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 811-09135
---------------------
Nuveen New York Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: September 30
------------------
Date of reporting period: September 30, 2005
------------------
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.
ANNUAL REPORT September 30, 2005
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
NUVEEN NEW YORK MUNICIPAL VALUE FUND, INC.
NNY
NUVEEN NEW YORK PERFORMANCE PLUS MUNICIPAL FUND, INC.
NNP
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND
NAN
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NXK
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the 12-month period covered by this
report your Fund continued to provide you with tax-free monthly income, as well
as with an attractive total return. For more details about the management
strategy and performance of your Fund, please see the Portfolio Manager's
Comments and Performance Overview sections of this report.
Given the rebounding strength of the economy, some market commentators are
speculating about whether longer-term interest rates will soon begin to rise
substantially, mirroring the rise that has taken place in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin adjusting your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future or what investments will turn
out to be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. In fact, a well-diversified portfolio
may actually help to reduce your overall investment risk over the long term.
That is one reason why we believe that a municipal bond investment like your
Fund can be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
As an added convenience for you, I urge you to consider receiving future Fund
reports and other Fund information by e-mail and the Internet. Not only will you
be able to receive the information faster, but this also may help lower your
Fund's expenses. Sign up is quick and easy - see the inside front cover of this
report for instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares to Nuveen Investments or to others. Please be assured that
these transactions only affect Nuveen's corporate structure, and they do not
have any impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 15, 2005
Nuveen New York Municipal Exchange-Traded Closed-End Funds
(NNY, NNP, NAN, NXK)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan discusses the economic and municipal market
environments, key investment strategies and the performance of these four New
York Funds. Paul has 14 years of investment experience, including 8 years with
Nuveen. He has managed NNY, NNP and NAN since 1999 and NXK since its inception
in 2001.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED SEPTEMBER 30, 2005?
Between October 1, 2004, and September 30, 2005, the Federal Reserve implemented
eight separate 0.25% increases in the closely-followed fed funds rate. These
actions, which were aimed at controlling economic growth as well as the pace of
inflation, raised this short-term target from 1.75% to 3.75%, its highest point
since August 2001. Most shorter-term municipal market rates also rose over this
period.
By comparison, longer-term interest rates rose at a much more modest pace. The
yield on the benchmark 10-year U.S. Treasury note ended September 2005 at 4.33%,
compared with 4.12% one year earlier. Longer-term yields in the municipal market
followed a similar pattern. The yield on the Bond Buyer 25 Revenue Bond Index, a
widely followed measure of longer-term municipal market rates, ended the
reporting period at 5.04%, just two basis points higher than it was on September
30, 2004. Together, the dramatic rise in shorter-term rates and the modest
increase in longer-term rates produced an overall flattening of the yield curve,
which generally helped the relative performance of bonds with longer effective
maturities while hindering the total return of bonds with shorter maturities or
short call dates. (The yield curve is said to flatten when shorter-term interest
rates more closely approach the normally higher levels of longer-term interest
rates.)
Despite the Fed's rate hikes and a tremendous surge in energy prices, the
general economic expansion managed to maintain a fairly solid footing over this
reporting period. As one measure, the U.S. gross domestic product (GDP) grew by
3.3% annualized in the fourth quarter of 2004 and by annualized rates of 3.8%
and 3.3% in the first and second quarters of 2005, respectively. (Third quarter
GDP growth was not available at the time this report was prepared.)
4
The volatility of the energy sector during this period was reflected in the 1.2%
jump in the Consumer Price Index (CPI) during September 2005, the largest
monthly increase in 23 years. As of September 2005, the year-over-year increase
in the CPI was 4.7%, the fastest annual pace since 1991. The employment picture
remained relatively positive, with national unemployment standing at 5.1% in
September 2005, down from 5.4% in September 2004.
Over the 12 months ended September 2005, municipal bond supply nationwide
remained strong, as $402.4 billion in new securities came to market. During the
first nine months of 2005, municipal issuance totaled $309.5 billion in 10,400
issues, up 15% from the same period in 2004, putting 2005's new supply on track
to exceed 2003's record $382.7 billion. A major factor behind the increase in
supply was the flatter yield curve, which made advance refundings more
economically attractive. During January-September 2005, refundings were 55%
higher than during the same period in 2004, as issuers sought to take advantage
of the current interest rate environment. (Advance refundings, also called
pre-refundings, occur when an issuer sells new bonds and uses the proceeds to
fund principal and interest payments of older, existing bonds. This process
often results in lower borrowing costs for bond issuers.)
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN NEW YORK?
During this 12-month period, New York continued its economic recovery, led by
growth in financial services, healthcare, education and tourism. Although more
diversified than 10 years ago, the state's economy still remains highly
dependent on the financial services sector, which makes it more susceptible to
economic cycles. On the positive side, tourism has largely returned to
pre-September 11, 2001, levels. However, manufacturing employment continued to
decline, especially in upstate New York. As of September 2005, unemployment in
New York stood at 5.2%, down from 5.6% in September 2004.
As of September 2005, New York State general obligation bonds were rated A1 with
a positive outlook by Moody's, AA with a stable outlook by Standard and Poor's,
and AA- with a stable outlook by Fitch. In November 2004, Moody's upgraded its
rating to A1 from
5
A2, citing improvement in the state's economic outlook. That rating was
reconfirmed in February 2005, as was S&P's AA rating. In April 2005, Moody's
also upgraded the rating on New York City GO debt to A1 from A2, and in May
2005, S&P followed suit, raising the city's rating to A+ from A. These
represented the highest ratings ever given New York City by these two credit
agencies, which cited the city's ability to make difficult budgetary and fiscal
policy decisions in recovering from one of the most serious fiscal crises in
decades.
For the 12 months ended September 2005, municipal bond issuance in New York
totaled $45.6 billion, an increase of 24% from the previous 12 months. During
the first nine months of 2005, state issuers offered $32.1 billion in new
issuance, up 30% from January-September 2004. For both time periods, New York
ranked second only to California in terms of municipal issuance. According to
Moody's, New York State has more outstanding tax-supported debt than any other
state in the union.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW YORK FUNDS DURING THE 12 MONTHS
ENDED SEPTEMBER 30, 2005?
One of our priorities during this reporting period was duration management.
Duration is a measure of a bond's price sensitivity as interest rates change,
with longer duration bonds being more sensitive to changes and thereby
presenting greater interest rate risk. Duration management became increasingly
important in 2005, as the flattening of the yield curve resulted in a dramatic
rise in advance refundings.
Advance refunding of bonds held by the Funds generally had an immediate,
positive impact on their performances, as well as a shortening effect on the
Funds' durations. In order to maintain these durations within our preferred
strategic range, we sold some of our holdings with shorter durations, including
short-dated pre-refunded bonds, bonds that were currently callable, and bonds
priced to short calls, all of which tended to underperform in the interest rate
environment of the past 12 months.
6
The proceeds from the sales of these holdings were then reinvested primarily in
bonds in the intermediate part of the yield curve, that is, bonds that mature in
10 to 20 years. The longer durations of these bonds enabled us to counteract
some of the duration shortening caused by advance refundings and also
contributed favorably to the Funds' performances during this period. In
addition, selling shorter duration bonds and reinvesting in bonds further out on
the yield curve with better call protection helped to improve the Funds' overall
call protection profile.
Overall, the ample new issue supply in New York during this period provided a
number of opportunities for us to find the types of bonds we were seeking, and
we actively took advantage of this situation. While our main focus was on the
intermediate part of the yield curve, we also kept an opportunistic eye toward
longer-term bonds with maturities between 20 and 30 years that we believed could
add value to the Funds' portfolios.
In addition to duration management, we also sought to maintain the Funds'
exposures to lower-rated credits. Lower-rated bonds generally performed very
well during this period, and as a result they proved popular with investors.
While we did not find many appealing opportunities to add to our positions among
these types of securities, some of those we did hold were pre-refunded during
this period, which led to beneficial price gains.
The majority of our purchase activity in these four Funds focused on AAA rated
insured bonds, as we participated in some of the larger issues of this period,
including the $2.8 billion New York State Thruway Authority offering in August
2005 and several insured New York City issues. We also added insured credits
issued by Sales Tax Asset Receivable Corporation (STAR Corp.) in October 2004.
The proceeds from this $2.5 billion issue are being used to refinance New York
City Municipal Assistance Corporation (MAC) bonds, which were originally issued
in the 1970s as part of the city's bailout plan. The bonds we purchased have
maturity dates ranging from 2024 to 2029.
7
HOW DID THE FUNDS PERFORM?
Individual results for these New York Funds, as well as for comparative indexes
and peer group averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 9/30/05
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NNY1 4.95% 5.99% 5.16%
--------------------------------------------------------------------------------
NNP 6.29% 9.27% 6.95%
--------------------------------------------------------------------------------
NAN 6.38% 9.71% NA
--------------------------------------------------------------------------------
NXK 6.45% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
NY Tax-Exempt
Bond Index2 3.74% 6.25% 6.18%
--------------------------------------------------------------------------------
Lipper NY
Municipal Debt
Funds Average3 7.97% 8.45% 7.04%
--------------------------------------------------------------------------------
* Annualized
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.
For the 12 months ended September 30, 2005, the total returns on net asset value
(NAV) for all four of the Funds in this report exceeded the return on the Lehman
Brothers New York Tax-Exempt Bond Index. Each of the Funds underperformed the
average return for the Lipper New York peer group for this period.
One of the primary factors benefiting the 12-month performance of NNP, NAN and
NXK relative to that of the unleveraged Lehman Brothers New York index was these
Funds' use of financial leverage. While leveraging can add volatility to a
Fund's NAV and share price, especially during periods when interest rates rise,
this strategy can also provide opportunities for additional income and total
return for common shareholders when short-term interest rates remain relatively
low and long-term rates stay relatively steady. Because it is unleveraged, NNY
did not benefit from this leverage strategy, and this hampered its total return
for the period relative to NNP, NAN, NXK and the peer group.
1 NNY is an unleveraged Fund; the remaining three Funds in this report are
leveraged.
2 The Lehman Brothers New York Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade New York
municipal bonds. Results for the Lehman index do not reflect any expenses.
3 The Lipper New York Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1 year, 22 funds; 5 years, 11 funds; and 10
years, 9 funds. Fund and Lipper returns assume reinvestment of dividends.
8
As noted earlier, the municipal market yield curve flattened over the course of
this reporting period as short-term interest rates rose dramatically and
longer-term interest rates finished the 12 months about where they began. As a
result, relatively heavier exposure to longer durations and the longer end of
the yield curve helped the performance of NNP, NAN and NXK. The performance of
NNY was hindered by the Fund's relatively greater exposure to the shorter
duration bonds that were impacted negatively by the yield curve flattening.
All of these Funds also benefited from their allocations of lower-quality bonds
during this period, as these bonds generally outperformed other credit quality
sectors. This was largely the result of the interest rate environment during
this time, as investor demand for the higher yields typically associated with
lower-quality bonds drove up the value of these bonds. As of September 30, 2005,
allocations of bonds rated BBB and lower and non-rated bonds accounted for 11%
of NAN's portfolio, 13% of NNY, 14% of NNP and 17% of NXK.
Among the lower-rated credits making significant contributions to the Funds'
total returns for this period were bonds backed by the 1998 master tobacco
settlement agreement. As the litigation environment improved, supply/demand
dynamics drove tobacco bond prices higher. The Funds' unenhanced BBB rated
tobacco holdings accounted for between 2% and 3% of the portfolios of NNY, NNP
and NAN and for about 5% of NXK as of September 30, 2005. Lower-rated hospital
holdings also enhanced the Funds' total returns for the period, with the
healthcare sector ranked second by Lehman in terms of performance among all
municipal revenue sectors for the period. Each of the four Funds also had a
modest exposure to bonds issued for British Airways and/or American Airlines,
which posted strong performance for the year despite turmoil in the airline
industry as the result of additional bankruptcies.
The value of the Nuveen New York Funds was also positively impacted during this
period by Moody's November 2004 upgrade of the credit rating on New York State
general obligation bonds as well as Moody's and S&P's upgrades of the ratings on
New York City GO debt in April and May 2005, respectively.
9
In addition to leverage, yield curve positioning, and credit exposure, another
major factor in the Funds' performances during this period was advance
refundings. As mentioned earlier, refinancings rose sharply during this period,
and the Funds' performances benefited from the price appreciation and enhanced
credit quality associated with advance refundings. Among the Funds' holdings
that were pre-refunded during this period were BBB rated tobacco bonds issued by
Westchester Asset Securitization Tobacco Corporation and a BBB- rated Yonkers
Inc. industrial development issue. These bonds were held by NNY, NNP and NAN.
More generally, the amount and timing of an advance refunding of a holding
within a portfolio had a great deal of impact on whether this event ultimately
helped or hurt the Fund's overall performance over the period. Usually, a bond
that was advance refunded tended to benefit from an immediate price increase as
its credit quality was upgraded (because the bond is now backed by U.S.
Government securities). However, that same bond - now priced as a high quality
issue to a shorter final maturity - might then have underperformed lower quality
issues and issues with longer final maturities over the balance of the reporting
period. Therefore, the size of the holding, the credit quality boost caused by
the pre-refunding and the amount of time remaining before the end of the
reporting period all had an impact on the overall performance of a pre- refunded
bond.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
SEPTEMBER 30, 2005?
We continued to believe that maintaining strong credit quality was an important
requirement. As of September 30, 2005, all four of these Funds continued to
offer excellent credit quality, with allocations of bonds rated AAA/U.S.
guaranteed and AA ranging from 79% in NNP and NXK to 80% in NNY and 83% in NAN.
As of September 30, 2005, potential call exposure for the period from October
2005 through the end of 2007 ranged from 2% in NXK to 5% in NAN, 6% in NNP and
12% in NNY. The number of actual bond calls in all of these Funds depends
largely on future market interest rates.
10
Dividend and Share Price
INFORMATION
All of the Funds in this report except NNY use leverage to enhance opportunities
for additional income for common shareholders. The extent of this benefit is
tied in part to the short-term rates these three leveraged Funds pay their
MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged
Funds generally pay lower dividends to their MuniPreferred shareholders, which
can leave more earnings to support common share dividends. However, when
short-term interest rates rise, as they did during this reporting period, the
Funds' borrowing costs also rise. While leveraging still provided benefits for
common shareholders, the extent of these benefits was reduced. This resulted in
one monthly dividend reduction in NAN and NXK and two in NNP over the 12-month
period ended September 30, 2005. The dividend of NNY remained stable throughout
this reporting period.
In addition, due to normal portfolio activity, common shareholders of the
following Funds received capital gains and net ordinary income distributions at
the end of December 2004 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NNY $ -- $0.0012
--------------------------------------------------------------------------------
NNP $0.0798 $0.0021
--------------------------------------------------------------------------------
NXK $0.0618 $0.0006
--------------------------------------------------------------------------------
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 September 30, 2005, all of
the Funds in this report had positive UNII balances for both financial statement
and tax purposes.
11
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
9/30/05 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NNY -8.04% -6.68%
--------------------------------------------------------------------------------
NNP -2.62% -4.52%
--------------------------------------------------------------------------------
NAN +1.77% -1.17%
--------------------------------------------------------------------------------
NXK -1.48% -2.88%
--------------------------------------------------------------------------------
12
Nuveen New York Municipal Value Fund, Inc.
NNY
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 53%
AA 27%
A 7%
BBB 8%
BB or Lower 3%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0355
Nov 0.0355
Dec 0.0355
Jan 0.0355
Feb 0.0355
Mar 0.0355
Apr 0.0355
May 0.0355
Jun 0.0355
Jul 0.0355
Aug 0.0355
Sep 0.0355
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 9.17
9.1
9.16
9.2
9.14
9.23
9.32
9.28
9.31
9.36
9.31
9.27
9.19
9.36
9.32
9.28
9.33
9.29
9.29
9.33
9.35
9.33
9.29
9.33
9.34
9.32
9.09
9.12
9.09
9.18
9.31
9.29
9.31
9.25
9.27
9.16
9.19
9.2
9.16
9.19
9.15
9.1
9.15
9.05
9.15
9.07
9.05
9.07
9.07
9.02
8.99
9.01
9.03
9.01
8.98
8.95
9.12
9.05
9.06
9.02
8.97
8.99
9
8.97
8.95
9
9.06
9.11
9.05
9.09
9.1
9.1
8.99
9.04
9.08
9.14
9.14
9.1
9.14
9.17
9.18
9.2
9.24
9.28
9.3
9.33
9.24
9.234
9.37
9.41
9.52
9.42
9.38
9.42
9.4
9.43
9.19
9.18
9.13
9.19
9.34
9.36
9.3
9.37
9.5
9.5
9.4
9.36
9.35
9.28
9.33
9.26
9.22
9.2
9.25
9.26
9.32
9.25
9.17
9.11
9.07
9.4
9.35
9.43
9.52
9.57
9.42
9.49
9.46
9.34
9.36
9.45
9.45
9.4
9.42
9.44
9.38
9.35
9.3
9.29
9.24
9.3
9.34
9.41
9.37
9.46
9.46
9.47
9.47
9.45
9.5
9.45
9.45
9.56
9.53
9.53
9.5
9.58
9.55
9.57
9.53
9.61
9.62
9.7
9.59
9.53
9.59
9.6
9.74
9.71
9.64
9.61
9.64
9.6
9.59
9.73
9.69
9.65
9.75
9.64
9.54
9.5
9.58
9.64
9.61
9.68
9.64
9.62
9.65
9.68
9.73
9.7
9.74
9.71
9.65
9.69
9.71
9.74
9.69
9.73
9.71
9.75
9.7
9.65
9.75
9.714
9.7
9.69
9.78
9.69
9.69
9.7
9.73
9.69
9.69
9.7
9.68
9.6
9.62
9.52
9.54
9.52
9.59
9.55
9.56
9.6
9.54
9.59
9.68
9.63
9.6
9.69
9.77
9.7
9.71
9.72
9.74
9.64
9.65
9.7
9.67
9.63
9.54
9.44
9.45
9.45
9.48
9.45
9.33
9.24
9.29
9.24
9.26
9.28
9/30/05 9.26
FUND SNAPSHOT
------------------------------------
Common Share Price $9.26
------------------------------------
Common Share Net Asset Value $10.07
------------------------------------
Premium/(Discount) to NAV -8.04%
------------------------------------
Market Yield 4.60%
------------------------------------
Taxable-Equivalent Yield1 6.87%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $152,236
------------------------------------
Average Effective
Maturity on Securities (Years) 18.45
------------------------------------
Modified Duration 5.24
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 5.88% 4.95%
------------------------------------
5-Year 6.32% 5.99%
------------------------------------
10-Year 4.57% 5.16%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 20.5%
------------------------------------
Long-Term Care 12.0%
------------------------------------
U.S. Guaranteed 11.5%
------------------------------------
Healthcare 10.9%
------------------------------------
Utilities 8.9%
------------------------------------
Transportation 8.6%
------------------------------------
Education and Civic
Organizations 8.1%
------------------------------------
Housing/Multifamily 5.1%
------------------------------------
Tax Obligation/General 4.7%
------------------------------------
Other 9.7%
------------------------------------
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 combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2004 of $0.0012 per share.
13
Nuveen New York Performance Plus Municipal Fund, Inc.
NNP
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 53%
AA 26%
A 7%
BBB 9%
BB or Lower 3%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0845
Nov 0.0845
Dec 0.0845
Jan 0.0845
Feb 0.0845
Mar 0.0815
Apr 0.0815
May 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 15.66
15.68
15.7
15.76
15.72
15.85
15.8
15.83
15.77
15.82
15.81
15.9
15.78
15.84
15.83
15.84
16.01
15.95
16.12
16.11
16.14
16.13
16.13
16.26
16.32
16.2
15.77
15.63
15.58
15.62
15.74
15.75
15.7
15.79
15.84
15.62
15.99
15.88
15.95
15.95
15.8
15.8
15.96
15.73
15.78
15.78
15.77
15.8
15.85
15.88
15.62
15.59
15.57
15.55
15.46
15.47
15.45
15.44
15.39
15.36
15.3
15.43
15.47
15.61
15.6
15.7
15.67
15.72
15.99
15.71
15.6
15.52
15.4
15.45
15.39
15.38
15.37
15.37
15.33
15.41
15.37
15.41
15.48
15.51
15.58
15.6
15.6
15.68
15.63
15.69
15.91
15.87
15.784
15.78
15.83
15.81
15.66
15.6
15.58
15.53
15.55
15.63
15.6
15.65
15.63
15.64
15.64
15.57
15.53
15.38
15.36
15.19
15.25
15.26
15.1
15.15
15.09
15
14.95
14.72
14.72
14.55
14.62
14.64
14.77
14.74
14.9
14.94
15.01
14.94
14.95
15.03
15.03
15.03
15.07
15.06
15.1
15.23
15.18
15.18
15.16
15.19
15.3
15.34
15.44
15.39
15.39
15.5
15.61
15.71
15.65
15.54
15.58
15.65
15.66
15.62
15.66
15.74
15.71
15.75
15.73
15.74
15.91
15.86
15.85
15.73
15.72
15.93
16.01
16
16.04
15.98
15.99
15.97
15.92
15.92
15.86
15.88
15.81
16.04
16.04
15.95
15.94
16
15.99
16.02
16.17
16.22
16.2
16.15
16.2
16.17
16.15
16.16
16.19
16.19
16.2
16.14
16.15
16.2
16.14
16.24
16.19
16.2
16.25
16.16
16.24
16.22
16.25
16.2
16.2
16.33
16.47
16.34
16.37
16.38
16.23
16.11
16.17
16.13
16.1
16.12
16.14
16.12
16.23
16.27
16.25
16.32
16.35
16.35
16.45
16.522
16.54
16.62
16.54
16.8
16.82
16.81
16.8
16.75
16.84
16.5
16.31
16.3
16.27
16.24
16.22
16.37
16.23
15.96
15.92
15.93
16.06
16.03
9/30/05 16.01
FUND SNAPSHOT
------------------------------------
Common Share Price $16.01
------------------------------------
Common Share
Net Asset Value $16.44
------------------------------------
Premium/(Discount) to NAV -2.62%
------------------------------------
Market Yield 5.85%
------------------------------------
Taxable-Equivalent Yield1 8.73%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $246,255
------------------------------------
Average Effective
Maturity on Securities (Years) 17.35
------------------------------------
Leverage-Adjusted Duration 8.11
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.37% 6.29%
------------------------------------
5-Year 9.78% 9.27%
------------------------------------
10-Year 6.48% 6.95%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 18.4%
------------------------------------
U.S. Guaranteed 14.2%
------------------------------------
Education and Civic
Organizations 13.3%
------------------------------------
Healthcare 9.9%
------------------------------------
Transportation 8.9%
------------------------------------
Utilities 8.0%
------------------------------------
Water and Sewer 6.7%
------------------------------------
Long-Term Care 5.1%
------------------------------------
Housing/Multifamily 4.9%
------------------------------------
Other 10.6%
------------------------------------
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 combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0819 per share.
14
Nuveen New York Dividend Advantage Municipal Fund
NAN
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 58%
AA 25%
A 6%
BBB 6%
BB or Lower 2%
NR 3%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct 0.0825
Nov 0.0825
Dec 0.0825
Jan 0.0825
Feb 0.0825
Mar 0.0825
Apr 0.0825
May 0.0825
Jun 0.0825
Jul 0.0825
Aug 0.0825
Sep 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 15
15.03
14.98
15.01
15
15.03
15.11
15.26
15.17
15.28
15.22
15.28
15.24
15.26
15.29
15.33
15.4
15.37
15.32
15.35
15.32
15.34
15.3
15.34
15.44
15.3
15.09
15.15
15.15
15.38
15.3
15.34
15.47
15.52
15.52
15.59
15.6
15.45
15.55
15.5
15.44
15.35
15.25
15.2
15.21
15.4
15.47
15.45
15.57
15.57
15.49
15.38
15.49
15.4
15.34
15.31
15.34
15.4
15.44
15.41
15.4
15.47
15.43
15.55
15.56
15.6
15.7
15.6
15.6
15.61
15.61
15.58
15.62
15.72
15.72
15.68
15.64
15.71
15.66
15.8
15.76
15.768
15.77
15.77
15.75
15.75
15.63
15.76
15.75
15.72
15.69
15.7
15.62
15.69
15.66
15.65
15.58
15.6
15.51
15.49
15.55
15.59
15.61
15.66
15.67
15.69
15.67
15.64
15.6
15.36
15.4
15.35
15.45
15.42
15.4
15.35
15.34
15.38
15.28
15.2
14.93
14.71
14.69
14.72
14.93
14.89
15.01
15.03
15.03
15
14.99
15.07
15.18
15.16
15.19
15.01
15.05
15.16
15.19
15.25
15.21
15.26
15.44
15.7
15.7
15.73
15.73
15.9
15.61
15.72
15.8
15.77
15.85
16
15.73
15.71
15.81
15.97
15.96
15.95
15.72
15.69
15.71
15.83
15.85
15.86
15.84
15.93
15.92
15.93
15.9
15.94
15.91
15.9
15.94
15.95
15.97
16
15.9
15.91
15.98
16.02
15.93
15.99
15.91
15.93
15.97
16
16.06
16.15
16.15
16.18
16.2
16.14
16.23
16.35
16.54
16.4
16.38
16.47
16.44
16.35
16.4
16.37
16.25
16.22
16.19
16.7
16.49
16.49
16.49
16.37
16.31
16.3
16.2
16.1
15.95
15.96
15.96
15.93
15.89
15.98
16.05
15.94
15.99
15.95
16.12
16.17
16.22
16.35
16.47
16.42
16.45
16.3
16.39
16.51
16.62
16.69
16.7
16.7
16.7
16.66
16.52
16.46
16.55
16.64
16.7
16.43
16.25
15.94
15.93
15.84
15.95
16
9/30/05 16.11
FUND SNAPSHOT
------------------------------------
Common Share Price $16.11
------------------------------------
Common Share
Net Asset Value $15.83
------------------------------------
Premium/(Discount) to NAV 1.77%
------------------------------------
Market Yield 5.85%
------------------------------------
Taxable-Equivalent Yield1 8.73%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $145,701
------------------------------------
Average Effective
Maturity on Securities (Years) 17.69
------------------------------------
Leverage-Adjusted Duration 7.54
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 14.24% 6.38%
------------------------------------
5-Year 12.15% 9.71%
------------------------------------
Since
Inception 7.43% 7.81%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 22.0%
------------------------------------
Tax Obligation/Limited 18.3%
------------------------------------
Education and Civic
Organizations 11.5%
------------------------------------
U.S. Guaranteed 10.6%
------------------------------------
Transportation 8.4%
------------------------------------
Tax Obligation/General 8.2%
------------------------------------
Utilities 6.9%
------------------------------------
Housing/Multifamily 3.9%
------------------------------------
Other 10.2%
------------------------------------
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 combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
15
Nuveen New York Dividend Advantage Municipal Fund 2
NXK
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 18%
A 4%
BBB 12%
BB or Lower 3%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0795
Nov 0.0795
Dec 0.0795
Jan 0.0795
Feb 0.0795
Mar 0.0795
Apr 0.0795
May 0.0795
Jun 0.0795
Jul 0.0795
Aug 0.0795
Sep 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 14.71
14.76
14.76
14.66
14.8
15.1
14.85
14.85
14.92
14.96
14.98
15.12
14.88
15.02
15
14.99
14.99
15.14
15.27
15.06
15.15
15.27
15.27
15.28
15.2
14.95
14.83
14.85
15.03
15.21
15.3
15.06
15
15
14.96
14.9
14.91
15.02
15
15.05
14.77
14.95
14.8
14.75
14.98
14.9
14.82
14.9
14.81
14.93
14.78
14.72
14.69
14.7
14.76
14.95
14.85
14.75
15
14.87
14.84
14.94
14.84
14.8
14.8
14.86
14.94
14.86
14.93
14.93
15.1
15.26
15.2
15.24
15.25
15.25
15.16
15.14
15.24
15.25
15.22
15.36
15.3
15.37
15.3
15.29
15.2
15.21
15.2
15.2
15.05
15.07
15.03
15.05
15.1
15.1
15.06
14.91
14.65
14.67
14.73
14.77
14.79
14.9
14.9
14.9
14.89
14.95
14.96
14.92
14.91
14.67
14.88
15.06
14.96
14.8
14.7
14.68
14.67
14.34
14.3
14.29
14.29
14.61
14.6
14.6
14.67
14.75
14.69
14.61
14.55
14.54
14.6
14.65
14.67
14.75
14.82
14.95
14.91
14.77
14.81
14.75
15.04
15
14.94
14.97
14.97
15.12
15.06
15.13
15.04
15
15.15
15.25
15.15
15.07
15
14.99
15.19
15.24
15.27
15.28
15.2
15.11
15.15
15.15
15.13
15.2
15.34
15.27
15.27
15.28
15.3
15.3
15.34
15.34
15.28
15.29
15.24
15.27
15.3
15.25
15.25
15.38
15.45
15.54
15.75
15.74
15.77
15.79
15.7
15.86
15.84
15.8
15.85
15.83
15.93
15.87
15.82
15.88
15.92
15.92
15.85
15.85
16
15.95
15.99
15.99
16.03
15.83
15.83
15.78
15.88
15.87
15.8
15.81
15.92
15.7
15.74
15.72
15.75
15.87
16
15.8
15.78
15.7
15.72
15.71
15.72
15.8
16
15.95
16
16
16.02
16.13
16.05
16.13
16.05
15.99
16.11
15.95
15.92
15.9
15.89
16.06
15.85
15.84
15.66
15.62
15.49
15.44
15.49
15.4
9/30/05 15.34
FUND SNAPSHOT
------------------------------------
Common Share Price $15.34
------------------------------------
Common Share
Net Asset Value $15.57
------------------------------------
Premium/(Discount) to NAV -1.48%
------------------------------------
Market Yield 5.95%
------------------------------------
Taxable-Equivalent Yield1 8.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $100,606
------------------------------------
Average Effective
Maturity on Securities (Years) 18.65
------------------------------------
Leverage-Adjusted Duration 7.56
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 10.61% 6.45%
------------------------------------
Since
Inception 7.05% 8.26%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.9%
------------------------------------
Healthcare 12.4%
------------------------------------
Transportation 12.2%
------------------------------------
Utilities 11.4%
------------------------------------
Education and Civic
Organizations 11.2%
------------------------------------
U.S. Guaranteed 10.2%
------------------------------------
Tax Obligation/General 8.4%
------------------------------------
Water and Sewer 6.2%
------------------------------------
Other 10.1%
------------------------------------
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 combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0624 per share.
16
Shareholder
MEETING REPORT
The Special Shareholder Meeting was held at The Northern Trust Bank,
50 S. LaSalle St., Chicago, IL on July 26, 2005.
NNY NNP NAN NXK
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
Common together together together
shares as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 13,079,062 13,058,442 8,800,454 6,158,852
Against 82,201 96,144 60,663 52,689
Abstain 333,736 247,259 107,001 75,861
------------------------------------------------------------------------------------------------------------------------------------
Total 13,494,999 13,401,845 8,968,118 6,287,402
====================================================================================================================================
17
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN NEW YORK MUNICIPAL VALUE FUND, INC.
NUVEEN NEW YORK PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New York Municipal Value Fund, Inc.,
Nuveen New York Performance Plus Municipal Fund, Inc., Nuveen New York Dividend
Advantage Municipal Fund and Nuveen New York Dividend Advantage Municipal Fund 2
as of September 30, 2005, and the related statements of operations for the year
then ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for 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 September 30, 2005, by correspondence with the custodian
and brokers or 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 New York Municipal Value Fund, Inc., Nuveen New York Performance Plus
Municipal Fund, Inc., Nuveen New York Dividend Advantage Municipal Fund and
Nuveen New York Dividend Advantage Municipal Fund 2 at September 30, 2005, and
the results of their operations for the year then ended, changes in their net
assets for each of the two years in the period then ended, and their financial
highlights for the periods indicated therein, in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
November 11, 2005
18
Nuveen New York Municipal Value Fund, Inc. (NNY)
Portfolio of
INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2% (0.2% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, Liberty 9/15 at 100.00 BBB- $ 278,900
Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (2.6% OF TOTAL INVESTMENTS)
460 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 476,546
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
485 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 500,292
Pass-Through Bonds, Series 2000, 5.800%, 6/01/23
360 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 369,335
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
1,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- 1,067,100
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27
275 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 281,276
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
1,250 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 BBB 1,328,063
Series 1999-1, 6.250%, 7/15/27
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.0% (8.1% OF TOTAL INVESTMENTS)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Law School, Series 2000A:
600 5.700%, 10/01/20 - RAAI Insured 10/10 at 100.00 AA 649,080
750 5.750%, 10/01/30 - RAAI Insured 10/10 at 100.00 AA 814,463
2,000 New York City Trust for Cultural Resources, New York, 4/07 at 101.00 AAA 2,088,200
Revenue Bonds, American Museum of Natural History,
Series 1997A, 5.650%, 4/01/27 - MBIA Insured
575 New York City Trust for Cultural Resources, New York, 7/10 at 101.00 A 622,817
Revenue Bonds, Museum of American Folk Art,
Series 2000, 6.000%, 7/01/22 - ACA Insured
245 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 251,703
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,142,647
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
Dormitory Authority of the State of New York, Second General
Resolution Consolidated Revenue Bonds, City University System,
Series 1993A:
1,000 5.750%, 7/01/18 No Opt. Call AA- 1,152,730
1,400 6.000%, 7/01/20 No Opt. Call AA- 1,662,136
615 Dormitory Authority of the State of New York, Revenue No Opt. Call AAA 704,753
Bonds, City University of New York, Series 2005A,
5.500%, 7/01/18 - FGIC Insured
750 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 102.00 AA 826,148
Pratt Institute, Series 1999, 6.000%, 7/01/24 - RAAI Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 1,370,388
Marymount Manhattan College, Series 1999,
6.250%, 7/01/29 - RAAI Insured
800 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 AA 854,768
Bonds, D'Youville College, Series 2001,
5.250%, 7/01/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.8% (10.9% OF TOTAL INVESTMENTS)
490 Cattaraugus County Industrial Development Agency, 8/08 at 102.00 AA 507,611
New York, Revenue Bonds, Olean General Hospital,
Series 1998A, 5.250%, 8/01/23
290 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 304,106
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
760 Nassau County Industrial Development Agency, New York, No Opt. Call A3 827,708
Revenue Refunding Bonds, North Shore Health System
Obligated Group, Series 2001B, 5.875%, 11/01/11
19
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 500 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AAA $ 525,345
Health System Revenue Bonds, Series 1999A,
5.125%, 2/15/14 - AMBAC Insured
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,175 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,274,981
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,085,090
250 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 249,053
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
500 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 498,120
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
100 Dormitory Authority of the State of New York, Revenue Bonds, 7/06 at 102.00 B2 98,818
Nyack Hospital, Series 1996, 6.250%, 7/01/13
2,250 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AAA 2,366,595
Mortgage Nursing Home Revenue Bonds, Rosalind and
Joseph Gurwin Jewish Geriatric Center of Long Island,
Series 1997, 5.700%, 2/01/37 - AMBAC Insured
250 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 Ba1 253,768
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
900 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 946,206
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/28 - FGIC Insured
705 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 740,088
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
1,635 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,790,570
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 521,575
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 527,860
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 1,057,320
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
1,250 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Baa1 1,375,775
Bonds, Catholic Health Services of Long Island Obligated
Group - St. Catherine of Siena Medical Center,
Series 2000A, 6.500%, 7/01/20
970 Newark-Wayne Community Hospital, New York, Hospital 3/06 at 100.00 N/R 969,952
Revenue Refunding and Improvement Bonds, Series 1993A,
7.600%, 9/01/15
500 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 BB 520,500
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.0% (5.1% OF TOTAL INVESTMENTS)
400 East Syracuse Housing Authority, New York, FHA-Insured 4/10 at 102.00 AAA 434,096
Section 8 Assisted Revenue Refunding Bonds, Bennet
Project, Series 2001A, 6.700%, 4/01/21
1,690 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 1,785,384
Capital Fund Program Revenue Bonds, Series 2005A,
5.000%, 7/01/25 - FGIC Insured
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2001A:
1,000 5.400%, 11/01/21 5/11 at 101.00 AA 1,044,620
1,000 5.500%, 11/01/31 5/11 at 101.00 AA 1,036,230
1,000 5.600%, 11/01/42 5/11 at 101.00 AA 1,035,880
480 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 479,981
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
440 New York State Housing Finance Agency, Secured Mortgage 8/11 at 100.00 Aa1 461,780
Program Multifamily Housing Revenue Bonds, Series 2001E,
5.600%, 8/15/20 (Alternative Minimum Tax)
1,275 Westchester County Industrial Development Agency, New York, 8/11 at 102.00 Aaa 1,368,878
GNMA Collateralized Mortgage Loan Revenue Bonds, Living
Independently for the Elderly Inc., Series 2001A,
5.375%, 8/20/21
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1% (3.1% OF TOTAL INVESTMENTS)
$ 3,750 New York State Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 $ 3,853,238
Revenue Bonds, Series 73A, 5.250%, 10/01/17
(Alternative Minimum Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 849,937
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.8% (12.0% OF TOTAL INVESTMENTS)
1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 1,100,740
Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 -
MBIA Insured
2,015 East Rochester Housing Authority, New York, FHA-Insured 8/07 at 102.00 AAA 2,143,960
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1997A, 5.750%, 8/01/37 - MBIA Insured
3,125 East Rochester Housing Authority, New York, FHA-Insured 8/08 at 101.00 AAA 3,187,938
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1998A, 5.250%, 8/01/38
525 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 566,286
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2000, 8.125%, 7/01/19
530 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 556,786
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001A-1, 7.250%, 7/01/16
2,975 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AA 3,131,991
Mortgage Nursing Home Revenue Bonds, Hebrew Home for
the Aged at Riverdale, Series 1997, 6.125%, 2/01/37
1,845 Dormitory Authority of the State of New York, FHA-Insured 8/06 at 102.00 AA- 1,910,018
Mortgage Revenue Bonds, German Masonic Home
Corporation, Series 1996, 5.950%, 8/01/26
3,000 Dormitory Authority of the State of New York, FHA-Insured 8/06 at 102.00 AAA 3,127,260
Mortgage Revenue Bonds, W.K. Nursing Home Corporation,
Series 1996, 6.125%, 2/01/36
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 1,046,010
Mortgage Nursing Home Revenue Bonds, Eger Healthcare
Center of Staten Island, Series 1998, 5.100%, 2/01/28
135 Dormitory Authority of the State of New York, Revenue 7/15 at 100.00 A 136,632
Bonds, Providence Rest, Series 2005, 5.000%, 7/01/35 -
ACA Insured
1,000 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Aa3 1,090,270
Bonds, Concord Nursing Home Inc., Series 2000,
6.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 4.6% (4.7% OF TOTAL INVESTMENTS)
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A+ 816,210
Series 2004C, 5.250%, 8/15/16
825 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 897,452
Series 2006C, 5.000%, 8/01/16 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2005O:
1,000 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 1,080,730
1,000 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 1,075,740
400 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 430,724
Series 2005P, 5.000%, 8/01/18 - MBIA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 2,134,500
Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured
550 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 582,104
Series 2000A, 6.000%, 6/01/20 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.3% (20.5% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,099,370
Series 2003A, 5.250%, 11/01/21
350 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 398,489
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
1,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 1,052,090
Service Contract Refunding Bonds, Series 2002A,
5.125%, 1/01/29
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,163,880
1,000 5.000%, 11/15/30 11/12 at 100.00 AA- 1,034,760
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 586,622
Revenue Bonds, Series 2003, 5.500%, 1/01/34
21
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,330 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA $ 1,395,223
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
Dormitory Authority of the State of New York, Department of
Health Revenue Bonds, Series 2005A:
395 5.250%, 7/01/24 - CIFG Insured 7/15 at 100.00 AAA 427,718
250 5.000%, 7/01/25 - CIFG Insured 7/15 at 100.00 AAA 263,092
105 Dormitory Authority of the State of New York, Improvement 2/06 at 102.00 AAA 107,882
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.375%, 2/15/26 - FSA Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,054,620
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
140 New York State Housing Finance Agency, Suffolk County, No Opt. Call Baa1 142,411
H.E.L.P. Secured Loan Rental Housing Revenue Bonds,
Series 1989A, 8.100%, 11/01/05
1,810 Dormitory Authority of the State of New York, Service 4/12 at 100.00 AA- 1,944,302
Contract Bonds, Child Care Facilities Development Program,
Series 2002, 5.375%, 4/01/16
2,450 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 2,817,843
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
1,620 New York State Thruway Authority, State Personal Income 3/12 at 100.00 AA 1,724,506
Tax Revenue Bonds, Series 2002A, 5.125%, 3/15/21
1,000 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 1,069,550
Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/20 -
FSA Insured
600 New York State Urban Development Corporation, Special No Opt. Call AA- 706,716
Project Revenue Bonds, University Facilities Grants,
Series 1995, 5.875%, 1/01/21
1,750 New York State Urban Development Corporation, Service No Opt. Call AA- 1,901,200
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
1,000 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,063,130
740 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 786,146
550 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 583,022
1,510 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,595,994
1,230 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,314,686
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.000%, 4/15/16 - AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
500 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 544,520
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 2,168,420
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,091,620
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
90 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 98,227
Center Bonds, Series 1990E, 7.250%, 1/01/10
1,500 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 1,685,670
Loan Note, Series 1999A, 6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.5% (8.6% OF TOTAL INVESTMENTS)
400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 426,096
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 556,060
Transportation Revenue Refunding Bonds, Series 2002A,
5.500%, 11/15/19 - AMBAC Insured
1,565 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 1,645,551
Transportation Revenue Bonds, Series 2005B,
5.000%, 11/15/35 - MBIA Insured
1,100 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 988,504
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 951,680
Special Facilities Revenue Bonds, JFK Airport -
American Airlines Inc., Series 2002B, 8.500%, 8/01/28
(Alternative Minimum Tax)
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 500 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA $ 525,870
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
1,200 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,259,916
Series 2005G, 5.000%, 1/01/32 - FSA Insured
500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 533,620
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
500 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 541,265
1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,060,250
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,642,275
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 902,616
800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 869,696
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 11.4% (11.5% OF TOTAL INVESTMENTS)
350 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 394,755
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded to 7/15/10)
2,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 2,363,625
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
150 6.000%, 6/01/15 (Pre-refunded to 6/01/10) 6/10 at 101.00 BBB*** 168,105
655 6.150%, 6/01/25 (Pre-refunded to 6/01/10) 6/10 at 101.00 BBB*** 738,270
20 New York City, New York, General Obligation Bonds, Fiscal 10/07 at 101.00 Aaa 21,393
Series 1997G, 6.000%, 10/15/26 (Pre-refunded to 10/15/07)
3,345 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 4,045,242
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16
25 Dormitory Authority of the State of New York, Suffolk County, 10/05 at 110.29 Baa1*** 34,949
Lease Revenue Bonds, Judicial Facilities, Series 1991A,
9.500%, 4/15/14
600 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AA*** 671,232
State Personal Income Tax, Series 2003A, 5.375%, 3/15/22
(Pre-refunded to 3/15/13)
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,096,010
Fund Bonds, Second General, Series 2004, 5.000%, 4/01/20
(Pre-refunded to 4/01/14) - MBIA Insured
1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 1,187,340
Water Treatment Plant Bonds, Series 1994, 7.250%, 11/01/11
(Alternative Minimum Tax) - MBIA Insured
750 Niagara Falls City School District, Niagara County, New York, 6/09 at 101.00 BBB-*** 847,433
Certificates of Participation, High School Facility, Series 2000,
6.625%, 6/15/28 (Pre-refunded to 6/15/09)
2,600 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 3,029,936
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded to 1/01/22)
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB*** 1,455,313
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded to 7/15/10)
1,120 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB-*** 1,302,146
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded
to 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.8% (8.9% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
150 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 157,757
2,500 5.250%, 12/01/26 6/08 at 101.00 A- 2,630,875
23
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,330 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- $ 2,515,771
Revenue Bonds, Series 2001A, 5.375%, 9/01/21
750 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- 787,808
Revenue Bonds, Series 2001L, 5.375%, 5/01/33
1,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 1,006,680
Revenue Bonds, Brooklyn Navy Yard Cogeneration Partners
LP, Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax)
1,500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 1,510,560
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation, Series 2005A, 4.100%, 3/15/15 -
MBIA Insured
1,500 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 1,583,685
Series 2000A, 5.250%, 11/15/40
500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 531,310
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Alternative Minimum Tax) (Mandatory
put 11/15/12)
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 266,593
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001C,
5.625%, 11/15/24 (Alternative Minimum Tax) (Mandatory
put 11/15/14)
750 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 791,723
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
Suffolk County Industrial Development Agency, New York, Revenue
Bonds, Nissequogue Cogeneration Partners Facility, Series 1998:
1,000 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,008,120
575 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 578,563
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.7% (3.8% OF TOTAL INVESTMENTS)
300 Monroe County Water Authority, New York, Water System 8/11 at 101.00 AA 318,760
Revenue Bonds, Series 2001, 5.150%, 8/01/22
1,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 1,078,810
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000A, 5.500%, 6/15/32 - FGIC Insured
1,250 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA+ 1,358,886
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33
1,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 1,656,390
Water and Sewerage System Revenue Bonds ,Fiscal
Series 2001D, 5.500%, 6/15/17
415 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 464,902
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
740 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA+ 811,845
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
------------------------------------------------------------------------------------------------------------------------------------
$ 140,215 Total Long-Term Investments (cost $142,161,291) - 98.8% 150,387,656
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,848,174
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 152,235,830
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
24
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP)
Portfolio of
INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 735 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 745,422
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.1% (2.9% OF TOTAL INVESTMENTS)
860 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 887,116
Pass-Through Bonds, Series 2000, 5.800%, 6/01/23
745 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 764,318
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
1,000 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 1,057,980
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
2,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- 2,667,750
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27
695 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 710,860
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
3,750 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 BBB 3,984,188
Series 1999-1, 6.250%, 7/15/27
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.6% (13.3% OF TOTAL INVESTMENTS)
1,500 Albany Industrial Development Agency, New York, Revenue 12/09 at 101.00 AA 1,686,495
Bonds, Albany Law School, Series 1999A, 6.750%, 12/01/29 -
RAAI Insured
2,700 Brookhaven Industrial Development Agency, New York, Revenue 12/07 at 101.00 A3 2,809,701
Bonds, St. Joseph's College, Series 2000, 6.000%, 12/01/20
1,285 Cattaraugus County Industrial Development Agency, New York, 9/08 at 101.00 BBB- 1,313,527
Revenue Bonds, St. Bonaventure University, Series 1998B,
5.000%, 9/15/13
Monroe County Industrial Development Agency, New York,
Civic Facility Revenue Bonds, St. John Fisher College,
Series 1999:
1,000 5.375%, 6/01/17 - RAAI Insured 6/09 at 102.00 AA 1,058,620
2,365 5.375%, 6/01/24 - RAAI Insured 6/09 at 102.00 AA 2,492,001
3,000 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 3,132,300
Bonds, American Museum of Natural History, Series 1997A,
5.650%, 4/01/27 - MBIA Insured
750 New York City Trust for Cultural Resources, New York, Revenue 7/10 at 101.00 A 812,370
Bonds, Museum of American Folk Art, Series 2000,
6.000%, 7/01/22 - ACA Insured
580 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 595,869
Civic Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
850 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 882,955
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
2,500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AA- 2,916,775
State University Educational Facilities, Series 1993A,
5.875%, 5/15/17
1,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 1,137,530
Revenue Bonds, City University System, Series 1993B,
6.000%, 7/01/14 - FSA Insured
730 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 836,536
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
580 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 626,562
Fashion Institute of Technology, Series 2000,
5.375%, 7/01/20 - FSA Insured
5,590 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 A+ 6,001,145
University of Rochester, Series 1999A, 5.500%, 7/01/16
25
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
$ 1,250 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA $ 1,373,663
1,000 6.000%, 7/01/24 - RAAI Insured 7/09 at 102.00 AA 1,101,530
3,810 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 4,184,104
8,345 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 9,148,707
Marymount Manhattan College, Series 1999,
6.250%, 7/01/29 - RAAI Insured
Dormitory Authority of the State of New York, Third General
Resolution Consolidated Revenue Bonds, City University
System, Series 1998-2:
1,490 5.000%, 7/01/17 - FSA Insured 7/08 at 101.00 AAA 1,572,710
1,055 5.000%, 7/01/18 - FSA Insured 7/08 at 101.00 AAA 1,113,563
2,120 Dormitory Authority of the State of New York, General No Opt. Call AAA 2,447,243
Revenue Bonds, New York University, Series 2001-1,
5.500%, 7/01/20 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/12 at 100.00 AAA 1,105,820
Columbia University, Series 2002B, 5.375%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.7% (9.9% OF TOTAL INVESTMENTS)
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,000 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,085,090
1,250 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,356,363
745 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 742,176
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
750 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 747,180
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
2,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/06 at 100.00 AAA 2,031,880
St. Vincent's Hospital and Medical Center, Series 1991,
7.400%, 8/01/30
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AA 1,061,860
Mortgage Hospital Revenue Bonds, St. James Mercy
Hospital, Series 1998, 5.250%, 2/01/18
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,102,680
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/28 - FGIC Insured
4,105 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,495,591
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
900 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 938,835
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 1,319,650
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 8,657,280
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
3,400 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 3,594,888
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
3,750 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 4,127,325
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
1,200 Dormitory Authority of the State of New York, Revenue 7/11 at 101.00 Ba2 1,241,220
Bonds, Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
1,510 New York State Medical Care Facilities Finance Agency, 2/06 at 100.00 AAA 1,522,835
FHA-Insured Mortgage Revenue Bonds, Hospital and
Nursing Home Projects, Series 1992B, 6.200%, 8/15/22
1,100 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 BB 1,145,100
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.2% (4.9% OF TOTAL INVESTMENTS)
$ 4,530 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA $ 4,785,673
Capital Fund Program Revenue Bonds, Series 2005A,
5.000%, 7/01/25 (DD, settling 10/03/05) - FGIC Insured
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2001A:
1,610 5.500%, 11/01/31 5/11 at 101.00 AA 1,668,330
2,000 5.600%, 11/01/42 5/11 at 101.00 AA 2,071,760
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
910 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 944,926
450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 465,660
1,500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 1,566,285
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
1,160 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 1,159,954
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
390 New York State Housing Finance Agency, Multifamily Housing 11/05 at 100.00 AAA 391,950
Revenue Bonds, Series 1989B, 7.550%, 11/01/29
(Alternative Minimum Tax) - AMBAC Insured
1,585 New York State Housing Finance Agency, Multifamily Housing 2/06 at 100.00 Aa1 1,599,725
Revenue Bonds, Secured Mortgage Program, Series 1992A,
7.000%, 8/15/12 (Alternative Minimum Tax)
1,100 New York State Housing Finance Agency, Secured Mortgage 8/09 at 101.00 Aa1 1,148,631
Program Multifamily Housing Revenue Bonds, Series 1999I,
6.200%, 2/15/20 (Alternative Minimum Tax)
1,880 Puerto Rico Housing Finance Corporation, Multifamily Mortgage 10/05 at 100.00 BBB+ 1,933,279
Revenue Bonds, Portfolio A, Series 1990I, 7.500%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS)
375 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 382,436
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
1,250 New York State Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 1,284,413
Revenue Bonds, Series 73A, 5.250%, 10/01/17 (Alternative
Minimum Tax)
6,985 New York State Mortgage Agency, Homeowner Mortgage 4/11 at 100.00 Aa1 7,224,097
Revenue Bonds, Series 97, 5.500%, 4/01/31 (Alternative
Minimum Tax)
1,660 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 1,679,638
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.5% (5.1% OF TOTAL INVESTMENTS)
1,340 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 1,445,378
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2000, 8.125%, 7/01/19
1,350 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 1,418,229
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001A-1, 7.250%, 7/01/16
2,975 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AA 3,131,991
Mortgage Nursing Home Revenue Bonds, Hebrew Home for
the Aged at Riverdale, Series 1997, 6.125%, 2/01/37
Dormitory Authority of the State of New York, Revenue Bonds,
Providence Rest, Series 2005:
50 5.125%, 7/01/30 - ACA Insured 7/15 at 100.00 A 51,192
325 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 A 328,929
1,375 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 102.00 A 1,510,396
Miriam Osborn Memorial Home Association, Series 2000B,
6.375%, 7/01/29 - ACA Insured
1,825 New York State Medical Care Facilities Finance Agency, 2/06 at 102.00 AA+ 1,879,987
FHA-Insured Mortgage Hospital and Nursing Home Revenue
Bonds, Series 1995C, 6.100%, 8/15/15
1,520 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 AAA 1,616,140
Nursing Home Mortgage Revenue Bonds, Shorefront Jewish
Geriatric Center Inc., Series 2002, 5.200%, 2/01/32
2,755 Oswego County Industrial Development Agency, New York, 2/09 at 101.00 AAA 2,933,083
FHA-Insured Mortgage Assisted Civic Facility Revenue
Bonds, Bishop Commons Inc., Series 1999A, 5.375%, 2/01/49
4,000 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/08 at 102.00 AAA 4,268,360
Revenue Bonds, Loretto Rest Residential Healthcare Facility,
Series 1997A, 5.600%, 8/01/17
27
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.7% (4.5% OF TOTAL INVESTMENTS)
$ 1,800 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A+ $ 1,958,904
Series 2004C, 5.250%, 8/15/16
1,600 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,740,512
Series 2006C, 5.000%, 8/01/16 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2005O:
2,500 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 2,701,825
2,500 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 2,689,350
1,000 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,076,810
Series 2005P, 5.000%, 8/01/18 - MBIA Insured
3,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 3,201,750
Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured
1,350 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,428,800
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Oneida County, New York, General Obligation Public
Improvement Bonds, Series 2000:
200 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 217,358
200 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 217,358
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
750 5.250%, 7/01/23 1/08 at 100.00 A3 780,053
500 5.250%, 7/01/24 1/08 at 100.00 A3 520,035
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.1% (18.4% OF TOTAL INVESTMENTS)
2,400 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 2,547,648
Series 2003A, 5.000%, 11/01/23
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,175 5.750%, 7/01/18 No Opt. Call AA- 2,503,925
2,000 5.125%, 1/01/29 7/12 at 100.00 AA- 2,104,180
1,300 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 1,351,597
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
5,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 5,409,700
2,500 5.000%, 11/15/30 11/12 at 100.00 AA- 2,586,900
1,680 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 1,759,867
Revenue Bonds, Series 2003, 5.500%, 1/01/34
2,665 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 2,795,692
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
Dormitory Authority of the State of New York, Lease Revenue
Bonds, Nassau County Board of Cooperative Educational
Services, Series 2001A:
1,265 5.250%, 8/15/17 - FSA Insured 8/11 at 100.00 AAA 1,373,537
1,385 5.250%, 8/15/18 - FSA Insured 8/11 at 100.00 AAA 1,503,833
250 Dormitory Authority of the State of New York, Department 7/15 at 100.00 AAA 263,092
of Health Revenue Bonds, Series 2005A, 5.000%, 7/01/25 -
CIFG Insured
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 2000D:
35 5.875%, 2/15/18 - FSA Insured 8/10 at 100.00 AAA 38,703
30 5.875%, 2/15/19 - FSA Insured 8/10 at 100.00 AAA 33,174
40 8/15/19 - FSA Insured 8/10 at 100.00 AAA 44,232
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,054,620
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
5,600 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 6,440,784
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
6,500 New York State Thruway Authority, State Personal Income 3/12 at 100.00 AA 6,919,315
Tax Revenue Bonds, Series 2002A, 5.125%, 3/15/21
2,500 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 2,673,875
Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/20 -
FSA Insured
4,000 New York State Urban Development Corporation, Service No Opt. Call AA- 4,345,600
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 1,000 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA $ 1,063,130
2,670 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,836,501
2,125 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,252,585
1,520 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,606,564
5,600 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 6,098,624
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/20 -
AMBAC Insured
3,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 3,274,860
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
3,480 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 3,910,754
Loan Note, Series 1999A, 6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.2% (8.9% OF TOTAL INVESTMENTS)
1,355 Albany Parking Authority, New York, Revenue Bonds, 10/11 at 101.00 BBB+ 1,440,216
Series 2001B, 5.250%, 10/15/12
1,500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 1,647,135
Transportation Revenue Bonds, Series 2003A,
5.000%, 11/15/15 - FGIC Insured
3,890 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 4,090,218
Transportation Revenue Bonds, Series 2005B,
5.000%, 11/15/35 - MBIA Insured
1,900 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 1,707,416
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
2,400 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,524,176
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
3,100 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,254,783
Series 2005G, 5.000%, 1/01/32 - FSA Insured
1,000 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 1,067,240
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
1,925 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 2,031,010
Revenue Bonds, One Hundred Twentieth Series 2000,
5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured
2,300 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 2,438,575
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - XLCA Insured
2,040 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102.00 CCC 1,532,693
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
2,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 2,094,340
Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/19
5,750 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 6,077,233
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
2,400 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 AAA 2,609,088
Lien General Purpose Revenue Refunding Bonds,
Series 2002E, 5.250%, 11/15/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 21.0% (14.2% OF TOTAL INVESTMENTS)
870 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 981,247
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded to 7/15/10)
Longwood Central School District, Suffolk County, New York,
Series 2000:
1,500 5.750%, 6/15/17 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,702,065
1,500 5.750%, 6/15/18 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,702,065
5,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 5,308,250
Tax Fund Bonds, Series 1998A, 4.500%, 4/01/18
(Pre-refunded to 10/01/15) - FGIC Insured
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
400 6.000%, 6/01/15 (Pre-refunded to 6/01/10) 6/10 at 101.00 BBB*** 448,280
725 6.150%, 6/01/25 (Pre-refunded to 6/01/10) 6/10 at 101.00 BBB*** 817,169
29
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,000 New York City Trust for Cultural Resources, New York, 7/19 at 100.00 AAA $ 1,085,060
Revenue Bonds, American Museum of Natural History,
Series 1999A, 5.750%, 7/01/29 (Pre-refunded to 7/01/19) -
AMBAC Insured
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities,
Series 2000D:
155 5.875%, 2/15/18 (Pre-refunded to 8/15/10) - FSA Insured 8/10 at 100.00 AAA 173,423
155 5.875%, 2/15/19 (Pre-refunded to 8/15/10) - FSA Insured 8/10 at 100.00 AAA 173,423
180 5.875%, 8/15/19 (Pre-refunded to 8/15/10) - FSA Insured 8/10 at 100.00 AAA 201,395
5,535 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,081,415
State University Educational Facilities, Series 2002A,
5.000%, 5/15/17 (Pre-refunded to 5/15/12) - FGIC Insured
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AA*** 1,342,464
State Personal Income Tax, Series 2003A, 5.375%, 3/15/22
(Pre-refunded to 3/15/13)
1,500 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,666,155
Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/22
(Pre-refunded to 4/01/13) - MBIA Insured
2,950 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AA*** 3,228,303
Income Tax Revenue Bonds, Series 2003B, 5.000%, 3/15/22
(Pre-refunded to 3/15/13)
New York State Urban Development Corporation, State Personal
Income Tax Revenue Bonds, State Facilities and Equipment, Series
2002A:
2,860 5.375%, 3/15/19 (Pre-refunded to 3/15/12) 3/12 at 100.00 AA*** 3,177,832
2,000 5.375%, 3/15/20 (Pre-refunded to 3/15/12) 3/12 at 100.00 AA*** 2,222,260
2,095 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,442,435
Water Treatment Plant Bonds, Series 1994, 8.000%, 11/01/09
(Alternative Minimum Tax) - MBIA Insured
1,785 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 2,007,964
Revenue Bonds, Series 2000B, 5.875%, 7/01/35 (Pre-refunded
to 7/01/10) - MBIA Insured
1,600 Triborough Bridge and Tunnel Authority, New York, General No Opt. Call AAA 1,762,912
Purpose Revenue Bonds, Series 1993B, 5.000%, 1/01/20
7,500 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 8,740,200
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded to 1/01/22)
3,000 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB*** 3,492,750
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded to 7/15/10)
2,520 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB-*** 2,929,828
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded
to 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.8% (8.0% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
1,650 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 1,735,322
2,500 5.250%, 12/01/26 6/08 at 101.00 A- 2,630,875
5,000 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 5,384,950
General Revenue Bonds, Series 2001A, 5.375%, 9/01/25
3,650 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 3,919,626
General Revenue Bonds, Series 2003C, 5.000%, 9/01/15 -
CIFG Insured
3,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 3,020,040
Revenue Bonds, Brooklyn Navy Yard Cogeneration Partners
LP, Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax)
4,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 4,223,160
Series 2000A, 5.250%, 11/15/40
2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 2,118,560
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara LP, Series 2001D,
5.550%, 11/15/24 (Mandatory put 11/15/15)
1,875 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,979,306
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
4,000 Suffolk County Industrial Development Agency, New York, 1/09 at 101.00 N/R 4,024,800
Revenue Bonds, Nissequogue Cogeneration Partners Facility,
Series 1998, 5.500%, 1/01/23 (Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.9% (6.7% OF TOTAL INVESTMENTS)
$ 700 Monroe County Water Authority, New York, Water System 8/11 at 101.00 AA $ 743,778
Revenue Bonds, Series 2001, 5.150%, 8/01/22
1,250 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 1,348,513
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000A, 5.500%, 6/15/32 - FGIC Insured
5,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA+ 5,435,550
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33
2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 2,208,520
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
2,495 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,795,024
Water and Sewerage System Revenue, Bonds Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
2,225 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA+ 2,441,025
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
120 New York State Environmental Facilities Corporation, State 11/06 at 100.00 AAA 122,786
Water Pollution Control Revolving Fund Pooled Revenue
Bonds, Series 1994D, 6.900%, 5/15/15
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, Pooled
Loan Issue, Series 2002F:
1,000 5.250%, 11/15/17 11/12 at 100.00 AAA 1,096,590
3,345 5.250%, 11/15/19 11/12 at 100.00 AAA 3,668,092
4,060 5.250%, 11/15/20 11/12 at 100.00 AAA 4,424,261
------------------------------------------------------------------------------------------------------------------------------------
$ 338,225 Total Long-Term Investments (cost $342,178,370) - 147.4% 363,075,598
=============----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2% (0.1% OF TOTAL INVESTMENTS)
500 Puerto Rico Government Development Bank, Adjustable VMIG-1 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 2.610%, 12/01/15 - MBIA Insured +
------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $342,678,370) - 147.6% 363,575,598
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 6,979,290
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.5)% (124,300,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 246,254,888
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Portion of security purchased on a delayed delivery
basis.
+ Security 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.
See accompanying notes to financial statements.
31
Nuveen New York Dividend Advantage Municipal Fund (NAN)
Portfolio of
INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 500 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 507,090
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.3% OF TOTAL INVESTMENTS)
915 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 947,913
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
565 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 582,814
Pass-Through Bonds, Series 2000, 5.800%, 6/01/23
485 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 497,576
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
400 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 409,128
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
2,250 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 BBB 2,390,513
Series 1999-1, 6.250%, 7/15/27
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.7% (11.5% OF TOTAL INVESTMENTS)
Kenmore Housing Authority, New York, Revenue Bonds, State
University of New York at Buffalo Student Apartment Project,
Series 1999A:
3,050 5.500%, 8/01/19 - RAAI Insured 8/09 at 102.00 AA 3,241,510
2,750 5.500%, 8/01/24 - RAAI Insured 8/09 at 102.00 AA 2,917,640
3,070 Monroe County Industrial Development Agency, New York, 6/09 at 102.00 AA 3,234,859
Civic Facility Revenue Bonds, St. John Fisher College,
Series 1999, 5.375%, 6/01/24 - RAAI Insured
500 New York City Trust for Cultural Resources, New York, Revenue 7/10 at 101.00 A 541,580
Bonds, Museum of American Folk Art, Series 2000,
6.000%, 7/01/22 - ACA Insured
330 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 339,029
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
1,800 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,869,786
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,101,110
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
845 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 968,319
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 540,140
Fashion Institute of Technology, Series 2000,
5.375%, 7/01/20 - FSA Insured
3,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 A+ 3,220,650
University of Rochester, Series 1999A, 5.500%, 7/01/16
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
1,750 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 1,923,128
750 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 823,643
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 1,370,388
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
1,500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 AA 1,627,185
Civic Facility Revenue Bonds, Niagara University, Series 2001A,
5.350%, 11/01/23 - RAAI Insured
600 Utica Industrial Development Agency, New York, Revenue Bonds, 6/09 at 101.00 N/R 639,024
Utica College, Series 2004A, 6.875%, 12/01/34
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 32.0% (22.0% OF TOTAL INVESTMENTS)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Medical Center, Series 1999:
$ 1,120 6.000%, 5/01/19 5/09 at 101.00 N/R $ 1,149,725
1,460 6.000%, 5/01/29 5/09 at 101.00 N/R 1,490,193
420 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 440,429
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
1,750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 1,898,908
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
250 Dormitory Authority of the State of New York, Revenue Bonds, 7/06 at 102.00 B2 247,045
Nyack Hospital, Series 1996, 6.250%, 7/01/13
Dormitory Authority of the State of New York, Insured Revenue
Bonds, Franciscan Health Partnership Obligated Group - Frances
Shervier Home and Hospital, Series 1997:
2,000 5.500%, 7/01/17 - RAAI Insured 7/07 at 102.00 AA 2,109,880
2,000 5.500%, 7/01/27 - RAAI Insured 7/07 at 102.00 AA 2,107,940
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AA 2,031,000
Nursing Home Mortgage Revenue Bonds, Gurwin Jewish
Geriatric Center of Long Island, Series 2005A, 4.900%, 2/15/41
250 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 Ba1 253,768
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
625 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 656,106
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
2,460 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,694,069
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 625,890
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 527,860
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
Dormitory Authority of the State of New York, FHA-Insured
Mortgage Hospital Revenue Bonds, Victory Memorial Hospital,
Series 1999:
2,165 5.250%, 8/01/15 - MBIA Insured 8/09 at 101.00 AAA 2,281,455
2,000 5.375%, 8/01/25 - MBIA Insured 8/09 at 101.00 AAA 2,139,020
4,850 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 5,128,002
Revenue Refunding Bonds, Wyckoff Heights Medical Center,
Series 1998H, 5.300%, 8/15/21 - MBIA Insured
2,480 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 101.00 AAA 2,639,514
Mortgage Hospital Revenue Bonds, Memorial Hospital of
William F. and Gertrude F. Jones Inc., Series 1999,
5.250%, 8/01/19 - MBIA Insured
4,825 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 5,183,980
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.450%, 8/01/29 - AMBAC Insured
1,575 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 1,665,279
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
2,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 2,201,240
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
4,000 Ulster County Industrial Development Agency, New York, Civic 11/09 at 101.00 A2 4,170,560
Facility Revenue Bonds, Kingston Hospital, Series 1999,
5.650%, 11/15/24
3,825 Yates County Industrial Development Agency, New York, 8/09 at 101.00 AA+ 4,142,475
FHA-Insured Civic Facility Mortgage Revenue Bonds, Soldiers
and Sailors Memorial Hospital, Series 1999A, 5.650%, 2/01/39
650 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 BB 676,650
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.7% (3.9% OF TOTAL INVESTMENTS)
2,585 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 2,730,897
Capital Fund Program Revenue Bonds, Series 2005A,
5.000%, 7/01/25 - FGIC Insured
920 New York City Housing Development Corporation, New York, 10/05 at 100.00 AA 966,800
Multifamily Housing Revenue Bonds, Series 2000A,
5.850%, 11/01/20 (Alternative Minimum Tax) (Pre-refunded
to 10/27/05)
3,000 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 3,108,690
Multifamily Housing Revenue Bonds, Series 2001A,
5.500%, 11/01/31
33
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 750 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA $ 783,143
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
680 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 679,973
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.6% (1.8% OF TOTAL INVESTMENTS)
645 Guam Housing Corporation, Mortgage-Backed Securities No Opt. Call AAA 717,840
Program Single Family Mortgage Revenue Bonds,
Series 1998A, 5.750%, 9/01/31 (Alternative Minimum Tax)
2,110 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 2,151,841
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 849,937
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.8% (3.3% OF TOTAL INVESTMENTS)
Appleridge Retirement Community Inc., New York, GNMA
Collateralized Mortgage Revenue Bonds, Series 1999:
1,150 5.700%, 9/01/31 9/09 at 102.00 Aaa 1,259,768
1,250 5.750%, 9/01/41 9/09 at 102.00 Aaa 1,371,300
665 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R 717,296
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2000, 8.125%, 7/01/19
750 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 787,905
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001A-1, 7.250%, 7/01/16
190 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 192,297
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
2,570 Yonkers Industrial Development Agency, New York, FHA-Insured 2/09 at 101.00 AAA 2,687,732
Mortgage Revenue Bonds, Michael Malotz Skilled Nursing
Pavilion, Series 1999, 5.450%, 2/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.9% (8.2% OF TOTAL INVESTMENTS)
1,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 1,088,280
Fiscal Series 2004C, 5.250%, 8/15/16
1,125 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,223,798
Series 2006C, 5.000%, 8/01/16 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2005O:
1,500 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 1,621,095
1,500 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 1,613,610
600 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 646,086
Series 2005P, 5.000%, 8/01/18 - MBIA Insured
4,950 New York City, New York, General Obligation Bonds, Fiscal 5/09 at 101.00 AAA 5,193,392
Series 1999J, 5.125%, 5/15/29 - MBIA Insured
800 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 846,696
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Rochester, New York, General Obligation Bonds, Series 1999:
720 5.250%, 10/01/18 - MBIA Insured No Opt. Call AAA 812,513
720 5.250%, 10/01/19 - MBIA Insured No Opt. Call AAA 813,708
2,280 Rockland County, New York, General Obligation Bonds, 10/09 at 101.00 AA- 2,502,756
Series 1999, 5.600%, 10/15/16
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
500 5.250%, 7/01/23 1/08 at 100.00 A3 520,035
500 5.250%, 7/01/24 1/08 at 100.00 A3 520,035
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.6% (18.3% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,099,370
Series 2003A, 5.250%, 11/01/21
1,155 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue 9/15 at 100.00 AAA 1,242,399
State Aid Secured Bonds, Series 2005A, 5.000%, 9/01/18 -
MBIA Insured
550 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 626,197
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
$ 1,700 5.750%, 1/01/17 No Opt. Call AA- $ 1,941,638
1,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,052,090
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,163,880
2,000 5.000%, 11/15/30 11/12 at 100.00 AA- 2,069,520
1,130 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 1,183,720
Revenue Bonds, Series 2003, 5.500%, 1/01/34
2,180 Nassau County Interim Finance Authority, New York, Sales and No Opt. Call AAA 2,410,818
Use Tax Revenue Bonds, Series 2004H, 5.250%, 11/15/13 -
AMBAC Insured
1,670 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,751,897
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
590 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 AAA 638,870
Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 -
CIFG Insured
35 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 38,703
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.875%, 8/15/18 - FSA Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,054,620
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
1,000 Dormitory Authority of the State of New York, Service Contract 4/12 at 100.00 AA- 1,068,310
Bonds, Child Care Facilities Development Program,
Series 2002, 5.375%, 4/01/19
3,400 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 3,910,476
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
1,385 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 1,481,327
Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/20 -
FSA Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
1,000 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,063,130
1,100 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,168,596
810 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 858,632
1,875 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,981,781
3,345 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 3,609,288
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.250%, 10/15/15 - AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
2,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 2,178,080
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 2,168,420
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,091,620
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 842,835
Loan Note, Series 1999A, 6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.1% (8.4% OF TOTAL INVESTMENTS)
700 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 745,668
Series 2001A, 5.625%, 7/15/25
1,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 1,072,820
Transportation Revenue Refunding Bonds, Series 2002A,
5.125%, 11/15/22 - FGIC Insured
2,280 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 2,397,352
Transportation Revenue Bonds, Series 2005B,
5.000%, 11/15/35 - MBIA Insured
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 951,680
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
625 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 657,338
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
2,100 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 2,204,853
Series 2005G, 5.000%, 1/01/32 - FSA Insured
35
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA $ 533,620
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
3,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,165,210
Revenue Bonds, One Hundred Twentieth Series 2000,
5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
800 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 866,024
1,300 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,378,325
1,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 1,087,210
Purpose Revenue Bonds, Series 2001A, 5.250%, 1/01/16
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,642,275
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 15.4% (10.6% OF TOTAL INVESTMENTS)
525 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 592,132
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded to 7/15/10)
1,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 1,313,125
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured
5,520 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 6,176,770
Tax Fund Bonds, Series 1999A, 5.250%, 4/01/23 (Pre-refunded
to 10/01/14) - FSA Insured
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
265 6.000%, 6/01/15 (Pre-refunded to 6/01/10) 6/10 at 101.00 BBB*** 296,985
1,665 6.150%, 6/01/25 (Pre-refunded to 6/01/10) 6/10 at 101.00 BBB*** 1,876,671
50 New York City, New York, General Obligation Bonds, 5/09 at 101.00 AAA 53,919
Fiscal Series 1999J, 5.125%, 5/15/29 (Pre-refunded to
5/15/09) - MBIA Insured
175 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 195,801
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.875%, 8/15/18 (Pre-refunded to 8/15/10) -
FSA Insured
600 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AA*** 671,232
State Personal Income Tax, Series 2003A, 5.375%, 3/15/22
(Pre-refunded to 3/15/13)
1,000 New York State Thruway Authority, Highway and Bridge 4/13 at 100.00 AAA 1,110,770
Trust Fund Bonds, Second General, Series 2003A,
5.250%, 4/01/23 (Pre-refunded to 4/01/13) - MBIA Insured
2,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 2,192,020
Fund Bonds, Second General, Series 2004, 5.000%, 4/01/20
(Pre-refunded to 4/01/14) - MBIA Insured
1,000 New York State Urban Development Corporation, State 3/12 at 100.00 AA*** 1,096,760
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002A, 5.125%, 3/15/27 (Pre-refunded
to 3/15/12)
Rye City School District, Westchester County, New York,
General Obligation Bonds, Series 1999:
130 5.600%, 8/15/17 (Pre-refunded to 8/15/08) 8/08 at 101.00 Aaa 140,395
140 5.600%, 8/15/18 (Pre-refunded to 8/15/08) 8/08 at 101.00 Aaa 151,194
140 5.600%, 8/15/19 (Pre-refunded to 8/15/08) 8/08 at 101.00 Aaa 151,194
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 Aa2*** 3,408,120
Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28
(Pre-refunded to 1/01/22)
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB*** 1,455,313
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded to 7/15/10)
1,400 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB-*** 1,627,682
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded
to 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.0% (6.9% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
2,300 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 2,418,933
4,575 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 4,826,030
2,000 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 2,147,740
General Revenue Bonds, Series 2003C, 5.000%, 9/01/15 -
CIFG Insured
2,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 2,126,340
Series 2000A, 5.250%, 11/15/30
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 600 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 $ 644,100
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara LP, Series 2001B,
5.550%, 11/15/24 (Alternative Minimum Tax) (Mandatory
put 11/15/13)
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 266,593
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001C,
5.625%, 11/15/24 (Alternative Minimum Tax) (Mandatory
put 11/15/14)
1,065 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,124,244
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
955 Suffolk County Industrial Development Agency, New York, No Opt. Call N/R 974,940
Revenue Bonds, Nissequogue Cogeneration Partners Facility,
Series 1998, 4.875%, 1/01/08 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.8% (2.6% OF TOTAL INVESTMENTS)
2,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA+ 2,174,220
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33
1,130 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA+ 1,239,710
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
1,955 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 2,143,831
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 197,335 Total Long-Term Investments (cost $199,589,425) - 145.2% 211,556,792
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 3,144,232
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.4)% (69,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 145,701,024
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
37
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK)
Portfolio of
INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 278,900
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.5% (4.6% OF TOTAL INVESTMENTS)
480 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 492,446
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 528,990
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
245 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 250,591
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
5,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 BBB 5,312,250
Series 1999-1, 6.250%, 7/15/27
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.8% (11.2% OF TOTAL INVESTMENTS)
2,750 Albany Industrial Development Agency, New York, Revenue 7/11 at 101.00 Aaa 2,955,232
Bonds, St. Rose College, Series 2001A, 5.375%, 7/01/31 -
AMBAC Insured
1,975 Amherst Industrial Development Agency, New York, Revenue 8/11 at 102.00 AAA 2,123,105
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Village Green Project, Series 2001A, 5.250%, 8/01/31 -
AMBAC Insured
2,190 Monroe County Industrial Development Agency, New York, 6/11 at 102.00 AA 2,317,962
Civic Facility Revenue Bonds, St. John Fisher College,
Series 2001, 5.250%, 6/01/26 - RAAI Insured
245 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 251,703
Civic Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,142,647
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,101,110
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
2,000 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,098,300
Bonds, New York Medical College, Series 1998,
5.000%, 7/01/21 - MBIA Insured
1,265 Dormitory Authority of the State of New York, Third General 7/08 at 102.00 AAA 1,342,722
Resolution Consolidated Revenue Bonds, City University
System, Series 1998-1, 5.250%, 7/01/25 - FGIC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 572,970
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,070,290
Canisius College, Series 2000, 5.250%, 7/01/30 -
MBIA Insured
900 Utica Industrial Development Agency, New York, Revenue 6/09 at 101.00 N/R 958,536
Bonds, Utica College, Series 2004A, 6.875%, 12/01/34
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.4% (12.4% OF TOTAL INVESTMENTS)
290 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 304,106
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
760 Nassau County Industrial Development Agency, New York, No Opt. Call A3 827,708
Revenue Refunding Bonds, North Shore Health System
Obligated Group, Series 2001B, 5.875%, 11/01/11
850 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 A2 886,933
Health System Revenue Bonds, Series 1999A,
5.250%, 2/15/17
500 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 542,545
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 500 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 $ 498,105
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
500 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 498,120
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
Dormitory Authority of the State of New York, Revenue Bonds,
Nyack Hospital, Series 1996:
115 6.000%, 7/01/06 7/06 at 102.00 B2 115,712
100 6.250%, 7/01/13 7/06 at 102.00 B2 98,818
1,500 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 1,593,990
Mortgage Revenue Refunding Bonds, United Health Services,
Series 1997, 5.375%, 8/01/27 - AMBAC Insured
500 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AA 527,470
Bonds, Franciscan Health Partnership Obligated Group -
Frances Shervier Home and Hospital, Series 1997,
5.500%, 7/01/17 - RAAI Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 Ba1 1,268,838
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
860 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 904,152
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/28 - FGIC Insured
1,240 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,357,986
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 521,575
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
3,000 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 3,233,010
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
2,505 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 2,707,103
Mortgage Revenue Bonds, New York Hospital Medical
Center of Queens, Series 1999, 5.550%, 8/15/29 -
AMBAC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba2 517,175
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
Suffolk County Industrial Development Agency, New York,
Revenue Bonds, Huntington Hospital, Series 2002C:
425 6.000%, 11/01/22 11/12 at 100.00 Baa1 456,760
610 5.875%, 11/01/32 11/12 at 100.00 Baa1 643,349
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.8% (2.0% OF TOTAL INVESTMENTS)
160 New York City Housing Development Corporation, New York, 5/11 at 101.00 Aa2 167,603
Multifamily Housing Revenue Bonds, Series 2001B,
5.250%, 11/01/16
1,000 New York City Housing Development Corporation, New York, 11/11 at 100.00 AA 1,027,530
Multifamily Housing Revenue Bonds, Series 2001C-2,
5.400%, 11/01/33 (Alternative Minimum Tax)
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
455 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 472,463
225 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 232,830
500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 522,095
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
440 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 439,982
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.5% (1.2% OF TOTAL INVESTMENTS)
1,490 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 1,519,547
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.0% (2.1% OF TOTAL INVESTMENTS)
525 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 551,534
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001A-1, 7.250%, 7/01/16
39
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Dormitory Authority of the State of New York, Revenue Bonds,
Providence Rest, Series 2005:
$ 50 5.125%, 7/01/30 - ACA Insured 7/15 at 100.00 A $ 51,192
135 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 A 136,632
2,150 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 AAA 2,269,669
Bonds, Rehabilitation Association Pooled Loan Program 1,
Series 2001A, 5.000%, 7/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.9% (8.4% OF TOTAL INVESTMENTS)
1,775 Bath Central School District, Steuben County, New York, 6/12 at 100.00 AAA 1,754,872
General Obligation Bonds, Series 2002, 4.000%, 6/15/18 -
FGIC Insured
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A+ 816,210
Series 2004C, 5.250%, 8/15/16
750 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 815,865
Series 2006C, 5.000%, 8/01/16 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2005O:
750 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 810,547
750 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 806,805
400 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 430,724
Series 2005P, 5.000%, 8/01/18 - MBIA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 2,134,500
Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured
3,630 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 3,850,014
Series 1998H, 5.375%, 8/01/27 - MBIA Insured
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
250 5.250%, 7/01/23 1/08 at 100.00 A3 260,018
250 5.250%, 7/01/24 1/08 at 100.00 A3 260,018
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.3% (17.9% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,099,370
Series 2003A, 5.250%, 11/01/21
1,000 Metropolitan Transportation Authority, New York, State Service No Opt. Call AA- 1,142,140
Contract Refunding Bonds, Series 2002A, 5.750%, 1/01/17
1,750 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 1,893,395
Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 586,622
Revenue Bonds, Series 2003, 5.500%, 1/01/34
1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,058,610
Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,049,040
Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,054,620
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
New York State Municipal Bond Bank Agency, Buffalo, Special
Program Revenue Bonds, Series 2001A:
1,070 5.250%, 5/15/23 - AMBAC Insured 5/11 at 100.00 AAA 1,146,184
1,125 5.250%, 5/15/24 - AMBAC Insured 5/11 at 100.00 AAA 1,205,100
Dormitory Authority of the State of New York, Service Contract
Bonds, Child Care Facilities Development Program, Series 2002:
1,905 5.375%, 4/01/17 4/12 at 100.00 AA- 2,042,979
1,000 5.375%, 4/01/19 4/12 at 100.00 AA- 1,068,310
2,300 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 2,645,322
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,060,740
Fund Bonds, Second General, Series 2004, 5.000%, 4/01/21 -
MBIA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 1,140 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA $ 1,211,090
835 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 885,133
500 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 528,475
2,100 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 2,276,841
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/22 -
AMBAC Insured
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,091,620
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
2,250 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 BBB 2,350,530
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.1% (12.2% OF TOTAL INVESTMENTS)
2,000 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 2,137,880
Series 2001A, 5.625%, 7/15/20
1,000 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 1,051,470
Revenue Bonds, Series 2005B, 5.000%, 11/15/35 -
MBIA Insured
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 CCC 951,680
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
375 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 394,403
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
1,300 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,364,909
Series 2005G, 5.000%, 1/01/32 - FSA Insured
3,400 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 3,628,616
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
2,195 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 2,297,594
Revenue Bonds, One Hundred Twentieth Series 2000,
5.500%, 10/15/35 (Alternative Minimum Tax) - MBIA Insured
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
750 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 811,898
1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,060,250
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,642,275
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 902,616
Lien General Purpose Revenue Refunding Bonds,
Series 2002E, 5.500%, 11/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 14.4% (10.2% OF TOTAL INVESTMENTS)
2,750 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 3,024,945
Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded
to 10/01/14) - FSA Insured
370 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 396,814
Series 1998H, 5.375%, 8/01/27 (Pre-refunded to 8/01/08) -
MBIA Insured
400 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AA*** 447,488
State Personal Income Tax, Series 2003A, 5.375%, 3/15/22
(Pre-refunded to 3/15/13)
4,205 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 4,579,539
Contract Revenue Bonds, Correctional Facilities, Series 2000C,
5.125%, 1/01/21 (Pre-refunded to 1/01/11) - FSA Insured
2,500 New York State Urban Development Corporation, State 3/12 at 100.00 AA*** 2,741,900
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002A, 5.125%, 3/15/27 (Pre-refunded
to 3/15/12)
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/11 at 100.00 AAA 3,277,980
Purpose Revenue Bonds, Series 1996B, 5.200%, 1/01/22
(Pre-refunded to 1/01/11)
41
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.1% (11.4% OF TOTAL INVESTMENTS)
$ 5,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA $ 5,274,350
Revenue Bonds, Series 1998A, 5.250%, 12/01/26 -
AMBAC Insured
1,500 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- 1,575,615
Revenue Bonds, Series 2001L, 5.375%, 5/01/33
1,500 Long Island Power Authority, New York, Electric System General 9/13 at 100.00 AAA 1,610,805
Revenue Bonds, Series 2003C, 5.000%, 9/01/15 - CIFG Insured
1,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 1,006,680
Revenue Bonds, Brooklyn Navy Yard Cogeneration Partners LP,
Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax)
2,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 2,111,580
Series 2000A, 5.250%, 11/15/40
450 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 478,178
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Alternative Minimum Tax) (Mandatory
put 11/15/12)
2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 2,118,560
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara LP, Series 2001D,
5.550%, 11/15/24 (Mandatory put 11/15/15)
Suffolk County Industrial Development Agency, New York, Revenue
Bonds, Nissequogue Cogeneration Partners Facility, Series 1998:
1,250 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,260,150
750 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 754,650
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.7% (6.2% OF TOTAL INVESTMENTS)
6,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA+ 6,522,660
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33
1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 1,104,260
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
1,000 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 1,096,590
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 132,875 Total Long-Term Investments (cost $135,063,835) - 140.8% 141,654,315
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.9% 5,952,133
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.7)% (47,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 100,606,448
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
42
Statement of
ASSETS AND LIABILITIES September 30, 2005
NEW YORK NEW YORK
NEW YORK NEW YORK DIVIDEND DIVIDEND
VALUE PERFORMANCE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $142,161,291,
$342,678,370, $199,589,425
and $135,063,835, respectively) $150,387,656 $363,575,598 $211,556,792 $141,654,315
Cash -- 2,576,828 208,369 424,186
Receivables:
Interest 2,096,247 5,133,054 3,052,307 2,002,085
Investments sold -- 80,009 35,066 3,592,845
Other assets 3,749 40,720 11,237 7,079
------------------------------------------------------------------------------------------------------------------------------------
Total assets 152,487,652 371,406,209 214,863,771 147,680,510
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 135,577 -- -- --
Payable for investments purchased -- 541,616 -- --
Accrued expenses:
Management fees 69,056 192,140 77,100 41,252
Other 47,189 91,681 62,955 25,731
Preferred share dividends payable N/A 25,884 22,692 7,079
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 251,822 851,321 162,747 74,062
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value N/A 124,300,000 69,000,000 47,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $152,235,830 $246,254,888 $145,701,024 $100,606,448
====================================================================================================================================
Common shares outstanding 15,120,364 14,977,135 9,202,048 6,460,630
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 10.07 $ 16.44 $ 15.83 $ 15.57
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 151,204 $ 149,771 $ 92,020 $ 64,606
Paid-in surplus 144,256,690 218,126,391 130,644,900 91,711,912
Undistributed net investment income 226,770 1,858,442 1,013,776 724,270
Accumulated net realized gain (loss) from investments (625,199) 5,223,056 1,982,961 1,515,180
Net unrealized appreciation of investments 8,226,365 20,897,228 11,967,367 6,590,480
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $152,235,830 $246,254,888 $145,701,024 $100,606,448
====================================================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 Unlimited Unlimited
Preferred N/A 1,000,000 Unlimited Unlimited
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
43
Statement of
OPERATIONS Year Ended September 30, 2005
NEW YORK NEW YORK
NEW YORK NEW YORK DIVIDEND DIVIDEND
VALUE PERFORMANCE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $7,770,383 $18,727,206 $10,659,025 $7,272,620
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 838,823 2,339,616 1,368,988 947,542
Preferred shares - auction fees N/A 310,750 172,500 117,500
Preferred shares - dividend disbursing agent fees N/A 40,000 10,000 10,000
Shareholders' servicing agent fees and expenses 45,137 43,907 4,576 1,707
Custodian's fees and expenses 45,135 88,314 58,987 43,480
Directors'/Trustees' fees and expenses 2,700 7,116 3,786 2,607
Professional fees 9,877 23,487 17,654 14,330
Shareholders' reports - printing and mailing expenses 23,801 31,917 12,238 14,000
Stock exchange listing fees 10,513 10,564 10,540 550
Investor relations expense 25,504 50,364 26,301 20,105
Other expenses 7,555 31,708 13,680 17,341
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 1,009,045 2,977,743 1,699,250 1,189,162
Custodian fee credit (9,981) (11,511) (13,145) (8,840)
Expense reimbursement -- -- (519,873) (444,460)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 999,064 2,966,232 1,166,232 735,862
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,771,319 15,760,974 9,492,793 6,536,758
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from investments 1,440,260 5,223,289 3,413,773 1,513,468
Change in net unrealized appreciation (depreciation)
of investments (830,389) (3,719,101) (2,619,438) (816,269)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 609,871 1,504,188 794,335 697,199
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A (2,030,536) (1,210,994) (824,602)
From accumulated net realized gains from investments N/A (72,204) -- (26,248)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Preferred shareholders N/A (2,102,740) (1,210,994) (850,850)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $7,381,190 $15,162,422 $ 9,076,134 $6,383,107
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
44
Statement of
CHANGES IN NET ASSETS
NEW YORK VALUE (NNY) NEW YORK PERFORMANCE PLUS (NNP)
------------------------------ -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,771,319 $ 6,798,666 $ 15,760,974 $ 16,134,725
Net realized gain from investments 1,440,260 132,488 5,223,289 1,824,681
Change in net unrealized appreciation
(depreciation) of investments (830,389) 466,990 (3,719,101) 1,127,468
Distributions to Preferred Shareholders:
From net investment income N/A N/A (2,030,536) (886,866)
From accumulated net realized gains from investments N/A N/A (72,204) (186,069)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 7,381,190 7,398,144 15,162,422 18,013,939
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,459,423) (6,501,758) (14,852,006) (15,189,215)
From accumulated net realized gains from investments -- -- (1,194,491) (3,791,706)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (6,459,423) (6,501,758) (16,046,497) (18,980,921)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- -- 329,405
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common Shares
from capital share transactions -- -- -- 329,405
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 921,767 896,386 (884,075) (637,577)
Net assets applicable to Common
shares at the beginning of year 151,314,063 150,417,677 247,138,963 247,776,540
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $152,235,830 $151,314,063 $246,254,888 $247,138,963
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 226,770 $ (79,491) $ 1,858,442 $ 2,987,290
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
45
Statement of
CHANGES IN NET ASSETS (continued)
NEW YORK NEW YORK
DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK)
----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,492,793 $ 9,791,179 $ 6,536,758 $ 6,612,378
Net realized gain from investments 3,413,773 668,102 1,513,468 445,277
Change in net unrealized appreciation
(depreciation) of investments (2,619,438) 788,470 (816,269) 840,985
Distributions to Preferred Shareholders:
From net investment income (1,210,994) (594,153) (824,602) (401,396)
From accumulated net realized gains from investments -- -- (26,248) (19,972)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 9,076,134 10,653,598 6,383,107 7,477,272
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,067,881) (9,100,079) (6,141,020) (6,159,904)
From accumulated net realized gains from investments -- -- (399,692) (312,224)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (9,067,881) (9,100,079) (6,540,712) (6,472,128)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 100,992 152,416 57,704 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common Shares
from capital share transactions 100,992 152,416 57,704 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 109,245 1,705,935 (99,901) 1,005,144
Net assets applicable to Common
shares at the beginning of year 145,591,779 143,885,844 100,706,349 99,701,205
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $145,701,024 $145,591,779 $100,606,448 $100,706,349
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 1,013,776 $ 1,857,724 $ 724,270 $ 1,155,577
====================================================================================================================================
See accompanying notes to financial statements.
46
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The New York funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New York Municipal Value Fund,
Inc. (NNY), Nuveen New York Performance Plus Municipal Fund, Inc. (NNP), Nuveen
New York Dividend Advantage Municipal Fund (NAN) and Nuveen New York Dividend
Advantage Municipal Fund 2 (NXK). All of the Funds' Common shares trade on the
New York Stock Exchange, with the exception of New York Dividend Advantage 2's
(NXK) Common shares which trade on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end
management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
New York state income taxes by investing primarily in a diversified portfolio of
municipal obligations issued by state and local government authorities within
the state of New York or certain U.S. territories.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Funds' Board of Directors/Trustees. 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 security, the Board of Directors/Trustees of the Funds,
or its designee, may establish fair market value using a wide variety of market
data including yields or prices of municipal bonds of comparable quality, type
of issue, coupon, maturity and rating, market quotes or indications of value
from securities dealers, evaluations of anticipated cash flows or collateral,
general market conditions and other information and analysis, including the
obligor's credit characteristics considered relevant by the pricing service of
the Board of Directors'/Trustees' designee. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
securities are valued at amortized cost, which approximates market value.
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 or 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 and delayed delivery purchase commitments. At September 30, 2005,
New York Performance Plus (NNP) had outstanding delayed delivery purchase
commitments of $541,616. There were no such outstanding purchase commitments in
any of the other Funds.
47
Notes to
FINANCIAL STATEMENTS (continued)
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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all 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 and New York state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. All monthly tax-exempt income dividends paid during the fiscal
year ended September 30, 2005, have been designated Exempt Interest Dividends.
Net realized capital gains and ordinary income distributions paid by the Funds
are subject to federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
New York Value (NNY) is not authorized to issue Preferred shares. The Funds
below 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 one or more 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.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
NEW YORK NEW YORK NEW YORK
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 2
(NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Number of shares:
Series M 1,600 -- --
Series T 800 -- --
Series W 2,000 -- 1,880
Series TH -- -- --
Series F 572 2,760 --
--------------------------------------------------------------------------------
Total 4,972 2,760 1,880
================================================================================
48
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the year ended September 30, 2005.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
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 U.S. 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. FUND SHARES
Transactions in Common shares were as follows:
NEW YORK
NEW YORK VALUE (NNY) PERFORMANCE PLUS (NNP)
------------------------ ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
----------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- -- 19,528
================================================================================================================
NEW YORK NEW YORK
DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK)
------------------------ ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
----------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 6,166 9,362 3,630 --
================================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended September 30, 2005, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Purchases $30,131,499 $59,586,483 $42,404,353 $28,018,987
Sales and maturities 26,796,727 63,352,801 42,065,847 32,002,641
================================================================================
49
Notes to
FINANCIAL STATEMENTS (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At September 30, 2005, the cost of investments was as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Cost of investments $141,932,975 $342,395,212 $199,516,598 $135,021,784
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2005, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $8,737,310 $22,260,949 $12,254,287 $6,793,839
Depreciation (282,629) (1,080,563) (214,093) (161,308)
--------------------------------------------------------------------------------
Net unrealized
appreciation of
investments $8,454,681 $21,180,386 $12,040,194 $6,632,531
================================================================================
The tax components of undistributed net investment income and net realized gains
at September 30, 2005, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Undistributed net
tax-exempt income * $535,229 $2,747,947 $1,686,003 $1,162,793
Undistributed net
ordinary income ** -- 21,435 -- 30,315
Undistributed net
long-term capital gains -- 5,223,056 1,982,961 1,502,376
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on September 1, 2005, paid on October 3, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
50
The tax character of distributions paid during the fiscal years ended September
30, 2005 and September 30, 2004, was designated for purposes of the dividends
paid deduction as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2005 (NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Distributions from net
tax-exempt income $6,441,278 $16,930,267 $10,302,766 $6,979,318
Distributions from
net ordinary income ** 17,730 34,069 -- 3,548
Distributions from net
long-term capital gains -- 1,266,695 -- 425,821
================================================================================
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2004 (NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Distributions from net
tax-exempt income $6,531,999 $16,052,941 $9,686,993 $6,562,486
Distributions from net
ordinary income ** -- 11,164 -- 5,285
Distributions from net
long-term capital gains -- 3,977,775 -- 328,604
================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At September 30, 2005, New York Value (NNY) had unused capital loss
carryforwards of $625,199 available for federal income tax purposes to be
applied against future capital gains, if any. If not applied the carryforwards
will expire in 2012.
5. MANAGEMENT FEE 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.
New York Value (NNY) pays an annual fund-level fee, payable monthly, of .15% of
the average daily net assets of the Fund, as well as 4.125% of the gross
interest income of the Fund.
The annual fund-level fee, payable monthly, for each Fund (excluding New York
Value (NNY)) is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS NEW YORK PERFORMANCE PLUS (NNP)
ATTRIBUTABLE TO PREFERRED SHARES) 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
================================================================================
51
Notes to
FINANCIAL STATEMENTS (continued)
AVERAGE DAILY NET ASSETS NEW YORK DIVIDEND ADVANTAGE (NAN)
(INCLUDING NET ASSETS NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
ATTRIBUTABLE TO PREFERRED SHARES) 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 net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of September 30, 2005, the complex-level fee rate was .1898%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. 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.
52
For the first ten years of New York Dividend Advantage's (NAN) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage (NAN) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of New York Dividend Advantage 2's (NXK) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage 2 (NXK) for
any portion of its fees and expenses beyond March 31, 2011.
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Directors/Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
53
Notes to
FINANCIAL STATEMENTS (continued)
7. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on November 1, 2005, to shareholders of record
on October 15, 2005, as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Dividend per share $.0355 $.0780 $.0785 $.0760
================================================================================
54
Financial
HIGHLIGHTS
55
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from From Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW YORK VALUE (NNY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 $10.01 $ .45 $ .04 $N/A $N/A $.49 $ (.43) $ -- $ (.43)
2004 9.95 .45 .04 N/A N/A .49 (.43) -- (.43)
2003 10.16 .44 (.19) N/A N/A .25 (.46) -- (.46)
2002 9.86 .47 .32 N/A N/A .79 (.49) -- (.49)
2001 9.51 .50 .36 N/A N/A .86 (.51) -- (.51)
NEW YORK PERFORMANCE
PLUS (NNP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 16.50 1.05 .10 (.14) -- 1.01 (.99) (.08) (1.07)
2004 16.57 1.08 .18 (.06) (.01) 1.19 (1.01) (.25) (1.26)
2003 17.11 1.10 (.34) (.06) (.02) .68 (.99) (.23) (1.22)
2002 15.95 1.13 1.07 (.11) -- 2.09 (.93) -- (.93)
2001 14.67 1.16 1.26 (.26) -- 2.16 (.88) -- (.88)
NEW YORK DIVIDEND
ADVANTAGE (NAN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 15.83 1.03 .09 (.13) -- .99 (.99) -- (.99)
2004 15.66 1.06 .16 (.06) -- 1.16 (.99) -- (.99)
2003 15.85 1.07 (.24) (.07) -- .76 (.95) -- (.95)
2002 14.86 1.07 .89 (.11) -- 1.85 (.86) -- (.86)
2001 13.42 1.08 1.40 (.24) -- 2.24 (.80) -- (.80)
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 15.60 1.01 .10 (.13) -- .98 (.95) (.06) (1.01)
2004 15.44 1.02 .20 (.06) -- 1.16 (.95) (.05) (1.00)
2003 15.62 1.04 (.18) (.07) (.01) .78 (.91) (.06) (.97)
2002 14.55 1.04 .99 (.11) -- 1.92 (.85) -- (.85)
2001(a) 14.33 .44 .33 (.07) -- .70 (.35) -- (.35)
====================================================================================================================================
Total Returns
--------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==========================================================================================
NEW YORK VALUE (NNY)
------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 $ -- $10.07 $ 9.26 5.88% 4.95%
2004 -- 10.01 9.15 5.29 5.04
2003 -- 9.95 9.11 1.65 2.59
2002 -- 10.16 9.42 4.55 8.26
2001 -- 9.86 9.49 14.66 9.23
NEW YORK PERFORMANCE
PLUS (NNP)
------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 -- 16.44 16.01 9.37 6.29
2004 -- 16.50 15.66 8.19 7.55
2003 -- 16.57 15.66 1.88 4.25
2002 -- 17.11 16.60 14.44 13.65
2001 -- 15.95 15.39 15.56 15.01
NEW YORK DIVIDEND
ADVANTAGE (NAN)
------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 -- 15.83 16.11 14.24 6.38
2004 -- 15.83 15.01 6.13 7.68
2003 -- 15.66 15.09 3.86 5.04
2002 -- 15.85 15.47 13.57 12.95
2001 -- 14.86 14.44 24.06 16.98
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 -- 15.57 15.34 10.61 6.45
2004 -- 15.60 14.82 9.02 7.80
2003 .01 15.44 14.55 5.35 5.39
2002 -- 15.62 14.78 8.48 13.67
2001(a) (.13) 14.55 14.46 (1.29) 4.02
==========================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------ ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
================================================================================================================================
NEW YORK VALUE (NNY)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 $152,236 .66% 4.44% .66% 4.45% 18%
2004 151,314 .72 4.52 .72 4.52 9
2003 150,418 .88 4.37 .87 4.38 10
2002 153,580 .79 4.76 .78 4.76 11
2001 149,138 .76 5.13 .74 5.15 23
NEW YORK PERFORMANCE
PLUS (NNP)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 246,255 1.20 6.36 1.20 6.37 16
2004 247,139 1.21 6.58 1.21 6.59 5
2003 247,777 1.22 6.67 1.21 6.67 14
2002 255,890 1.24 7.08 1.23 7.09 19
2001 238,599 1.29 7.47 1.28 7.49 19
NEW YORK DIVIDEND
ADVANTAGE (NAN)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 145,701 1.16 6.13 .80 6.50 20
2004 145,592 1.17 6.38 .74 6.81 8
2003 143,886 1.19 6.50 .74 6.95 8
2002 145,599 1.21 6.76 .75 7.22 11
2001 136,441 1.25 7.01 .78 7.49 18
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2005 100,606 1.18 6.01 .73 6.46 19
2004 100,706 1.17 6.19 .72 6.64 7
2003 99,701 1.19 6.41 .75 6.85 8
2002 100,886 1.21 6.69 .74 7.16 16
2001(a) 93,965 1.12* 5.63* .69* 6.06* 11
================================================================================================================================
Preferred Shares at End of Period
-------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===========================================================================
NEW YORK VALUE (NNY)
---------------------------------------------------------------------------
Year Ended 9/30:
2005 $ N/A $ N/A $ N/A
2004 N/A N/A N/A
2003 N/A N/A N/A
2002 N/A N/A N/A
2001 N/A N/A N/A
NEW YORK PERFORMANCE
PLUS (NNP)
---------------------------------------------------------------------------
Year Ended 9/30:
2005 124,300 25,000 74,528
2004 124,300 25,000 74,706
2003 124,300 25,000 74,834
2002 124,300 25,000 76,466
2001 124,300 25,000 72,988
NEW YORK DIVIDEND
ADVANTAGE (NAN)
---------------------------------------------------------------------------
Year Ended 9/30:
2005 69,000 25,000 77,790
2004 69,000 25,000 77,751
2003 69,000 25,000 77,133
2002 69,000 25,000 77,753
2001 69,000 25,000 74,435
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
---------------------------------------------------------------------------
Year Ended 9/30:
2005 47,000 25,000 78,514
2004 47,000 25,000 78,567
2003 47,000 25,000 78,033
2002 47,000 25,000 78,663
2001(a) 47,000 25,000 74,981
===========================================================================
N/A Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Investment Return on Market Value is the combination of 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. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period March 27, 2001 (commencement of operations) through
September 30, 2001.
See accompanying notes to financial statements.
56-57 SPREAD
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
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
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 OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 155
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Trustee Nuveen Institutional Advisory Corp.(3); Director (since 1996)
Chicago, IL 60606 of Institutional Capital Corporation; Chairman and Director
(since 1997) of Nuveen Asset Management; Chairman and
Director of Rittenhouse Asset Management, Inc. (since 1999);
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 155
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 155
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 155
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 155
3/6/48 Business at the University of Connecticut (since 2002);
333 W. Wacker Drive previously, Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director
(since 1997), Credit Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation.
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 153
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment Management
Group; Board of Regents, Luther College; currently a member of
the American and Wisconsin Bar Associations.
58
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 155
9/24/44 Officer (retired, December 2004), Miller-Valentine Partners
333 W. Wacker Drive Ltd., a real estate investment company; formerly, Vice
Chicago, IL 60606 President, Miller-Valentine Realty, a construction company;
Chair of the Finance Committee and member of the Audit
Committee of Premier Health Partners, the not-for-profit
company of Miami Valley Hospital; President, Dayton
Philharmonic Orchestra Association; Board Member,
Regional Leaders Forum, which promotes cooperation on
economic development issues; Director and Immediate
Past Chair, Dayton Development Coalition; formerly, Member,
Community Advisory Board, National City Bank, Dayton,
Ohio and Business Advisory Council, Cleveland Federal
Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 155
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 155
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber of Commerce and Evanston
Inventure, a business development organization.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 155
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel, of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), of Nuveen Asset Management; Managing Director
(since 2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc. (since 2003); Chartered Financial Analyst.
59
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 155
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 155
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 155
11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments,
333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Vice President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC. (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 155
9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant
333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3); Vice President and
Assistant Secretary (since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 155
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 155
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director of Nuveen Asset Management
(since 2001); Vice President of Nuveen Investments Advisers
Inc. (since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 155
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 155
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); formerly, Senior Attorney (1994-2004), The Northern
Trust Company.
60
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 155
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 155
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 155
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member of
the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(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.
61
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group") and if available, with recognized or, in certain
cases, customized benchmarks; the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the management fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contracts. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group and, if available, recognized
benchmarks or, in certain cases, customized benchmarks (as described in further
detail in Section B below); information describing NAM's organization and its
various departments, the experience and responsibilities of key personnel, and
available resources. In the discussion of key personnel, the Trustees received
materials regarding the changes or additions in personnel of NAM. The Trustees
further noted the willingness of the personnel of NAM to engage in open, candid
discussions with the Board. The Trustees further considered the quality of NAM's
investment process in making portfolio management decisions, including any
refinements or improvements to the portfolio management processes, enhancements
to technology and systems that are available to portfolio managers, and any
additions of new personnel which may strengthen or expand the research and
investment capabilities of NAM. In their review of advisory contracts for the
fixed income funds, such as the Funds, the Trustees also noted that Nuveen won
the Lipper Award for Best Fund Family: Fixed Income-Large Asset Class, for 2004.
Given the Trustees' experience with the Funds, other Nuveen funds and NAM, the
Trustees noted that they were familiar with and continue to have a good
understanding of the organization, operations and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Funds with such administrative and other services (exclusive
of, and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including:
62
preparing shareholder reports; providing daily accounting; providing quarterly
financial statements; overseeing and coordinating the activities of other
service providers; administering and organizing Board meetings and preparing the
Board materials for such meetings; providing legal support (such as helping to
prepare registration statements, amendments thereto and proxy statements and
responding to regulatory inquiries); and performing other Fund administrative
tasks necessary for the operation of the respective Fund (such as tax reporting
and fulfilling regulatory filing requirements). In addition, in evaluating the
administrative services, the Trustees considered, in particular, NAM's policies
and procedures for assuring compliance with applicable laws and regulations in
light of the new SEC regulations governing compliance. The Trustees noted NAM's
focus on compliance and its compliance systems. In their review, the Trustees
considered, among other things, the additions of experienced personnel to NAM's
compliance group and modifications and other enhancements to NAM's computer
systems. In addition to the foregoing, the Trustees also noted that NAM
outsources certain services that cannot be replicated without significant costs
or at the same level of expertise. Such outsourcing has been a beneficial and
efficient use of resources by keeping expenses low while obtaining quality
services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, such as the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Nuveen funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable fund's duration within certain benchmarks.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the Funds under
the Investment Management Agreements were of a high level and were quite
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group and, if available, its performance
compared to recognized and, in certain cases, customized benchmarks. Further, in
evaluating the performance information, in certain limited instances, the
Trustees noted that the closest Peer Group for a Fund still would not adequately
reflect such Fund's investment objectives and strategies, thereby limiting the
usefulness of the comparisons of such Fund's performance with that of the Peer
Group.
For state municipal funds, such as the Funds, the performance data included,
among other things, the respective Fund's performance relative to its peers.
More specifically, a Fund's one-, three- and five-year total returns (as
available) for the periods ending December 31, 2004 were evaluated relative to
the unaffiliated funds in its respective Peer Group (including the returns of
individual peers as well as the Peer Group average) as well as additional
performance information with respect to all the funds in the Peer Group, subject
to the following. Certain state municipal Nuveen funds do not have a
corresponding Peer Group in which case their performance is measured against a
state-specific municipal index compiled by an independent third party. Such
indices measure bond performance rather than fund performance. The closed-end
funds that utilize such indices are from Connecticut, Georgia, Maryland,
Missouri, North Carolina, Texas and Virginia. Based on their review, the
Trustees determined that each Fund's absolute and relative investment
performance over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the Fund's current management fee structure and
the Fund's expected expense ratios in absolute terms as well as compared with
the fees and expense ratios of the unaffiliated funds in its Peer Group. The
Trustees reviewed the financial information of NAM, including its respective
revenues, expenses and profitability. In reviewing fees, the Trustees, among
other things, reviewed comparisons of the Fund's gross management fees (fees
after fund-level and complex-wide level breakpoints but before reimbursements
and fee waivers), net management fees (after breakpoints and reimbursements
and fee waivers) and total expense ratios (before and after waivers) with
those of the unaffiliated funds in the Peer Group and peer averages. In this
regard, the Trustees noted that the relative ranking of the Nuveen funds on
fees and expenses was aided by the significant level of fee reductions
provided by the fund-level and complex-wide breakpoint schedules, and the fee
waivers and reimbursements provided by Nuveen for certain funds launched
since 1999. The complex-wide breakpoint schedule was instituted in 2004 and
is described in further detail below in Section D entitled "Economies of
Scale and Whether Fee Levels Reflect these Economies of Scale." In their
review of the fee and expense information provided, including, in particular,
the expense ratios of the unaffiliated funds in the respective Peer Group,
the Trustees determined that each Fund's net total expense ratio was within
an acceptable range compared to such peers.
63
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts are generally lower than those charged to the
comparable Fund. The Trustees noted, however, the additional services that
are provided and the costs incurred by Nuveen in managing and operating
registered investment companies, such as the Funds, compared to individually
managed separate accounts. For instance, as described above, NAM and its
affiliates provide numerous services to the Funds including, but not limited
to, preparing shareholder reports; providing daily accounting; preparing
quarterly financial statements; overseeing and coordinating the activities of
other service providers; administering and organizing Board meetings and
preparing the Board materials for such meetings; providing legal support; and
administering all other aspects of the Fund's operations. Further, the
Trustees noted the increased compliance requirements for funds in light of
new SEC regulations and other legislation. These services are generally not
required to the same extent, if at all, for separate accounts. In addition to
the differences in services, the Trustees also considered, among other
things, the differences in product distribution, investment policies,
investor profiles and account sizes. Accordingly, the Trustees believe that
the nature and number of services provided to operate a Fund merit the higher
fees than those to separate managed accounts.
3. PROFITABILITY OF ADVISER
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult issues
in determining profitability is establishing a method of allocating expenses.
Accordingly, the Trustees reviewed NAM's assumptions and methodology of
allocating expenses. In this regard, the methods of allocation used appeared
reasonable but the Board noted the inherent limitations in allocating costs
among various advisory products. The Trustees also recognized that individual
fund or product line profitability of other advisers is generally not
publicly available. Further, profitability may be affected by numerous
factors including the types of funds managed, expense allocations, business
mix, etc. and therefore comparability of profitability is somewhat limited.
Nevertheless, to the extent available, the Trustees considered NAM's profit
margin compared to the profitability of various publicly-traded investment
management companies and/or investment management companies that publicly
disclose some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by NAM.
Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light of
the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of the
Funds, if any. See Section E below for additional information. Based on their
review of the overall fee arrangements of the applicable Fund, the Trustees
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
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grow and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Funds for the period of August 1, 2004 to December
31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all Funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently was acceptable and desirable in providing benefits from
economies of scale to shareholders.
64
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM typically manages the portfolios of the municipal funds in the
Nuveen complex and municipal bonds generally trade on a principal basis.
Accordingly, NAM does not currently have any soft dollar arrangements and does
not pay excess brokerage commissions (or spreads on principal transactions) in
order to receive research services. In addition to soft dollar arrangements, the
Trustees also considered any other revenues, if any, received by NAM or its
affiliates. With respect to Funds with outstanding preferred shares and new
Funds, the Trustees considered revenues received by Nuveen for serving as agent
for broker-dealers at its preferred trading desk and for acting as co-manager in
the initial public offering of new closed-end exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers
Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its
intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM.
Pursuant to a series of transactions, St. Paul had begun to reduce its interest
in Nuveen which would ultimately result in a change of control of Nuveen and
therefore NAM. As mandated by the 1940 Act, such a change in control would
result in an assignment of the advisory agreement with NAM and the automatic
termination of such agreement. Accordingly, the Board also considered for each
Fund the approval of a New Investment Management Agreement with each Fund in
light of, and which would take effect upon, the anticipated change of control.
More specifically, the Board considered for each Fund a New Investment
Management Agreement on substantially identical terms to the existing Investment
Management Agreement, to take effect after the change of control has occurred
and the contract has been approved by Fund shareholders. In its review, the
Board considered whether the various transactions necessary to divest St. Paul's
interest will have an impact on the various factors they considered in approving
NAM, such as the scope and quality of services to be provided following the
change of control. In reviewing the St. Paul transactions, the Board considered,
among other things, the impact, if any, on the operations and organizational
structure of NAM; the possible benefits and costs of the transactions to the
respective Fund; the potential implications of any arrangements used by Nuveen
to finance certain of the transactions; the ability of NAM to perform its duties
after the transactions; whether a Fund's fee structure or expense ratio would
change; any changes to the current practices of the respective Fund; any changes
to the terms of the advisory agreement; and any anticipated changes to the
operations of NAM. Based on its review, the Board determined that St. Paul's
divestiture would not affect the nature and quality of services provided by NAM,
the terms of the Investment Management Agreement, including the fees thereunder,
and would not materially affect the organization or operations of NAM.
Accordingly, the Board determined that their analysis of the various factors
regarding their approval of NAM would continue to apply after the change of
control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that NAM's fees are reasonable in light of the services
provided to each Fund, that the renewal of the NAM Investment Management
Agreements should be approved, and that the new, post-change of control NAM
Investment Management Agreements be approved and recommended to shareholders.
65
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded 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
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
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.
66
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of 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.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
67
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $125 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
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.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0905D
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/etf. (To view the
code, click on the Investor Resources drop down menu box, 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 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, Chairman of the Audit Committee, 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 New York Dividend Advantage Municipal 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 entered into on or after May 6, 2003, 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 BILLED TO FUND BILLED TO FUND BILLED TO FUND
----------------------------------------------------------------------------------------------------------------------------------
September 30, 2005 $ 10,678 $ 0 $ 641 $ 2,750
----------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------------------
September 30, 2004 $ 10,148 $ 0 $ 364 $ 2,550 (1)
----------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. The
above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
(1) The "All Other Fees Billed to Fund" for September 30, 2004 have been
revised.
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 ("Control Affiliate") 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
--------------------------------------------------------------------------------------------------------------
September 30, 2005 $ 0 $ 282,575 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
September 30, 2004 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
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. For
engagements entered into on or after May 6, 2003, 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 de minimis 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
----------------------------------------------------------------------------------------------------------------------------
September 30, 2005 $ 3,391 $ 282,575 $ 0 $ 285,966
September 30, 2004 (1) $ 2,914 $ 0 $ 0 $ 2,914
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
(1) The "All Other Fees Billed to Fund" for September 30, 2004 have been
revised.
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 of Directors or Trustees 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, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
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/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, 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 New York Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 8, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.