UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21449
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Nuveen Municipal High Income Opportunity Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN Investments
Closed-End Funds
--------------------------------------------------------------------------------
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
April 30, 2009
--------------------------------------------------------------------------------
------------------- ------------------- ------------------ ------------------
NUVEEN INVESTMENT NUVEEN SELECT NUVEEN QUALITY NUVEEN PREMIER
QUALITY MUNICIPAL QUALITY MUNICIPAL INCOME MUNICIPAL MUNICIPAL INCOME
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
NQM NQS NQU NPF
------------------- -------------------
NUVEEN MUNICIPAL NUVEEN MUNICIPAL
HIGH INCOME HIGH INCOME
OPPORTUNITY FUND OPPORTUNITY FUND 2
NMZ NMD
(April 09)
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LOGO: NUVEEN Investments
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The problems in the U.S. financial system and the slowdown in global economic
activity continue to create a very difficult environment for the U.S. economy.
The administration, the Federal Reserve System and Congress have initiated a
variety of programs directed at restoring liquidity to the financial markets,
providing financial support for critical financial institutions and stimulating
economic activity. There are encouraging signs that these initiatives are
beginning to have a constructive impact. It is not possible to predict whether
the actions taken to date will be sufficient to restore more normal conditions
in the financial markets or enable the economy to stabilize and set a course
toward recovery. However, the speed and scope of the government's actions are
very encouraging and more importantly, reflect a commitment to act decisively to
meet the economic challenges we face.
The performance information in the attached report reflects the impact of many
forces at work in the equity and fixed income markets. The comments by the
portfolio managers describe the strategies being used to pursue your Fund's
long-term investment goals. Parts of the financial markets continue to
experience serious dislocations and thorough research and strong investment
disciplines have never been more important in identifying risks and
opportunities. I hope you will read this information carefully.
Your Board is particularly sensitive to our shareholders' concerns in these
uncertain times. We believe that frequent and thorough communication is
essential in this regard and encourage you to visit the Nuveen website:
www.nuveen.com, for recent developments in all Nuveen funds. We also encourage
you to communicate with your financial consultant for answers to your questions
and to seek advice on your long-term investment strategy in the current market
environment.
Nuveen continues to work on resolving the issues related to the auction rate
preferred shares situation, but the unsettled conditions in the credit markets
have slowed progress. Nuveen is actively pursuing a number of solutions, all
with the goal of providing liquidity for preferred shareholders while preserving
the potential benefits of leverage for common shareholders. We appreciate the
patience you have shown as we work through the many issues involved.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Nuveen Fund Board
June 19, 2009
Nuveen Investments 3
Portfolio Managers' Comments
NUVEEN INVESTMENTS MUNICIPAL CLOSED-END FUNDS NQM, NQS, NQU, NPF, NMZ, NMD
Portfolio managers Tom Spalding, Paul Brennan, John Miller and Johnathan Wilhelm
review key investment strategies and the six-month performance of these six
national Funds. A 33-year veteran of Nuveen, Tom has managed NQS and NQU since
2003. With 20 years of industry experience, including 12 years at Nuveen, Paul
assumed portfolio management responsibility for NPF in 2006. John, who has 15
years of municipal market experience, has managed NMZ since its inception in
2003. Johnathan, who came to Nuveen in 2001 with 19 years of industry
experience, joined John as co-portfolio manager for NMD in 2007, assuming full
portfolio management responsibility for this Fund as well as for NQM in March
2009.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE SIX-MONTH PERIOD
ENDED APRIL 30, 2009?
During this time, the municipal market remained under pressure from price
volatility, reduced liquidity and fundamental economic concerns. After a very
difficult start to the period, market conditions began to show signs of
improvement in mid-December 2008 and municipal bonds were on an improving trend
during the first four months of 2009. In this environment, we continued to focus
on finding bonds that offered relative value, while seeking to manage liquidity
and invest for the long term.
Much of our investment activity during this period was driven by opportunities
created by market conditions. We sought to capitalize on this environment by
continuing to take a bottom-up approach to finding undervalued sectors and
individual credits with the potential to perform well over the long term. This
was true in both the new issuance and secondary markets. In the new issuance
market, we found bonds with better structures (such as higher coupons or longer
call protection) than we have seen in a long time as market conditions required
issuers to enhance offerings to make them more attractive to buyers. In the
secondary markets, we were able to purchase bonds, especially lower-rated
issues, at discounted prices as the result of forced selling by some municipal
market participants, particularly in November and December 2008. Although we
found some bonds at extremely discounted prices during this period, our emphasis
was always on carefully selecting what we believed to be the best bonds
available. In general, the bonds we purchased were ones where we were already
familiar with the credit being offered or where we were adding to positions or
sectors currently held in the portfolio.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
4 Nuveen Investments
Our purchases in NQM, NQS, NQU and NPF during this period generally focused on
bonds issued for essential services, including water and sewer, utilities, local
public schools and hospitals, as well as state and local general obligation and
other tax-backed bonds. In most cases, we sought bonds with longer maturities to
take advantage of the spreads offered by the extremely steep yield curve.
In NMZ and NMD, we focused on bonds that we believed had the potential to
appreciate over time, but that were currently unfavorable in the market due to
the overall economic environment and not because of any intrinsic problem with
the credits themselves. We were able to purchase these bonds at very attractive
prices in areas of the market such as community development districts (CDDs),
hospitals, hotel and convention centers and the tobacco sector. Later in the
period, NMD took advantage of opportunities to reduce its heavier exposure to
health care by selling selected hospital bonds and reinvesting the proceeds in
other sectors where we saw better potential, particularly special tax issues or
limited tax obligation bonds. Although land-secured offerings have been under
pressure due to the housing market slowdown, we used a fundamental approach to
find what we believed were the strongest credits-those with good underlying
asset values and cashflows--at very attractive prices.
Some of the cash for new purchases was generated by bond calls and redemptions.
In NQM, NPF, NMZ and NMD, we also monitored the types of credits and bond
structures that were attractive to the retail market and methodically took
advantage of strong bids to sell selected bonds into relatively consistent
retail demand. The bonds we sold tended to have shorter maturities, as these
generally offered more liquidity and were in greater demand by retail buyers.
NMZ and NMD also sold some economically sensitive issues, including airline
bonds.
We continued to use inverse floating rate securities(1) in all six Funds. We
employed inverse floaters for a variety of reasons, including duration(2)
management, income enhancement, and as a form of leverage. NPF, NMZ and NMD also
invested in additional types of derivatives(3) intended to help manage duration
and common share net asset value (NAV) volatility without having a negative
impact on income streams or common share dividends over the short term. As of
April 30, 2009, the inverse floaters remained in place in all six Funds. We also
continued to use derivatives in NMZ and NMD, while we had removed the derivative
positions from NPF.
(1) An inverse floating rate security, also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(2) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
(3) Each Fund may invest in derivative instruments such as forwards, futures,
options and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements, and Notes to Financial Statements sections of this report.
Nuveen Investments 5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE*
FOR PERIODS ENDED 4/30/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NQM 12.92% -2.15% 3.18% 4.55%
NQS 10.63% -4.89% 2.58% 4.47%
NQU 8.75% -3.15% 3.44% 4.61%
NPF 14.21% -2.66% 2.66% 4.23%
Lipper General
Leveraged
Municipal Debt
Funds Average(4) 9.55% -8.84% 1.64% 3.73%
Barclays Capital
Municipal
Bond Index(5) 8.20% 3.11% 4.11% 4.78%
S&P/National
Municipal Bond Index(6) 7.73% 1.14% 3.84% 4.61%
NMZ 0.73% -27.30% -1.09% N/A
NMD(7) 2.12% -28.64% N/A N/A
Lipper High-Yield
Municipal Debt
Funds Average(4) 1.73% -16.83% 0.48% --
Barclays Capital
High-Yield Municipal
Bond Index(5) -4.20% -17.71% 0.43% --
S&P National High
Yield Municipal
Bond Index(6) -2.46% -18.80% -0.06% 2.31%
--------------------------------------------------------------------------------
For the six months ended April 30, 2009, the cumulative returns on common share
NAV for NQM, NQS and NPF exceeded the average return for the Lipper General
Leveraged Municipal Debt Funds Average, while NQU trailed slightly. NQM, NQS and
NPF also outperformed the returns on both the Barclays Capital Municipal Bond
Index and the Standard & Poor's (S&P) National Municipal Bond Index. For the
same period, NMD outperformed both the Lipper High-Yield Municipal Debt Funds
Average, Barclays Capital High-Yield Municipal Bond Index and the Standard &
Poor's (S&P) National High Yield Municipal Bond Index.
* Six-month returns are cumulative; returns for one-year, five-year, and
ten-year are 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.
(4) The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: six-months, 54 funds; one-year, 54 funds; five-year, 52 funds;
and ten-year, 38 funds. Fund and Lipper returns assume reinvestment of
dividends. The Lipper High-Yield Municipal Debt Funds Average is
calculated using the returns of all 15 closed-end funds in this category
for the six-months 15 funds; one-year, 15 funds; five-year, 14 funds;
ten-year, 11 funds. Fund and Lipper returns assume reinvestment of
dividends.
(5) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. The Barclays Capital (formerly Lehman
Brothers) High-Yield Municipal Bond Index is an unleveraged, unmanaged
national index comprising municipal bonds rated below investment grade
(i.e., below Baa by Moody's Investors Service and below BBB by Standard &
Poor's or Fitch Ratings). Results for the Barclays Capital indexes do not
reflect any expenses.
(6) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the U.S. municipal bond market. The S&P National High Yield
Municipal Bond Index contains all bonds in the S&P National Municipal Bond
Index that are non-rated or whose ratings are BB+ S&P and/or BA-1 Moody's
or lower. This index does not contain bonds that pre-refunded or are
escrowed to maturity.
(7) NMD is an unleveraged Fund; the remaining five Funds in this report are
leveraged.
6 Nuveen Investments
Key management factors that influenced the Funds' returns during this six-month
period included duration and yield curve positioning, the use of derivatives,
credit and sector allocations and individual security selection. In addition,
the use of leverage was an important factor affecting the Funds' performances
over this period. The impact of leverage is discussed in more detail on page 8.
Over this period, the municipal bond yield curve remained steep, with
longer-term yields significantly higher than shorter-terms yields. Bonds in the
Barclays Capital Municipal Bond Index maturing in ten years or more, especially
bonds with maturities of approximately 15 years and 22 years and longer,
benefited the most from the overall market environment. While NQM and NPF had
relatively better overall duration and yield curve positioning than NQS and NQU,
all four Funds had significant exposure to the longer part of the yield curve,
which benefited their performances. In NMZ and NMD, the benefits of longer
durations were offset to a large extent by credit allocation and the use of
derivatives.
As mentioned earlier, NMZ and NMD, used derivative positions during this period
to synthetically reduce duration and move these Funds closer to target level.
The derivatives were intended in part to help position the Funds within a
targeted range on the yield curve without incurring additional trading activity,
or adversely affecting credit quality and yields. During the early part of this
period, in these derivative positions performed poorly, detracting from the
total return performances of NMZ and NMD for the entire period. In NPF, the
derivatives were removed shortly after the beginning of this reporting period
and so had no meaningful impact on this Fund's performance.
All of the Funds in this report also continued to use inverse floating rate
securities. During this period, these instruments generally had a positive
impact on the Funds' overall performances, while also helping to support their
income streams.
Credit quality exposure was also an important factor in the Funds' returns
during this period, although the impact of allocations to various credit quality
sectors was offset to varying degrees in NQM, NQS, NQU and NPF by other factors,
such as duration and yield curve positioning, sector allocation and security
selection. In general, risk-averse investors put a priority on higher quality
investments causing bonds with higher credit to perform very well. As a result,
bonds rated BBB or below and non-rated bonds generally posted poorer returns.
With these market conditions, allocation to lower-rated credits was a
significant factor in the six-month performances of NMZ and NMD. Overall,
conditions in the high-yield market were poor during much of the period due to
the earlier flight to quality, lower demand for high-yield securities and wider
credit spreads. These factors were the main drivers behind the relatively weak
performances of these Funds' holdings of higher-yielding credits. As the market
environment started to improve over the last four months of the period, demand
for lower-rated bonds began to expand.
Nuveen Investments 7
Sectors of the municipal bond market that generally contributed positively to
the Funds' returns during this period included housing, water and sewer and
education. Overall, general obligation bonds tended to outperform the general
municipal market, while health care bonds, which had underperformed for some
time, reversed course and generally performed in line with the market over the
six months. In particular, the hospital bonds held by NQM and NPF performed
well, boosting the returns of these Funds.
Holdings that generally detracted from the Funds' performances included
industrial development revenue (IDR) and resource recovery bonds, zero coupon
bonds did poorly, and lower-rated bonds backed by the 1998 master tobacco
settlement agreement, also lagged. Pre-refunded(8) bonds, which had been the
top-performing segment of the municipal market for some time, also
underperformed. Although backed by U.S. Treasuries, their shorter effective
maturities hurt their performances during this period. As of April 30, 2009, NQU
and NQS had significantly heavier weightings of pre-refunded bonds.
Individual security selection was also a factor in the Funds' returns. NQM, NQS,
NQU, NMZ and NMD all were negatively impacted by their holdings of Ambac-insured
bonds issued for the Las Vegas monorail project, which links various casinos on
the Las Vegas strip. The project has struggled to build ridership and turn a
profit, and proposals to extend the monorail to McCarran International Airport
remain on hold.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors previously discussed, one of the primary reasons for
the strong six-month returns was the Funds' use of financial leverage. As
mentioned previously, NMD is an unleveraged Fund. This positive contribution to
performance stands in sharp contrast to the preceding six-month period, when
leverage had a generally detrimental impact on the Funds' returns. This can be
seen by comparing the six-month and one-year Fund returns shown on page 6.
Financial leverage offers opportunities to generate additional income and total
return for common shareholders under a variety of market conditions. However,
leverage may work to the common shareholders' disadvantage during periods when
bond prices are extraordinarily volatile or in sharp decline. During the six
months covered by this report, overall conditions within the municipal bond
market were relatively favorable, in contrast to the relatively unfavorable
market conditions during the fall of 2008.
(8) Pre-refundings, also known as advance refundings or refinancings, 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.
8 Nuveen Investments
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
positions in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. At the time this report was prepared, there were no
bond insurers rated AAA by all three of the major rating agencies (Moody's
Investor Service, S&P and Fitch) and at least one rating agency has placed each
insurer on "negative credit watch," "credit watch evolving," "credit outlook
developing," or "rating withdrawn," which may presage one or more rating
reductions in the future. As concern increased about the balance sheets of
insurers, prices on insured bonds - especially those bonds issued by weaker
underlying credits - declined, detracting from the Funds' performances. By the
end of this reporting period, most insured bonds were being valued according to
their fundamentals as if they were uninsured. On the whole, the holdings of all
of our Funds continued to be well diversified, and it is important to note that
municipal bonds historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
As noted in the previous shareholder reports, beginning in February 2008, more
shares were submitted for sale in the regularly scheduled auctions for the
auction rate preferred shares issued by these Funds than there were offers to
buy. This meant that these auctions "failed to clear," and that many, or all, of
the Funds' auction rate preferred shareholders who wanted to sell their shares
in these auctions were unable to do so. This decline in liquidity in auction
rate preferred shares did not lower the credit quality of these shares, and
auction rate preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions, as calculated
in accordance with the pre-established terms of the auction rate preferred
shares.
These developments generally have not affected the portfolio management or
investment policies of these Funds. However, one continuing implication for
common shareholders of these auction failures is that the Funds' cost of
leverage will likely be higher, at least temporarily, than it otherwise would
have been had the auctions continued to be successful. As a result, the Funds'
future common share earnings may be lower than they otherwise might have been.
As previously reported, the Funds' Board of Directors/Trustees authorized a plan
to use tender option bonds (TOBs), also known as floating rate securities, to
refinance a portion of the Funds' outstanding auction rate preferred shares. As
of April 30, 2009, the amount of auction rate preferred securities redeemed by
the Funds are as shown in the accompanying table. As noted previously, NMD is an
unleveraged Fund.
Nuveen Investments 9
% OF
AUCTION RATE ORIGINAL
PREFERRED AUCTION RATE
SHARES PREFERRED
FUND REDEEMED SHARES
--------------------------------------------------------------------------------
NQM $ 90,300,000 30.0%
NQS $ 21,075,000 7.6%
NQU $ 48,400,000 10.7%
NPF $ 38,150,000 23.1%
NMZ $ 60,000,000 38.7%
--------------------------------------------------------------------------------
While the Funds' Board of Directors/Trustees and management continue to work to
resolve this situation, the Funds cannot provide any assurance on when the
remaining outstanding auction rate preferred shares might be redeemed.
As of April 30, 2009, sixty-seven Nuveen closed-end municipal funds have
redeemed and/or noticed for redemption at par a portion of their outstanding
auction rate preferred shares. These redemptions bring the total amount of
Nuveen's municipal closed-end funds' auction rate preferred share redemptions to
approximately $2.1 billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
10 Nuveen Investments
Common Share Dividend and Share Price Information
During the six-month period ended April 30, 2009, NQU and NPF each had one
monthly dividend increase, while the dividends of NQM, NQS, NMZ and NMD remained
stable throughout the period.
As a result of normal portfolio activity, common shareholders of the following
Funds received capital gains and/or net ordinary income distributions at the end
of December 2008 as follows:
SHORT-TERM
CAPITAL GAINS
AND/OR
LONG-TERM ORDINARY
CAPITAL GAINS INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQM $ 0.0299 $ 0.0021
NMZ -- $ 0.0391
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2009, all six of
the Funds in this report had positive UNII balances, based on our best estimate,
for tax purposes and positive UNII balances for financial statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
The Funds' Board of Directors/Trustees approved an open-market share repurchase
program on July 10, 2007, for NPF and on July 30, 2008, for NQM, NQS, NQU, NMZ
and NMD under which each Fund may repurchase an aggregate of up to 10% of its
outstanding common shares. Since the inception of this program, NQM, NQS, NQU,
NMZ and NMD have not repurchased any of their outstanding common shares.
Nuveen Investments 11
As of April 30, 2009, NPF repurchased common shares as shown in the accompanying
table.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NPF 202,500 1.0%
--------------------------------------------------------------------------------
During the six-month reporting period, NPF's common shares were repurchased at a
weighted average price and a weighted average discount per common share as shown
in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NPF $ 10.51 17.21%
--------------------------------------------------------------------------------
SHELF EQUITY PROGRAM
On April 1, 2009, a registration statement filed with the Securities and
Exchange Commission by NMZ became effective. This registration statement enables
the Fund to issue up to 1,900,000 additional shares of common stock through an
ongoing shelf offering. Under this equity shelf program, the Fund, subject to
market conditions, may raise additional equity capital from time to time in
varying amounts and offering methods at a net price at or above the Fund's NAV
per common share. During the period ended April 30, 2009, NMZ cumulatively
issued 58,508 shares at an average price of $9.98 and an average premium to NAV
of 13.60% per common share.
On May 29, 2009, NMD filed with the Securities and Exchange Commission a
registration statement seeking to register additional shares of common stock.
This registration statement, if declared effective by the SEC, would enable the
Fund to issue to the public additional common shares in an amount up to ten
percent of the Fund's currently issued and outstanding common shares through an
ongoing shelf offering. Under this equity shelf program, the Fund, subject to
market conditions, may raise additional equity capital from time to time in
varying amounts and offering methods at a net price at or above the Fund's NAV
per common share.
As of April 30, 2009, the Funds' common share prices were trading at premiums or
discounts to their common share NAVs as shown in the accompanying table.
4/30/09 SIX-MONTH AVERAGE
+PREMIUM/-DISCOUNT +PREMIUM/-DISCOUNT
--------------------------------------------------------------------------------
NQM -7.66% -10.64%
NQS -4.98% -8.93%
NQU -5.15% -9.85%
NPF -9.48% -14.01%
NMZ +13.18% +12.25%
NMD +11.36% +10.67%
--------------------------------------------------------------------------------
12 Nuveen Investments
NQM Performance OVERVIEW | Nuveen Investment Quality Municipal Fund, Inc.
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 44%
AA 30%
A 15%
BBB 9%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0645
Jun 0.0625
Jul 0.0625
Aug 0.0625
Sep 0.0625
Oct 0.0625
Nov 0.0625
Dec 0.0625
Jan 0.0625
Feb 0.0625
Mar 0.0625
Apr 0.0625
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.77
13.86
13.91
13.96
13.82
13.77
13.77
13.49
13.23
13.15
13.21
13.01
12.74
12.77
12.94
12.91
12.9
12.82
12.94
12.89
12.67
12.1
11.3
11
8.19
9.9
10.69
10.64
11.65
10.95
9.56
10.8799
10.45
9.33
9.96
9.89
10.91
11.85
12
11.9
12.15
12.27
12.17
10.8
11.73
11.25
11.62
11.64
11.89
11.98
11.95
12.04
12.2
4/30/09 12.3
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.30
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.32
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.66%
--------------------------------------------------------------------------------
Market Yield 6.10%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.47%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 477,162
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.41
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.99
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/21/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 19.76% 12.92%
--------------------------------------------------------------------------------
1-Year -4.23% -2.15%
--------------------------------------------------------------------------------
5-Year 3.83% 3.18%
--------------------------------------------------------------------------------
10-Year 4.01% 4.55%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 12.5%
--------------------------------------------------------------------------------
New York 10.2%
--------------------------------------------------------------------------------
Texas 9.8%
--------------------------------------------------------------------------------
Illinois 6.4%
--------------------------------------------------------------------------------
Minnesota 5.6%
--------------------------------------------------------------------------------
District of Columbia 4.7%
--------------------------------------------------------------------------------
Florida 4.3%
--------------------------------------------------------------------------------
Washington 4.0%
--------------------------------------------------------------------------------
Georgia 3.1%
--------------------------------------------------------------------------------
Michigan 2.7%
--------------------------------------------------------------------------------
Wisconsin 2.5%
--------------------------------------------------------------------------------
Nevada 2.4%
--------------------------------------------------------------------------------
Colorado 2.4%
--------------------------------------------------------------------------------
Pennsylvania 2.3%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
Massachusetts 2.2%
--------------------------------------------------------------------------------
Tennessee 1.8%
--------------------------------------------------------------------------------
South Carolina 1.7%
--------------------------------------------------------------------------------
Other 19.2%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 25.4%
--------------------------------------------------------------------------------
Health Care 13.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.4%
--------------------------------------------------------------------------------
Tax Obligation/General 11.0%
--------------------------------------------------------------------------------
Transportation 10.7%
--------------------------------------------------------------------------------
Water and Sewer 7.6%
--------------------------------------------------------------------------------
Utilities 6.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.0%
--------------------------------------------------------------------------------
Other 7.1%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades. Please see the
Portfolio Managers' Commentary for an expanded discussion of the affect on
the Fund of changes to the ratings of certain bonds in the portfolio
resulting from changes to the ratings of the underlying insurers both
during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0320 per share.
Nuveen Investments 13
NQS Performance OVERVIEW | Nuveen Select Quality Municipal Fund, Inc.
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.22
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.86
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.98%
--------------------------------------------------------------------------------
Market Yield 6.58%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.14%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 437,514
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.23
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.75
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 15.22% 10.63%
--------------------------------------------------------------------------------
1-Year -8.35% -4.89%
--------------------------------------------------------------------------------
5-Year 3.74% 2.58%
--------------------------------------------------------------------------------
10-Year 4.17% 4.47%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Illinois 9.6%
--------------------------------------------------------------------------------
Texas 9.0%
--------------------------------------------------------------------------------
Colorado 8.2%
--------------------------------------------------------------------------------
New York 6.6%
--------------------------------------------------------------------------------
South Carolina 5.5%
--------------------------------------------------------------------------------
Michigan 5.3%
--------------------------------------------------------------------------------
New Jersey 5.2%
--------------------------------------------------------------------------------
Tennessee 4.5%
--------------------------------------------------------------------------------
Nevada 4.0%
--------------------------------------------------------------------------------
Ohio 3.3%
--------------------------------------------------------------------------------
New Mexico 3.3%
--------------------------------------------------------------------------------
California 3.0%
--------------------------------------------------------------------------------
North Carolina 3.0%
--------------------------------------------------------------------------------
Utah 2.8%
--------------------------------------------------------------------------------
Washington 2.4%
--------------------------------------------------------------------------------
Florida 2.4%
--------------------------------------------------------------------------------
Indiana 2.0%
--------------------------------------------------------------------------------
Other 19.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 35.9%
--------------------------------------------------------------------------------
Utilities 13.6%
--------------------------------------------------------------------------------
Health Care 12.9%
--------------------------------------------------------------------------------
Transportation 11.1%
--------------------------------------------------------------------------------
Tax Obligation/General 7.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 7.6%
--------------------------------------------------------------------------------
Other 11.0%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 48%
AA 22%
A 15%
BBB 12%
BB or Lower 2%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.067
Jun 0.067
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.067
Apr 0.067
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 14.2
14.19
14.37
14.29
14.32
14.26
14.26
13.7
13.64
13.77
13.8899
13.61
13.22
13.18
13.3
13.27
13.16
13.15
13.33
13.28
12.98
12.5
11.67
11.51
8.09
9.92
10.99
10.99
11.755
11.16
9.39
10.36
9.34
9.2
10.3
10.01
10.7201
11.75
12
11.6656
11.98
12.4
12.26
10.82
11.38
10.96
11.38
11.61
11.59
11.54
11.5
11.75
11.78
4/30/09 12.22
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades. Please see the
Portfolio Managers' Commentary for an expanded discussion of the affect on
the Fund of changes to the ratings of certain bonds in the portfolio
resulting from changes to the ratings of the underlying insurers both
during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NQU Performance OVERVIEW | Nuveen Quality Income Municipal Fund, Inc.
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 56%
AA 25%
A 11%
BBB 6%
BB or Lower 1%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.063
Oct 0.063
Nov 0.063
Dec 0.063
Jan 0.063
Feb 0.063
Mar 0.065
Apr 0.065
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.49
13.52
13.57
13.7
13.91
13.94
13.87
13.45
13.16
13.02
13.21
13.11
12.9
13.05
13.18
13.23
13.02
12.88
13.04
13.05
12.75
12.38
11.51
11.27
8.5
10.14
11.59
11.67
11.7
11.74
10.45
11
10.38
9.47
10.44
10.57
11.87
12.26
12.04
12.1
12.21
12.6299
12.43
11.27
11.97
11.54
11.88
11.98
12.18
12.02
12.23
12.3
12.54
4/30/09 12.7
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.70
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.39
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.15%
--------------------------------------------------------------------------------
Market Yield 6.14%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.53%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 726,118
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.11
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.94
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 12.39% 8.75%
--------------------------------------------------------------------------------
1-Year 0.26% -3.15%
--------------------------------------------------------------------------------
5-Year 4.61% 3.44%
--------------------------------------------------------------------------------
10-Year 3.81% 4.61%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
New York 11.5%
--------------------------------------------------------------------------------
Texas 10.3%
--------------------------------------------------------------------------------
Illinois 9.6%
--------------------------------------------------------------------------------
California 8.1%
--------------------------------------------------------------------------------
Washington 6.6%
--------------------------------------------------------------------------------
South Carolina 5.4%
--------------------------------------------------------------------------------
Massachusetts 5.1%
--------------------------------------------------------------------------------
Nevada 3.6%
--------------------------------------------------------------------------------
Ohio 3.5%
--------------------------------------------------------------------------------
New Jersey 3.4%
--------------------------------------------------------------------------------
Colorado 3.2%
--------------------------------------------------------------------------------
Puerto Rico 2.7%
--------------------------------------------------------------------------------
Oklahoma 2.4%
--------------------------------------------------------------------------------
Pennsylvania 2.3%
--------------------------------------------------------------------------------
Louisiana 2.3%
--------------------------------------------------------------------------------
Alabama 1.9%
--------------------------------------------------------------------------------
Other 18.1%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 39.0%
--------------------------------------------------------------------------------
Tax Obligation/General 15.9%
--------------------------------------------------------------------------------
Transportation 11.0%
--------------------------------------------------------------------------------
Utilities 10.1%
--------------------------------------------------------------------------------
Health Care 7.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 5.4%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades. Please see the
Portfolio Managers' Commentary for an expanded discussion of the affect on
the Fund of changes to the ratings of certain bonds in the portfolio
resulting from changes to the ratings of the underlying insurers both
during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 15
NPF Performance OVERVIEW | Nuveen Premier Municipal Income Fund, Inc.
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.74
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.97
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.48%
--------------------------------------------------------------------------------
Market Yield 6.03%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.38%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 257,869
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.91
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.38
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 20.36% 14.21%
--------------------------------------------------------------------------------
1-Year -2.96% -2.66%
--------------------------------------------------------------------------------
5-Year 2.93% 2.66%
--------------------------------------------------------------------------------
10-Year 3.18% 4.23%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 12.9%
--------------------------------------------------------------------------------
New York 12.4%
--------------------------------------------------------------------------------
Illinois 6.9%
--------------------------------------------------------------------------------
Washington 5.1%
--------------------------------------------------------------------------------
Arizona 5.0%
--------------------------------------------------------------------------------
South Carolina 4.9%
--------------------------------------------------------------------------------
Texas 4.9%
--------------------------------------------------------------------------------
Colorado 4.6%
--------------------------------------------------------------------------------
Wisconsin 4.0%
--------------------------------------------------------------------------------
Louisiana 3.8%
--------------------------------------------------------------------------------
New Jersey 3.6%
--------------------------------------------------------------------------------
Minnesota 2.9%
--------------------------------------------------------------------------------
Georgia 2.9%
--------------------------------------------------------------------------------
North Carolina 2.6%
--------------------------------------------------------------------------------
Michigan 2.4%
--------------------------------------------------------------------------------
Indiana 1.8%
--------------------------------------------------------------------------------
Other 19.3%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.8%
--------------------------------------------------------------------------------
Utilities 15.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.1%
--------------------------------------------------------------------------------
Health Care 12.7%
--------------------------------------------------------------------------------
Tax Obligation/General 9.9%
--------------------------------------------------------------------------------
Transportation 9.0%
--------------------------------------------------------------------------------
Water and Sewer 6.2%
--------------------------------------------------------------------------------
Other 14.6%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 28%
AA 47%
A 12%
BBB 12%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.056
Jun 0.056
Jul 0.056
Aug 0.056
Sep 0.0575
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.059
Apr 0.059
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 12.88
12.94
12.93
12.92
12.89
12.96
12.9
12.63
12.36
12.28
12.4
12.33
12.08
11.99
12.04
12.06
12.08
11.99
12.04
12.13
11.97
11.35
10.47
10.33
7.34
8.92
10.22
10.07
10.72
10.22
9.15
9.46
8.63
8.24
9.18
9.61
10.34
11.1286
11.49
11.22
11.18
11.74
11.56
10.6341
11.09
10.486
10.86
10.96
11.17
11.3399
11.23
11.44
11.61
4/30/09 11.74
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades. Please see the
Portfolio Managers' Commentary for an expanded discussion of the affect on
the Fund of changes to the ratings of certain bonds in the portfolio
resulting from changes to the ratings of the underlying insurers both
during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
16 Nuveen Investments
NMZ Performance OVERVIEW | Nuveen Municipal High Income Opportunity Fund
as of April 30, 2009
Credit Quality (as a % of total investments)(1,2)
[PIE CHART]
AAA/U.S.
Guaranteed 9%
AA 6%
A 12%
BBB 19%
BB or Lower 10%
N/R 44%
2008-2009 Monthly Tax-Free Dividends Per Common Share(4)
[BAR CHART]
May $ 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.0835
Oct 0.0835
Nov 0.0835
Dec 0.0835
Jan 0.0835
Feb 0.0835
Mar 0.0835
Apr 0.0835
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 15.5
15.44
15.384
15.54
15.5399
15.56
15.41
15.239
14.85
15.15
15.17
15.16
14.73
14.86
14.94
14.74
14.31
14.416
14.47
14.5
14.4
14.17
12.65
11.85
7.04
9.92
10.673
11.02
11.25
9.97
8.17
9.27
8.1399
7.37
7.83
8.17
9.15
10.3348
9.95
10.57
10.44
10.36
10.15
10.0399
10.1875
8.86
9.46
9.91
10.3
10.37
10.13
9.7
10.1
4/30/09 10.22
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 10.22
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 9.03
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 13.18%
--------------------------------------------------------------------------------
Market Yield 9.80%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 13.61%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 216,444
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 22.50
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 17.12
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/03)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -1.71% 0.73%
--------------------------------------------------------------------------------
1-Year -27.42% -27.30%
--------------------------------------------------------------------------------
5-Year 0.90% -1.09%
--------------------------------------------------------------------------------
Since Inception 0.12% -0.99%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Florida 9.5%
--------------------------------------------------------------------------------
Indiana 8.5%
--------------------------------------------------------------------------------
Wisconsin 8.1%
--------------------------------------------------------------------------------
California 7.8%
--------------------------------------------------------------------------------
Texas 7.2%
--------------------------------------------------------------------------------
Illinois 5.8%
--------------------------------------------------------------------------------
Colorado 4.9%
--------------------------------------------------------------------------------
Louisiana 4.4%
--------------------------------------------------------------------------------
Arizona 4.1%
--------------------------------------------------------------------------------
Ohio 3.9%
--------------------------------------------------------------------------------
Washington 3.6%
--------------------------------------------------------------------------------
Nebraska 3.0%
--------------------------------------------------------------------------------
Michigan 2.9%
--------------------------------------------------------------------------------
North Carolina 2.4%
--------------------------------------------------------------------------------
Tennessee 2.2%
--------------------------------------------------------------------------------
Missouri 2.1%
--------------------------------------------------------------------------------
Other 19.6%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Health Care 28.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.0%
--------------------------------------------------------------------------------
Housing/Multifamily 7.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.5%
--------------------------------------------------------------------------------
Water and Sewer 6.5%
--------------------------------------------------------------------------------
Transportation 5.7%
--------------------------------------------------------------------------------
Industrials 5.3%
--------------------------------------------------------------------------------
Utilities 4.6%
--------------------------------------------------------------------------------
Materials 4.3%
--------------------------------------------------------------------------------
Other 11.1%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades. Please see the
Portfolio Managers' Commentary for an expanded discussion of the affect on
the Fund of changes to the ratings of certain bonds in the portfolio
resulting from changes to the ratings of the underlying insurers both
during the period and after period end.
(2) Excluding investments in derivatives.
(3) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(4) The Fund paid shareholders a net ordinary income distribution in December
2008 of $0.0391 per share.
Nuveen Investments 17
NMD Performance OVERVIEW | Nuveen Municipal High Income Opportunity Fund 2
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 9.80
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 8.80
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 11.36%
--------------------------------------------------------------------------------
Market Yield 9.80%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 13.61%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 140,404
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 26.44
--------------------------------------------------------------------------------
Modified Duration 13.52
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/07)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 3.12% 2.12%
--------------------------------------------------------------------------------
1-Year -26.01% -28.64%
--------------------------------------------------------------------------------
Since Inception -19.09% -22.26%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Florida 14.4%
--------------------------------------------------------------------------------
California 12.8%
--------------------------------------------------------------------------------
Texas 11.0%
--------------------------------------------------------------------------------
Colorado 7.9%
--------------------------------------------------------------------------------
Illinois 5.9%
--------------------------------------------------------------------------------
Arizona 5.8%
--------------------------------------------------------------------------------
Louisiana 4.8%
--------------------------------------------------------------------------------
Washington 4.3%
--------------------------------------------------------------------------------
New Jersey 4.0%
--------------------------------------------------------------------------------
North Carolina 3.3%
--------------------------------------------------------------------------------
Ohio 3.1%
--------------------------------------------------------------------------------
Utah 3.1%
--------------------------------------------------------------------------------
Other 19.6%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Health Care 25.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 14.5%
--------------------------------------------------------------------------------
Transportation 6.6%
--------------------------------------------------------------------------------
Consumer Discretionary 6.2%
--------------------------------------------------------------------------------
Utilities 5.8%
--------------------------------------------------------------------------------
Industrials 4.9%
--------------------------------------------------------------------------------
Other 14.8%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
AA 12%
A 16%
BBB 22%
BB or Lower 12%
N/R 38%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.0785
Jun 0.0785
Jul 0.0785
Aug 0.0785
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.08
Apr 0.08
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 14.7499
14.71
14.65
14.63
14.51
14.62
14.47
14.34
13.97
13.77
13.8
13.71
13.44
13.35
13.43
13.48
13.52
13.44
13.44
13.59
13.4
12.4
11.34
11.47
7.1
9.85
10.14
10.04
10.25
9.91
8.2
8.95
8.11
7.12
7.7606
8.28
8
9.9886
10.28
10.11
9.36
10.13
9.9
9.38
9.49
8.3388
9.02
9.02
9.42
9.99
9.85
9.28
9.47
4/30/09 9.8
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades. Please see the
Portfolio Managers' Commentary for an expanded discussion of the affect on
the Fund of changes to the ratings of certain bonds in the portfolio
resulting from changes to the ratings of the underlying insurers both
during the period and after period end.
(2) Excluding investments in derivatives.
(3) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
18 Nuveen Investments
NQM | Nuveen Investment Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.3% (0.8% OF TOTAL INVESTMENTS)
$ 3,800 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA $ 3,700,250
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
(UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 2005A:
1,200 5.250%, 11/15/20 11/15 at 100.00 Baa1 927,372
800 5.000%, 11/15/30 11/15 at 100.00 Baa1 512,680
1,650 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,151,337
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,450 Total Alabama 6,291,639
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.6% (1.0% OF TOTAL INVESTMENTS)
4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 4,253,640
Settlement Asset-Backed Bonds, Series 2000, 6.500%,
6/01/31 (Pre-refunded 6/01/10)
Northern Tobacco Securitization Corporation, Alaska, Tobacco
Settlement Asset-Backed Bonds, Series 2006A:
4,000 5.000%, 6/01/32 6/14 at 100.00 Baa3 2,399,960
1,500 5.000%, 6/01/46 6/14 at 100.00 Baa3 785,490
------------------------------------------------------------------------------------------------------------------------------------
9,500 Total Alaska 7,439,090
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.8% (1.1% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
200 5.250%, 12/01/24 12/15 at 100.00 BBB 176,254
265 5.250%, 12/01/25 12/15 at 100.00 BBB 231,907
2,500 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 1,531,300
Longs, Series 11032- 11034, 10.519%, 7/01/31 - FSA Insured
(IF)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 4,863,700
Airport Revenue Bonds, Series 2008, Trust 1132, 9.117%,
7/01/38 (IF)
2,450 Salt Verde Financial Corporation, Arizona, Senior Gas No Opt. Call A 1,660,831
Revenue Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,415 Total Arizona 8,463,992
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.6% (1.0% OF TOTAL INVESTMENTS)
University of Arkansas, Pine Bluff Campus, Revenue Bonds,
Series 2005A:
3,290 5.000%, 12/01/30 - AMBAC Insured 12/15 at 100.00 Aa3 3,335,928
2,000 5.000%, 12/01/35 - AMBAC Insured 12/15 at 100.00 Aa3 2,013,300
Van Buren County, Arkansas, Sales and Use Tax Revenue
Refunding and Construction Bonds, Series 2000:
1,055 5.600%, 12/01/25 - AMBAC Insured 12/10 at 100.00 N/R 1,060,497
635 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 636,391
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 Baa1 786,360
Washington Regional Medical Center, Series 2005B, 5.000%,
2/01/30
------------------------------------------------------------------------------------------------------------------------------------
7,980 Total Arkansas 7,832,476
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 19
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.0% (12.5% OF TOTAL INVESTMENTS)
$ 2,250 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ $ 2,216,273
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,000 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 860,640
University of the Pacific, Series 2006, 5.000%, 11/01/30
2,500 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A2 2,287,825
Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%,
11/15/27
4,285 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 3,611,184
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
1,800 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 1,702,134
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.644%, 11/15/42 (IF)
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
1,000 5.250%, 7/01/30 7/15 at 100.00 BBB 703,840
2,000 5.000%, 7/01/39 7/15 at 100.00 BBB 1,257,880
1,390 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 1,268,543
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.216%, 11/15/48 (IF)
1,900 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,924,529
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,530 Commerce Joint Power Financing Authority, California, Tax 8/13 at 100.00 N/R 2,073,031
Allocation Refunding Bonds, Redevelopment Projects 2 and
3, Series 2003A, 5.000%, 8/01/28 - RAAI Insured
145 Commerce Joint Power Financing Authority, California, Tax 8/13 at 100.00 N/R (4) 165,264
Allocation Refunding Bonds, Redevelopment Projects 2 and
3, Series 2003A, 5.000%, 8/01/28 (Pre-refunded 8/01/13) -
RAAI Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
3,000 5.000%, 6/01/33 6/17 at 100.00 BBB 1,917,810
610 5.125%, 6/01/47 6/17 at 100.00 BBB 314,583
9,740 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 14,164,103
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19 (ETM)
1,030 Natomas Union School District, Sacramento County, California, No Opt. Call AA- 1,159,306
General Obligation Refunding Bonds, Series 1999, 5.950%,
9/01/21 - MBIA Insured
15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AA- 19,884,550
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
13,145 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 18,976,647
Single Family Mortgage Revenue Bonds, Series 1988B,
8.200%, 9/01/23 (Alternative Minimum Tax) (ETM)
3,415 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 4,066,343
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26 (Pre-refunded 7/01/14)
5,000 Riverside Unified School District, Riverside County, 2/12 at 101.00 AA- 4,982,150
California, General Obligation Bonds, Series 2002A,
5.000%, 2/01/27 - FGIC Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 204,440
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 216,637
5,000 San Francisco Unified School District, California, General 6/17 at 100.00 AAA 3,796,550
Obligation Bonds, Series 2007A, 3.000%, 6/15/25 - FSA
Insured
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
6,175 0.000%, 1/15/28 - MBIA Insured No Opt. Call AA- 1,446,556
8,135 0.000%, 1/15/34 - MBIA Insured No Opt. Call AA- 1,156,553
17,195 0.000%, 1/15/35 - MBIA Insured No Opt. Call AA- 2,259,079
3,185 University of California, General Revenue Bonds, Series 5/13 at 101.00 Aa1 3,014,188
2005G, 4.750%, 5/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
112,725 Total California 95,630,638
------------------------------------------------------------------------------------------------------------------------------------
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.8% (2.4% OF TOTAL INVESTMENTS)
$ 1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- $ 785,960
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/29
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 338,020
Valley Health Care, Series 2005F, 5.000%, 3/01/25
12,450 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 12,574,251
Refunding Bonds, Series 2000A, 6.000%, 11/15/19 - AMBAC
Insured (Alternative Minimum Tax)
14,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 41.72 AA- 1,571,075
Series 2004B, 0.000%, 3/01/36 - MBIA Insured
3,000 Park Creek Metropolitan District, Colorado, Senior Property 12/19 at 100.00 AAA 3,060,300
Tax Supported Revenue Bonds, Series 2009, 6.250%, 12/01/30
- AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,350 Total Colorado 18,329,606
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 7.5% (4.7% OF TOTAL INVESTMENTS)
23,745 District of Columbia Water and Sewerage Authority, Public No Opt. Call AAA 26,611,259
Utility Revenue Bonds, Series 1998, 5.500%, 10/01/23 - FSA
Insured (UB)
3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AA- 3,438,600
6.000%, 6/01/16 - MBIA Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 AA- (4) 4,805,257
Series 2001A, 0.000%, 4/01/31(Pre-refunded 4/01/11) - MBIA
Insured
1,200 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,001,592
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 10.676%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,895 Total District of Columbia 35,856,708
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.7% (3.6% OF TOTAL INVESTMENTS)
1,000 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 AA- 1,008,820
Revenue Bonds, Series 2005A, 5.000%, 5/01/27 - MBIA Insured
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 3,691,775
Bonds, Health First Inc. Project, Series 2005, 5.000%,
4/01/24
1,580 Escambia County Health Facilities Authority, Florida, Health 10/10 at 100.00 Baa1 1,429,537
Facility Revenue Refunding Bonds, Baptist Hospital and
Baptist Manor, Series 1998, 5.125%, 10/01/19
3,200 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 1,652,608
Florida, Exempt Facilities Remarketed Revenue Bonds,
National Gypsum Company, Apollo Beach Project, Series
2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
14,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/17 at 100.00 AA- 11,809,840
International Airport Hub, Series 2007B, 4.500%, 10/01/31 -
MBIA Insured
5,895 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 5,163,902
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
2,000 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,132,280
Assessment Bonds, Series 2006, 5.400%, 5/01/37
1,250 Wyndam Park Community Development District, Florida, Special 5/13 at 101.00 A 1,226,275
Assessment Bonds, Series 2003, 6.375%, 5/01/34
------------------------------------------------------------------------------------------------------------------------------------
33,155 Total Florida 27,115,037
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.0% (3.1% OF TOTAL INVESTMENTS)
10,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ (4) 10,437,600
Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC
Insured
2,710 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 2,805,446
2004, 5.000%, 11/01/23 - FSA Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call AA- 1,750,620
Hamilton Health Care System Inc., Series 1996, 5.500%,
8/15/26 - MBIA Insured
5,980 Fulton County Development Authority, Georgia, Revenue Bonds, 9/11 at 102.00 A 6,108,869
Georgia State University - TUFF/Atlanta Housing LLC,
Series 2001A, 5.500%, 9/01/22 - AMBAC Insured
Nuveen Investments 21
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA (continued)
$ 2,250 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ $ 2,619,698
Obligation Bonds, Fourth Crossover Series 1997E, 6.500%,
1/01/20
------------------------------------------------------------------------------------------------------------------------------------
22,940 Total Georgia 23,722,233
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.2% (0.7% OF TOTAL INVESTMENTS)
4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aa3 4,825,296
5.375%, 12/01/31 - MBIA Insured
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
500 5.250%, 9/01/26 9/16 at 100.00 BBB- 375,615
500 5.250%, 9/01/30 9/16 at 100.00 BBB- 358,315
------------------------------------------------------------------------------------------------------------------------------------
5,810 Total Idaho 5,559,226
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.2% (6.4% OF TOTAL INVESTMENTS)
4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 BBB+ (4) 4,968,574
University, Series 2000, 6.250%, 3/01/20(Pre-refunded
3/01/10) - RAAI Insured
4,775 Chicago Public Building Commission, Illinois, General 3/13 at 100.00 A (4) 5,419,912
Obligation Lease Bonds, Chicago Transit Authority, Series
2003, 5.250%, 3/01/23 (Pre-refunded 3/01/13) - AMBAC
Insured
2,110 Illinois Development Finance Authority, Local Government 1/11 at 100.00 Aa2 (4) 2,271,204
Program Revenue Bonds, DuPage and Cook Counties Community
Unit School District 205 - Elmhurst, Series 2000, 6.000%,
1/01/19 (Pre-refunded 1/01/11) - FSA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,500 5.250%, 11/15/21 5/14 at 100.00 A 2,338,400
1,000 5.250%, 11/15/22 5/14 at 100.00 A 923,250
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 295,393
Series 2006, 5.125%, 1/01/25
2,600 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 2,876,562
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aa3 14,694,957
Illinois, General Obligation School Bonds, Series 1997,
7.800%, 1/01/12 - FSA Insured
6,300 Madison County Community Unit School District 7, No Opt. Call N/R (4) 7,003,206
Edwardsville, Illinois, School Building Bonds, Series
1994, 5.850%, 2/01/13 - FGIC Insured (ETM)
6,015 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AA- 3,209,784
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 12/15/21 - MBIA Insured
Will County High School District 204, Joliet, Illinois,
General Obligation Bonds, Series 2001:
1,145 8.700%, 12/01/13 - FSA Insured No Opt. Call AAA 1,469,390
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,718,535
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call A2 1,492,440
Obligation School Building Bonds, Series 2001, 8.400%,
12/01/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
46,750 Total Illinois 48,681,607
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.2% OF TOTAL INVESTMENTS)
5,530 Allen County Jail Building Corporation, Indiana, First 4/11 at 101.00 N/R (4) 6,081,783
Mortgage Bonds, Series 2000, 5.750%, 4/01/20 (Pre-refunded
4/01/11)
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily 7/10 at 102.00 Aaa 1,917,769
Housing Mortgage Revenue Bonds, Cloverleaf Apartments
Project Phase I, Series 2000, 6.000%, 1/20/31
2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 2,545,075
Revenue Bonds, Blueridge Terrace Project, Series 2000,
6.050%, 1/20/36
St. Joseph County Hospital Authority, Indiana, Revenue Bonds,
Madison Center Inc., Series 2005:
1,550 5.250%, 2/15/23 2/15 at 100.00 BBB- 1,245,270
2,500 5.375%, 2/15/34 2/15 at 100.00 BBB- 1,765,925
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 2,765 Wayne County Jail Holding Corporation, Indiana, First 1/13 at 101.00 A (4) $ 3,212,322
Mortgage Bonds, Series 2001, 5.750%,7/15/14 (Pre-refunded
1/15/13) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,720 Total Indiana 16,768,144
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9% (0.6% OF TOTAL INVESTMENTS)
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 4,490,960
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,000 Kansas Development Finance Authority, Health Facilities 11/15 at 100.00 A2 953,590
Revenue Bonds, Hays Medical Center Inc., Series 2005L,
5.000%, 11/15/22
455 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 494,631
Securities Program Single Family Revenue Bonds, Series
1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax)
3,145 Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 4,051,955
Hotel Corporation, Series 1988, 9.500%, 10/01/16
(Pre-refunded 8/15/16) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,600 Total Kansas 5,500,176
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,000 Jefferson County, Kentucky, Health Facilities Revenue 7/09 at 100.00 A+ 1,982,360
Refunding Bonds, Jewish Hospital HealthCare Services Inc.,
Series 1996, 5.700%, 1/01/21 - AMBAC Insured
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 406,434
Kentucky, Industrial Building Revenue Bonds, Sisters of
Mercy of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,510 Total Kentucky 2,388,794
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.4% (0.9% OF TOTAL INVESTMENTS)
675 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/09 at 101.00 Aaa 684,173
GNMA/FNMA Mortgage-Backed Securities Program Family
Mortgage Revenue Refunding Bonds, Series 1997D, 5.900%,
10/01/30(Alternative Minimum Tax)
Jefferson Parish Home Mortgage Authority, Louisiana, Single
Family Mortgage Revenue Bonds, Series 2000G-2:
745 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 772,237
510 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 510,383
335 Jefferson Parish Home Mortgage Authority, Louisiana, Single 12/09 at 103.00 Aaa 357,549
Family Mortgage Revenue Refunding Bonds, Series 2000A-2,
7.500%, 12/01/30 (Alternative Minimum Tax)
3,000 Louisiana Public Facilities Authority, Hospital Revenue 8/15 at 100.00 A+ 2,521,140
Bonds, Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 1,867,900
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
------------------------------------------------------------------------------------------------------------------------------------
7,765 Total Louisiana 6,713,382
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 2,502,625
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5% (2.2% OF TOTAL INVESTMENTS)
4,885 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 3,973,459
Living Revenue Bonds, Prospect House Apartments, Series
1999, 7.000%, 12/01/31
1,105 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 945,891
Revenue Bonds, Caritas Christi Obligated Group, Series
1999A, 5.625%, 7/01/20
1,875 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 1,821,169
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.500%, 7/01/21
2,030 Massachusetts Industrial Finance Agency, Resource Recovery 6/09 at 102.00 BBB 1,628,425
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
Nuveen Investments 23
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 5,100 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA $ 5,369,586
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
(UB)
3,120 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 2,767,502
Bonds, Series 2007A, 4.500%,8/01/46 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,115 Total Massachusetts 16,506,032
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.4% (2.7% OF TOTAL INVESTMENTS)
4,250 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 4,762,635
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/20 (Pre-refunded 5/01/12) - FSA
Insured
10,215 Detroit, Michigan, Water Supply System Revenue Refunding No Opt. Call AA- 11,385,639
Bonds, Series 1993, 6.500%, 7/01/15 - FGIC Insured
1,800 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 1,297,728
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
1,350 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ 1,374,192
Program, Series 2005II, 5.000%,10/15/22 - AMBAC Insured
2,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,873,920
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 199,679
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
------------------------------------------------------------------------------------------------------------------------------------
19,955 Total Michigan 20,893,793
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 9.0% (5.6% OF TOTAL INVESTMENTS)
8,250 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 7,820,753
Inc., Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 7,153,350
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax)
(ETM)
620 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 623,212
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
19,380 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 21,138,343
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%,
11/15/29 (Pre-refunded 11/15/10)
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 809,780
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%,
11/15/25
6,280 Washington County, Minnesota, General Obligation Bonds, 8/17 at 100.00 AAA 5,319,286
Capital Improvement Plan, Series 2007A, 3.500%, 2/01/28
------------------------------------------------------------------------------------------------------------------------------------
40,530 Total Minnesota 42,864,724
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,265,195
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
1,250 Warren County, Mississippi, Gulf Opportunity Zone Revenue 8/11 at 100.00 BBB 785,050
Bonds, International Paper Company, Series 2006A, 4.800%,
8/01/30
------------------------------------------------------------------------------------------------------------------------------------
3,525 Total Mississippi 3,050,245
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.3% (0.8% OF TOTAL INVESTMENTS)
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 178,138
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aa2 1,048,450
Missouri, General Obligation Bonds, Series 2006, 5.250%,
3/01/26 - MBIA Insured
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
$ 780 6.000%, 6/01/20 No Opt. Call BBB+ $ 751,850
1,525 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,158,634
2,985 Missouri Development Finance Board. Infrastructure Facilities 4/14 at 100.00 A+ 2,988,552
Revenue Bonds, City of Independence, Missouri - Events
Center Project, Series 2009F, 6.250%, 4/01/38
------------------------------------------------------------------------------------------------------------------------------------
6,490 Total Missouri 6,125,624
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,000 Montana Board of Housing, Single Family Program Bonds, Series 6/14 at 100.00 AA+ 1,855,420
2005-RA-1, 4.750%, 6/01/44
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.5% (1.6% OF TOTAL INVESTMENTS)
11,215 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 10,282,585
2007A, 4.500%, 9/01/37 - FGIC Insured (UB)
1,740 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan Program, 9/09 at 100.00 N/R 1,741,392
Series 1993B, 5.875%, 6/01/14 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,955 Total Nebraska 12,023,977
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.9% (2.4% OF TOTAL INVESTMENTS)
11,000 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 12,419,220
Bonds, Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12)
- MBIA Insured
14,530 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 A 4,371,351
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/34 - AMBAC Insured
1,600 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 1,641,008
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
27,130 Total Nevada 18,431,579
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.5% (1.5% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,367,374
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,019,340
600 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 613,986
Bonds, University of Medicine and Dentistry of New Jersey
Issue, Series 2009 B, 7.500%, 12/01/32
680 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 533,990
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,425 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 3,688,828
Transportation System Bonds, Series 2006A, 5.250%, 12/15/20
700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 706,286
5.250%, 1/01/40
1,520 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 1,642,801
Settlement Asset-Backed Bonds, Series 2002, 5.750%,
6/01/32 (Pre-refunded 6/01/12)
4,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,168,800
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%,
6/01/34
------------------------------------------------------------------------------------------------------------------------------------
13,250 Total New Jersey 11,741,405
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
Farmington, New Mexico, Hospital Revenue Bonds, San Juan
Regional Medical Center Inc., Series 2004A:
880 5.125%, 6/01/17 6/14 at 100.00 A3 866,527
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,242,242
------------------------------------------------------------------------------------------------------------------------------------
2,175 Total New Mexico 2,108,769
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.3% (10.2% OF TOTAL INVESTMENTS)
$ 1,665 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA $ 1,728,886
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
4,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA- 3,093,681
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured
3,000 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AA- 2,474,400
Revenue Bonds, Series 2006F, 4.250%,5/01/33 - MBIA Insured
1,000 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 977,410
Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34
2,250 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 2,197,733
Transportation Revenue Bonds, Series 2005B, 5.000%,
11/15/30 - AMBAC Insured
3,200 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 3,089,440
Transportation Revenue Bonds, Series 2005F, 5.000%,
11/15/30
7,800 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 7,914,036
Water and Sewerage System Revenue Bonds, Fiscal Series
2005B, 5.000%, 6/15/28 - AMBAC Insured
5,570 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 5,827,278
Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%,
2/01/22 (UB)
1,745 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA 1,822,426
Series 2003J, 5.500%, 6/01/20
3,255 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA (4) 3,723,460
Series 2003J, 5.500%, 6/01/20 (Pre-refunded 6/01/13)
4,200 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 4,241,412
Series 2005J, 5.000%, 3/01/25
7,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 7,095,620
Series 2005M, 5.000%, 4/01/24 (UB)
1,250 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 1,472,375
2008, Trust 3217, 18.095%, 8/15/20 (IF)
5,000 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 5,237,100
Purpose Revenue Bonds, Series 2003C, 5.250%, 12/01/19
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,492,556
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
4,205 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 4,354,320
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/23 -
FGIC Insured
16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call AA- 17,085,367
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
77,040 Total New York 77,827,500
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7% (1.1% OF TOTAL INVESTMENTS)
7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 8,222,547
Bonds, Mission St. Joseph's Health System, Series 2001,
5.250%, 10/01/26 (Pre-refunded 10/01/11)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.9% (0.6% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
3,385 5.125%, 6/01/24 6/17 at 100.00 BBB 2,667,651
530 5.875%, 6/01/30 6/17 at 100.00 BBB 359,488
525 5.750%, 6/01/34 6/17 at 100.00 BBB 332,383
1,180 5.875%, 6/01/47 6/17 at 100.00 BBB 662,889
250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 220,530
Economic Development Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,870 Total Ohio 4,242,941
------------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7% (1.0% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
$ 500 5.375%, 9/01/29 9/16 at 100.00 BBB- $ 346,090
750 5.375%, 9/01/36 9/16 at 100.00 BBB- 492,045
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
1,900 5.000%, 2/15/37 2/17 at 100.00 A 1,653,627
990 5.000%, 2/15/42 2/17 at 100.00 A 839,956
5,280 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 4,527,548
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
88 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 65,175
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.325%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
9,508 Total Oklahoma 7,924,441
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.6% (2.3% OF TOTAL INVESTMENTS)
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 316,320
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 3,106,620
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured (UB)
5,125 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,588,720
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
2,750 Philadelphia Hospitals and Higher Education Facilities 5/09 at 100.00 BBB 2,582,910
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, Series 3/11 at 100.00 AAA 5,394,250
2001, 5.250%, 9/15/18 (Pre-refunded 3/15/11) - FSA Insured
1,000 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,172,870
Revenue Bonds, Catholic Health East, Series 2004B, 5.500%,
11/15/24 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
17,375 Total Pennsylvania 17,161,690
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,567,350
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,172,582
8/01/21 - CIFG Insured
14,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 1,484,140
Revenue Bonds, Series 2007A, 0.000%,8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,725 Total Puerto Rico 4,224,072
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.5% (1.0% OF TOTAL INVESTMENTS)
2,410 Rhode Island Health and Educational Building Corporation, 5/09 at 100.00 AA- 2,301,839
Hospital Financing Revenue Bonds, Lifespan Obligated
Group, Series 1996, 5.750%, 5/15/23 - MBIA Insured
5,445 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,025,953
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
7,855 Total Rhode Island 7,327,792
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.7% (1.7% OF TOTAL INVESTMENTS)
2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,038,220
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 4,535,696
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
1,355 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 1,549,090
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
Nuveen Investments 27
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 5,145 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- $ 4,648,868
Development Revenue Bonds, Bon Secours Health System
Inc., Series 2002B, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
12,905 Total South Carolina 12,771,874
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,716,803
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.9% (1.8% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 2,510,624
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
5,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 A1 4,947,950
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.500%,
4/15/31
5,000 Metropolitan Government of Nashville-Davidson County Health 10/19 at 100.00 AA 5,076,950
and Educational Facilities Board, Tennessee, Revenue
Refunding Bonds, Vanderbilt University, Series 2009B,
5.000%, 10/01/39
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner
Regional Health System Inc., Series 2007:
700 5.500%, 11/01/37 11/17 at 100.00 N/R 355,537
1,700 5.500%, 11/01/46 11/17 at 100.00 N/R 838,117
------------------------------------------------------------------------------------------------------------------------------------
15,600 Total Tennessee 13,729,178
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.0% (9.4% OF TOTAL INVESTMENTS)
3,080 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa 3,283,619
Collateralized Mortgage Loan Multifamily Housing Revenue
Bonds, Santa Maria Village Project, Series 2000A, 7.375%,
6/20/35 (Alternative Minimum Tax)
5,000 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 4,522,550
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
635 Clear Creek Independent School District, Galveston and 2/10 at 100.00 AAA 646,995
Harris Counties, Texas, Unlimited Tax Schoolhouse and
Refunding Bonds, Series 2000, 5.500%, 2/15/22
18,075 Clear Creek Independent School District, Galveston and 2/10 at 100.00 AAA 18,787,335
Harris Counties, Texas, Unlimited Tax Schoolhouse and
Refunding Bonds, Series 2000, 5.500%, 2/15/22
(Pre-refunded 2/15/10)
1,520 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 1,576,939
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
185 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 (4) 193,678
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
2,256 Heart of Texas Housing Finance Corporation, GNMA 6/10 at 105.00 Aaa 2,394,360
Collateralized Mortgage Loan Revenue Bonds, Robinson
Garden Project, Series 2000A, 7.375%, 6/20/35
(Alternative Minimum Tax)
11,950 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 6,759,637
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/22 -
FSA Insured (ETM)
4,680 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 2,533,658
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/22 -
FSA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 730,072
1,220 5.125%, 8/15/26 No Opt. Call BBB- 1,010,672
3,150 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 2,976,845
Refunding Bonds, Series 2008, 5.750%, 1/01/38
1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 382,700
Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100.00 AA- 3,961,782
Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 7,500 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- $ 7,027,125
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
3,095 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 3,218,862
Texas, GNMA Collateralized Mortgage Loan Revenue Bonds,
Eastview Nursing Home, Ebony Lake Nursing Center, Ft.
Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.500%, 12/20/22
Texas Turnpike Authority, First Tier Revenue Bonds, Central
Texas Turnpike System, Series 2002A:
10,000 0.000%, 8/15/21 - AMBAC Insured No Opt. Call A 4,734,200
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call A 4,844,160
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,023,575
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
92,606 Total Texas 71,608,764
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Amherst Industrial Development Authority, Virginia, Revenue 9/16 at 100.00 BBB 818,250
Bonds, Sweet Briar College, Series 2006, 5.000%, 9/01/26
1,890 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 1,547,816
Residential Rental Housing Revenue Bonds, Hamptons and
Hampton Court Apartments, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,890 Total Virginia 2,366,066
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.3% (4.0% OF TOTAL INVESTMENTS)
11,345 Chelan County Public Utility District 1, Washington, No Opt. Call AA 7,220,184
Columbia River-Rock Island Hydro-Electric System Revenue
Refunding Bonds, Series 1997A, 0.000%, 6/01/19 - MBIA
Insured
17,075 Port of Seattle, Washington, General Obligation Bonds, 12/10 at 100.00 AAA 17,148,251
Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax)
(UB)
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AA- 5,087,000
5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax)
(UB)
1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 635,229
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
34,420 Total Washington 30,090,664
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2% (0.7% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 4,847,600
Bonds, Appalachian Power Company, Series 2003L, 5.500%,
10/01/22
1,000 West Virginia Hospital Finance Authority Hospital Revenue 10/18 at 100.00 N/R 767,760
Bonds (Thomas Health System, Inc.) Series 2008, 6.500%,
10/01/38
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total West Virginia 5,615,360
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.9% (2.5% OF TOTAL INVESTMENTS)
6,200 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 6,652,041
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27 (Pre-refunded 6/01/12)
315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 220,603
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Eagle River Memorial Hospital Inc., Series
2000:
1,000 5.750%, 8/15/20 - RAAI Insured 8/10 at 101.00 BBB+ 924,719
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 BBB+ 2,436,209
1,150 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,007,146
Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.750%,
5/01/24
Nuveen Investments 29
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 4,000 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ $ 2,741,079
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, 5.250%, 8/15/34
4,600 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 4,689,745
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
20,265 Total Wisconsin 18,671,542
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,500 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB 1,866,270
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 850,919 Total Long-Term Investments (cost $766,785,402) - 156.0% 744,255,405
==============----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.8% (2.4% OF TOTAL INVESTMENTS)
FLORIDA - 1.1% (0.7% OF TOTAL INVESTMENTS)
5,268 Florida Board of Education, Lottery Revenue Bonds, Variable 7/11 at 100.00 A-1 5,268,000
Rate Demand Obligations, Series 2001B, Trust 570, 0.630%,
7/01/14 - FGIC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3% (0.8% OF TOTAL INVESTMENTS)
6,000 Maryland Health and Higher Educational Facilities Authority, 5/09 at 100.00 A-1 6,000,000
Goucher College, Variable Rate Demand Obligations, Series
2007, 0.480%, 7/01/37 (5)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,000 Red River Authority, Texas, Pollution Control Revenue Bonds, 5/09 at 100.00 A-1+ 3,000,000
Southwestern Public Service Company, Variable Rate Demand
Obligations, Series 1996, 8.500%, 7/01/16 - AMBAC Insured
(5)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,015 Virginia Resources Authority, Clean Water State Revolving 10/18 at 100.00 A-1 4,015,000
Fund Revenue Bonds, Variable Rate Demand Obligations,
Series 2008, Trust 2917, 0.650%, 10/01/28 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 18,283 Total Short-Term Investments (cost $18,283,000) 18,283,000
==============----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $785,068,402) - 159.8% 762,538,405
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (17.9)% (85,527,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 10,850,698
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (44.2)% (6) (210,700,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 477,162,103
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 27.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to the
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
30 Nuveen Investments
NQS | Nuveen Select Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.0% (1.8% OF TOTAL INVESTMENTS)
$ 10,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 AA- $ 8,996,500
Revenue Bonds, Coffee Health Group, Series 2000A, 6.000%,
7/01/29 - MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 3,950,122
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,155 Total Alabama 12,946,622
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.6% (0.4% OF TOTAL INVESTMENTS)
500 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 506,055
Bonds, Series 2005A, 5.000%, 12/01/26 - FGIC Insured (UB)
2,000 Kenai Peninsula Borough, Alaska, Revenue Bonds, Central Kenai 8/13 at 100.00 A3 2,035,860
Peninsula Hospital Service Area, Series 2003, 5.000%,
8/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Alaska 2,541,915
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.8% (1.7% OF TOTAL INVESTMENTS)
2,300 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,290,248
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
3,750 Salt River Project Agricultural Improvement and Power 12/13 at 100.00 Aa2 3,951,825
District, Arizona, Electric System Revenue Bonds, Series
2003, 5.000%, 12/01/18 - MBIA Insured
8,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 5,423,120
Bonds, Series 2007, 5.000%, 12/01/37
750 Scottsdale Industrial Development Authority, Arizona, 9/13 at 100.00 A3 664,628
Hospital Revenue Bonds, Scottsdale Healthcare, Series
2008A, 5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
14,800 Total Arizona 12,329,821
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.2% (0.7% OF TOTAL INVESTMENTS)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,197,590
Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.9% (3.0% OF TOTAL INVESTMENTS)
Calexico Unified School District, Imperial County,
California, General Obligation Bonds, Series 2005B:
3,685 0.000%, 8/01/31 - FGIC Insured No Opt. Call AA- 825,698
4,505 0.000%, 8/01/33 - FGIC Insured No Opt. Call AA- 875,051
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AA- 542,201
Revenue Bonds, Pacific Gas and Electric Company, Series
1996A, 5.350%, 12/01/16 - MBIA Insured (Alternative
Minimum Tax)
1,550 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 1,514,738
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, No Opt. Call AA- 268,320
California, General Obligation Bonds, Series 2005A,
0.000%, 8/01/30 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,200 0.000%, 2/01/30 - FGIC Insured 2/15 at 45.69 AA- 855,840
6,800 0.000%, 2/01/35 - FGIC Insured 2/15 at 34.85 AA- 1,293,904
Nuveen Investments 31
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
Cupertino Union School District, Santa Clara County,
California, General Obligation Bonds, Series 2003B:
$ 8,100 0.000%, 8/01/24 - FGIC Insured 8/13 at 58.68 AA $ 3,398,031
11,430 0.000%, 8/01/27 - FGIC Insured 8/13 at 49.99 AA 3,773,957
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 2,491,510
Enhanced Tobacco Settlement Revenue Bonds, Residual Series
2040, 9.540%, 6/01/45 - FGIC Insured (IF)
1,045 Lake Tahoe Unified School District, El Dorado County, No Opt. Call A2 311,086
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/31 - MBIA Insured
6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call AA- 1,213,320
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
5,000 Riverside County Asset Leasing Corporation, California, No Opt. Call AA- 1,993,150
Leasehold Revenue Bonds, Riverside County Hospital
Project, Series 1997, 0.000%, 6/01/25 - MBIA Insured
5,000 Santa Monica Community College District, Los Angeles County, 8/15 at 58.09 AA 1,734,950
California, General Obligation Bonds, Series 2005C,
0.000%, 8/01/26 - MBIA Insured
2,000 Yuba Community College District, California, General 8/17 at 45.45 A1 428,720
Obligation Bonds, Series 2007B, 0.000%,8/01/33 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
66,865 Total California 21,520,476
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 13.2% (8.2% OF TOTAL INVESTMENTS)
11,000 Colorado Department of Transportation, Revenue Anticipation 6/10 at 100.50 Aaa 11,724,350
Bonds, Series 2000, 6.000%,6/15/15 (Pre-refunded 6/15/10)
- AMBAC Insured
9,250 Colorado Health Facilities Authority, Remarketed Revenue 6/09 at 101.00 AAA 9,371,638
Bonds, Kaiser Permanente System, Series 1994A, 5.350%,
11/01/16 (ETM)
1,150 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,082,300
Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA
Insured
16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 17,008,084
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC
Insured (Alternative Minimum Tax)
4,500 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AA- 4,563,585
Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC
Insured (Alternative Minimum Tax)
1,500 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 981,795
Revenue Bonds, Convention Center Hotel, Series 2006,
4.625%, 12/01/30 - SYNCORA GTY Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
1,420 0.000%, 9/01/23 - MBIA Insured No Opt. Call AA- 471,312
8,515 0.000%, 9/01/25 - MBIA Insured No Opt. Call AA- 2,319,997
13,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 45.40 AA- 1,594,970
Series 2004B, 0.000%, 9/01/34 - MBIA Insured
5,000 Ebert Metropolitan District, Colorado, Limited Tax General 12/17 at 100.00 A3 3,778,550
Obligation Bonds, Series 2007, 5.350%, 12/01/37 - RAAI
Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 40.52 AAA 4,826,110
Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/26
(Pre-refunded 6/15/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
84,685 Total Colorado 57,722,691
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.7% (1.7% OF TOTAL INVESTMENTS)
District of Columbia Tobacco Settlement Corporation, Tobacco
Settlement Asset-Backed Bonds, Series 2001:
2,390 6.250%, 5/15/24 5/11 at 101.00 BBB 2,254,439
5,000 6.500%, 5/15/33 No Opt. Call BBB 3,833,600
5,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AA- 5,737,600
6.000%, 6/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,390 Total District of Columbia 11,825,639
------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.8% (2.4% OF TOTAL INVESTMENTS)
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
$ 3,075 5.875%, 10/01/18 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA $ 3,118,481
4,860 5.875%, 10/01/19 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 4,929,012
9,250 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 7,298,990
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/40 - MBIA Insured
2,500 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 1,259,750
Bonds, Baptist Health Systems of South Florida, Series
2007, ROLS 11151, 16.738%, 8/15/42 (IF)
------------------------------------------------------------------------------------------------------------------------------------
19,685 Total Florida 16,606,233
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/10 at 101.00 AA- 3,487,950
2000B, 5.625%, 1/01/30 - FGIC Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.5% (9.6% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
3,855 0.000%, 12/01/25 - FGIC Insured No Opt. Call AA- 1,590,380
2,925 0.000%, 12/01/31 - FGIC Insured No Opt. Call AA- 793,202
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,328,335
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded 7/01/10) - FGIC Insured
15,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A1 13,402,350
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Bonds, O'Hare International Airport, Series 2001C:
3,770 5.100%, 1/01/26 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 3,433,791
5,460 5.250%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,796,392
2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,813,920
Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC
Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 872,200
Services Corporation, Series 2008A, 5.500%, 2/01/40 -
AMBAC Insured
3,975 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 Baa1 2,709,678
Systems, Series 2007A, 5.500%, 8/01/37
10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 11,137,200
Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded
5/15/12)
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest 2/11 at 102.00 Aaa 2,022,140
Care Center I Inc., Series 2001, 5.950%, 2/20/36
8,945 Lake and McHenry Counties Community Unit School District 118, 1/15 at 74.44 Aa3 5,004,012
Wauconda, Illinois, General Obligation Bonds, Series
2005B, 0.000%, 1/01/21 - FSA Insured
9,000 McHenry County Community Unit School District 200, Woodstock, No Opt. Call Aa3 4,536,180
Illinois, General Obligation Bonds, Series 2006B, 0.000%,
1/15/23 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
6,700 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 3,104,780
2,920 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 2,939,301
1,100 0.000%, 12/15/35 - MBIA Insured No Opt. Call AAA 209,858
2,455 0.000%, 6/15/41 - MBIA Insured No Opt. Call AAA 329,535
7,500 Valley View Public Schools, Community Unit School District No Opt. Call AA 3,004,875
365U of Will County, Illinois, General Obligation Bonds,
Series 2005, 0.000%, 11/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
94,470 Total Illinois 68,028,129
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.2% (2.0% OF TOTAL INVESTMENTS)
$ 2,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 $ 1,272,220
Revenue Bonds, Cardinal Health System, Series 2006,
5.250%, 8/01/36
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,561,940
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
765 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa 788,945
Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26
(Alternative Minimum Tax)
2,225 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AA- 2,079,240
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
7,660 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/11 at 100.00 AA- (4) 8,286,665
Memorial Health System, Series 2000, 5.625%, 8/15/33
(Pre-refunded 2/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,650 Total Indiana 13,989,010
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,100 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 1,751,035
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 4,003,604
Series 2004A, 5.000%, 3/01/23 (UB)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,036,770
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 3,684,450
Clinic Foundation Project, Series 2007A, 5.375%, 5/15/43
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7% (1.1% OF TOTAL INVESTMENTS)
7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 AA (4) 7,644,975
Revenue Bonds, Johns Hopkins University, Series 1999,
6.000%, 7/01/39 (Pre-refunded 7/01/09)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.3% (0.2% OF TOTAL INVESTMENTS)
860 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AA 876,658
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 -
MBIA Insured (Alternative Minimum Tax)
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 385,535
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/38
------------------------------------------------------------------------------------------------------------------------------------
1,360 Total Massachusetts 1,262,193
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.5% (5.3% OF TOTAL INVESTMENTS)
540 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 Baa3 424,672
5.250%, 4/01/19 - SYNCORA GTY Insured
10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 10,439,900
Series 1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) -
FGIC Insured
6,475 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 6,725,194
Bonds, Ascension Health Credit Group, Series 1999A,
5.750%, 11/15/16 (Pre-refunded 11/15/09) - MBIA Insured
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/09 at 100.00 BB 2,794,689
Bonds, Detroit Medical Center Obligated Group, Series
1993A, 6.500%, 8/15/18
6,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 5,397,300
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C, 5.650%,
9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax)
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 7,500 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 $ 6,402,900
Bonds, Detroit Edison Company, Series 2002C, 5.450%,
12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax)
5,900 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AA- 4,914,759
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,690 Total Michigan 37,099,414
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.2% (1.4% OF TOTAL INVESTMENTS)
7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 7,497,910
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%,
1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
1,990 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 2,031,850
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,990 Total Minnesota 9,529,760
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,464,333
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 1,818,100
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,489,710
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Missouri 3,307,810
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.4% (4.0% OF TOTAL INVESTMENTS)
4,885 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA+ (4) 5,165,546
Bonds, Series 2000, 5.500%, 7/01/18 (Pre-refunded 7/01/10)
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AA- (4) 8,042,475
Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) -
MBIA Insured
1,950 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 A 586,697
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/32 - AMBAC Insured
2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,370,500
Healthcare West, Trust 2634, 16.017%, 7/01/31 - BHAC
Insured (IF)
10,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 11,714,598
Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
27,585 Total Nevada 27,879,816
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.4% (5.2% OF TOTAL INVESTMENTS)
16,840 New Jersey Health Care Facilities Financing Authority, 1/17 at 39.39 Baa2 1,489,835
Revenue Bonds, Saint Barnabas Health Care System, Series
2006A, 0.000%, 7/01/35
2,400 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- (4) 2,612,472
Revenue Bonds, Trinitas Hospital Obligated Group, Series
2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10)
14,865 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 Aaa 15,060,919
Program Revenue Bonds, Series 2000CC, 5.850%, 10/01/25 -
MBIA Insured (Alternative Minimum Tax)
1,905 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/09 at 100.75 A 1,905,229
Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 -
AMBAC Insured (Alternative Minimum Tax)
20,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 4,440,400
Transportation System Bonds, Series 2006C, 0.000%,
12/15/33 - FSA Insured
Nuveen Investments 35
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 7,120 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA $ 7,695,225
Settlement Asset-Backed Bonds, Series 2002, 5.750%,
6/01/32 (Pre-refunded 6/01/12)
6,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 3,441,620
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/41
------------------------------------------------------------------------------------------------------------------------------------
69,630 Total New Jersey 36,645,700
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 5.3% (3.3% OF TOTAL INVESTMENTS)
8,500 Farmington, New Mexico, Pollution Control Revenue Refunding 10/09 at 100.00 Baa3 7,584,890
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
8,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 8,758,640
6,200 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 6,787,946
------------------------------------------------------------------------------------------------------------------------------------
22,700 Total New Mexico 23,131,476
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.6% (6.6% OF TOTAL INVESTMENTS)
5,650 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 5,784,922
Revenue Bonds, Mental Health Services Facilities, Series
1999D, 5.250%, 8/15/24 (Pre-refunded 8/15/09) - FSA Insured
10,000 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AA- (4) 10,660,300
Lease Revenue Bonds, Court Facilities, Series 1999,
6.000%, 5/15/39 (Pre-refunded 5/15/10)
7,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 6,952,330
Service Contract Refunding Bonds, Series 2002A, 5.125%,
1/01/29
5,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 5,014,350
Water and Sewerage System Revenue Bonds, Fiscal Series
1999B, 5.000%, 6/15/29 - FSA Insured
2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 A (4) 2,356,250
Transportation Authority, Triborough Bridge and Tunnel
Authority, Certificates of Participation, Series 2000A,
5.750%, 1/01/20 (Pre-refunded 1/01/10) - AMBAC Insured
9,750 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 10,405,590
Future Tax Secured Bonds, Fiscal Series 2000B, 6.000%,
11/15/29 (Pre-refunded 5/15/10)
5,400 New York State Mortgage Agency, Homeowner Mortgage Revenue 9/09 at 101.00 Aa1 5,225,580
Bonds, Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
45,055 Total New York 46,399,322
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.9% (3.0% OF TOTAL INVESTMENTS)
18,555 North Carolina Eastern Municipal Power Agency, Power System 7/09 at 100.00 Baa1 18,565,018
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
FGIC Insured
3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,847,480
Doing Business as Carolinas HealthCare System, Health Care
Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47
------------------------------------------------------------------------------------------------------------------------------------
21,555 Total North Carolina 21,412,498
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.4% (3.3% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
3,000 5.375%, 6/01/24 6/17 at 100.00 BBB 2,432,040
260 5.125%, 6/01/24 6/17 at 100.00 BBB 204,901
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 1,831,356
2,755 5.750%, 6/01/34 6/17 at 100.00 BBB 1,744,218
7,995 5.875%, 6/01/47 6/17 at 100.00 BBB 4,491,351
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 2,097,544
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-3, 0.000%, 6/01/37
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
$ 5,000 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) $ 5,303,100
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,303,100
3,750 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/17 at 100.00 A+ --
University Hospitals Health System Inc., Series 2007A,
Trust 2812-1, 11.282%, 1/15/46 - AMBAC Insured (IF) (5)
195 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 198,793
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,805 Total Ohio 23,606,403
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,642,924
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
2,235 Oklahoma Development Finance Authority, Revenue Bonds, St. 2/14 at 100.00 A 2,124,859
John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
3,910 Total Oklahoma 3,767,783
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 97,458
Revenue Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/18 at 100.00 AAA 1,210,013
Series 2008, 5.000%, 12/01/43 - FSA Insured
3,250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 2,812,160
Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31
(Alternative Minimum Tax) (UB)
------------------------------------------------------------------------------------------------------------------------------------
4,595 Total Pennsylvania 4,119,631
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
800 Puerto Rico Public Buildings Authority, Guaranteed Government 7/17 at 100.00 Baa3 578,944
Facilities Revenue Refunding Bonds, Series 2002D, 0.000%,
7/01/31 - AMBAC Insured
2,200 Puerto Rico Public Buildings Authority, Guaranteed Government 7/17 at 100.00 Baa3 (4) 2,154,570
Facilities Revenue Refunding Bonds, Series 2002D, 0.000%,
7/01/31 (Pre-refunded 7/01/17) - AMBAC Insured
23,890 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AA- 936,727
Bonds, Series 2007A, 0.000%,8/01/54 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,890 Total Puerto Rico 3,670,241
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.9% (0.6% OF TOTAL INVESTMENTS)
Rhode Island Housing & Mortgage Finance Corporation,
Homeownership Opportunity 57-B Bond Program, Series 2008,
Trust 1177:
1,500 9.259%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,403,595
1,000 9.359%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 902,160
2,200 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 1,620,916
Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
4,700 Total Rhode Island 3,926,671
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.9% (5.5% OF TOTAL INVESTMENTS)
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2002:
5,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA (4) 6,460,630
4,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA (4) 5,285,970
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, Self 10/11 at 100.00 A 3,290,363
Memorial Hospital, Series 2001, 5.500%, 10/01/31
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 2,928,100
Hospital Revenue Refunding and Improvement Bonds, Series
2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13)
Nuveen Investments 37
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 2,825 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AA- $ 2,876,189
FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%,
2/15/22 - MBIA Insured
21,565 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call A 5,911,829
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC
Insured
1,250 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aa1 1,258,900
Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20 -
FSA Insured (Alternative Minimum Tax)
10,310 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 10,823,954
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
52,200 Total South Carolina 38,835,935
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.3% (1.4% OF TOTAL INVESTMENTS)
4,805 Sioux Falls, South Dakota, Industrial Revenue Refunding Bonds, 10/14 at 100.00 AAA 5,912,408
Great Plains Hotel Corporation, Series 1989, 8.500%,
11/01/16 (Pre-refunded 10/15/14) (Alternative Minimum Tax)
2,280 South Dakota Education Loans Inc., Revenue Bonds, Subordinate 6/09 at 101.00 B3 2,245,526
Series 1998-1K, 5.600%, 6/01/20 (Alternative Minimum Tax)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,716,803
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
8,835 Total South Dakota 9,874,737
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 7.2% (4.5% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 4,947,950
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,060 Knox County Health, Educational and Housing Facilities Board, 1/13 at 80.49 AAA 13,674,298
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A, 0.000%, 1/01/17 - FSA Insured
12,500 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 12,993,625
and Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 5.875%,
11/15/28(Pre-refunded 11/15/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,560 Total Tennessee 31,615,873
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.4% (9.0% OF TOTAL INVESTMENTS)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa2 2,104,962
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 4,682,803
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
4,080 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AA- 3,133,032
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 6,041,695
Revenue Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded
12/01/11) - AMBAC Insured
2,000 Ennis Independent School District, Ellis County, Texas, 8/16 at 54.64 Aaa 698,240
General Obligation Bonds, Series 2006, 0.000%, 8/15/28
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB 1,393,497
Revenue Bonds, Valero Energy Corporation, Series 2001,
6.650%, 4/01/32 (Alternative Minimum Tax)
7,570 Harris County-Houston Sports Authority, Texas, Junior Lien No Opt. Call AA- 1,331,563
Revenue Bonds, Series 2001H, 0.000%, 11/15/31 - MBIA Insured
5,000 Houston Community College System, Texas, Limited Tax General 2/13 at 100.00 AA 5,099,900
Obligation Bonds, Series 2003, 5.000%, 2/15/26 - AMBAC
Insured (UB)
9,000 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call A 7,094,700
Revenue Refunding Bonds, Houston Light and Power Company,
Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative
Minimum Tax)
7,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 4,537,190
Refunding Bonds, Capital Appreciation Series 2008I, 0.000%,
1/01/43
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 340 Panhandle Regional Housing Finance Corporation, Texas, GNMA 5/09 at 100.00 AAA $ 344,366
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1991A, 7.500%, 5/01/24 (Alternative
Minimum Tax)
2,110 Richardson Hospital Authority, Texas, Revenue Bonds, 12/13 at 100.00 Baa2 1,762,504
Richardson Regional Medical Center, Series 2004, 6.000%,
12/01/19
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 Baa2 4,463,167
Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21
5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100.00 AAA 5,602,080
Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%,
8/15/26
4,375 Tarrant County Cultural and Educational Facilities Finance 11/17 at 100.00 AA- 3,464,956
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2008, Trust 1197, 8.958%, 11/15/47 (IF)
4,520 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,529,221
State Participation Program, Series 1999C, 5.500%, 8/01/35
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/36 8/15 at 33.75 AAA 1,867,459
9,110 0.000%, 8/15/41 8/15 at 25.73 AAA 1,393,375
7,110 0.000%, 8/15/45 8/15 at 20.76 AAA 850,356
2,045 Winter Garden Housing Finance Corporation, Texas, GNMA/FNMA 10/09 at 100.00 AAA 2,047,209
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1994, 6.950%, 10/01/27 (Alternative
Minimum Tax)
2,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 57.10 AAA 819,900
General Obligation Bonds, Series 2005, 0.000%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
105,655 Total Texas 63,262,175
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.5% (2.8% OF TOTAL INVESTMENTS)
3,565 Utah Associated Municipal Power Systems, Revenue Bonds, Payson 4/13 at 100.00 AAA 3,600,222
Power Project, Series 2003A, 5.000%, 4/01/24 - FSA Insured
(UB)
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health Services 6/09 at 100.00 AA- (4) 16,103,605
Inc., Series 1997, 5.250%, 8/15/26 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,615 Total Utah 19,703,827
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.1% (1.3% OF TOTAL INVESTMENTS)
Vermont Educational and Health Buildings Financing Agency,
Revenue Bonds, Fletcher Allen Health Care Inc., Series
2000A:
3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 A 3,760,957
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 A 4,311,531
1,185 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 1,222,019
Series 2000-13A, 5.950%, 11/01/25 - FSA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,170 Total Vermont 9,294,507
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,000 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,370,600
Residential Care Facilities Mortgage Revenue Bonds, Goodwin
House, Inc., Series 2007A, 5.125%, 10/01/42
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.9% (2.4% OF TOTAL INVESTMENTS)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA 8,199,643
Consolidated System Revenue Bonds, Series 2001A, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax) (UB)
7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AA- 7,258,596
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
2,500 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,588,075
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
18,535 Total Washington 17,046,314
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB $ 4,847,600
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.3% (2.0% OF TOTAL INVESTMENTS)
7,635 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 8,191,668
Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%,
6/01/27 (Pre-refunded 6/01/12)
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 4,883,700
Bonds, Madison Gas and Electric Company Projects, Series
2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,285,915
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
14,735 Total Wisconsin 14,361,283
------------------------------------------------------------------------------------------------------------------------------------
$ 948,585 Total Long-Term Investments (cost $739,077,238) - 160.6% 702,752,812
==============----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.4% OF TOTAL INVESTMENTS)
MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 2,865 Missouri Development Finance Board, Kansas City, 7/09 at 100.00 VMIG-1 2,865,000
Infrastructure Facilities Revenue Bonds, Ninth Street
Garage Project, Variable Rate Demand Obligations, Series
2004B, 0.500%, 6/01/34 (6)
==============----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $2,865,000) 2,865,000
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $741,942,238) - 161.3% 705,617,812
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.4)% (19,230,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 9,051,156
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.0)% (7) (257,925,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 437,513,968
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Zero value on investments represents unrealized depreciation related to
Recourse Trusts. See Statement of Assets and Liabilities for more
information.
(6) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(7) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 36.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
40 Nuveen Investments
NQU | Nuveen Quality Income Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.1% (1.9% OF TOTAL INVESTMENTS)
Jefferson County, Alabama, Sewer Revenue Capitol Improvement
Warrants, Series 2001A:
$ 7,475 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA $ 8,018,806
6,340 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,762,434
6,970 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,477,068
------------------------------------------------------------------------------------------------------------------------------------
20,785 Total Alabama 22,258,308
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.6% (1.0% OF TOTAL INVESTMENTS)
6,110 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 6,154,175
Bonds, Series 2005A, 5.000%, 12/01/27 - FGIC Insured (UB)
11,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 5,760,260
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
17,110 Total Alaska 11,914,435
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.3% (1.4% OF TOTAL INVESTMENTS)
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A2 5,017,070
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/28 - MBIA Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, Series No Opt. Call AA- 1,107,630
2002, 5.250%, 7/01/17 - FGIC Insured
2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,340,036
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
8,010 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 8,220,663
District, Arizona, Electric System Revenue Refunding Bonds,
Series 2002A, 5.125%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
16,710 Total Arizona 16,685,399
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS)
Arkansas Development Finance Authority, Tobacco Settlement
Revenue Bonds, Arkansas Cancer Research Center Project,
Series 2006:
2,500 0.000%, 7/01/36 - AMBAC Insured No Opt. Call Aa3 538,975
19,800 0.000%, 7/01/46 - AMBAC Insured No Opt. Call Aa3 2,356,794
4,000 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aa3 4,024,840
Sciences Campus, Series 2004B, 5.000%, 11/01/34 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
26,300 Total Arkansas 6,920,609
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.1% (8.1% OF TOTAL INVESTMENTS)
12,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 2,203,625
Lease Revenue Bonds, Public Improvement Project, Series
1997C, 0.000%, 9/01/35 - FSA Insured
1,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 1,142,010
Bonds, Series 2002A, 5.750%, 5/01/17 (Pre-refunded 5/01/12)
6,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 4,805,580
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
3,450 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,156,440
Bonds, J. David Gladstone Institutes, Series 2001, 5.250%,
10/01/34
1,360 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 957,222
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
Nuveen Investments 41
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,600 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- $ 3,518,100
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
14,600 California, General Obligation Bonds, Series 2003, 5.250%, 8/13 at 100.00 A 14,547,002
2/01/28
25,000 California, General Obligation Bonds, Series 2005, 4.750%, 3/16 at 100.00 AA- 21,984,499
3/01/35 - MBIA Insured
10,000 California, Various Purpose General Obligation Bonds, Series 10/09 at 101.00 AA- 9,166,600
1999, 4.750%, 4/01/29 - MBIA Insured
16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A 14,775,680
2007, 5.000%, 6/01/37
8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AA- 5,686,415
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
10,000 5.000%, 6/01/33 6/17 at 100.00 BBB 6,392,700
1,500 5.125%, 6/01/47 6/17 at 100.00 BBB 773,565
30,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AA- 3,941,400
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
3,000 San Mateo County Community College District, California, No Opt. Call Aa1 890,220
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
MBIA Insured
1,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 831,105
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
148,010 Total California 94,772,163
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.2% (3.2% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 941,130
Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA
Insured
10,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 10,007,700
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC
Insured (Alternative Minimum Tax)
5,385 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AA- 1,332,572
Bonds, Series 1997B, 0.000%,9/01/26 - MBIA Insured
43,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AA- 5,777,910
Bonds, Series 2000B, 0.000%, 9/01/33 - MBIA Insured
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 65.63 Aaa 9,290,448
Bonds, Series 2000B, 0.000%, 9/01/17(Pre-refunded 9/01/10)
- MBIA Insured
7,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AA- 849,450
Series 2004A, 0.000%, 9/01/34 - MBIA Insured
8,740 Larimer County School District R1, Poudre, Colorado, General 12/10 at 100.00 Aa3 (4) 9,358,879
Obligation Bonds, Series 2000, 5.125%, 12/15/19
(Pre-refunded 12/15/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
89,525 Total Colorado 37,558,089
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.7% (0.4% OF TOTAL INVESTMENTS)
4,395 Bridgeport, Connecticut, General Obligation Bonds, Series 8/11 at 100.00 A- (4) 4,821,183
2001C, 5.375%, 8/15/17 (Pre-refunded 8/15/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 5,481,100
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,000 Medical Center Hospital Authority, Georgia, Revenue 8/18 at 100.00 AAA 5,362,000
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 2008, 6.500%, 8/01/38
------------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AA- $ 10,268,500
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.4% (9.6% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Revenues, Series 2001C:
1,000 5.500%, 12/01/18 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 1,109,840
3,000 5.000%, 12/01/20 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,291,420
2,000 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,194,280
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
9,400 0.000%, 12/01/14 - FGIC Insured No Opt. Call AA- 7,832,268
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AA- 3,483,040
32,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 9,591,585
Series 1999, 0.000%, 1/01/32 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, Neighborhoods
Alive 21 Program, Series 2000A:
680 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 729,184
4,320 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 4,632,466
190 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AA- 197,602
5.000%, 1/01/18 - AMBAC Insured
Chicago, Illinois, General Obligation Bonds, Series 2002A:
70 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 AAA 78,004
6,190 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 AA- (4) 6,897,765
5,045 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- 5,134,751
2000D, 5.750%, 1/01/30 - FGIC Insured
13,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 7/09 at 101.00 AA- 11,452,468
1998A, 5.125%, 1/01/35 - MBIA Insured (Alternative Minimum
Tax)
Chicago, Illinois, Second Lien Wastewater Transmission Revenue
Bonds, Series 2000:
8,000 5.750%, 1/01/25 (Pre-refunded 1/01/10) - MBIA Insured 1/10 at 101.00 AA (4) 8,351,920
7,750 6.000%, 1/01/30 (Pre-refunded 1/01/10) - MBIA Insured 1/10 at 101.00 AA- (4) 8,103,865
Illinois Educational Facilities Authority, Student Housing
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002:
3,000 6.625%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,493,440
1,800 6.000%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,063,070
1,050 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 A3 1,082,802
Certificates, Local Government Program - Kankakee County,
Series 2005B, 5.000%, 12/01/20 - AMBAC Insured
4,425 Illinois Finance Authority, Illinois, Northwestern University, 12/15 at 100.00 AAA 5,043,527
Revenue Bonds, Tender Option Bond Trust 3174, 14.628%,
12/01/42 (IF)
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,813,920
Hospital, Series 2008A, 5.250%, 8/15/47 - AGC Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 872,200
Services Corporation, Series 2008A, 5.500%, 2/01/40 - AMBAC
Insured
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ (4) 5,845,100
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
(Pre-refunded 8/15/14)
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 Aa3 (4) 10,456,100
Health System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured
(ETM)
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 12/10 at 100.00 AA- 5,222,150
Series 2000, 5.450%, 12/01/21 - MBIA Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,285,005
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
960 Montgomery, Illinois, Lakewood Creek Project Special 3/16 at 100.00 BBB+ 664,886
Assessment Bonds, Series 2007, 4.700%, 3/01/30 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
134,460 Total Illinois 111,922,658
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.7% (1.0% OF TOTAL INVESTMENTS)
$ 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 A+ $ 1,677,040
Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%,
3/01/34 - AMBAC Insured
3,240 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 A 3,239,708
Bonds, Marion General Hospital, Series 2002, 5.625%,
7/01/19 - AMBAC Insured
2,400 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 A 1,726,416
Community Hospitals of Indiana, Series 2005A, 5.000%,
5/01/35 - AMBAC Insured
6,015 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/09 at 100.50 AA- 5,406,823
Memorial Health System, Series 1998A, 4.625%, 8/15/28 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
13,655 Total Indiana 12,049,987
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9% (0.5% OF TOTAL INVESTMENTS)
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
4,000 5.375%, 6/01/38 6/15 at 100.00 BBB 2,244,040
7,000 5.625%, 6/01/46 6/15 at 100.00 BBB 3,953,950
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Iowa 6,197,990
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aa3 (4) 4,837,221
Obligation Bonds, Series 2000, 4.750%, 9/01/19
(Pre-refunded 9/01/10) - FSA Insured
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas 6/14 at 100.00 AA- 1,577,345
and Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,335 Total Kansas 6,414,566
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,036,770
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured
2,500 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,777,775
Refunding Bonds, Project 74, Series 2002, 5.375%, 2/01/18
(Pre-refunded 2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,500 Total Kentucky 3,814,545
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.6% (2.3% OF TOTAL INVESTMENTS)
10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, No Opt. Call AAA 11,350,100
Franciscan Missionaries of Our Lady Health System, Series
1998A, 5.750%, 7/01/25 - FSA Insured (UB)
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 6,724,440
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 A (4) 6,114,350
University, Series 2002A, 5.000%, 7/01/32 (Pre-refunded
7/01/12) - AMBAC Insured
2,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,033,260
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
27,390 Total Louisiana 26,222,150
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 8.1% (5.1% OF TOTAL INVESTMENTS)
500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 385,535
Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%,
7/01/38
7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 8,628,010
Revenue Bonds, Massachusetts Institute of Technology,
Series 2002K, 5.500%, 7/01/32 (UB)
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 6/09 at 102.00 BBB 4,813,080
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
12,500 Massachusetts Turnpike Authority, Metropolitan Highway System 7/09 at 100.00 AA- 10,369,000
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA
Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 7/09 at 101.00 A 11,001,285
Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 -
AMBAC Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 1,375 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/09 at 101.00 AAA $ 1,407,285
MWRA Loan Program, Subordinate Series 1999A, 5.750%,
8/01/29 (Pre-refunded 8/01/09)
5,570 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/09 at 101.00 AAA 5,646,142
MWRA Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AA+ (4) 10,693,400
Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10)
- FGIC Insured
5,730 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 A+ (4) 6,119,182
Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20
(Pre-refunded 11/01/10) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
62,580 Total Massachusetts 59,062,919
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.1% (1.3% OF TOTAL INVESTMENTS)
3,790 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 3,998,450
Detroit City School District, Series 2005, 5.000%, 6/01/20
- FSA Insured
7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 7,720,292
Bonds, Henry Ford Health System, Series 1999A, 6.000%,
11/15/24 (Pre-refunded 11/15/09)
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,142,839
Settlement Asset-Backed Revenue Bonds, Series 2008A,
6.875%, 6/01/42
1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,284,780
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
15,415 Total Michigan 15,146,361
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4% (0.9% OF TOTAL INVESTMENTS)
Chaska, Minnesota, Electric Revenue Bonds, Generating Facility
Project, Series 2000A:
1,930 6.000%, 10/01/20 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,069,500
2,685 6.000%, 10/01/25 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,879,072
3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,229,099
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM)
------------------------------------------------------------------------------------------------------------------------------------
8,270 Total Minnesota 10,177,671
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 1,866,919
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
2,500 Mississippi Hospital Equipment and Facilities Authority, 1/11 at 101.00 Aa3 (4) 2,704,450
Revenue Bonds, Forrest County General Hospital, Series
2000, 5.500%, 1/01/27 (Pre-refunded 1/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,375 Total Mississippi 4,571,369
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS)
15,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 5,454,300
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
2,400 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,463,000
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/23 - FSA Insured
15,350 Springfield Public Building Corporation, Missouri, Lease No Opt. Call A 4,293,702
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
0.000%, 6/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,750 Total Missouri 12,211,002
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.7% (3.6% OF TOTAL INVESTMENTS)
34,470 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 38,390,961
Bonds, Series 2002C, 5.000%, 6/15/20 (Pre-refunded 6/15/12)
- MBIA Insured
6,845 Director of Nevada State Department of Business and Industry, No Opt. Call A 761,985
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/23 - AMBAC Insured
Nuveen Investments 45
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA $ 2,370,500
Healthcare West, Trust 2634, 16.017%, 7/01/31 - BHAC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,815 Total Nevada 41,523,446
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.4% (3.4% OF TOTAL INVESTMENTS)
1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA 1,130,960
Series 2002A, 5.000%, 12/15/21 (Pre-refunded 12/15/12) -
FSA Insured
10,000 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 37.38 Baa2 802,200
Bonds, Saint Barnabas Health Care System, Series 2006A,
0.000%, 7/01/36
2,150 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 2,340,340
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AA (4) 2,278,550
System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded
12/15/11) - MBIA Insured
3,200 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,705,760
System Bonds, Series 2003C, 5.500%, 6/15/22 (Pre-refunded
6/15/13)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
20,000 0.000%, 12/15/33 - FSA Insured No Opt. Call AAA 4,440,400
20,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 3,875,000
20,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 3,614,200
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
2,165 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,339,910
1,000 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,143,030
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
9,420 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 11,328,021
1,850 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,188,273
------------------------------------------------------------------------------------------------------------------------------------
92,810 Total New Jersey 39,186,644
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,486,868
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21 (Pre-refunded 8/01/11)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.5% (11.5% OF TOTAL INVESTMENTS)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series
2000B:
100 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 A1 (4) 104,388
65 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 67,837
1,005 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 1,049,099
8,830 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 9,209,513
275 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 100.00 AA- 275,322
Bonds, Fordham University, Series 1998, 5.000%, 7/01/28 -
MBIA Insured
2,250 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AA- 2,314,418
Bonds, Mount Sinai School of Medicine, Series 1994A,
5.150%, 7/01/24 - MBIA Insured
20,000 Erie County Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA 21,486,399
York, Senior Tobacco Settlement Asset-Backed Bonds, Series
2000, 6.125%, 7/15/30 (Pre-refunded 7/15/10)
1,320 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA- 1,007,068
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured
1,130 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 1,244,164
Revenue Bonds, Series 2001A, 5.375%, 9/01/25 (Pre-refunded
9/01/11)
15,000 Metropolitan Transportation Authority, New York, Dedicated Tax 4/10 at 100.00 AA (4) 15,759,300
Fund Bonds, Series 2000A, 6.000%, 4/01/30 (Pre-refunded
4/01/10) - FGIC Insured
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 13,600 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA $ 12,541,648
Transportation Revenue Bonds, Series 2006B, 4.500%,
11/15/32 - FSA Insured (UB)
12,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 12,779,875
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33 (Pre-refunded 7/15/09)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000B:
8,035 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 8,554,382
2,065 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 2,198,482
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 AA 986,670
6,555 5.750%, 8/01/18 8/12 at 100.00 AA 7,083,530
3,990 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA (4) 4,570,824
Series 2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12)
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 5,403,150
Series 2003A, 5.750%, 8/01/16
New York State Environmental Facilities Corporation, State
Clean Water and Drinking Water Revolving Funds Revenue Bonds,
New York City Municipal Water Finance Authority Projects,
Second Resolution Bonds, Series 2001C:
6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,209,713
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,729,841
11,540 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 12,278,906
Revenue Bonds, One Hundred Twenty-Eighth Series 2002,
5.000%, 11/01/20 - FSA Insured
2,250 United Nations Development Corporation, New York, Senior Lien 7/09 at 100.00 A3 2,250,900
Revenue Bonds, Series 2004A, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
129,070 Total New York 134,105,429
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.0% (1.2% OF TOTAL INVESTMENTS)
4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA 3,410,080
Bonds, Mission St. Joseph's Health System, Series 2007,
4.500%, 10/01/31 (UB)
665 North Carolina Medical Care Commission, Hospital Revenue 12/10 at 100.00 AA 546,012
Bonds, Pitt County Memorial Hospital, Series 1998A, 4.750%,
12/01/28 - MBIA Insured
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AA- 7,746,750
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,847,480
Doing Business as Carolinas HealthCare System, Health Care
Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47
------------------------------------------------------------------------------------------------------------------------------------
15,165 Total North Carolina 14,550,322
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.6% (3.5% OF TOTAL INVESTMENTS)
10,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 9,593,600
Series 2008, 5.250%, 2/15/43
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
170 5.125%, 6/01/24 6/17 at 100.00 BBB 133,974
1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,220,904
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,101,611
2,400 6.000%, 6/01/42 6/17 at 100.00 BBB 1,397,784
5,730 5.875%, 6/01/47 6/17 at 100.00 BBB 3,218,942
Cincinnati City School District, Hamilton County, Ohio,
General Obligation Bonds, Series 2002:
2,165 5.250%, 6/01/19 - FSA Insured 12/12 at 100.00 AAA 2,285,071
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,716,402
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,063,760
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,321,900
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA
Insured (UB)
Nuveen Investments 47
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 9,850 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 101.00 N/R $ 7,847,101
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
48,455 Total Ohio 40,901,049
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.8% (2.4% OF TOTAL INVESTMENTS)
1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,642,924
Bonds, Integris Baptist Medical Center, Series 2008B,
5.250%, 8/15/38
6,040 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A 5,124,578
John Health System, Series 2007, 5.000%, 2/15/42
2,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 AA- 1,689,420
Revenue Bonds, Series 2007, 4.500%,1/01/47 - FGIC Insured
17,510 Pottawatomie County Home Finance Authority, Oklahoma, Single No Opt. Call AAA 19,130,200
Family Mortgage Revenue Bonds, Series 1991A, 8.625%,
7/01/10 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
27,225 Total Oklahoma 27,587,122
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Deschutes County School District 1, Bend-La Pine, Oregon, 6/11 at 100.00 Aa2 (4) 3,281,370
General Obligation Bonds, Series 2001A, 5.500%, 6/15/18
(Pre-refunded 6/15/11) - FSA Insured
270 Oregon Housing and Community Services Department, Single 1/14 at 100.00 Aa2 269,946
Family Mortgage Revenue Bonds, Series 2004H, 5.125%, 1/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,270 Total Oregon 3,551,316
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.6% (2.3% OF TOTAL INVESTMENTS)
220 Allentown, Pennsylvania, General Obligation Bonds, Series 10/13 at 100.00 Baa1 235,382
2003, 5.500%, 10/01/19 - FGIC Insured
1,450 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,455,336
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,297,920
Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31
(Alternative Minimum Tax) (UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 Aa3 2,658,734
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 7,714,824
Ordinance, Series 2002, 5.000%, 8/01/32 - FSA Insured (UB)
Philadelphia School District, Pennsylvania, General Obligation
Bonds, Series 2002B:
6,000 5.625%, 8/01/19 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,806,280
5,500 5.625%, 8/01/20 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,239,090
------------------------------------------------------------------------------------------------------------------------------------
25,070 Total Pennsylvania 26,407,566
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 4.4% (2.7% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 2,411,225
Senior Lien Series 2008A, 6.000%, 7/01/44
5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 430,150
Revenue Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured
5,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.000%, 8/12 at 100.00 AAA 4,940,650
8/01/27 - FSA Insured
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 1,406,340
Facilities Revenue Refunding Bonds, Series 2002D, 5.125%,
7/01/20
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue
Bonds, Series 2007A:
50,000 0.000%, 8/01/47 - AMBAC Insured No Opt. Call AA- 3,564,000
55,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call AA- 2,156,550
15,000 5.250%, 8/01/57 8/17 at 100.00 A+ 12,643,200
1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,326,465
Series 2001A, 5.500%, 7/01/29
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO (continued)
$ 3,490 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,805,855
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
138,990 Total Puerto Rico 31,684,435
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.4% (0.2% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed Bonds, Series 2002A:
2,200 6.125%, 6/01/32 6/12 at 100.00 BBB 1,620,916
1,655 6.250%, 6/01/42 6/12 at 100.00 BBB 1,222,135
------------------------------------------------------------------------------------------------------------------------------------
3,855 Total Rhode Island 2,843,051
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.7% (5.4% OF TOTAL INVESTMENTS)
24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA (4) 28,611,275
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
(Pre-refunded 12/01/12)
Horry County School District, South Carolina, General
Obligation Bonds, Series 2001A:
5,840 5.000%, 3/01/20 3/12 at 100.00 Aa1 6,117,750
5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,384,458
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
5,240 5.250%, 8/15/20 - MBIA Insured 8/14 at 100.00 AA- 5,383,890
3,000 5.250%, 2/15/24 - MBIA Insured 8/14 at 100.00 AA- 3,027,330
13,615 South Carolina Transportation Infrastructure Bank, Junior Lien 10/11 at 100.00 N/R (4) 14,924,899
Revenue Bonds, Series 2001B, 5.125%, 10/01/21 (Pre-refunded
10/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
57,560 Total South Carolina 63,449,602
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 3,049,560
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.6% (10.3% OF TOTAL INVESTMENTS)
535 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 AAA 582,016
Combined Fee Revenue Refunding Bonds, Series 2001, 5.375%,
11/01/16 - FSA Insured
465 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 Aa3 (4) 513,881
Combined Fee Revenue Refunding Bonds, Series 2001, 5.375%,
11/01/16 (Pre-refunded 11/01/11) - FSA Insured
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 6,650,467
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
5,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AA- 4,040,795
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AA- 5,019,400
Refunding and Improvement Bonds, Series 2001A, 5.625%,
11/01/21 - FGIC Insured (Alternative Minimum Tax)
2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AA- 2,254,176
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - MBIA Insured
14,975 Harris County-Houston Sports Authority, Texas, Third Lien 11/24 at 55.69 AA- 2,085,119
Revenue Bonds, Series 2004-A3., 0.000%, 11/15/34 - MBIA
Insured
22,500 Houston, Texas, Junior Lien Water and Sewerage System Revenue 12/10 at 100.00 AA (4) 24,070,274
Refunding Bonds, Series 2000B, 5.250%, 12/01/30
(Pre-refunded 12/01/10) - FGIC Insured
4,590 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,427,376
Series 2000A, 5.625%, 7/01/30 - FSA Insured (Alternative
Minimum Tax)
6,000 Leander Independent School District, Williamson and Travis 8/14 at 33.33 AAA 1,416,840
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/34
Nuveen Investments 49
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 17,655 Matagorda County Navigation District 1, Texas, Revenue 5/09 at 102.00 AA- $ 14,399,771
Refunding Bonds, Houston Industries Inc., Series 1998B,
5.150%, 11/01/29 - MBIA Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, 5/09 at 100.00 BBB 7,623,302
Revenue Refunding Bonds, Union Pacific Corporation, Series
1992, 5.350%, 11/01/10
2,000 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 A3 1,857,300
Revenue Refunding Bonds, Series 2002A, 5.750%, 10/01/21 -
RAAI Insured
14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 14,910,476
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded 8/15/09)
11,300 San Antonio, Texas, Electric and Gas System Revenue Refunding No Opt. Call AAA 12,501,416
Bonds, New Series 1992, 5.000%, 2/01/17 (ETM)
3,750 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,021,725
Texas, Limited Tax Schoolhouse and Refunding Bonds, Series
2001, 5.125%, 2/01/23 (Pre-refunded 2/01/11)
4,375 Tarrant County Cultural and Educational Facilities Financing 11/17 at 100.00 AA- 3,464,956
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2008, Trust 1197, 8.958%, 11/15/47 (IF)
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/38 8/15 at 30.30 AAA 1,655,105
9,110 0.000%, 8/15/39 8/15 at 28.63 AAA 1,563,823
6,610 0.000%, 8/15/42 8/15 at 24.42 AAA 950,782
7,110 0.000%, 8/15/43 8/15 at 23.12 AAA 962,267
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AA- (4) 5,438,250
Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/22
(Pre-refunded 8/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
171,870 Total Texas 120,409,517
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.8% (1.1% OF TOTAL INVESTMENTS)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue Refunding 8/09 at 100.00 BBB 5,803,712
Bonds, Laidlaw/ECDC Project, Guaranteed by Allied Waste
Industries, Series 1995, 7.500%, 2/01/10 (Alternative
Minimum Tax)
7,155 Utah Associated Municipal Power Systems, Revenue Bonds, Payson 4/13 at 100.00 AAA 7,190,060
Power Project, Series 2003A, 5.000%, 4/01/25 - FSA Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
12,955 Total Utah 12,993,772
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.3% (1.4% OF TOTAL INVESTMENTS)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100.00 AA- 3,467,960
Bonds, Series 2001B, 5.125%, 7/01/31 - FGIC Insured
(Alternative Minimum Tax)
11,040 Suffolk Redevelopment and Housing Authority, Virginia, FNMA No Opt. Call Aaa 11,605,248
Multifamily Housing Revenue Refunding Bonds, Windsor at
Potomac Vista L.P. Project, Series 2001, 4.850%,
7/01/31 (Mandatory put 7/01/11)
665 Virginia Housing Development Authority, Rental Housing Bonds, 5/09 at 101.00 AA+ 671,976
Series 1999F, 5.000%, 5/01/15 (Alternative Minimum Tax)
Virginia Resources Authority, Water System Revenue Refunding
Bonds, Series 2002:
500 5.000%, 4/01/18 4/12 at 102.00 AA 533,560
500 5.000%, 4/01/19 4/12 at 102.00 AA 533,430
------------------------------------------------------------------------------------------------------------------------------------
16,705 Total Virginia 16,812,174
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.5% (6.6% OF TOTAL INVESTMENTS)
6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,101,540
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 5.350%, 7/01/18 - FSA Insured
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,737,200
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AA- 6,958,062
5.625%, 2/01/24 - MBIA Insured (Alternative Minimum Tax)
(UB)
13,400 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 Aa3 13,826,790
Series 2000, 5.400%, 12/01/25
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AA $ 4,300,750
Bonds, Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured (UB)
7,575 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 7,302,452
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
18,145 Washington, General Obligation Bonds, Series 2001-02A, 7/11 at 100.00 AAA 18,804,208
5.000%, 7/01/23 - FSA Insured
Washington, Motor Vehicle Fuel Tax General Obligation Bonds,
Series 2002C:
7,000 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 7,281,400
7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,222,362
------------------------------------------------------------------------------------------------------------------------------------
75,280 Total Washington 76,534,764
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1% (1.3% OF TOTAL INVESTMENTS)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
170 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 182,395
3,380 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,800,337
7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/09 at 101.00 A2 7,738,831
Bonds, Dairyland Power Cooperative, Series 1997A, 5.450%,
9/01/14 - AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 2,484,720
Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.750%,
5/01/29
2,100 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 1,285,914
Revenue Bonds, Wheaton Franciscan Services Inc., Series
2003A, 5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
16,195 Total Wisconsin 15,492,197
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
4,000 Wyoming Municipal Power Agency Power Supply System Revenue 1/18 at 100.00 A2 3,865,401
Bonds, 2008 Series A, 5.375%, 1/01/42
------------------------------------------------------------------------------------------------------------------------------------
$ 1,553,780 Total Investments (cost $1,179,693,451) - 160.5% 1,165,267,239
==============----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.4)% (53,875,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 18,326,089
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.6)% (5) (403,600,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 726,118,328
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 34.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 51
NPF | Nuveen Premier Municipal Income Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.7% (1.0% OF TOTAL INVESTMENTS)
$ 2,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 1,936,160
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
(UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 2005A:
1,200 5.250%, 11/15/20 11/15 at 100.00 Baa1 927,372
400 5.000%, 11/15/30 11/15 at 100.00 Baa1 256,340
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,164,420
Alabama, Revenue Bonds, Baptist Medical Center, Series
2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
4,600 Total Alabama 4,284,292
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,000 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 101.00 AAA 2,015,880
Bonds, Series 1999A, 6.000%,6/01/49 - MBIA Insured
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 523,660
Settlement Asset-Backed Bonds, Series 2006A, 5.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alaska 2,539,540
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 8.1% (5.0% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
100 5.250%, 12/01/24 12/15 at 100.00 BBB 88,127
135 5.250%, 12/01/25 12/15 at 100.00 BBB 118,141
7,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 5,540,360
Plaza, Series 2005B, 0.000%, 7/01/39 - FGIC Insured
7,500 Salt River Project Agricultural Improvement and Power 1/13 at 100.00 AA 7,722,225
District, Arizona, Electric System Revenue Bonds, Series
2002B, 5.000%, 1/01/25 (UB)
6,000 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 6,551,280
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.250%, 1/01/15
1,200 Salt Verde Financial Corporation, Arizona, Senior Gas No Opt. Call A 813,468
Revenue Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
21,935 Total Arizona 20,833,601
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.5% OF TOTAL INVESTMENTS)
2,155 Arkansas Development Finance Authority, State Facility 11/15 at 100.00 AAA 2,236,308
Revenue Bonds, Department of Correction Special Needs
Unit Project, Series 2005B, 5.000%, 11/01/25 - FSA Insured
6 Stuttgart Public Facilities Board, Arkansas, Single Family 9/09 at 100.00 Aaa 5,622
Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%,
9/01/11
------------------------------------------------------------------------------------------------------------------------------------
2,161 Total Arkansas 2,241,930
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.9% (12.9% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 AA- 7,898,199
Improvement Project Lease Bonds, Series 2007A-1, 4.375%,
3/01/37 - FGIC Insured
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 Aa2 5,861,610
Revenue Bonds, Series 2002A, 5.300%,12/01/21 - AMBAC
Insured
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,350 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ $ 1,329,764
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,975 California Health Facilities Financing Authority, Revenue No Opt. Call A 1,977,548
Bonds, Catholic Healthcare West, Series 2004I, 4.950%,
7/01/26 (Mandatory put 7/01/14)
500 California Statewide Community Development Authority, 7/15 at 100.00 BBB 314,470
Revenue Bonds, Daughters of Charity Health System, Series
2005A, 5.000%, 7/01/39
1,600 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,442,624
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,025 California Statewide Community Development Authority, 5/18 at 100.00 Aa3 935,436
Revenue Bonds, Sutter Health, Tender Option Bond Trust
3175, 13.216%, 11/15/48 (IF)
4,900 California, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 A 4,942,042
6/01/23 - AMBAC Insured
1,000 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,012,910
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
25,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 19,641,747
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17
(ETM)
3,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,804,985
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
450 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 526,721
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
6,005 Los Angeles Unified School District, California, General 7/15 at 100.00 AA- 6,217,157
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC
Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
100 5.000%, 9/01/21 9/15 at 102.00 Baa3 81,776
110 5.000%, 9/01/23 9/15 at 102.00 Baa3 86,655
------------------------------------------------------------------------------------------------------------------------------------
63,205 Total California 54,073,644
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.5% (4.6% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 785,960
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/29
1,150 Colorado Health Facilities Authority, Revenue Bonds, 9/14 at 100.00 A3 1,034,529
Parkview Medical Center, Series 2004, 5.000%, 9/01/25
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 338,020
Valley Health Care, Series 2005F, 5.000%, 3/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 12/09 at 101.00 Aa3 (4) 1,040,140
Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23
(Pre-refunded 12/01/09) - FSA Insured
750 Colorado Health Facilities Authority, Revenue Bonds, Vail 1/15 at 100.00 BBB+ 726,180
Valley Medical Center, Series 2004, 5.000%, 1/15/17
Denver City and County, Colorado, Airport Revenue Bonds,
Series 2006:
4,170 5.000%, 11/15/23 - FGIC Insured 11/16 at 100.00 AA- 4,245,936
6,800 5.000%, 11/15/24 - FGIC Insured 11/16 at 100.00 AA- 6,958,508
Denver, Colorado, Airport Revenue Bonds, Trust 2365:
1,725 12.496%, 11/15/23 - FGIC Insured (IF) 11/16 at 100.00 A+ 1,850,684
2,235 12.488%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 A+ 2,369,502
------------------------------------------------------------------------------------------------------------------------------------
19,230 Total Colorado 19,349,459
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,020 Connecticut Development Authority, Pollution Control Revenue 10/09 at 101.50 Baa1 2,002,507
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7% (1.0% OF TOTAL INVESTMENTS)
$ 1,700 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R $ 877,948
Florida, Exempt Facilities Remarketed Revenue Bonds,
National Gypsum Company, Apollo Beach Project, Series
2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
2,500 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 2,527,225
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
1,000 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 875,980
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
------------------------------------------------------------------------------------------------------------------------------------
5,200 Total Florida 4,281,153
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.6% (2.9% OF TOTAL INVESTMENTS)
8,050 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AA- 7,640,336
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - MBIA Insured (Alternative
Minimum Tax)
4,105 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AA- 4,342,105
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
12,155 Total Georgia 11,982,441
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose 7/09 at 101.00 A 2,196,563
Revenue Bonds, Hawaiian Electric Company Inc., Series
1999D, 6.150%, 1/01/20 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
75 Idaho Housing and Finance Association, Single Family Mortgage 7/09 at 100.00 Aa1 75,107
Bonds, Series 1996E, 6.350%, 7/01/14 (Alternative Minimum
Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
500 5.250%, 9/01/26 9/16 at 100.00 BBB- 375,615
200 5.250%, 9/01/37 9/16 at 100.00 BBB- 135,888
------------------------------------------------------------------------------------------------------------------------------------
775 Total Idaho 586,610
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.2% (6.9% OF TOTAL INVESTMENTS)
580 Chicago Public Building Commission, Illinois, General No Opt. Call AA- (4) 669,987
Obligation Lease Certificates, Chicago Board of Education,
Series 1990B, 7.000%, 1/01/15 - MBIA Insured (ETM)
8,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 4,237,636
Series 1999, 0.000%, 1/01/24 - FGIC Insured
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series No Opt. Call A1 8,909,019
2001, 5.750%, 11/01/30 - AMBAC Insured
200 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 149,566
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,106,370
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 1,625,100
Series 2002, 5.500%, 2/01/17 - FGIC Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
850 5.250%, 1/01/25 1/16 at 100.00 AA 838,338
1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,745,485
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project, Series
1996A:
10,575 0.000%, 12/15/23 - MBIA Insured No Opt. Call AA- 4,900,455
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AA- 4,615,687
------------------------------------------------------------------------------------------------------------------------------------
44,400 Total Illinois 28,797,643
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.9% (1.8% OF TOTAL INVESTMENTS)
$ 2,275 Anderson School Building Corporation, Madison County, 1/14 at 100.00 AAA $ 2,643,254
Indiana, First Mortgage Bonds, Series 2003, 5.500%, 7/15/23
(Pre-refunded 1/15/14) - FSA Insured
6,180 Crown Point Multi-School Building Corporation, Indiana, First No Opt. Call AA- 3,016,520
Mortgage Bonds, Crown Point Community School Corporation,
Series 2000, 0.000%, 1/15/23 - MBIA Insured
1,250 Portage, Indiana, Revenue Bonds, Series 2006, 5.000%, 7/15/23 7/16 at 100.00 BBB+ 1,060,113
1,000 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB- 734,070
Madison Center Inc., Series 2005, 5.250%, 2/15/28
------------------------------------------------------------------------------------------------------------------------------------
10,705 Total Indiana 7,453,957
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9% (0.5% OF TOTAL INVESTMENTS)
4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 2,245,480
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 406,434
Kentucky, Industrial Building Revenue Bonds, Sisters of
Mercy of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.1% (3.8% OF TOTAL INVESTMENTS)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized 9/09 at 100.00 AAA 1,310,983
Mortgage Revenue Bonds, St. Dominic Assisted Care
Facility, Series 1995, 6.850%, 9/01/25
1,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 1,120,740
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006A:
825 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 794,384
8,880 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 7,945,292
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 2,895
Residuals 660-3, 14.711%, 5/01/41 - FGIC Insured (IF)
3,950 Morehouse Parish, Louisiana, Pollution Control Revenue Bonds, No Opt. Call BBB 3,605,718
International Paper Company, Series 2002A, 5.700%, 4/01/14
1,400 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 984,970
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
17,870 Total Louisiana 15,764,982
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,930 Maine State Housing Authority, Single Family Mortgage 5/13 at 100.00 AA+ 2,933,340
Purchase Bonds, Series 2004A-2, 5.000%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3% (0.8% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 2,002,100
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,550 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AA- 1,345,741
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,550 Total Maryland 3,347,841
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 828,670
Hampshire College, Series 2004, 5.625%, 10/01/24
3,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 A (4) 3,393,150
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Massachusetts 4,221,820
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 55
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.0% (2.4% OF TOTAL INVESTMENTS)
$ 2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 Baa3 $ 2,413,681
5.250%, 4/01/17 - SYNCORA GTY Insured
4,600 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AA- 3,628,434
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 936,960
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
170 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 99,839
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 AA- 3,137,802
Detroit Metropolitan Airport, Series 2002C, 5.375%,
12/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,720 Total Michigan 10,216,716
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.8% (2.9% OF TOTAL INVESTMENTS)
4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 4,123,670
Inc., Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- (4) 1,152,610
Facilities Revenue Bonds, Benedictine Health System - St.
Mary's Duluth Clinic, Series 2004, 5.250%,
2/15/21 (Pre-refunded 2/15/14)
2,290 Minneapolis-St. Paul Housing and Redevelopment Authority, 12/13 at 100.00 Baa1 2,259,818
Minnesota, Revenue Bonds, HealthPartners Inc., Series
2003, 6.000%, 12/01/20
530 Minnesota Higher Education Facilities Authority, Revenue 10/14 at 100.00 A2 552,583
Bonds, University of St. Thomas, Series 2004-5Y, 5.250%,
10/01/19
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,053,110
Series 2004A, 5.250%, 10/01/19
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,195,300
Office Building at Cedar Street, Series 2003, 5.250%,
12/01/20
------------------------------------------------------------------------------------------------------------------------------------
12,170 Total Minnesota 12,337,091
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,325 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,314,979
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.6% OF TOTAL INVESTMENTS)
100 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 89,069
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
2,880 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 2,519,251
Facilities Revenue Bonds, Freeman Health System, Series
2004, 5.500%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Missouri 2,608,320
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.5% (1.5% OF TOTAL INVESTMENTS)
1,580 Douglas County Hospital Authority 2, Nebraska, Health No Opt. Call Aa3 1,612,279
Facilities Revenue Bonds, Nebraska Medical Center, Series
2003, 5.000%, 11/15/16
1,440 Grand Island, Nebraska, Electric System Revenue Bonds, Series 6/09 at 100.00 A1 (4) 1,557,274
1977, 6.100%, 9/01/12 (ETM)
2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call Aa2 2,469,263
Loan Program, Series 1993A-5B, 6.250%, 6/01/18 - MBIA
Insured (Alternative Minimum Tax)
515 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 739,633
System Revenue Bonds, Nebraska City 2, Series 2006A,
17.921%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
5,885 Total Nebraska 6,378,449
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.0% (1.2% OF TOTAL INVESTMENTS)
5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily 7/10 at 101.00 Aaa 5,090,250
Housing Remarketed Revenue Bonds, Countryside LP, Series
1994, 6.100%, 7/01/24 (Alternative Minimum Tax)
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE (continued)
$ 90 New Hampshire Municipal Bond Bank, Revenue Bonds, Coe-Brown No Opt. Call N/R $ 89,994
Northwood Academy, Series 1994, 7.250%, 5/01/09
------------------------------------------------------------------------------------------------------------------------------------
5,090 Total New Hampshire 5,180,244
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.9% (3.6% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AA- 1,031,980
Construction Bonds, Series 2005P, 5.250%, 9/01/24
3,000 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 3,474,150
Transportation System Bonds, Series 2003C, 5.500%, 6/15/24
(Pre-refunded 6/15/13)
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 4,843,750
10,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 1,807,100
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 1,557,000
5.000%, 1/01/19 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,602,375
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
43,000 Total New Jersey 15,316,355
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 20.2% (12.4% OF TOTAL INVESTMENTS)
10,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/10 at 101.00 AAA 10,620,499
State University Educational Facilities Revenue Bonds,
1999 Resolution, Series 2000B, 5.500%, 5/15/30
(Pre-refunded 5/15/10) - FSA Insured
1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,608,045
Appropriation Lease Bonds, Upstate Community Colleges,
Series 2004B, 5.250%, 7/01/19
2,200 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA- 1,678,446
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured
7,500 Long Island Power Authority, New York, Electric System 6/16 at 100.00 AAA 7,869,300
Revenue Bonds, Residual Series 2006A, 5.000%, 12/01/25 -
FGIC Insured (UB)
5,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AA- 5,084,800
Transportation Revenue Refunding Bonds, Series 2002A,
5.125%, 11/15/21 - FGIC Insured
2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,083,400
Water and Sewerage System Revenue Bonds, Fiscal Series
2005B, 5.000%, 6/15/23 - AMBAC Insured
4,265 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 4,376,914
Series 2003D, 5.250%,10/15/22 (UB)
1,200 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA 1,313,340
Series 2004B, 5.250%, 8/01/15
1,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 1,177,900
2008, Trust 3217, 18.095%, 8/15/20 (IF)
910 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AAA 932,113
Revenue Bonds, Trust 2364, 14.755%, 11/15/44 - AMBAC
Insured (IF)
3,250 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 3,330,535
Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
6,460 5.000%, 1/01/25 - FSA Insured (UB) 7/15 at 100.00 AAA 6,607,482
2,580 5.000%, 1/01/26 - FSA Insured (UB) 7/15 at 100.00 AAA 2,622,260
1,850 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 1,912,234
Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/24 -
FSA Insured (UB)
1,000 New York State Urban Development Corporation, Subordinate 7/14 at 100.00 A 1,027,550
Lien Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
50,715 Total New York 52,244,818
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.2% (2.6% OF TOTAL INVESTMENTS)
10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AA 10,754,950
Revenue Refunding Bonds, Series 1993B, 6.000%, 1/01/22 -
CAPMAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 57
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.5% (1.6% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 105 5.125%, 6/01/24 6/17 at 100.00 BBB $ 82,748
1,050 5.875%, 6/01/30 6/17 at 100.00 BBB 712,194
1,055 5.750%, 6/01/34 6/17 at 100.00 BBB 667,931
2,355 5.875%, 6/01/47 6/17 at 100.00 BBB 1,322,968
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB 3,575,440
Series 2004, 4.250%, 4/01/33 (Mandatory put 4/01/14)
(Alternative Minimum Tax)
250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 220,530
Economic Development Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
8,815 Total Ohio 6,581,811
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.2% (0.7% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 346,090
450 5.375%, 9/01/36 9/16 at 100.00 BBB- 295,227
2,725 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 2,336,660
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
44 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 32,587
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.325%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
3,719 Total Oklahoma 3,010,564
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.2% (0.8% OF TOTAL INVESTMENTS)
Oregon, General Obligation Bonds, State Board of Higher
Education, Series 2004A:
1,795 5.000%, 8/01/21 8/14 at 100.00 AA 1,925,120
1,240 5.000%, 8/01/23 8/14 at 100.00 AA 1,307,940
------------------------------------------------------------------------------------------------------------------------------------
3,035 Total Oregon 3,233,060
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AA- 2,034,700
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.7% (1.6% OF TOTAL INVESTMENTS)
7,430 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 6,858,187
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.0% (4.9% OF TOTAL INVESTMENTS)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,547,775
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 4,535,696
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
835 Greenville County School District, South Carolina, 12/13 at 100.00 AA 985,183
Installment Purchase Revenue Bonds, Series 2008, Trust
3219, 17.927%, 12/01/19 (IF)
3,620 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AA- 3,671,694
Refunding Bonds, Series 2003A, 5.250%, 5/01/21 - AMBAC
Insured
310 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 354,404
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
1,190 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 1,075,248
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
$ 4,895 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) $ 5,735,814
605 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 702,236
1,025 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 1,076,096
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
19,385 Total South Carolina 20,684,146
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,716,803
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.8% OF TOTAL INVESTMENTS)
2,060 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 AA- (4) 2,082,330
Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center, Series 1998C, 5.125%,
7/01/25 (Pre-refunded 7/01/23) - MBIA Insured
1,600 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 1,255,312
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
400 Sumner County Health, Educational, and Housing Facilities 11/17 at 100.00 N/R 203,164
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007, 5.500%, 11/01/37
------------------------------------------------------------------------------------------------------------------------------------
4,060 Total Tennessee 3,540,806
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.4% (4.6% OF TOTAL INVESTMENTS)
1,075 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 CCC 432,182
Bonds, TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
3,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 3,071,880
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005:
400 5.250%, 8/15/21 No Opt. Call BBB- 365,036
600 5.125%, 8/15/26 No Opt. Call BBB- 497,052
2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 2,238,364
Refunding Bonds, Transmission Services Corporation, Series
2003C, 5.250%, 5/15/25 - AMBAC Insured
290 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 296,206
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
1,710 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 1,843,927
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
(Pre-refunded 2/15/11)
950 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 897,779
Refunding Bonds, Series 2008, 5.750%, 1/01/38
1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 382,700
Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,000 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 2,810,850
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
230 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 198,531
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 9.642%, 2/15/36 (IF)
Texas Tech University, Financing System Revenue Bonds, 9th
Series 2003:
3,525 5.250%, 2/15/18 - AMBAC Insured 8/13 at 100.00 AA 3,773,019
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AA 2,390,580
------------------------------------------------------------------------------------------------------------------------------------
20,295 Total Texas 19,198,106
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 330 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aaa $ 332,383
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
25 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100.00 Aaa 25,038
Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
70 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100.00 Aaa 71,983
Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
425 Total Utah 429,404
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.1% (4.4% OF TOTAL INVESTMENTS)
2,000 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,189,760
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
7,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 7,646,310
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB)
3,160 King County Public Hospital District 2, Washington, Limited 6/11 at 101.00 AA- 3,195,676
Tax General Obligation Bonds, Evergreen Hospital Medical
Center, Series 2001A, 5.250%, 12/01/24 - AMBAC Insured
1,000 Skagit County Public Hospital District 1, Washington, Revenue No Opt. Call Baa2 878,720
Bonds, Skagit Valley Hospital, Series 2003, 6.000%,
12/01/23
4,280 Washington, General Obligation Refunding Bonds, Series 1992A No Opt. Call AA+ 4,481,545
and 1992AT-6, 6.250%, 2/01/11
------------------------------------------------------------------------------------------------------------------------------------
17,440 Total Washington 18,392,011
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,000 West Virginia Water Development Authority, Infrastructure 10/13 at 101.00 AAA 2,353,440
Revenue Bonds, Series 2003A, 5.500%, 10/01/23 (Pre-refunded
10/01/13) - AMBAC Insured
2,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 A 2,221,488
Revenue Bonds, Series 2003B, 5.250%, 11/01/23 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
4,150 Total West Virginia 4,574,928
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.5% (4.0% OF TOTAL INVESTMENTS)
5,670 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 5,504,266
Revenue Bonds, Agnesian Healthcare Inc., Series 2001,
6.000%, 7/01/30
160 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 112,053
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 938,480
Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.375%,
5/01/18
205 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- 204,086
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30
2,145 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- (4) 2,377,926
Revenue Bonds, Froedtert and Community Health Obligated
Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded
10/01/11)
5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 BBB+ 5,046,450
Revenue Bonds, Marshfield Clinic, Series 1999, 6.250%,
2/15/18 - RAAI Insured
2,500 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 2,548,775
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
16,680 Total Wisconsin 16,732,036
------------------------------------------------------------------------------------------------------------------------------------
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.2% OF TOTAL INVESTMENTS)
$ 1,350 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB $ 1,007,789
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 479,215 Total Long-Term Investments (cost $419,284,174) - 160.9% 414,889,510
==============----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.0% (1.3% OF TOTAL INVESTMENTS)
TEXAS - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,300 Red River Authority, Texas, Pollution Control Revenue Bonds, 5/09 at 100.00 A-1+ 1,300,000
Southwestern Public Service Company, Variable Rate Demand
Obligations, Series 1996, 8.500%, 7/01/16 - AMBAC Insured
(5)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,000 Virginia Resources Authority, Clean Water State Revolving 10/18 at 100.00 A-1 1,000,000
Fund Revenue Bonds, Variable Rate Demand Obligations,
Series 2008, Trust 2917, 0.650%, 10/01/28 (5)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,970 King County, Washington, Sewer Revenue Bonds, Variable Rate 1/12 at 100.00 A-1 2,969,500
Demand Obligations, Series 2001, Trust 554, 0.630%,
1/01/19 - FGIC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 5,270 Total Short-Term Investments (cost $5,269,500) 5,269,500
==============----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $424,553,674) - 162.9% 420,159,010
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (16.7)% (42,995,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 7,555,236
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (6) (126,850,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 257,869,246
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trusted reflected as a
financing transaction pursuant to the provisions of SFAS No. 140. See
Notes to Financial Statements, Footnote 1 - Inverse Floating Rate
Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 61
NMZ | Nuveen Municipal High Income Opportunity Fund
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL - 2.8% (2.0% OF TOTAL INVESTMENTS)
Charter Mac Equity Issuer Trust, Preferred Shares, Series
2004A-4:
$ 5,000 6.000%, 12/31/45 (Mandatory put 4/30/19) (Alternative 4/19 at 100.00 Aaa $ 5,150,000
Minimum Tax)
1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) (Alternative 4/15 at 100.00 Aaa 1,021,550
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total National 6,171,550
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,000 Bessemer, Alabama, General Obligation Warrants, Series 2007, 2/17 at 102.00 N/R 1,333,660
6.500%, 2/01/37
2,000 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa1 1,281,700
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A, 5.000%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Alabama 2,615,360
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
450 Alaska Municipal Bond Bank Authority, Revenue Bonds, Series 9/18 at 100.00 A+ 465,314
2009, 5.625%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.9% (4.1% OF TOTAL INVESTMENTS)
462 Estrella Mountain Ranch Community Facilities District, 7/10 at 102.00 N/R 409,780
Goodyear, Arizona, Special Assessment Lien Bonds, Series
2001A, 7.875%, 7/01/25
2,000 Maricopa County Industrial Development Authority, Arizona, 5/09 at 100.00 N/R 1,933,520
Multifamily Housing Revenue Bonds, Privado Park Apartments
Project, Series 2006A, 5.250%, 11/01/41 (Mandatory put
11/01/11) (Alternative Minimum Tax)
6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 CC 4,621,277
Senior Living Facility Revenue Bonds, Christian Care Mesa
II Inc., Series 2004A, 6.625%, 1/01/34 (Alternative
Minimum Tax)
Phoenix Industrial Development Authority, Arizona,
Educational Revenue Bonds, Keystone Montessori School,
Series 2004A:
235 6.375%, 11/01/13 11/11 at 103.00 N/R 226,392
790 7.250%, 11/01/23 11/11 at 103.00 N/R 684,962
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,409,730
990 Pima County Industrial Development Authority, Arizona, 7/16 at 100.00 N/R 640,847
Charter School Revenue Bonds, Franklin Phonetic Charter
School, Series 2006, 5.750%, 7/01/36
550 Pima County Industrial Development Authority, Arizona, 12/14 at 100.00 BBB- 401,792
Charter School Revenue Bonds, Noah Webster Basic Schools
Inc., Series 2004, 6.125%, 12/15/34
500 Pima County Industrial Development Authority, Arizona, No Opt. Call AAA 607,280
Charter School Revenue Bonds, Pointe Educational Services
Charter School, Series 2004, 6.250%, 7/01/14 (ETM)
1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 BBB- 961,630
Correctional Facilities Contract Revenue Bonds, Florence
West Prison LLC, Series 2002A, 5.250%, 10/01/22 - ACA
Insured
1,000 Tucson Industrial Development Authority, Arizona, Charter 9/14 at 100.00 BBB- 792,060
School Revenue Bonds, Arizona Agribusiness and Equine
Center Charter School, Series 2004A, 5.850%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
16,112 Total Arizona 12,689,270
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.3% (7.8% OF TOTAL INVESTMENTS)
1,810 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 1,048,153
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 5.125%, 6/01/38
815 California Health Facilities Financing Authority, Hospital 5/09 at 100.00 CCC 627,371
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,180 California Health Facilities Financing Authority, Revenue 5/18 at 100.00 Aa3 $ 1,053,008
Bonds, Sutter Health, Series 2007A, Trust 3299, 15.324%,
11/15/48 (IF)
3,425 California Health Facilities Financing Authority, Revenue 5/18 at 100.00 Aa3 3,225,186
Bonds, Sutter Health, Series 2008, Trust 3175, 13.360%,
11/15/38 (IF)
2,515 California Health Facilities Financing Authority, Revenue 8/18 at 100.00 Aa3 2,413,595
Bonds, Sutter Health, Tender Option Bond Trust 3229,
17.438%, 8/15/38 (IF)
4,000 California Statewide Communities Development Authority, No Opt. Call BB 2,512,200
Revenue Bonds, EnerTech Regional Biosolids Project,
Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
2,925 California Statewide Community Development Authority, 3/14 at 102.00 N/R 2,350,179
Revenue Bonds, Epidaurus Project, Series 2004A, 7.750%,
3/01/34
1,005 California Statewide Community Development Authority, 1/14 at 100.00 N/R 815,186
Subordinate Lien Multifamily Housing Revenue Bonds,
Corona Park Apartments, Series 2004I-S, 7.750%, 1/01/34
(Alternative Minimum Tax)
1,015 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 768,223
Subordinate Lien Revenue Bonds, El Granada Mobile Home
Park, Series 2004B, 6.500%, 5/15/44
1,200 Lake Elsinore, California, Special Tax Bonds, Community 9/13 at 102.00 N/R 899,844
Facilities District 2003-2 Improvement Area A, Canyon
Hills, Series 2004A, 5.950%, 9/01/34
3,400 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 2,549,558
Special Tax Bonds, Community Facilities District 3,
Series 2004, 5.950%, 9/01/34
2,950 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 2,236,602
California, Sublease Revenue Bonds, Los Angeles
International Airport, American Airlines Inc. Terminal 4
Project, Series 2002C, 7.500%, 12/01/24 (Alternative
Minimum Tax)
800 Moreno Valley Unified School District, Riverside County, 9/14 at 100.00 N/R 598,088
California, Special Tax Bonds, Community Facilities
District, Series 2004, 5.550%, 9/01/29
1,250 San Diego County, California, Certificates of Participation, 9/12 at 100.00 Baa1 915,138
San Diego-Imperial Counties Developmental Services
Foundation Project, Series 2002, 5.500%, 9/01/27
3,895 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 2,366,018
Bonds, Community Facilities District 2001-1, Series
2004A, 6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
32,185 Total California 24,378,349
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.1% (4.9% OF TOTAL INVESTMENTS)
915 Bradburn Metropolitan District 3, Colorado, General 12/13 at 101.00 N/R 693,982
Obligation Bonds, Series 2003, 7.500%, 12/01/33
6 Buffalo Ridge Metropolitan District, Colorado, Limited 12/13 at 101.00 N/R 4,189
Obligation Assessment Bonds, Series 2003, 7.500%, 12/01/33
400 Colorado Educational and Cultural Facilities Authority, 12/10 at 101.00 BBB (4) 437,820
Charter School Revenue Bonds, Academy
Charter School - Douglas County School District Re. 1,
Series 2000, 6.875%, 12/15/20 (Pre-refunded 12/15/10)
650 Colorado Educational and Cultural Facilities Authority, 9/11 at 100.00 Ba1 (4) 739,720
Charter School Revenue Bonds, Bromley East Charter
School, Series 2000A, 7.250%, 9/15/30 (Pre-refunded
9/15/11)
3,500 Colorado Educational and Cultural Facilities Authority, 5/14 at 101.00 N/R 2,712,535
Charter School Revenue Bonds, Denver Arts and Technology
Academy, Series 2003, 8.000%, 5/01/34
455 Colorado Educational and Cultural Facilities Authority, 12/11 at 100.00 AAA 525,648
Charter School Revenue Bonds, Excel Academy Charter
School, Series 2003, 7.300%, 12/01/23 (Pre-refunded
12/01/11)
1,000 Colorado Educational and Cultural Facilities Authority, 2/16 at 101.00 N/R 636,230
Charter School Revenue Bonds, Jefferson County School
District R-1 - Compass Montessori Secondary School,
Series 2006, 5.625%, 2/15/36
Nuveen Investments 63
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Colorado Health Facilities Authority, Colorado, Revenue
Bonds, Catholic Health Initiatives, Series 2006A, Trust
1088:
$ 495 9.360%, 9/01/41 (IF) 9/16 at 100.00 AA $ 430,229
1,900 9.489%, 9/01/41 (IF) 9/16 at 100.00 AA 1,651,385
1,640 Colorado Health Facilities Authority, Colorado, Revenue 4/18 at 100.00 AAA 1,498,648
Bonds, Catholic Health Initiatives, Series 2006C-1, Trust
1090, 10.674%, 10/01/41 - FSA Insured (IF)
3,145 Kit Carson County Health Service District, Colorado, Health No Opt. Call N/R 1,948,548
Care Facility Revenue Bonds, Series 2007, 6.750%, 1/01/34
1,250 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101.00 BBB+ 1,041,263
Revenue Bonds, Hilltop Community Resources Inc. Obligated
Group, Series 2001A, 5.250%, 12/01/21 - RAAI Insured
1,000 Mountain Shadows Metropolitan District, Colorado, General 12/16 at 100.00 N/R 585,820
Obligation Limited Tax Bonds, Series 2007, 5.500%, 12/01/27
1,995 Park Creek Metropolitan District, Colorado, Limited Tax 12/13 at 100.00 N/R 2,015,708
Obligation Revenue Bonds, Series 2003CR-2, 7.875%, 12/01/32
(Mandatory put 12/01/13)
500 Tallyn's Reach Metropolitan District 3, Aurora, Colorado, 12/13 at 100.00 N/R 446,135
Limited Tax General Obligation Bonds, Series 2004, 6.750%,
12/01/33
------------------------------------------------------------------------------------------------------------------------------------
18,851 Total Colorado 15,367,860
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
225 District of Columbia Tobacco Settlement Corporation, Tobacco No Opt. Call BBB 172,512
Settlement Asset-Backed Bonds, Series 2001, 6.500%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 13.8% (9.5% OF TOTAL INVESTMENTS)
1,515 Aberdeen Community Development District, Florida, Special 5/14 at 100.00 N/R 793,875
Assessment Bonds, Series 2005, 5.500%, 5/01/36
7,480 Beacon Lakes Community Development District, Florida, Special 5/13 at 101.00 N/R 5,368,022
Assessment Bonds, Series 2003A, 6.900%, 5/01/35
700 Broward County, Florida, Airport Facility Revenue Bonds, 11/14 at 101.00 Ba2 613,249
Learjet Inc., Series 2000, 7.500%,11/01/20 (Alternative
Minimum Tax)
1,120 Century Gardens Community Development District, Miami-Dade 5/14 at 101.00 N/R 858,066
County, Florida, Special Assessment Revenue Bonds, Series
2004, 5.900%, 5/01/34
8,365 Harmony Community Development District, Florida, Special 5/14 at 103.25 N/R 7,722,150
Assessment Bonds, Series 2001, 7.250%, 5/01/32
415 Islands at Doral Northeast Community Development District, 5/14 at 101.00 N/R 370,462
Miami-Dade County, Florida, Special Assessment Bonds,
Series 2004, 6.125%, 5/01/24
3,000 Jacksonville, Florida, Economic Development Commission Health 9/17 at 100.00 N/R 2,275,170
Care Facilities Revenue Bonds, The Florida Proton Therapy
Institute Project, Series 2007, 6.250%, 9/01/27
2,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 10/18 at 100.00 AAA 1,633,760
2008, Trust 1145, 9.259%, 10/01/38 - AGC Insured
(Alternative Minimum Tax) (IF)
970 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 555,558
Assessment Bonds, Palm Beach Gardens, Series 2004A,
5.900%, 5/01/35
3,735 Palm Beach County Housing Finance Authority, Florida, 7/09 at 103.00 N/R 2,777,010
Multifamily Housing Revenue Bonds, Lake Delray Apartments,
Series 1999A, 6.400%, 1/01/31 (Alternative Minimum Tax)
1,955 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 1,165,688
Assessment Bonds, Bella Collina, Series 2004, 5.750%,
5/01/35
1,000 Sarasota County Health Facility Authority, Florida, Revenue 7/17 at 100.00 N/R 590,630
Bonds, Sarasota-Manatee Jewish Housing Council, Inc.,
Series 2007, 5.750%, 7/01/45
290 Stonegate Community Development District, Florida, Special 5/14 at 101.00 N/R 250,865
Assessment Revenue Bonds, Series 2004, 6.000%, 5/01/24
970 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 549,156
Assessment Bonds, Series 2006, 5.400%, 5/01/37
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 1,715 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R $ 1,161,964
Assessment Bonds, Series 2007, 6.650%, 5/01/40
Westchester Community Development District 1, Florida, Special
Assessment Bonds, Series 2003:
130 6.000%, 5/01/23 5/13 at 101.00 N/R 94,722
4,735 6.125%, 5/01/35 5/13 at 101.00 N/R 3,082,627
------------------------------------------------------------------------------------------------------------------------------------
40,095 Total Florida 29,862,974
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.1% (0.8% OF TOTAL INVESTMENTS)
500 Effingham County Development Authority, Georgia, Solid Waste 7/10 at 100.00 B 366,330
Disposal Revenue Bonds, Ft. James Project, Series 1998,
5.625%, 7/01/18 (Alternative Minimum Tax) (5)
1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 560,460
Revenue Bonds, Elderly Care, Lenbrook Square Project,
Series 2006A, 5.125%, 7/01/37
1,890 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 1,520,429
Revenue Bonds, St. Anne's Terrace, Series 2003, 7.625%,
12/01/33
------------------------------------------------------------------------------------------------------------------------------------
3,390 Total Georgia 2,447,219
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,000 Hawaii State Department of Budget and Finance, Private School No Opt. Call N/R 1,336,280
Revenue Bonds, Island Pacific Academy Project, Series 2007,
6.375%, 3/01/34
1,000 Hawaii State Department of Budget and Finance, Private School 2/17 at 100.00 N/R 628,010
Revenue Bonds, Montessori of Maui, Series 2007, 5.500%,
1/01/37
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Hawaii 1,964,290
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.4% (5.8% OF TOTAL INVESTMENTS)
1,700 Chicago, Illinois, Certificates of Participation Tax Increment 6/09 at 100.00 N/R 1,596,300
Revenue Notes, Chicago/Kingsbury Redevelopment Project,
Series 2004A, 6.570%, 2/15/13
990 Chicago, Illinois, Certificates of Participation, Tax 7/11 at 100.00 N/R 807,395
Increment Allocation Revenue Bonds, Diversey-Narragansett
Project, Series 2006, 7.460%, 2/15/26
1,000 Illinois Finance Authority, Revenue Bonds, Midwest Regional 10/16 at 100.00 N/R 699,130
Medical Center Galena-Stauss Hospital, Series 2006, 6.750%,
10/01/46
1,350 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 1,259,388
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37 (6)
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,106,370
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
7,800 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 7,073,820
Forest Hospital, Series 2002A, 5.750%, 7/01/29 (UB)
1,400 Illinois Health Facilities Authority, Revenue Bonds, Midwest 11/10 at 100.00 N/R 1,155,980
Physicians Group Ltd., Series 1998, 5.500%, 11/15/19
1,150 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 770,811
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
1,311 Lombard Public Facilities Corporation, Illinois, Third Tier 7/18 at 100.00 N/R 731,528
Conference Center and Hotel Revenue Bonds, Series 2005C-3,
4.000%, 1/01/36
2,004 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 1,386,167
Lakewood Springs Project, Series 2004A, 6.200%, 3/01/34
998 Volo Village, Illinois, Special Service Area 3 Special Tax 3/16 at 102.00 N/R 583,121
Bonds, Symphony Meadows Project 1, Series 2006, 6.000%,
3/01/36 (Mandatory put 2/29/16)
1,000 Yorkville United City Business District, Illinois, Storm Water 1/17 at 102.00 N/R 439,120
and Water Improvement Project Revenue Bonds, Series 2007,
6.000%, 1/01/26
967 Yorkville, Illinois, Special Service Area 2005-108 Assessment 3/16 at 102.00 N/R 565,008
Bonds, Autumn Creek Project, Series 2006, 6.000%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
22,670 Total Illinois 18,174,138
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 65
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 12.3% (8.5% OF TOTAL INVESTMENTS)
$ 6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R $ 4,987,639
Bonds, Series 2004A, 6.650%, 1/15/24
22,770 Indiana Finance Authority, Water Facilities Refunding Revenue 10/16 at 100.00 A 15,524,586
Bonds, Indiana-American Water Company Inc. Project, Series
2006, 4.875%, 10/01/36 - AMBAC Insured (Alternative
Minimum Tax)
1,250 Indiana Health and Educational Facility Financing Authority, 11/16 at 100.00 AA 1,034,900
Revenue Bonds, Ascension Health, Series 2009, Trust 3301,
13.365%, 11/15/39 (IF)
Indiana Health Facility Financing Authority, Hospital Revenue
Bonds, Community Foundation of Northwest Indiana, Series
2004A:
500 6.250%, 3/01/25 3/14 at 101.00 BBB 463,040
2,500 6.000%, 3/01/34 3/14 at 101.00 BBB 2,089,775
200 Jasper County, Indiana, Economic Development Revenue 4/10 at 101.00 B2 141,132
Refunding Bonds, Georgia Pacific Corporation Project,
Series 2000, 6.700%, 4/01/29 (Alternative Minimum Tax)
1,000 St. Joseph County, Indiana, Economic Development Revenue 7/15 at 103.00 N/R 809,040
Bonds, Chicago Trail Village Apartments, Series 2005A,
7.500%, 7/01/35
1,650 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 1,488,069
Revenue Bonds, Steel Dynamics Inc., Series 1998, 7.250%,
11/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
36,230 Total Indiana 26,538,181
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 749,130
Initiatives Project, Series 2006A, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,000 Fredonia, Kansas, Hospital Revenue Bonds, Series 2007, 8/17 at 100.00 N/R 1,292,460
6.125%, 8/15/37
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.3% (4.4% OF TOTAL INVESTMENTS)
4,000 Hodge, Louisiana, Combined Utility System Revenue Bonds, No Opt. Call D 760,000
Smurfit-Stone Container Corporation, Series 2003, 7.450%,
3/01/24 (Alternative Minimum Tax) (7)
2,500 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB+ 1,752,625
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
1,000 Louisiana Local Government Environmental Facilities and 9/16 at 100.00 N/R 594,560
Community Development Authority, Carter Plantation Hotel
Project Revenue Bonds, Series 2006A, 6.000%, 9/01/36
1,000 Louisiana Local Government Environmental Facilities and 6/16 at 101.00 N/R 755,350
Community Development Authority, Revenue Bonds, CDF
Healthcare of Louisiana LLC, Series 2006A, 7.000%, 6/01/36
3,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 2,088,360
Community Development Authority, Revenue Bonds, Southgate
Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37
Ouachita Parish Industrial Development Authority, Louisiana,
Solid Waste Disposal Revenue Bonds, White Oaks Project,
Series 2004A:
815 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 728,447
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 709,930
5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue 4/11 at 100.00 N/R 4,836,565
Bonds, Freeport McMoran Project, Series 1992, 7.700%,
10/01/22 (Alternative Minimum Tax)
2,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,407,100
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
20,245 Total Louisiana 13,632,937
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,155 Portland Housing Development Corporation, Maine, Section 8 2/14 at 102.00 Baa2 2,323,121
Assisted Senior Living Revenue Bonds, Avesta Housing
Development Corporation, Series 2004A, 6.000%, 2/01/34
------------------------------------------------------------------------------------------------------------------------------------
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3% (0.9% OF TOTAL INVESTMENTS)
$ 1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 $ 603,290
Revenue Bonds, Series 2006A, 5.250%,9/01/39 - SYNCORA GTY
Insured
2,000 Maryland Energy Financing Administration, Revenue Bonds, AES 9/09 at 100.00 N/R 1,525,880
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
350 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 332,882
Revenue Bonds, MedStar Health, Series 2004, 5.500%, 8/15/33
435 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/09 at 100.00 B3 270,618
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
3,785 Total Maryland 2,732,670
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
525 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 452,949
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 920,876
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
1,875 Total Massachusetts 1,373,825
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.2% (2.9% OF TOTAL INVESTMENTS)
1,210 Countryside Charter School, Berrien County, Michigan, Charter 10/09 at 100.00 N/R 947,357
School Revenue Bonds, Series 1999, 7.000%, 4/01/29
855 Countryside Charter School, Berrien County, Michigan, Charter 10/09 at 100.00 N/R 751,092
School Revenue Bonds, Series 2000, 8.000%, 4/01/29
Detroit Local Development Finance Authority, Michigan, Tax
Increment Bonds, Series 1998A:
1,410 5.500%, 5/01/21 5/09 at 101.00 BB- 678,365
15 5.500%, 5/01/21 - ACA Insured 5/09 at 101.00 BB- 7,217
Garden City Hospital Finance Authority, Michigan, Revenue
Bonds, Garden City Hospital Obligated Group, Series 2007A:
1,000 4.875%, 8/15/27 8/17 at 100.00 N/R 616,130
1,000 5.000%, 8/15/38 8/17 at 100.00 N/R 553,510
3,580 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 100.00 BB- 2,389,220
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993B, 5.500%, 8/15/23
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 364,535
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/15 at 102.00 N/R 1,064,475
Hills and Dales General Hospital, Series 2005A, 6.750%,
11/15/38
1,000 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,117,200
Revenue Bonds, William Beaumont Hospital, Refunding Series
2009V, 8.250%, 9/01/39
1,000 Summit Academy North Charter School, Michigan, Charter School 11/15 at 100.00 BB+ 607,890
Revenue Bonds, Series 2005, 5.500%, 11/01/30
------------------------------------------------------------------------------------------------------------------------------------
13,070 Total Michigan 9,096,991
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.9% (1.3% OF TOTAL INVESTMENTS)
Minneapolis, Minnesota, Student Housing Revenue Bonds,
Riverton Community Housing Project, Series 2000:
100 7.200%, 7/01/14 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 107,187
100 7.300%, 7/01/15 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 107,298
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease Revenue 6/14 at 102.00 N/R 1,031,645
Bonds, PACT Charter School, Series 2004A, 6.750%, 12/01/33
1,390 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,177,066
Charter School Revenue Bonds, Higher Ground Academy
Charter School, Series 2004A, 6.625%, 12/01/23
1,100 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 856,460
Charter School Revenue Bonds, HOPE Community Academy
Charter School, Series 2004A, 6.750%, 12/01/33
Nuveen Investments 67
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R $ 773,510
HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30
------------------------------------------------------------------------------------------------------------------------------------
5,015 Total Minnesota 4,053,166
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.3% (0.2% OF TOTAL INVESTMENTS)
939 Mississippi Home Corporation, Multifamily Housing Revenue 10/19 at 101.00 N/R 614,721
Bonds, Tupelo Personal Care Apartments, Series 2004-2,
6.125%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.0% (2.1% OF TOTAL INVESTMENTS)
2,000 Branson Regional Airport Transportation Development District, 7/17 at 100.00 N/R 1,163,640
Missouri, Project Revenue Bonds, Series 2007B, 6.000%,
7/01/37 (Alternative Minimum Tax)
5,935 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AAA 4,654,227
Authority, Water Facility Revenue Bonds, Missouri-American
Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC
Insured (Alternative Minimum Tax) (UB)
1,300 Saint Louis Industrial Development Authority, Missouri, Saint 12/10 at 102.00 Ca 285,571
Louis Convention Center Headquarters Hotel Project, Series
2000A, 7.250%, 12/15/35 (Alternative Minimum Tax) (7)
795 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 6/09 at 100.00 N/R 500,158
Grace Lofts Redevelopment Projects, Series 2007A, 6.000%,
3/27/26
------------------------------------------------------------------------------------------------------------------------------------
10,030 Total Missouri 6,603,596
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 2.3% (1.6% OF TOTAL INVESTMENTS)
5,200 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B- 3,576,664
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
2,000 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 1,515,500
Bonds, Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Montana 5,092,164
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 4.3% (3.0% OF TOTAL INVESTMENTS)
6,485 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 9,313,627
System Revenue Bonds, Nebraska City 2, Series 2006A,
17.921%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.0% (0.7% OF TOTAL INVESTMENTS)
500 Clark County, Nevada, Industrial Development Revenue Bonds, 5/09 at 100.00 BB+ 399,495
Nevada Power Company, Series 1997A, 5.900%, 11/01/32
(Alternative Minimum Tax)
1,460 Clark County, Nevada, Local Improvement Bonds, Mountain's 8/16 at 100.00 N/R 1,071,903
Edge Special Improvement District 142, Series 2003,
6.375%, 8/01/23
1,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 A 300,840
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 315,000
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40 (7)
------------------------------------------------------------------------------------------------------------------------------------
7,460 Total Nevada 2,087,238
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.4% (1.0% OF TOTAL INVESTMENTS)
1,660 New Jersey Economic Development Authority, Special Facilities 9/09 at 101.00 B 1,068,907
Revenue Bonds, Continental Airlines Inc., Series 1999,
6.250%, 9/15/29 (Alternative Minimum Tax)
500 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 350,885
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
600 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 613,986
Bonds, University of Medicine and Dentistry of New Jersey
Issue, Series 2009 B, 7.500%, 12/01/32
700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 706,286
5.250%, 1/01/40
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB $ 264,740
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/41
------------------------------------------------------------------------------------------------------------------------------------
3,960 Total New Jersey 3,004,804
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,000 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 977,410
Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34
1,700 New York City Industrial Development Agency, New York, 8/09 at 100.00 CCC+ 657,288
Special Facilities Revenue Bonds, American Airlines Inc.,
Series 1994, 6.900%, 8/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,700 Total New York 1,634,698
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.4% (2.4% OF TOTAL INVESTMENTS)
1,910 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,719,802
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149-3, 9.016%, 1/15/47 (IF)
5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 3,971,880
Facilities Revenue Bonds, Liberty Tire Services of North
Carolina LLC, Series 2004A, 6.750%, 7/01/29
1,190 North Carolina Capital Facilities Finance Agency, Revenue 10/16 at 100.00 AA+ 1,753,977
Bonds, Duke University, Series 2008, Tender Option Bonds
Trust 3248, 19.340%, 10/01/44 (IF)
------------------------------------------------------------------------------------------------------------------------------------
8,600 Total North Carolina 7,445,659
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.7% (3.9% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
340 5.125%, 6/01/24 6/17 at 100.00 BBB 267,947
375 5.750%, 6/01/34 6/17 at 100.00 BBB 237,416
10,855 5.875%, 6/01/47 6/17 at 100.00 BBB 6,098,013
3,125 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 2,362,219
Revenue Bonds, Bond Fund Program - Garfield Heights
Project, Series 2004D, 5.250%, 5/15/23
1,000 Ohio, Environmental Facilities Revenue Bonds, Ford Motor 4/15 at 100.00 CCC- 417,350
Company, Series 2005, 5.750%, 4/01/35 (Alternative Minimum
Tax)
4,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 2,880,400
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,695 Total Ohio 12,263,345
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0% (0.7% OF TOTAL INVESTMENTS)
970 Okeene Municipal Hospital and Schallmo Authority, Oklahoma, 1/16 at 101.00 N/R 727,510
Revenue Bonds, Series 2006, 7.000%, 1/01/35
60 Oklahoma Development Finance Authority, Revenue Refunding 8/09 at 101.00 AAA 61,415
Bonds, Hillcrest Healthcare System, Series 1999A, 5.625%,
8/15/29 (Pre-refunded 8/15/09)
1,500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa2 1,271,190
Bonds, American Airlines Inc., Series 2004A, 7.750%,
6/01/35 (Mandatory put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
2,530 Total Oklahoma 2,060,115
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7% (1.9% OF TOTAL INVESTMENTS)
460 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- 392,440
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
1,000 Berks County Industrial Development Authority, Pennsylvania, 11/17 at 101.00 N/R 696,920
First Mortgage Revenue Bonds, One Douglassville Properties
Project, Series 2007A, 6.125%, 11/01/34 (Alternative
Minimum Tax)
2,000 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 1,315,700
Pennsylvania, Revenue Bonds, Immaculata University, Series
2005, 5.750%, 10/15/37
Nuveen Investments 69
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ $ 3,489,880
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 - ACA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,460 Total Pennsylvania 5,894,940
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Rhode Island Student Loan Authority, Student Loan Program 12/17 at 100.00 A 987,630
Revenue Bonds, Series 2008A, 6.750%, 12/01/28 (Alternative
Minimum Tax)
3,500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 2,584,575
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Rhode Island 3,572,205
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.9% (1.3% OF TOTAL INVESTMENTS)
4,000 Lancaster County, South Carolina, Assessment Bonds, Edgewater 11/17 at 100.00 N/R 3,109,320
II Improvement District, Series 2007A, 7.750%, 11/01/39
1,285 Richland County, South Carolina, Environmental Improvement 4/13 at 101.00 BBB 1,035,504
Revenue Refunding Bonds, International Paper Company,
Series 2003A, 6.100%, 4/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,285 Total South Carolina 4,144,824
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.2% (2.2% OF TOTAL INVESTMENTS)
3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 3,463,565
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
2,000 5.500%, 11/01/37 11/17 at 100.00 N/R 1,015,820
2,000 5.500%, 11/01/46 11/17 at 100.00 N/R 986,020
1,000 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call BBB+ 837,310
Bonds, Series 2006A, 5.250%, 9/01/23
990 Wilson County Health and Educational Facilities Board, 7/17 at 100.00 N/R 648,470
Tennessee, Senior Living Revenue Bonds, Rutland Place,
Series 2007A, 6.300%, 7/01/37
------------------------------------------------------------------------------------------------------------------------------------
9,490 Total Tennessee 6,951,185
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.3% (7.2% OF TOTAL INVESTMENTS)
1,905 Austin Convention Enterprises Inc., Texas, Convention Center 1/11 at 100.00 N/R 1,517,580
Hotel Revenue Bonds, First Tier Series 2001C-1, 9.750%,
1/01/26
1,000 Austin Convention Enterprises Inc., Texas, Convention Center 1/17 at 100.00 BB 685,390
Hotel Revenue Bonds, First Tier Series 2006B, 5.750%,
1/01/34
10 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 5,909
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
700 Brazos River Authority, Texas, Pollution Control Revenue 7/18 at 100.00 CCC 302,498
Refunding Bonds, TXU Electric Company, Series 2001D,
8.250%, 5/01/33 (Alternative Minimum Tax)
2,000 Clifton Higher Education Finance Corporation, Texas, No Opt. Call BBB- 1,974,220
Education Revenue Bonds, Tejano Center for Community
Concerns, Inc.-Raul Yzaguirre School for Success,
Refunding Series 2009A, 9.000%, 2/15/38
1,750 Dallas-Ft. Worth International Airport Facility Improvement 11/12 at 100.00 CCC+ 668,570
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 2007, 5.500%, 11/01/30 (Alternative Minimum Tax)
Decatur Hospital Authority, Texas, Revenue Bonds, Wise
Regional Health System, Series 2004A:
1,840 7.000%, 9/01/25 9/14 at 100.00 N/R 1,492,295
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 5,068,932
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 585 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Baa3 $ 547,671
Waste Disposal Revenue Bonds, Citgo Petroleum Corporation
Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum
Tax)
1,000 Heart of Texas Education Finance Corporation, Texas, Gateway 8/16 at 100.00 N/R 665,170
Charter Academy, Series 2006A, 6.000%, 2/15/36
2,020 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 1,193,315
Bonds, Continental Air Lines Inc., Series 1998B, 5.700%,
7/15/29 (Alternative Minimum Tax)
975 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 575,981
Bonds, Continental Air Lines Inc., Series 1998C, 5.700%,
7/15/29 (Alternative Minimum Tax)
600 Houston, Texas, Airport System Special Facilities Revenue 7/11 at 101.00 B- 466,812
Bonds, Continental Air Lines Inc., Series 2001E, 7.375%,
7/01/22 (Alternative Minimum Tax)
1,000 La Vernia Education Financing Corporation, Texas, Charter 8/11 at 100.00 N/R 616,850
School Revenue Bonds, Riverwalk Education Foundation,
Series 2007A, 5.450%, 8/15/36
Richardson Hospital Authority, Texas, Revenue Bonds,
Richardson Regional Medical Center, Series 2004:
2,000 5.875%, 12/01/24 12/13 at 100.00 Baa2 1,554,520
1,000 6.000%, 12/01/34 12/13 at 100.00 Baa2 721,150
1,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 CCC 402,560
Refunding Bonds, TXU Energy Company LLC Project, Series
2003B, 6.150%, 8/01/22
3,680 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 3,176,502
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 9.642%, 2/15/36 (IF)
1,000 Texas Public Finance Authority, Charter School Finance 2/15 at 100.00 N/R 601,440
Corporation Revenue Bonds, Cosmos Foundation Inc., Series
2007A, 5.375%, 2/15/37
340 Trinity River Authority of Texas, Pollution Control Revenue 5/13 at 101.00 CCC 136,853
Refunding Bonds, TXU Electric Company, Series 2003,
6.250%, 5/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
31,005 Total Texas 22,374,218
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 2.4% (1.7% OF TOTAL INVESTMENTS)
5,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 3,766,000
Refinery Project - Hovensa LLC, Series 2003, 6.125%,
7/01/22 (Alternative Minimum Tax)
2,000 Virgin Islands Public Finance Authority, Senior Secured Lien 7/14 at 100.00 BBB 1,427,620
Revenue Bonds, Refinery Project - Hovensa LLC, Series
2004, 5.875%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Virgin Islands 5,193,620
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,940 Isle of Wight County Industrial Development Authority, 3/17 at 100.00 BBB 1,122,659
Virginia, Environmental Improvement Revenue Bonds,
International Paper Company Project, Series 2007A, 4.700%,
3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.2% (3.6% OF TOTAL INVESTMENTS)
3,000 Skagit County Public Hospital District 1, Washington, Revenue 12/13 at 100.00 Baa2 2,780,970
Bonds, Skagit Valley Hospital, Series 2003, 6.000%,
12/01/18
Vancouver Downtown Redevelopment Authority, Washington,
Revenue Bonds, Conference Center Project, Series 2003A:
1,750 6.000%, 1/01/28 - ACA Insured 1/14 at 100.00 N/R 1,399,808
4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 3,573,281
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 1,579,325
Nuveen Investments 71
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,000 Washington State Economic Development Finance Authority, 12/17 at 100.00 N/R $ 664,170
Revenue Bonds, Coeur D'Alene Fiber Project, Series 2007G,
7.000%, 12/01/27 (Alternative Minimum Tax)
2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,270,460
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
14,975 Total Washington 11,268,014
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.3% (0.2% OF TOTAL INVESTMENTS)
500 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 329,195
Excise Tax Revenue Bonds, Fort Henry Economic Development,
Series 2006B, 5.625%, 3/01/36
500 Ohio County Commission, West Virginia, Tax Increment Revenue No Opt. Call N/R 343,630
Bonds, Fort Henry Centre Financing District, Series 2007A,
5.850%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total West Virginia 672,825
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 11.7% (8.1% OF TOTAL INVESTMENTS)
550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R (4) 715,699
Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16
(Pre-refunded 12/01/14)
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Aurora Health Care Inc., Series 1999A:
9,485 5.600%, 2/15/29 2/10 at 100.00 A3 7,775,234
2,300 5.600%, 2/15/29 - ACA Insured 2/10 at 100.00 BBB+ 1,885,402
1,000 Wisconsin Health and Educational Facilities Authority, 4/14 at 100.00 N/R 696,980
Revenue Bonds, Southwest Health Center Inc., Series 2004A,
6.250%, 4/01/34
Wisconsin Health and Educational Facilities Authority,
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006:
7,994 5.250%, 8/15/26 8/16 at 100.00 BBB+ 5,932,524
12,000 5.250%, 8/15/34 8/16 at 100.00 BBB+ 8,223,241
------------------------------------------------------------------------------------------------------------------------------------
33,329 Total Wisconsin 25,229,080
------------------------------------------------------------------------------------------------------------------------------------
$ 418,936 Total Investments (cost $390,003,528) - 144.4% 312,644,854
==============----------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.8)% $ (10,300,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.3% 9,098,960
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (43.9)% (8) (95,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 216,443,814
===================================================================================================================
INVESTMENTS IN DERIVATIVES
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2009:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (9) DATE (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------------------
JPMorgan $ 5,000,000 Receive 3-Month USD-LIBOR 3.413% Semi-Annually 4/09/10 4/09/39 $ 301,287
Royal Bank of Canada 3,000,000 Receive 3-Month USD-LIBOR 3.327 Semi-Annually 4/23/10 4/23/39 228,693
--------------------------------------------------------------------------------------------------------------------------------
$ 529,980
================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The issuer has received a formal adverse determination from the Internal
Revenue Service (the "IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally determined that the
interest on the bonds should be treated as taxable.
(6) Portion of investment has been pledged as collateral for Recourse Trusts.
(7) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(8) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.4%.
(9) Effective Date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
USD-LIBOR United States Dollar-London Inter-Bank Offered Rate
See accompanying notes to financial statements.
Nuveen Investments 73
NMD | Nuveen Municipal High Income Opportunity Fund 2
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.8% (1.5% OF TOTAL INVESTMENTS)
$ 2,290 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa1 $ 1,769,735
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A, 5.250%, 11/15/20
1,000 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 766,270
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,290 Total Alabama 2,536,005
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 7.0% (5.8% OF TOTAL INVESTMENTS)
1,000 Estrella Mountain Ranch Community Facilities District, 7/17 at 100.00 N/R 684,130
Goodyear, Arizona, General Obligation Bonds, Series 2007,
6.200%, 7/15/32
4,000 Quechan Indian Tribe of the Fort Yuma Reservation, Arizona, 12/17 at 102.00 N/R 2,780,480
Government Project Bonds, Series 2007, 7.000%, 12/01/27
8,325 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 5,643,434
Bonds, Series 2007, 5.000%, 12/01/37
1,000 Yuma County Industrial Development Authority, Arizona, Exempt 12/17 at 100.00 N/R 722,040
Revenue Bonds, Far West Water & Sewer Inc. Refunding,
Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,325 Total Arizona 9,830,084
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.4% (12.8% OF TOTAL INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 1,297,460
Dominican University, Series 2006, 5.000%, 12/01/36
4,065 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 3,716,711
Bonds, Sutter Health, Series 2007A, Trust 3299, 16.588%,
11/15/46 (IF)
1,020 California Housing Finance Agency, California, Home Mortgage 8/17 at 100.00 Aa2 838,185
Revenue Bonds, Series 2008B, 5.000%, 2/01/28 (Alternative
Minimum Tax) (4)
1,825 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,237,569
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/35
2,000 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 1,933,920
Bonds, St. Joseph Health System, Series 2007C, 5.750%,
7/01/47 - FGIC Insured
Daly City Housing Development Finance Agency, California,
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Refunding, Series 2007A:
3,500 5.000%, 12/15/37 12/17 at 100.00 A- 2,445,415
1,990 6.500%, 12/15/47 12/17 at 100.00 N/R 1,418,412
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1:
3,000 5.750%, 6/01/47 6/17 at 100.00 BBB 1,727,400
2,500 5.125%, 6/01/47 6/17 at 100.00 BBB 1,289,275
3,190 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 450,556
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, Trust 2213, 12.201%, 6/01/45 - AMBAC Insured (IF)
3,665 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 970,785
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, Trust 2448, 12.214%, 6/01/38 - FGIC Insured (IF)
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 5,335 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- $ 4,354,427
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/38 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,090 Total California 21,680,115
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.5% (7.9% OF TOTAL INVESTMENTS)
2,000 Arista Metropolitan District, Colorado, Special Revenue 12/15 at 100.00 N/R 1,667,600
Bonds, Series 2008, 9.250%, 12/01/37
500 Colorado Educational and Cultural Facilities Authority, 12/16 at 100.00 N/R 316,940
Charter School Revenue Bonds, Carbon Valley Academy,
Series 2006, 5.625%, 12/01/36
1,530 Colorado Educational and Cultural Facilities Authority, 5/17 at 100.00 BB+ 990,017
Charter School Revenue Bonds, Windsor Academy, Series
2007A, 5.700%, 5/01/37
2,000 Colorado Educational and Cultural Facilities Authority, 6/18 at 102.00 N/R 1,461,880
Revenue Bonds, Pikes Peak School of Expeditionary Learning
Charter School, Series 2008, 6.625%, 6/01/38
1,480 Colorado Health Facilities Authority, Colorado, Revenue 9/16 at 100.00 AA 1,387,692
Bonds, Catholic Health Initiatives, Series 2006A, 5.000%,
9/01/41 (4)
5,045 Colorado Housing and Finance Authority, Revenue Bonds, 4/17 at 100.00 N/R 3,328,489
Confluence Energy LLC Project, Series 2007, 6.750%, 4/01/27
(Alternative Minimum Tax)
1,000 Colorado State Higher Education Capital Construction Lease 11/18 at 100.00 AA- 1,047,470
Purchase Financing Program Certificates of Participation,
Series 2008, 5.500%, 11/01/27 (4)
1,000 Public Authority for Colorado Energy, Natural Gas Revenue No Opt. Call A 838,240
Bonds, Colorado Springs Utilities, Series 2008, 6.500%,
11/15/38
3,000 University of Colorado Hospital Authority, Revenue Bonds, 5/16 at 100.00 A3 2,311,020
Series 2006A, 5.250%, 11/15/39
------------------------------------------------------------------------------------------------------------------------------------
17,555 Total Colorado 13,349,348
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 17.3% (14.4% OF TOTAL INVESTMENTS)
1,480 Beeline Community Development District, Palm Beach County, 5/18 at 100.00 N/R 1,085,610
Florida, Special Assessment Bonds, Series 2008A, 7.000%,
5/01/37
1,000 Colonial Country Club Community Development District, 5/13 at 101.00 A+ 987,930
Florida, Capital Improvement Revenue Bonds, Series 2003,
6.400%, 5/01/33
2,000 Escambia County, Florida, Environmental Improvement Revenue 8/11 at 100.00 BBB 1,340,200
Bonds, International Paper Company Projects, Series 2006B,
5.000%, 8/01/26 (Alternative Minimum Tax)
1,320 Fishhawk Community Development District II, Florida, Special 5/14 at 100.00 N/R 1,014,090
Assessment Revenue Bonds, Series 2004A, 6.125%, 5/01/34
2,000 Habitat Community Development District, Florida, Capital No Opt. Call N/R 1,359,800
Improvement Revenue Bonds, Series 2004, 5.850%, 5/01/35
2,915 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 1,669,537
Assessment Bonds, Palm Beach Gardens, Series 2004A,
5.900%, 5/01/35
1,500 Palm Glades Community Development District, Florida, Special 5/18 at 100.00 N/R 1,059,825
Assessment Bond, Series 2008A, 7.125%, 5/01/39
980 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 584,335
Assessment Bonds, Bella Collina, Series 2004, 5.750%,
5/01/35
1,000 Poinciana West Community Development District, Florida, 5/17 at 100.00 N/R 717,840
Special Assessment Bonds, Series 2007, 6.000%, 5/01/37
970 Reunion West Community Development District, Florida, Special 5/12 at 101.00 N/R 474,854
Assessment Bonds, Series 2004, 6.250%, 5/01/36
5,355 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 4,128,223
Bonds, Baptist Health Systems of South Florida, Trust
1030, 9.458%, 8/15/37 (IF)
Nuveen Investments 75
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 6,000 Split Pine Community Development District, Florida, Special 5/17 at 100.00 N/R $ 3,294,000
Assessment Bonds, Series 2007A, 5.250%, 5/01/39
4,940 Stoneybrook Venice Community Development District, Florida, 5/18 at 100.00 N/R 3,360,731
Capital Improvement Revenue Bonds, Series 2007, 6.750%,
5/01/38
3,455 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,956,014
Assessment Bonds, Series 2006, 5.400%, 5/01/37
2,000 Westchester Community Development District 1, Florida, 5/13 at 101.00 N/R 1,302,060
Special Assessment Bonds, Series 2003, 6.125%, 5/01/35
------------------------------------------------------------------------------------------------------------------------------------
36,915 Total Florida 24,335,049
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 544,060
Revenue Bonds, Elderly Care, Lenbrook Square Project,
Series 2006A, 5.125%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.2% (5.9% OF TOTAL INVESTMENTS)
1,100 Hillside, Cook County, Illinois, Senior Lien Tax Increment 1/18 at 102.00 N/R 807,477
Revenue Bonds, Mannheim Redevelopment Project, Series
2008, 7.000%, 1/01/28
5,620 Illinois Finance Authority, Charter School Revenue Bonds, No Opt. Call BBB 3,511,713
Chicago Charter School Foundation, Series 2007, 5.000%,
12/01/36
1,500 Illinois Finance Authority, Revenue Bonds, Roosevelt 4/17 at 100.00 Baa1 1,259,100
University, Series 2007, 5.500%, 4/01/37
2,500 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 BB- 1,419,500
Conference Center and Hotel Revenue Bonds, Series 2005A-2,
5.500%, 1/01/36 - ACA Insured
Southwestern Illinois Development Authority, Illinois, Saint
Clair County Comprehensive Mental Health Center, Series
2007:
1,295 6.200%, 6/01/17 No Opt. Call N/R 1,115,539
2,745 6.625%, 6/01/37 6/17 at 103.00 N/R 1,925,590
------------------------------------------------------------------------------------------------------------------------------------
14,760 Total Illinois 10,038,919
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1% (2.5% OF TOTAL INVESTMENTS)
3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 1,985,490
Revenue Bonds, Cardinal Health System, Series 2006,
5.125%, 8/01/29
1,600 Indiana Bond Bank, Special Program Gas Revenue Bonds, JP No Opt. Call Aa3 1,070,304
Morgan Ventures Energy Corporation Guaranteed, Series
2007A, 14.378%, 10/15/20 (IF)
Vigo County, Indiana, Hospital Authority, Union Hospital,
Revenue Bonds, Series 2007:
250 5.700%, 9/01/37 9/17 at 100.00 N/R 165,773
1,625 5.800%, 9/01/47 9/17 at 100.00 N/R 1,054,333
------------------------------------------------------------------------------------------------------------------------------------
6,475 Total Indiana 4,275,900
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.8% (4.8% OF TOTAL INVESTMENTS)
5,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB+ 3,505,250
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
500 Louisiana Local Government Environmental Facilities and No Opt. Call A 453,425
Community Development Authority, Revenue Bonds, Capital
Projects and Equipment Acquisition Program, Series 2000A,
6.300%, 7/01/30 - AMBAC Insured
5,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 3,480,600
Community Development Authority, Revenue Bonds, Southgate
Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37
1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 703,550
Settlement Asset-Backed Bonds, Series 2001B, 5.875%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
11,500 Total Louisiana 8,142,825
------------------------------------------------------------------------------------------------------------------------------------
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.5% (0.4% OF TOTAL INVESTMENTS)
$ 90 Boston Industrial Development Financing Authority, 9/12 at 102.00 B3 $ 59,189
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum
Tax)
1,000 Massachusetts Health and Educational Facilities Authority 1/18 at 100.00 N/R 667,400
Revenue Bonds, Quincy Medical Center Issue, Series A
(2008), 6.500%, 1/15/38
------------------------------------------------------------------------------------------------------------------------------------
1,090 Total Massachusetts 726,589
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.3% (1.1% OF TOTAL INVESTMENTS)
1,000 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 616,130
Bonds, Garden City Hospital Obligated Group, Series 2007A,
4.875%, 8/15/27
1,750 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 1,236,743
School Revenue Bonds, American Montessori Academy, Series
2007, 6.500%, 12/01/37
20 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 100.00 BB 13,043
Bonds, Detroit Medical Center Obligated Group, Series
1998A, 5.250%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
2,770 Total Michigan 1,865,916
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.1% (1.7% OF TOTAL INVESTMENTS)
4,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 2,934,480
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%,
11/15/35
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6% (1.4% OF TOTAL INVESTMENTS)
1,000 Missouri Development Finance Board. Infrastructure Facilities 4/14 at 100.00 A+ 1,001,190
Revenue Bonds, City of Independence, Missouri - Events
Center Project, Series 2009F, 6.250%, 4/01/38
40 Saint Louis Industrial Development Authority, Missouri, Saint 12/10 at 102.00 Ca 8,979
Louis Convention Center Headquarters Hotel Project, Series
2000A, 7.000%, 12/15/15 (Alternative Minimum Tax) (5)
1,972 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 9/09 at 100.00 N/R 1,280,183
Fashion Square Redevelopment Project, Series 2008A,
6.300%, 8/22/26
------------------------------------------------------------------------------------------------------------------------------------
3,012 Total Missouri 2,290,352
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.4% (0.3% OF TOTAL INVESTMENTS)
715 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 541,791
Bonds, Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.6% (1.4% OF TOTAL INVESTMENTS)
55 Clark County, Nevada, Industrial Development Revenue Bonds, 7/09 at 100.00 BB+ 42,378
Nevada Power Company, Series 1995A, 5.600%, 10/01/30
(Alternative Minimum Tax)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
1,200 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 A 361,044
1,200 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 A 361,008
Sparks Tourism Improvement District 1, Legends at Sparks
Marina, Nevada, Senior Sales Tax Revenue Bonds Series
2008A:
1,000 6.500%, 6/15/20 6/18 at 100.00 Ba2 801,500
1,000 6.750%, 6/15/28 6/18 at 100.00 Ba2 723,800
------------------------------------------------------------------------------------------------------------------------------------
4,455 Total Nevada 2,289,730
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 77
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.9% (4.0% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Special Facilities
Revenue Bonds, Continental Airlines Inc., Series 1999:
$ 3,000 6.250%, 9/15/19 (Alternative Minimum Tax) 9/09 at 101.00 B $ 2,201,430
55 6.400%, 9/15/23 (Alternative Minimum Tax) 9/09 at 101.00 B 38,370
240 6.250%, 9/15/29 (Alternative Minimum Tax) 9/09 at 101.00 B 154,541
25 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 17,544
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
4,700 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 3,690,816
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 706,286
5.250%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
8,720 Total New Jersey 6,808,987
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.2% (0.2% OF TOTAL INVESTMENTS)
500 Montecito Estates Public Improvement District, New Mexico, 10/17 at 100.00 N/R 331,785
Special Levee Revenue Bonds, Series 2007, 7.000%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.1% (0.9% OF TOTAL INVESTMENTS)
1,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 766,740
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005, 7.625%, 8/01/25
(Mandatory put 8/01/16) (Alternative Minimum Tax)
1,030 New York City Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 795,160
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1, 5.800%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
2,030 Total New York 1,561,900
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.0% (3.3% OF TOTAL INVESTMENTS)
1,685 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 1,208,314
Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38
1,910 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,719,802
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149-3, 9.016%, 1/15/47 (IF)
North Carolina Capital Facilities Financing Agency,
Educational Facilities Revenue Bond, Meredith College,
Series 2008A:
1,740 6.000%, 6/01/31 6/18 at 100.00 BBB 1,714,787
1,000 6.125%, 6/01/35 6/18 at 100.00 BBB 981,430
------------------------------------------------------------------------------------------------------------------------------------
6,335 Total North Carolina 5,624,333
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.8% (3.1% OF TOTAL INVESTMENTS)
6,845 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 3,845,316
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 5.875%, 6/01/47
2,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 1,440,200
Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%,
7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,845 Total Ohio 5,285,516
------------------------------------------------------------------------------------------------------------------------------------
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.2% (1.0% OF TOTAL INVESTMENTS)
$ 1,190 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A $ 861,858
John Health System, Series 2007, Trust 1037, 8.246%,
2/15/42 (IF)
45 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 6/09 at 100.00 B- 32,115
American Airlines Inc., Series 1995, 6.250%, 6/01/20
1,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa2 847,460
Bonds, American Airlines Inc., Series 2004A, 7.750%,
6/01/35 (Mandatory put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
2,235 Total Oklahoma 1,741,433
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.3% (1.1% OF TOTAL INVESTMENTS)
1,010 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 721,059
Pennsylvania, Avon Grove Charter School Revenue Bonds,
Series 2007A, 6.375%, 12/15/37
1,450 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 1,155,607
Bonds, Brethren Village Project, Series 2008A, 6.500%,
7/01/40
------------------------------------------------------------------------------------------------------------------------------------
2,460 Total Pennsylvania 1,876,666
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.0% (0.0% OF TOTAL INVESTMENTS)
20 Puerto Rico Ports Authority, Special Facilities Revenue 6/09 at 100.00 CCC+ 8,039
Bonds, American Airlines Inc., Series 1996A, 6.250%,
6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.3% (0.2% OF TOTAL INVESTMENTS)
500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 369,225
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.1% (2.5% OF TOTAL INVESTMENTS)
1,600 Georgetown County, South Carolina, Environmental Improvement 8/11 at 100.00 BBB 1,000,816
Revenue Bonds, International Paper Company, Series 2006A,
5.000%, 8/01/30 (Alternative Minimum Tax)
3,477 Lancaster County, South Carolina, Special Assessment Bonds, No Opt. Call N/R 3,289,937
Edgewater II Improvement District, Series 2007B, 7.700%,
11/01/17
------------------------------------------------------------------------------------------------------------------------------------
5,077 Total South Carolina 4,290,753
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.8% (1.5% OF TOTAL INVESTMENTS)
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
2,000 5.500%, 11/01/37 11/17 at 100.00 N/R 1,015,820
3,000 5.500%, 11/01/46 11/17 at 100.00 N/R 1,479,030
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Tennessee 2,494,850
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.3% (11.0% OF TOTAL INVESTMENTS)
440 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 259,992
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
2,100 Clifton Higher Education Finance Corporation, Texas, No Opt. Call BBB- 2,076,669
Education Revenue Bonds, Tejano Center for Community
Concerns, Inc.-Raul Yzaguirre School for Success,
Refunding Series 2009A, 8.750%, 2/15/28
3,000 Danbury Higher Education Authority Inc., Texas, Golden Rule 2/18 at 100.00 BB+ 2,174,130
Charter School Revenue Bonds, Series 2008A, 6.500%, 8/15/38
Nuveen Investments 79
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,000 Hidalgo Willacy Housing Finance Corporation, Texas, 1/14 at 102.00 N/R $ 758,480
Multifamily Housing Revenue Bonds, Heritage Square
Apartments Project, Series 2003A, 7.000%, 1/01/39
1,330 La Vernia Higher Education Financing Corporation, Texas, 2/16 at 100.00 N/R 940,948
Education Revenue Bonds, Amigos Por Vida Friends For Life
Public Charter School, Series 2008, 6.375%, 2/15/37
1,335 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 1,261,615
Refunding Bonds, Series 2008, 5.750%, 1/01/38
110 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 64,998
Bonds, TXU Energy Company LLC Project, Series 2001B,
5.750%, 5/01/30 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
385 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 223,639
Refunding Bonds, TXU Electric Company, Series 2001A,
5.500%, 5/01/22 (Mandatory put 11/01/11)
3,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 CCC 1,207,680
Refunding Bonds, TXU Energy Company LLC Project, Series
2003B, 6.150%, 8/01/22
5,290 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 4,566,222
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 9.642%, 2/15/36 (IF)
1,000 Texas Public Finance Authority, Charter School Revenue Bonds, 12/14 at 100.00 BB 776,340
School of Excellence Charter School, Series 2004A, 7.000%,
12/01/34
5,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central 8/12 at 100.00 A 4,426,050
Texas Turnpike System, Series 2002A, 5.000%, 8/15/42 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,990 Total Texas 18,736,763
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.7% (3.1% OF TOTAL INVESTMENTS)
Utah State Charter School Finance Authority, Noah Webster
Academy Revenue Bonds, Series:
500 6.250%, 6/15/28 6/17 at 100.00 N/R 377,180
1,430 6.500%, 6/15/38 6/17 at 100.00 N/R 1,037,937
5,500 Utah State Charter School Finance Authority, Revenue Bonds, 12/17 at 100.00 BBB- 3,817,385
Summit Academy Project, Series 2007A, 5.800%, 6/15/38
------------------------------------------------------------------------------------------------------------------------------------
7,430 Total Utah 5,232,502
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.2% (4.3% OF TOTAL INVESTMENTS)
4,000 Kalispel Indian Tribe, Washington, Priority Distribution No Opt. Call N/R 2,862,400
Bonds, Series 2008, 6.750%, 1/01/38
7,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 4,446,610
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Washington 7,309,010
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.4% (0.3% OF TOTAL INVESTMENTS)
740 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 487,209
Excise Tax Revenue Bonds, Fort Henry Economic Development,
Series 2006B, 5.625%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.0% (0.0% OF TOTAL INVESTMENTS)
500 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ --
Revenue Bonds, Wheaton Franciscan Health, Trust 2113,
13.299%, 8/15/34 (IF) (6)
3,250 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ --
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, Trust 2187, 13.299%, 8/15/34 (IF) (6)
------------------------------------------------------------------------------------------------------------------------------------
3,750 Total Wisconsin --
------------------------------------------------------------------------------------------------------------------------------------
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.6% (1.3% OF TOTAL INVESTMENTS)
$ 3,000 Sweetwater County, Wyoming, Solid Waste Disposal 12/15 at 100.00 BBB $ 2,239,527
Revenue Bonds, FMC Corporation, Series 2005, 5.600%,
12/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 247,584 Total Investments (cost $228,529,500) - 120.9% 169,779,661
==============----------------------------------------------------------------------------------------------------------------------
Borrowings - (24.9)% (7) (35,000,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.0% 5,624,176
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 140,403,837
===================================================================================================================
INVESTMENTS IN DERIVATIVES
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2009:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (8) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $ 6,000,000 Receive 3-Month USD-LIBOR 3.413% Semi-Annually 4/09/10 4/09/39 $ 361,544
Royal Bank of Canada 3,000,000 Receive 3-Month USD-LIBOR 3.327 Semi-Annually 4/23/10 4/23/39 228,693
------------------------------------------------------------------------------------------------------------------------------------
$ 590,237
====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Portion of investment has been pledged as collateral for Recourse Trusts.
(5) The Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Zero value on investments represents unrealized depreciation related to
Recourse Trusts. See Statement of Assets and Liabilities for more
information.
(7) Borrowings as a percentage of Total Investments is 20.6%.
(8) Effective Date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(IF) Inverse floating rate investment.
USD-LIBOR United States Dollar-London Inter-Bank Offered Rate
See accompanying notes to financial statements.
Nuveen Investments 81
| Statement of ASSETS & LIABILITIES April 30, 2009 (Unaudited)
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost
$785,068,402, $741,942,238,
$1,179,693,451,
$424,553,674, $390,003,528
and $228,529,500,
respectively) $ 762,538,405 $ 705,617,812 $1,165,267,239 $ 420,159,010 $ 312,644,854 $ 169,779,661
Cash 3,539,063 -- 1,116,139 1,900,196 3,449,703 1,634,156
Unrealized appreciation on
forward swaps Receivables: -- -- -- -- 529,980 590,237
Interest 12,363,556 11,960,065 19,500,515 6,938,701 8,489,390 5,805,910
Investments sold -- 310,000 1,630,000 -- 712,098 185,000
Shares sold -- -- -- -- 44,117 --
Other assets 150,663 130,463 224,747 96,823 140,634 83,650
---------------------------------------------------------------------------------------------------------------------------------
Total assets 778,591,687 718,018,340 1,187,738,640 429,094,730 326,010,776 178,078,614
---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Borrowings -- -- -- -- -- 35,000,000
Cash overdraft -- 5,050 -- -- -- --
Floating rate obligations 85,527,000 19,230,000 53,875,000 42,995,000 10,300,000 --
Unrealized depreciation on
Recourse Trusts Payables: -- 715,950 -- -- -- 970,350
Investments purchased 2,782,852 -- -- -- 2,018,724 368,878
Common share dividends 1,956,585 2,020,631 3,156,618 1,032,237 1,925,551 1,143,078
Preferred share dividends 14,859 17,524 29,120 11,768 8,949 N/A
Accrued expenses:
Interest on borrowings -- -- -- -- -- 27,398
Management fees 357,936 357,713 576,192 199,507 124,488 103,925
Shelf offering costs -- -- -- -- 65,000 --
Other 90,352 232,504 383,382 136,972 124,250 61,148
---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 90,729,584 22,579,372 58,020,312 44,375,484 14,566,962 37,674,777
---------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at
liquidation value 210,700,000 257,925,000 403,600,000 126,850,000 95,000,000 N/A
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 477,162,103 $ 437,513,968 $ 726,118,328 $ 257,869,246 $ 216,443,814 $ 140,403,837
=================================================================================================================================
Common shares outstanding 35,820,767 34,015,420 54,219,374 19,888,518 23,978,679 15,947,599
=================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to Common
shares,divided by Common
shares outstanding) $ 13.32 $ 12.86 $ 13.39 $ 12.97 $ 9.03 $ 8.80
=================================================================================================================================
NET ASSETS APPLICABLE TO COMMON
SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 358,208 $ 340,154 $ 542,194 $ 198,885 $ 239,787 $ 159,476
Paid-in surplus 499,415,789 473,825,351 755,307,413 276,434,662 339,762,429 227,207,197
Undistributed
(Over-distribution of) net
investment income 1,866,814 2,510,633 4,831,431 844,912 1,056,015 1,277,863
Accumulated net realized gain
(loss) from investments and
derivative transactions (1,948,711) (2,121,794) (20,136,498) (15,214,549) (47,785,723) (29,110,747)
Net unrealized appreciation
(depreciation) of
investments and derivative
transactions (22,529,997) (37,040,376) (14,426,212) (4,394,664) (76,828,694) (59,129,952)
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 477,162,103 $ 437,513,968 $ 726,118,328 $ 257,869,246 $ 216,443,814 $ 140,403,837
=================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 1,000,000 Unlimited Unlimited
=================================================================================================================================
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through April 30, 2009.
See accompanying notes to financial statements.
82 Nuveen Investments
| Statement of OPERATIONS Six Months Ended April 30, 2009 (Unaudited)
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 21,044,768 $ 21,395,751 $ 32,792,735 $ 11,227,882 $ 14,233,526 $ 8,290,962
---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,121,486 2,125,649 3,431,446 1,172,843 1,166,315 636,492
Preferred shares - auction fees 283,290 331,116 515,422 157,260 139,751 N/A
Preferred shares - dividend
disbursing agent fees 24,795 24,795 29,753 14,877 14,863 N/A
Shareholders' servicing agent
fees and expenses 24,920 22,117 36,546 13,481 1,246 189
Interest expense 402,378 68,741 244,313 247,882 48,542 202,964
Custodian's fees and expenses 59,062 60,061 122,163 34,290 50,498 28,048
Directors'/Trustees' fees and
expenses 13,504 13,623 22,246 7,339 6,386 3,271
Professional fees 34,642 33,609 51,231 21,267 278,106 39,832
Shareholders' reports -
printing and mailing
expenses 81,210 81,551 127,214 50,092 53,912 20,200
Stock exchange listing fees 6,128 5,829 9,221 4,568 1,636 9,713
Investor relations expense 14,900 15,325 24,148 8,203 8,078 --
Shelf offering expenses -- -- -- -- 190,495 --
Other expenses 24,445 23,843 31,230 18,653 13,338 5,605
---------------------------------------------------------------------------------------------------------------------------------
Total expenses before
custodian fee credit and
expense reimbursement 3,090,760 2,806,259 4,644,933 1,750,755 1,973,166 946,314
Custodian fee credit (25,692) (28,536) (21,366) (14,029) (1,135) (44)
Expense reimbursement -- -- -- -- (402,868) --
---------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,065,068 2,777,723 4,623,567 1,736,726 1,569,163 946,270
---------------------------------------------------------------------------------------------------------------------------------
Net investment income 17,979,700 18,618,028 28,169,168 9,491,156 12,664,363 7,344,692
---------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) from:
Investments (2,095,466) (644,769) (10,436,688) (7,360,519) (28,947,905) (22,239,402)
Forward swaps -- -- -- (4,125,000) -- --
Futures -- -- -- -- (4,745,444) (1,836,946)
Change in net unrealized
appreciation (depreciation)
of:
Investments 40,883,496 26,124,570 43,761,882 31,238,396 20,788,682 19,093,388
Forward swaps -- -- -- 3,882,335 529,980 590,237
Futures -- -- -- -- (1,213,249) (469,645)
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) 38,788,030 25,479,801 33,325,194 23,635,212 (13,587,936) (4,862,368)
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income (995,968) (1,451,136) (2,256,848) (684,093) (703,566) N/A
From accumulated net realized
gains (401,006) -- -- -- -- N/A
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to
Preferred shareholders (1,396,974) (1,451,136) (2,256,848) (684,093) (703,566) N/A
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations $ 55,370,756 $ 42,646,693 $ 59,237,514 $ 32,442,275 $ (1,627,139) $ 2,482,324
=================================================================================================================================
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 83
| Statement of CHANGES in NET ASSETS (Unaudited)
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
-------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/09 10/31/08 4/30/09 10/31/08
-------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 17,979,700 $ 36,319,392 $ 18,618,028 $ 36,616,331
Net realized gain (loss) from:
Investments (2,095,466) 1,970,511 (644,769) (525,514)
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 40,883,496 (102,361,574) 26,124,570 (101,745,781)
Forward swaps -- -- -- --
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (995,968) (10,309,882) (1,451,136) (10,295,198)
From accumulated net realized gains (401,006) -- -- --
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from operations 55,370,756 (74,381,553) 42,646,693 (75,950,162)
-------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,508,019) (27,513,935) (13,674,200) (27,346,151)
From accumulated net realized gains (1,071,041) -- -- --
-------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (14,579,060) (27,513,935) (13,674,200) (27,346,151)
-------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs adjustments -- -- -- --
Proceeds from shelf offering, net of
offering costs adjustments -- -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions -- -- -- 167,321
Repurchased -- -- -- --
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from capital
share transactions -- -- -- 167,321
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 40,791,696 (101,895,488) 28,972,493 (103,128,992)
Net assets applicable to Common shares at the
beginning of period 436,370,407 538,265,895 408,541,475 511,670,467
-------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 477,162,103 $ 436,370,407 $ 437,513,968 $ 408,541,475
===================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 1,866,814 $ (1,608,899) $ 2,510,633 $ (982,059)
===================================================================================================================
See accompanying notes to financial statements.
84 Nuveen Investments
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
-------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/09 10/31/08 4/30/09 10/31/08
-------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 28,169,168 $ 56,052,360 $ 9,491,156 $ 18,713,212
Net realized gain (loss) from:
Investments (10,436,688) 2,043,801 (7,360,519) (3,335,364)
Forward swaps -- -- (4,125,000) (247,000)
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 43,761,882 (124,593,451) 31,238,396 (53,822,222)
Forward swaps -- -- 3,882,335 (4,012,094)
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (2,256,848) (16,361,736) (684,093) (5,664,126)
From accumulated net realized gains -- -- -- --
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from operations 59,237,514 (82,859,026) 32,442,275 (48,367,594)
-------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (20,711,804) (39,634,364) (6,924,819) (13,435,852)
From accumulated net realized gains -- -- -- --
-------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (20,711,804) (39,634,364) (6,924,819) (13,435,852)
-------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs adjustments -- -- -- --
Proceeds from shelf offering, net of
offering costs adjustments -- -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions -- -- -- --
Repurchased -- -- (165,375) (57,215)
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from capital
share transactions -- -- (165,375) (57,215)
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 38,525,710 (122,493,390) 25,352,081 (61,860,661)
Net assets applicable to Common shares at the
beginning of period 687,592,618 810,086,008 232,517,165 294,377,826
-------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 726,118,328 $ 687,592,618 $ 257,869,246 $ 232,517,165
===================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 4,831,431 $ (369,085) $ 844,912 $ (1,037,332)
===================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 85
| Statement of CHANGES in NET ASSETS (continued) (Unaudited)
HIGH INCOME HIGH INCOME
OPPORTUNITY (NMZ) OPPORTUNITY 2 (NMD)
-------------------------------- ------------------------------------
FOR THE PERIOD
11/15/07
SIX MONTHS YEAR SIX MONTHS (COMMENCEMENT
ENDED ENDED ENDED OF OPERATIONS)
4/30/09 10/31/08 4/30/09 THROUGH 10/31/08
-----------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 12,664,363 $ 30,750,774 $ 7,344,692 $ 14,031,123
Net realized gain (loss) from:
Investments (28,947,905) (13,697,890) (22,239,402) (6,437,236)
Forward swaps -- -- -- --
Futures (4,745,444) (704,149) (1,836,946) 1,400,745
Change in net unrealized appreciation
(depreciation) of:
Investments 20,788,682 (122,536,846) 19,093,388 (78,813,577)
Forward swaps 529,980 -- 590,237 --
Futures (1,213,249) 1,213,249 (469,645) 469,645
Distributions to Preferred Shareholders:
From net investment income (703,566) (5,489,754) N/A N/A
From accumulated net realized gains -- (526,498) N/A N/A
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from operations (1,627,139) (110,991,114) 2,482,324 (69,349,300)
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (12,910,561) (23,458,428) (7,636,192) (12,459,756)
From accumulated net realized gains -- (2,146,329) -- --
-----------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common
shareholders (12,910,561) (25,604,757) (7,636,192) (12,459,756)
-----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs -- -- -- 225,146,250
Proceeds from shelf offering, net of
offering costs adjustments 542,263 4,544,766 -- --
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions 316,378 690,395 813,135 1,307,101
Repurchased -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from capital
share transactions 858,641 5,235,161 813,135 226,453,351
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (13,679,059) (131,360,710) (4,340,733) 144,644,295
Net assets applicable to Common shares at the
beginning of period 230,122,873 361,483,583 144,744,570 100,275
-----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $ 216,443,814 $ 230,122,873 $ 140,403,837 $ 144,744,570
=======================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 1,056,015 $ 2,005,779 $ 1,277,863 $ 1,569,363
=======================================================================================================================
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through April 30, 2009.
See accompanying notes to financial statements.
86 Nuveen Investments
| Statement of CASH FLOWS Six Months Ended April 30, 2009 (Unaudited)
INVESTMENT PREMIER HIGH INCOME
QUALITY INCOME OPPORTUNITY 2
(NQM) (NPF) (NMD)
-------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS $ 55,370,756 $ 32,442,275 $ 2,482,324
Adjustments to reconcile the net increase (decrease) in net assets
applicable to Common shares from operations to net cash provided by
(used in) operating activities:
Purchases of investments (25,769,868) (19,970,946) (39,773,751)
Proceeds from sales and maturities of investments 28,188,473 23,612,910 57,716,503
Proceeds from (Purchases of) short-term investments, net 1,167,000 9,375,000 --
Proceeds from (Payments for) terminated forward swaps -- (4,125,000) --
Proceeds from (Payments for) closed/expired futures contracts -- -- (1,836,946)
Amortization (Accretion) of premiums and discounts, net (184,696) (2,173,852) (287,857)
(Increase) Decrease in receivable for interest 52,175 (162,836) 625,614
(Increase) Decrease in receivable for investments sold 10,000 409,722 (170,000)
(Increase) Decrease in receivable for variation margin on futures
contracts -- -- 128,250
(Increase) Decrease in other assets (69,789) (42,103) 697
Increase (Decrease) in payable for investments purchased (1,746,563) -- 368,878
Increase (Decrease) in payable for Preferred share dividends (47,954) (13,639) N/A
Increase (Decrease) in accrued interest on borrowings -- -- (185,517)
Increase (Decrease) in accrued management fees 3,434 6,472 (16,465)
Increase (Decrease) in accrued other liabilities (117,589) (39,954) 14,039
Net realized (gain) loss from investments 2,095,466 7,360,519 22,239,402
Net realized (gain) loss from forward swaps -- 4,125,000 --
Net realized (gain) loss from futures -- -- 1,836,946
Change in net unrealized (appreciation) depreciation of investments (40,883,496) (31,238,396) (19,093,388)
Change in net unrealized (appreciation) depreciation of forward swaps -- (3,882,335) (590,237)
Taxes paid on undistributed capital gains (4,652) -- (88)
-------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 18,062,697 15,682,837 23,458,404
-------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- -- (9,539,448)
Increase (Decrease) in floating rate obligations 13,145,000 (9,835,000) --
Increase (Decrease) in borrowings -- -- (5,000,000)
Cash distributions paid to Common shareholders (14,566,935) (6,901,305) (6,812,300)
Increase (Decrease) in accrued offering costs -- -- (472,500)
Cost of Common shares repurchased -- (165,375) --
Increase (Decrease) in Preferred shares (18,750,000) -- N/A
-------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (20,171,935) (16,901,680) (21,824,248)
-------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (2,109,238) (1,218,843) 1,634,156
Cash at the beginning of period 5,648,301 3,119,039 --
-------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 3,539,063 $ 1,900,196 $ 1,634,156
=========================================================================================================================
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
six months ended April 30, 2009.
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid by Investment Quality (NQM), Premier Income (NPF) and High Income
Opportunity 2 (NMD) for interest was $402,378, $247,882 and $388,481,
respectively.
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $0, $0 and $813,135, for Investment Quality (NQM),
Premier Income (NPF) and High Income Opportunity 2 (NMD), respectively.
See accompanying notes to financial statements.
Nuveen Investments 87
| Notes to FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM),
Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income
Municipal Fund, Inc. (NQU), Nuveen Premier Municipal Income Fund, Inc. (NPF),
Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal High
Income Opportunity Fund 2 (NMD) (collectively, the "Funds"). Common shares of
Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU), Premier
Income (NPF) and High Income Opportunity 2 (NMD) are traded on the New York
Stock Exchange while Common shares of High Income Opportunity (NMZ) are traded
on the NYSE Amex (formerly, American Stock Exchange). The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end, management
investment companies.
Prior to the commencement of operations, High Income Opportunity 2 (NMD) had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Asset Management (the "Adviser"), a
wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and the
recording of the organization expenses ($11,000) and their reimbursement by
Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a portfolio of municipal obligations issued by state
and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. Futures contracts are
valued using the closing settlement price, or, in the absence of such a price,
at the mean of the bid and asked prices. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2009, there were
no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
88 Nuveen Investments
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Preferred Shares
High Income Opportunity 2 (NMD) did not issue Preferred shares during the six
months ended April 30, 2009. 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 more than one
Series. The dividend rate paid by the Funds on each Series is determined every
seven days, pursuant to a dutch auction process overseen by the auction agent,
and is payable at the end of each rate period. As of April 30, 2009, the number
of Preferred shares outstanding, by Series and in total, for each Fund is as
follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
---------------------------------------------------------------------------------------------
Number of shares:
Series M 1,750 1,849 2,678 769 1,826
Series T 1,750 1,849 2,680 2,153 987
Series W 1,749 2,589 2,679 -- 987
Series W2 -- -- 1,857 -- --
Series TH 1,429 1,442 3,571 2,152 --
Series F 1,750 2,588 2,679 -- --
---------------------------------------------------------------------------------------------
Total 8,428 10,317 16,144 5,074 3,800
=============================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
Nuveen Investments 89
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one implication of these auction
failures for Common shareholders is that the Funds' cost of leverage will likely
be higher, at least temporarily, than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may be lower then they otherwise would have been. As of April 30, 2009,
the aggregate amount of outstanding Preferred shares redeemed by each Fund is as
follows:
HIGH
INVESTMENT SELECT QUALITY PREMIER INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
---------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 90,300,000 $ 21,075,000 $ 48,400,000 $ 38,150,000 $ 60,000,000
===========================================================================================================================
Organization and Offering Costs
Nuveen Investments, LLC has agreed to reimburse all organizational costs
(approximately $11,000) and pay all Common share offering costs (other than the
sales load) that exceed $.03 per Common share of High Income Opportunity Fund 2
(NMD). High Income Opportunity Fund 2's (NMD) share of Common share offering
costs ($472,500) were recorded as reductions of the proceeds from the sale of
Common shares.
Common Shares Shelf Offering
On April 1, 2009, a registration statement filed with the Securities and
Exchange Commission by High Income Opportunity (NMZ) became effective. This
registration statement enables the Fund to issue up to 1,900,000 additional
shares of common stock through an ongoing shelf offering. Under this equity
shelf program, the Fund, subject to market conditions, may raise additional
equity capital from time to time in varying amounts and offering methods at a
net price at or above the Fund's NAV per common share. During the period ended
April 30, 2009, High Income Opportunity (NMZ) cumulatively issued 58,508 shares
at an average price of $9.98 and an average premium to NAV of 13.60% per common
share.
Shelf Offering Costs
Costs incurred by High Income Opportunity (NMZ) in connection with the offering
of its additional Common shares are recorded as a deferred charge which are
amortized over the period such additional Common shares are sold not to exceed
the one-year life of the shelf offering period.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse
90 Nuveen Investments
floater"). The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities." In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as
"(UB) - Underlying bond of an inverse floating rate trust," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and the related interest paid to the holders of the short-term
floating rate certificates is included as a component of "Interest expense" on
the Statement of Operations.
During the six months ended April 30, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At April 30, 2009, each Fund's maximum exposure to externally-deposited Recourse
Trusts, is as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
--------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ 18,750,000 $ 7,500,000 $ 14,608,400 $ -- $ 22,250,000
================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2009, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
-----------------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 72,720,840 $ 11,869,475 $ 43,806,017 $ 45,713,066 $ 10,300,000
Average annual interest rate and fees 1.12% 1.17% 1.12% 1.09% 0.95%
=================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. Premier Income (NPF),
High Income Opportunity (NMZ) and High Income Opportunity 2 (NMD) invested in
forward interest rate swap transactions during the six months ended April 30,
2009.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
Nuveen Investments 91
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized in
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin when
applicable. High Income Opportunity (NMZ) and High Income Opportunity 2 (NMD)
invested in futures contracts during the six months ended April 30, 2009.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Market and Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (credit risk). Similar to credit risk, each Fund may be
exposed to counterparty risk, or the risk that an institution or other entity
with which the Fund has unsettled or open transactions will default. The
potential loss could exceed the value of the financial assets recorded on the
financial statements. Financial assets, which potentially expose each Fund to
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to credit and
counterparty risks in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage credit risk by entering into agreements only with
counterparties the Adviser believes have the financial resources to honor their
obligations and by having the Adviser monitor the financial stability of the
counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the
Funds as collateral with a value approximately equal to the amount of the
unrealized loss above a pre-determined threshold. Collateral pledges are
monitored and subsequently adjusted if and when the valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
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.
92 Nuveen Investments
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of April 30, 2009:
INVESTMENT QUALITY INCOME (NQM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------
Investments $ -- $ 762,538,405 $ -- $ 762,538,405
=============================================================================================
SELECT QUALITY (NQS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------
Investments $ -- $ 705,617,812 $ -- $ 705,617,812
=============================================================================================
QUALITY INCOME (NQU) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------
Investments $ -- $ 1,165,267,239 $ -- $ 1,165,267,239
=============================================================================================
PREMIER INCOME (NPF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------
Investments $ -- $ 420,159,010 $ -- $ 420,159,010
=============================================================================================
HIGH INCOME OPPORTUNITY (NMZ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------
Investments $ -- $ 312,644,854 $ -- $ 312,644,854
Derivatives* -- 529,980 -- 529,980
---------------------------------------------------------------------------------------------
Total $ -- $ 313,174,834 $ -- $ 313,174,834
=============================================================================================
HIGH INCOME OPPORTUNITY 2 (NMD) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------
Investments $ -- $ 169,779,661 $ -- $ 169,779,661
Derivatives* -- 590,237 -- 590,237
---------------------------------------------------------------------------------------------
Total $ -- $ 170,369,898 $ -- $ 170,369,898
=============================================================================================
* Represents net unrealized appreciation (depreciation). Derivatives include
outstanding forwards, futures and swap contracts, where applicable. See
Investments in Derivatives within the Fund's Portfolio of Investments for
derivatives outstanding at the end of the reporting period.
Nuveen Investments 93
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
3. FUND SHARES
Common Shares
The Funds' Board of Directors/Trustees approved an open-market share repurchase
program on July 10, 2007, for Premium Income (NPF) and on July 30, 2008, for
Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU), High
Income Opportunity (NMZ) and High Income Opportunity 2 (NMD) under which each
Fund may repurchase an aggregate of up to approximately 10% of its outstanding
Common Shares.
Transactions in Common shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) QUALITY INCOME (NQU)
---------------------------- ---------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 4/30/09 10/31/08 ENDED 4/30/09 10/31/08 ENDED 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of
distributions -- -- -- 11,184 -- --
Repurchased -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- -- -- -- --
Discount per share repurchased -- -- -- -- -- --
==============================================================================================================================
HIGH HIGH
PREMIER INCOME (NPF) INCOME OPPORTUNITY (NMZ) INCOME OPPORTUNITY 2 (NMD)
---------------------------- ---------------------------- ------------------------------
FOR THE
PERIOD 11/15/07
(COMMENCEMENT
OF OPERATIONS)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS THROUGH
ENDED 4/30/09 10/31/08 ENDED 4/30/09 10/31/08 ENDED 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
Common shares:
Sold* -- -- -- -- -- 15,750,000
Sold through shelf offering** -- -- 58,508 297,054 -- --
Issued to shareholders due to
reinvestment of
distributions -- -- 33,838 48,248 93,860 96,739
Repurchased (15,700) (4,500) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
(15,700) (4,500) 92,346 345,302 93,860 15,846,739
==============================================================================================================================
Weighted average Common share:
Price per share repurchased 10.51 12.69 -- -- -- --
Discount per share repurchased 17.21% 12.99% -- -- -- --
Premium per shelf offering
share sold -- -- 13.60% 4.99% -- --
==============================================================================================================================
* High Income Opportunity 2 (NMD) was the only Fund to sell shares of Common
stock during the fiscal year ended October 31, 2008.
** High Income Opportunity (NMZ) is the only Fund authorized to issue
additional shares of its Common stock through a shelf offering.
94 Nuveen Investments
Preferred Shares
High Income Opportunity 2 (NMD) did not issue Preferred shares during the period
November 15, 2007 (commencement of operations) through April 30, 2009.
Transactions in Preferred shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
------------------------------------------------ -------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 4/30/09 10/31/08 ENDED 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series M 156 $ 3,900,000 594 $ 14,850,000 69 $ 1,725,000 82 $ 2,050,000
Series T 156 3,900,000 594 14,850,000 69 1,725,000 82 2,050,000
Series W 156 3,900,000 595 14,875,000 97 2,425,000 114 2,850,000
Series TH 126 3,150,000 485 12,125,000 54 1,350,000 64 1,600,000
Series F 156 3,900,000 594 14,850,000 97 2,425,000 115 2,875,000
------------------------------------------------------------------------------------------------------------------------------
Total 750 $ 18,750,000 2,862 $ 71,550,000 386 $ 9,650,000 457 $ 11,425,000
==============================================================================================================================
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
------------------------------------------------ -------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 4/30/09 10/31/08 ENDED 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series M 85 $ 2,125,000 237 $ 5,925,000 -- $ -- 231 $ 5,775,000
Series T 84 2,100,000 236 5,900,000 -- -- 647 16,175,000
Series W 85 2,125,000 236 5,900,000 -- -- -- --
Series W2 59 1,475,000 164 4,100,000 -- -- -- --
Series TH 113 2,825,000 316 7,900,000 -- -- 648 16,200,000
Series F 85 2,125,000 236 5,900,000 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total 511 $ 12,775,000 1,425 $ 35,625,000 -- $ -- 1,526 $ 38,150,000
==============================================================================================================================
HIGH INCOME OPPORTUNITY (NMZ)
----------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED 4/30/09 10/31/08
---------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------
Preferred shares redeemed and/or
noticed for redemption:
Series M 864 $ 21,600,000 310 $ 7,750,000
Series T 468 11,700,000 145 3,625,000
Series W 468 11,700,000 145 3,625,000
---------------------------------------------------------------------------------------------
Total 1,800 $ 45,000,000 600 $ 15,000,000
=============================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2009, were as
follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
---------------------------------------------------------------------------------------------------------------------------
Purchases $ 25,769,868 $ 17,950,970 $ 64,251,950 $ 19,970,946 $ 32,967,859 $ 39,773,751
Sales and maturities 28,188,473 22,778,798 69,485,686 23,612,910 98,396,623 57,716,503
===========================================================================================================================
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No.140, if any. To the extent that differences
arise that are permanent in nature, such amounts are reclassified within the
capital accounts on the Statement of Assets and Liabilities presented in the
annual report, based on their federal tax basis treatment; temporary differences
do not require reclassification. Temporary and permanent differences do not
impact the net asset values of the Funds.
Nuveen Investments 95
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
At April 30, 2009, the cost of investments was as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 699,161,100 $ 722,114,360 $1,124,719,311 $ 381,534,068 $ 379,060,833 $ 228,347,208
====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2009, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 33,869,070 $ 26,643,481 $ 61,098,371 $ 16,674,580 $ 11,657,691 $ 2,279,442
Depreciation (55,868,210) (62,378,583) (74,425,549) (21,050,307) (88,374,545) (60,846,989)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ (21,999,140) $ (35,735,102) $ (13,327,178) $ (4,375,727) $ (76,716,854) $ (58,567,547)
====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2008, the Funds' last tax year
end, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 328,574 $ 733,623 $ 2,110,016 $ 53,378 $ 2,110,031 $ 2,712,540
Undistributed net ordinary income ** 101,745 77,105 -- -- 1,153,312 566
Undistributed net long-term capital
gains 1,470,419 -- -- -- -- --
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2008, paid on November 3, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2008 was designated for purposes of the dividends paid deduction as
follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)*
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $ 37,735,721 $ 37,664,043 $ 55,938,511 $ 19,090,394 $ 28,742,490 $ 11,191,457
Distributions from net ordinary
income ** 202,710 -- -- -- 87,468 --
Distributions from net long-term
capital gains -- -- -- -- 2,667,895 --
====================================================================================================================================
* For the period November 15, 2007 (commencement of operations) through
October 31, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
96 Nuveen Investments
At October 31, 2008, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQS) (NQU) (NPF) (NMZ) (NMD)
-----------------------------------------------------------------------------------------------
Expiration:
October 31, 2011 $ -- $ 9,667,686 $ -- $ -- $ --
October 31, 2013 -- -- 156,322 -- --
October 31, 2014 1,047,056 -- -- -- --
October 31, 2016 355,308 -- 3,445,683 12,880,924 4,564,842
-----------------------------------------------------------------------------------------------
Total $ 1,402,364 $ 9,667,686 $ 3,602,005 $ 12,880,924 $ 4,564,842
===============================================================================================
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
QUALITY INCOME (NQU)
PREMIER INCOME (NPF)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
HIGH INCOME OPPORTUNITY (NMZ)
HIGH INCOME OPPORTUNITY FUND 2 (NMD)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For net assets over $2 billion .4750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of April 30, 2009, the complex-level fee rate was .1998%.
Nuveen Investments 97
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets includes assets managed by the
Adviser that are attributable to each fund's use of financial leverage.
For these purposes, financial leverage includes the funds' use of
preferred stock and borrowings and investments in the residual interest
certificates (also called inverse floating rate securities) in tender
option bond (TOB) trusts, including the portion of assets held by the TOB
trust that has been effectively financed by the trust's issuance of
floating rate securities, subject to an agreement by the Adviser to limit
the amount of such assets for determining managed net assets in certain
circumstances.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first eight years of High Income Opportunity's (NMZ) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (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
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2003* .32% 2009 .24%
2004 .32 2010 .16
2005 .32 2011 .08
2006 .32
2007 .32
2008 .32
================================================================================
* From the commencement of operations.
98 Nuveen Investments
The Adviser has not agreed to reimburse High Income Opportunity (NMZ) for any
portion of its fees and expenses beyond November 30, 2011.
The Adviser has agreed to waive 100% of High Income Opportunity 2's (NMD)
management fee from November 15, 2007 (commencement of operations) through
February 29, 2008, 50% of the management fee for the period March 1, 2008
through May 31, 2008, and 25% of the management fee for the period June 1, 2008
through August 31, 2008. The Adviser has not agreed to waive any portion of High
Income Opportunity 2's (NMD) management fee beyond August 31, 2008.
During the six months ended April 30, 2009, Nuveen Investments, LLC received
commissions of $3,504 related to the sale of Common shares as a result of the
High Income Opportunity (NMZ) shelf offering.
7. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161)
In March 2008, the FASB issued SFAS No. 161, "Disclosures
about Derivative Instruments and Hedging Activities." This standard is intended
to enhance financial statement disclosures for derivative instruments and
hedging activities and enable investors to understand: a) how and why a fund
uses derivative instruments, b) how derivative instruments and related hedge
items are accounted for, and c) how derivative instruments and related hedge
items affect a fund's financial position, results of operations and cash flows.
SFAS No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2009,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4)
On April 9, 2009, the Financial Accounting Standards Board issued FSP No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly." FSP No. 157-4 provides additional guidance for estimating fair value
in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and
level of activity for the asset or liability have significantly decreased. FSP
No. 157-4 also requires additional disaggregation of the current SFAS No. 157
required disclosures. FSP No. 157-4 is effective for interim and annual
reporting periods ending after June 15, 2009, and shall be applied
prospectively. At this time, management is evaluating the implications of FSP
No. 157-4 and the impact it will have on the financial statement disclosures.
8. BORROWINGS
During January 2008, credit issues associated with sub-prime mortgages and
municipal bond insurers caused High Income Opportunity 2 (NMD) to postpone its
preferred shares offering, and subsequent failed auctions of the preferred
shares issued by other closed-end funds have postponed the issuance of the
Fund's preferred shares indefinitely. Management determined that leveraging the
Fund with debt as a replacement for preferred shares continued to benefit the
Funds' shareholders. During 2008 the Fund entered into a $50 million senior
committed secured 364-day revolving line of credit with the custodian bank.
Amounts drawn on the line are recognized as "Borrowings" on the Statement of
Assets and Liabilities.
For the six months ended April 30, 2009, the average daily balance outstanding
on borrowings and average interest rate was $39,613,260 and 1.03%, respectively.
Interest on the revolving line of credit was calculated at a rate per annum of
the Federal Funds Rate plus .75%. Interest expense incurred on such borrowings
is included as a component of "Interest expense" on the Statement of Operations.
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2009, to shareholders of record on
May 15, 2009, as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
-------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0635 $ .0740 $ .0685 $ .0630 $ .0835 $ .0800
===================================================================================================================
Nuveen Investments 99
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
Auction Participation Fees
Effective May 1, 2009, auction participation fees for Nuveen Preferred shares
with respect to auctions that have failed have been reduced from 25 bps
(annualized) to 15 bps (annualized). All auction participants have signed new
agreements incorporating this change.
Shelf Offering
On May 29, 2009, High Income Opportunity Fund 2 (NMD) filed with the Securities
and Exchange Commission (SEC) a registration statement seeking to register
additional shares of common stock. This registration statement, if declared
effective by the SEC, would enable the Fund to issue to the public additional
common shares in an amount up to ten percent of the Fund's currently issued and
outstanding common shares through an ongoing shelf offering. Under this equity
shelf program, the Fund, subject to market conditions, may raise additional
equity capital from time to time in varying amounts and offering methods at a
net price at or above the Fund's NAV per common share.
100 Nuveen Investments
| Financial HIGHLIGHTS (Unaudited)
Nuveen Investments 101
| Financial HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
-----------------------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 12.18 $ .50 $ 1.09 $ (.03) $ (.01) $ 1.55
2008 15.03 1.01 (2.80) (.29) -- (2.08)
2007 15.71 1.02 (.60) (.30) -- .12
2006 15.49 1.05 .42 (.24) (.03) 1.20
2005 16.06 1.05 (.39) (.16) (.01) .49
2004 15.65 1.07 .43 (.08) -- 1.42
SELECT QUALITY (NQS)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 12.01 .55 .74 (.04) -- 1.25
2008 15.05 1.08 (3.02) (.30) -- (2.24)
2007 15.62 1.07 (.52) (.29) -- .26
2006 15.46 1.07 .23 (.26) -- 1.04
2005 15.69 1.06 (.16) (.16) -- .74
2004 15.33 1.09 .42 (.07) (.01) 1.43
=================================================================================================================
Less Distributions
-------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
------------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.38) $ (.03) $ (.41) $ -- $ 13.32 $ 12.30
2008 (.77) -- (.77) -- 12.18 10.64
2007 (.80) -- (.80) -- 15.03 13.88
2006 (.84) (.14) (.98) -- 15.71 15.60
2005 (.96) (.10) (1.06) -- 15.49 14.45
2004 (1.01) -- (1.01) -- 16.06 15.33
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) (.40) -- (.40) -- 12.86 12.22
2008 (.80) -- (.80) -- 12.01 10.99
2007 (.83) -- (.83) -- 15.05 15.00
2006 (.88) -- (.88) -- 15.62 15.47
2005 (.97) -- (.97) -- 15.46 14.83
2004 (1.00) (.07) (1.07) -- 15.69 15.19
======================================================================================================
Preferred Shares at End of Period
-------------------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-----------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 210,700 $ 25,000 $ 81,616
2008 229,450 25,000 72,545
2007 301,000 25,000 69,706
2006 301,000 25,000 71,634
2005 301,000 25,000 71,001
2004 301,000 25,000 72,688
SELECT QUALITY (NQS)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 257,925 25,000 67,407
2008 267,575 25,000 63,171
2007 279,000 25,000 70,849
2006 279,000 25,000 72,491
2005 279,000 25,000 71,953
2004 279,000 25,000 72,643
===================================================================================
102 Nuveen Investments
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement/Refund
----------------------- ------------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 19.76% 12.92% $ 477,162 1.38%*** 1.20%*** 8.00%***
2008 (18.72) (14.43) 436,370 1.46 1.20 7.07
2007 (6.17) .82 538,266 1.35 1.19 6.67
2006 15.33 8.09 561,471 1.20 1.20 6.79
2005 1.17 3.10 553,857 1.20 1.20 6.59
2004 8.54 9.37 574,164 1.20 1.20 6.78
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 15.22 10.63 437,514 1.36*** 1.33*** 9.03***
2008 (22.19) (15.50) 408,541 1.27 1.22 7.54
2007 2.31 1.70 511,670 1.21 1.18 6.95
2006 10.47 6.94 529,996 1.18 1.18 6.91
2005 4.14 4.77 523,994 1.18 1.18 6.76
2004 10.19 9.64 531,694 1.21 1.21 6.96
=========================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement/Refund**
---------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.37%*** 1.19%*** 8.01%*** 4%
2008 1.44 1.18 7.10 9
2007 1.33 1.17 6.69 11
2006 1.17 1.17 6.82 10
2005 1.18 1.18 6.61 22
2004 1.20 1.20 6.79 16
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.35*** 1.32*** 9.04*** 3
2008 1.24 1.20 7.56 10
2007 1.20 1.17 6.96 8
2006 1.17 1.17 6.93 5
2005 1.16 1.16 6.78 4
2004 1.15 1.15 7.02 4
==================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation.
Total returns are not annualized. Total Return Based on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Annualized.
+ 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.
(a) Interest expense arises from Fund borrowings and the application of SFAS
No. 140 to certain inverse floating rate transactions entered into by the
Fund as more fully described in Footnote 1 - Inverse Floating Rate
Securities.
(b) For the six months ended April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 103
| Financial HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
--------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
------------------------------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 12.68 $ .52 $ .61 $ (.04) $ -- $ 1.09
2008 14.94 1.03 (2.26) (.30) -- (1.53)
2007 15.49 1.01 (.51) (.30) -- .20
2006 15.26 1.01 .30 (.26) -- 1.05
2005 15.54 1.02 (.22) (.16) -- .64
2004 15.04 1.04 .51 (.08) -- 1.47
PREMIER INCOME (NPF)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 11.68 .48 1.19 (.03) -- 1.64
2008 14.79 .94 (3.09) (.28) -- (2.43)
2007 15.39 .95 (.59) (.29) -- .07
2006 14.90 .94 .51 (.26) -- 1.19
2005 15.53 .94 (.39) (.16) (.01) .38
2004 15.13 1.00 .47 (.08) -- 1.39
==================================================================================================================
Less Distributions
--------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
------------------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.38) $ -- $ (.38) $ -- $ 13.39 $ 12.70
2008 (.73) -- (.73) -- 12.68 11.67
2007 (.75) -- (.75) -- 14.94 13.64
2006 (.82) -- (.82) -- 15.49 14.73
2005 (.92) -- (.92) -- 15.26 14.34
2004 (.97) -- (.97) -- 15.54 14.58
PREMIER INCOME (NPF)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) (.35) -- (.35) -- 12.97 11.74
2008 (.68) -- (.68) -- 11.68 10.07
2007 (.67) -- (.67) -- 14.79 13.30
2006 (.70) -- (.70) -- 15.39 13.65
2005 (.88) (.13) (1.01) -- 14.90 13.57
2004 (.99) -- (.99) -- 15.53 14.43
======================================================================================================
Preferred Shares at End of Period
-------------------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-----------------------------------------------------------------------------------
QUALITY INCOME (NQU)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 403,600 $ 25,000 $ 69,978
2008 416,375 25,000 66,284
2007 452,000 25,000 69,806
2006 452,000 25,000 71,446
2005 452,000 25,000 70,745
2004 452,000 25,000 71,576
PREMIER INCOME (NPF)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 126,850 25,000 75,822
2008 126,850 25,000 70,825
2007 165,000 25,000 69,603
2006 165,000 25,000 71,839
2005 165,000 25,000 70,367
2004 165,000 25,000 72,271
===================================================================================
104 Nuveen Investments
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement/Refund
--------------------------- -----------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
----------------------------------------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 12.39% 8.75% $726,118 1.34%*** 1.27%*** 8.12%***
2008 (9.55) (10.67) 687,593 1.38 1.19 7.15
2007 (2.54) 1.31 810,086 1.38 1.17 6.65
2006 8.55 7.07 839,751 1.18 1.18 6.62
2005 4.78 4.15 827,077 1.18 1.18 6.57
2004 8.76 10.07 842,093 1.20 1.20 6.83
PREMIER INCOME (NPF)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 20.36 14.21 257,869 1.44*** 1.24*** 7.82***
2008 (19.97) (17.03) 232,517 1.78 1.23 6.74
2007 2.28 .48 294,378 1.84 1.20 6.30
2006 5.93 8.20 309,140 1.24 1.24 6.27
2005 1.05 2.49 299,423 1.23 1.23 6.16
2004 4.75 9.48 311,991 1.28 1.28 6.57
============================================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement/Refund**
-----------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
-------------------------------------------------------------------------------------------
QUALITY INCOME (NQU)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.33%*** 1.26%*** 8.13%*** 6%
2008 1.36 1.18 7.17 9
2007 1.37 1.16 6.66 5
2006 1.17 1.17 6.63 11
2005 1.17 1.17 6.57 6
2004 1.20 1.20 6.83 6
PREMIER INCOME (NPF)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 1.43*** 1.23*** 7.83*** 5
2008 1.76 1.21 6.75 7
2007 1.82 1.18 6.32 10
2006 1.23 1.23 6.28 35
2005 1.22 1.22 6.17 20
2004 1.27 1.27 6.58 22
===========================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation.
Total returns are not annualized. Total Return Based on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Annualized.
+ 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.
(a) Interest expense arises from Fund borrowings and the application of SFAS
No. 140 to certain inverse floating rate transactions entered into by the
Fund as more fully described in Footnote 1 - Inverse Floating Rate
Securities.
(b) For the six months ended April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 105
| Financial HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) $ 9.63 $ .53 $ (.56) $ (.03) $ -- $ (.06)
2008 15.36 1.29 (5.70) (.23) (.02) (4.66)
2007 16.00 1.23 (.65) (.24) --*** .34
2006 15.36 1.21 .65 (.19) -- 1.67
2005 14.87 1.22 .54 (.13) (.01) 1.62
2004(c) 14.33 .98 .71 (.08) -- 1.61
HIGH INCOME OPPORTUNITY 2 (NMD)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) 9.13 .46 (.31) N/A N/A .15
2008(d) 14.33 .89 (5.27) N/A N/A (4.38)
===========================================================================================================================
Less Distributions
----------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
-----------------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) $ (.54) $ -- $ (.54) $ --*** $ 9.03 $ 10.22
2008 (.98) (.09) (1.07) --*** 9.63 11.02
2007 (.98) --*** (.98) -- 15.36 15.82
2006 (1.04) -- (1.04) .01 16.00 17.25
2005 (1.07) (.06) (1.13) -- 15.36 15.99
2004(c) (.89) -- (.89) (.18) 14.87 15.04
HIGH INCOME OPPORTUNITY 2 (NMD)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) (.48) -- (.48) -- 8.80 9.80
2008(d) (.79) -- (.79) (.03) 9.13 10.04
=======================================================================================================================
Preferred Shares at End of Period Borrowings at End of Period
------------------------------------------ ------------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
--------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) $ 95,000 $ 25,000 $ 81,959 $ -- $ --
2008 155,000 25,000 62,117 -- --
2007 155,000 25,000 83,304 -- --
2006 155,000 25,000 85,113 -- --
2005 155,000 25,000 82,585 -- --
2004(c) 155,000 25,000 80,649 -- --
HIGH INCOME OPPORTUNITY 2 (NMD)
--------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) N/A N/A N/A 35,000 5,012
2008(d) N/A N/A N/A 40,000 4,619
==============================================================================================================
106 Nuveen Investments
Ratios/Supplemental Data
---------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement/Refund
-------------------------- ----------------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a)(b) Interest++(a) Income++
------------------------------------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) (1.71)% .73% $ 216,444 1.94%**** 1.89%**** 12.04%****
2008 (24.77) (32.63) 230,123 1.56 1.36 8.95
2007 (2.68) 2.14 361,484 1.50 1.28 7.31
2006 14.79 11.34 372,700 1.21 1.21 7.31
2005 14.35 11.20 357,025 1.20 1.20 7.54
2004(c) 6.49 10.38 345,023 1.15**** 1.15**** 6.75****
HIGH INCOME OPPORTUNITY 2 (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) 3.12 2.12 140,404 1.44**** 1.13**** 11.21****
2008(d) (28.82) (32.15) 144,745 1.19**** 1.19**** 6.69****
====================================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement/Refund**
------------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a)(b) Interest++(a) Income++ Rate
---------------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY (NMZ)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) 1.54%**** 1.49%**** 12.44%**** 10%
2008 1.08 .88 9.43 23
2007 1.04 .82 7.77 12
2006 .75 .75 7.77 9
2005 .74 .74 8.00 6
2004(c) .70**** .70**** 7.20**** 52
HIGH INCOME OPPORTUNITY 2 (NMD)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) 1.44**** 1.13**** 11.21**** 23
2008(d) .81**** .81**** 7.07**** 22
=========================================================================================================
N/A High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through April 30,
2009.
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from Fund borrowings and the application of SFAS
No. 140 to certain inverse floating rate transactions entered into by the
Fund as more fully described in Footnote 1 - Inverse Floating Rate
Securities.
(b) Each Ratio of Expenses to Average Net Assets Applicable to Common Shares
for High Income Opportunity 2 (NMD) includes the effect of the interest
expense paid on Fund borrowings as more fully described in Footnote 8 -
Borrowings as follows:
Ratios of Borrowings Interest Expense to
Average Net Assets Applicable to Common Shares
-----------------------------------------------------------------------------------------------------
HIGH INCOME OPPORTUNITY 2 (NMD)
-----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(e) .31%****
2008(d) .30****
=====================================================================================================
(c) For the period November 19, 2003 (commencement of operations) through
October 31, 2004.
(d) For the period November 15, 2007 (commencement of operations) through
October 31, 2008.
(e) For the six months ended April 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 107
REINVEST AUTOMATICALLY EASILY AND CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued
108 Nuveen Investments
by the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 109
GLOSSARY OF TERMS USED IN THIS REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
invest- ment'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 divi- dends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short- term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportion- ately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
110 Nuveen Investments
o 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 dura- tion
of the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 111
Notes
112 Nuveen Investments
Notes
Nuveen Investments 113
Notes
114 Nuveen Investments
OTHER USEFUL INFORMATION
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON PREFERRED
SHARES SHARES
FUND REPURCHASED REDEEMED
--------------------------------------------------------------------------------
NQM -- 750
NQS -- 386
NQU -- 511
NPF 15,700 --
NMZ -- 1,800
NMD -- N/A
--------------------------------------------------------------------------------
N/A - NMD is not authorized to issue Preferred shares.
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 115
NUVEEN INVESTMENTS:
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $115 billion of
assets on March 31, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
It's not what you earn,
it's what you keep.(R)
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-C-0409D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
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: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Municipal High Income Opportunity Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: July 8, 2009
-------------------------------------------------------------------
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: July 8, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 8, 2009
-------------------------------------------------------------------