Charter School, Michigan, Charter School 11/15 at 100.00 BB+ 659,310
Revenue Bonds, Series 2005, 5.500%, 11/01/30
------------------------------------------------------------------------------------------------------------------------------------
15,070 Total Michigan 12,173,838
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6% (1.2% OF TOTAL INVESTMENTS)
Minneapolis, Minnesota, Student Housing Revenue Bonds,
Riverton Community Housing Project, Series 2000:
100 7.200%, 7/01/14 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 104,318
100 7.300%, 7/01/15 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 104,382
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease Revenue 6/14 at 102.00 N/R 1,207,367
Bonds, PACT Charter School, Series 2004A, 6.750%, 12/01/33
Nuveen Investments 69
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 1,390 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R $ 1,317,748
Charter School Revenue Bonds, Higher Ground Academy
Charter School, Series 2004A, 6.625%, 12/01/23
1,100 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,002,342
Charter School Revenue Bonds, HOPE Community Academy
Charter School, Series 2004A, 6.750%, 12/01/33
1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R 912,210
HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30
------------------------------------------------------------------------------------------------------------------------------------
5,015 Total Minnesota 4,648,367
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS)
926 Mississippi Home Corporation, Multifamily Housing Revenue 10/19 at 101.00 N/R 664,011
Bonds, Tupelo Personal Care Apartments, Series 2004-2,
6.125%, 9/01/34 (Alternative Minimum Tax)
1,000 Warren County, Mississippi, Gulf Opportunity Zone Revenue 9/18 at 100.00 BBB 1,021,430
Bonds, International Paper Company Project, Series 2008A,
6.500%, 9/01/32
------------------------------------------------------------------------------------------------------------------------------------
1,926 Total Mississippi 1,685,441
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.0% (2.2% OF TOTAL INVESTMENTS)
2,000 Branson Regional Airport Transportation Development District, 7/17 at 100.00 N/R 1,294,940
Missouri, Project Revenue Bonds, Series 2007B, 6.000%,
7/01/37 (Alternative Minimum Tax)
1,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 1,010,800
Brentwood and Maplewood, Missouri, Transportation Sales
Revenue Bonds, Series 2009, 5.875%, 10/01/36
5,935 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AAA 5,261,615
Authority, Water Facility Revenue Bonds, Missouri-American
Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC
Insured (Alternative Minimum Tax) (UB)
1,300 Saint Louis Industrial Development Authority, Missouri, Saint 12/10 at 102.00 Ca 452,465
Louis Convention Center Headquarters Hotel Project, Series
2000A, 7.250%, 12/15/35 (Alternative Minimum Tax) (6)
795 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 6/10 at 100.00 N/R 569,506
Grace Lofts Redevelopment Projects, Series 2007A, 6.000%,
3/27/26
------------------------------------------------------------------------------------------------------------------------------------
11,030 Total Missouri 8,589,326
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.9% (1.4% OF TOTAL INVESTMENTS)
5,200 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B- 3,770,832
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
2,000 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 1,675,880
Bonds, Yellowstone Energy LP, Series 1993, 7.000%,
12/31/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Montana 5,446,712
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.4% (2.5% OF TOTAL INVESTMENTS)
6,485 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 9,857,132
System Revenue Bonds, Nebraska City 2, Series 2006A,
19.714%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.7% (0.5% OF TOTAL INVESTMENTS)
500 Clark County, Nevada, Industrial Development Revenue Bonds, 11/09 at 100.00 BB+ 488,930
Nevada Power Company, Series 1997A, 5.900%, 11/01/32
(Alternative Minimum Tax)
1,440 Clark County, Nevada, Local Improvement Bonds, Mountain's 8/16 at 100.00 N/R 1,363,565
Edge Special Improvement District 142, Series 2003,
6.375%, 8/01/23
1,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 Caa2 205,010
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 40,500
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40 (6)
------------------------------------------------------------------------------------------------------------------------------------
7,440 Total Nevada 2,098,005
------------------------------------------------------------------------------------------------------------------------------------
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.6% (1.9% OF TOTAL INVESTMENTS)
$ 1,500 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB $ 1,450,260
Revenue Bonds, Series 2004, 5.750% 6/15/29
1,660 New Jersey Economic Development Authority, Special Facilities 3/10 at 101.00 B 1,427,368
Revenue Bonds, Continental Airlines Inc., Series 1999,
6.250%, 9/15/29 (Alternative Minimum Tax)
500 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 467,230
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
600 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 677,928
Bonds, University of Medicine and Dentistry of New Jersey
Issue, Series 2009 B, 7.500%, 12/01/32
1,000 New Jersey Higher Education Assistance Authority, Student 6/18 at 100.00 AAA 1,047,830
Loan Revenue Bonds, Series 2008A, 6.125%, 6/01/30 - AGC
Insured (Alternative Minimum Tax)
3,500 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 1,387,645
Transportation System Bonds, Series 2006C, 0.000%,
12/15/27 - NPFG Insured (7)
700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 733,684
5.250%, 1/01/40
500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 337,420
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/41
------------------------------------------------------------------------------------------------------------------------------------
9,960 Total New Jersey 7,529,365
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.1% (0.9% OF TOTAL INVESTMENTS)
1,000 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 1,029,420
Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34
1,700 New York City Industrial Development Agency, New York, 2/10 at 100.00 CCC+ 1,330,250
Special Facilities Revenue Bonds, American Airlines Inc.,
Series 1994, 6.900%, 8/01/24 (Alternative Minimum Tax)
1,000 Seneca Nation of Indians Capital Improvements Authority, New No Opt. Call BB 935,190
York, Special Obligation Bonds, Series 2007A, 5.250%,
12/01/16
------------------------------------------------------------------------------------------------------------------------------------
3,700 Total New York 3,294,860
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6% (2.0% OF TOTAL INVESTMENTS)
1,260 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,123,996
Carolinas HealthCare System Revenue Bonds, Series 2008A,
Trust 1149-3, 14.759%, 1/15/47 (IF)
5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 4,903,030
Facilities Revenue Bonds, Liberty Tire Services of North
Carolina LLC, Series 2004A, 6.750%, 7/01/29
960 North Carolina Capital Facilities Financing Agency, Revenue 10/16 at 100.00 AA+ 1,595,360
Bonds, Duke University, Series 2008, Tender Option Bonds
Trust 3248, 25.843%, 10/01/44 (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,720 Total North Carolina 7,622,386
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.1% (3.8% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
320 5.125%, 6/01/24 6/17 at 100.00 BBB 285,011
375 5.750%, 6/01/34 6/17 at 100.00 BBB 315,356
10,855 5.875%, 6/01/47 6/17 at 100.00 BBB 8,042,687
3,125 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 2,301,844
Revenue Bonds, Bond Fund Program - Garfield Heights
Project, Series 2004D, 5.250%, 5/15/23
1,000 Ohio, Environmental Facilities Revenue Bonds, Ford Motor 4/15 at 100.00 Caa1 607,610
Company, Series 2005, 5.750%, 4/01/35 (Alternative Minimum
Tax)
4,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 3,048,040
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,675 Total Ohio 14,600,548
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1% (0.8% OF TOTAL INVESTMENTS)
970 Okeene Municipal Hospital and Schallmo Authority, Oklahoma, 1/16 at 101.00 N/R 835,733
Revenue Bonds, Series 2006, 7.000%, 1/01/35
2,500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa2 2,388,325
Bonds, American Airlines Inc., Series 2004A, 7.750%,
6/01/35 (Mandatory put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
3,470 Total Oklahoma 3,224,058
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 71
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7% (2.0% OF TOTAL INVESTMENTS)
$ 420 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- $ 398,504
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
985 Berks County Industrial Development Authority, Pennsylvania, 11/17 at 101.00 N/R 798,293
First Mortgage Revenue Bonds, One Douglassville Properties
Project, Series 2007A, 6.125%, 11/01/34 (Alternative
Minimum Tax)
2,000 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 1,507,260
Pennsylvania, Revenue Bonds, Immaculata University, Series
2005, 5.750%, 10/15/37
400 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 337,548
Pennsylvania, Avon Grove Charter School Revenue Bonds,
Series 2007A, 6.375%, 12/15/37
750 New Morgan Industrial Development Authority, Pennsylvania, 4/10 at 100.00 BBB 750,038
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative
Minimum Tax)
4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 3,981,200
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 - ACA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,555 Total Pennsylvania 7,772,843
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8% (0.6% OF TOTAL INVESTMENTS)
3,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ 2,211,990
Revenue Bonds, First Subordinate Series 2009A, 0.000%,
8/01/32
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.9% (1.4% OF TOTAL INVESTMENTS)
1,000 Rhode Island Student Loan Authority, Student Loan Program 12/17 at 100.00 A 1,038,030
Revenue Bonds, Series 2008A, 6.750%, 12/01/28 (Alternative
Minimum Tax)
4,835 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 4,394,483
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
5,835 Total Rhode Island 5,432,513
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.6% (1.2% OF TOTAL INVESTMENTS)
4,000 Lancaster County, South Carolina, Assessment Bonds, Edgewater 11/17 at 100.00 N/R 3,438,680
II Improvement District, Series 2007A, 7.750%, 11/01/39
1,185 Richland County, South Carolina, Environmental Improvement 4/13 at 101.00 BBB 1,195,404
Revenue Refunding Bonds, International Paper Company,
Series 2003A, 6.100%, 4/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,185 Total South Carolina 4,634,084
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 4.9% (3.7% OF TOTAL INVESTMENTS)
3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 3,581,165
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
1,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 859,930
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Refunding Series 200A, 5.440%, 9/01/32
2,000 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 1,785,700
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/26
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
2,000 5.500%, 11/01/37 11/17 at 100.00 N/R 760,200
500 5.500%, 11/01/46 11/17 at 100.00 N/R 190,050
1,000 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call BB+ 972,150
Bonds, Series 2006A, 5.250%, 9/01/23
5,601 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call N/R 5,261,299
Bonds, Series 2006B, 5.625%, 9/01/26
980 Wilson County Health and Educational Facilities Board, 7/17 at 100.00 N/R 814,086
Tennessee, Senior Living Revenue Bonds, Rutland Place,
Series 2007A, 6.300%, 7/01/37
------------------------------------------------------------------------------------------------------------------------------------
16,581 Total Tennessee 14,224,580
------------------------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.8% (7.3% OF TOTAL INVESTMENTS)
$ 1,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ $ 597,650
Bonds, American Airlines Inc., Series 2007, 5.250%,
12/01/29 (Alternative Minimum Tax)
1,905 Austin Convention Enterprises Inc., Texas, Convention Center 1/11 at 100.00 N/R 1,704,289
Hotel Revenue Bonds, First Tier Series 2001C-1, 9.750%,
1/01/26
1,000 Austin Convention Enterprises Inc., Texas, Convention Center 1/17 at 100.00 BB 770,440
Hotel Revenue Bonds, First Tier Series 2006B, 5.750%,
1/01/34
10 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 9,016
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
700 Brazos River Authority, Texas, Pollution Control Revenue 7/18 at 100.00 CCC 419,286
Refunding Bonds, TXU Electric Company, Series 2001D,
8.250%, 5/01/33 (Alternative Minimum Tax)
2,000 Clifton Higher Education Finance Corporation, Texas, No Opt. Call BBB- 2,298,300
Education Revenue Bonds, Tejano Center for Community
Concerns, Inc.-Raul Yzaguirre School for Success,
Refunding Series 2009A, 9.000%, 2/15/38
1,750 Dallas-Ft. Worth International Airport Facility Improvement 11/12 at 100.00 CCC+ 1,047,463
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 2007, 5.500%, 11/01/30 (Alternative Minimum Tax)
Decatur Hospital Authority, Texas, Revenue Bonds, Wise
Regional Health System, Series 2004A:
1,840 7.000%, 9/01/25 9/14 at 100.00 N/R 1,790,099
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 6,425,562
585 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Ba1 590,844
Waste Disposal Revenue Bonds, Citgo Petroleum Corporation
Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum
Tax)
1,000 Heart of Texas Education Finance Corporation, Texas, Gateway 8/16 at 100.00 N/R 813,180
Charter Academy, Series 2006A, 6.000%, 2/15/36
2,020 Houston, Texas, Airport System Special Facilities Revenue 7/11 at 100.00 B3 1,611,697
Bonds, Continental Air Lines Inc., Series 1998B, 5.700%,
7/15/29 (Alternative Minimum Tax)
Houston, Texas, Airport System Special Facilities Revenue
Bonds, Continental Air Lines Inc., Series 2001E:
600 7.375%, 7/01/22 (Alternative Minimum Tax) 7/11 at 101.00 B3 587,622
975 6.750%, 7/01/29 (Alternative Minimum Tax) 7/11 at 101.00 B3 888,196
1,000 La Vernia Education Financing Corporation, Texas, Charter 8/11 at 100.00 N/R 749,870
School Revenue Bonds, Riverwalk Education Foundation,
Series 2007A, 5.450%, 8/15/36
1,035 North Texas Tollway Authority, System Revenue Bonds, Series 1/19 at 100.00 A2 1,085,663
2009, 6.250%, 1/01/39
Richardson Hospital Authority, Texas, Revenue Bonds,
Richardson Regional Medical Center, Series 2004:
2,000 5.875%, 12/01/24 12/13 at 100.00 Baa2 1,857,240
1,000 6.000%, 12/01/34 12/13 at 100.00 Baa2 882,500
1,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 CCC 519,400
Refunding Bonds, TXU Energy Company LLC Project, Series
2003B, 6.150%, 8/01/22
2,960 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 2,676,491
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 11.996%, 2/15/36 (IF)
1,000 Texas Public Finance Authority, Charter School Finance 2/15 at 100.00 N/R 771,520
Corporation Revenue Bonds, Cosmos Foundation Inc., Series
2007A, 5.375%, 2/15/37
340 Trinity River Authority of Texas, Pollution Control Revenue 5/13 at 101.00 CCC 160,704
Refunding Bonds, TXU Electric Company, Series 2003,
6.250%, 5/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
32,320 Total Texas 28,257,032
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 2.6% (1.9% OF TOTAL INVESTMENTS)
420 Virgin Islands Public Finance Authority, Matching Fund 10/19 at 100.00 BBB 442,974
Revenue Loan Note - Diageo Project, Series 2009A, 6.750%,
10/01/37
5,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 5,090,350
Refinery Project - Hovensa LLC, Series 2003, 6.125%,
7/01/22 (Alternative Minimum Tax)
2,000 Virgin Islands Public Finance Authority, Senior Secured Lien 7/14 at 100.00 BBB 2,019,700
Revenue Bonds, Refinery Project - Hovensa LLC, Series
2004, 5.875%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
7,420 Total Virgin Islands 7,553,024
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 73
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.3% (1.0% OF TOTAL INVESTMENTS)
$ 1,000 Giles County Industrial Development Authority, Virginia, 11/09 at 100.00 B+ $ 983,770
Exempt Facility Revenue Bonds, Hoechst Celanese Project,
Series 1996, 6.450%, 5/01/26 (WI/DD, Settling 11/02/09)
1,940 Isle of Wight County Industrial Development Authority, 3/17 at 100.00 BBB 1,560,827
Virginia, Environmental Improvement Revenue Bonds,
International Paper Company Project, Series 2007A, 4.700%,
3/01/31 (Alternative Minimum Tax)
9,400 Metropolitan Washington DC Airports Authority, Virginia, No Opt. Call BBB+ 1,278,118
Dulles Toll Road Revenue Bonds, Series 2009B, 0.000%,
10/01/38 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,340 Total Virginia 3,822,715
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.3% (3.2% OF TOTAL INVESTMENTS)
3,000 Skagit County Public Hospital District 1, Washington, Revenue 12/13 at 100.00 Baa2 3,044,220
Bonds, Skagit Valley Hospital, Series 2003, 6.000%,
12/01/18
Vancouver Downtown Redevelopment Authority, Washington,
Revenue Bonds, Conference Center Project, Series 2003A:
1,750 6.000%, 1/01/28 - ACA Insured 1/14 at 100.00 N/R 1,491,630
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 1,692,425
4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 3,827,297
1,000 Washington State Economic Development Finance Authority, 12/17 at 100.00 N/R 645,540
Revenue Bonds, Coeur D'Alene Fiber Project, Series 2007G,
7.000%, 12/01/27 (Alternative Minimum Tax)
2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,600,180
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
14,975 Total Washington 12,301,292
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.6% (0.5% OF TOTAL INVESTMENTS)
500 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 394,350
Excise Tax Revenue Bonds, Fort Henry Economic Development,
Series 2006B, 5.625%, 3/01/36
500 Ohio County Commission, West Virginia, Tax Increment Revenue No Opt. Call N/R 455,225
Bonds, Fort Henry Centre Financing District, Series 2007A,
5.850%, 6/01/34
1,000 West Virginia Hospital Finance Authority, Hospital Revenue 9/14 at 100.00 A2 998,750
Bonds, Charleston Area Medical Center, Series 2009A,
5.500%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total West Virginia 1,848,325
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.3% (4.7% OF TOTAL INVESTMENTS)
550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R (4) 706,337
Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16
(Pre-refunded 12/01/14)
2,300 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 N/R 2,252,021
Revenue Bonds, Aurora Health Care Inc., Series 1999A,
5.600%, 2/15/29 - ACA Insured
2,500 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A 2,497,049
Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%,
2/15/27 - NPFG Insured
1,000 Wisconsin Health and Educational Facilities Authority, 4/14 at 100.00 N/R 830,929
Revenue Bonds, Southwest Health Center Inc., Series 2004A,
6.250%, 4/01/34
1,000 Wisconsin Health and Educational Facilities Authority, 12/19 at 100.00 A1 1,013,099
Revenue Bonds, ThedaCare, Inc., Series 2009A, 5.500%,
12/15/38
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006:
$ 7,995 5.250%, 8/15/26 8/16 at 100.00 BBB+ $ 7,139,534
4,500 5.250%, 8/15/34 8/16 at 100.00 BBB+ 3,835,844
------------------------------------------------------------------------------------------------------------------------------------
19,845 Total Wisconsin 18,274,813
------------------------------------------------------------------------------------------------------------------------------------
$ 453,525 Total Investments (cost $408,338,760) - 134.0% 387,195,132
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.6)% (10,300,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 7,068,237
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (32.9)% (8) (95,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 288,963,369
==================================================================================================================
Investments in Derivatives
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2009:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (9) DATE (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC $15,000,000 Receive 3-Month USD-LIBOR 4.675% Semi-Annually 7/23/10 7/23/39 $(888,000)
JPMorgan 5,000,000 Receive 3-Month USD-LIBOR 3.413 Semi-Annually 4/09/10 4/09/39 710,000
Royal Bank of Canada 3,000,000 Receive 3-Month USD-LIBOR 3.327 Semi-Annually 4/23/10 4/23/39 472,800
-----------------------------------------------------------------------------------------------------------------------------------
$ 294,800
===================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a formal adverse determination from the
Internal Revenue Service (the "IRS") regarding the tax-exempt status
of the bonds' coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it is formally
determined that the interest on the bonds should be treated as
taxable.
(6) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's
custodian to cease accruing additional income on the Fund's records.
(7) Investment, or portion of investment, has been pledged to
collateralize the net payment obligations for investments in
derivatives.
(8) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 24.5%.
(9) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract. N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
USD-LIBOR United States Dollar-London Inter-Bank Offered Rate.
See accompanying notes to financial statements.
Nuveen Investments 75
NMD | Nuveen Municipal High Income Opportunity Fund 2
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.8% (1.5% OF TOTAL INVESTMENTS)
$ 2,290 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa2 $ 2,206,346
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A, 5.250%, 11/15/20
1,000 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 842,310
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,290 Total Alabama 3,048,656
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.0% (4.4% OF TOTAL INVESTMENTS)
1,000 Estrella Mountain Ranch Community Facilities District, 7/17 at 100.00 N/R 908,490
Goodyear, Arizona, General Obligation Bonds, Series 2007,
6.200%, 7/15/32
2,575 Quechan Indian Tribe of the Fort Yuma Reservation, Arizona, 12/17 at 102.00 N/R 2,021,684
Government Project Bonds, Series 2007, 7.000%, 12/01/27
5,325 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 4,554,739
Bonds, Series 2007, 5.000%, 12/01/37
500 The Industrial Development Authority of the County of Pima No Opt. Call N/R 525,795
Education Revenue Bonds, Arizona, Legacy Traditional School
Project, Series 2009, 8.500%, 7/01/39
1,000 Yuma County Industrial Development Authority, Arizona, Exempt 12/17 at 100.00 N/R 780,460
Revenue Bonds, Far West Water & Sewer Inc. Refunding,
Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,400 Total Arizona 8,791,168
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1% (0.1% OF TOTAL INVESTMENTS)
125 Little River County, Arkansas, Revenue Refunding Bonds, 4/10 at 100.00 B2 110,841
Georgia-Pacific Corporation, Series 1998, 5.600%, 10/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.2% (11.4% OF TOTAL INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 1,581,740
Dominican University, Series 2006, 5.000%, 12/01/36
1,020 California Housing Finance Agency, California, Home Mortgage 8/17 at 100.00 AA- 924,497
Revenue Bonds, Series 2008B, 5.000%, 2/01/28 (Alternative
Minimum Tax)
1,825 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,605,653
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/35
2,000 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 2,069,200
Bonds, St. Joseph Health System, Series 2007C, 5.750%,
7/01/47 - FGIC Insured
1,350 California Statewide Community Development Authority, Revenue 11/16 at 100.00 Aa3 1,149,930
Bonds, Sutter Health, Tender Option Bond Trust 3048,
13.180%, 11/15/46 (IF)
3,150 California Statewide Community Development Authority, Revenue 11/16 at 100.00 Aa3 2,683,170
Bonds, Sutter Health, Tender Option Bond Trust 3102,
15.445%, 11/15/46 (IF)
Daly City Housing Development Finance Agency, California,
Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park
Refunding, Series 2007A:
2,000 5.000%, 12/15/37 12/17 at 100.00 A- 1,693,940
1,990 6.500%, 12/15/47 12/17 at 100.00 N/R 1,665,710
1,370 Elk Grove Community Facilities District 2005-1, California, 9/15 at 102.00 N/R 827,905
Special Tax Bonds, Series 2007, 5.250%, 9/01/37
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
4,000 5.750%, 6/01/47 6/17 at 100.00 BBB 2,955,520
2,500 5.125%, 6/01/47 6/17 at 100.00 BBB 1,660,975
1,000 Lathrop Financing Authority, California, Revenue Bonds, Water 6/13 at 100.00 N/R 889,210
Supply Project Series 2003, 6.000%, 6/01/35
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 500 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- $ 478,690
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc.
Terminal 4 Project, Series 2002C, 7.500%, 12/01/24
(Alternative Minimum Tax)
2,500 San Bernardino Community College District, California, 8/16 at 100.00 AAA 2,776,000
General Obligation Bonds, Tender Option Bond Trust
11780-1, 17.501%, 8/01/31 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
27,205 Total California 22,962,140
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.7% (5.8% OF TOTAL INVESTMENTS)
1,500 Arista Metropolitan District, Colorado, Special Revenue 12/15 at 100.00 N/R 1,341,030
Bonds, Series 2008, 9.250%, 12/01/37
1,520 Colorado Educational and Cultural Facilities Authority, 5/17 at 100.00 BB+ 1,173,212
Charter School Revenue Bonds, Windsor Academy, Series
2007A, 5.700%, 5/01/37
2,000 Colorado Educational and Cultural Facilities Authority, 6/18 at 102.00 N/R 1,744,980
Revenue Bonds, Pikes Peak School of Expeditionary Learning
Charter School, Series 2008, 6.625%, 6/01/38
1,480 Colorado Health Facilities Authority, Colorado, Revenue 9/16 at 100.00 AA 1,398,940
Bonds, Catholic Health Initiatives, Series 2006A, 5.000%,
9/01/41
5,045 Colorado Housing and Finance Authority, Revenue Bonds, 4/17 at 100.00 N/R 3,236,216
Confluence Energy LLC Project, Series 2007, 6.750%,
4/01/27 (Alternative Minimum Tax)
1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 981,320
Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25
1,700 Public Authority for Colorado Energy, Natural Gas Revenue No Opt. Call A 1,789,556
Bonds, Colorado Springs Utilities, Series 2008, 6.500%,
11/15/38
------------------------------------------------------------------------------------------------------------------------------------
14,245 Total Colorado 11,665,254
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 16.0% (13.8% OF TOTAL INVESTMENTS)
1,000 Bartram Park Community Development District, Florida, Special 5/15 at 101.00 N/R 745,930
Assessment Bonds, Series 2005, 5.300%, 5/01/35
1,000 Beeline Community Development District, Palm Beach County, 5/18 at 100.00 N/R 951,020
Florida, Special Assessment Bonds, Series 2008A, 7.000%,
5/01/37
1,000 Colonial Country Club Community Development District, 5/13 at 101.00 A+ 1,024,270
Florida, Capital Improvement Revenue Bonds, Series 2003,
6.400%, 5/01/33
2,000 Escambia County, Florida, Environmental Improvement Revenue 8/11 at 100.00 BBB 1,767,120
Bonds, International Paper Company Projects, Series 2006B,
5.000%, 8/01/26 (Alternative Minimum Tax)
1,320 Fishhawk Community Development District II, Florida, Special 5/14 at 100.00 N/R 1,133,537
Assessment Revenue Bonds, Series 2004A, 6.125%, 5/01/34
2,000 Habitat Community Development District, Florida, Capital No Opt. Call N/R 1,569,020
Improvement Revenue Bonds, Series 2004, 5.850%, 5/01/35
1,000 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 1,000,250
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
2,915 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 2,130,049
Assessment Bonds, Palm Beach Gardens, Series 2004A,
5.900%, 5/01/35
1,500 Palm Glades Community Development District, Florida, Special 5/18 at 100.00 N/R 1,090,830
Assessment Bond, Series 2008A, 7.125%, 5/01/39
1,180 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 752,403
Assessment Bonds, Bella Collina, Series 2004, 5.750%,
5/01/35
995 Poinciana West Community Development District, Florida, 5/17 at 100.00 N/R 788,717
Special Assessment Bonds, Series 2007, 6.000%, 5/01/37
970 Reunion West Community Development District, Florida, Special 5/12 at 101.00 N/R 427,062
Assessment Bonds, Series 2004, 6.250%, 5/01/36
3,800 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 3,241,476
Bonds, Baptist Health Systems of South Florida, Trust
1030, 13.222%, 8/15/37 (IF)
Nuveen Investments 77
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 6,000 Split Pine Community Development District, Florida, Special 5/17 at 100.00 N/R $ 3,649,380
Assessment Bonds, Series 2007A, 5.250%, 5/01/39
4,345 Stoneybrook Venice Community Development District, Florida, 5/18 at 100.00 N/R 3,944,956
Capital Improvement Revenue Bonds, Series 2007, 6.750%,
5/01/38
3,450 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 2,219,420
Assessment Bonds, Series 2006, 5.400%, 5/01/37
2,000 Westchester Community Development District 1, Florida, 5/13 at 101.00 N/R 1,397,480
Special Assessment Bonds, Series 2003, 6.125%, 5/01/35
------------------------------------------------------------------------------------------------------------------------------------
36,475 Total Florida 27,832,920
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8% (0.7% OF TOTAL INVESTMENTS)
845 Effingham County Development Authority, Georgia, Solid Waste 7/10 at 100.00 BB- 782,757
Disposal Revenue Bonds, Ft. James Project, Series 1998,
5.625%, 7/01/18 (Alternative Minimum Tax) (4)
1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 651,480
Revenue Bonds, Elderly Care, Lenbrook Square Project,
Series 2006A, 5.125%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
1,845 Total Georgia 1,434,237
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.1% (8.7% OF TOTAL INVESTMENTS)
1,100 Hillside, Cook County, Illinois, Senior Lien Tax Increment 1/18 at 102.00 N/R 951,203
Revenue Bonds, Mannheim Redevelopment Project, Series
2008, 7.000%, 1/01/28
5,620 Illinois Finance Authority, Charter School Revenue Bonds, No Opt. Call BBB 4,701,523
Chicago Charter School Foundation, Series 2007, 5.000%,
12/01/36
1,900 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 2,137,272
Series 2009A, 7.750%, 8/15/34
1,500 Illinois Finance Authority, Revenue Bonds, Roosevelt 4/17 at 100.00 Baa2 1,418,880
University, Series 2007, 5.500%, 4/01/37
2,000 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 2,102,220
Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38
2,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 B+ 1,305,320
Conference Center and Hotel Revenue Bonds, Series 2005A-2,
5.500%, 1/01/36 - ACA Insured
Southwestern Illinois Development Authority, Illinois, Saint
Clair County Comprehensive Mental Health Center, Series
2007:
1,295 6.200%, 6/01/17 No Opt. Call N/R 1,244,262
3,020 6.625%, 6/01/37 6/17 at 103.00 N/R 2,698,581
1,000 Southwestern Illinois Development Authority, Local Government 3/14 at 100.00 N/R 995,530
Program Revenue Bonds, Granite City Project, Series 2009B,
7.750%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
19,435 Total Illinois 17,554,791
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.2% (2.8% OF TOTAL INVESTMENTS)
3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 2,477,760
Revenue Bonds, Cardinal Health System, Series 2006,
5.125%, 8/01/29
1,600 Indiana Bond Bank, Special Program Gas Revenue Bonds, JP No Opt. Call Aa3 1,686,512
Morgan Ventures Energy Corporation Guaranteed, Series
2007A, 15.229%, 10/15/20 (IF)
Vigo County, Indiana, Hospital Authority, Union Hospital,
Revenue Bonds, Series 2007:
250 5.700%, 9/01/37 9/17 at 100.00 N/R 196,498
1,625 5.800%, 9/01/47 9/17 at 100.00 N/R 1,254,776
------------------------------------------------------------------------------------------------------------------------------------
6,475 Total Indiana 5,615,546
------------------------------------------------------------------------------------------------------------------------------------
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.2% (3.6% OF TOTAL INVESTMENTS)
$ 3,500 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB $ 3,377,465
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
4,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 2,961,480
Community Development Authority, Revenue Bonds, Southgate
Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37
1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 905,050
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
8,500 Total Louisiana 7,243,995
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.0% (0.0% OF TOTAL INVESTMENTS)
90 Boston Industrial Development Financing Authority, 9/12 at 102.00 Caa1 58,284
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.3% (1.2% OF TOTAL INVESTMENTS)
1,000 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 644,330
Bonds, Garden City Hospital Obligated Group, Series 2007A,
4.875%, 8/15/27
1,750 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 1,407,385
School Revenue Bonds, American Montessori Academy, Series
2007, 6.500%, 12/01/37
20 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 Ba3 16,715
Bonds, Detroit Medical Center Obligated Group, Series
1998A, 5.250%, 8/15/23
325 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 BB- 255,109
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1997A, 5.250%, 8/15/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,095 Total Michigan 2,323,539
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.5% (1.3% OF TOTAL INVESTMENTS)
3,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 2,675,460
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%,
11/15/35
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.6% (2.2% OF TOTAL INVESTMENTS)
1,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 1,010,800
Brentwood and Maplewood, Missouri, Transportation Sales
Revenue Bonds, Series 2009, 5.875%, 10/01/36
1,000 Missouri Development Finance Board. Infrastructure Facilities 4/14 at 100.00 A+ 1,018,820
Revenue Bonds, City of Independence, Missouri - Events
Center Project, Series 2009F, 6.250%, 4/01/38
40 Saint Louis Industrial Development Authority, Missouri, Saint 12/10 at 102.00 Ca 14,036
Louis Convention Center Headquarters Hotel Project, Series
2000A, 7.000%, 12/15/15 (Alternative Minimum Tax) (5)
1,000 Saint Louis, Missouri, Orpheum Theater Community Improvement No Opt. Call N/R 995,250
District, Property and Sales Tax Revenue Bonds, Series
2009, 9.000%, 3/01/29
1,953 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 3/10 at 100.00 N/R 1,442,154
Fashion Square Redevelopment Project, Series 2008A,
6.300%, 8/22/26
------------------------------------------------------------------------------------------------------------------------------------
4,993 Total Missouri 4,481,060
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.3% (0.3% OF TOTAL INVESTMENTS)
715 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 599,127
Bonds, Yellowstone Energy LP, Series 1993, 7.000%,
12/31/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.4% (1.3% OF TOTAL INVESTMENTS)
55 Clark County, Nevada, Industrial Development Revenue Bonds, 1/10 at 100.00 BB+ 52,207
Nevada Power Company, Series 1995A, 5.600%, 10/01/30
(Alternative Minimum Tax)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
1,200 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 Caa2 246,012
1,200 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 246,012
Sparks Tourism Improvement District 1, Legends at Sparks
Marina, Nevada, Senior Sales Tax Revenue Bonds Series 2008A:
1,000 6.500%, 6/15/20 6/18 at 100.00 Ba2 1,005,140
1,000 6.750%, 6/15/28 6/18 at 100.00 Ba2 970,050
------------------------------------------------------------------------------------------------------------------------------------
4,455 Total Nevada 2,519,421
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 79
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5% (0.5% OF TOTAL INVESTMENTS)
$ 1,000 New Hampshire Business Finance Authority, Solid Waste 5/16 at 101.00 BBB $ 951,450
Disposal Revenue Bonds, Waste Management Inc. Project,
Series 2002, 5.200%, 5/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.5% (3.9% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Special Facilities
Revenue Bonds, Continental Airlines Inc., Series 1999:
3,000 6.250%, 9/15/19 (Alternative Minimum Tax) 9/11 at 100.00 B 2,716,110
55 6.400%, 9/15/23 (Alternative Minimum Tax) 3/10 at 101.00 B 49,265
240 6.250%, 9/15/29 (Alternative Minimum Tax) 3/10 at 101.00 B 206,366
25 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 23,362
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
3,200 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 3,121,856
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
1,000 New Jersey Health Care Facilities Financing Authority, No Opt. Call BBB- 1,025,010
Revenue Bonds, Saint Joseph's Healthcare System Obligated
Group Issue, Series 2008, 6.000%, 7/01/18
700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 733,684
5.250%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
8,220 Total New Jersey 7,875,653
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.2% (0.2% OF TOTAL INVESTMENTS)
500 Montecito Estates Public Improvement District, New Mexico, 10/17 at 100.00 N/R 368,070
Special Levee Revenue Bonds, Series 2007, 7.000%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.4% (1.2% OF TOTAL INVESTMENTS)
1,000 New York City Industrial Development Agency, New York, 8/18 at 100.00 B- 966,560
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005, 7.625%, 8/01/25
(Mandatory put 8/01/16) (Alternative Minimum Tax)
1,030 New York City Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 896,852
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1, 5.800%, 7/01/23
700 Seneca Nation of Indians Capital Improvements Authority, New No Opt. Call BB 654,633
York, Special Obligation Bonds, Series 2007A, 5.250%,
12/01/16
------------------------------------------------------------------------------------------------------------------------------------
2,730 Total New York 2,518,045
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.1% (2.6% OF TOTAL INVESTMENTS)
1,970 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 1,478,682
Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38
1,260 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,123,996
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149-3, 13.204%, 1/15/47 (IF)
North Carolina Capital Facilities Financing Agency,
Educational Facilities Revenue Bond, Meredith College, Series
2008A:
1,740 6.000%, 6/01/31 6/18 at 100.00 BBB 1,746,142
1,000 6.125%, 6/01/35 6/18 at 100.00 BBB 995,450
------------------------------------------------------------------------------------------------------------------------------------
5,970 Total North Carolina 5,344,270
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.9% (2.5% OF TOTAL INVESTMENTS)
4,845 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 3,589,757
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 5.875%, 6/01/47
2,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 1,524,020
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,845 Total Ohio 5,113,777
------------------------------------------------------------------------------------------------------------------------------------
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 165 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A $ 155,673
John Health System, Series 2007, 5.000%, 2/15/42
45 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 12/09 at 100.00 B- 38,327
American Airlines Inc., Series 1995, 6.250%, 6/01/20
500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa2 477,665
Bonds, American Airlines Inc., Series 2004A, 7.750%,
6/01/35 (Mandatory put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
710 Total Oklahoma 671,665
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.1% (0.1% OF TOTAL INVESTMENTS)
25 Oregon, Economic Development Revenue Bonds, Georgia Pacific 2/10 at 100.00 BB- 24,236
Corp., Series 1995CLVII, 6.350%, 8/01/25 (Alternative
Minimum Tax) (4)
125 Oregon, Economic Development Revenue Refunding Bonds, Georgia 12/09 at 100.00 B2 112,118
Pacific Corp., Series 1997-183, 5.700%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
150 Total Oregon 136,354
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.8% (1.5% OF TOTAL INVESTMENTS)
1,010 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 852,309
Pennsylvania, Avon Grove Charter School Revenue Bonds,
Series 2007A, 6.375%, 12/15/37
1,450 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 1,303,666
Bonds, Brethren Village Project, Series 2008A, 6.500%,
7/01/40
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/19 at 100.00 AA+ 966,460
Revenue Bonds, Tender Option Bond Trust 4657, 15.852%,
10/01/29 (IF)
------------------------------------------------------------------------------------------------------------------------------------
3,460 Total Pennsylvania 3,122,435
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.0% (0.0% OF TOTAL INVESTMENTS)
20 Puerto Rico Ports Authority, Special Facilities Revenue 12/09 at 100.00 CCC+ 14,624
Bonds, American Airlines Inc., Series 1996A, 6.250%,
6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.3% (0.2% OF TOTAL INVESTMENTS)
500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 454,445
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.5% (2.2% OF TOTAL INVESTMENTS)
1,100 Georgetown County, South Carolina, Environmental Improvement 8/11 at 100.00 BBB 933,306
Revenue Bonds, International Paper Company, Series 2006A,
5.000%, 8/01/30 (Alternative Minimum Tax)
3,477 Lancaster County, South Carolina, Special Assessment Bonds, No Opt. Call N/R 3,434,302
Edgewater II Improvement District, Series 2007B, 7.700%,
11/01/17
------------------------------------------------------------------------------------------------------------------------------------
4,577 Total South Carolina 4,367,608
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.0% (2.6% OF TOTAL INVESTMENTS)
2,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 1,719,860
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Refunding Series 200A, 5.440%, 9/01/32
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
1,500 5.500%, 11/01/37 11/17 at 100.00 N/R 570,150
1,000 5.500%, 11/01/46 11/17 at 100.00 N/R 380,100
2,761 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call N/R 2,593,545
Bonds, Series 2006B, 5.625%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
7,261 Total Tennessee 5,263,655
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 81
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.0% (10.3% OF TOTAL INVESTMENTS)
Alliance Airport Authority, Texas, Special Facilities Revenue
Bonds, American Airlines Inc., Series 2007:
$ 1,000 5.250%, 12/01/29 (Alternative Minimum Tax) 12/12 at 100.00 CCC+ $ 597,650
1,000 5.750%, 12/01/29 (Alternative Minimum Tax) 12/10 at 100.00 CCC+ 640,900
440 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 396,717
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
2,100 Clifton Higher Education Finance Corporation, Texas, No Opt. Call BBB- 2,411,934
Education Revenue Bonds, Tejano Center for Community
Concerns, Inc.-Raul Yzaguirre School for Success,
Refunding Series 2009A, 8.750%, 2/15/28
3,000 Danbury Higher Education Authority Inc., Texas, Golden Rule 2/18 at 100.00 BB+ 2,585,130
Charter School Revenue Bonds, Series 2008A, 6.500%, 8/15/38
995 Hidalgo Willacy Housing Finance Corporation, Texas, 1/14 at 102.00 N/R 930,713
Multifamily Housing Revenue Bonds, Heritage Square
Apartments Project, Series 2003A, 7.000%, 1/01/39
1,330 La Vernia Higher Education Financing Corporation, Texas, 2/16 at 100.00 N/R 1,103,408
Education Revenue Bonds, Amigos Por Vida Friends For Life
Public Charter School, Series 2008, 6.375%, 2/15/37
335 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 338,886
Refunding Bonds, Series 2008, 5.750%, 1/01/38
110 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 99,179
Bonds, TXU Energy Company LLC Project, Series 2001B,
5.750%, 5/01/30 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
385 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 347,128
Refunding Bonds, TXU Electric Company, Series 2001A,
5.500%, 5/01/22 (Mandatory put 11/01/11)
3,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 CCC 1,558,200
Refunding Bonds, TXU Energy Company LLC Project, Series
2003B, 6.150%, 8/01/22
4,255 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 3,847,456
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 12.000%, 2/15/36 (IF)
500 Texas Municipal Gas Acquisition and Supply Corporation I, Gas No Opt. Call A 520,970
Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%,
12/15/26
1,000 Texas Public Finance Authority, Charter School Revenue Bonds, 12/14 at 100.00 BB 913,400
School of Excellence Charter School, Series 2004A, 7.000%,
12/01/34
5,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central 8/12 at 100.00 BBB+ 4,558,400
Texas Turnpike System, Series 2002A, 5.000%, 8/15/42 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
24,450 Total Texas 20,850,071
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.7% (3.2% OF TOTAL INVESTMENTS)
Utah State Charter School Finance Authority, Noah Webster
Academy Revenue Bonds, Series:
500 6.250%, 6/15/28 6/17 at 100.00 N/R 437,760
1,430 6.500%, 6/15/38 6/17 at 100.00 N/R 1,226,797
5,550 Utah State Charter School Finance Authority, Revenue Bonds, 12/17 at 100.00 BBB- 4,779,383
Summit Academy Project, Series 2007A, 5.800%, 6/15/38
------------------------------------------------------------------------------------------------------------------------------------
7,480 Total Utah 6,443,940
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 1.2% (1.0% OF TOTAL INVESTMENTS)
1,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 1,018,070
Refinery Project - Hovensa LLC, Series 2003, 6.125%,
7/01/22 (Alternative Minimum Tax)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,016,430
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Virgin Islands 2,034,500
------------------------------------------------------------------------------------------------------------------------------------
82 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.5% OF TOTAL INVESTMENTS)
$ 50 Goochland County Industrial Development Authority, Virginia, 12/09 at 100.50 B2 $ 44,605
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%,
12/01/25 (Alternative Minimum Tax) (4)
1,000 Virginia Small Business Financing Authority Revenue Bonds 7/14 at 102.00 N/R 1,034,070
(Hampton Roads Proton Beam Therapy Institute at Hampton
University, LLC Project), Series 2009, 9.000%, 7/01/39
------------------------------------------------------------------------------------------------------------------------------------
1,050 Total Virginia 1,078,675
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.6% (5.7% OF TOTAL INVESTMENTS)
2,415 FYI Properties, Washington, Lease Revenue Bonds, Washington 6/19 at 100.00 AA 2,959,727
State Department of Information Services Project, Tender
Option Bond Trust 2009-14A&B, 19.210%, 6/01/34 (IF)
3,500 Kalispel Indian Tribe, Washington, Priority Distribution No Opt. Call N/R 2,916,865
Bonds, Series 2008, 6.750%, 1/01/38
7,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 5,600,630
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
12,915 Total Washington 11,477,222
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.3% (0.3% OF TOTAL INVESTMENTS)
740 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 583,638
Excise Tax Revenue Bonds, Fort Henry Economic Development,
Series 2006B, 5.625%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4% (1.2% OF TOTAL INVESTMENTS)
30 Green Bay Redevelopment Authority, Wisconsin, Industrial No Opt. Call N/R 27,588
Development Revenue Bonds, Fort James Project, Series
1999, 5.600%, 5/01/19 (Alternative Minimum Tax)
360 Nekoosa, Wisconsin, Pollution Control Revenue Bonds, Nekoosa No Opt. Call B2 345,088
Paper Inc. Project, Series 1999B, 5.500%, 7/01/15
1,000 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 A+ 872,199
Revenue Bonds, Ministry Healthcare Inc., Tender option
Bond Trust 3114, 15.795%, 2/15/32 - NPFG Insured (IF)
500 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 204,870
Revenue Bonds, Wheaton Franciscan Health, Trust 2113,
14.394%, 8/15/34 (IF)
2,250 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 921,915
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, Trust 2187, 14.394%, 8/15/34 (IF)
------------------------------------------------------------------------------------------------------------------------------------
4,140 Total Wisconsin 2,371,660
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.1% (0.9% OF TOTAL INVESTMENTS)
2,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 1,880,060
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 241,061 Total Investments (cost $220,384,592) - 115.8% 201,838,256
===============---------------------------------------------------------------------------------------------------------------------
Borrowings - (20.1)% (6) (35,000,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.3% 7,514,442
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 174,352,698
==================================================================================================================
Nuveen Investments 83
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of Investments October 31, 2009
Investments in Derivatives
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2009:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (7) DATE (DEPRECIATION)
----------------------------------------------------------------------------------------------------------------------------------
JPMorgan $ 6,000,000 Receive 3-Month USD-LIBOR 3.413% Semi-Annually 4/09/10 4/09/39 $ 852,000
Royal Bank of Canada 3,000,000 Receive 3-Month USD-LIBOR 3.327 Semi-Annually 4/23/10 4/23/39 472,800
----------------------------------------------------------------------------------------------------------------------------------
$ 1,324,800
==================================================================================================================================
FUTURES CONTRACTS AT OCTOBER 31, 2009:
VALUE AT UNREALIZED
CONTRACT NUMBER OF CONTRACT OCTOBER 31, APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION 2009 (DEPRECIATION)
-------------------------------------------------------------------------------------------------------
U.S. Treasury 30-Year Bond Short (87) 12/09 $(10,453,594) $ (81,784)
=======================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's")
rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are
considered to be below investment grade.
(4) The issuer has received a formal adverse determination from the
Internal Revenue Service (the "IRS") regarding the tax-exempt status
of the bonds' coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it is formally
determined that the interest on the bonds should be treated as
taxable.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's
custodian to cease accruing additional income on the Fund's records.
(6) Borrowings as a percentage of Total Investments is 17.3%.
(7) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
(IF) Inverse floating rate investment.
USD-LIBOR United States Dollar-London Inter-Bank Offered Rate.
See accompanying notes to financial statements.
84 Nuveen Investments
| Statement of
| Assets & Liabilities October 31, 2009
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQM) (NQS) (NQU)
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $789,781,632, $729,435,281 and $1,178,627,349,
respectively) $ 798,173,885 $ 730,919,102 $ 1,206,346,732
Cash 7,678,117 -- --
Deposits with brokers for open futures contracts -- -- --
Unrealized appreciation on forward swaps -- -- --
Receivables:
Interest 12,786,477 11,885,496 19,220,963
Investments sold 3,535,220 19,314,750 7,564,939
Other assets 163,355 161,605 238,945
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 822,337,054 762,280,953 1,233,371,579
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Borrowings -- -- --
Cash overdraft -- 4,847,800 326,520
Floating rate obligations 93,377,000 18,540,000 66,620,000
Unrealized depreciation on forward swaps -- -- --
Payables:
Investments purchased 4,148,078 3,422,577 --
Common share dividends 2,203,429 2,265,723 3,504,258
Preferred share dividends 10,028 12,186 17,027
Variation margin on futures contracts -- -- --
Accrued expenses:
Interest on borrowings -- -- --
Management fees 431,008 400,852 635,640
Shelf offering costs -- -- --
Other 557,291 283,505 411,198
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 100,726,834 29,772,643 71,514,643
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 210,700,000 251,275,000 386,875,000
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 510,910,220 $ 481,233,310 $ 774,981,936
===================================================================================================================================
Common shares outstanding 35,820,767 34,028,031 54,219,374
===================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 14.26 $ 14.14 $ 14.29
===================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
===================================================================================================================================
Common shares, $.01 par value per share $ 358,208 $ 340,280 $ 542,194
Paid-in surplus 500,074,515 474,068,165 755,208,196
Undistributed (Over-distribution of) net investment income 5,658,233 5,785,986 9,681,121
Accumulated net realized gain (loss) from investments and derivative
transactions (3,572,989) (444,942) (18,168,958)
Net unrealized appreciation (depreciation) of investments and derivative
transactions 8,392,253 1,483,821 27,719,383
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 510,910,220 $ 481,233,310 $ 774,981,936
===================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
===================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 85
| Statement of
| Assets & Liabilities (continued) October 31, 2009
PREMIER HIGH INCOME HIGH INCOME
INCOME OPPORTUNITY OPPORTUNITY 2
(NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $443,998,590, $408,338,760 and $220,384,592,
respectively) $ 455,370,566 $ 387,195,132 $ 201,838,256
Cash 1,467,630 1,764,227 1,774,855
Deposits with brokers for open futures contracts -- -- 278,400
Unrealized appreciation on forward swaps -- 1,182,800 1,324,800
Receivables:
Interest 7,009,358 9,314,335 5,614,413
Investments sold 479,554 257,170 10,000
Other assets 122,233 101,340 24,468
------------------------------------------------------------------------------------------------------------------------------------
Total assets 464,449,341 399,815,004 210,865,192
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Borrowings -- -- 35,000,000
Cash overdraft -- -- --
Floating rate obligations 60,373,400 10,300,000 --
Unrealized depreciation on forward swaps -- 888,000 --
Payables:
Investments purchased -- 2,229,426 --
Common share dividends 1,157,345 2,093,831 1,148,506
Preferred share dividends 4,860 9,724 N/A
Variation margin on futures contracts -- -- 127,781
Accrued expenses:
Interest -- -- 1,501
Management fees 238,081 162,338 171,152
Shelf offering costs -- 30,089 --
Other 154,532 138,227 63,554
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 61,928,218 15,851,635 36,512,494
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 126,850,000 95,000,000 N/A
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 275,671,123 $ 288,963,369 $ 174,352,698
====================================================================================================================================
Common shares outstanding 19,888,518 25,848,387 16,028,190
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable to
Common shares, divided by Common shares outstanding) $ 13.86 $ 11.18 $ 10.88
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
====================================================================================================================================
Common shares, $.01 par value per share $ 198,885 $ 258,484 $ 160,282
Paid-in surplus 276,697,009 359,634,158 228,032,318
Undistributed (Over-distribution of) net investment income 2,573,495 1,114,843 816,777
Accumulated net realized gain (loss) from investments and derivative transactions (15,170,242) (51,195,288) (37,353,359)
Net unrealized appreciation (depreciation) of investments and derivative
transactions 11,371,976 (20,848,828) (17,303,320)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 275,671,123 $ 288,963,369 $ 174,352,698
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited
====================================================================================================================================
N/A -- High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through October 31, 2009.
See accompanying notes to financial statements.
86 Nuveen Investments
| Statement of
| Operations Year Ended October 31, 2009
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQM) (NQS) (NQU)
-----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 42,770,796 $ 43,596,144 $ 66,024,737
-----------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,568,922 4,423,495 7,113,191
Preferred shares - auction fees 439,950 520,349 811,018
Preferred shares - dividend disbursing agent fees 50,000 50,000 60,000
Shareholders' servicing agent fees and expenses 46,977 41,793 68,987
Interest expense 807,587 154,692 587,539
Custodian's fees and expenses 133,368 132,354 220,466
Directors'/Trustees' fees and expenses 22,124 22,352 36,211
Professional fees 58,718 57,110 86,196
Shareholders' reports - printing and mailing expenses 129,309 128,842 202,314
Stock exchange listing fees 12,322 11,730 18,596
Investor relations expense 45,126 45,004 70,981
Shelf offering expenses -- -- --
Other expenses 48,215 48,046 62,449
-----------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 6,362,618 5,635,767 9,337,948
Custodian fee credit (26,048) (28,758) (21,574)
Expense reimbursement -- -- --
-----------------------------------------------------------------------------------------------------------------------
Net expenses 6,336,570 5,607,009 9,316,374
-----------------------------------------------------------------------------------------------------------------------
Net investment income 36,434,226 37,989,135 56,708,363
-----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (3,071,534) 838,871 (8,583,481)
Forward swaps -- -- --
Futures -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 71,805,746 64,648,767 85,907,477
Forward swaps -- -- --
Futures -- -- --
-----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 68,734,212 65,487,638 77,323,996
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,535,175) (2,102,870) (3,267,537)
From accumulated net realized gains (401,006) -- --
-----------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (1,936,181) (2,102,870) (3,267,537)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 103,232,257 $ 101,373,903 $ 130,764,822
=======================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 87
| Statement of
| Operations (continued) October 31, 2009
PREMIER HIGH INCOME HIGH INCOME
INCOME OPPORTUNITY OPPORTUNITY 2
(NPF) (NMZ) (NMD)
---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 22,852,793 $ 28,631,846 $ 16,806,224
---------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,530,021 2,459,101 1,520,827
Preferred shares - auction fees 251,995 207,657 N/A
Preferred shares - dividend disbursing agent fees 30,000 29,986 N/A
Shareholders' servicing agent fees and expenses 25,384 2,396 357
Interest expense 556,256 76,719 371,375
Custodian's fees and expenses 77,635 86,031 50,004
Directors'/Trustees' fees and expenses 12,185 10,773 5,687
Professional fees 36,791 327,071 54,616
Shareholders' reports - printing and mailing expenses 80,632 87,569 37,763
Stock exchange listing fees 9,215 3,358 14,584
Investor relations expense 24,901 25,549 --
Shelf offering expenses -- 190,495 --
Other expenses 36,342 28,059 122,050
---------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 3,671,357 3,534,764 2,177,263
Custodian fee credit (14,154) (1,321) (147)
Expense reimbursement -- (826,108) --
---------------------------------------------------------------------------------------------------------------------
Net expenses 3,657,203 2,707,335 2,177,116
---------------------------------------------------------------------------------------------------------------------
Net investment income 19,195,590 25,924,511 14,629,108
---------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (7,068,813) (32,716,070) (30,433,348)
Forward swaps (4,125,000) -- --
Futures -- (4,745,444) (1,952,740)
Change in net unrealized appreciation (depreciation) of:
Investments 47,005,036 77,003,728 60,267,241
Forward swaps 3,882,335 294,800 1,324,800
Futures -- (1,213,249) (551,429)
---------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 39,693,558 38,623,765 28,654,524
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,007,804) (992,448) N/A
From accumulated net realized gains -- -- N/A
---------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (1,007,804) (992,448) N/A
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 57,881,344 $ 63,555,828 $ 43,283,632
=====================================================================================================================
N/A -- High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through October 31, 2009.
See accompanying notes to financial statements.
88 Nuveen Investments
| Statement of
| Changes in Net Assets
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
------------------------------ -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 36,434,226 $ 36,319,392 $ 37,989,135 $ 36,616,331
Net realized gain (loss) from:
Investments (3,071,534) 1,970,511 838,871 (525,514)
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 71,805,746 (102,361,574) 64,648,767 (101,745,781)
Forward swaps -- -- -- --
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (1,535,175) (10,309,882) (2,102,870) (10,295,198)
From accumulated net realized gains (401,006) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 103,232,257 (74,381,553) 101,373,903 (75,950,162)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (27,621,403) (27,513,935) (28,847,903) (27,346,151)
From accumulated net realized gains (1,071,041) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (28,692,444) (27,513,935) (28,847,903) (27,346,151)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of offering costs -- -- -- --
Proceeds from shelf offering, net of offering costs -- -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- -- 165,835 167,321
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- -- 165,835 167,321
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares 74,539,813 (101,895,488) 72,691,835 (103,128,992)
Net assets applicable to Common shares at the beginning of period 436,370,407 538,265,895 408,541,475 511,670,467
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 510,910,220 $ 436,370,407 $ 481,233,310 $ 408,541,475
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 5,658,233 $ (1,608,899) $ 5,785,986 $ (982,059)
====================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 89
| Statement of
| Changes in Net Assets (continued)
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
------------------------------ -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 56,708,363 $ 56,052,360 $ 19,195,590 $ 18,713,212
Net realized gain (loss) from:
Investments (8,583,481) 2,043,801 (7,068,813) (3,335,364)
Forward swaps -- -- (4,125,000) (247,000)
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 85,907,477 (124,593,451) 47,005,036 (53,822,222)
Forward swaps -- -- 3,882,335 (4,012,094)
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (3,267,537) (16,361,736) (1,007,804) (5,664,126)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 130,764,822 (82,859,026) 57,881,344 (48,367,594)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (43,375,504) (39,634,364) (14,562,011) (13,435,852)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (43,375,504) (39,634,364) (14,562,011) (13,435,852)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of offering costs -- -- -- --
Proceeds from shelf offering, net of offering costs -- -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- -- -- --
Repurchased -- -- (165,375) (57,215)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- -- (165,375) (57,215)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares 87,389,318 (122,493,390) 43,153,958 (61,860,661)
Net assets applicable to Common shares at the beginning of period 687,592,618 810,086,008 232,517,165 294,377,826
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 774,981,936 $ 687,592,618 $ 275,671,123 $ 232,517,165
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 9,681,121 $ (369,085) $ 2,573,495 $ (1,037,332)
====================================================================================================================================
90 Nuveen Investments
HIGH INCOME HIGH INCOME
OPPORTUNITY (NMZ) OPPORTUNITY 2 (NMD)
----------------------------- --------------------------------
FOR THE PERIOD
11/15/07
YEAR YEAR YEAR (COMMENCEMENT
ENDED ENDED ENDED OF OPERATIONS)
10/31/09 10/31/08 10/31/09 THROUGH 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 25,924,511 $ 30,750,774 $ 14,629,108 $ 14,031,123
Net realized gain (loss) from:
Investments (32,716,070) (13,697,890) (30,433,348) (6,437,236)
Forward swaps -- -- -- --
Futures (4,745,444) (704,149) (1,952,740) 1,400,745
Change in net unrealized appreciation (depreciation) of:
Investments 77,003,728 (122,536,846) 60,267,241 (78,813,577)
Forward swaps 294,800 -- 1,324,800 --
Futures (1,213,249) 1,213,249 (551,429) 469,645
Distributions to Preferred Shareholders:
From net investment income (992,448) (5,489,754) N/A N/A
From accumulated net realized gains -- (526,498) N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 63,555,828 (110,991,114) 43,283,632 (69,349,300)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (25,434,721) (23,458,428) (15,314,000) (12,459,756)
From accumulated net realized gains -- (2,146,329) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (25,434,721) (25,604,757) (15,314,000) (12,459,756)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of offering costs -- -- -- 225,146,250
Proceeds from shelf offering, net of offering costs 20,102,553 4,544,766 -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 616,836 690,395 1,638,496 1,307,101
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 20,719,389 5,235,161 1,638,496 226,453,351
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares 58,840,496 (131,360,710) 29,608,128 144,644,295
Net assets applicable to Common shares at the beginning of period 230,122,873 361,483,583 144,744,570 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 288,963,369 $ 230,122,873 $ 174,352,698 $ 144,744,570
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 1,114,843 $ 2,005,779 $ 816,777 $ 1,569,363
====================================================================================================================================
N/A -- High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through October 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 91
| Statement of
| Cash Flows Year ended October 31, 2009
INVESTMENT PREMIER HIGH INCOME
QUALITY INCOME OPPORTUNITY 2
(NQM) (NPF) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 103,232,257 $ 57,881,344 $ 43,283,632
Adjustments to reconcile the net increase (decrease) in net assets
applicable to Common shares from operations to net cash provided by
(used in) operating activities:
Purchases of investments (72,943,203) (30,011,606) (79,985,933)
Proceeds from sales and maturities of investments 59,310,793 32,840,579 98,020,087
Proceeds from (Purchases of) short-term investments, net 19,450,000 13,344,500 --
Proceeds from (Payments for) terminated forward swaps -- (4,125,000) --
Proceeds from (Payments for) closed/expired futures contracts -- -- (1,952,740)
Amortization (Accretion) of premiums and discounts, net (1,014,064) (3,164,065) (428,297)
(Increase) Decrease in receivable for interest (370,746) (233,493) 817,111
(Increase) Decrease in receivable for investments sold (3,525,220) (69,832) 5,000
(Increase) Decrease in receivable for variation margin on futures contracts -- -- 128,250
(Increase) Decrease in other assets (82,481) (67,513) 59,879
Increase (Decrease) in payable for investments purchased (381,337) -- --
Increase (Decrease) in payable for Preferred share dividends (52,785) (20,547) --
Increase (Decrease) in payable for variation margin on futures contracts -- -- 127,781
Increase (Decrease) in accrued interest on borrowings -- -- (211,414)
Increase (Decrease) in accrued management fees 76,506 45,046 50,762
Increase (Decrease) in accrued other liabilities 349,350 (22,394) 16,445
Net realized (gain) loss from investments 3,071,534 7,068,813 30,433,348
Net realized (gain) loss from forward swaps -- 4,125,000 --
Net realized (gain) loss from futures -- -- 1,952,740
Change in net unrealized (appreciation) depreciation of investments (71,805,746) (47,005,036) (60,267,241)
Change in net unrealized (appreciation) depreciation of forward swaps -- (3,882,335) (1,324,800)
Taxes paid on undistributed capital gains (6,567) -- (88)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 35,308,291 26,703,461 30,724,522
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in borrowings -- -- (5,000,000)
Increase (Decrease) in cash overdraft balance -- -- (9,539,448)
Increase (Decrease) in floating rate obligations 13,905,000 (13,776,106) --
Cash distributions paid to Common shareholders (28,433,475) (14,413,389) (13,659,319)
Increase (Decrease) in accrued shelf offering costs -- -- (472,500)
Cost of Common shares repurchased -- (165,375) --
Increase (Decrease) in Preferred shares (18,750,000) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (33,278,475) (28,354,870) (28,671,267)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 2,029,816 (1,651,409) 2,053,255
Cash and cash equivalents at the beginning of year 5,648,301 3,119,039 --
------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF YEAR $ 7,678,117 $ 1,467,630 $ 2,053,255
====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $0, $0 and $1,638,496, for Investment Quality
(NQM), Premier Income (NPF) and High Income Opportunity 2 (NMD), respectively.
Cash paid by Investment Quality (NQM), Premier Income (NPF) and High Income
Opportunity 2 (NMD) for interest was $807,587, $556,256 and $582,789,
respectively.
See accompanying notes to financial statements.
92 Nuveen Investments
| Notes to
| Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM),
Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income
Municipal Fund, Inc. (NQU), Nuveen Premier Municipal Income Fund, Inc. (NPF),
Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal High
Income Opportunity Fund 2 (NMD) (collectively, the "Funds"). Common shares of
Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU), Premier
Income (NPF) and High Income Opportunity 2 (NMD) are traded on the New York
Stock Exchange (NYSE) while Common shares of High Income Opportunity (NMZ) are
traded on the NYSE Amex. The Funds are registered under the Investment Company
Act of 1940, as amended, as closed-end, management investment companies.
Prior to the commencement of operations, High Income Opportunity 2 (NMD) had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Asset Management (the "Adviser"), a
wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and the
recording of the organization expenses ($11,000) and their reimbursement by
Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a portfolio of municipal obligations issued by state
and local government authorities or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. Futures contracts are
valued using the closing settlement price, or, in the absence of such a price,
at the mean of the bid and asked prices. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At October 31, 2009,
Investment Quality (NQM), Select Quality (NQS) and High Income Opportunity (NMZ)
had outstanding when issued/delayed delivery purchase commitments of $4,148,078,
$3,422,577 and $985,299, respectively. There were no such outstanding purchase
commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Nuveen Investments 93
| Notes to
| Financial Statements (continued)
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Preferred Shares
Although authorized, High Income Opportunity 2 (NMD) has not issue Preferred
shares since its commencement of operations on November 17, 2007. The following
Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of October 31, 2009, the number of Preferred shares outstanding, by Series and
in total, for each Fund is as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
--------------------------------------------------------------------------------
Number of shares:
Series M 1,750 1,801 2,567 769 1,826
Series T 1,750 1,801 2,569 2,153 987
Series W 1,749 2,522 2,568 -- 987
Series W2 -- -- 1,780 -- --
Series TH 1,429 1,405 3,423 2,152 --
Series F 1,750 2,522 2,568 -- --
--------------------------------------------------------------------------------
Total 8,428 10,051 15,475 5,074 3,800
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
will likely be higher at times than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may likely have been incrementally lower then they otherwise would have
been. As of October 31, 2009, the aggregate amount of outstanding Preferred
shares redeemed by each Fund is as follows:
94 Nuveen Investments
HIGH
INVESTMENT SELECT QUALITY PREMIER INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
---------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 90,300,000 $ 27,725,000 $ 65,125,000 $ 38,150,000 $ 60,000,000
===========================================================================================================================
Organization and Offering Costs
Nuveen Investments, LLC has agreed to reimburse all organizational costs
(approximately $11,000) and pay all Common share offering costs (other than the
sales load) that exceed $.03 per Common share of High Income Opportunity Fund 2
(NMD). High Income Opportunity Fund 2's (NMD) share of Common share offering
costs ($472,500) were recorded as reductions of the proceeds from the sale of
Common shares.
Common Shares Shelf Offering
During the current fiscal year, High Income Opportunity (NMZ) filed a
registration statement with the Securities and Exchange Commission (SEC) to
issue the remaining 1,900,000 Common shares through its ongoing shelf offering
which became effective with the SEC on September 24, 2007, authorizing the Fund
to issue up to 2,400,000 Common shares. During the fiscal year ended October 31,
2009, the Fund had issued 1,900,000 Common shares, receiving aggregate offering
proceeds of $20,102,553. In addition, the Fund filed another registration
statement with the SEC to register an additional 2,600,000 Common shares, which
registration statement was not yet effective with the SEC as of October 31,
2009. Under this new equity shelf program, the Fund, subject to market
conditions, may raise additional equity capital from time to time in varying
amounts and offering methods at a net price at or above the Fund's NAV per
Common share.
On October 30, 2009, a registration statement filed by High Income Opportunity 2
(NMD) with the SEC became effective authorizing the Fund to issue 1,600,000
Common shares through a shelf offering, As of October 31, 2009, the Fund had not
issued any Common shares through the shelf offering. Under this equity shelf
program, the Fund, subject to market conditions, may raise additional equity
capital from time to time in varying amounts and offering methods at a net price
at or above the Fund's NAV per Common share.
Shelf Offering Costs
Costs incurred by High Income Opportunity (NMZ) in connection with the offering
of its additional Common shares are recorded as a deferred charge which are
amortized over the period such additional Common shares are sold not to exceed
the one-year life of the shelf offering period.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the fiscal year ended October 31, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Nuveen Investments 95
| Notes to
| Financial Statements (continued)
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At October 31, 2009, each Fund's maximum exposure to externally-deposited
Recourse Trusts, is as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ 18,750,000 $ 7,500,000 $ 4,955,000 $ -- $ 39,495,000
====================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended October 31, 2009, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations
outstanding $ 86,302,630 $ 15,322,890 $ 60,435,668 $ 62,697,030 $ 10,300,000
Average annual interest rate and fees 0.94% 1.01% 0.97% 0.89% 0.74%
====================================================================================================================================
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Fund's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or decreases.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward swap is terminated,
it ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." Each Fund intends,
but is not obligated, to terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. The following Funds invested in forward swap contracts during the
fiscal year ended October 31, 2009.
The average notional amount of forward swap contracts outstanding during the
fiscal year ended October 31, 2009, were as follows:
PREMIERE HIGH INCOME HIGH INCOME
INCOME OPPORTUNITY OPPORTUNITY 2
(NPF) (NMZ) (NMD)
-----------------------------------------------------------------------------------------------------------
Average notional amount of forward swap contracts outstanding $ 7,200,000* $ 10,800,00 $ 5,400,000
===========================================================================================================
* The average notional amount is calculated based on the outstanding
notional amount at the beginning of the fiscal year and at the end of each
fiscal quarter within the current fiscal year. The Fund was not invested
in forward swap contracts at the end of the current fiscal year.
Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further
details on swap contract activity.
96 Nuveen Investments
Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in
attempt to manage such risk. Upon entering into a futures contract, a Fund is
required to deposit with the broker an amount of cash or liquid securities equal
to a specified percentage of the contract amount. This is known as the "initial
margin." Cash held by the broker to cover initial margin requirements on open
futures contracts, if any, is recognized as "Deposits with brokers for open
futures contracts" on the Statement of Assets and Liabilities. Subsequent
payments ("variation margin") are made or received by a Fund each day, depending
on the daily fluctuation of the value of the contract. Variation margin is
recognized as a receivable or payable for "Variation margin on futures
contracts" on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. When the contract is closed or
expired, a Fund records a realized gain or loss equal to the difference between
the value of the contract on the closing date and value of the contract when
originally entered into and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices. The following Funds invested in futures
contracts during the fiscal year ended October 31, 2009.
The average number of futures contracts outstanding during the fiscal year ended
October 31, 2009, were as follows:
HIGH INCOME HIGH INCOME
OPPORTUNITY OPPORTUNITY 2
(NMZ) (NMD)
--------------------------------------------------------------------------------
Average number of futures contracts outstanding 56* 46
================================================================================
* The average number of contracts is calculated based on the outstanding
contracts at the beginning of the fiscal year and at the end of each
fiscal quarter within the current fiscal year. The Fund was not invested
in futures contracts at the end of the current fiscal year.
Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further
details on futures contract activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the
Funds as collateral with a value approximately equal to the amount of the
unrealized loss above a pre-determined threshold. Collateral pledges are
monitored and subsequently adjusted if and when the valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Nuveen Investments 97
| Notes to
| Financial Statements (continued)
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be 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 US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted authoritative guidance under
GAAP on determining fair value measurements. This guidance defines fair value,
establishes a framework for measuring fair value in GAAP, and expands disclosure
about fair value measurements. In determining the value of each Fund's
investments various inputs are used. These inputs are summarized in the three
broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of October 31, 2009:
INVESTMENT QUALITY (NQM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 798,173,885 $ -- $ 798,173,885
===========================================================================================
SELECT QUALITY (NQS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 730,919,102 $ -- $ 730,919,102
===========================================================================================
QUALITY INCOME (NQU) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 1,206,346,732 $ -- $ 1,206,346,732
===========================================================================================
PREMIER INCOME (NPF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 454,070,566 $ -- $ 454,070,566
Short-Term Investments -- 1,300,000 -- 1,300,000
-------------------------------------------------------------------------------------------
Total $ -- $ 455,370,566 $ -- $ 455,370,566
===========================================================================================
HIGH INCOME OPPORTUNITY (NMZ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 387,195,132 $ -- $ 387,195,132
Derivatives:
Forward Swaps* -- 294,800 -- 294,800
-------------------------------------------------------------------------------------------
Total $ -- $ 387,489,932 $ -- $ 387,489,932
===========================================================================================
HIGH INCOME OPPORTUNITY 2 (NMD) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 201,838,256 $ -- $ 201,838,256
Derivatives:
Forward Swaps* -- 1,324,800 -- 1,324,800
Futures Contracts* (81,784) -- -- (81,784)
-------------------------------------------------------------------------------------------
Total $ (81,784) $ 203,163,056 $ -- $ 203,081,272
===========================================================================================
* Represents net unrealized appreciation (depreciation).
98 Nuveen Investments
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Funds
record derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, under this
guidance they are considered to be non-hedge transactions for financial
reporting purposes. For additional information on the derivative instruments in
which each Fund was invested during and at the end of the reporting period,
refer to the Portfolio of Investments, Financial Statements and Footnote 1 -
General Information and Significant Accounting Policies.
The following tables present the fair value of all derivative instruments held
by the Funds as of October 31, 2009, the location of these instruments on the
Statement of Assets and Liabilities, and the primary underlying risk exposure.
HIGH INCOME OPPORTUNITY (NMZ)
LOCATION ON THE STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------------
ASSET DERIVATIVES LIABILITY DERIVATIVES
UNDERLYING DERIVATIVE ------------------------------------- ----------------------------------------------
RISK EXPOSURE INSTRUMENT LOCATION VALUE LOCATION VALUE
----------------------------------------------------------------------------------------------------------------------------------
Interest Rate Forward Swaps Unrealized appreciation Unrealized depreciation
on forward swaps* $ 1,182,800 on forward swaps* $ 888,000
==================================================================================================================================
HIGH INCOME OPPORTUNITY 2 (NMD)
LOCATION ON THE STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------------
ASSET DERIVATIVES LIABILITY DERIVATIVES
UNDERLYING DERIVATIVE ------------------------------------- ----------------------------------------------
RISK EXPOSURE INSTRUMENT LOCATION VALUE LOCATION VALUE
----------------------------------------------------------------------------------------------------------------------------------
Interest Rate Forward Swaps Unrealized appreciation
on forward swaps* $ 1,324,800 -- $ --
----------------------------------------------------------------------------------------------------------------------------------
Interest Rate Futures -- -- Deposits with brokers for open 81,784
futures contracts and Payable
for variation margin on futures
contracts**
----------------------------------------------------------------------------------------------------------------------------------
Total $ 1,324,800 $ 81,784
==================================================================================================================================
* Represents cumulative appreciation (depreciation) of swap contracts as
reported in the Portfolio of Investments.
** Value represents cumulative unrealized appreciation (depreciation) of
futures contracts as reported in the Portfolio of Investments and not the
deposits with brokers, if any, or the receivable or payable for variation
margin on futures contracts presented on the Statement of Assets and
Liabilities.
The following tables present the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the fiscal year
ended October 31, 2009, on derivative instruments, as well as the primary risk
exposure associated with each.
PREMIERE
INCOME
NET REALIZED GAIN (LOSS) FROM FORWARD SWAPS (NPF)
-----------------------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ (4,125,000)
=======================================================================================================================
HIGH INCOME HIGH INCOME
OPPORTUNITY OPPORTUNITY 2
NET REALIZED GAIN (LOSS) FROM FUTURES CONTRACTS (NMZ) (NMD)
-----------------------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ (4,745,444) $ (1,952,740)
=======================================================================================================================
PREMIERE HIGH INCOME HIGH INCOME
INCOME OPPORTUNITY OPPORTUNITY 2
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FORWARD SWAPS (NPF) (NMZ) (NMD)
-----------------------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ 3,882,335 $ 294,800 $ 1,324,800
=======================================================================================================================
HIGH INCOME HIGH INCOME
OPPORTUNITY OPPORTUNITY 2
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES CONTRACTS (NMZ) (NMD)
-----------------------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ (1,213,249) $ (551,429)
=======================================================================================================================
Nuveen Investments 99
| Notes to
| Financial Statements (continued)
4. FUND SHARES
Common Shares
Transactions in Common shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) QUALITY INCOME (NQU)
------------------------- ------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- 12,611 11,184 -- --
Repurchased -- -- -- -- -- --
=================================================================================================================================
Weighted average Common share:
Price per share repurchased -- -- -- -- -- --
Discount per share repurchased -- -- -- -- -- --
=================================================================================================================================
HIGH INCOME HIGH INCOME
PREMIER INCOME (NPF) OPPORTUNITY (NMZ) OPPORTUNITY 2 (NMD)
------------------------- ------------------------ ----------------------------
FOR THE
PERIOD 11/15/07
(COMMENCEMENT
OF OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------------
Common shares:
Sold* -- -- -- -- -- 15,750,000
Sold through shelf offering** -- -- 1,900,000 297,054 -- --
Issued to shareholders due to
reinvestment of distributions -- -- 62,054 48,248 174,451 96,739
Repurchased (15,700) (4,500) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
(15,700) (4,500) 1,962,054 345,302 174,451 15,846,739
=================================================================================================================================
Weighted average Common share:
Price per share repurchased 10.51 12.69 -- -- -- --
Discount per share repurchased 17.21% 12.99% -- -- -- --
Premium per shelf offering share sold -- -- 11.92% 4.99% -- --
=================================================================================================================================
* High Income Opportunity 2 (NMD) was the only Fund to sell shares of Common
stock during the fiscal years ended October 31, 2009 and October 31, 2008.
** High Income Opportunity (NMZ) and High Income Opportunity 2 (NMD) are the
only Funds authorized to issue additional shares of its Common stock
through a shelf offering.
Preferred Shares
High Income Opportunity 2 (NMD) has not issued Preferred shares since
commencement of operations on November 15, 2007. Transactions in Preferred
shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
-------------------------------------------- ---------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08
--------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or
noticed for redemption:
Series M 156 $ 3,900,000 594 $ 14,850,000 117 $ 2,925,000 82 $ 2,050,000
Series T 156 3,900,000 594 14,850,000 117 2,925,000 82 2,050,000
Series W 156 3,900,000 595 14,875,000 164 4,100,000 114 2,850,000
Series TH 126 3,150,000 485 12,125,000 91 2,275,000 64 1,600,000
Series F 156 3,900,000 594 14,850,000 163 4,075,000 115 2,875,000
--------------------------------------------------------------------------------------------------------------------------------
Total 750 $ 18,750,000 2,862 $ 71,550,000 652 $ 16,300,000 457 $ 11,425,000
================================================================================================================================
100 Nuveen Investments
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
--------------------------------------------- ---------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08
---------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or
noticed for redemption:
Series M 196 $ 4,900,000 237 $ 5,925,000 -- $ -- 231 $ 5,775,000
Series T 195 4,875,000 236 5,900,000 -- -- 647 16,175,000
Series W 196 4,900,000 236 5,900,000 -- -- -- --
Series W2 136 3,400,000 164 4,100,000 -- -- -- --
Series TH 261 6,525,000 316 7,900,000 -- -- 648 16,200,000
Series F 196 4,900,000 236 5,900,000 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Total 1,180 $ 29,500,000 1,425 $ 35,625,000 -- $ -- 1,526 $ 38,150,000
==========================================================================================================================
HIGH INCOME OPPORTUNITY (NMZ)
---------------------------------------------
YEAR ENDED YEAR ENDED
10/31/09 10/31/08
---------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or
noticed for redemption:
Series M 864 $ 21,600,000 310 $ 7,750,000
Series T 468 11,700,000 145 3,625,000
Series W 468 11,700,000 145 3,625,000
--------------------------------------------------------------------------------------------------------------------------------
Total 1,800 $ 45,000,000 600 $ 15,000,000
================================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended October 31, 2009, were
as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
-----------------------------------------------------------------------------------------------------------------------------------
Purchases $ 72,943,203 $ 56,888,488 $ 98,638,198 $ 30,011,606 $ 92,741,796 $ 79,985,933
Sales and maturities 59,310,793 76,086,298 130,598,787 32,840,579 136,261,028 98,020,087
===================================================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts 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 October 31, 2009, the cost of investments was as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
-----------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 696,605,583 $ 711,263,556 $ 1,120,923,962 $ 389,952,202 $ 401,150,974 $ 224,471,301
===================================================================================================================================
Nuveen Investments 101
| Notes to
| Financial Statements (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2009, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
-------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 40,473,637 $ 33,089,197 $ 65,507,800 $ 20,772,336 $ 25,260,676 $ 7,986,500
Depreciation (32,561,891) (31,992,224) (46,703,761) (15,725,435) (49,517,035) (30,619,545)
-------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of
investments $ 7,911,746 $ 1,096,973 $ 18,804,039 $ 5,046,901 $ (24,256,359) $ (22,633,045)
===============================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2009, the Funds' tax year end,
were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
-------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt
income * $ 7,653,863 $ 7,736,348 $ 12,160,734 $ 3,674,261 $ 2,380,245 $ 1,791,876
Undistributed net ordinary
income ** 5,782 818 85,425 -- 113,393 60,076
Undistributed net long-term
capital gains -- 555,014 -- -- -- --
===============================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2009, paid on November 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended
October 31, 2009 and October 31, 2008 was designated for purposes of the
dividends paid deduction as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
2009 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
-------------------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income *** $ 28,837,685 $ 30,740,421 $ 46,239,909 $ 15,422,213 $ 25,228,758 $ 15,300,039
Distributions from net
ordinary income ** 104,651 -- -- -- 1,107,374 --
Distributions from net
long-term capital
gains **** 1,470,419 -- -- -- -- --
===============================================================================================================================
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
2008 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)*****
-------------------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $ 37,735,721 $ 37,664,043 $ 55,938,511 $ 19,090,394 $ 28,742,490 $ 11,191,457
Distributions from net
ordinary income ** 202,710 -- -- -- 87,468 --
Distributions from net
long-term capital gains -- -- -- -- 2,667,895 --
===============================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
October 31, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended October 31, 2009.
***** For the period November 15, 2007 (commencement of operations) through
October 31, 2008.
At October 31, 2009, the Funds' tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
INVESTMENT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQU) (NPF) (NMZ) (NMD)
----------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2011 $ -- $ 7,997,041 $ -- $ -- $ --
October 31, 2013 -- -- 156,322 -- --
October 31, 2016 -- -- 3,445,683 12,880,924 4,564,842
October 31, 2017 1,915,769 -- 4,764,079 34,412,364 28,536,506
----------------------------------------------------------------------------------------------------------
Total $ 1,915,769 $ 7,997,041 $ 8,366,084 $ 47,293,288 $ 33,101,348
==========================================================================================================
102 Nuveen Investments
7. 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.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
QUALITY INCOME (NQU)
PREMIER INCOME (NPF)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
HIGH INCOME OPPORTUNITY (NMZ)
HIGH INCOME OPPORTUNITY FUND 2 (NMD)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For net assets over $2 billion .4750
================================================================================
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 net assets managed as stated in the following
table. As of October 31, 2009, the complex-level fee rate was .1907%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET 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
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets includes assets managed by the
Adviser that are attributable to each fund's use of financial leverage.
For these purposes, financial leverage includes the funds use of preferred
stock and borrowings and investments in the residual interest certificates
(also called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
Nuveen Investments 103
| Notes to
| Financial Statements (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first eight years of High Income Opportunity's (NMZ) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets for fees and expenses in the amounts, and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2003* .32% 2009 .24%
2004 .32 2010 .16
2005 .32 2011 .08
2006 .32
2007 .32
2008 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse High Income Opportunity (NMZ) for any
portion of its fees and expenses beyond November 30, 2011.
During the fiscal year ended October 31, 2009, Nuveen Investments, LLC received
commissions of $124,869 related to the sale of Common shares as a result of the
High Income Opportunity (NMZ) shelf offering.
8. NEW ACCOUNTING STANDARDS
Accounting for Transfers of Financial Assets
During June 2009, the FASB issued changes to the authoritative guidance under
GAAP on accounting for transfers of financial assets. The objective of this
guidance is to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and a
transferor's continuing involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
9. BORROWINGS
During January 2008, credit issues associated with sub-prime mortgages and
municipal bond insurers caused High Income Opportunity 2 (NMD) to postpone its
auction rate preferred shares offering, and subsequent failed auctions of the
auction rate preferred shares issued by other closed-end funds have postponed
the issuance of the Fund's auction rate preferred shares indefinitely.
Management determined that leveraging the Fund with debt as a replacement for
the auction rate preferred shares continued to benefit the Fund's shareholders.
As a result, the Fund entered into a $50 million senior committed secured
364-day revolving line of credit with its custodian bank. During the current
fiscal period, the Fund extended the maturity date of its line of credit to July
29, 2010. Amounts drawn on the line of credit are recognized as "Borrowings" on
the Statement of Assets and Liabilities.
During the fiscal year ended October 31, 2009, the average daily balance
outstanding on the line of credit and average annual interest rate were
$37,296,443 and 1.00%, respectively. Interest on the line of credit is
calculated at a rate per annum of the Federal Funds Rate plus .75%. Interest
expense incurred on the line of credit is included as a component of "Interest
expense" on the Statement of Operations. In addition interest expense, the Fund
accrued a commitment fee of .15% per annum on the unused portion of the line of
credit which is included as a component of "Other" expenses on the Statement of
Operations.
104 Nuveen Investments
10. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2009, to shareholders of record
on November 15, 2009, as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
--------------------------------------------------------------------------------------------
Dividend per share $ .0700 $ .0750 $ .0720 $ .0660 $ .0835 $ .0800
============================================================================================
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under GAAP for
subsequent events. This guidance requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. This guidance is intended to establish general standards of accounting
and for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. This guidance
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. This guidance is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through December 28, 2009, which is the date the financial statements were
issued.
Nuveen Investments 105
| Financial
| Highlights
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
BEGINNING FROM NET FROM
COMMON NET INVESTMENT CAPITAL
SHARE NET REALIZED/ INCOME TO GAINS TO
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
--------------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 12.18 $ 1.02 $ 1.91 $ (.04) $ (.01) $ 2.88
2008 15.03 1.01 (2.80) (.29) -- (2.08)
2007 15.71 1.02 (.60) (.30) -- .12
2006 15.49 1.05 .42 (.24) (.03) 1.20
2005 16.06 1.05 (.39) (.16) (.01) .49
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 12.01 1.12 1.92 (.06) -- 2.98
2008 15.05 1.08 (3.02) (.30) -- (2.24)
2007 15.62 1.07 (.52) (.29) -- .26
2006 15.46 1.07 .23 (.26) -- 1.04
2005 15.69 1.06 (.16) (.16) -- .74
========================================================================================================
LESS DISTRIBUTIONS
------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
--------------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ (.77) $ (.03) $ (.80) $ -- $ 14.26 $ 13.13
2008 (.77) -- (.77) -- 12.18 10.64
2007 (.80) -- (.80) -- 15.03 13.88
2006 (.84) (.14) (.98) -- 15.71 15.60
2005 (.96) (.10) (1.06) -- 15.49 14.45
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 (.85) -- (.85) -- 14.14 13.77
2008 (.80) -- (.80) -- 12.01 10.99
2007 (.83) -- (.83) -- 15.05 15.00
2006 (.88) -- (.88) -- 15.62 15.47
2005 (.97) -- (.97) -- 15.46 14.83
========================================================================================================
PREFERRED SHARES AT END OF PERIOD
----------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 210,700 $ 25,000 $ 85,621
2008 229,450 25,000 72,545
2007 301,000 25,000 69,706
2006 301,000 25,000 71,634
2005 301,000 25,000 71,001
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------
Year Ended 10/31:
2009 251,275 25,000 72,879
2008 267,575 25,000 63,171
2007 279,000 25,000 70,849
2006 279,000 25,000 72,491
2005 279,000 25,000 71,953
====================================================================================
106 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT/REFUND
------------------ ---------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 31.77% 24.35% $ 510,910 1.34% 1.17% 7.66% 8%
2008 (18.72) (14.43) 436,370 1.46 1.20 7.07 9
2007 (6.17) .82 538,266 1.35 1.19 6.67 11
2006 15.33 8.09 561,471 1.20 1.20 6.79 10
2005 1.17 3.10 553,857 1.20 1.20 6.59 22
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 34.19 25.67 481,233 1.29 1.25 8.66 8
2008 (22.19) (15.50) 408,541 1.27 1.22 7.54 10
2007 2.31 1.70 511,670 1.21 1.18 6.95 8
2006 10.47 6.94 529,996 1.18 1.18 6.91 5
2005 4.14 4.77 523,994 1.18 1.18 6.76 4
========================================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 107
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
BEGINNING FROM NET FROM
COMMON NET INVESTMENT CAPITAL
SHARE NET REALIZED/ INCOME TO GAINS TO
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
-----------------------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 12.68 $ 1.05 $ 1.42 $ (.06) $ -- $ 2.41
2008 14.94 1.03 (2.26) (.30) -- (1.53)
2007 15.49 1.01 (.51) (.30) -- .20
2006 15.26 1.01 .30 (.26) -- 1.05
2005 15.54 1.02 (.22) (.16) -- .64
PREMIER INCOME (NPF)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 11.68 .96 2.00 (.05) -- 2.91
2008 14.79 .94 (3.09) (.28) -- (2.43)
2007 15.39 .95 (.59) (.29) -- .07
2006 14.90 .94 .51 (.26) -- 1.19
2005 15.53 .94 (.39) (.16) (.01) .38
===========================================================================================================
LESS DISTRIBUTIONS
------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
-----------------------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ (.80) $ -- $ (.80) $ -- $ 14.29 $ 13.26
2008 (.73) -- (.73) -- 12.68 11.67
2007 (.75) -- (.75) -- 14.94 13.64
2006 (.82) -- (.82) -- 15.49 14.73
2005 (.92) -- (.92) -- 15.26 14.34
PREMIER INCOME (NPF)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 (.73) -- (.73) -- 13.86 12.40
2008 (.68) -- (.68) -- 11.68 10.07
2007 (.67) -- (.67) -- 14.79 13.30
2006 (.70) -- (.70) -- 15.39 13.65
2005 (.88) (.13) (1.01) -- 14.90 13.57
===========================================================================================================
PREFERRED SHARES AT END OF PERIOD
---------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
-------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
-------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 386,875 $ 25,000 $ 75,080
2008 416,375 25,000 66,284
2007 452,000 25,000 69,806
2006 452,000 25,000 71,446
2005 452,000 25,000 70,745
PREMIER INCOME (NPF)
-------------------------------------------------------------------------------------
Year Ended 10/31:
2009 126,850 25,000 79,330
2008 126,850 25,000 70,825
2007 165,000 25,000 69,603
2006 165,000 25,000 71,839
2005 165,000 25,000 70,367
=====================================================================================
108 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------- ---------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++ INCOME++ RATE
---------------------------------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 21.10% 19.58% $ 774,982 1.28% 1.20% 7.80% 8%
2008 (9.55) (10.67) 687,593 1.38 1.19 7.15 9
2007 (2.54) 1.31 810,086 1.38 1.17 6.65 5
2006 8.55 7.07 839,751 1.18 1.18 6.62 11
2005 4.78 4.15 827,077 1.18 1.18 6.57 6
PREMIER INCOME (NPF)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 31.11 25.53 275,671 1.43 1.21 7.47 7
2008 (19.97) (17.03) 232,517 1.78 1.23 6.74 7
2007 2.28 .48 294,378 1.84 1.20 6.30 10
2006 5.93 8.20 309,140 1.24 1.24 6.27 35
2005 1.05 2.49 299,423 1.23 1.23 6.16 20
=====================================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 109
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
BEGINNING FROM NET FROM
COMMON NET INVESTMENT CAPITAL
SHARE NET REALIZED/ INCOME TO GAINS TO
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
---------------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 9.63 $ 1.06 $ 1.57 $ (.04) $ -- $ 2.59
2008 15.36 1.29 (5.70) (.23) (.02) (4.66)
2007 16.00 1.23 (.65) (.24) --*** .34
2006 15.36 1.21 .65 (.19) -- 1.67
2005 14.87 1.22 .54 (.13) (.01) 1.62
HIGH INCOME OPPORTUNITY 2 (NMD)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 9.13 .92 1.79 N/A N/A 2.71
2008(c) 14.33 .89 (5.27) N/A N/A (4.38)
=====================================================================================================================
LESS DISTRIBUTIONS
-------------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
--------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
--------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ (1.04) $ -- $ (1.04) $ --*** $ 11.18 $ 11.92
2008 (.98) (.09) (1.07) --*** 9.63 11.02
2007 (.98) --*** (.98) -- 15.36 15.82
2006 (1.04) -- (1.04) .01 16.00 17.25
2005 (1.07) (.06) (1.13) -- 15.36 15.99
HIGH INCOME OPPORTUNITY 2 (NMD)
--------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 (.96) -- (.96) -- 10.88 11.39
2008(c) (.79) -- (.79) (.03) 9.13 10.04
==============================================================================================================
BORROWINGS AT
PREFERRED SHARES AT END OF PERIOD END OF PERIOD
------------------------------------- ------------------------
AGGREGATE LIQUIDATION AGGREGATE
AMOUNT AND MARKET ASSET AMOUNT ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING COVERAGE
(000) PER SHARE PER SHARE (000) PER $1,000
-------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 95,000 $ 25,000 $ 101,043 $ -- $ --
2008 155,000 25,000 62,117 -- --
2007 155,000 25,000 83,304 -- --
2006 155,000 25,000 85,113 -- --
2005 155,000 25,000 82,585 -- --
HIGH INCOME OPPORTUNITY 2 (NMD)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 N/A N/A N/A 35,000 5,982
2008(c) N/A N/A N/A 40,000 4,619
=================================================================================================
110 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------- ----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a)(b) INTEREST++ INCOME++
----------------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 20.00% 30.90% $ 288,963 1.53% 1.50% 10.88%
2008 (24.77) (32.63) 230,123 1.56 1.36 8.95
2007 (2.68) 2.14 361,484 1.50 1.28 7.31
2006 14.79 11.34 372,700 1.21 1.21 7.31
2005 14.35 11.20 357,025 1.20 1.20 7.54
HIGH INCOME OPPORTUNITY 2 (NMD)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 25.45 32.43 174,353 1.50 1.24 10.07
2008(c) (28.82) (32.15) 144,745 1.19**** .89**** 6.69****
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
--------------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a)(b) INTEREST++ INCOME++ RATE
-------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 1.17% 1.14% 11.24% 28%
2008 1.08 .88 9.43 23
2007 1.05 .83 7.76 12
2006 .75 .75 7.77 9
2005 .74 .74 8.00 6
HIGH INCOME OPPORTUNITY 2 (NMD)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 1.50 1.24 10.07 45
2008(c) .82**** .89**** 7.06**** 22
===========================================================================================
N/A High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through October 31,
2009.
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on 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 expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares and
Borrowings, where applicable.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
(b) Each Ratio of Expenses Including Interest to Average Net Assets Applicable
to Common Shares for High Income Opportunity 2 (NMD) includes the effect
of the interest expense paid on Fund borrowings, as described in Footnote
9 - Borrowings as follows:
Ratios of Borrowings Interest Expense to
Average Net Assets Applicable to Common Shares
--------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY 2 (NMD)
--------------------------------------------------------------------------------
Year Ended 10/31:
2009 .26%
2008(c) .30****
================================================================================
(c) For the period November 15, 2007 (commencement of operations) through
October 31, 2008.
See accompanying notes to financial statements.
Nuveen Investments 111
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED AND OVERSEEN BY BOARD DIRECTORSHIPS
& ADDRESS WITH THE FUNDS TERM(1) MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management
8/22/40 Chairman of 1997 198 Consultant; Treasurer and Director,
333 W. Wacker Drive the Board Humanities Council of Washington D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation,
10/22/48 a private philanthropic corporation
333 W. Wacker Drive Board Member 1999 198 (since 1996); Director and Chairman,
Chicago, IL 60606 United Fire Group, a publicly held
company; President Pro Tem of the Board
of Regents for the State of Iowa
University System; Director, Gazette
Companies; Life Trustee of Coe College
and the Iowa College Foundation;
formerly, Director, Alliant Energy;
formerly, Director, Federal Reserve Bank
of Chicago; formerly, President and
Chief Operating Officer, SCI Financial
Group, Inc., a regional financial
services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business,
3/6/48 University of Iowa (since 2006);
333 W. Wacker Drive Board Member 2004 198 Director (since 2004) of Xerox
Chicago, IL 60606 Corporation; Director (since 2005), Beta
Gamma Sigma International Honor Society;
formerly, Dean and Distinguished
Professor of Finance, School of Business
at the University of Connecticut
(2003-2006); previously, Senior Vice
President and Director of Research at
the Federal Reserve Bank of Chicago
(1995-2003); Director, SS&C
Technologies, Inc. (May 2005-October
2005); formerly, Director (1997-2007),
Credit Research Center at Georgetown
University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; retired (since 2004)
333 W. Wacker Drive Board Member 2005 198 as Chairman, JPMorgan Fleming Asset
Chicago, IL 60606 Management, President and CEO, Banc One
Investment Advisors Corporation, and
President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc
One Corporation and Chairman and CEO,
Banc One Investment Management Group;
Member, Board of Regents, Luther
College; member of the Wisconsin Bar
Association; member of Board of
Directors, Friends of Boerner Botanical
Gardens; member of Investment Committee,
Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners
9/24/44 Ltd., a real estate investment company;
333 W. Wacker Drive Board Member 1997 198 formerly, Senior Partner and Chief
Chicago, IL 60606 Operating Officer (retired, 2004) of
Miller-Valentine Group; member,
University of Dayton Business School
Advisory Council; member, Dayton
Philharmonic Orchestra Association;
formerly, member, Business Advisory
Council, Cleveland Federal Reserve Bank;
formerly, Director, Dayton Development
Coalition.
112 Nuveen Investments
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED AND OVERSEEN BY BOARD DIRECTORSHIPS
& ADDRESS WITH THE FUNDS TERM(1) MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 198 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Director, C2 Options
333 W. Wacker Drive Board Member 2007 198 Exchange, Incorporated (since 2009);
Chicago, IL 60606 Commissioner, New York State Commission
on Public Authority Reform (since 2005);
formerly, Chair, New York Racing
Association Oversight Board (2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment
9/29/59 Management America, Inc. (since 2008);
333 W. Wacker Drive Board Member 2008 198 Managing Partner, Musso Capital
Chicago, IL 60606 Management (since 2008); formerly, CEO
and President, Northern Trust
Investments (2004-2007); Executive Vice
President, Quantitative Management &
Securities Lending (2004-2007); prior
thereto, various positions with Northern
Trust Company (since 1994); Member:
Goodman Theatre Board (since 2004),
Chicago Fellowship Boards (since 2005),
University of Illinois Leadership
Council Board (since 2007) and Catalyst
Schools of Chicago Board (since 2008);
formerly, Member: Northern Trust Mutual
Funds Board (2005-2007), Northern Trust
Investments Board (2004-2007), Northern
Trust Japan Board (2004-2007), Northern
Trust Securities Inc. Board (2003-2007)
and Northern Trust Hong Kong Board
(1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July
6/14/61 2007) and Director (since 1999) of
333 W. Wacker Drive Board Member 2008 198 Nuveen Investments, Inc.; Chief
Chicago, IL 60606 Executive Officer (since 2007) of Nuveen
Asset Management, Nuveen Investments
Advisors, Inc. formerly, President
(1999-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3)
Nuveen Investments 113
Board Members & Officers (continued)
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002),
9/9/56 Chief Assistant Secretary and Associate
333 W. Wacker Drive Administrative 1988 198 General Counsel of Nuveen Investments,
Chicago, IL 60606 Officer LLC; Managing Director, Associate
General Counsel and Assistant Secretary,
of Nuveen Asset Management (since 2002)
and of Symphony Asset Management LLC,
(since 2003); Vice President and
Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002),
Nuveen Investments Advisers Inc. (since
2002), Tradewinds Global Investors, LLC,
and Santa Barbara Asset Management, LLC
(since 2006), Nuveen HydePark Group LLC
and Nuveen Investment Solutions, Inc.
(since 2007); Managing Director (since
2004) and Assistant Secretary (since
1994) of Nuveen Investments, Inc.;
formerly, Managing Director (2002-2004),
General Counsel (1998-2004) and
Assistant Secretary of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3); Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice
333 W. Wacker Drive Vice President 2007 123 President, U.S. Structured Products of
Chicago, IL 60606 Nuveen Investments, LLC, (since 1999),
prior thereto, Managing Director of
Structured Investments.
o MARK J.P. ANSON President and Executive Director of
6/10/59 Nuveen Investments, Inc. (since 2007);
333 W. Wacker Drive Vice President 2009 198 President of Nuveen Investments
Chicago, IL 60606 Institutional Services Group LLC (since
2007); previously, Chief Executive
Officer of the British Telecom Pension
Scheme (2006-2007) and Chief Investment
Officer of Calpers (1999-2006); PhD,
Chartered Financial Analyst, Chartered
Alternative Investment Analyst,
Certified Public Accountant, Certified
Management Accountant and Certified
Internal Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004),
1/11/62 previously, Vice President (1993-2004)
333 W. Wacker Drive Vice President 2007 123 of Nuveen Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen
6/1/68 Investments, LLC; previously, Portfolio
333 W. Wacker Drive Vice President 2009 198 Manager, Allstate Investments, LLC
Chicago, IL 60606 (1996-2006); Chartered Financial
Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Investments, LLC.; Vice President of
333 W. Wacker Drive Vice President 2000 198 Nuveen Asset Management (since 2005).
Chicago, IL 60606 and Assistant
Secretary
o MARGO L. COOK Executive Vice President (since Oct
4/11/64 2008) of Nuveen Investments, Inc.;
333 W. Wacker Drive Vice President 2009 198 previously, Head of Institutional Asset
Chicago, IL 60606 Management (2007-2008) of Bear Stearns
Asset Management; Head of Institutional
Asset Mgt (1986-2007) of Bank of NY
Mellon; Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 Investments, LLC; Managing Director
333 W. Wacker Drive Vice President 1998 198 (since 2005) of Nuveen Asset Management;
Chicago, IL 60606 Managing Director (2004-2005), of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
114 Nuveen Investments
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Controller (since 1998) of Nuveen
333 W. Wacker Drive Vice President 1998 198 Investments, LLC; Vice President (since
Chicago, IL 60606 and Controller 2005) of Nuveen Asset Management;
Certified Public Accountant.
o SCOTT S. GRACE Managing Director, Corporate Finance &
8/20/70 Development, Treasurer (since September
333 West Wacker Drive Vice President 2009 198 2009) of Nuveen Investments, LLC,
Chicago, IL 60606 and Treasurer formerly, Treasurer (2006-2009), Senior
Vice President (2008-2009), previously,
Vice President (2006-2008) of Janus
Capital Group, Inc.; formerly. Senior
Associate in Morgan Stanley's Global
Financial Services Group (2000-2003);
Chartered Accountant Designation.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed
5/7/69 Income (since 2008) of Nuveen Asset
333 W. Wacker Drive Vice President 2009 134 Management; previously, Chairman,
Chicago, IL 60606 President and Chief Executive Officer
(2002 - 2007) of Northern Trust Global
Advisors, Inc. and Chief Executive
Officer (2007) of Northern Trust Global
Investments Limited; Certified Public
Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 President (2006-2008) formerly,
333 W. Wacker Drive Chief Compliance 2003 198 Assistant Vice President and Assistant
Chicago, IL 60606 Officer and General Counsel (2003-2006) of Nuveen
Vice President Investments, LLC; Vice President (since
2006) and Assistant Secretary (since
2008) of Nuveen Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009),
3/22/63 formerly, Vice President (2000-2009) of
333 W. Wacker Drive Vice President 2000 198 Nuveen Investments, LLC; Vice President
Chicago, IL 60606 (since 2005) of Nuveen Asset Management;
Certified Public Accountant.
o TINA M. LAZAR Senior Vice President (since 2009),
8/27/61 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 2002 198 Investments, LLC (1999-2009); Vice
Chicago, IL 60606 President of Nuveen Asset Management
(since 2005).
o LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Assistant General Counsel of Nuveen
333 W. Wacker Drive Vice President 1988 198 Investments, LLC; Vice President (since
Chicago, IL 60606 and Assistant 2005) and Assistant Secretary of Nuveen
Secretary Investments, Inc.; Vice President (since
2005) and Assistant Secretary (since
1997) of Nuveen Asset Management; Vice
President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since
2002); NWQ Investment Management
Company, LLC (since 2002), Symphony
Asset Management LLC (since 2003),
Tradewinds Global Investors, LLC, Santa
Barbara Asset Management LLC (since
2006) and of Nuveen HydePark Group, LLC
and Nuveen Investment Solutions, Inc.
(since 2007); formerly, Vice President
and Assistant Secretary of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008),
3/26/66 formerly, Vice President (2007-2008),
333 W. Wacker Drive Vice President 2007 198 Nuveen Investments, LLC; Managing
Chicago, IL 60606 and Secretary Director (since 2008), formerly, Vice
President, and Assistant Secretary,
Nuveen Asset Management, and Nuveen
Investments Holdings, Inc.; Vice
President (since 2007) and Assistant
Secretary, Nuveen Investment Advisers
Inc., Nuveen Investment Institutional
Services Group LLC, NWQ Investment
Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings, LLC,
Symphony Asset Management LLC, Santa
Barbara Asset Management LLC, Nuveen
HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since 2007);
prior thereto, Partner, Bell, Boyd &
Lloyd LLP (1997- 2007).
Nuveen Investments 115
Board Members & Officers (continued)
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Chief Investment Officer and Managing
4/10/67 Director (since 2007), formerly, Vice
333 W. Wacker Drive Vice President 2007 134 President (2002-2007) of Nuveen Asset
Chicago, IL 60606 Management and Managing Director (since
2007), formerly Vice President
(2002-2007) Nuveen Investments, LLC;
Chartered Financial Analyst.
o GREGORY MINO Vice President of Nuveen Investments,
1/4/71 LLC (since 2008); previously, Director
333 W. Wacker Drive Vice President 2009 198 (2004-2007) and Executive Director
Chicago, IL 60606 (2007-2008) of UBS Global Asset
Management; previously, Vice President
(2000-2003) and Director (2003-2004) of
Merrill Lynch Investment Managers;
Chartered Financial Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC
8/1/71 Vice President 2008 198 (since 2008); Vice President and
333 W. Wacker Drive and Assistant Assistant Secretary, Nuveen Asset
Chicago, IL 60606 Secretary Management (since 2008); prior thereto,
Associate, Skadden, Arps, Slate Meagher
& Flom LLP (2002-2008).
o JAMES F. RUANE Vice President 2007 198 Vice President, Nuveen Investments, LLC
7/3/62 and Assistant (since 2007); prior thereto, Partner,
333 W. Wacker Drive Secretary Deloitte & Touche USA LLP (2005-2007),
Chicago, IL 60606 formerly, senior tax manager
(2002-2005); Certified Public
Accountant.
o MARK L. WINGET Vice President 2008 198 Vice President, Nuveen Investments, LLC
12/21/68 and Assistant (since 2008); Vice President and
333 W. Wacker Drive Secretary Assistant Secretary, Nuveen Asset
Chicago, IL 60606 Management (since 2008); prior thereto,
Counsel, Vedder Price P.C. (1997-2007).
(1) For High Income Opportunity (NMZ), Board Members serve three year terms,
except for two board members who are elected by the holders of Preferred
Shares. The Board of Trustees for NMZ is divided into three classes, Class
I, Class II, and Class III, with each being elected to serve until the
third succeeding annual shareholders' meeting subsequent to its election
or thereafter in each case when its respective successors are duly elected
or appointed, except two board members are elected by the holders of
Preferred Shares to serve until the next annual shareholders' meeting
subsequent to its election or thereafter in each case when its respective
successors are duly elected or appointed. For High Income Opportunity 2
(NMD), Board Members serve three year terms. The Board of Trustees for NMD
is divided into three classes, Class I, Class II, and Class III, with each
being elected to serve until the third succeeding annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed. For Investment
Quality (NQM), Select Quality (NQS), Quality Income (NQU) and Premier
Income (NPF), the Board Members serve a one year term to serve until the
next annual meeting or until their successors shall have been duly elected
and qualified. The first year elected or appointed represents the year in
which the board member was first elected or appointed to any fund in the
Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
116 Nuveen Investments
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("Winslow Capital"), which was recently
acquired in December 2008), and other information regarding the organization,
personnel, and services provided by NAM. The Independent Board Members also met
quarterly as well as at other times as the need arose during the year and took
into account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided by independent legal counsel and relied upon their
knowledge of NAM, its services and the Funds resulting from their meetings and
other interactions throughout the year and their own business judgment in
determining the factors to be considered in evaluating
Nuveen Investments 117
Annual Investment Management Agreement Approval Process (continued)
the Advisory Agreements. Each Board Member may have accorded different weight to
the various factors in reaching his or her conclusions with respect to a Fund's
Advisory Agreement. The Independent Board Members did not identify any single
factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refi-nancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a
118 Nuveen Investments
variety of programs designed to raise investor and analyst awareness and
understanding of closed-end funds. These efforts include maintaining an investor
relations program to provide timely information and education to financial
advisers and investors; providing advertising and marketing for the closed-end
funds; maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of 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 provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile
Nuveen Investments 119
Annual Investment Management Agreement Approval Process (continued)
market conditions during the past year, and their impact on various asset
classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory, except as noted. With respect to the Nuveen
Municipal High Income Opportunity Fund and the Nuveen Municipal High Income
Opportunity Fund 2, based on their review and factoring in the severity of
market turmoil in 2008, the Independent Board Members were satisfied with the
steps taken to address performance issues during extraordinary times.
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "Peer
Universe") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members considered, among other things, the differences
in the use and type of leverage compared to the peers. In reviewing the
fee schedule for a Fund, the Independent Board Members also considered the
fund-level and complex-wide breakpoint schedules (described in further
detail below) and any fee waivers and reimbursements provided by Nuveen
(applicable, in particular, for certain closed-end funds launched since
1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved
120 Nuveen Investments
and the additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
Nuveen Investments 121
Annual Investment Management Agreement Approval Process (continued)
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM 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 NAM may receive as
a result of its relationship with the Funds. Based on their review of the
overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
122 Nuveen Investments
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
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 NAM in managing the assets of the Funds and other clients. The
Independent 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.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 123
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
124 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. 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.
Nuveen Investments 125
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed," with current holders receiving a
formula-based interest rate until the next scheduled auction.
o 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.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate
(sometimes referred to as an "inverse floater") to an investor (such as a
Fund) interested in gaining investment exposure to a long-term municipal
bond. The income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate certificates'
holders, and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying
126 Nuveen Investments
bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 127
Notes
128 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common
or preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON PREFERRED
SHARES SHARES
FUND REPURCHASED REDEEMED
NQM -- 750
NQS -- 652
NQU -- 1,180
NPF 15,700 --
NMZ -- 1,800
NMD -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 129
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.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
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.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
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Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606 It's not what you earn,
www.nuveen.com it's what you keep.(R)
EAN-C-1009D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Municipal High Income Opportunity Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
-------------------------------------------------------------------------------------------------------------------------------
October 31, 2009 $ 17,763 $ 0 $ 0 $ 850
-------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 22,537 $ 0 $ 0 $ 800
-------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2009 $ 850 $ 0 $ 0 $ 850
October 31, 2008 $ 800 $ 0 $ 0 $ 800
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund in their respective amounts from the
previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
JOHN V. MILLER Nuveen Municipal High Income Opportunity Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
managers are also primarily responsible for the day-to-day portfolio management
of the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
John V. Miller Registered Investment Company 2 $4.737 billion
Other Pooled Investment Vehicles 1 $99 million
Other Accounts 9 $1.5 million
* Assets are as of October 31, 2009. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of October 31, 2009, the S&P/Investortools Municipal Bond index was
comprised of 54,552 securities with an aggregate current market value of $1,178
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event. In
addition, in July 2009, Nuveen Investments created and funded a trust, as part
of a newly-established incentive program, which purchased shares of certain
Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain
employees, including portfolio managers.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of October 31, 2009, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED IN
EQUITY THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
NAME OF PORTFOLIO BENEFICIALLY BY NAM'S MUNICIPAL
MANAGER FUND OWNED IN FUND INVESTMENT TEAM
------------------------------------------------------------------------------------------------------------------
John V. Miller Nuveen Municipal High Income Opportunity Fund $10,001-$50,000 $100,001-$500,000
PORTFOLIO MANAGER BIOGRAPHY:
John V. Miller, CFA, joined Nuveen's investment management team as a credit
analyst in 1996, with three prior years of experience in the municipal market
with C.W. Henderson & Assoc., a municipal bond manager for private accounts. He
has a BA in Economics and Political Science from Duke University, and an MA in
Economics from Northwestern University and an MBA with honors in Finance from
the University of Chicago. He has been responsible for analysis of high yield
credits in the utility, solid waste and energy related sectors. He has been the
Chief Investment Officer and a Managing Director of Nuveen Asset Management
(since 2007). He manages investments for three Nuveen-sponsored investment
companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(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. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(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 Municipal High Income Opportunity Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: January 6, 2010
-------------------------------------------------------------------
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: January 6, 2010
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 6, 2010
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