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
---------------------
Nuveen Municipal High Income Opportunity Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: October 31, 2008
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Annual Report | Nuveen Investments
October 31, 2008 | Municipal Closed-End Funds
Photo of: Small child
NUVEEN INVESTMENT
QUALITY MUNICIPAL
FUND, INC.
NQM
NUVEEN SELECT
QUALITY MUNICIPAL
FUND, INC.
NQS
NUVEEN QUALITY
INCOME MUNICIPAL
FUND, INC.
NQU
NUVEEN PREMIER
MUNICIPAL INCOME
FUND, INC.
NPF
NUVEEN MUNICIPAL
HIGH INCOME
OPPORTUNITY FUND
NMZ
NUVEEN MUNICIPAL
HIGH INCOME
OPPORTUNITY FUND 2
NMD
| [LOGO]
It's not what you earn, it's what you keep.(R) | NUVEEN
| Investments
Photo of: Man working on computer
Life is complex.
Nuveen
makes things
e-simple.
--------------------------------------------------
It only takes a minute to sign up for e-Reports.
Once enrolled, you'll receive an e-mail as
soon as your Nuveen Investments Fund
information is ready--no more waiting for delivery
by regular mail. Just click on the link within
the e-mail to see the report and save it on your
computer if you wish.
Free e-Reports right to your e-mail!
--------------------------------------------------------------------------------
www.investordelivery.com | www.nuveen.com/accountaccess
If you receive your Nuveen Fund | If you receive your Nuveen Fund
dividends and statements from your OR dividends and statements directly
financial advisor or brokerage account. | from Nuveen.
|
--------------------------------------------------------------------------------
[LOGO]
NUVEEN
Investments
Photo of: Robert P. Bremner
Chairman's
LETTER TO SHAREHOLDERS
| Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I'd like to use my initial letter to you to accomplish several things. First, I
want to report that after fourteen years of service on your Fund's Board,
including the last twelve as chairman, Tim Schwertfeger retired from the Board
in June. The Board has elected me to replace him as the chairman, the first time
this role has been filled by someone who is not an employee of Nuveen
Investments. Electing an independent chairman marks a significant milestone in
the management of your Fund, and it aligns us with what is now considered a
"best practice" in the fund industry. Further, it demonstrates the independence
with which your Board has always acted on your behalf.
Following Tim will not be easy. During my eleven previous years on the Nuveen
Fund Board, I found that Tim always set a very high standard by combining
insightful industry and market knowledge and sound, clear judgment. While the
Board will miss his wise counsel, I am certain we will retain the primary
commitment Tim shared with all of us - an unceasing dedication to creating and
retaining value for Nuveen Fund shareholders. This focus on value over time is a
touchstone that I and all the other Board members will continue to use when
making decisions on your behalf.
Second, I also want to report that we are very fortunate to welcome two new
Board members to our team. John Amboian, the current chairman and CEO of Nuveen
Investments, has replaced Tim as Nuveen's representative on the Board. John's
presence will allow the independent Board members to benefit not only from his
leadership role at Nuveen but also his broad understanding of the fund industry
and Nuveen's role within it. We also added Terry Toth as an independent
director. A former CEO of the Northern Trust Company's asset management group,
Terry will bring extensive experience in the fund industry to our deliberations.
Third, on behalf of the entire Board, I would like you to know that we are
closely monitoring the unprecedented market developments and their distressing
impact on the Funds. We believe that these Funds continue to be actively and
constructively managed for the long term and at the same time we are very aware
that these are trying times for our investors. We appreciate the patience you
have shown with the Board and with Nuveen Investments as they manage your
investment through this extremely difficult period.
Fourth, again on behalf of the entire Board, I would like to acknowledge the
effort the whole Nuveen organization is making to resolve the auction rate
preferred share situation in a satisfactory manner. As you know, we are actively
pursuing a number of possible 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've worked through the many difficulties involved.
Finally, I urge you to take the time to review the Portfolio Managers' Comments,
the Common Share Dividend and Share Price Information, and the Performance
Overview sections of this report. All of us are grateful that you have chosen
Nuveen Investments as a partner as you pursue your financial goals, and, on
behalf of myself and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
December 23, 2008
Portfolio Managers' COMMENTS
--------------------------------------------------------------------------------
| NQM, NQS, NQU,
Nuveen Investments Municipal Closed-End Funds | NPF, NMZ, NMD
Portfolio managers Paul Brennan, Tom Spalding, John Miller, and Johnathan
Wilhelm discuss U.S. economic and municipal market conditions, key investment
strategies, and the twelvemonth performance of these six national Funds. With
nineteen years of industry experience, including eleven years at Nuveen, Paul
assumed portfolio management responsibility for NQM and NPF in 2006. A
thirty-two-year veteran of Nuveen, Tom has managed NQS and NQU since 2003. John,
who has fifteen years of municipal market experience, has managed NMZ and NMD
since their inceptions in 2003 and November 2007, respectively. Johnathan, who
came to Nuveen in 2001 with eighteen years of industry experience, joined John
as co-portfolio manager for NMZ and NMD in 2007.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2008?
During this period, stress in the financial and credit markets led to increased
price volatility for many securities, reduced liquidity and a general flight to
quality. The Federal Reserve (Fed) began in September 2007 a series of interest
rate cuts that lowered the fed funds rate by 325 basis points--from 5.25% to
2.00%--over an eight-month period ending April 2008. In October 2008, the Fed
announced two additional reductions of 50 basis points each, bringing the fed
funds rate to 1.00%, its lowest level since 2003. (On December 16, after the end
of this twelve-month period, the Fed reduced the fed funds rate target to
0.25%.)
The Fed's rate-cutting actions also were a response to concerns about the pace
of U.S. economic growth, as measured by the U.S. gross domestic product (GDP).
After declining at an annual rate of 0.2% in the fourth quarter of 2007, GDP
improved to a positive 0.9% in the first quarter of 2008 and posted growth of
2.8% in the second quarter of 2008 (all GDP numbers annualized). During the
third quarter of 2008, however, GDP contracted at an annual rate of 0.5%, the
biggest decrease since 2001, mainly as the result of the first decline in
consumer spending since 1991 and an 18% drop in residential investment. The
Consumer Price Index (CPI), driven largely by increased energy, food and
transportation prices, registered a 3.7% year-over-year gain as of October 2008,
while the core CPI (which excludes food and energy) rose 2.2% over this same
period, above the Fed's unofficial target of 2.0% or lower. In the labor
markets, October 2008 marked the tenth consecutive month of job losses. The
national unemployment rate for October 2008 was 6.5%, its highest point in more
than fourteen years, up from 4.8% in October 2007.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio managers as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
----
4
----
In the municipal bond market, performance was significantly impacted by concerns
about the credit markets, downgrades of municipal bond insurers, the freeze-up
of the auction rate market, and institutional investors' need to unwind various
leveraging strategies. These events created surges of selling pressure, most
recently in late September and early October 2008. While some investors
curtailed purchases, non-traditional buyers of municipal bonds such as hedge
funds, traditional buyers such as tax-exempt money market funds, and muni market
broker/dealers were forced to sell holdings of longer-maturity bonds into a
market already experiencing reduced liquidity.
Combined with the Fed rate cuts, this selling produced a sharp steepening of the
municipal yield curve, as longer-term interest rates rose and short-term rates
declined over this period. In this environment, bonds with shorter maturities
generally outperformed longer maturity bonds, and higher quality bonds tended to
outperform lower quality credits.
Another item of note in the municipal market was the U.S. Supreme Court's May
2008 ruling that individual states could continue to offer their residents
special tax treatment on municipal bonds issued within their borders. The high
court's decision preserved tax rules in forty-two states, allowing them to
continue to exempt from taxation the income their residents earn on in-state
municipal bonds while taxing the income earned on municipal bonds issued in
other states.
Over the twelve months ended October 31, 2008, municipal bond issuance
nationwide totaled $450.3 billion, a drop of 8% from the previous twelve months.
The decrease during the month of October 2008 was more dramatic, with new
issuance down more than 50% from that of October 2007. In 2008, insured bonds
have comprised less than 20% of new supply, compared with the recent historical
figure of approximately 50%. While market conditions during this period impacted
the demand for municipal bonds, we continued to see demand from investors
attracted by higher interest rates and yields relative to taxable bonds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS?
During this twelve-month period, with the municipal market characterized by
volatility and a relatively steep yield curve, we sought to capitalize on a
turbulent environment by continuing to focus on relative value and investing for
the long term, preserving and enhancing liquidity, and managing duration(1)
risk.
As events in the general financial markets unfolded, we found attractive
opportunities in various sectors of the municipal market, using a fundamental
approach to find undervalued sectors and individual credits with the potential
to perform well over the long term. Among the bonds we added to some of the
portfolios during this period were health care and housing credits that we
believed were attractively priced and had good credit fundamentals.
(1) 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.
----
5
----
In NQM, NQS, NQU and NPF, portfolio activity also was driven by our efforts to
boost liquidity or cash reserves. Especially during the commotion of September
and October, we believed that it was prudent to take defensive measures that
would reduce the Funds' exposure to market risk. These measures included
pre-emptively selling some holdings and raising the Funds' cash reserves.
Throughout the period, we selectively sold holdings with shorter durations,
including pre-refunded(2) bonds. We also took advantage of strong bids to sell
bonds that were attractive to the retail market. Given the market environment,
retail demand was often strongest for higher credit quality bonds. At all times,
we were careful to balance our efforts to enhance liquidity through sales to the
retail market with our focus on maintaining the credit quality of our portfolios
in an uncertain market. Some of our new purchases also were funded by
reinvesting the proceeds from called or matured bonds.
In NMZ and NMD, which were established as high-yield Funds that can invest up to
50% of their portfolios in sub-investment-grade quality municipal credits, our
primary emphasis remained on bottom-up credit analysis and selection, which we
believe are critical in the high-yield segment of the market. During this
period, NMZ focused on purchasing higher quality bonds offering attractive
yields (one example being AA+ rated bonds issued by Duke University) and higher
coupon credits (such as those issued for the Lancaster County, South Carolina,
Edgewater II Improvement District). To fund these purchases, NMZ sold
pre-refunded bonds, reduced its exposure to the airline industry and reinvested
proceeds from bond calls.
Our management strategies for NMD, which was introduced in November 2007,
focused on the successful completion of the Fund's initial investment phase.
During the first half of this period, the Fund was fully invested and met or
exceeded all of its targeted objectives in terms of individual credit,
diversification and yield expectations. During the second half, we continued to
find opportunities to add health care and industrial development revenue bonds,
two sectors that we found attractive in the current market environment due to
their long-term value potential.
As a key dimension of risk management, we employed a disciplined approach to
duration positioning as an important component of our overall strategy. As part
of this approach, we used inverse floating rate securities(3), in all six of
these Funds. Inverse floaters typically provide the dual benefit of bringing the
Funds' durations closer to our strategic target and enhancing their
income-generation capabilities. NMZ and NMD also invested in certain types of
derivative instruments in an effort to shorten the duration of these Funds and
help us manage common share net asset value (NAV) volatility while trying to
minimize any negative impact on income streams or common share dividends over
the short term. As of October 31, 2008, we continued to use inverse floaters in
all of these Funds, and the derivatives remained in place in NPF, NMZ and NMD.
(2) Pre-refundings, also known as advance refundings or refinanc-ings, 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.
(3) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during this reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in this Report sections of this shareholder report.
----
6
----
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.
Annualized Total Returns on Common Share Net Asset Value
For periods ended 10/31/08
1-Year 5-Year 10-Year
NQM -14.43% 1.01% 3.42%
NQS -15.50% 1.09% 3.61%
NQU -10.67% 2.13% 3.90%
NPF -17.03% 0.24% 3.02%
Lipper General Leveraged
Municipal Debt Funds Average(4) -19.05% 0.29% 2.87%
Barclays Capital
Municipal Bond Index(5) -3.30% 2.73% 4.14%
S&P National
Municipal Bond Index(6) -4.15% 2.75% N/A
NMZ -32.63% N/A N/A
NMD(7) -32.15% N/A N/A
Lipper High-Yield
Municipal Debt Funds Average(4) -21.19% 0.88% 2.36%
Barclays Capital High-Yield
Municipal Bond Index(5) -18.93% 2.20% 3.23%
For the twelve months ended October 31, 2008, the total returns on common share
NAV for NQM, NQS, NQU and NPF exceeded the average return for the Lipper General
Leveraged Municipal Debt Funds Average. These four Funds underperformed the
Barclays Capital Municipal Bond Index and the Standard & Poor's (S&P) National
Municipal Bond Index for the same period. NMZ and NMD underperformed both the
Lipper High-Yield Municipal Debt Funds Average and the Barclays Capital
High-Yield Municipal Bond Index. NMD's results are based on a period of slightly
less than twelve months.
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: 1 year, 54 funds; 5 years, 52 funds; and 10 years, 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 fifteen closed-end funds in this category for the one-year period. 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 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 investment-grade U.S. municipal bond market.
(7) NMD's total return for the 1-year period represents the period from its
inception on November 15, 2007, through October 31, 2008; the twelve-month
returns for the Lipper High-Yield Municipal Debt Funds Average, Barclays
Capital High-Yield Municipal Bond Index, and S&P National Municipal Bond
Index represent the period November 1, 2007, through October 31, 2008.
----
7
----
Key management factors that influenced the Funds' returns included duration
positioning, the use of derivatives, credit exposure and sector allocations and
individual security selection. In addition, a major factor affecting each Fund's
performance over this period was the use of leverage. The impact of leverage is
discussed in more detail on page nine.
Given the changes in the interest rate environment during this period, bonds in
the Barclays Capital Municipal Bond Index with maturities of ten years or less
outperformed the market as a whole, with bonds maturing in one to six years
benefiting the most. Because they were less sensitive to interest rate changes,
these shorter bonds generally outperformed credits with longer maturities, with
the biggest losses posted by bonds with the longest maturities (twenty-two years
and longer). In general, the greater a Fund's exposure to the underperforming
longer part of the yield curve during this period, the greater the negative
impact on the Fund's return. Overall, NQU, which had relatively more exposure to
the outperforming shorter end of the yield curve, was better positioned in terms
of duration than NQM, NQS and NPF. Both NMZ and NMD had heavy exposure to bonds
with longer maturities, and NMD was also underweighted in bonds with the
shortest maturities (four years or less). This weighting, which is attributable
to opportunity and availability during the initial investment period, is
generally typical of a new Fund.
As mentioned earlier, NPF, NMZ and NMD used derivative positions throughout this
period to synthetically shorten duration and move the Funds closer to our
strategic duration target. Over this time, in contrast to historical trends, the
taxable markets and the municipal market moved in opposite directions. As a
result, the derivative positions used in NPF, NMZ and NMD, which reduced
duration in the outperforming taxable markets, detracted from the Funds'
performances.
In addition, the inverse floaters used by all six of these Funds generally had a
negative impact on performance. This resulted from the fact that the inverse
floaters effectively increased the Funds' exposure to longer maturity bonds at a
time when shorter maturities were in favor in the market.
Credit exposure, including exposure to bonds backed by municipal bond insurers,
also was a factor in performance during this period. Because risk-averse
investors generally sought higher quality investments as disruptions in the
financial markets deepened, bonds with higher credit quality ratings typically
performed very well. However, insured bonds with underlying credits that were
rated BBB or non-rated, originally purchased because of the higher yields they
offered, experienced a disproportionately negative impact (compared with bonds
with underlying credits rated AA or A) if the insurer backing the bond was
downgraded from AAA. As many investors avoided high-yield securities, bonds
rated BBB or below and non-rated bonds generally posted poor returns.
As of October 31, 2008, allocations of bonds rated BBB and lower and non-rated
bonds accounted for approximately 11% of NQU's portfolio, 13% of NQM, 14% of
----
8
----
NPF, and 16% of NQS. In addition to its 12% holding of bonds rated BBB, NMZ held
approximately 11% in bonds rated BB or lower (subinvestment-grade) and 46% in
non-rated bonds, some of which Nuveen has determined to be of investment-grade
quality. Similarly, NMD held 30% in bonds rated BBB, 14% in bonds rated BB or
lower, and 40% in non-rated bonds. The Funds' lower-rated credit exposure, which
was generally higher than that of the Barclays Capital Municipal Bond Index, was
a negative influence on the Funds' returns for this period. Conversely, the
Funds' holdings in bonds rated AAA were generally positive for performance.
Sectors of the market that generally helped the Funds' performances included
general obligation bonds, resource recovery, water and sewer and utilities.
Pre-refunded bonds, which are usually backed by U.S. Treasury securities, were
one of the top performing segments of the market, due primarily to their shorter
effective maturities, higher credit quality and perceived safety. Holdings of
pre-refunded bonds ranged from 14% to 41% among NQM, NQS, NQU and NPF, with NQU
having the heaviest weighting of pre-refunded issues and NPF the smallest. NMZ
held 13% of its portfolio in pre-refunded bonds, while NMD did not hold any of
these bonds, which is generally typical for a recently established Fund.
In general, bonds that carried any credit risk, regardless of sector, continued
to post weak performance. Revenue bonds as a whole, and the industrial
development revenue (IDR) sector in particular, underperformed the general
municipal market. Next to the IDR sector, zero coupon bonds were among the worst
performing categories, followed by the health care and housing sectors. Both NMZ
and NMD were overweighted in the IDR sector, which included bonds issued for
American Airlines and Continental Air Lines, as well as in the health care
sector.
Individual security selection was also a factor in the Funds' performances. NMD
benefited from its holdings of bonds issued for the Midland County, Michigan,
co-generation facility, which posted a positive return for this period. NMZ's
return was negatively impacted by two holdings that developed credit issues.
Pontiac Medical Center in Michigan declared bankruptcy and was closed following
declining performance; it subsequently was sold to a group of physicians. When
Alameda Power and Telecom in California was unable to refinance debt due in
2009, the municipal utility company put its cable division on the market, and
the company's bonds, reflecting the division's offering price, declined in
valuation.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors mentioned above, one of the primary factors
negatively impacting the annual returns of these Funds relative to those of the
unleveraged indexes was the Funds' use of financial leverage. (NMZ does not use
financial leverage). While leverage offers opportunities to generate additional
income and total returns for common shareholders, the benefits provided by
leveraging are influenced by the price movements of the bonds in each Fund's
portfolio. During this period, as yields on longer-term bonds rose and their
prices correspondingly fell, declining valuations had a
----
9
----
negative effect on performance that was magnified by the use of leverage. In
addition, at various points during the twelve-month period, the Funds' borrowing
costs were relatively high, negatively impacting their total returns.
RECENT DEVELOPMENTS IN THE MARKET ENVIRONMENT
Beginning in October, the nation's financial institutions and financial
markets--including the municipal bond market--experienced significant turmoil.
Reductions in demand decreased valuations of municipal bonds across all credit
ratings, especially those with lower credit ratings, and this generally reduced
the Funds' net asset values. The municipal market is one in which dealer firms
make markets in bonds on a principal basis using their proprietary capital, and
during the recent market turmoil these firms' capital was severely constrained.
As a result, some firms were unwilling to commit their capital to purchase and
to serve as a dealer for municipal bonds. This reduction in dealer involvement
in the market was accompanied by significant net selling pressure by investors,
particularly with respect to lower-rated municipal bonds, as institutional
investors generally removed money from the municipal bond market, at least in
part because of their need to reduce the leveraging of their municipal
investments. This de-leveraging was in part driven by the overall reduction in
the amount of financing available for such leverage, the increased costs of such
leverage financing, and the need to reduce leverage levels that had recently
increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further de-leveraging and a supply overhang as a large amount of new issues
were postponed would cause selling pressure to persist for a period of time. In
addition to falling prices, these market conditions resulted in greater price
volatility of municipal bonds; wider credit spreads (i.e., lower quality bonds
fell in price more than higher quality bonds); significantly reduced liquidity
(i.e., the ability to sell bonds at a price close to their carrying value),
particularly for lower quality bonds; and a lack of price transparency (i.e.,
the ability to accurately determine the price at which a bond would likely
trade). Reduced liquidity was most pronounced in mid-October, and although
liquidity improved considerably over ensuing weeks, it may reoccur if financial
turmoil persists or worsens.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
As mentioned earlier, another factor that had an impact on the performance of
these Funds was their position in bonds backed by municipal bond insurers that
experienced downgrades in their credit ratings. During the period covered by
this report, ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA (formerly XLCA)
experienced one or more rating reductions by at least one or more rating
agencies. Subsequent to the reporting period, AMBAC, MBIA and SYNCORA
experienced further rating reductions while AGC and FSA received their first
rating reductions by at least one rating agency. At the time this report was
prepared, at least one rating agency has placed each of these insurers except
AGC on "negative outlook" or "negative credit watch," which may presage one or
more rating reductions for such insurer or insurers in the
----
10
----
future. As concern increased about the balance sheets of these insurers, prices
on bonds insured by these companies - especially those bonds with weaker
underlying credits - declined, detracting from the Funds' performance. By the
end of this 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 not only between insured and uninsured
bonds, but also within the insured bond category. 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
Beginning in February 2008, more shares for sale were submitted 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 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.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which auctions have been failing for several months. This plan included an
initial phase of approximately $1 billion in forty-one Funds. During the
twelve-month reporting period, NQM, NQS, NQU, NPF and NMZ redeemed and/or
noticed for redemption $71,550,000, $11,425,000, $35,625,000, $38,150,000 and
$15,000,000 of their outstanding auction rate preferred shares, respectively, at
liquidation value, using the proceeds from the issuance of TOBs.
On August 7, 2008, four Nuveen municipal Funds (none of which are included in
this shareholder report) issued par redemption notices for all outstanding
shares of their auction rate preferred shares totaling $569.9 million. These
redemptions were achieved through the issuance of variable rate demand preferred
shares (VRDP) in conjunction with the proceeds from the creation of TOBs.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
-----
11
-----
Common Share
Dividend and Share Price
INFORMATION
--------------------------------------------------------------------------------
During the twelve-month period ended October 31, 2008, there was one dividend
increase in NQU, NPF, NMZ and NMD, while the dividend of NQS remained stable
throughout the reporting period. In NQM, the cost of leverage-related borrowing
remained higher than in the other Funds. This impacted the incremental income
available for dividends and led to one dividend cut in this Fund, effective June
2008.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NQM -- $0.0041
NMZ $0.0905 $0.0028
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of October 31, 2008, NMZ and
NMD had positive UNII balances for both tax and financial statement purposes,
while the remaining four Funds in this report had positive UNII balances for tax
purposes and negative UNII balances for financial statement purposes.
-----
12
-----
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 up to 10% of its common shares. As
of October 31, 2008, NPF had cumulatively repurchased 186,800 common shares,
representing approximately 0.9% of the Fund's' total common shares outstanding.
SHELF EQUITY PROGRAM
On September 24, 2007, a registration statement filed by NMZ became effective.
This registration statement permits the Fund to issue up to 2,400,000 of
additional shares of common stock through a 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 October 31, 2008,
NMZ cumulatively issued 494,165 shares at an average price of $15.89 and an
average premium to NAV of 4.64% per common share.
As of October 31, 2008, the Funds' common share prices were trading at premiums
or discounts to their common share NAVs as shown in the accompanying chart:
10/31/08 Twelve-Month Average
Premium/Discount Premium/Discount
NQM -12.64% -7.95%
NQS -8.49% -4.96%
NQU -7.97% -9.15%
NPF -13.78% -11.66%
NMZ +14.43% +7.41%
NMD +9.97% +3.13%
-----
13
-----
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 10.64
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.18
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -12.64%
--------------------------------------------------------------------------------
Market Yield 7.05%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.79%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 436,370
--------------------------------------------------------------------------------
Average Effective Maturity on
Securities (Years) 13.18
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.35
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 6/21/90)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year -18.72% -14.43%
--------------------------------------------------------------------------------
5-Year -0.69% 1.01%
--------------------------------------------------------------------------------
10-Year 2.67% 3.42%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
California 12.7%
--------------------------------------------------------------------------------
New York 10.6%
--------------------------------------------------------------------------------
Texas 10.1%
--------------------------------------------------------------------------------
Illinois 6.4%
--------------------------------------------------------------------------------
Minnesota 5.6%
--------------------------------------------------------------------------------
District of Columbia 4.5%
--------------------------------------------------------------------------------
Washington 4.2%
--------------------------------------------------------------------------------
Florida 3.2%
--------------------------------------------------------------------------------
Georgia 3.2%
--------------------------------------------------------------------------------
Nevada 2.8%
--------------------------------------------------------------------------------
Michigan 2.7%
--------------------------------------------------------------------------------
Louisiana 2.5%
--------------------------------------------------------------------------------
Wisconsin 2.4%
--------------------------------------------------------------------------------
Indiana 2.3%
--------------------------------------------------------------------------------
Massachusetts 2.2%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Colorado 1.8%
--------------------------------------------------------------------------------
South Carolina 1.7%
--------------------------------------------------------------------------------
Oklahoma 1.5%
--------------------------------------------------------------------------------
Nebraska 1.5%
--------------------------------------------------------------------------------
New Jersey 1.4%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 25.9%
--------------------------------------------------------------------------------
Health Care 13.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.9%
--------------------------------------------------------------------------------
Tax Obligation/General 11.7%
--------------------------------------------------------------------------------
Transportation 11.3%
--------------------------------------------------------------------------------
Water and Sewer 7.3%
--------------------------------------------------------------------------------
Utilities 5.5%
--------------------------------------------------------------------------------
Other 12.7%
--------------------------------------------------------------------------------
NQM | Nuveen Investment
Performance | Quality Municipal
OVERVIEW | Fund, Inc.
as of October 31, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 46%
AA 31%
A 10%
BBB 10%
BB or Lower 1%
N/R 2%
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
BAR CHART:
Nov $ 0.0645
Dec 0.0645
Jan 0.0645
Feb 0.0645
Mar 0.0645
Apr 0.0645
May 0.0645
Jun 0.0625
Jul 0.0625
Aug 0.0625
Sep 0.0625
Oct 0.0625
Common Share Price Performance -- Weekly Closing Price
LINE CHART:
11/01/07 $ 13.86
13.78
13.72
13.67
13.47
13.50
13.40
13.44
13.35
13.37
13.25
13.23
13.30
13.30
13.32
13.31
13.37
13.35
13.35
13.49
13.50
13.50
13.53
13.53
13.60
13.65
13.65
13.66
13.63
13.54
13.46
13.40
13.43
13.36
13.36
13.28
13.45
13.36
13.39
13.60
13.67
13.69
14.04
14.11
14.20
14.30
14.32
14.28
14.23
14.45
14.46
14.50
14.42
14.23
14.34
14.64
14.67
14.49
14.58
14.62
14.58
14.67
14.61
14.62
14.69
14.66
14.67
14.66
14.68
14.80
14.40
13.68
13.92
14.03
14.06
13.91
13.62
13.95
13.95
13.87
13.71
13.57
13.81
13.69
13.89
13.71
13.70
13.75
13.80
13.60
13.62
13.52
13.28
13.38
13.42
13.36
13.38
13.44
13.56
13.62
13.58
13.61
13.62
13.66
13.69
13.69
13.74
13.59
13.61
13.73
13.62
13.69
13.67
13.70
13.72
13.70
13.73
13.74
13.83
13.83
13.83
13.80
13.75
13.71
13.77
13.86
13.83
13.86
13.85
13.88
13.91
13.84
13.85
13.85
13.90
13.96
13.91
13.88
13.89
13.88
13.82
13.85
13.84
13.78
13.77
13.77
13.85
13.77
13.81
13.79
13.77
13.82
13.75
13.59
13.53
13.49
13.42
13.28
13.28
13.20
13.23
12.99
13.11
13.13
13.11
13.15
13.22
13.21
13.25
13.21
13.13
13.19
13.27
13.19
13.01
12.87
12.70
12.69
12.82
12.74
12.75
12.78
12.77
12.70
12.77
12.80
12.86
12.86
12.87
12.94
12.96
12.88
12.85
12.80
12.91
12.95
12.88
12.84
12.88
12.90
12.85
12.81
12.83
12.83
12.82
12.84
12.87
12.94
12.92
12.94
12.94
12.90
12.94
12.86
12.89
12.89
12.83
12.79
12.72
12.67
12.53
12.23
12.07
11.73
12.10
11.85
11.76
11.48
11.46
11.30
10.50
10.57
11.04
11.13
11.00
9.77
9.81
9.54
8.80
8.19
9.15
9.90
9.31
9.27
9.90
10.41
10.57
10.46
10.62
10.69
10.68
10.55
10.60
10.79
10/31/08 10.64
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. 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 a net ordinary income distribution in December
2007 of $0.0041 per share.
-----
14
-----
NQS | Nuveen Select
Performance | Quality Municipal
OVERVIEW | Fund, Inc.
as of October 31, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 50%
AA 27%
A 7%
BBB 13%
BB or Lower 3%
2007-2008 Monthly Tax-Free Dividends Per Common Share
BAR CHART:
Nov $ 0.0670
Dec 0.0670
Jan 0.0670
Feb 0.0670
Mar 0.0670
Apr 0.0670
May 0.0670
Jun 0.0670
Jul 0.0670
Aug 0.0670
Sep 0.0670
Oct 0.0670
Common Share Price Performance -- Weekly Closing Price
LINE CHART:
11/01/07 $ 14.85
14.81
14.67
14.54
14.51
14.32
14.12
14.08
14.05
13.82
13.85
13.76
13.81
14.16
14.08
14.11
13.96
13.86
13.92
13.96
13.95
13.84
14.00
13.97
14.06
14.05
14.14
14.09
13.99
13.92
14.00
13.93
13.98
13.85
13.87
13.84
13.97
13.86
13.70
13.72
13.97
14.13
14.55
14.53
14.74
14.80
14.80
14.77
14.82
14.93
14.97
15.01
14.81
14.51
14.62
14.92
15.01
14.87
14.93
14.95
14.99
14.92
14.98
14.89
14.92
14.93
14.93
14.93
15.01
15.07
14.72
14.05
14.14
14.18
13.99
13.70
13.75
13.95
14.01
13.87
13.60
13.35
13.68
13.80
13.94
13.79
13.80
13.65
13.77
13.54
13.48
13.33
13.11
13.24
13.32
13.25
13.60
13.53
13.65
13.76
13.73
13.71
13.79
13.82
13.83
13.82
13.83
13.81
13.93
14.15
14.09
14.10
14.16
14.15
14.20
14.23
14.16
14.16
14.21
14.18
14.24
14.16
14.18
14.26
14.20
14.19
14.23
14.25
14.24
14.31
14.37
14.39
14.35
14.31
14.29
14.29
14.27
14.32
14.33
14.31
14.32
14.40
14.32
14.29
14.26
14.26
14.25
14.24
14.18
14.24
14.26
14.22
14.15
13.90
13.84
13.70
13.82
13.71
13.73
13.75
13.64
13.20
13.35
13.56
13.68
13.77
13.78
13.89
13.88
13.89
13.83
13.80
13.89
13.87
13.61
13.46
13.12
13.18
13.34
13.22
13.22
13.20
13.21
13.21
13.18
13.16
13.28
13.29
13.20
13.30
13.16
13.23
13.20
13.10
13.27
13.18
13.20
13.13
13.16
13.16
13.23
13.15
13.17
13.15
13.15
13.18
13.20
13.35
13.26
13.33
13.33
13.39
13.39
13.26
13.28
13.30
13.30
13.24
13.10
12.98
12.78
12.51
12.35
12.06
12.50
12.31
11.75
11.73
12.09
11.67
11.21
11.38
12.09
11.76
11.51
10.36
10.01
9.50
8.39
8.09
9.53
10.00
9.41
9.59
9.92
10.46
10.60
10.70
11.08
10.99
11.09
11.40
11.36
11.21
10/31/08 10.99
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 10.99
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.01
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.49%
--------------------------------------------------------------------------------
Market Yield 7.32%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.17%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 408,541
--------------------------------------------------------------------------------
Average Effective Maturity on
Securities (Years) 13.44
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.62
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/21/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year -22.19% -15.50%
--------------------------------------------------------------------------------
5-Year 0.18% 1.09%
--------------------------------------------------------------------------------
10-Year 2.60% 3.61%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 9.4%
--------------------------------------------------------------------------------
Illinois 9.0%
--------------------------------------------------------------------------------
Colorado 8.3%
--------------------------------------------------------------------------------
New York 6.6%
--------------------------------------------------------------------------------
South Carolina 6.6%
--------------------------------------------------------------------------------
Michigan 5.4%
--------------------------------------------------------------------------------
New Jersey 5.4%
--------------------------------------------------------------------------------
Tennessee 4.5%
--------------------------------------------------------------------------------
Nevada 4.1%
--------------------------------------------------------------------------------
Ohio 3.3%
--------------------------------------------------------------------------------
New Mexico 3.2%
--------------------------------------------------------------------------------
North Carolina 3.0%
--------------------------------------------------------------------------------
Utah 2.9%
--------------------------------------------------------------------------------
California 2.8%
--------------------------------------------------------------------------------
Washington 2.3%
--------------------------------------------------------------------------------
Florida 2.3%
--------------------------------------------------------------------------------
Indiana 2.0%
--------------------------------------------------------------------------------
Oklahoma 2.0%
--------------------------------------------------------------------------------
Wisconsin 1.9%
--------------------------------------------------------------------------------
Other 15.0%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 35.2%
--------------------------------------------------------------------------------
Utilities 13.8%
--------------------------------------------------------------------------------
Health Care 13.4%
--------------------------------------------------------------------------------
Transportation 12.3%
--------------------------------------------------------------------------------
Tax Obligation/General 7.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 7.0%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGA, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. 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.
-----
15
-----
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 11.67
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.68
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.97%
--------------------------------------------------------------------------------
Market Yield 6.48%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.00%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 687,593
--------------------------------------------------------------------------------
Average Effective Maturity on
Securities (Years) 12.11
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.75
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 6/19/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year -9.55% -10.67%
--------------------------------------------------------------------------------
5-Year 1.75% 2.13%
--------------------------------------------------------------------------------
10-Year 2.70% 3.90%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
New York 11.5%
--------------------------------------------------------------------------------
Texas 10.2%
--------------------------------------------------------------------------------
Illinois 9.3%
--------------------------------------------------------------------------------
South Carolina 6.6%
--------------------------------------------------------------------------------
Washington 6.2%
--------------------------------------------------------------------------------
California 5.6%
--------------------------------------------------------------------------------
Oklahoma 5.4%
--------------------------------------------------------------------------------
Massachusetts 5.1%
--------------------------------------------------------------------------------
Nevada 3.6%
--------------------------------------------------------------------------------
New Jersey 3.4%
--------------------------------------------------------------------------------
Colorado 3.4%
--------------------------------------------------------------------------------
Ohio 3.3%
--------------------------------------------------------------------------------
Pennsylvania 2.5%
--------------------------------------------------------------------------------
Louisiana 2.2%
--------------------------------------------------------------------------------
Alabama 2.0%
--------------------------------------------------------------------------------
North Carolina 1.8%
--------------------------------------------------------------------------------
Puerto Rico 1.8%
--------------------------------------------------------------------------------
Michigan 1.6%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 40.8%
--------------------------------------------------------------------------------
Transportation 13.7%
--------------------------------------------------------------------------------
Tax Obligation/General 12.7%
--------------------------------------------------------------------------------
Utilities 10.4%
--------------------------------------------------------------------------------
Health Care 7.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 4.4%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
NQU | Nuveen Quality
Performance | Income Municipal
OVERVIEW | Fund, Inc.
as of October 31, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
AAA/U.S.
Guaranteed 57%
AA 25%
A 7%
BBB 6%
BB or Lower 4%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share
BAR CHART:
Nov $ 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0605
Apr 0.0605
May 0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0630
Oct 0.0630
Common Share Price Performance -- Weekly Closing Price
LINE CHART:
11/01/07 $ 13.58
13.58
13.52
13.40
13.27
13.33
13.16
13.17
13.15
12.99
12.96
12.95
12.87
13.00
13.05
13.10
13.15
13.11
13.19
13.26
13.35
13.32
13.40
13.34
13.31
13.32
13.37
13.33
13.25
13.12
12.99
13.01
13.04
13.04
13.04
12.98
13.04
12.95
13.04
13.16
13.44
13.70
14.00
14.25
14.22
14.29
14.24
14.27
14.20
14.27
14.36
14.36
14.24
14.03
14.18
14.43
14.45
14.35
14.31
14.35
14.26
14.26
14.28
14.29
14.37
14.33
14.31
14.36
14.39
14.49
13.98
13.37
13.50
13.60
13.44
13.27
13.20
13.40
13.47
13.42
13.13
12.94
13.30
13.39
13.65
13.42
13.53
13.54
13.57
13.57
13.62
13.44
13.30
13.42
13.35
13.29
13.32
13.36
13.40
13.45
13.46
13.52
13.52
13.40
13.38
13.44
13.44
13.33
13.37
13.39
13.31
13.29
13.33
13.39
13.45
13.46
13.53
13.51
13.53
13.53
13.46
13.47
13.45
13.47
13.49
13.52
13.46
13.53
13.50
13.56
13.57
13.57
13.59
13.58
13.60
13.70
13.76
13.80
13.88
13.87
13.91
13.93
13.96
13.95
13.94
13.94
13.91
13.99
13.93
13.90
13.87
13.80
13.71
13.50
13.35
13.45
13.54
13.43
13.26
13.21
13.16
13.03
13.09
13.11
13.16
13.02
13.10
13.16
13.27
13.21
13.19
13.18
13.29
13.30
13.11
12.97
12.81
12.87
13.00
12.90
12.92
13.04
12.96
12.98
13.05
13.09
13.17
13.19
13.25
13.18
13.18
13.17
13.19
13.14
13.23
13.21
13.16
13.09
13.04
13.02
13.02
12.99
13.02
12.96
12.88
12.92
13.00
13.07
13.00
13.04
13.04
13.03
13.06
13.03
13.05
13.11
13.10
13.06
12.92
12.75
12.64
12.39
12.21
11.94
12.38
11.78
11.37
11.37
11.72
11.51
10.91
10.90
11.17
11.32
11.27
10.15
9.86
9.49
8.94
8.50
9.65
10.50
9.92
9.98
10.14
10.59
10.63
10.79
11.14
11.59
11.76
11.63
11.39
11.45
10/31/08 11.67
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. 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
-----
NPF | Nuveen Premier
Performance | Municipal Income
OVERVIEW | Fund, Inc.
as of October 31, 2008
Credit Quality (as a % of total investments)(1), (2)
PIE CHART:
AAA/U.S.
Guaranteed 27%
AA 50%
A 9%
BBB 13%
N/R 1%
2007-2008 Monthly Tax-Free Dividends Per Common Share
BAR CHART:
Nov $ 0.0560
Dec 0.0560
Jan 0.0560
Feb 0.0560
Mar 0.0560
Apr 0.0560
May 0.0560
Jun 0.0560
Jul 0.0560
Aug 0.0560
Sep 0.0575
Oct 0.0575
Common Share Price Performance -- Weekly Closing Price
LINE CHART:
11/01/07 $ 13.10
13.04
13.05
13.05
12.95
12.81
12.66
12.57
12.55
12.36
12.36
12.40
12.41
12.53
12.66
12.63
12.78
12.70
12.60
12.67
12.74
12.71
12.77
12.86
12.84
12.81
12.83
12.88
12.81
12.66
12.65
12.69
12.76
12.71
12.70
12.65
12.74
12.73
12.77
12.85
12.88
12.99
13.10
13.30
13.38
13.51
13.46
13.51
13.55
13.58
13.60
13.60
13.54
13.36
13.41
13.56
13.55
13.44
13.35
13.35
13.24
13.28
13.27
13.34
13.42
13.39
13.34
13.37
13.44
13.61
13.14
12.77
12.72
12.93
12.95
12.78
12.61
12.79
12.88
12.70
12.40
12.18
12.38
12.35
12.53
12.41
12.49
12.46
12.49
12.27
12.29
12.31
12.10
12.22
12.19
12.22
12.40
12.41
12.52
12.63
12.64
12.60
12.63
12.57
12.56
12.55
12.61
12.54
12.70
12.78
12.74
12.81
12.70
12.80
12.83
12.78
12.88
12.97
12.93
12.95
12.93
12.92
12.83
12.86
12.88
12.94
12.86
12.88
12.86
12.89
12.93
12.95
12.96
12.92
12.94
12.92
12.97
13.00
12.95
12.93
12.89
12.94
12.95
13.00
12.96
12.96
12.94
12.98
12.95
12.95
12.90
12.90
12.85
12.73
12.62
12.63
12.66
12.64
12.59
12.48
12.36
12.16
12.18
12.30
12.40
12.28
12.34
12.37
12.47
12.40
12.40
12.40
12.47
12.50
12.33
12.18
12.15
12.13
12.22
12.08
12.15
12.12
12.04
12.02
11.99
12.11
12.12
12.04
12.03
12.04
12.06
12.10
12.05
12.02
12.06
12.08
12.09
12.01
12.00
12.08
12.08
12.04
12.07
12.04
11.99
12.02
12.09
12.10
12.06
12.04
12.04
12.07
12.06
12.08
12.13
12.18
12.14
12.13
12.04
11.97
11.92
11.86
11.54
11.09
11.35
10.96
10.84
10.89
10.84
10.47
10.08
10.15
10.26
10.30
10.33
9.43
9.37
8.81
8.37
7.34
8.80
9.08
8.55
8.72
8.92
9.47
9.65
9.90
10.09
10.22
10.17
10.11
10.06
10.05
10/31/08 10.07
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 10.07
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.68
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -13.78%
--------------------------------------------------------------------------------
Market Yield 6.85%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 9.51%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 232,517
--------------------------------------------------------------------------------
Average Effective Maturity on
Securities (Years) 13.49
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.20
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/19/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year -19.97% -17.03%
--------------------------------------------------------------------------------
5-Year -1.70% 0.24%
--------------------------------------------------------------------------------
10-Year 0.98% 3.02%
--------------------------------------------------------------------------------
States
(as a % of total investments)(2)
--------------------------------------------------------------------------------
California 13.3%
--------------------------------------------------------------------------------
New York 12.4%
--------------------------------------------------------------------------------
Illinois 6.4%
--------------------------------------------------------------------------------
Washington 5.8%
--------------------------------------------------------------------------------
New Jersey 5.3%
--------------------------------------------------------------------------------
Texas 4.9%
--------------------------------------------------------------------------------
South Carolina 4.8%
--------------------------------------------------------------------------------
Arizona 4.7%
--------------------------------------------------------------------------------
Wisconsin 4.0%
--------------------------------------------------------------------------------
Louisiana 3.6%
--------------------------------------------------------------------------------
Minnesota 3.1%
--------------------------------------------------------------------------------
Georgia 2.8%
--------------------------------------------------------------------------------
Michigan 2.6%
--------------------------------------------------------------------------------
North Carolina 2.5%
--------------------------------------------------------------------------------
Colorado 2.0%
--------------------------------------------------------------------------------
Indiana 1.8%
--------------------------------------------------------------------------------
Rhode Island 1.6%
--------------------------------------------------------------------------------
Ohio 1.6%
--------------------------------------------------------------------------------
Nebraska 1.4%
--------------------------------------------------------------------------------
Maryland 1.3%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.8%
--------------------------------------------------------------------------------
Utilities 15.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.4%
--------------------------------------------------------------------------------
Health Care 12.8%
--------------------------------------------------------------------------------
Tax Obligation/General 11.3%
--------------------------------------------------------------------------------
Transportation 6.4%
--------------------------------------------------------------------------------
Water and Sewer 6.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.4%
--------------------------------------------------------------------------------
Other 11.4%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. 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 derivative transactions.
(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.
-----
17
-----
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 11.02
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 9.63
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 14.43%
--------------------------------------------------------------------------------
Market Yield 9.09%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 12.63%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 230,123
--------------------------------------------------------------------------------
Average Effective Maturity on
Securities (Years) 20.14
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 16.99
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 11/19/03)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year -24.77% -32.63%
--------------------------------------------------------------------------------
Since
Inception 0.47% -1.23%
--------------------------------------------------------------------------------
States
(as a % of total investments)(2)
--------------------------------------------------------------------------------
California 9.6%
--------------------------------------------------------------------------------
Florida 8.4%
--------------------------------------------------------------------------------
Colorado 7.6%
--------------------------------------------------------------------------------
Indiana 7.0%
--------------------------------------------------------------------------------
Texas 6.6%
--------------------------------------------------------------------------------
Illinois 5.3%
--------------------------------------------------------------------------------
Ohio 5.0%
--------------------------------------------------------------------------------
Louisiana 4.9%
--------------------------------------------------------------------------------
Arizona 3.9%
--------------------------------------------------------------------------------
Pennsylvania 3.8%
--------------------------------------------------------------------------------
New Jersey 3.7%
--------------------------------------------------------------------------------
Michigan 3.0%
--------------------------------------------------------------------------------
Wisconsin 3.0%
--------------------------------------------------------------------------------
Washington 3.0%
--------------------------------------------------------------------------------
North Carolina 2.9%
--------------------------------------------------------------------------------
Minnesota 2.5%
--------------------------------------------------------------------------------
Tennessee 2.1%
--------------------------------------------------------------------------------
Missouri 1.8%
--------------------------------------------------------------------------------
Virgin Islands 1.7%
--------------------------------------------------------------------------------
Other 14.2%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Health Care 19.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.7%
--------------------------------------------------------------------------------
Housing/Multifamily 8.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.8%
--------------------------------------------------------------------------------
Utilities 5.8%
--------------------------------------------------------------------------------
Industrials 5.3%
--------------------------------------------------------------------------------
Water and Sewer 5.3%
--------------------------------------------------------------------------------
Transportation 4.7%
--------------------------------------------------------------------------------
Other 12.8%
--------------------------------------------------------------------------------
NMZ | Nuveen Municipal
Performance | High Income
OVERVIEW | Opportunity Fund
as of October 31, 2008
Credit Quality (as a % of total investments)(1), (2)
PIE CHART:
AAA/U.S.
Guaranteed 17%
AA 9%
A 5%
BBB 12%
BB or Lower 11%
N/R 46%
2007-2008 Monthly Tax-Free Dividends Per Common Share(4)
BAR CHART:
Nov $ 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0815
Apr 0.0815
May 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.0835
Oct 0.0835
Common Share Price Performance -- Weekly Closing Price
LINE CHART:
11/01/07 $ 15.90
15.87
15.89
16.02
15.87
15.87
15.69
15.62
15.65
15.66
15.54
15.51
15.27
15.44
15.20
15.31
15.30
15.20
15.35
15.24
14.98
15.00
15.30
15.38
15.40
15.38
15.45
15.50
15.37
15.07
15.00
14.87
14.75
14.71
14.53
14.34
14.27
14.20
14.12
14.57
14.98
15.16
15.40
15.52
15.70
15.79
15.82
15.90
15.98
15.97
16.04
15.85
15.63
15.54
15.62
16.07
16.08
15.81
15.92
15.84
15.88
15.89
15.97
15.96
15.91
15.91
15.92
16.03
15.98
16.12
15.70
15.01
15.01
15.43
15.17
15.17
14.95
15.25
15.33
15.19
14.99
14.92
15.15
15.21
15.52
15.28
15.26
15.23
15.35
15.06
14.99
15.03
14.60
14.73
14.67
14.75
15.05
15.21
15.35
15.30
15.21
15.27
15.32
15.21
15.27
15.24
15.36
15.23
15.25
15.35
15.22
15.29
15.18
15.22
15.38
15.40
15.50
15.40
15.38
15.31
15.31
15.32
15.36
15.50
15.50
15.44
15.47
15.42
15.39
15.36
15.38
15.47
15.40
15.49
15.49
15.54
15.60
15.40
15.45
15.50
15.54
15.44
15.53
15.45
15.56
15.56
15.41
15.41
15.35
15.48
15.41
15.53
15.53
15.41
15.24
15.24
15.33
15.20
15.06
14.97
14.85
14.77
14.95
14.95
15.00
15.15
15.14
15.28
15.24
15.17
15.30
15.30
15.49
15.43
15.16
15.03
14.75
14.79
14.73
14.73
14.79
14.77
14.71
14.86
14.86
14.93
15.15
15.15
15.05
14.94
14.98
14.89
14.74
14.76
14.74
14.73
14.66
14.52
14.44
14.31
14.45
14.47
14.78
14.36
14.42
14.41
14.56
14.57
14.38
14.47
14.47
14.42
14.54
14.50
14.50
14.49
14.42
14.42
14.33
14.40
14.10
14.25
13.52
12.99
14.17
13.21
12.92
12.80
12.60
12.65
11.77
12.50
11.83
11.75
11.85
10.78
9.90
8.80
7.60
7.04
9.34
10.37
9.77
9.75
9.92
10.57
10.53
10.45
10.69
10.67
10.43
11.45
11.07
10.82
10/31/08 11.02
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. 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 derivative transactions.
(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 capital gains and net ordinary income
distributions in December 2007 of $0.0933 per share.
-----
18
-----
NMD | Nuveen Municipal
Performance | High Income
OVERVIEW | Opportunity Fund 2
as of October 31, 2008
Credit Quality (as a % of total investments)(1), (2)
PIE CHART:
AA 14%
A 2%
BBB 30%
BB or Lower 14%
N/R 40%
2008 Monthly Tax-Free Dividends Per Common Share
BAR CHART:
Jan $ 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Jul 0.0785
Aug 0.0785
Sep 0.0800
Oct 0.0800
Common Share Price Performance -- Weekly Closing Price
LINE CHART:
11/01/07 $ 15.00
15.00
15.00
15.05
15.00
15.00
14.90
14.99
15.00
15.00
15.01
14.96
14.95
14.90
14.99
15.01
15.01
15.08
15.10
15.05
15.04
14.55
14.70
14.63
14.75
14.97
15.01
15.00
14.99
14.85
14.97
14.98
15.00
15.09
15.09
15.05
15.05
15.00
15.00
15.05
15.00
15.14
15.05
15.03
15.10
15.23
15.10
15.01
15.05
15.05
15.14
15.09
15.10
15.09
15.14
15.09
15.15
15.14
15.09
15.30
15.05
14.75
14.66
14.73
14.67
14.65
14.45
14.10
14.08
14.16
14.09
14.05
13.91
13.74
13.96
13.94
14.15
13.91
14.05
13.88
13.98
13.70
13.50
13.53
13.43
13.64
13.75
13.60
13.67
13.80
13.85
13.80
13.78
13.75
13.85
13.92
13.98
13.97
14.04
14.11
14.12
14.25
14.15
14.22
14.19
14.26
14.35
14.33
14.50
14.43
14.42
14.64
14.55
14.55
14.75
14.71
14.69
14.70
14.75
14.64
14.65
14.55
14.52
14.51
14.45
14.63
14.60
14.66
14.56
14.53
14.51
14.58
14.55
14.53
14.62
14.62
14.53
14.43
14.42
14.47
14.47
14.48
14.50
14.31
14.20
14.34
14.23
14.05
14.08
14.15
13.97
13.49
13.83
13.83
13.84
13.77
13.75
13.71
13.79
13.80
13.81
13.95
13.90
13.77
13.71
13.50
13.21
13.46
13.42
13.44
13.58
13.57
13.51
13.31
13.35
13.26
13.32
13.14
13.13
13.43
13.35
13.30
13.20
13.16
13.48
13.50
13.56
13.47
13.55
13.52
13.58
13.40
13.47
13.42
13.44
13.42
13.39
13.46
13.39
13.44
13.44
13.51
13.55
13.52
13.59
13.56
13.62
13.60
13.45
13.40
13.40
13.53
12.93
12.07
12.40
11.27
10.58
10.82
11.11
11.34
10.85
11.26
11.34
11.38
11.47
10.57
10.50
9.80
8.00
7.10
9.47
9.60
9.25
9.33
9.85
10.05
10.10
9.85
9.93
10.14
10.24
11.15
10.21
10.21
10/31/08 10.04
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 10.04
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 9.13
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 9.97%
--------------------------------------------------------------------------------
Market Yield 9.56%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 13.28%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 144,745
--------------------------------------------------------------------------------
Average Effective Maturity on
Securities (Years) 26.23
--------------------------------------------------------------------------------
Modified Duration 12.19
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 11/15/07)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
Since
Inception -28.82% -32.15%
--------------------------------------------------------------------------------
States
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Florida 11.9%
--------------------------------------------------------------------------------
California 10.8%
--------------------------------------------------------------------------------
Texas 10.6%
--------------------------------------------------------------------------------
Colorado 6.6%
--------------------------------------------------------------------------------
Illinois 5.6%
--------------------------------------------------------------------------------
Louisiana 5.5%
--------------------------------------------------------------------------------
Washington 4.7%
--------------------------------------------------------------------------------
South Carolina 4.3%
--------------------------------------------------------------------------------
Utah 3.6%
--------------------------------------------------------------------------------
Arizona 3.5%
--------------------------------------------------------------------------------
New Jersey 3.4%
--------------------------------------------------------------------------------
Ohio 3.0%
--------------------------------------------------------------------------------
Indiana 2.9%
--------------------------------------------------------------------------------
North Carolina 2.7%
--------------------------------------------------------------------------------
Georgia 2.4%
--------------------------------------------------------------------------------
Minnesota 2.0%
--------------------------------------------------------------------------------
Tennessee 1.9%
--------------------------------------------------------------------------------
Other 14.6%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)(2)
--------------------------------------------------------------------------------
Health Care 30.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 12.7%
--------------------------------------------------------------------------------
Consumer Discretion 6.2%
--------------------------------------------------------------------------------
Transportation 6.0%
--------------------------------------------------------------------------------
Utilities 5.8%
--------------------------------------------------------------------------------
Industrials 5.2%
--------------------------------------------------------------------------------
Housing/Multifamily 4.5%
--------------------------------------------------------------------------------
Other 12.8%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. 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 derivative transactions.
(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.
-----
19
-----
NQM | Shareholder MEETING REPORT
NQS |
NQU | The annual meeting of shareholders was held on July 29, 2008, at The
Northern Trust Company, 50 South La Salle Street, Chicago, IL 60675; at
this meeting the shareholders were asked to vote on the election of Board
Members, the elimination of Fundamental Investment Policies and the
approval of new Fundamental Investment Policies. The meeting for NQM, NQS,
NQU, NPF and NMZ was subsequently adjourned to August 29, 2008, and
additionally adjourned to September 30, 2008, October 28, 2008 and
November 25, 2008.
NQM NQS NQU
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
To approve the elimination of the
Fund's fundamental policy relating
to investments in municipal
securities and below investment
grade securities.
For 17,876,900 2,715 16,562,654 2,367 28,203,296 4,207
Against 1,271,687 433 1,109,331 441 1,970,553 507
Abstain 918,260 103 612,146 120 920,046 179
Broker Non-Votes 5,268,797 7,086 4,862,600 6,607 8,017,585 10,279
------------------------------------------------------------------------------------------------------------------------------------
Total 25,335,644 10,337 23,146,731 9,535 39,111,480 15,172
====================================================================================================================================
To approve the new fundamental
policy relating to investments in
municipal securities for the Fund.
For 18,031,876 2,782 16,675,374 2,516 28,339,225 4,353
Against 1,117,796 368 976,505 295 1,748,580 361
Abstain 917,175 101 632,252 117 1,006,090 179
Broker Non-Votes 5,268,797 7,086 4,862,600 6,607 8,017,585 10,279
------------------------------------------------------------------------------------------------------------------------------------
Total 25,335,644 10,337 23,146,731 9,535 39,111,480 15,172
====================================================================================================================================
To approve the elimination of the
fundamental policy relating to
investing in other investment
companies.
For 17,820,594 2,735 16,464,766 2,518 27,923,775 4,346
Against 1,310,964 437 1,160,334 324 2,112,740 411
Abstain 935,289 79 659,031 86 1,057,380 136
Broker Non-Votes 5,268,797 7,086 4,862,600 6,607 8,017,585 10,279
------------------------------------------------------------------------------------------------------------------------------------
Total 25,335,644 10,337 23,146,731 9,535 39,111,480 15,172
====================================================================================================================================
To approve the elimination of the
fundamental policy relating to
derivatives and short sales.
For 17,691,160 2,682 16,390,121 2,350 27,789,749 4,189
Against 1,415,540 480 1,206,168 481 2,156,446 564
Abstain 960,147 89 687,842 97 1,147,700 140
Broker Non-Votes 5,268,797 7,086 4,862,600 6,607 8,017,585 10,279
------------------------------------------------------------------------------------------------------------------------------------
Total 25,335,644 10,337 23,146,731 9,535 39,111,480 15,172
====================================================================================================================================
To approve the elimination of the
fundamental policy relating to
commodities.
For 17,670,458 2,682 16,351,621 2,368 27,754,895 4,203
Against 1,445,153 471 1,264,586 464 2,280,023 546
Abstain 951,236 98 667,924 96 1,058,977 144
Broker Non-Votes 5,268,797 7,086 4,862,600 6,607 8,017,585 10,279
------------------------------------------------------------------------------------------------------------------------------------
Total 25,335,644 10,337 23,146,731 9,535 39,111,480 15,172
====================================================================================================================================
To approve the new fundamental
policy relating to commodities.
For 17,750,075 2,716 16,460,751 2,382 27,932,747 4,240
Against 1,364,003 418 1,179,131 455 2,120,735 521
Abstain 952,769 117 677,249 91 1,040,413 132
Broker Non-Votes 5,268,797 7,086 4,862,600 6,607 8,017,585 10,279
------------------------------------------------------------------------------------------------------------------------------------
Total 25,335,644 10,337 23,179,731 9,535 39,111,480 15,172
====================================================================================================================================
-----
20
-----
NQM NQS NQU
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Approval of the Board Members was
reached as follows:
John P. Amboian
For 24,223,248 -- 22,252,735 -- 37,540,785 --
Withhold 1,109,395 -- 893,972 -- 1,569,582 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
Robert P. Bremner
For 24,185,595 -- 22,253,697 -- 37,529,796 --
Withhold 1,147,048 -- 893,010 -- 1,580,571 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
Jack B. Evans
For 24,210,036 -- 22,242,425 -- 37,526,925 --
Withhold 1,122,607 -- 904,282 -- 1,583,442 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
William C. Hunter
For -- 9,846 -- 9,100 -- 14,721
Withhold -- 490 -- 411 -- 440
------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,336 -- 9,511 -- 15,161
====================================================================================================================================
David J. Kundert
For 24,190,065 -- 22,264,977 -- 37,524,797 --
Withhold 1,142,578 -- 881,730 -- 1,585,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
William J. Schneider
For -- 9,846 -- 9,100 -- 14,724
Withhold -- 490 -- 411 -- 437
------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,336 -- 9,511 -- 15,161
====================================================================================================================================
Judith M. Stockdale
For 24,206,171 -- 22,245,242 -- 37,513,460 --
Withhold 1,126,472 -- 901,465 -- 1,596,907 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
Carole E. Stone
For 24,210,949 -- 22,252,997 -- 37,516,668 --
Withhold 1,121,694 -- 893,710 -- 1,593,699 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
Terence J. Toth
For 24,205,832 -- 22,256,119 -- 37,544,957 --
Withhold 1,126,811 -- 890,588 -- 1,565,410 --
------------------------------------------------------------------------------------------------------------------------------------
Total 25,332,643 -- 23,146,707 -- 39,110,367 --
====================================================================================================================================
-----
21
-----
NPF | Shareholder MEETING REPORT (continued)
NMZ |
NMD |
NPF NMZ NMD
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
To approve the elimination of the
Fund's fundamental policy relating
to investments in municipal
securities and below investment
grade securities.
For 9,888,243 1,444 -- -- -- --
Against 1,044,696 333 -- -- -- --
Abstain 349,669 20 -- -- -- --
Broker Non-Votes 2,708,826 4,008 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,434 5,805 -- -- -- --
====================================================================================================================================
To approve the new fundamental
policy relating to investments in
municipal securities for the Fund.
For 9,903,416 1,471 11,841,233 1,214 -- --
Against 991,430 305 580,560 156 -- --
Abstain 387,762 21 460,841 64 -- --
Broker Non-Votes 2,708,826 4,008 3,854,440 3,868 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,434 5,805 16,737,074 5,302 -- --
====================================================================================================================================
To approve the elimination of the
fundamental policy relating to
investing in other investment
companies.
For 9,842,425 1,464 11,792,037 1,214 -- --
Against 1,068,079 312 615,517 156 -- --
Abstain 372,104 21 475,080 64 -- --
Broker Non-Votes 2,708,826 4,008 3,854,440 3,868 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,434 5,805 16,737,074 5,302 -- --
====================================================================================================================================
To approve the elimination of the
fundamental policy relating to
derivatives and short sales.
For 9,776,777 1,426 -- -- -- --
Against 1,124,196 340 -- -- -- --
Abstain 381,635 31 -- -- -- --
Broker Non-Votes 2,708,826 4,008 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,434 5,805 -- -- -- --
====================================================================================================================================
To approve the elimination of the
fundamental policy relating to
commodities.
For 9,483,576 1,432 -- -- -- --
Against 1,381,870 337 -- -- -- --
Abstain 417,162 28 -- -- -- --
Broker Non-Votes 2,708,826 4,008 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,434 5,805 -- -- -- --
====================================================================================================================================
To approve the new fundamental
policy relating to commodities.
For 9,514,792 1,430 -- -- -- --
Against 1,368,228 335 -- -- -- --
Abstain 399,588 32 -- -- -- --
Broker Non-Votes 2,708,826 4,008 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,434 5,805 -- -- -- --
====================================================================================================================================
-----
22
-----
NPF NMZ NMD
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Approval of the Board Members was
reached as follows:
John P. Amboian
For 13,103,021 -- 16,153,240 -- 12,620,020 --
Withhold 888,408 -- 583,824 -- 145,116 --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- 16,737,064 -- 12,765,136 --
====================================================================================================================================
Robert P. Bremner
For 13,098,468 -- -- -- -- --
Withhold 892,961 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 13,092,058 -- -- -- -- --
Withhold 899,371 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- -- -- -- --
====================================================================================================================================
William C. Hunter
For -- 5,505 -- 5,178 12,620,233 --
Withhold -- 295 -- 114 144,903 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 5,800 -- 5,292 12,765,136 --
====================================================================================================================================
David J. Kundert
For 13,095,405 -- 16,159,817 -- 12,613,670 --
Withhold 896,024 -- 577,247 -- 151,466 --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- 16,737,064 -- 12,765,136 --
====================================================================================================================================
William J. Schneider
For -- 5,505 -- 5,178 -- --
Withhold -- 295 -- 114 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 5,800 -- 5,292 -- --
====================================================================================================================================
Judith M. Stockdale
For 13,101,628 -- -- -- -- --
Withhold 889,801 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- -- -- -- --
====================================================================================================================================
Carole E. Stone
For 13,105,248 -- -- -- -- --
Withhold 886,181 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- -- -- -- --
====================================================================================================================================
Terence J. Toth
For 13,098,888 -- 16,171,339 -- 12,616,670 --
Withhold 892,541 -- 565,725 -- 148,466 --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,991,429 -- 16,737,064 -- 12,765,136 --
====================================================================================================================================
-----
23
-----
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Board of Directors/Trustees and Shareholders
Nuveen Investment Quality Municipal Fund, Inc.
Nuveen Select Quality Municipal Fund, Inc.
Nuveen Quality Income Municipal Fund, Inc.
Nuveen Premier Municipal Income Fund, Inc.
Nuveen Municipal High Income Opportunity Fund
Nuveen Municipal High Income Opportunity Fund 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Investment Quality Municipal Fund,
Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income
Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc., Nuveen
Municipal High Income Opportunity Fund, and Nuveen Municipal High Income
Opportunity Fund 2 (the "Funds") as of October 31, 2008, and the related
statements of operations, statements of changes in net assets, statements of
cash flows (Nuveen Premier Municipal Income Fund, Inc. and Nuveen Municipal High
Income Opportunity Fund 2 only) and the financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2008, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal
Fund, Inc., Nuveen Quality Income Municipal Fund, Inc., Nuveen Premier Municipal
Income Fund, Inc., Nuveen Municipal High Income Opportunity Fund, Nuveen
Municipal High Income Opportunity Fund 2 at October 31, 2008, the results of
their operations, changes in their net assets, and cash flows (Nuveen Premier
Municipal Income Fund, Inc. and Nuveen Municipal High Income Opportunity Fund 2
only) and the financial highlights for the periods indicated therein in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 23, 2008
-----
24
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS
October 31, 2008
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 Aa1 $ 3,140,700
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 1,026,972
800 5.000%, 11/15/30 11/15 at 100.00 Baa1 577,160
1,650 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,145,843
Control Revenue Bonds, International Paper Company, Series
2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,450 Total Alabama 5,890,675
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.7% (1.0% of Total Investments)
4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 4,236,560
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 2,359,440
1,500 5.000%, 6/01/46 6/14 at 100.00 Baa3 798,000
------------------------------------------------------------------------------------------------------------------------------------
9,500 Total Alaska 7,394,000
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.4% (0.8% 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 162,202
265 5.250%, 12/01/25 12/15 at 100.00 BBB 211,550
2,500 Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, 7/17 at 100.00 AAA 404,000
Series 11032- 11034, 8.606%, 7/01/31 (IF)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 3,886,100
Airport Revenue Bonds, Series 2008, Trust 1132, 7.719%,
7/01/38 (IF)
2,450 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 1,483,402
Bonds, Series 2007, 5.000%,12/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,415 Total Arizona 6,147,254
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 2.0% (1.2% 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 3,049,304
2,000 5.000%, 12/01/35 - AMBAC Insured 12/15 at 100.00 Aa3 1,800,280
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 Aa3 1,041,253
2,100 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 2,081,184
1,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 Baa1 737,970
Regional Medical Center, Series 2005B, 5.000%, 2/01/30
------------------------------------------------------------------------------------------------------------------------------------
9,445 Total Arkansas 8,709,991
------------------------------------------------------------------------------------------------------------------------------------
-----
25
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc.(continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California - 20.2% (12.1% of Total Investments)
$ 2,250 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa1 $ 2,047,230
University of Southern California, Series 2008, 4.750%,
10/01/28 (UB)
1,000 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 887,650
University of the Pacific, Series 2006, 5.000%, 11/01/30
2,500 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 2,117,875
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
4,285 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 3,396,334
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
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 727,040
1,000 5.000%, 7/01/39 7/15 at 100.00 BBB 648,320
1,740 California Statewide Community Development Authority, Revenue 5/18 at 100.00 AA- 1,005,182
Bonds, Sutter Health, Tender Option Bond Trust 3175, 11.475%,
11/15/48 (IF)
1,290 California Statewide Community Development Authority, Revenue 11/16 at 100.00 AA- 862,203
Bonds, Sutter Health, Tender Option Bond Trust 3175, 11.640%,
11/15/42 (IF)
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,738,804
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 2,038,801
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) 156,928
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 1,870,680
610 5.125%, 6/01/47 6/17 at 100.00 BBB 360,205
9,740 Huntington Park Redevelopment Agency, California, Single Family No Opt. Call AAA 12,725,894
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 1,068,326
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 18,342,717
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 17,119,784
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) 3,790,445
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, California, 2/12 at 101.00 A+ 4,643,200
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 206,880
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 220,479
5,000 San Francisco Unified School District, California, General 6/17 at 100.00 AAA 3,393,500
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 1,719,120
8,135 0.000%, 1/15/34 - MBIA Insured No Opt. Call AA 1,471,540
17,195 0.000%, 1/15/35 - MBIA Insured No Opt. Call AA 2,899,077
3,185 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 Aa1 2,785,378
4.750%, 5/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
111,565 Total California 88,243,592
------------------------------------------------------------------------------------------------------------------------------------
-----
26
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 2.9% (1.8% of Total Investments)
$ 1,000 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- $ 755,160
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+ 293,072
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 AA 11,860,119
Refunding Bonds, Series 2000A, 6.000%, 11/15/19 - AMBAC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,850 Total Colorado 12,908,351
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 7.6% (4.5% of Total Investments)
23,745 District of Columbia Water and Sewerage Authority, Public Utility 4/09 at 160.00 AAA 24,627,127
Revenue Bonds, Series 2008, 5.500%, 10/01/23 - FSA Insured (UB)
3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AA 3,318,150
6.000%, 6/01/16 - MBIA Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 AA(4) 4,574,460
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 AA 564,132
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 1.947%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,895 Total District of Columbia 33,083,869
------------------------------------------------------------------------------------------------------------------------------------
Florida - 5.3% (3.2% of Total Investments)
1,000 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 AA 945,740
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 A2 3,051,311
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 1,355,292
Facility Revenue Refunding Bonds, Baptist Hospital and Baptist
Manor, Series 1998, 5.125%, 10/01/19
3,200 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 2,147,360
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 11,087,720
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- 4,637,891
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (UB)
------------------------------------------------------------------------------------------------------------------------------------
29,905 Total Florida 23,225,314
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 5.3% (3.2% of Total Investments)
10,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series 1/10 at 101.00 A+(4) 10,457,500
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 2,634,798
2004, 5.000%, 11/01/23 - FSA Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call AA 1,668,740
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 AA 5,989,568
Georgia State University - TUFF/Atlanta Housing LLC, Series
2001A, 5.500%, 9/01/22 - AMBAC Insured
2,250 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 2,413,710
Obligation Bonds, Fourth Crossover Series 1997E, 6.500%,
1/01/20
------------------------------------------------------------------------------------------------------------------------------------
22,940 Total Georgia 23,164,316
------------------------------------------------------------------------------------------------------------------------------------
-----
27
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc.(continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 1.2% (0.7% of Total Investments)
$ 4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aa3 $ 4,622,362
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- 379,825
500 5.250%, 9/01/30 9/16 at 100.00 BBB- 362,710
-----------------------------------------------------------------------------------------------------------------------------------
5,810 Total Idaho 5,364,897
-----------------------------------------------------------------------------------------------------------------------------------
Illinois - 10.6% (6.4% of Total Investments)
4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 BBB+(4) 4,986,171
University, Series 2000, 6.250%, 3/01/20(Pre-refunded
3/01/10) - RAAI Insured
4,775 Chicago Public Building Commission, Illinois, General Obligation 3/13 at 100.00 AA(4) 5,170,943
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 Program 1/11 at 100.00 Aaa 2,239,216
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 2,148,950
1,000 5.250%, 11/15/22 5/14 at 100.00 A 848,300
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 305,758
Series 2006, 5.125%, 1/01/25
2,600 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa3 2,005,614
Medical Center, Series 2002,5.500%, 5/15/32
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aaa 14,416,153
Illinois, General Obligation School Bonds, Series 1997,
7.800%, 1/01/12 - FSA Insured
6,300 Madison County Community Unit School District 7, Edwardsville, No Opt. Call N/R(4) 6,793,857
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 2,921,425
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 1,406,175
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,633,359
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call Aa3 1,432,237
Obligation School Building Bonds, Series 2001, 8.400%,
12/01/13 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
46,750 Total Illinois 46,308,158
-----------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.7% (2.3% of Total Investments)
5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101.00 N/R(4) 5,977,101
Bonds, Series 2000, 5.750%, 4/01/20 (Pre-refunded 4/01/11)
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 1,834,767
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 2,407,725
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- 1,261,173
2,500 5.375%, 2/15/34 2/15 at 100.00 BBB- 1,828,225
2,765 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 AA(4) 3,064,422
Bonds, Series 2001, 5.750%,7/15/14 (Pre-refunded 1/15/13) -
AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
16,720 Total Indiana 16,373,413
-----------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.1% (0.6% of Total Investments)
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 4,704,080
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
-----------------------------------------------------------------------------------------------------------------------------------
-----
28
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.2% (0.7% of Total Investments)
$ 1,000 Kansas Development Finance Authority, Health Facilities Revenue 11/15 at 100.00 A2 $ 868,210
Bonds, Hays Medical Center Inc., Series 2005L, 5.000%, 11/15/22
505 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 526,038
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 Hotel 8/16 at 100.00 AAA 3,893,604
Corporation, Series 1988, 9.500%, 10/01/16 (Pre-refunded 8/15/16)
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,650 Total Kansas 5,287,852
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.5% (0.3% of Total Investments)
2,000 Jefferson County, Kentucky, Health Facilities Revenue Refunding 1/09 at 100.00 AA 1,887,860
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 381,215
Kentucky, Industrial Building Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,510 Total Kentucky 2,269,075
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.2% (2.5% of Total Investments)
745 East Baton Rouge Mortgage Finance Authority, Louisiana, GNMA/FNMA 4/09 at 101.50 Aaa 745,194
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:
795 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 783,242
540 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 533,747
370 Jefferson Parish Home Mortgage Authority, Louisiana, Single 12/09 at 103.00 Aaa 376,286
Family Mortgage Revenue Refunding Bonds, Series 2000A-2, 7.500%,
12/01/30 (Alternative Minimum Tax)
3,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 2,371,710
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 1,948,025
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
11,545 Orleans Parish School Board, Louisiana, General Obligation No Opt. Call AA(4) 11,752,579
Refunding Bonds, Series 1987, 9.000%, 2/01/09 - MBIA
Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,495 Total Louisiana 18,510,783
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.5% (0.3% of Total Investments)
2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 2,132,225
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.7% (2.2% of Total Investments)
4,930 Massachusetts Development Financing Authority, Assisted Living 12/09 at 102.00 N/R 4,239,701
Revenue Bonds, Prospect House Apartments, Series 1999,
7.000%, 12/01/31
1,105 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 971,848
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 1,763,925
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.500%, 7/01/21
2,030 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,758,142
Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A,
5.600%, 12/01/19 (Alternative Minimum Tax)
5,100 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 5,120,043
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB)
3,120 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 2,406,986
4.500%, 8/01/46 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,160 Total Massachusetts 16,260,645
------------------------------------------------------------------------------------------------------------------------------------
-----
29
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.6% (2.7% of Total Investments)
$ 4,250 Detroit City School District, Wayne County, Michigan, Unlimited 5/12 at 100.00 AAA $ 4,547,245
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 Bonds, No Opt. Call A+ 10,706,954
Series 1993, 6.500%, 7/01/15 - FGIC Insured
1,800 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,421,694
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
1,350 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AA 1,320,786
Program, Series 2005II, 5.000%, 10/15/22 - AMBAC Insured
2,000 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 Aa2 1,713,900
Health Care Group, Series 2008A, 5.000%, 12/01/31 (UB)
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 214,129
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
------------------------------------------------------------------------------------------------------------------------------------
19,955 Total Michigan 19,924,708
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 9.3% (5.6% of Total Investments)
8,250 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 7,069,178
Inc., Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 6,433,250
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, Healthcare 11/10 at 101.00 A 611,859
System Revenue Bonds, Fairview Hospital and Healthcare
Services, Series 2000A, 6.375%, 11/15/29
19,380 Minnesota Agricultural and Economic Development Board, Healthcare 11/10 at 101.00 A(4) 20,958,887
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, Revenue 11/15 at 100.00 Baa3 806,060
Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
6,280 Washington County, Minnesota, General Obligation Bonds, Capital 8/17 at 100.00 AAA 4,555,638
Improvement Plan, Series 2007A, 3.500%, 2/01/28 (WI/DD,
Settling 11/03/08)
------------------------------------------------------------------------------------------------------------------------------------
40,530 Total Minnesota 40,434,872
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.6% (0.4% of Total Investments)
2,275 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,010,327
Bonds, Baptist Memorial Healthcare, Series 2008, 5.000%,
9/01/24 (UB)
1,250 Warren County, Mississippi, Gulf Opportunity Zone Revenue Bonds, 8/11 at 100.00 BBB 785,125
International Paper Company, Series 2006A, 4.800%, 8/01/30
------------------------------------------------------------------------------------------------------------------------------------
3,525 Total Mississippi 2,795,452
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.6% (0.4% of Total Investments)
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 169,840
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 1,002,940
Missouri, General Obligation Bonds, Series 2006, 5.250%,
3/01/26 - MBIA Insured
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call BBB+ 701,579
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 823,617
------------------------------------------------------------------------------------------------------------------------------------
3,205 Total Missouri 2,697,976
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.5% (0.3% of Total Investments)
3,000 Montana Board of Housing, Single Family Program Bonds, Series 6/14 at 100.00 AA+ 2,308,620
2005-RA-1, 4.750%, 6/01/44
------------------------------------------------------------------------------------------------------------------------------------
-----
30
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 2.5% (1.5% of Total Investments)
$ 11,215 Lincoln, Nebraska, Electric System Revenue Bonds, Series 2007A, 9/17 at 100.00 AA $ 8,814,429
4.500%, 9/01/37 - FGIC Insured (UB)
1,880 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan Program, 3/09 at 100.00 N/R 1,880,094
Series 1993B, 5.875%, 6/01/14 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,095 Total Nebraska 10,694,523
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 4.7% (2.8% of Total Investments)
11,000 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AA(4) 11,917,180
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 AA 8,755,052
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.625%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,530 Total Nevada 20,672,232
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.3% (1.4% 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- 1,326,405
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 993,060
680 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 528,734
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,464,936
System Bonds, Series 2006A, 5.250%, 12/15/20
1,520 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 1,621,095
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 2,202,480
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
11,950 Total New Jersey 10,136,710
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.5% (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 817,274
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,161,382
------------------------------------------------------------------------------------------------------------------------------------
2,175 Total New Mexico 1,978,656
------------------------------------------------------------------------------------------------------------------------------------
New York - 16.9% (10.2% of Total Investments)
1,665 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,649,049
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
25 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AA 10,297
Driver Trust 1649, 2006, 4.745%, 2/15/47 - MBIA Insured (IF)
3,980 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AA 2,832,447
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,000 Long Island Power Authority, New York, Electric System General 11/16 at 100.00 AA 2,230,230
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
2,250 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AA 1,989,360
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured
3,200 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 2,909,632
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
7,800 New York City Municipal Water Finance Authority, New York, Water 12/14 at 100.00 AAA 7,507,032
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, Future 2/14 at 100.00 AAA 5,579,803
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/22 (UB)
1,745 New York City, New York, General Obligation Bonds, Fiscal Series 6/13 at 100.00 AA 1,760,932
2003J, 5.500%, 6/01/20
-----
31
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 3,255 New York City, New York, General Obligation Bonds, Fiscal Series 6/13 at 100.00 AA(4) $ 3,583,071
2003J, 5.500%, 6/01/20 (Pre-refunded 6/01/13)
4,200 New York City, New York, General Obligation Bonds, Fiscal Series 3/15 at 100.00 AA 3,970,932
2005J, 5.000%, 3/01/25
7,000 New York City, New York, General Obligation Bonds, Fiscal Series 4/15 at 100.00 AA 6,660,010
2005M, 5.000%, 4/01/24 (UB)
1,250 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 1,235,975
2004C-1, Trust 3217, 13.994%, 8/15/20 (IF)
5,000 New York State Municipal Bond Bank Agency, Special School Purpose 6/13 at 100.00 A+ 5,056,550
Revenue Bonds, Series 2003C, 5.250%, 12/01/19
5,400 New York State Tobacco Settlement Financing Corporation, Tobacco 6/10 at 100.00 AA- 5,446,062
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 4,162,277
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 Bonds, No Opt. Call AA 16,345,013
JFK International Air Terminal LLC, Sixth Series 1997, 7.000%,
12/01/12 - MBIA Insured (Alternative Minimum Tax)
1,000 Rensselaer County Industrial Development Agency, New York, Civic 3/16 at 100.00 A 929,720
Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
76,990 Total New York 73,858,392
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.8% (1.1% of Total Investments)
7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA(4) 7,988,595
Bonds, Mission St. Joseph's Health System, Series 2001,
5.250%, 10/01/26 (Pre-refunded 10/01/11)
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.0% (0.6% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
3,420 5.125%, 6/01/24 6/17 at 100.00 BBB 2,680,596
530 5.875%, 6/01/30 6/17 at 100.00 BBB 371,535
525 5.750%, 6/01/34 6/17 at 100.00 BBB 349,650
1,180 5.875%, 6/01/47 6/17 at 100.00 BBB 738,220
250 Port of Greater Cincinnati Development Authority, Ohio, Economic 10/16 at 100.00 N/R 204,725
Development Revenue Bonds, Sisters of Mercy of the Americas,
Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,905 Total Ohio 4,344,726
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.5% (1.5% 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 384,080
750 5.375%, 9/01/36 9/16 at 100.00 BBB 547,103
Oklahoma Development Finance Authority, Revenue Bonds, Saint John
Health System, Series 2007:
1,900 5.000%, 2/15/37 2/17 at 100.00 AA- 1,571,243
990 5.000%, 2/15/42 2/17 at 100.00 AA- 799,940
5,280 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 4,106,204
Bonds, Saint Francis Health System, Series 2006, 5.000%,
12/15/36 (UB)
88 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 48,873
Bonds, Saint Francis Health System, Series 2006, Trust 3500,
7.262%, 12/15/36 (IF)
3,300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 6/09 at 100.00 B- 3,270,927
American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,808 Total Oklahoma 10,728,370
------------------------------------------------------------------------------------------------------------------------------------
-----
32
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.7% (2.2% of Total Investments)
$ 500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB $ 323,625
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,000 Commonwealth Financing Authority, Pennsylvania, State Appropriation 6/16 at 100.00 AAA 2,924,580
Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured (UB)
5,125 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 4,074,016
School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 -
FSA Insured (UB)
2,750 Philadelphia Hospitals and Higher Education Facilities Authority, 11/08 at 100.00 BBB 2,276,203
Pennsylvania, Hospital Revenue Bonds, Temple University
Hospital, Series 1993A, 6.625%, 11/15/23
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, Series 2001, 3/11 at 100.00 AAA 5,271,650
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) 1,101,140
Revenue Bonds, Catholic Health East, Series 2004B, 5.500%,
11/15/24 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
17,375 Total Pennsylvania 15,971,214
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.9% (0.6% of Total Investments)
1,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,501,515
Bonds, Series 2000A, 5.500%, 10/01/40
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,132,500
8/01/21 - CIFG Insured
14,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 1,417,500
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,725 Total Puerto Rico 4,051,515
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.6% (1.0% of Total Investments)
2,410 Rhode Island Health and Educational Building Corporation, Hospital 11/08 at 101.00 AA 2,243,710
Financing Revenue Bonds, Lifespan Obligated Group, Series 1996,
5.750%, 5/15/23 - MBIA Insured
5,445 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 4,868,701
Settlement Asset-Backed Bonds, Series 2002A, 6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
7,855 Total Rhode Island 7,112,411
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 2.8% (1.7% of Total Investments)
2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 1,901,900
Purchase Revenue Bonds, Securing Assets for Education, Series
2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 AA- 4,236,156
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 A-(4) 1,480,961
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
5,145 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 4,391,823
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
12,905 Total South Carolina 12,010,840
------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.4% (0.2% of Total Investments)
1,750 South Dakota Health and Educational Facilities Authority, Revenue 11/14 at 100.00 AA- 1,600,935
Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.9% (1.1% of Total Investments)
3,200 Johnson City Health and Educational Facilities Board, Tennessee, 7/16 at 100.00 BBB+ 2,254,720
Revenue Bonds, Mountain States Health Alliance, Series 2006A,
5.500%, 7/01/36
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 4,133,700
Tennessee, Hospital Revenue Bonds, Baptist Health System of East
Tennessee Inc., Series 2002, 6.500%, 4/15/31
-----
33
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Tennessee (continued)
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 $ 519,176
1,700 5.500%, 11/01/46 11/17 at 100.00 N/R 1,222,997
------------------------------------------------------------------------------------------------------------------------------------
10,600 Total Tennessee 8,130,593
------------------------------------------------------------------------------------------------------------------------------------
Texas - 16.2% (9.7% of Total Investments)
3,099 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,078,918
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 System 2/17 at 100.00 AAA 3,856,250
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
635 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 639,724
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000, 5.500%, 2/15/22
18,075 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 18,825,835
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000, 5.500%, 2/15/22 (Pre-refunded 2/15/10)
2,735 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AA 2,822,711
Series 1990, 7.400%, 2/15/10 - AMBAC Insured
755 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AA(4) 775,204
Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
2,256 Heart of Texas Housing Finance Corporation, GNMA Collateralized 6/10 at 105.00 Aaa 2,241,381
Mortgage Loan Revenue Bonds, Robinson Garden Project, Series
2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
11,950 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 5,603,833
Refunding Bonds, Series 1998A, 0.000%, 12/01/22 - FSA
Insured (ETM)
4,680 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 2,071,976
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- 682,272
1,220 5.125%, 8/15/26 No Opt. Call BBB- 956,260
3,150 North Texas Thruway Authority, Second Tier System Revenue Refunding 1/18 at 100.00 A3 2,659,356
Bonds, Series 2008, 5.750%, 1/01/38
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, TXU 11/15 at 100.00 Caa1 566,540
Electric Company, Series 2001C, 5.200%, 5/01/28
3,960 Stafford Economic Development Corporation, Texas, Sales Tax Revenue 9/15 at 100.00 AA 3,706,718
Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
7,500 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 6,095,250
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
5,030 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 5,109,625
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 AA 4,342,400
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call AA 4,489,320
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, Tomball 7/15 at 100.00 Baa3 2,071,425
Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
96,345 Total Texas 70,594,998
------------------------------------------------------------------------------------------------------------------------------------
-----
34
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.6% (0.3% of Total Investments)
$ 1,000 Amherst Industrial Development Authority, Virginia, Revenue Bonds, 9/16 at 100.00 BBB $ 761,890
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 1,651,425
Residential Rental Housing Revenue Bonds, Hamptons and Hampton
Court Apartments, Series 1999, 7.500%, 10/01/39 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,890 Total Virginia 2,413,315
------------------------------------------------------------------------------------------------------------------------------------
Washington - 6.4% (3.8% of Total Investments)
11,345 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AA 6,266,411
River-Rock Island Hydro-Electric System Revenue Refunding Bonds,
Series 1997A, 0.000%, 6/01/19 - MBIA Insured
17,075 Port of Seattle, Washington, Limited Tax General Obligation Bonds, 12/10 at 100.00 AAA 16,048,963
Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax)
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 5.625%, 10/11 at 100.00 AA 4,769,250
4/01/17 - FGIC Insured (Alternative Minimum Tax)
1,000 Washington State Health Care Facilities Authority, Revenue Bonds, No Opt. Call N/R 712,520
Northwest Hospital and Medical Center of Seattle, Series 2007,
5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
34,420 Total Washington 27,797,144
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.0% (0.6% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,303,600
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 4.0% (2.4% of Total Investments)
6,260 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco 6/12 at 100.00 BBB 5,963,777
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27
315 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 224,841
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+ 917,260
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 BBB+ 2,551,201
1,150 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,014,347
Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/24
4,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 A- 2,504,921
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
4,600 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AA 4,357,948
5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
20,325 Total Wisconsin 17,534,295
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.4% (0.3% of Total Investments)
2,500 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, FMC 12/15 at 100.00 BBB 1,633,450
Corporation, Series 2005, 5.600%, 12/01/35 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 838,338 Total Long-Term Investments (cost $771,110,125) - 162.1% 707,696,632
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 4.5% (2.7% of Total Investments)
4,150 Golden State Tobacco Securitization Corporation, California, VMIG-1 4,150,000
Tobacco Settlement, Trust 1220, Variable Rate Demand
Obligations, 6.640%, 6/01/35 - FGIC Insured (5)
3,000 Maryland Health and Higher Educational Facilities Authority, A-1+ 3,000,000
Goucher College, Variable Rate Demand Obligations, Series 2007,
1.450%, 7/01/37 (5)
3,300 New York City, New York, General Obligation Bonds, Variable Rate VMIG-1 3,300,000
Demand Obligations, Fiscal Series 1995B2-B10, 1.000%, 8/15/22 -
MBIA Insured (5)
-----
35
-----
NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments (continued)
$ 3,000 Port of Tacoma, Washington, General Obligation Bonds, Tender Option AA $ 3,000,000
Bond Trust 2006-86, Variable Rate Demand Obligations, 3.320%,
6/01/25 - MBIA Insured (5)
3,000 Red River Authority, Texas, Pollution Control Revenue Bonds, A-1+ 3,000,000
Southwestern Public Service Company, Variable Rate Demand
Obligations, Series 1996, 8.300%, 7/01/16 - AMBAC Insured (5)
3,000 Virginia Resources Authority, Clean Water State Revolving Fund A-1 3,000,000
Revenue Bonds, Variable Rate Demand Obligations, Series 2008,
Trust 2917, 5.690%, 10/01/28 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 19,450 Total Short-Term Investments (cost $19,450,000) 19,450,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $790,560,125) - 166.6% 727,146,632
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (16.6)% (72,382,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 11,055,775
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.6)% (6) (229,450,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 436,370,407
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as
of October 31, 2008. 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 31.6%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
36
-----
NQS | Nuveen Select Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS
October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 3.1% (1.8% of Total Investments)
$ 10,000 Lauderdale County and Florence Health Authority, Alabama, Revenue 7/10 at 102.00 AA $ 8,641,700
Bonds, Coffee Health Group, Series 2000A, 6.000%, 7/01/29 - MBIA
Insured
5,155 Phenix City Industrial Development Board, Alabama, Environmental 5/12 at 100.00 BBB 3,873,879
Improvement Revenue Bonds, MeadWestvaco Corporation, Series
2002A, 6.350%, 5/15/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,155 Total Alabama 12,515,579
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.6% (0.4% of Total Investments)
500 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 12/14 at 100.00 AA 472,655
Series 2005A, 5.000%, 12/01/26 - FGIC Insured
2,000 Kenai Peninsula Borough, Alaska, Revenue Bonds, Central Kenai 8/13 at 100.00 A3 1,857,640
Peninsula Hospital Service Area, Series 2003, 5.000%, 8/01/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Alaska 2,330,295
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.8% (1.7% of Total Investments)
2,300 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,096,473
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
3,750 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AA 3,789,563
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 AA- 4,843,760
Bonds, Series 2007, 5.000%,12/01/37
750 Scottsdale Industrial Development Authority, Arizona, Hospital 9/13 at 100.00 A3 602,745
Revenue Bonds, Scottsdale Healthcare, Series 2008A, 5.250%,
9/01/30
------------------------------------------------------------------------------------------------------------------------------------
14,800 Total Arizona 11,332,541
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 1.2% (0.7% of Total Investments)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax No Opt. Call A3 5,007,645
Refunding Bonds, Series 1993, 7.375%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
California - 4.6% (2.8% 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 792,091
4,505 0.000%, 8/01/33 - FGIC Insured No Opt. Call AA 847,976
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AA 520,493
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- 1,379,934
Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 -
FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, No Opt. Call A- 245,330
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 766,400
6,800 0.000%, 2/01/35 - FGIC Insured 2/15 at 34.85 AA 1,147,976
-----
37
-----
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
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 $ 3,115,260
11,430 0.000%, 8/01/27 - FGIC Insured 8/13 at 49.98 AA 3,572,332
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 1,167,880
Enhanced Tobacco Settlement Revenue Bonds, Residual Series 2040,
1.012%, 6/01/45 - FGIC Insured (IF)
1,045 Lake Tahoe Unified School District, El Dorado County, California, No Opt. Call A2 276,528
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 A+ 1,132,800
California, Certificates of Participation, Series 2006, 0.000%,
10/01/34 - FGIC Insured
5,000 Riverside County Asset Leasing Corporation, California, Leasehold No Opt. Call AA 1,837,000
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, No Opt. Call AA 1,665,550
California, General Obligation Bonds, Series 2005C, 0.000%,
8/01/26 - MBIA Insured
2,000 Yuma Community College District, California, General Obligation 8/17 at 45.45 AA 378,260
Bonds, Series 2007B, 0.000%, 8/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
66,865 Total California 18,845,810
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 13.7% (8.3% of Total Investments)
11,000 Colorado Department of Transportation, Revenue Anticipation Bonds, 6/10 at 100.50 Aaa 11,701,470
Series 2000, 6.000%, 6/15/15 (Pre-refunded 6/15/10) - AMBAC
Insured
9,250 Colorado Health Facilities Authority, Remarketed Revenue Bonds, 1/09 at 101.00 AAA 9,360,908
Kaiser Permanente System, Series 1994A, 5.350%, 11/01/16 (ETM)
1,150 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 9/18 at 102.00 AAA 1,036,162
Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured
16,995 Denver City and County, Colorado, Airport System Revenue Refunding 11/10 at 100.00 AA 15,015,252
Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC Insured
(Alternative Minimum Tax)
4,500 Denver City and County, Colorado, Airport System Revenue Refunding 11/11 at 100.00 A+ 4,286,385
Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC Insured
(Alternative Minimum Tax)
1,500 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 11/16 at 100.00 BBB- 1,095,015
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 531,194
8,515 0.000%, 9/01/25 - MBIA Insured No Opt. Call AA 2,735,784
13,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 45.40 AA 2,111,980
Series 2004B, 0.000%, 9/01/34 - MBIA Insured
5,000 Ebert Metropolitan District, Colorado, Limited Tax General 12/17 at 100.00 A3 3,709,650
Obligation Bonds, Series 2007, 5.350%, 12/01/37 - RAAI Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, Senior Lien 6/11 at 40.52 AAA 4,548,740
Revenue Bonds, Series 2001B, 0.000%, 6/15/26 (Pre-refunded
6/15/11) - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
84,685 Total Colorado 56,132,540
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.9% (1.1% of Total Investments)
2,630 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 2,342,199
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
5,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AA 5,458,800
6.000%, 6/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,630 Total District of Columbia 7,800,999
------------------------------------------------------------------------------------------------------------------------------------
-----
38
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Florida - 3.8% (2.3% 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 $ 2,965,253
4,860 5.875%, 10/01/19 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 4,615,007
9,250 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 7,405,458
Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/40 -
MBIA Insured
2,500 South Miami Health Facilities Authority, Florida, Revenue Bonds, 8/17 at 100.00 AA- 367,500
Baptist Health Systems of South Florida, Series 2007, ROLS 11151,
13.250%, 8/15/42 (IF)
------------------------------------------------------------------------------------------------------------------------------------
19,685 Total Florida 15,353,218
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 0.8% (0.5% of Total Investments)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 A+ 3,155,663
5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 15.0% (9.0% 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 1,434,792
2,925 0.000%, 12/01/31 - FGIC Insured No Opt. Call AA 738,124
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21 7/10 at 101.00 AAA 6,304,171
Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded 7/01/10) -
FGIC Insured
15,000 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AA 12,070,800
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 AA 3,059,129
5,460 5.250%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AA 4,308,977
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,706,740
Hospital, Series 2008, 5.250%, 8/15/47 - AGC Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health Services 2/18 at 100.00 AA 804,190
Corporation, Series 2008A, 5.500%, 2/01/40 - AMBAC Insured
3,975 Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, 8/17 at 100.00 A- 2,750,064
Series 2007A, 5.500%, 8/01/37
10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical 5/12 at 100.00 Baa3 8,877,400
Center, Series 2002, 5.750%, 5/15/22
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest Care 2/11 at 102.00 Aaa 1,975,860
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 Aaa 4,274,637
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 3,875,490
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 2,876,578
2,920 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 2,794,820
1,100 0.000%, 12/15/35 - MBIA Insured No Opt. Call AAA 216,150
2,455 0.000%, 6/15/41 - MBIA Insured No Opt. Call AAA 340,312
7,500 Valley View Public Schools, Community Unit School District 365U of No Opt. Call AA 2,832,825
Will County, Illinois, General Obligation Bonds, Series 2005,
0.000%, 11/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
94,470 Total Illinois 61,241,059
------------------------------------------------------------------------------------------------------------------------------------
-----
39
-----
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.3% (2.0% of Total Investments)
$ 2,000 Hospital Authority of Delaware County, Indiana, Hospital Revenue 8/16 at 100.00 Baa2 $ 1,335,480
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 1,472,160
Community Foundation of Northwest Indiana, Series 2007, 5.500%,
3/01/37
765 Indiana Housing Finance Authority, Single Family Mortgage Revenue 1/10 at 100.00 Aaa 764,924
Bonds, Series 2000D-3, 5.950%, 7/01/26 (Alternative Minimum Tax)
2,225 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AA 1,817,803
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) 8,153,764
Memorial Health System, Series 2000, 5.625%, 8/15/33
(Pre-refunded 2/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,650 Total Indiana 13,544,131
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.9% (0.6% of Total Investments)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, Series 3/14 at 100.00 AAA 3,809,140
2008, 5.000%, 3/01/23 (UB)
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.2% (0.1% of Total Investments)
1,000 Kentucky Economic Development Finance Authority, Louisville Arena 6/18 at 100.00 AAA 970,940
Project Revenue Bonds, Louisville Arena Authority, Inc., Series
2008A-1, 6.000%, 12/01/33 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.9% (1.1% of Total Investments)
7,500 Maryland Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AA(4) 7,772,700
Bonds, Johns Hopkins University, Series 1999, 6.000%, 7/01/39
(Pre-refunded 7/01/09)
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.3% (0.2% of Total Investments)
880 Massachusetts Educational Finance Authority, Student Loan Revenue 12/09 at 101.00 AA 893,719
Refunding Bonds, Series 2000G, 5.700%, 12/01/11 - MBIA Insured
(Alternative Minimum Tax)
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/18 at 100.00 A3 339,440
Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
1,380 Total Massachusetts 1,233,159
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 9.0% (5.4% of Total Investments)
540 Detroit, Michigan, General Obligation Bonds, Series 2003A, 5.250%, 4/13 at 100.00 BBB 522,439
4/01/19 - SYNCORA GTY Insured
10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1/10 at 101.00 Aaa 10,466,400
1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured
6,475 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 AAA 6,763,785
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 Bonds, 2/09 at 100.00 BB 2,882,622
Detroit Medical Center Obligated Group, Series 1993A, 6.500%,
8/15/18
6,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A3 5,020,560
Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit
Edison Company, Series 1999C, 5.650%, 9/01/29 - SYNCORA GTY
Insured (Alternative Minimum Tax)
7,500 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 12/12 at 100.00 Baa1 6,024,750
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 Revenue 11/11 at 100.00 AA 5,162,264
Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/35 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,690 Total Michigan 36,842,820
------------------------------------------------------------------------------------------------------------------------------------
-----
40
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.4% (1.4% of Total Investments)
$ 7,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA $ 7,378,210
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32
(Pre-refunded 1/01/11) - FGIC Insured
2,440 Minnesota Housing Finance Agency, Single Family Mortgage Revenue 7/09 at 100.00 AA+ 2,450,980
Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,440 Total Minnesota 9,829,190
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.5% (0.3% of Total Investments)
2,475 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,187,059
Bonds, Baptist Memorial Healthcare, Series 2008, 5.000%,
9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.7% (0.4% of Total Investments)
5,000 Kansas City Municipal Assistance Corporation, Missouri, Leasehold No Opt. Call AA 1,571,000
Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 - AMBAC Insured
1,500 Missouri-Illinois Metropolitan District Bi-State Development Agency, 10/13 at 100.00 AAA 1,340,400
Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross
County Extension Project, Series 2002B, 5.000%, 10/01/32 - FSA
Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Missouri 2,911,400
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 6.8% (4.1% of Total Investments)
4,885 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, 7/10 at 100.00 AA+(4) 5,140,241
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) 8,016,075
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 AA 1,175,714
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 Healthcare 7/17 at 100.00 A 1,918,700
West, Trust 2634, 0.777%, 7/01/31 (IF)
10,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 11,437,463
Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
27,585 Total Nevada 27,688,193
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 8.9% (5.4% of Total Investments)
16,840 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 39.39 Baa2 1,850,884
Bonds, Saint Barnabas Health Care System, Series 2006A, 0.000%,
7/01/35
2,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB-(4) 2,617,392
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 Program 10/10 at 100.00 Aaa 14,860,986
Revenue Bonds, Series 2000CC, 5.850%, 10/01/25 - MBIA Insured
(Alternative Minimum Tax)
1,905 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing 11/08 at 100.75 Aaa 1,651,044
Revenue Bonds, Series 1997A, 5.550%, 5/01/27 (Pre-refunded
11/01/08) - AMBAC Insured (Alternative Minimum Tax)
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,439,600
System Bonds, Series 2006C, 0.000%, 12/15/33 - FSA Insured
7,120 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 7,593,551
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 3,512,600
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
69,630 Total New Jersey 36,526,057
------------------------------------------------------------------------------------------------------------------------------------
-----
41
-----
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 5.3% (3.2% of Total Investments)
$ 8,500 Farmington, New Mexico, Pollution Control Revenue Refunding Bonds, 4/09 at 100.00 Baa3 $ 6,683,040
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) 8,526,960
6,200 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA-(4) 6,608,394
------------------------------------------------------------------------------------------------------------------------------------
22,700 Total New Mexico 21,818,394
------------------------------------------------------------------------------------------------------------------------------------
New York - 11.0% (6.6% of Total Investments)
5,650 Dormitory Authority of the State of New York, Improvement Revenue 8/09 at 101.00 AAA 5,871,254
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, Lease 5/10 at 101.00 AA-(4) 10,676,500
Revenue Bonds, Court Facilities, Series 1999, 6.000%, 5/15/39
(Pre-refunded 5/15/10)
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 6,356,910
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
5,000 New York City Municipal Water Finance Authority, New York, Water 6/09 at 101.00 AAA 4,746,800
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 AA(4) 2,369,013
Transportation Authority, Triborough Bridge and Tunnel Authority,
Certificates of Participation, Series 2000A, 5.750%, 1/01/20
(Pre-refunded 1/01/10) - AMBAC Insured
9,750 New York City Transitional Finance Authority, New York, Future Tax 5/10 at 101.00 AAA 10,392,720
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 Bonds, 3/09 at 101.00 Aa1 4,466,070
Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
45,055 Total New York 44,879,267
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 5.0% (3.0% of Total Investments)
18,555 North Carolina Eastern Municipal Power Agency, Power System Revenue 1/09 at 100.00 Baa1 18,183,525
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- 2,422,260
Doing Business as Carolinas HealthCare System, Health Care
Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47 - AGC
Insured
------------------------------------------------------------------------------------------------------------------------------------
21,555 Total North Carolina 20,605,785
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 5.5% (3.3% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio,
Tobacco Settlement Asset-Backed Revenue Bonds, Senior
Lien, Series 2007A-2:
260 5.125%, 6/01/24 6/17 at 100.00 BBB 203,788
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 1,892,727
2,635 5.750%, 6/01/34 6/17 at 100.00 BBB 1,754,910
7,995 5.875%, 6/01/47 6/17 at 100.00 BBB 5,001,752
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 2,565,576
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-3, 0.000%, 6/01/37
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
5,000 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A(4) 5,356,300
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A(4) 5,356,300
3,750 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/17 at 100.00 AA --
University Hospitals Health System Inc., Series 2007A, Trust
2812-1, 2.182%, 1/15/46 - AMBAC Insured (IF)
220 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 222,303
Program Residential Mortgage Revenue Bonds, Series 2000C,
6.050%, 3/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
32,710 Total Ohio 22,353,656
------------------------------------------------------------------------------------------------------------------------------------
-----
42
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 3.3% (2.0% of Total Investments)
$ 1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- $ 1,435,676
Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%,
8/15/38
2,235 Oklahoma Development Finance Authority, Revenue Bonds, St. John 2/14 at 100.00 AA- 2,031,928
Health System, Series 2004, 5.000%, 2/15/24
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 1/09 at 100.00 B- 9,925,400
American Airlines Inc., Series 2001B, 5.650%, 12/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,910 Total Oklahoma 13,393,004
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.9% (0.5% of Total Investments)
95 Delaware River Port Authority, New Jersey and Pennsylvania, Revenue 1/10 at 100.00 AAA 97,627
Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, Series 12/18 at 100.00 AAA 1,069,401
2008, 5.000%, 12/01/43 - FSA Insured
3,250 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 2,309,418
Bonds, Series 2008, 4.650%, 10/01/31 (Alternative Minimum Tax)
(UB)
------------------------------------------------------------------------------------------------------------------------------------
4,595 Total Pennsylvania 3,476,446
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.8% (0.5% of Total Investments)
800 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call Aa3 592,496
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 Aa3(4) 1,866,568
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 1,012,936
Bonds, Series 2007A, 0.000%, 8/01/54 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,890 Total Puerto Rico 3,472,000
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.4% (0.3% of Total Investments)
Rhode Island Housing & Mortgage Finance Corporation, Homeownership
Opportunity 57-B Bond Program, Series 2008, Trust 1177:
1,500 8.125%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,011,840
1,000 8.225%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 605,920
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Rhode Island 1,617,760
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 10.9% (6.6% 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) 6,158,405
4,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA(4) 5,038,695
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, Self 10/11 at 100.00 A 3,093,788
Memorial Hospital, Series 2001, 5.500%, 10/01/31
2,500 Lexington County Health Service District, South Carolina, Hospital 11/13 at 100.00 A+(4) 2,745,750
Revenue Refunding and Improvement Bonds, Series 2003, 5.750%,
11/01/28 (Pre-refunded 11/01/13)
2,825 Medical University Hospital Authority, South Carolina, FHA-Insured 8/14 at 100.00 AA 2,787,569
Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/22 - MBIA
Insured
21,565 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call A 5,355,883
Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured
1,250 South Carolina Housing Finance and Development Authority, Mortgage 6/10 at 100.00 Aaa 1,253,225
Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20 - FSA Insured
(Alternative Minimum Tax)
3,025 Tobacco Settlement Revenue Management Authority, South Carolina, No Opt. Call BBB(4) 3,312,920
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/30 (ETM)
-----
43
-----
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
South Carolina (continued)
Tobacco Settlement Revenue Management Authority, South Carolina,
Tobacco Settlement Asset-Backed Bonds, Series 2001B:
$ 10,310 6.000%, 5/15/22 (Pre-refunded 5/15/12) 5/12 at 100.00 BBB(4) $ 10,722,709
4,000 6.375%, 5/15/28 (Pre-refunded 5/15/16) 5/16 at 100.00 BBB(4) 4,286,440
------------------------------------------------------------------------------------------------------------------------------------
59,225 Total South Carolina 44,755,384
------------------------------------------------------------------------------------------------------------------------------------
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 5,684,363
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 12/08 at 102.00 A2 2,086,018
Series 1998-1K, 5.600%, 6/01/20 (Alternative Minimum Tax)
1,750 South Dakota Health and Educational Facilities Authority, Revenue 11/14 at 100.00 AA- 1,600,935
Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
8,835 Total South Dakota 9,371,316
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 7.4% (4.5% of Total Investments)
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 4,133,700
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 12,957,958
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 and 11/09 at 101.00 AAA 13,154,500
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 30,246,158
------------------------------------------------------------------------------------------------------------------------------------
Texas - 15.7% (9.4% of Total Investments)
5,110 Brazos River Authority, Texas, Pollution Control Revenue Refunding 4/13 at 101.00 Caa1 3,801,993
Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32
(Alternative Minimum Tax)
7,925 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call Caa1 6,884,844
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 Williamson 1/15 at 100.00 AA 3,220,548
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 Revenue 12/11 at 100.00 AAA 5,853,595
Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) -
AMBAC Insured
2,000 Ennis Independent School District, Ellis County, Texas, General 8/16 at 54.64 Aaa 592,180
Obligation Bonds, Series 2006, 0.000%, 8/15/28
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal Revenue 4/11 at 101.00 BBB 1,143,420
Bonds, Valero Energy Corporation, Series 2001, 6.650%, 4/01/32
(Alternative Minimum Tax)
7,570 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue No Opt. Call AA 1,487,051
Bonds, Series 2001H, 0.000%, 11/15/31 - MBIA Insured
5,000 Houston Community College, Texas, Limited Tax General Obligation 2/13 at 100.00 AA 4,869,800
Bonds, Series 2003, 5.000%, 2/15/26 - AMBAC Insured
4,590 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 3,904,529
Series 2000A, 5.625%, 7/01/30 - FSA Insured (Alternative Minimum
Tax)
9,000 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call Aaa 7,198,200
Revenue Refunding Bonds, Houston Light and Power Company, Series
1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative Minimum Tax)
340 Panhandle Regional Housing Finance Corporation, Texas, GNMA 11/08 at 100.00 AAA 344,287
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, Richardson 12/13 at 100.00 Baa2 1,960,232
Regional Medical Center, Series 2004, 6.000%, 12/01/19
-----
44
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 Baa2 $ 4,245,134
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 5,416,785
Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%, 8/15/26
4,375 Tarrant County Cultural & Educational Facilities Financing 11/17 at 100.00 AA- 2,413,119
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2008, Trust 1197, 7.563%, 11/15/47 (IF)
4,520 Texas, General Obligation Bonds, Water Financial Assistance, State 8/09 at 100.00 Aa1 4,522,215
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 1,568,924
9,110 0.000%, 8/15/41 8/15 at 25.73 AAA 1,126,725
7,110 0.000%, 8/15/45 8/15 at 20.76 AAA 672,962
2,045 Winter Garden Housing Finance Corporation, Texas, GNMA/FNMA 4/09 at 100.00 AAA 2,066,554
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, General 8/15 at 57.10 AAA 698,740
Obligation Bonds, Series 2005, 0.000%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
103,245 Total Texas 63,991,837
------------------------------------------------------------------------------------------------------------------------------------
Utah - 4.8% (2.9% of Total Investments)
3,565 Utah Associated Municipal Power Systems, Revenue Bonds, Payson 4/13 at 100.00 AAA 3,416,910
Power Project, Series 2008, 5.000%, 4/01/24 - FSA Insured (UB)
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health Services 2/09 at 100.00 AA(4) 16,084,187
Inc., Series 1997, 5.250%, 8/15/26 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,615 Total Utah 19,501,097
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 2.3% (1.4% 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 AA 3,785,658
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 AA 4,335,884
1,255 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 1,254,736
Series 2000-13A, 5.950%, 11/01/25 - FSA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,240 Total Vermont 9,376,278
------------------------------------------------------------------------------------------------------------------------------------
Washington - 3.9% (2.3% of Total Investments)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA 7,236,534
Consolidated System Revenue Bonds, Series 2001A, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax)
7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AA 6,809,852
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
2,500 Washington State Health Care Facilities Authority, Revenue Bonds, No Opt. Call N/R 1,781,300
Northwest Hospital and Medical Center of Seattle, Series 2007,
5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
18,535 Total Washington 15,827,686
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1% (0.6% of Total Investments)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,303,600
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
-----
45
-----
NQS | Nuveen Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 3.2% (1.9% of Total Investments)
$ 7,480 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco 6/12 at 100.00 BBB $ 7,126,046
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27
5,000 Madison, Wisconsin, Industrial Development Revenue Refunding Bonds, 4/12 at 100.00 AA- 4,584,250
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 A- 1,293,264
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
14,580 Total Wisconsin 13,003,560
------------------------------------------------------------------------------------------------------------------------------------
$ 943,430 Total Investments (cost $741,979,512) - 166.2% 679,023,366
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.3)% (9,595,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 6,688,109
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (65.5)% (6) (267,575,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 408,541,475
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as
of October 31, 2008. 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) Portion of investment has been pledged as collateral for Recourse
Trusts.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 39.4%.
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 accompanying notes to financial statements.
-----
46
-----
NQU | Nuveen Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 3.2% (2.0% 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 $ 8,004,380
6,340 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,751,656
6,970 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,463,615
------------------------------------------------------------------------------------------------------------------------------------
20,785 Total Alabama 22,219,651
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.7% (1.0% of Total Investments)
6,110 Alaska Housing Finance Corporation, General Housing Purpose Bonds, 12/14 at 100.00 AA 5,744,622
Series 2005A, 5.000%, 12/01/27 - FGIC Insured
11,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 5,852,000
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
17,110 Total Alaska 11,596,622
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.3% (1.4% of Total Investments)
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A2 4,793,547
Multipurpose Stadium Facility Project, Series 2003A, 5.000%,
7/01/28 - MBIA Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, Series 2002, No Opt. Call AA 1,045,240
5.250%, 7/01/17 - FGIC Insured
2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,142,049
Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33
8,010 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 Aa1 7,828,894
Arizona, Electric System Revenue Refunding Bonds, Series 2002A,
5.125%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
16,710 Total Arizona 15,809,730
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.9% (0.5% 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 462,250
19,800 0.000%, 7/01/46 - AMBAC Insured No Opt. Call Aa3 1,887,138
4,000 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aa3 3,617,680
Sciences Campus, Series 2004B, 5.000%, 11/01/34 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,300 Total Arkansas 5,967,068
------------------------------------------------------------------------------------------------------------------------------------
California - 9.2% (5.6% of Total Investments)
12,500 Anaheim Public Finance Authority, California, Subordinate Lease No Opt. Call AAA 2,183,000
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 1,103,780
Bonds, Series 2002A, 5.750%, 5/01/17 (Pre-refunded 5/01/12)
6,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 4,735,200
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
3,450 California Infrastructure Economic Development Bank, Revenue Bonds, 10/11 at 101.00 A- 3,017,784
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 988,774
Bonds, Daughters of Charity Health System, Series 2005A, 5.250%,
7/01/30
-----
47
-----
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008
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- $ 3,205,008
Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 -
FGIC Insured
14,600 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/28 8/13 at 100.00 A+ 14,001,254
4,000 California, General Obligation Bonds, Trust 2652, 0.751%, 6/01/37 6/17 at 100.00 A+ 2,202,960
(IF)
10,000 California, Various Purpose General Obligation Bonds, Series 1999, 4/09 at 101.00 AA 8,939,600
4.750%, 4/01/29 - MBIA Insured
6,250 California, Various Purpose General Obligation Bonds, Series 2005 3/16 at 100.00 AA 2,167,125
Trust 2813, 0.930%, 3/01/35 - MBIA Insured (IF)
8,500 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/10 at 100.00 AA 7,044,205
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 6,235,600
1,500 5.125%, 6/01/47 6/17 at 100.00 BBB 885,750
30,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AA 5,058,000
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
3,000 San Mateo County Community College District, California, General No Opt. Call Aa1 806,370
Obligation Bonds, Series 2006C, 0.000%, 9/01/30 - MBIA Insured
1,500 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 944,625
Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
117,260 Total California 63,519,035
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 5.6% (3.4% of Total Investments)
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 9/18 at 102.00 AAA 901,010
Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured
10,000 Denver City and County, Colorado, Airport System Revenue Refunding 11/10 at 100.00 AA 8,835,100
Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC Insured
(Alternative Minimum Tax)
5,385 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AA 1,600,691
Series 1997B, 0.000%, 9/01/26 - MBIA Insured
43,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AA 7,512,960
Series 2000B, 0.000%, 9/01/33 - MBIA Insured
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 65.63 Aaa 8,960,544
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 1,137,220
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) 9,234,160
Obligation Bonds, Series 2000, 5.125%, 12/15/19 (Pre-refunded
12/15/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
89,525 Total Colorado 38,181,685
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.7% (0.4% of Total Investments)
4,395 Bridgeport, Connecticut, General Obligation Bonds, Series 2001C, 8/11 at 100.00 A-(4) 4,709,946
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) 5,434,250
Revenue Bonds, Adventist Health System/Sunbelt Obligated Group,
Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 1.5% (0.9% of Total Investments)
10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A2 10,141,500
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
-----
48
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 15.4% (9.3% 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 $ 1,076,810
3,000 5.000%, 12/01/20 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,186,480
2,000 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,124,320
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 7,163,364
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AA 3,167,120
32,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA 8,268,124
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) 727,253
4,320 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA-(4) 4,620,197
190 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AA 191,632
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 74,686
6,190 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 AA(4) 6,604,359
5,045 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA 5,060,791
2000D, 5.750%, 1/01/30 - FGIC Insured
13,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998A, 1/09 at 101.00 AA 9,959,922
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) 8,404,480
7,750 6.000%, 1/01/30 (Pre-refunded 1/01/10) - MBIA Insured 1/10 at 101.00 AA(4) 8,164,005
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 3,370,350
1,800 6.000%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 1,985,202
1,050 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aa3 1,004,493
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/20 - AMBAC Insured
5,110 Illinois Finance Authority, Illinois, Northwestern University, 12/15 at 100.00 AAA 4,167,094
Revenue Bonds, Tender Option Bond Trust 3174, 10.395%,
12/01/42 (IF)
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,706,740
Hospital, Series 2008, 5.250%, 8/15/47 - AGC Insured (UB)
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health Services 2/18 at 100.00 AA 804,190
Corporation, Series 2008A, 5.500%, 2/01/40 - AMBAC Insured
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern Memorial 8/14 at 100.00 AA+(4) 5,467,550
Hospital, Series 2004A, 5.500%, 8/15/43 (Pre-refunded 8/15/14)
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AA(4) 10,285,800
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 5,027,100
Series 2000, 5.450%, 12/01/21 - MBIA Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,172,685
Bonds, McCormick Place Expansion Project, Series 2002A, 5.000%,
12/15/28 - MBIA Insured
986 Montgomery, Illinois, Lakewood Creek Project Special Assessment 3/16 at 100.00 BBB+ 744,588
Bonds, Series 2007, 4.700%, 3/01/30 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
135,171 Total Illinois 105,529,335
------------------------------------------------------------------------------------------------------------------------------------
-----
49
-----
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.9% (1.2% of Total Investments)
$ 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 AA $ 1,764,880
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 AA 3,261,028
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 AA 1,992,432
Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 -
AMBAC Insured
7,400 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 100.50 AA 6,229,912
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,040 Total Indiana 13,248,252
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.9% (0.6% 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 2,366,720
7,000 5.625%, 6/01/46 6/15 at 100.00 BBB 4,164,230
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Iowa 6,530,950
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.9% (0.6% of Total Investments)
4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aaa 4,782,934
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 and 6/14 at 100.00 AA 1,515,255
Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,335 Total Kansas 6,298,189
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.5% (0.3% of Total Investments)
1,000 Kentucky Economic Development Finance Authority, Louisville Arena 6/18 at 100.00 AAA 970,940
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 Refunding 2/12 at 100.00 AAA 2,682,025
Bonds, Project 74, Series 2002, 5.375%, 2/01/18 (Pre-refunded
2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,500 Total Kentucky 3,652,965
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.7% (2.2% of Total Investments)
10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, No Opt. Call AAA 10,447,900
Franciscan Missionaries of Our Lady Health System, 5.750%,
7/01/25 - FSA Insured (UB)
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 7,012,890
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AA(4) 5,846,555
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 2,067,622
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
27,390 Total Louisiana 25,374,967
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 8.4% (5.1% of Total Investments)
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/18 at 100.00 A3 339,440
Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/38
7,405 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA 7,715,344
Bonds, Massachusetts Institute of Technology, Series 2008,
5.500%, 7/01/32 (UB)
6,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102.00 BBB 5,196,480
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
12,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 100.00 AA 9,915,125
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA
Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101.00 AA 10,614,645
Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 - AMBAC
Insured
-----
50
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts (continued)
$ 1,375 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, MWRA 8/09 at 101.00 AAA $ 1,431,293
Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29
(Pre-refunded 8/01/09)
5,570 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, MWRA 8/09 at 101.00 AAA 5,679,339
Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AA(4) 10,593,000
Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) - FGIC
Insured
5,730 University of Massachusetts Building Authority, Senior Lien Project 11/10 at 100.00 AA(4) 6,044,520
Revenue Bonds, Series 2000-2, 5.250%, 11/01/20 (Pre-refunded
11/01/10) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
62,580 Total Massachusetts 57,529,186
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.6% (1.6% of Total Investments)
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AA 4,273,700
Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
3,790 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 3,766,161
Detroit City School District, Series 2005, 5.000%, 6/01/20 - FSA
Insured
7,425 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 A1(4) 7,775,089
Henry Ford Health System, Series 1999A, 6.000%, 11/15/24
(Pre-refunded 11/15/09)
3,050 Michigan Tobacco Settlement Finance Authority, Tobacco Settlement 6/18 at 100.00 Baa3 2,279,845
Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
19,265 Total Michigan 18,094,795
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.4% (0.8% of Total Investments)
Chaska, Minnesota, Electric Revenue Bonds, Generating Facility
Project, Series 2000A:
1,930 6.000%, 10/01/20 (Pre-refunded 10/01/10) 10/10 at 100.00 A3(4) 2,053,539
2,685 6.000%, 10/01/25 (Pre-refunded 10/01/10) 10/10 at 100.00 A3(4) 2,856,867
3,655 Dakota and Washington Counties Housing and Redevelopment Authority, No Opt. Call AAA 4,702,706
Minnesota, GNMA Mortgage-Backed Securities Program Single Family
Residential Mortgage Revenue Bonds, Series 1988, 8.450%, 9/01/19
(Alternative Minimum Tax) (ETM)
------------------------------------------------------------------------------------------------------------------------------------
8,270 Total Minnesota 9,613,112
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.6% (0.4% of Total Investments)
1,875 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 1,656,863
Bonds, Baptist Memorial Healthcare, Series 2008, 5.000%,
9/01/24 (UB)
2,500 Mississippi Hospital Equipment and Facilities Authority, Revenue 1/11 at 101.00 Aaa 2,661,375
Bonds, Forrest County General Hospital, Series 2000, 5.500%,
1/01/27 (Pre-refunded 1/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,375 Total Mississippi 4,318,238
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.6% (1.0% of Total Investments)
15,000 Kansas City Municipal Assistance Corporation, Missouri, Leasehold No Opt. Call AA 4,713,000
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 2,323,896
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 Revenue No Opt. Call AA 3,936,815
Bonds, Jordan Valley Park Projects, Series 2000A, 0.000%,
6/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,750 Total Missouri 10,973,711
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 5.9% (3.6% of Total Investments)
34,470 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AA(4) 36,757,424
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 AA 1,639,857
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 0.000%, 1/01/23 - AMBAC Insured
-----
51
-----
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nevada (continued)
$ 2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic Healthcare 7/17 at 100.00 A $ 1,918,700
West, Trust 2634, 0.777%, 7/01/31 (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,815 Total Nevada 40,315,981
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 5.6% (3.4% of Total Investments)
1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA 1,073,720
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 1,007,000
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) 2,344,747
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) 2,217,294
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 3,510,880
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 4,439,600
20,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA 3,846,000
20,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA 3,599,600
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 2,308,994
1,000 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,100,210
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 10,780,813
1,850 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,078,216
------------------------------------------------------------------------------------------------------------------------------------
92,810 Total New Jersey 38,307,074
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.9% (0.5% of Total Investments)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA-(4) 6,315,280
Bonds, Presbyterian Healthcare Services, Series 2001A, 5.500%,
8/01/21 (Pre-refunded 8/01/11)
------------------------------------------------------------------------------------------------------------------------------------
New York - 19.0% (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) 104,930
65 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 68,179
1,005 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 1,054,547
8,830 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 9,265,319
275 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 100.00 AA 255,459
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 2,128,073
Bonds, Mount Sinai School of Medicine, Series 1994A, 5.150%,
7/01/24 - MBIA Insured
20,000 Erie County Tobacco Asset Securitization Corporation, New York, 7/10 at 101.00 AAA 21,412,398
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 Bonds, 2/17 at 100.00 AA 939,404
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 1,212,863
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) 15,806,550
Fund Bonds, Series 2000A, 6.000%, 4/01/30 (Pre-refunded 4/01/10) -
FGIC Insured
-----
52
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 13,335 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA $ 10,733,875
Revenue Bonds, Series 2006B, 4.500%, 11/15/32 - FSA Insured (UB)
68 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 34,840
Revenue Bonds, Series 2006B, Drivers 1662, 5.904%, 11/15/32 - FSA
Insured (IF)
12,500 Nassau County Tobacco Settlement Corporation, New York, Tobacco 7/09 at 101.00 AAA 13,055,250
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 8,534,456
2,065 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 2,193,360
New York City, New York, General Obligation Bonds, Fiscal Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 AA 955,700
6,555 5.750%, 8/01/18 8/12 at 100.00 AAA 6,835,030
3,990 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 AA(4) 4,389,319
2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12)
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 8/12 at 100.00 AA 5,301,900
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 6,067,891
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,581,049
11,540 Port Authority of New York and New Jersey, Consolidated Revenue 11/12 at 101.00 AAA 11,623,203
Bonds, One Hundred Twenty-Eighth Series 2002, 5.000%, 11/01/20 -
FSA Insured
2,250 United Nations Development Corporation, New York, Senior Lien 1/09 at 100.00 A3 2,190,983
Revenue Bonds, Series 2004A, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
128,873 Total New York 130,744,578
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 3.0% (1.8% of Total Investments)
4,000 North Carolina Medical Care Commission, Health System Revenue Bonds, 10/17 at 100.00 AA 3,050,440
Mission St. Joseph's Health System, Series 2008, 4.500%, 10/01/31
(UB)
665 North Carolina Medical Care Commission, Hospital Revenue Bonds, Pitt 12/08 at 101.00 AA 592,176
County Memorial Hospital, Series 1998A, 4.750%, 12/01/28 - MBIA
Insured
7,405 North Carolina Medical Care Commission, Hospital Revenue Bonds, Pitt 12/08 at 101.00 AA(4) 7,494,156
County Memorial Hospital, Series 1998A, 4.750%, 12/01/28
(Pre-refunded 12/01/08) - MBIA Insured
7,500 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 1/13 at 100.00 AA 7,360,575
Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, Doing 1/18 at 100.00 AA- 2,422,260
Business as Carolinas HealthCare System, Health Care Refunding
Revenue Bonds, Series 2008A, 5.000%, 1/15/47 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,570 Total North Carolina 20,919,607
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 5.5% (3.3% of Total Investments)
10,000 American Municipal Power Ohio Inc., General Revenue Bonds, Series 2/18 at 100.00 A1 8,916,300
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 133,246
1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,261,818
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,158,840
5,730 5.875%, 6/01/47 6/17 at 100.00 BBB 3,584,745
-----
53
-----
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Ohio (continued)
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 $ 2,209,491
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,623,634
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 1,970,120
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 8,037,100
Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA Insured (UB)
9,850 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/09 at 102.00 N/R 7,895,563
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
46,055 Total Ohio 37,790,857
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 8.9% (5.4% of Total Investments)
1,675 Oklahoma Development Finance Authority, Health System Revenue Bonds, 8/18 at 100.00 AA- 1,435,676
Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38
6,040 Oklahoma Development Finance Authority, Revenue Bonds, Saint John 2/17 at 100.00 AA- 4,880,441
Health System, Series 2007, 5.000%, 2/15/42
2,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 AA 1,429,480
Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
17,510 Pottawatomie County Home Finance Authority, Oklahoma, Single Family No Opt. Call AAA 19,283,413
Mortgage Revenue Bonds, Series 1991A, 8.625%, 7/01/10 (ETM)
11,750 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 12/08 at 100.00 B- 11,646,483
American Airlines Inc., Series 2000B, 6.000%, 6/01/35 (Mandatory
put 12/01/08) (Alternative Minimum Tax)
23,005 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, 12/08 at 100.00 B- 22,833,381
American Airlines Inc., Series 2001B, 5.650%, 12/01/35 (Mandatory
put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
61,980 Total Oklahoma 61,508,874
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.5% (0.3% of Total Investments)
3,000 Deschutes County School District 1, Bend-La Pine, Oregon, General 6/11 at 100.00 Aaa 3,208,590
Obligation Bonds, Series 2001A, 5.500%, 6/15/18 (Pre-refunded
6/15/11) - FSA Insured
285 Oregon Housing and Community Services Department, Single Family 1/14 at 100.00 Aa2 264,098
Mortgage Revenue Bonds, Series 2004H, 5.125%, 1/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,285 Total Oregon 3,472,688
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.1% (2.5% of Total Investments)
220 Allentown, Pennsylvania, General Obligation Bonds, Series 2003, 10/13 at 100.00 Baa1 224,253
5.500%, 10/01/19 - FGIC Insured
2,875 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,904,613
Resource Recovery Revenue Refunding Bonds, Panther Creek Partners
Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax)
1,850 Falls Township Hospital Authority, Pennsylvania, FHA-Insured Revenue 2/09 at 100.00 AAA 1,862,229
Refunding Bonds, Delaware Valley Medical Center, Series 1992,
7.000%, 8/01/22
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/16 at 100.00 AA+ 1,065,885
Bonds, Series 2008, 4.650%, 10/01/31 (Alternative Minimum Tax)
(UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/14 at 100.00 AA 2,605,200
2004A, 5.500%, 12/01/31 - AMBAC Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 6,774,222
Ordinance, Series 2008, 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) 6,540,600
5,500 5.625%, 8/01/20 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3(4) 5,995,550
------------------------------------------------------------------------------------------------------------------------------------
28,345 Total Pennsylvania 27,972,552
------------------------------------------------------------------------------------------------------------------------------------
-----
54
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 3.0% (1.8% of Total Investments)
$ 2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior 7/18 at 100.00 BBB- $ 2,237,875
Lien Series 2008A, 6.000%, 7/01/44
5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 495,750
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 4,556,650
8/01/27 - FSA Insured
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 1,380,825
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 3,560,500
55,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call AA 2,332,000
3,750 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 A+ 1,791,375
Bonds, Trust 2653, 0.777%, 8/01/57 (IF)
1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,370,310
Series 2001A, 5.500%, 7/01/29
3,695 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,786,584
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
127,945 Total Puerto Rico 20,511,869
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.2% (0.1% of Total Investments)
1,655 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 1,208,630
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 10.8% (6.6% of Total Investments)
24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA(4) 27,213,817
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 5,864,470
5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,139,640
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 5,241,624
3,000 5.250%, 2/15/24 - MBIA Insured 8/14 at 100.00 AA 2,941,080
13,615 South Carolina Transportation Infrastructure Bank, Junior Lien 10/11 at 100.00 Aa3(4) 14,497,252
Revenue Bonds, Series 2001B, 5.125%, 10/01/21 (Pre-refunded
10/01/11) - AMBAC Insured
12,670 Tobacco Settlement Revenue Management Authority, South Carolina, 5/16 at 100.00 BBB(4) 13,577,299
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/28 (Pre-refunded 5/15/16)
------------------------------------------------------------------------------------------------------------------------------------
70,230 Total South Carolina 74,475,182
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.4% (0.2% of Total Investments)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 2,658,930
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
Texas - 16.9% (10.2% of Total Investments)
535 Alamo Community College District, Bexar County, Texas, Combined 11/11 at 100.00 AAA 562,194
Fee Revenue Refunding Bonds, Series 2001, 5.375%, 11/01/16 -
FSA Insured
465 Alamo Community College District, Bexar County, Texas, Combined 11/11 at 100.00 Aaa 499,196
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 Refunding No Opt. Call Caa1 9,777,781
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 Williamson 1/15 at 100.00 AA 4,144,085
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 -
FGIC Insured
5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 4,469,250
Refunding and Improvement Bonds, Series 2001A, 5.625%, 11/01/21 -
FGIC Insured (Alternative Minimum Tax)
-----
55
-----
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 2,700 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue 11/11 at 100.00 AA $ 2,330,100
Bonds, Series 2001G, 5.250%, 11/15/30 - MBIA Insured
14,975 Harris County-Houston Sports Authority, Texas, Third Lien Revenue 11/24 at 55.69 AA 2,235,019
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) 23,706,223
Refunding Bonds, Series 2000B, 5.250%, 12/01/30 (Pre-refunded
12/01/10) - FGIC Insured
6,000 Leander Independent School District, Williamson and Travis 8/14 at 33.33 AAA 1,187,820
Counties, Texas, General Obligation Bonds, Series 2006, 0.000%,
8/15/34
17,655 Matagorda County Navigation District 1, Texas, Revenue Refunding 11/08 at 102.00 AA 15,176,238
Bonds, Houston Industries Inc., Series 1998B, 5.150%, 11/01/29 -
MBIA Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, Revenue 11/08 at 100.00 BBB 7,435,035
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 1,898,560
Revenue Refunding Bonds, Series2002A, 5.750%, 10/01/21 - RAAI
Insured
14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,158,715
General Obligation Bonds, Series1999, 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 11,719,682
Bonds, New Series 1992, 5.000%, 2/01/17 (ETM)
3,750 Spring Branch Independent School District, Harris County, Texas, 2/11 at 100.00 AAA 3,947,250
Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/23 (Pre-refunded 2/01/11)
4,375 Tarrant County Cultural & Educational Facilities Financing 11/17 at 100.00 AA- 2,413,119
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2008, Trust 1197, 7.563%, 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 1,371,237
9,110 0.000%, 8/15/39 8/15 at 28.63 AAA 1,283,326
6,610 0.000%, 8/15/42 8/15 at 24.42 AAA 764,513
7,110 0.000%, 8/15/43 8/15 at 23.11 AAA 769,160
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AA(4) 5,294,150
Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/22
(Pre-refunded 8/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
167,280 Total Texas 116,142,653
------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.8% (1.1% of Total Investments)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue Refunding Bonds, 2/09 at 100.00 BB- 5,687,770
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 6,808,340
Power Project, Series 2008, 5.000%, 4/01/25 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
12,955 Total Utah 12,496,110
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 2.3% (1.4% of Total Investments)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100.00 AA 3,100,920
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 11,287,186
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+ 645,762
Series 1999F, 5.000%, 5/01/15(Alternative Minimum Tax)
-----
56
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Virginia (continued)
Virginia Resources Authority, Water System Revenue Refunding Bonds,
Series 2002:
$ 500 5.000%, 4/01/18 4/12 at 102.00 AA $ 515,600
500 5.000%, 4/01/19 4/12 at 102.00 AA 512,640
------------------------------------------------------------------------------------------------------------------------------------
16,705 Total Virginia 16,062,108
------------------------------------------------------------------------------------------------------------------------------------
Washington - 10.3% (6.2% of Total Investments)
6,750 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 6,866,168
Columbia Generating Station - Nuclear Project 2, Series 2002B,
5.350%, 7/01/18 - FSA Insured
2,500 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 Aaa 2,645,500
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, 5.625%, 8/10 at 100.00 AA 6,181,400
2/01/24 - MBIA Insured (Alternative Minimum Tax)
13,400 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 Aa3 13,451,590
Series 2000, 5.400%, 12/01/25
5,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/16 at 100.00 AA 3,839,450
Providence Health Care Services, Series 2006A, 4.625%, 10/01/34 -
FGIC Insured
4,945 Washington State Tobacco Settlement Authority, Tobacco Settlement 6/13 at 100.00 BBB 4,399,764
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
18,145 Washington, General Obligation Bonds, Series 2001-02A, 5.000%, 7/11 at 100.00 AAA 18,125,041
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 7,019,810
7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 7,970,985
------------------------------------------------------------------------------------------------------------------------------------
72,650 Total Washington 70,499,708
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 1.7% (1.0% of Total Investments)
170 Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco 6/12 at 100.00 BBB 161,956
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27
7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding Bonds, 12/08 at 102.00 Aaa 7,721,251
Dairyland Power Cooperative, Series 1997A, 5.450%, 9/01/14 -
AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 2,531,910
Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/29
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,293,264
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
------------------------------------------------------------------------------------------------------------------------------------
12,815 Total Wisconsin 11,708,381
------------------------------------------------------------------------------------------------------------------------------------
-----
57
-----
NQU | Nuveen Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.5% (0.3% of Total Investments)
$ 4,000 Wyoming Municipal Power Agency Power Supply System Revenue Bonds, 1/18 at 100.00 A2 $ 3,362,000
2008 Series A, 5.375%, 1/01/42
------------------------------------------------------------------------------------------------------------------------------------
$ 1,555,654 Total Investments (cost $1,193,404,343) - 165.1% 1,135,216,249
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.0)% (41,558,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 10,309,369
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.6)% (5) (416,375,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 687,592,618
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade. The Portfolio of Investments may reflect the
ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October31, 2008. 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 36.7%.
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 accompanying notes to financial statements.
-----
58
-----
NPF | Nuveen Premier Municipal Income Fund, Inc.
| Portfolio of INVESTMENTS
October 31, 2008
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 $ 1,634,980
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 1,026,972
400 5.000%, 11/15/30 11/15 at 100.00 Baa1 288,580
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3(4) 1,087,690
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
4,600 Total Alabama 4,038,222
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.1% (0.6% of Total Investments)
2,000 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 101.00 AAA 1,933,880
Bonds, Series 1999A, 6.000%, 6/01/49 - MBIA Insured
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 532,000
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alaska 2,465,880
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 8.3% (4.7% of Total Investments)
Glendale Industrial Development Authority, Arizona, Revenue Bonds,
John C. Lincoln Health Network, Series 2005B:
100 5.250%, 12/01/24 12/15 at 100.00 BBB 81,101
135 5.250%, 12/01/25 12/15 at 100.00 BBB 107,771
7,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 4,657,310
Series 2005B, 0.000%, 7/01/39 - FGIC Insured
7,500 Salt River Project Agricultural Improvement and Power District, 1/13 at 100.00 Aa1 7,377,075
Arizona, Electric System Revenue Bonds, Series 2002B, 5.000%,
1/01/25 (UB)
6,000 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 Aa1 6,310,200
Arizona, Electric System Revenue Refunding Bonds, Series 2002A,
5.250%, 1/01/15
1,200 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 726,564
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
21,935 Total Arizona 19,260,021
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.9% (0.5% of Total Investments)
2,155 Arkansas Development Finance Authority, State Facility Revenue 11/15 at 100.00 AAA 2,109,120
Bonds, Department of Correction Special Needs Unit Project,
Series 2005B, 5.000%, 11/01/25 - FSA Insured
9 Stuttgart Public Facilities Board, Arkansas, Single Family No Opt. Call Aaa 8,878
Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
2,164 Total Arkansas 2,117,998
------------------------------------------------------------------------------------------------------------------------------------
-----
59
-----
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California - 23.2% (13.3% of Total Investments)
$ 10,000 Anaheim Public Finance Authority, California, Public Improvement 9/17 at 100.00 AA $ 7,391,000
Project Lease Bonds, Series 2007A-1, 4.375%, 3/01/37 - FGIC
Insured
5,690 California Department of Veterans Affairs, Home Purchase Revenue 6/12 at 101.00 AA 5,680,668
Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured
1,350 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa1 1,228,338
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,975 California Health Facilities Financing Authority, Revenue Bonds, No Opt. Call A 1,912,314
Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26
(Mandatory put 7/01/14)
500 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 324,160
Bonds, Daughters of Charity Health System, Series 2005A,
5.000%, 7/01/39
1,600 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,365,616
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
950 California Statewide Community Development Authority, Revenue 5/18 at 100.00 AA- 634,956
Bonds, Sutter Health, Series 2008B, Tender Option Bond Trust
3175, 11.640%, 11/15/48 (IF)
California, General Obligation Bonds, Series 2004:
4,000 5.000%, 2/01/23 2/14 at 100.00 A+ 3,853,600
4,900 5.000%, 6/01/23 - AMBAC Insured 12/14 at 100.00 AA 4,795,581
1,000 Chula Vista, California, Industrial Development Revenue Bonds, San 6/14 at 102.00 A2 915,160
Diego Gas and Electric Company, Series 1996A, 5.300%, 7/01/21
25,000 Foothill/Eastern Transportation Corridor Agency, California, Toll No Opt. Call AAA 17,230,250
Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17 (ETM)
3,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,066,750
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 508,469
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 5,975,215
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 82,752
110 5.000%, 9/01/23 9/15 at 102.00 Baa3 88,191
------------------------------------------------------------------------------------------------------------------------------------
67,130 Total California 54,053,020
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.5% (2.0% of Total Investments)
1,000 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- 755,160
Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29
1,150 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 958,399
Medical Center, Series 2004, 5.000%, 9/01/25
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 3/15 at 100.00 BBB+ 293,072
Health Care, Series 2005F, 5.000%, 3/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 12/09 at 101.00 Aaa 1,053,520
Healthcare Inc., Series 1999A, 5.750%, 12/01/23 (Pre-refunded
12/01/09) - FSA Insured
750 Colorado Health Facilities Authority, Revenue Bonds, Vail Valley 1/15 at 100.00 BBB+ 686,348
Medical Center, Series 2004, 5.000%, 1/15/17
Denver, Colorado, Airport Revenue Bonds, Trust 2365:
2,770 2.901%, 11/15/23 - FGIC Insured (IF) 11/16 at 100.00 AA 1,909,361
1,700 1.184%, 11/15/24 - FGIC Insured (IF) 11/16 at 100.00 AA 1,150,254
2,235 1.186%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 AA 1,440,279
------------------------------------------------------------------------------------------------------------------------------------
11,005 Total Colorado 8,246,393
------------------------------------------------------------------------------------------------------------------------------------
-----
60
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.7% (0.4% of Total Investments)
$ 2,020 Connecticut Development Authority, Pollution Control Revenue 4/09 at 102.00 Baa1 $ 1,596,467
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.8% (1.1% of Total Investments)
1,700 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 1,140,785
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, Florida, 10/12 at 100.00 Baa2 2,349,950
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- 786,750
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (UB)
------------------------------------------------------------------------------------------------------------------------------------
5,200 Total Florida 4,277,485
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 4.9% (2.8% of Total Investments)
8,050 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AA 7,126,504
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 4,197,157
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,155 Total Georgia 11,323,661
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.9% (0.5% of Total Investments)
2,250 Hawaii Department of Budget and Finance, Special Purpose Revenue 1/09 at 101.00 AA 2,158,650
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)
85 Idaho Housing and Finance Association, Single Family Mortgage 1/09 at 100.00 Aa1 86,479
Bonds, Series 1996E, 6.350%, 7/01/14 (Alternative Minimum Tax)
500 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 379,825
Participation, Madison Memorial Hospital, Series 2006, 5.250%,
9/01/26
------------------------------------------------------------------------------------------------------------------------------------
585 Total Idaho 466,304
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 11.3% (6.4% of Total Investments)
655 Chicago Public Building Commission, Illinois, General Obligation No Opt. Call AA(4) 720,513
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, Series No Opt. Call AA 3,664,202
1999, 0.000%, 1/01/24 - FGIC Insured
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, No Opt. Call AA 8,034,370
5.750%, 11/01/30 - AMBAC Insured (5)
200 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 154,814
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa3 771,390
Medical Center, Series 2002, 5.500%, 5/15/32
1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2/12 at 100.00 AA 1,554,690
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 788,681
1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,578,185
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 4,540,271
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AA 4,340,493
------------------------------------------------------------------------------------------------------------------------------------
44,475 Total Illinois 26,147,609
------------------------------------------------------------------------------------------------------------------------------------
-----
61
-----
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.2% (1.8% of Total Investments)
$ 2,275 Anderson School Building Corporation, Madison County, Indiana, 1/14 at 100.00 AAA $ 2,484,368
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 2,661,170
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+ 995,163
1,000 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB- 762,360
Madison Center Inc., Series 2005, 5.250%, 2/15/28
605 St. Joseph County PHM Elementary/Middle School Building No Opt. Call A 609,114
Corporation, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
------------------------------------------------------------------------------------------------------------------------------------
11,310 Total Indiana 7,512,175
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.0% (0.6% of Total Investments)
4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue 6/15 at 100.00 BBB 2,352,040
Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.2% (0.1% of Total Investments)
510 Louisville and Jefferson County Metropolitan Government, Kentucky, 10/16 at 100.00 N/R 381,215
Industrial Building Revenue Bonds, Sisters of Mercy of the
Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 6.3% (3.6% of Total Investments)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized Mortgage 3/09 at 100.00 AAA 1,310,144
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 1,168,815
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
825 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 669,710
8,880 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 6,808,208
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 334
Residuals 660-3, 10.838%, 5/01/41 - FGIC Insured (IF)
3,950 Morehouse Parish, Louisiana, Pollution Control Revenue Bonds, No Opt. Call BBB 3,705,614
International Paper Company, Series 2002A, 5.700%, 4/01/14
1,375 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 983,730
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
17,845 Total Louisiana 14,646,555
------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.3% (0.7% of Total Investments)
3,220 Maine State Housing Authority, Single Family Mortgage Purchase 5/13 at 100.00 AA+ 3,039,133
Bonds, Series 2004A-2, 5.000%, 11/15/21 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.2% (0.7% of Total Investments)
2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 1,705,780
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 1,074,600
Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%,
7/01/36 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,550 Total Maryland 2,780,380
------------------------------------------------------------------------------------------------------------------------------------
-----
62
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.7% (1.0% of Total Investments)
$ 1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB $ 833,880
Hampshire College, Series 2004, 5.625%, 10/01/24
3,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A(4) 3,120,030
Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Massachusetts 3,953,910
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.5% (2.6% of Total Investments)
2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 BBB 2,911,106
5.250%, 4/01/17 - SYNCORA GTY Insured
4,600 Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second 7/16 at 100.00 AA 3,662,474
Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 Aa2 856,950
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 107,064
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, Detroit 12/12 at 100.00 AA 2,990,334
Metropolitan Airport, Series 2002C, 5.375%, 12/01/19 - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
11,720 Total Michigan 10,527,928
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 5.5% (3.1% of Total Investments)
4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 3,727,385
Inc., Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A-(4) 1,070,310
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 2,142,661
Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003,
6.000%, 12/01/20
Minnesota Higher Education Facilities Authority, Revenue Bonds,
University of St. Thomas, Series 2004-5Y:
530 5.250%, 10/01/19 10/14 at 100.00 A2 522,750
1,500 5.250%, 10/01/34 10/14 at 100.00 A2 1,336,725
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, Series 10/14 at 100.00 A3 966,500
2004A, 5.250%, 10/01/19
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, Office 12/13 at 100.00 AA+ 3,050,940
Building at Cedar Street, Series 2003, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
13,670 Total Minnesota 12,817,271
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.9% (0.5% of Total Investments)
2,325 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,054,510
Bonds, Baptist Memorial Healthcare, Series 2004, 5.000%,
9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.1% (0.6% of Total Investments)
100 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 84,920
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+ 2,482,934
Facilities Revenue Bonds, Freeman Health System, Series 2004,
5.500%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Missouri 2,567,854
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 2.5% (1.4% of Total Investments)
1,580 Douglas County Hospital Authority 2, Nebraska, Health Facilities No Opt. Call Aa3 1,523,720
Revenue Bonds, Nebraska Medical Center, Series 2003, 5.000%,
11/15/16
1,440 Grand Island, Nebraska, Electric System Revenue Bonds, Series 3/09 at 100.00 A(4) 1,535,846
1977, 6.100%, 9/01/12 (ETM)
-----
63
-----
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nebraska (continued)
$ 2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call A2 $ 2,329,344
Program, Series 1993A-5B, 6.250%, 6/01/18 - MBIA Insured
(Alternative Minimum Tax)
515 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 457,650
Revenue Bonds, Nebraska City 2, Series 2006A, 14.495%, 2/01/49 -
AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
5,885 Total Nebraska 5,846,560
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.1% (1.2% of Total Investments)
5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily Housing 7/10 at 101.00 Aaa 4,688,150
Remarketed Revenue Bonds, Countryside LP, Series 1994, 6.100%,
7/01/24 (Alternative Minimum Tax)
90 New Hampshire Municipal Bond Bank, Revenue Bonds, Coe-Brown No Opt. Call N/R 89,294
Northwood Academy, Series 1994, 7.250%, 5/01/09
------------------------------------------------------------------------------------------------------------------------------------
5,090 Total New Hampshire 4,777,444
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 6.4% (3.7% of Total Investments)
1,000 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AA- 1,001,060
Construction Bonds, Series 2005P, 5.250%, 9/01/24
New Jersey State Transportation Trust Fund Authority, Revenue
Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured (UB) No Opt. Call AA 4,807,500
10,000 0.000%, 12/15/36 - AMBAC Insured (UB) No Opt. Call AA 1,799,800
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,291,450
System Bonds, Series 2003C, 5.500%, 6/15/24 (Pre-refunded
6/15/13)
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA 1,482,255
5.000%, 1/01/19 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,501,150
5.000%, 1/01/25 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
43,000 Total New Jersey 14,883,215
------------------------------------------------------------------------------------------------------------------------------------
New York - 21.8% (12.4% of Total Investments)
10,000 Dormitory Authority of the State of New York, Revenue Bonds, State 5/10 at 101.00 AAA 10,601,200
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- 1,528,935
Appropriation Lease Bonds, Upstate Community Colleges, Series
2004B, 5.250%, 7/01/19
10 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AA 4,119
Driver Trust 1649, Series 2006A, 4.745%, 2/15/47 - MBIA Insured
(IF)
2,180 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AA 1,551,441
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
7,500 Long Island Power Authority, New York, Electric System Revenue 6/16 at 100.00 AA 7,257,150
Bonds, Residual Series 2006A, 5.000%, 12/01/25 - FGIC Insured
(UB)
5,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AA 4,775,500
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 - FGIC
Insured
2,000 New York City Municipal Water Finance Authority, New York, Water 12/14 at 100.00 AAA 1,983,520
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 Series 10/13 at 100.00 AA 4,224,227
2003D, 5.250%, 10/15/22 (UB)
1,200 New York City, New York, General Obligation Bonds, Fiscal Series 8/14 at 100.00 AA 1,245,864
2004B, 5.250%, 8/01/15
1,000 New York City, New York, General Obligation Bonds, Series 2004C-1, 8/14 at 100.00 AA 988,780
Trust 3217, 13.994%, 8/15/20 (IF)
910 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 A 542,342
Revenue Bonds, Trust 2364, Series 2005, 8.714%, 11/15/44 -
AMBAC Insured (IF)
3,250 New York State Municipal Bond Bank Agency, Special School Purpose 6/13 at 100.00 A+ 3,223,708
Revenue Bonds, Series 2003C, 5.250%, 6/01/22
-----
64
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
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 $ 6,395,981
2,580 5.000%, 1/01/26 - FSA Insured (UB) 7/15 at 100.00 AAA 2,544,783
1,850 New York State Urban Development Corporation, State Personal Income 3/15 at 100.00 AAA 1,830,372
Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/24 - FSA Insured
(UB)
1,000 New York State Urban Development Corporation, Subordinate Lien 7/14 at 100.00 A 987,220
Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22
1,000 Rensselaer County Industrial Development Agency, New York, Civic 3/16 at 100.00 A 929,720
Facility Revenue Bonds, Rensselaer Polytechnic Institute, Series
2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
51,705 Total New York 50,614,862
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 4.3% (2.5% of Total Investments)
10,300 North Carolina Eastern Municipal Power Agency, Power System Revenue No Opt. Call AA 10,088,232
Refunding Bonds, Series 1993B, 6.000%, 1/01/22 - CAPMAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.8% (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 82,299
1,050 5.875%, 6/01/30 6/17 at 100.00 BBB 736,061
1,055 5.750%, 6/01/34 6/17 at 100.00 BBB 702,630
2,355 5.875%, 6/01/47 6/17 at 100.00 BBB 1,473,312
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., Series No Opt. Call BBB+ 3,258,760
2004, 4.250%, 4/01/33 (Mandatory put 4/01/14) (Alternative
Minimum Tax)
250 Port of Greater Cincinnati Development Authority, Ohio, Economic 10/16 at 100.00 N/R 204,725
Development Revenue Bonds, Sisters of Mercy of the Americas,
Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
8,815 Total Ohio 6,457,787
------------------------------------------------------------------------------------------------------------------------------------
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 384,080
450 5.375%, 9/01/36 9/16 at 100.00 BBB 328,262
2,725 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 2,119,205
Bonds, Saint Francis Health System, Series 2006, 5.000%, 12/15/36
(UB)
44 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 24,436
Bonds, Saint Francis Health System, Series 2006, Trust 3500,
7.262%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
3,719 Total Oklahoma 2,855,983
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.3% (0.7% of Total Investments)
Oregon, General Obligation Bonds, State Board of Higher Education,
Series 2004A:
1,795 5.000%, 8/01/21 8/14 at 100.00 AA 1,801,085
1,240 5.000%, 8/01/23 8/14 at 100.00 AA 1,239,901
------------------------------------------------------------------------------------------------------------------------------------
3,035 Total Oregon 3,040,986
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.3% (0.8% of Total Investments)
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AA 1,836,720
Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
1,240 Falls Township Hospital Authority, Pennsylvania, FHA-Insured Revenue 2/09 at 100.00 AAA 1,248,196
Refunding Bonds, Delaware Valley Medical Center, Series 1992,
7.000%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
3,240 Total Pennsylvania 3,084,916
------------------------------------------------------------------------------------------------------------------------------------
-----
65
-----
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.9% (1.6% of Total Investments)
$ 7,430 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB $ 6,643,609
Settlement Asset-Backed Bonds, Series 2002A, 6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 8.4% (4.8% of Total Investments)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,377,375
Purchase Revenue Bonds, Securing Assets for Education, Series
2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 AA- 4,236,156
Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/23
835 Greenville County School District, South Carolina, Installment 12/13 at 100.00 AA 844,302
Purchase Revenue Bonds, Series 2003, Trust 3219, 14.010%,
12/01/19 (IF)
3,620 Greenville, South Carolina, Hospital Facilities Revenue Refunding 5/13 at 100.00 AA 3,477,951
Bonds, Series 2003A, 5.250%, 5/01/21 - AMBAC Insured
310 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A-(4) 338,818
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- 1,015,796
Development Revenue Bonds, Bon Secours Health System Inc., Series
2002B, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
4,895 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+(4) 5,428,310
605 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+(4) 680,698
1,025 Tobacco Settlement Revenue Management Authority, South Carolina, 5/12 at 100.00 BBB(4) 1,066,031
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%,
5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
19,385 Total South Carolina 19,465,437
------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.7% (0.4% of Total Investments)
1,750 South Dakota Health and Educational Facilities Authority, Revenue 11/14 at 100.00 AA- 1,600,935
Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.5% (0.9% of Total Investments)
2,060 Johnson City Health and Educational Facilities Board, Tennessee, 7/23 at 100.00 AA(4) 2,062,987
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, Tennessee, 7/16 at 100.00 BBB+ 1,127,360
Revenue Bonds, Mountain States Health Alliance, Series 2006A,
5.500%, 7/01/36
400 Sumner County Health, Educational, and Housing Facilities Board, 11/17 at 100.00 N/R 296,672
Tennessee, Revenue Refunding Bonds, Sumner Regional Health System
Inc., Series 2007, 5.500%, 11/01/37
------------------------------------------------------------------------------------------------------------------------------------
4,060 Total Tennessee 3,487,019
------------------------------------------------------------------------------------------------------------------------------------
Texas - 8.0% (4.6% of Total Investments)
1,075 Brazos River Authority, Texas, Pollution Control Revenue Bonds, TXU 10/13 at 101.00 Caa1 692,311
Energy Company LLC Project, Series 2003C, 6.750%, 10/01/38
(Alternative Minimum Tax)
3,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AA 2,919,150
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- 341,136
600 5.125%, 8/15/26 No Opt. Call BBB- 470,292
2,265 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/13 at 100.00 AA 2,225,657
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 291,804
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
-----
66
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 1,710 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA $ 1,811,967
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
(Pre-refunded 2/15/11)
950 North Texas Thruway Authority, Second Tier System Revenue Refunding 1/18 at 100.00 A3 802,028
Bonds, Series 2008, 5.750%, 1/01/38
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, TXU 11/15 at 100.00 Caa1 566,540
Electric Company, Series 2001C, 5.200%, 5/01/28
3,000 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 2,438,100
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%, 2/15/36
(UB)
275 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 181,255
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 7.369%, 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 3,599,448
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AA 2,284,043
------------------------------------------------------------------------------------------------------------------------------------
20,340 Total Texas 18,623,731
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.2% (0.1% of Total Investments)
330 Utah Housing Corporation, Single Family Mortgage Bonds, Series 7/11 at 100.00 Aaa 297,373
2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
25 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1/09 at 100.00 Aaa 25,458
1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
95 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1/09 at 101.00 Aaa 95,078
1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
450 Total Utah 417,909
------------------------------------------------------------------------------------------------------------------------------------
Washington - 8.8% (5.0% of Total Investments)
2,500 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 Aaa 2,645,500
Columbia Generating Station - Nuclear Project 2, Series 2002C,
5.750%, 7/01/17 - MBIA Insured
7,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/13 at 100.00 AAA 7,360,430
Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB)
3,160 King County Public Hospital District 2, Washington, Limited Tax 6/11 at 101.00 AA 3,066,369
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 Bonds, No Opt. Call Baa2 889,850
Skagit Valley Hospital, Series 2003, 6.000%, 12/01/23
6,220 Washington, General Obligation Refunding Bonds, Series 1992A and No Opt. Call AA+ 6,460,341
1992AT-6, 6.250%, 2/01/11
------------------------------------------------------------------------------------------------------------------------------------
19,880 Total Washington 20,422,490
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.9% (1.1% of Total Investments)
2,000 West Virginia Water Development Authority, Infrastructure Revenue 10/13 at 101.00 AAA 2,220,440
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 Revenue 11/13 at 101.00 AA 2,136,778
Bonds, Series 2003B, 5.250%, 11/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,150 Total West Virginia 4,357,218
------------------------------------------------------------------------------------------------------------------------------------
-----
67
-----
NPF | Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 6.9% (4.0% of Total Investments)
$ 5,670 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- $ 5,225,130
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/30
160 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 114,202
Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 913,428
Bonds, Fort Healthcare Inc., Series 2004, 5.375%, 5/01/18
205 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 180,847
Bonds, Froedtert and Community Health Obligated Group, Series
2001, 5.375%, 10/01/30
2,145 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA-(4) 2,316,813
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, Revenue 2/10 at 101.00 BBB+ 5,025,798
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/18 - RAAI
Insured
2,500 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AA 2,368,450
5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
16,680 Total Wisconsin 16,144,668
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.4% (0.2% of Total Investments)
1,350 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, FMC 12/15 at 100.00 BBB 882,063
Corporation, Series 2005, 5.600%, 12/01/35 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 481,913 Total Long-Term Investments (cost $428,112,805) - 168.8% 392,479,745
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 6.3% (3.6% of Total Investments)
2,990 King County, Washington, Sewer Revenue Bonds, Variable Rate Demand A-1 2,989,500
Obligations, Series 2001, Trust 554, 3.000%, 1/01/19 - FGIC
Insured (6)
2,500 Maryland Health and Higher Educational Facilities Authority, A-1+ 2,500,000
Variable Rate Demand Obligations, Goucher College, Series 2007,
1.450%, 7/01/37 (6)
6,855 New Jersey State Transportation Trust Fund Authority, Variable Rate VMIG-1 6,855,000
Demand Obligations, Series 2006C, ROCS 684Z, 2.720%, 12/15/35 -
AMBAC Insured (6)
1,300 Red River Authority, Texas, Pollution Control Revenue Bonds, A-1+ 1,300,000
Southwestern Public Service Company, Variable Rate Demand
Obligations, Series 1996, 8.300%, 7/01/16 - AMBAC Insured (6)
1,000 Virginia Resources Authority, Clean Water State Revolving Fund A-1 1,000,000
Revenue Bonds, Variable Rate Demand Obligations, Series 2008, Trust
2917, 5.690%, 10/01/28 (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 14,645 Total Short-Term Investments (cost $14,644,500) 14,644,500
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $442,757,305) - 175.1% 407,124,245
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (22.7)% (52,830,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 5,072,920
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.6)% (7) (126,850,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 232,517,165
=====================================================================================================================
-----
68
-----
Forward Swaps outstanding at October 31, 2008:
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)
------------------------------------------------------------------------------------------------------------------------------------
Citigroup Inc. $36,000,000 Receive 3-Month USD-LIBOR 5.299% Semi-Annually 11/07/08 11/07/28 $(3,882,335)
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as
of October 31, 2008. 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) Portion of investment has been pledged to collateralize the net payment
obligations under forward swap contracts.
(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 31.2%.
(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.
(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 accompanying notes to financial statements.
-----
69
-----
NMZ | Nuveen Municipal High Income Opportunity Fund
| Portfolio of INVESTMENTS
October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
National - 2.6% (1.5% 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 Minimum 4/19 at 100.00 Aaa $ 4,871,900
Tax)
1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) (Alternative Minimum 4/15 at 100.00 Aaa 1,009,870
Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total National 5,881,770
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 0.9% (0.5% of Total Investments)
2,000 Bessemer, Alabama, General Obligation Warrants, Series 2007, 2/17 at 102.00 N/R 1,402,340
6.500%, 2/01/37
1,000 Birmingham Special Care Facilities Financing Authority, Alabama, 11/15 at 100.00 Baa1 721,450
Revenue Bonds, Baptist Health System Inc., Series 2005A, 5.000%,
11/15/30
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alabama 2,123,790
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 6.6% (3.9% of Total Investments)
479 Estrella Mountain Ranch Community Facilities District, Goodyear, 7/10 at 102.00 N/R 464,189
Arizona, Special Assessment Lien Bonds, Series 2001A, 7.875%,
7/01/25
2,000 Maricopa County Industrial Development Authority, Arizona, 11/08 at 101.00 N/R 1,918,700
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, Senior 1/11 at 103.00 BB 4,989,802
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 228,509
790 7.250%, 11/01/23 11/11 at 103.00 N/R 738,445
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,554,733
990 Pima County Industrial Development Authority, Arizona, Charter 7/16 at 100.00 N/R 695,277
School Revenue Bonds, Franklin Phonetic Charter School, Series
2006, 5.750%, 7/01/36
1,645 Pima County Industrial Development Authority, Arizona, Charter 7/14 at 100.00 N/R(4) 1,912,049
School Revenue Bonds, Heritage Elementary School, Series 2004,
7.500%, 7/01/34 (Pre-refunded 7/01/14)
550 Pima County Industrial Development Authority, Arizona, Charter 12/14 at 100.00 BBB- 424,463
School Revenue Bonds, Noah Webster Basic Schools Inc., Series
2004, 6.125%, 12/15/34
500 Pima County Industrial Development Authority, Arizona, Charter No Opt. Call AAA 570,505
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- 939,079
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 School 9/14 at 100.00 BBB- 819,600
Revenue Bonds, Arizona Agribusiness and Equine Center Charter
School, Series 2004A, 5.850%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
17,774 Total Arizona 15,255,351
------------------------------------------------------------------------------------------------------------------------------------
-----
70
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California - 16.2% (9.6% of Total Investments)
$ 8,000 Alameda Public Finance Authority, California, Revenue Bond No Opt. Call N/R $ 4,640,000
Anticipation Notes, Alameda Power and Telecom, Series 2004,
7.000%, 6/01/09
940 California Health Facilities Financing Authority, Hospital Revenue 11/08 at 100.00 CCC 725,379
Bonds, Downey Community Hospital, Series 1993, 5.750%, 5/15/15
3,125 California Health Facilities Financing Authority, Revenue Bonds, 8/18 at 100.00 AA- 2,304,188
Sutter Health, Tender Option Series 2008A, Bond Trust 3229,
11.559%, 8/15/38 (IF)
4,000 California Statewide Communities Development Authority, Revenue No Opt. Call BB 2,646,480
Bonds, EnerTech Regional Biosolids Project, Series 2007A,
5.500%, 12/01/33 (Alternative Minimum Tax)
3,220 California Statewide Community Development Authority, Revenue 5/18 at 100.00 AA- 2,361,033
Bonds, Sutter Health, Series 2008C, Trust 3175, 11.118%,
11/15/38 (IF)
2,925 California Statewide Community Development Authority, Revenue 3/14 at 102.00 N/R 2,580,201
Bonds, Epidaurus Project, Series 2004A, 7.750%, 3/01/34
1,320 California Statewide Community Development Authority, Revenue 5/18 at 100.00 AA- 882,254
Bonds, Sutter Health, Series 2008B, Tender Option Bond Trust
3175, 11.640%, 11/15/48 (IF)
1,005 California Statewide Community Development Authority, Subordinate 1/14 at 100.00 N/R 882,692
Lien Multifamily Housing Revenue Bonds, Corona Park
Apartments, Series 2004I-S, 7.750%, 1/01/34 (Alternative
Minimum Tax)
5,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 6,214,615
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%,
6/01/39 (Pre-refunded 6/01/13)
2,500 Independent Cities Lease Finance Authority, California, Revenue 5/14 at 100.00 N/R 2,026,725
Bonds, El Granada Mobile Home Park, Series 2004A, 6.450%, 5/15/44
1,015 Independent Cities Lease Finance Authority, California, Subordinate 5/14 at 100.00 N/R 782,210
Lien Revenue Bonds, El Granada Mobile Home Park, Series 2004B,
6.500%, 5/15/44
1,200 Lake Elsinore, California, Special Tax Bonds, Community Facilities 9/13 at 102.00 N/R 941,496
District 2003-2 Improvement Area A, Canyon Hills, Series 2004A,
5.950%, 9/01/34
3,400 Lee Lake Water District, Riverside County, California, Special Tax 9/13 at 102.00 N/R 2,667,572
Bonds, Community Facilities District 3, Series 2004, 5.950%,
9/01/34
2,950 Los Angeles Regional Airports Improvement Corporation, California, 12/12 at 102.00 B- 2,143,913
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 617,624
California, Special Tax Bonds, Community Facilities District,
Series 2004, 5.550%, 9/01/29
2,250 San Diego County, California, Certificates of Participation, San 9/12 at 100.00 Baa1 1,844,685
Diego-Imperial Counties Developmental Services Foundation
Project, Series 2002, 5.500%, 9/01/27
3,895 West Patterson Financing Authority, California, Special Tax Bonds, 9/13 at 103.00 N/R 3,054,887
Community Facilities District 2001-1, Series 2004A, 6.125%,
9/01/39
------------------------------------------------------------------------------------------------------------------------------------
48,045 Total California 37,315,954
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 12.7% (7.6% of Total Investments)
915 Bradburn Metropolitan District 3, Colorado, General Obligation 12/13 at 101.00 N/R 752,139
Bonds, Series 2003, 7.500%, 12/01/33
5,594 Buffalo Ridge Metropolitan District, Colorado, Limited Obligation 12/13 at 101.00 N/R 4,715,294
Assessment Bonds, Series 2003, 7.500%, 12/01/33
400 Colorado Educational and Cultural Facilities Authority, Charter 12/10 at 101.00 BBB(4) 440,160
School Revenue Bonds, Academy Charter School - Douglas County
School District Re. 1, Series 2000, 6.875%,
12/15/20(Pre-refunded 12/15/10)
-----
71
-----
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 650 Colorado Educational and Cultural Facilities Authority, Charter 9/11 at 100.00 Ba1(4) $ 723,814
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, Charter 5/14 at 101.00 N/R 2,730,490
School Revenue Bonds, Denver Arts and Technology Academy, Series
2003, 8.000%, 5/01/34
Colorado Educational and Cultural Facilities Authority, Charter
School Revenue Bonds, Excel Academy Charter School, Series 2003:
470 7.300%, 12/01/23 (Pre-refunded 12/01/11) 12/11 at 100.00 AAA 531,330
875 7.500%, 12/01/33 (Pre-refunded 12/01/11) 12/11 at 100.00 AAA 994,315
1,784 Colorado Educational and Cultural Facilities Authority, Charter 2/10 at 100.00 AAA 1,894,162
School Revenue Bonds, Jefferson County School District R-1 -
Compass Montessori Secondary School, Series 2002, 8.000%,
2/15/32 (Pre-refunded 2/15/10)
1,000 Colorado Educational and Cultural Facilities Authority, Charter 2/16 at 101.00 N/R 694,150
School Revenue Bonds, Jefferson County School District R-1 -
Compass Montessori Secondary School, Series 2006, 5.625%, 2/15/36
Colorado Health Facilities Authority, Colorado, Revenue Bonds,
Catholic Health Initiatives, Series 2006A, Trust 1088:
570 7.364%, 9/01/41 (IF) 9/16 at 100.00 AA 386,266
2,195 7.447%, 9/01/41 (IF) 9/16 at 100.00 AA 1,487,464
2,200 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 1,758,240
Catholic Health Initiatives, Series 2006C-1, Trust 1090,
6.761%, 10/01/41 - FSA Insured (IF)
4,300 Denver Health and Hospitals Authority, Colorado, Revenue Bonds, 12/14 at 100.00 AAA 4,921,952
Series 2004A, 6.250%, 12/01/33(Pre-refunded 12/01/14)
1,000 Denver, Colorado, FHA-Insured Multifamily Housing Mortgage Loan 7/10 at 100.00 AAA 874,720
Revenue Bonds, Garden Court Community Project, Series 1998,
5.400%, 7/01/39
3,145 Kit Carson County Health Service District, Colorado, Health Care No Opt. Call N/R 2,345,698
Facility Revenue Bonds, Series 2007, 6.750%, 1/01/34
1,250 Mesa County, Colorado, Residential Care Facilities Mortgage Revenue 12/11 at 101.00 BBB+ 1,063,500
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 660,140
Obligation Limited Tax Bonds, Series 2007, 5.500%, 12/01/27
1,995 Park Creek Metropolitan District, Colorado, Limited Tax Obligation 12/13 at 100.00 N/R 1,910,392
Revenue Bonds, Series 2003CR-2, 7.875%, 12/01/32 (Mandatory put
12/01/13)
500 Tallyn's Reach Metropolitan District 3, Aurora, Colorado, Limited 12/13 at 100.00 N/R 418,720
Tax General Obligation Bonds, Series 2004, 6.750%, 12/01/33
------------------------------------------------------------------------------------------------------------------------------------
33,343 Total Colorado 29,302,946
------------------------------------------------------------------------------------------------------------------------------------
Florida - 14.1% (8.4% of Total Investments)
1,565 Aberdeen Community Development District, Florida, Special 5/14 at 100.00 N/R 1,021,663
Assessment Bonds, Series 2005, 5.500%, 5/01/36
7,585 Beacon Lakes Community Development District, Florida, Special 5/13 at 101.00 N/R 6,050,099
Assessment Bonds, Series 2003A, 6.900%, 5/01/35
700 Broward County, Florida, Airport Facility Revenue Bonds, Learjet 11/14 at 101.00 Ba2 622,027
Inc., Series 2000, 7.500%, 11/01/20 (Alternative Minimum Tax)
1,140 Century Gardens Community Development District, Miami-Dade County, 5/14 at 101.00 N/R 886,304
Florida, Special Assessment Revenue Bonds, Series 2004, 5.900%,
5/01/34
8,525 Harmony Community Development District, Florida, Special Assessment 5/14 at 103.25 N/R 8,269,677
Bonds, Series 2001, 7.250%, 5/01/32
-----
72
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Florida (continued)
$ 440 Islands at Doral Northeast Community Development District, 5/14 at 101.00 N/R $ 381,480
Miami-Dade County, Florida, Special Assessment Bonds, Series
2004, 6.125%, 5/01/24
3,000 Jacksonville, Florida, Economic Development Commission Health Care 9/17 at 100.00 N/R 2,349,990
Facilities Revenue Bonds, The Florida Proton Therapy Institute
Project, Series 2007, 6.250%, 9/01/27
610 Lexington Community Development District, Florida, Special 5/14 at 101.00 N/R 489,147
Assessment Revenue Bonds, Series 2004, 6.125%, 5/01/34
2,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 2008A, 10/18 at 100.00 AAA 1,062,880
Trust 1145, 8.125%, 10/01/38 - AGC Insured (Alternative Minimum
Tax) (IF)
985 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 686,013
Assessment Bonds, Palm Beach Gardens, Series 2004A, 5.900%,
5/01/35
3,755 Palm Beach County Housing Finance Authority, Florida, Multifamily 7/09 at 103.00 N/R 2,963,371
Housing Revenue Bonds, Lake Delray Apartments, Series 1999A,
6.400%, 1/01/31 (Alternative Minimum Tax)
2,000 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 1,440,340
Assessment Bonds, Bella Collina, Series 2004, 5.750%, 5/01/35
1,000 Sarasota County Health Facility Authority, Florida, Revenue Bonds, 7/17 at 100.00 N/R 640,120
Sarasota-Manatee Jewish Housing Council, Inc., Series 2007,
5.750%, 7/01/45
Stonegate Community Development District, Florida, Special
Assessment Revenue Bonds, Series 2004:
440 6.000%, 5/01/24 5/14 at 101.00 N/R 376,517
500 6.125%, 5/01/34 5/14 at 101.00 N/R 400,940
985 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 666,934
Assessment Bonds, Series 2006, 5.400%, 5/01/37
1,715 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R 1,384,468
Assessment Bonds, Series 2007, 6.650%, 5/01/40
Westchester Community Development District 1, Florida, Special
Assessment Bonds, Series 2003:
135 6.000%, 5/01/23 5/13 at 101.00 N/R 106,696
3,735 6.125%, 5/01/35 5/13 at 101.00 N/R 2,760,314
------------------------------------------------------------------------------------------------------------------------------------
44,574 Total Florida 32,558,980
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.5% (0.9% of Total Investments)
500 Effingham County Development Authority, Georgia, Solid Waste 7/10 at 100.00 B 382,285
Disposal Revenue Bonds, Ft. James Project, Series 1998, 5.625%,
7/01/18 (Alternative Minimum Tax) (5)
900 Fulton County Residential Care Facilities Authority, Georgia, 2/09 at 100.00 N/R 650,961
Revenue Bonds, Canterbury Court, Series 2004A, 6.125%, 2/15/34
1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 602,960
Revenue Bonds, Elderly Care, Lenbrook Square Project, Series
2006A, 5.125%, 7/01/37
1,915 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 1,763,332
Revenue Bonds, St. Anne's Terrace, Series 2003, 7.625%, 12/01/33
------------------------------------------------------------------------------------------------------------------------------------
4,315 Total Georgia 3,399,538
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 1.0% (0.6% of Total Investments)
2,000 Hawaii State Department of Budget and Finance, Private School No Opt. Call N/R 1,519,660
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 694,240
Revenue Bonds, Montessori of Maui, Series 2007, 5.500%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Hawaii 2,213,900
------------------------------------------------------------------------------------------------------------------------------------
-----
73
-----
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.0% (5.3% of Total Investments)
$ 2,000 Chicago, Illinois, Certificates of Participation Tax Increment 12/08 at 100.00 N/R $ 1,930,800
Revenue Notes, Chicago/Kingsbury Redevelopment Project, Series
2004A, 6.570%, 2/15/13
1,000 Chicago, Illinois, Certificates of Participation, Tax Increment 7/11 at 100.00 N/R 912,710
Allocation Revenue Bonds, Diversey-Narragansett Project, Series
2006, 7.460%, 2/15/26
2,000 Illinois Finance Authority, Revenue Bonds, Midwest Regional 10/16 at 100.00 N/R 1,529,340
Medical Center Galena-Stauss Hospital, Series 2006, 6.750%,
10/01/46
1,350 Illinois Health Facilities Authority, FHA-Insured Mortgage Revenue 8/13 at 100.00 AAA 1,186,245
Refunding Bonds, Sinai Health System, Series 2003, 5.150%,
2/15/37
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa3 771,390
Medical Center, Series 2002, 5.500%, 5/15/32
7,800 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A3 6,842,394
Hospital, Residual Series 2002A, 5.750%, 7/01/29 (UB)
900 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 789,507
Hospital, Series 2002A, 5.750%, 7/01/29
1,400 Illinois Health Facilities Authority, Revenue Bonds, Midwest 11/08 at 102.00 N/R 1,110,634
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 941,988
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
1,255 Lombard Public Facilities Corporation, Illinois, Third Tier 7/18 at 100.00 N/R 778,589
Conference Center and Hotel Revenue Bonds, Series 2005C-3,
4.000%, 1/01/36
2,022 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 1,642,127
Lakewood Springs Project, Series 2004A, 6.200%, 3/01/34
998 Volo Village, Illinois, Special Service Area 3 Special Tax Bonds, 3/16 at 102.00 N/R 732,033
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 and 1/17 at 102.00 N/R 762,900
Water Improvement Project Revenue Bonds, Series 2007, 6.000%,
1/01/26
969 Yorkville, Illinois, Special Service Area 2005-108 Assessment 3/16 at 102.00 N/R 676,440
Bonds, Autumn Creek Project, Series 2006, 6.000%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
24,844 Total Illinois 20,607,097
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 11.9% (7.0% of Total Investments)
6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R 5,166,546
Bonds, Series 2004A, 6.650%, 1/15/24
22,770 Indiana Finance Authority, Water Facilities Refunding Revenue 10/16 at 100.00 AA 16,216,338
Bonds, Indiana-American Water Company Inc. Project, Series
2006, 4.875%, 10/01/36 - AMBAC Insured (Alternative Minimum Tax)
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 452,525
2,500 6.000%, 3/01/34 3/14 at 101.00 BBB 2,064,975
1,595 Indiana Health Facility Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa1 864,474
Ascension Health, Series 2006B-4, Tender Option Bond Series
2842, 9.101%, 11/15/39 (IF)
200 Jasper County, Indiana, Economic Development Revenue Refunding 4/10 at 101.00 B2 143,916
Bonds, Georgia Pacific Corporation Project, Series 2000,
6.700%, 4/01/29 (Alternative Minimum Tax)
1,000 St. Joseph County, Indiana, Economic Development Revenue Bonds, 7/15 at 103.00 N/R 876,130
Chicago Trail Village Apartments, Series 2005A, 7.500%, 7/01/35
1,650 Whitley County, Indiana, Solid Waste and Sewerage Disposal Revenue 11/10 at 102.00 N/R 1,489,307
Bonds, Steel Dynamics Inc., Series 1998, 7.250%, 11/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
36,575 Total Indiana 27,274,211
------------------------------------------------------------------------------------------------------------------------------------
-----
74
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.4% (0.2% of Total Investments)
$ 1,000 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BBB- $ 760,600
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, 6.125%, 8/17 at 100.00 N/R 1,387,300
8/15/37
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 8.3% (4.9% of Total Investments)
1,000 Carter Marina Community Development District, Louisiana, Special 10/12 at 100.00 N/R 856,090
Assessment Bonds, Series 2007, 6.250%, 10/01/22
8,500 Hodge, Louisiana, Combined Utility System Revenue Bonds, No Opt. Call B- 3,825,340
Smurfit-Stone Container Corporation, Series 2003, 7.450%,
3/01/24 (Alternative Minimum Tax)
4,500 Louisiana Local Government Environmental Facilities & Community 11/17 at 100.00 BB+ 3,423,330
Development Authority, Revenue Bonds, Westlake Chemical
Corporation Project, Series 2007, 6.750%, 11/01/32
1,000 Louisiana Local Government Environmental Facilities and Community 9/16 at 100.00 N/R 682,590
Development Authority, Carter Plantation Hotel Project Revenue
Bonds, Series 2006A, 6.000%, 9/01/36
1,000 Louisiana Local Government Environmental Facilities and Community 6/16 at 101.00 N/R 823,150
Development Authority, Revenue Bonds, CDF Healthcare of
Louisiana LLC, Series 2006A, 7.000%, 6/01/36
3,000 Louisiana Local Government Environmental Facilities and Community 12/17 at 100.00 N/R 2,241,120
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:
865 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 797,279
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 738,692
5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue Bonds, 4/11 at 100.00 N/R 4,392,791
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 1,430,880
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
27,795 Total Louisiana 19,211,262
------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.1% (0.6% of Total Investments)
3,155 Portland Housing Development Corporation, Maine, Section 8 2/14 at 102.00 Baa2 2,483,080
Assisted Senior Living Revenue Bonds, Avesta Housing
Development Corporation, Series 2004A, 6.000%, 2/01/34
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.3% (0.8% of Total Investments)
2,000 Maryland Energy Financing Administration, Revenue Bonds, AES 3/09 at 100.00 N/R 1,712,760
Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative
Minimum Tax)
1,350 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 1,082,349
Revenue Bonds, MedStar Health, Series 2004, 5.500%, 8/15/33
435 Prince George's County, Maryland, Revenue Bonds, Dimensions Health 1/09 at 100.00 B3 296,970
Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
3,785 Total Maryland 3,092,079
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.6% (0.4% of Total Investments)
525 Massachusetts Development Finance Agency, Pioneer Valley Resource No Opt. Call N/R 458,435
Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006,
5.875%, 7/01/14 (Alternative Minimum Tax)
1,350 Massachusetts Health and Educational Facilities Authority, Revenue 7/14 at 100.00 BB 1,018,575
Bonds, Northern Berkshire Community Services Inc., Series
2004B, 6.375%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
1,875 Total Massachusetts 1,477,010
------------------------------------------------------------------------------------------------------------------------------------
-----
75
-----
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 5.1% (3.0% of Total Investments)
$ 1,240 Countryside Charter School, Berrien County, Michigan, Charter 4/09 at 100.00 N/R $ 1,034,011
School Revenue Bonds, Series 1999, 7.000%, 4/01/29
870 Countryside Charter School, Berrien County, Michigan, Charter 4/09 at 100.00 N/R 813,763
School Revenue Bonds, Series 2000, 8.000%, 4/01/29
Detroit Local Development Finance Authority, Michigan, Tax
Increment Bonds, Series 1998A:
1,425 5.500%, 5/01/21 5/09 at 101.00 BB- 899,090
15 5.500%, 5/01/21 - ACA Insured 5/09 at 101.00 BB- 9,464
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 600,840
1,000 5.000%, 8/15/38 8/17 at 100.00 N/R 548,840
3,580 Michigan State Hospital Finance Authority, Hospital Revenue 2/09 at 100.00 BB- 2,653,245
Refunding Bonds, Detroit Medical Center Obligated Group, Series
1993B, 5.500%, 8/15/23
500 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea 5/15 at 100.00 BBB 366,175
Community Hospital, Series 2005, 5.000%, 5/15/30
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, Hills 11/15 at 102.00 N/R 1,142,955
and Dales General Hospital, Series 2005A, 6.750%, 11/15/38
2,625 Nataki Talibah Schoolhouse, Wayne County, Michigan, Certificates 6/10 at 102.00 N/R(4) 2,856,184
of Participation, Series 2000, 8.250%, 6/01/30 (Pre-refunded
6/01/10)
Pontiac Hospital Finance Authority, Michigan, Hospital Revenue
Refunding Bonds, NOMC Obligated Group, Series 1993:
985 6.000%, 8/01/13 (6) 2/09 at 100.00 C 9,850
1,500 6.000%, 8/01/18 (6) 2/09 at 100.00 C 15,000
1,800 6.000%, 8/01/23 (6) 2/09 at 100.00 C 18,000
1,000 Summit Academy North Charter School, Michigan, Charter School 11/15 at 100.00 BB+ 695,330
Revenue Bonds, Series 2005, 5.500%, 11/01/30
------------------------------------------------------------------------------------------------------------------------------------
19,040 Total Michigan 11,662,747
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 4.2% (2.5% 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) 107,279
100 7.300%, 7/01/15 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R(4) 107,434
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease Revenue 6/14 at 102.00 N/R 1,099,432
Bonds, PACT Charter School, Series 2004A, 6.750%, 12/01/33
5,000 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet Health 7/14 at 100.00 N/R(4) 5,428,600
Services, Series 2003B, 5.250%, 7/01/30 (Pre-refunded 7/01/14)
1,430 St. Paul Housing and Redevelopment Authority, Minnesota, Charter 6/14 at 102.00 N/R 1,256,198
School Revenue Bonds, Higher Ground Academy Charter School,
Series 2004A, 6.625%, 12/01/23
1,100 St. Paul Housing and Redevelopment Authority, Minnesota, Charter 6/14 at 102.00 N/R 917,686
School Revenue Bonds, HOPE Community Academy Charter School,
Series 2004A, 6.750%, 12/01/33
1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R 779,380
HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30
------------------------------------------------------------------------------------------------------------------------------------
10,055 Total Minnesota 9,696,009
------------------------------------------------------------------------------------------------------------------------------------
-----
76
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.3% (0.2% of Total Investments)
$ 951 Mississippi Home Corporation, Multifamily Housing Revenue Bonds, 10/19 at 101.00 N/R $ 667,120
Tupelo Personal Care Apartments, Series 2004-2, 6.125%, 9/01/34
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 3.1% (1.8% of Total Investments)
2,000 Branson Regional Airport Transportation Development District, 7/17 at 100.00 N/R 1,339,560
Missouri, Project Revenue Bonds, Series 2007B, 6.000%, 7/01/37
(Alternative Minimum Tax)
5,935 Missouri Environmental Improvement and Energy Resources Authority, 12/16 at 100.00 A 4,278,838
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 N/R 910,052
Louis Convention Center Headquarters Hotel Project, Series
2000A, 7.250%, 12/15/35 (Alternative Minimum Tax)
805 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 12/08 at 100.00 N/R 605,416
Grace Lofts Redevelopment Projects, Series 2007A, 6.000%,
3/27/26
------------------------------------------------------------------------------------------------------------------------------------
10,040 Total Missouri 7,133,866
------------------------------------------------------------------------------------------------------------------------------------
Montana - 2.6% (1.5% of Total Investments)
5,200 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 BB- 4,292,652
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
2,030 Montana Board of Investments, Resource Recovery Revenue Bonds, No Opt. Call N/R 1,691,518
Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,230 Total Montana 5,984,170
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 2.5% (1.5% of Total Investments)
6,485 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 5,762,830
Revenue Bonds, Nebraska City 2, Series 2006A, 14.495%, 2/01/49 -
AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.8% (1.0% of Total Investments)
1,170 Clark County, Nevada, Industrial Development Revenue Bonds, Nevada 1/09 at 100.00 BB+ 780,987
Power Company Project, Series 1995C, 5.500%, 10/01/30
500 Clark County, Nevada, Industrial Development Revenue Bonds, Nevada 11/08 at 100.00 BB+ 337,835
Power Company, Series 1997A, 5.900%, 11/01/32 (Alternative
Minimum Tax)
1,465 Clark County, Nevada, Local Improvement Bonds, Mountain's Edge 8/16 at 100.00 N/R 1,222,469
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 AA 601,140
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 1,048,635
Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series
2000, 7.375%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
8,635 Total Nevada 3,991,066
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 6.2% (3.7% of Total Investments)
1,660 New Jersey Economic Development Authority, Special Facilities 9/09 at 101.00 B 938,149
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 323,745
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB-(4) 545,290
Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%,
7/01/30 (Pre-refunded 7/01/10)
-----
77
-----
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New Jersey (continued)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
$ 7,825 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA $ 8,955,400
2,760 7.000%, 6/01/41 (Pre-refunded 6/01/13) (7) 6/13 at 100.00 AAA 3,186,530
500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 270,200
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
13,745 Total New Jersey 14,219,314
------------------------------------------------------------------------------------------------------------------------------------
New York - 0.6% (0.4% of Total Investments)
1,000 New York City Industrial Development Agency, New York, American 8/16 at 101.00 B- 690,430
Airlines-JFK International Airport Special Facility Revenue
Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
1,700 New York City Industrial Development Agency, New York, Special 12/09 at 100.00 CCC+ 750,346
Facilities Revenue Bonds, American Airlines Inc., Series 1994,
6.900%, 8/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,700 Total New York 1,440,776
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 4.9% (2.9% of Total Investments)
3,000 Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas 1/18 at 100.00 AA- 1,844,760
HealthCare System Revenue Bonds, Series 2008A, Trust 1149,
6.780%, 1/15/47 (IF)
5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 4,158,330
Facilities Revenue Bonds, Liberty Tire Services of North
Carolina LLC, Series 2004A, 6.750%, 7/01/29
5,780 North Carolina Capital Facilities Financing Agency, General Revenue 10/16 at 100.00 AA+ 5,320,663
Bonds, Duke University, Series 2006A, 5.000%, 10/01/44 (UB)
------------------------------------------------------------------------------------------------------------------------------------
14,280 Total North Carolina 11,323,753
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 8.4% (5.0% of Total Investments)
Belmont County, Ohio, Revenue Bonds, Ohio Valley Health Services
and Education Corporation, Series 1998:
500 5.700%, 1/01/13 1/10 at 100.00 B- 457,415
400 5.800%, 1/01/18 1/10 at 100.00 B- 328,752
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
345 5.125%, 6/01/24 6/17 at 100.00 BBB 270,411
375 5.750%, 6/01/34 6/17 at 100.00 BBB 249,750
10,855 5.875%, 6/01/47 6/17 at 100.00 BBB 6,790,997
3,255 Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue 5/14 at 102.00 N/R 2,566,893
Bonds, Bond Fund Program - Garfield Heights Project, Series
2004D, 5.250%, 5/15/23
6,700 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/09 at 102.00 N/R 5,370,586
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
1,000 Ohio, Environmental Facilities Revenue Bonds, Ford Motor Company, 4/15 at 100.00 Caa2 320,920
Series 2005, 5.750%, 4/01/35 (Alternative Minimum Tax)
4,000 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 3,012,360
Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
27,430 Total Ohio 19,368,084
------------------------------------------------------------------------------------------------------------------------------------
-----
78
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.9% (1.1% of Total Investments)
$ 985 Okeene Municipal Hospital and Schallmo Authority, Oklahoma, Revenue 1/16 at 101.00 N/R $ 799,446
Bonds, Series 2006, 7.000%, 1/01/35
660 Oklahoma Development Finance Authority, Revenue Refunding Bonds, 8/09 at 101.00 AAA 686,228
Hillcrest Healthcare System, Series 1999A, 5.625%, 8/15/29
(Pre-refunded 8/15/09)
850 Tulsa Industrial Authority, Oklahoma, Student Housing Revenue 10/16 at 100.00 A2 689,350
Bonds, University of Tulsa, Series 2006, 5.000%, 10/01/37
1,335 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, American 12/08 at 100.00 B- 895,491
Airlines Inc., Series 1995, 6.250%, 6/01/20
1,500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding Bonds, No Opt. Call Caa2 1,275,840
American Airlines Inc., Series 2004A, 7.750%, 6/01/35 (Mandatory
put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
5,330 Total Oklahoma 4,346,355
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 6.4% (3.8% of Total Investments)
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
695 9.250%, 11/15/22 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 792,529
6,455 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 7,360,830
460 Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call BB- 387,798
Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
1,000 Berks County Industrial Development Authority, Pennsylvania, First 11/17 at 101.00 N/R 734,760
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 1,406,120
Pennsylvania, Revenue Bonds, Immaculata University, Series 2005,
5.750%, 10/15/37
400 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 Ba3 266,432
Facilities Revenue Bonds, Reliant Energy Inc., Series 2002A,
6.750%, 12/01/36 (Alternative Minimum Tax)
600 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 Ba3 399,648
Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A,
6.750%, 12/01/36 (Alternative Minimum Tax)
4,000 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 BBB 3,463,440
Bonds, Amtrak 30th Street Station Parking Garage, Series 2002,
5.800%, 6/01/23 - ACA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,610 Total Pennsylvania 14,811,557
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.9% (1.1% of Total Investments)
1,500 Central Falls Detention Facility Corporation, Rhode Island, 7/15 at 103.00 N/R 1,289,115
Detention Facility Revenue Bonds, Series 2005, 7.250%, 7/15/35
1,000 Rhode Island Student Loan Authority, Student Loan Program Revenue 12/17 at 100.00 A 931,010
Bonds, Series 2008A, 6.750%, 12/01/28 (Alternative Minimum Tax)
3,000 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 2,190,870
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Rhode Island 4,410,995
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.7% (1.0% of Total Investments)
4,000 Lancaster County, South Carolina, Assessment Bonds, Edgewater II 11/17 at 100.00 N/R 3,451,440
Improvement District, Series 2007A, 7.750%, 11/01/39
490 Tobacco Settlement Revenue Management Authority, South Carolina, No Opt. Call BBB(4) 536,638
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%,
5/15/30 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
4,490 Total South Carolina 3,988,078
------------------------------------------------------------------------------------------------------------------------------------
-----
79
-----
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 3.5% (2.1% of Total Investments)
$ 1,200 Jackson, Tennessee, Hospital Revenue Refunding Bonds, 4/18 at 100.00 A+ $ 1,003,368
Jackson-Madison County General Hospital Project, Series 2008,
5.750%, 4/01/41
3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 2,893,590
Tennessee, Hospital Revenue Bonds, Baptist Health System of East
Tennessee Inc., Series 2002, 6.500%, 4/15/31
1,500 Maury County Industrial Development Board, Tennessee, Multi-Modal 3/09 at 100.00 CCC+ 481,260
Interchangeable Rate Pollution Control Revenue Refunding Bonds,
Saturn Corporation, Series 1994, 6.500%, 9/01/24
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 1,483,360
2,000 5.500%, 11/01/46 11/17 at 100.00 N/R 1,438,820
990 Wilson County Health and Educational Facilities Board, Tennessee, 7/17 at 100.00 N/R 688,109
Senior Living Revenue Bonds, Rutland Place, Series 2007A,
6.300%, 7/01/37
------------------------------------------------------------------------------------------------------------------------------------
11,190 Total Tennessee 7,988,507
------------------------------------------------------------------------------------------------------------------------------------
Texas - 11.1% (6.6% of Total Investments)
1,935 Austin Convention Enterprises Inc., Texas, Convention Center Hotel 1/11 at 100.00 N/R 1,607,385
Revenue Bonds, First Tier Series 2001A, 9.750%, 1/01/26
1,000 Austin Convention Enterprises Inc., Texas, Convention Center Hotel 1/17 at 100.00 BB 694,910
Revenue Bonds, First Tier Series 2006B, 5.750%, 1/01/34
10 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call Caa1 8,688
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 Refunding 7/18 at 100.00 Caa1 554,666
Bonds, TXU Electric Company, Series 2001D, 8.250%, 5/01/33
(Alternative Minimum Tax)
1,750 Dallas-Ft. Worth International Airport Facility Improvement 11/12 at 100.00 CCC+ 614,618
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 1,540,374
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 5,549,346
585 Gulf Coast Industrial Development Authority, Texas, Solid Waste 4/12 at 100.00 Baa3 549,461
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 724,670
Charter Academy, Series 2006A, 6.000%, 2/15/36
2,020 Houston, Texas, Airport System Special Facilities Revenue Bonds, 7/09 at 101.00 B- 1,105,869
Continental Air Lines Inc., Series 1998B, 5.700%, 7/15/29
(Alternative Minimum Tax)
975 Houston, Texas, Airport System Special Facilities Revenue Bonds, 7/09 at 101.00 B- 533,774
Continental Air Lines Inc., Series 1998C, 5.700%, 7/15/29
(Alternative Minimum Tax)
600 Houston, Texas, Airport System Special Facilities Revenue Bonds, 7/11 at 101.00 B- 367,278
Continental Air Lines Inc., Series 2001E, 7.375%, 7/01/22
(Alternative Minimum Tax)
1,000 La Vernia Education Financing Corporation, Texas, Charter School 8/11 at 100.00 N/R 677,320
Revenue Bonds, Riverwalk Education Foundation, Series 2007A,
5.450%, 8/15/36
770 North Texas Thruway Authority, Second Tier System Revenue Refunding 1/18 at 100.00 A3 650,065
Bonds, Series 2008, 5.750%, 1/01/38
1,000 Sabine River Authority, Texas, Pollution Control Revenue Refunding 8/13 at 101.00 Caa1 684,190
Bonds, TXU Energy Company LLC Project, Series 2003B, 6.150%,
8/01/22
2,000 Sea Breeze Public Facility Corporation, Texas, Multifamily Housing 1/21 at 100.00 N/R 1,444,420
Revenue Bonds, Sea Breeze Senior Apartments, Series 2006,
6.500%, 1/01/46 (Alternative Minimum Tax)
-----
80
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 4,400 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- $ 2,900,084
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Series 2007A, Trust 1031, 7.369%, 2/15/36 (IF)
5,770 Texas Department of Housing and Community Affairs, Multifamily 7/21 at 100.00 N/R 4,403,318
Housing Revenue Bonds, Humble Parkway Townhomes, Series 2004,
6.600%, 1/01/41 (Alternative Minimum Tax)
1,000 Texas Public Finance Authority, Charter School Finance Corporation 2/15 at 100.00 N/R 631,160
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 Caa1 217,121
Refunding Bonds, TXU Electric Company, Series 2003, 6.250%,
5/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,295 Total Texas 25,458,717
------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands - 2.8% (1.7% of Total Investments)
5,000 Virgin Islands Public Finance Authority, Revenue Bonds, Refinery 1/14 at 100.00 BBB 3,954,550
Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22 (Alternative
Minimum Tax)
3,300 Virgin Islands Public Finance Authority, Senior Secured Lien 7/14 at 100.00 BBB 2,545,092
Revenue Bonds, Refinery Project - Hovensa LLC, Series 2004,
5.875%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
8,300 Total Virgin Islands 6,499,642
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.5% (0.3% of Total Investments)
1,940 Isle of Wight County Industrial Development Authority, Virginia, 3/17 at 100.00 BBB 1,082,210
Environmental Improvement Revenue Bonds, International Paper
Company Project, Series 2007A, 4.700%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.0% (3.0% of Total Investments)
3,000 Skagit County Public Hospital District 1, Washington, Revenue 12/13 at 100.00 Baa2 2,827,110
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 1,372,438
4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 3,509,541
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 1,676,575
1,000 Washington State Economic Development Finance Authority, Revenue 12/17 at 100.00 N/R 742,440
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 Bonds, No Opt. Call N/R 1,425,040
Northwest Hospital and Medical Center of Seattle, Series 2007,
5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
14,975 Total Washington 11,553,144
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.3% (0.2% of Total Investments)
500 Ohio County Commission, West Virginia, Special District Excise Tax 3/16 at 100.00 N/R 343,895
Revenue Bonds, Fort Henry Economic Development, Series 2006B,
5.625%, 3/01/36
500 Ohio County Commission, West Virginia, Tax Increment Revenue Bonds, No Opt. Call N/R 385,860
Fort Henry Centre Financing District, Series 2007A, 5.850%,
6/01/34
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total West Virginia 729,755
------------------------------------------------------------------------------------------------------------------------------------
-----
81
-----
NMZ | Nuveen Municipal High Income Opportunity Fund (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 5.1% (3.0% of Total Investments)
$ 550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R(4) $ 675,329
Wisconsin, Revenue Bonds, Series2003A, 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 2/09 at 101.00 BBB+ 7,689,584
2,300 5.600%, 2/15/29 - ACA Insured 2/09 at 101.00 BBB+ 1,864,633
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Southwest Health Center Inc., Series 2004A:
875 6.125%, 4/01/24 4/14 at 100.00 N/R 685,615
1,000 6.250%, 4/01/34 4/14 at 100.00 N/R 729,270
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ --
Bonds, Wheaton Franciscan Health, Trust 2113, -0.428%, 8/15/26 (IF)
3,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ --
Bonds, Wheaton Franciscan Healthcare System, Series 2006, Trust
2191, 0.558%, 8/15/34 (IF)
------------------------------------------------------------------------------------------------------------------------------------
19,210 Total Wisconsin 11,644,431
------------------------------------------------------------------------------------------------------------------------------------
$ 504,511 Total Investments (cost $484,255,890) - 168.7% 388,107,994
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.5)% (10,300,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.4)% (7,685,121)
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.8)% (8) (140,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 230,122,873
=====================================================================================================================
Futures Contracts outstanding at October 31, 2008:
Unrealized
Contract Number of Contract Value at Appreciation
Type Position Contracts Expiration October 31, 2008 (Depreciation)
---------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond Short (279) 12/08 $ (31,561,875) $ 1,213,249
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard
& Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as
of October 31, 2008. 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) On April 14, 2008, the Adviser concluded that the issuer was not likely
to meet its interest payment obligations and directed the Custodian to
cease accruing additional income and "write off" any remaining recorded
balances on the Fund's records. On July 1, 2008, the Fund received a
default distribution of principal and interest from the Issuer's Debt
Service Reserve Fund and applied such amounts to the Fund's records as
indicated by the issuer's Notice to Bondholders.
(7) Portion of investment has been pledged as collateral for Recourse
Trusts.
(8) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 36.1%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
82
-----
NMD | Nuveen Municipal High Income Opportunity Fund 2
| Portfolio of INVESTMENTS
October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.3% (1.0% of Total Investments)
$ 2,290 Birmingham Special Care Facilities Financing Authority, Alabama, 11/15 at 100.00 Baa1 $ 1,959,805
Revenue Bonds, Baptist Health System Inc., Series 2005A, 5.250%,
11/15/20
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 4.6% (3.5% of Total Investments)
1,000 Estrella Mountain Ranch Community Facilities District, Goodyear, 7/17 at 100.00 N/R 773,510
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 3,209,800
Government Project Bonds, Series 2007, 7.000%, 12/01/27
6,405 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 1,977,864
Bonds, Series 2007, Trust 2373, 7.925%, 12/01/37 (IF)
1,000 Yuma County Industrial Development Authority, Arizona, Exempt 12/17 at 100.00 N/R 715,810
Revenue Bonds, Far West Water & Sewer Inc. Refunding, Series
2007A, 6.375%, 12/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,405 Total Arizona 6,676,984
------------------------------------------------------------------------------------------------------------------------------------
California - 14.4% (10.8% of Total Investments)
2,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 1,304,180
Dominican University, Series 2006, 5.000%, 12/01/36
4,950 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 3,322,552
Sutter Health, Tender Option Series 2007A, Bond Trust 3175,
11.625%, 11/15/46 (IF)
7,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 4,872,700
Bonds, Daughters of Charity Health System, Series 2005A, 5.250%,
7/01/35
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- 2,444,890
2,000 6.500%, 12/15/47 12/17 at 100.00 N/R 1,427,060
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 1,974,840
2,500 5.125%, 6/01/47 6/17 at 100.00 BBB 1,476,250
3,190 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A --
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2213, 1.760%, 6/01/45 - AMBAC Insured (IF)
5,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A --
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2448, 0.906%, 6/01/38 - FGIC Insured (IF)
6,015 Independent Cities Lease Finance Authority, California, Senior Lien 8/15 at 100.00 BBB 4,026,501
Revenue Bonds, Caritas Affordable Housing Project Mobile Home
Park, Series 2005A, 5.200%, 8/15/45 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,155 Total California 20,848,973
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 8.8% (6.6% of Total Investments)
2,000 Arista Metropolitan District, Colorado, Special Revenue Bonds, 12/15 at 100.00 N/R 1,885,300
Series 2008, 9.250%, 12/01/37
500 Colorado Educational and Cultural Facilities Authority, Charter 12/16 at 100.00 N/R 345,985
School Revenue Bonds, Carbon Valley Academy, Series 2006,
5.625%, 12/01/36
1,530 Colorado Educational and Cultural Facilities Authority, Charter 5/17 at 100.00 BB+ 1,057,291
School Revenue Bonds, Windsor Academy, Series 2007A, 5.700%,
5/01/37
-----
83
-----
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 2,000 Colorado Educational and Cultural Facilities Authority, Revenue 6/18 at 102.00 N/R $ 1,542,820
Bonds, Pikes Peak School of Expeditionary Learning Charter
School, Series 2008, 6.625%, 6/01/38
1,510 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 3/15 at 100.00 BBB+ 1,106,347
Health Care, Series 2005F, 5.000%, 3/01/25
5,045 Colorado Housing and Finance Authority, Revenue Bonds, Confluence 4/17 at 100.00 N/R 3,840,910
Energy LLC Project, Series 2007, 6.750%, 4/01/27 (Alternative
Minimum Tax)
1,000 Public Authority for Colorado Energy, Natural Gas Revenue Bonds, No Opt. Call A 771,780
Colorado Springs Utilities, Series 2008, 6.500%, 11/15/38
3,000 University of Colorado Hospital Authority, Revenue Bonds, Series 5/16 at 100.00 Baa1 2,166,600
2006A, 5.250%, 11/15/39
------------------------------------------------------------------------------------------------------------------------------------
16,585 Total Colorado 12,717,033
------------------------------------------------------------------------------------------------------------------------------------
Florida - 15.8% (11.9% of Total Investments)
1,500 Beeline Community Development District, Palm Beach County, Florida, 5/18 at 100.00 N/R 1,239,480
Special Assessment Bonds, Series 2008A, 7.000%, 5/01/37
2,000 Escambia County, Florida, Environmental Improvement Revenue Bonds, 8/11 at 100.00 BBB 1,281,760
International Paper Company Projects, Series 2006B, 5.000%,
8/01/26 (Alternative Minimum Tax)
1,500 Jacksonville Economic Development Commission, Florida, Health Care 5/16 at 100.00 AA 1,193,595
Facilities Revenue Bonds, Mayo Clinic, Series 2006, 5.000%,
11/15/36 (4)
2,960 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 2,061,522
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 1,183,455
Assessment Bond, Series 2008A, 7.125%, 5/01/39
1,000 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 720,170
Assessment Bonds, Bella Collina, Series 2004, 5.750%, 5/01/35
1,000 Poinciana West Community Development District, Florida, Special 5/17 at 100.00 N/R 763,270
Assessment Bonds, Series 2007, 6.000%, 5/01/37
985 Reunion West Community Development District, Florida, Special 5/12 at 101.00 N/R 718,459
Assessment Bonds, Series 2004, 6.250%, 5/01/36
6,260 South Miami Health Facilities Authority, Florida, Revenue Bonds, 8/17 at 100.00 AA- 4,034,445
Baptist Health Systems of South Florida, Trust 1030, 7.372%,
8/15/37 (IF)
6,000 Split Pine Community Development District, Florida, Special 5/17 at 100.00 N/R 3,932,940
Assessment Bonds, Series 2007A, 5.250%, 5/01/39
5,000 Stoneybrook Venice Community Development District, Florida, Capital 5/18 at 100.00 N/R 4,058,900
Improvement Revenue Bonds, Series 2007, 6.750%, 5/01/38
1,480 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,002,093
Assessment Bonds, Series 2006, 5.400%, 5/01/37
985 Winter Garden Village at Fowler Groves Community Development 5/16 at 100.00 N/R 730,919
District, Florida, Special Assessment Bonds, Series 2006,
5.650%, 5/01/37
------------------------------------------------------------------------------------------------------------------------------------
32,170 Total Florida 22,921,008
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.2% (2.4% of Total Investments)
3,500 Effingham County Industrial Development Authority, Georgia, 6/11 at 101.00 B2 2,530,255
Pollution Control Revenue Refunding Bonds, Georgia-Pacific
Project, Series 2001, 6.500%, 6/01/31
2,000 Fulton County Residential Care Facilities Authority, Georgia, 2/09 at 100.00 N/R 1,446,580
Revenue Bonds, Canterbury Court, Series 2004A, 6.125%, 2/15/34
1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 586,020
Revenue Bonds, Elderly Care, Lenbrook Square Project, Series
2006A, 5.125%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Georgia 4,562,855
------------------------------------------------------------------------------------------------------------------------------------
-----
84
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 2.1% (1.6% of Total Investments)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
$ 2,145 5.250%, 9/01/26 9/16 at 100.00 BBB- $ 1,629,449
2,000 5.250%, 9/01/37 9/16 at 100.00 BBB- 1,378,900
------------------------------------------------------------------------------------------------------------------------------------
4,145 Total Idaho 3,008,349
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 7.4% (5.6% of Total Investments)
1,100 Hillside, Cook County, Illinois, Senior Lien Tax Increment Revenue 1/18 at 102.00 N/R 924,209
Bonds, Mannheim Redevelopment Project, Series 2008, 7.000%,
1/01/28
5,620 Illinois Finance Authority, Charter School Revenue Bonds, Chicago No Opt. Call BBB 3,656,035
Charter School Foundation, Series 2007, 5.000%, 12/01/36
1,500 Illinois Finance Authority, Revenue Bonds, Roosevelt University, 4/17 at 100.00 Baa1 1,200,765
Series 2007, 5.500%, 4/01/37
2,500 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 BB- 1,703,250
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 1,103,444
2,745 6.625%, 6/01/37 6/17 at 103.00 N/R 2,088,890
------------------------------------------------------------------------------------------------------------------------------------
14,760 Total Illinois 10,676,593
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.9% (2.9% of Total Investments)
3,000 Hospital Authority of Delaware County, Indiana, Hospital Revenue 8/16 at 100.00 Baa2 2,050,920
Bonds, Cardinal Health System, Series 2006, 5.125%, 8/01/29
1,980 Indiana Bond Bank, Special Program Gas Revenue Bonds, JP Morgan No Opt. Call Aa2 1,023,145
Ventures Energy Corporation Guaranteed, Series 2007A, 9.926%,
10/15/20 (IF)
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,472,160
Community Foundation of Northwest Indiana, Series 2007, 5.500%,
3/01/37
1,625 Vigo County, Indiana, Hospital Authority, Union Hospital, Revenue 9/17 at 100.00 N/R 1,067,121
Bonds, Series 2007, 5.800%, 9/01/47
------------------------------------------------------------------------------------------------------------------------------------
8,605 Total Indiana 5,613,346
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 7.3% (5.5% of Total Investments)
7,500 Louisiana Local Government Envirnomental Facilities & Community 11/17 at 100.00 BB+ 5,705,546
Development Authority, Revenue Bonds, Westlake Chemical
Corporation Project, Series 2007, 6.750%, 11/01/32
500 Louisiana Local Government Environmental Facilities and Community No Opt. Call AA 436,165
Development Authority, Revenue Bonds, Capital Projects and
Equipment Acquisition Program, Series 2000A, 6.300%,
7/01/30 - AMBAC Insured (4)
5,000 Louisiana Local Government Environmental Facilities and Community 12/17 at 100.00 N/R 3,735,200
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 715,440
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
14,000 Total Louisiana 10,592,351
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.6% (1.2% of Total Investments)
3,000 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB 2,300,580
Revenue Bonds, Mercy Medical Center Project, Series 2007A,
5.500%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.6% (0.4% of Total Investments)
90 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 N/R 63,360
Senior Revenue Bonds, Crosstown Center Project, Series 2002,
6.500%, 9/01/35 (Alternative Minimum Tax)
1,000 Massachusetts Health and Educational Facilities Authority Revenue 1/18 at 100.00 N/R 750,550
Bonds, Quincy Medical Center Issue, Series A (2008), 6.500%,
1/15/38
------------------------------------------------------------------------------------------------------------------------------------
1,090 Total Massachusetts 813,910
------------------------------------------------------------------------------------------------------------------------------------
-----
85
-----
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
| Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.4% (1.1% of Total Investments)
$ 1,000 Garden City Hospital Finance Authority, Michigan, Revenue Bonds, 8/17 at 100.00 N/R $ 600,840
Garden City Hospital Obligated Group, Series 2007A, 4.875%,
8/15/27
1,750 Michigan Public Educational Facilities Authority, Charter School 12/17 at 100.00 N/R 1,399,615
Revenue Bonds, American Montessori Academy, Series 2007, 6.500%,
12/01/37
20 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 2/09 at 101.00 BB 14,271
Detroit Medical Center Obligated Group, Series 1998A, 5.250%,
8/15/23
------------------------------------------------------------------------------------------------------------------------------------
2,770 Total Michigan 2,014,726
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.6% (2.0% of Total Investments)
5,000 St. Paul Housing and Redevelopment Authority, Minnesota, Revenue 11/15 at 100.00 Baa3 3,798,000
Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/35
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.1% (0.8% of Total Investments)
40 Saint Louis Industrial Development Authority, Missouri, Saint Louis 12/10 at 102.00 N/R 30,008
Convention Center Headquarters Hotel Project, Series 2000A,
7.000%, 12/15/15 (Alternative Minimum Tax)
2,026 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 3/09 at 100.00 N/R 1,588,830
Fashion Square Redevelopment Project, Series 2008A, 6.300%,
8/22/26
------------------------------------------------------------------------------------------------------------------------------------
2,066 Total Missouri 1,618,838
------------------------------------------------------------------------------------------------------------------------------------
Montana - 0.4% (0.3% of Total Investments)
725 Montana Board of Investments, Resource Recovery Revenue Bonds, No Opt. Call N/R 604,114
Yellowstone Energy LP, Series1993, 7.000%, 12/31/19 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.2% (1.7% of Total Investments)
55 Clark County, Nevada, Industrial Development Revenue Bonds, Nevada 1/09 at 100.00 BB+ 36,098
Power Company, Series1995A, 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 AA 723,516
1,200 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AA 721,368
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 892,590
1,000 6.750%, 6/15/28 6/18 at 100.00 Ba2 848,440
------------------------------------------------------------------------------------------------------------------------------------
4,455 Total Nevada 3,222,012
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 4.5% (3.4% 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 1,973,640
55 6.400%, 9/15/23 (Alternative Minimum Tax) 9/09 at 101.00 B 33,992
240 6.250%, 9/15/29 (Alternative Minimum Tax) 9/09 at 101.00 B 135,636
25 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 16,187
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
5,700 New Jersey Health Care Facilities Financing Authority, New Jersey, 7/18 at 100.00 Baa2 4,432,035
Revenue Bonds, Saint Peters University Hospital, Series 2007,
5.750%, 7/01/37
------------------------------------------------------------------------------------------------------------------------------------
9,020 Total New Jersey 6,591,490
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.3% (0.2% of Total Investments)
500 Montecito Estates Public Improvement District, New Mexico, Special 10/17 at 100.00 N/R 398,395
Levee Revenue Bonds, Series 2007, 7.000%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
-----
86
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York - 2.0% (1.5% of Total Investments)
$ 3,000 New York City Industrial Development Agency, New York, American 8/16 at 101.00 B- $ 2,071,290
Airlines-JFK International Airport Special Facility Revenue
Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax)
1,030 New York City Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 833,219
Facility Revenue Bonds, Special Needs Facilities Pooled Program,
Series 2008A-1, 5.800%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,030 Total New York 2,904,509
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 3.6% (2.7% of Total Investments)
1,685 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 1,186,914
Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38
3,000 Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas 1/18 at 100.00 AA- 1,844,760
HealthCare System Revenue Bonds, Series 2008A, Trust 1149,
6.780%, 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 1,411,210
1,000 6.125%, 6/01/35 6/18 at 100.00 BBB 808,550
------------------------------------------------------------------------------------------------------------------------------------
7,425 Total North Carolina 5,251,434
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.0% (3.0% of Total Investments)
6,845 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 4,282,300
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 5.875%, 6/01/47
95 Coshocton County, Ohio, Environmental Revenue Bonds, Smurfit-Stone No Opt. Call B- 47,547
Container Corporation, Series 2005, 5.125%, 8/01/13
2,000 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 1,506,180
Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,940 Total Ohio 5,836,027
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.3% (1.7% of Total Investments)
5,040 Oklahoma Development Finance Authority, Revenue Bonds, Saint John 2/17 at 100.00 AA- 3,279,276
Health System, Series 2007, Trust 1037, 7.417%, 2/15/42 (IF)
45 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, American 12/08 at 100.00 B- 30,185
Airlines Inc., Series 1995, 6.250%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
5,085 Total Oklahoma 3,309,461
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.6% (1.2% of Total Investments)
1,010 Chester County Industrial Development Authority, Pennsylvania, Avon 12/17 at 100.00 BB+ 774,084
Grove Charter School Revenue Bonds, Series 2007A, 6.375%,
12/15/37
1,900 Lancaster County Hospital Authority, Pennsylvania, Revenue Bonds, 7/17 at 100.00 N/R 1,474,628
Brethren Village Project, Series 2008A, 6.500%, 7/01/40
------------------------------------------------------------------------------------------------------------------------------------
2,910 Total Pennsylvania 2,248,712
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.8% (0.6% of Total Investments)
1,000 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior 7/18 at 100.00 BBB- 916,180
Lien Series 2008A, 6.000%, 7/01/38
500 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 100.00 CCC+ 198,115
Environmental Control Facilities Financing Authority, Revenue
Bonds, American Airlines Inc., Series 1985A, 6.450%, 12/01/25
20 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/08 at 100.00 CCC+ 8,027
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,520 Total Puerto Rico 1,122,322
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 5.6% (4.3% of Total Investments)
4,000 Charleston, South Carolina, Tax Increment Revenue Bonds, Charleston 12/08 at 100.00 N/R 3,967,840
Neck redevelopment Project, Series 2007, 7.500%, 6/01/09
-----
87
-----
NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
South Carolina (continued)
$ 1,600 Georgetown County, South Carolina, Environmental Improvement 8/11 at 100.00 BBB $ 954,400
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 3,236,496
Edgewater II Improvement District, Series 2007B, 7.700%,
11/01/17
------------------------------------------------------------------------------------------------------------------------------------
9,077 Total South Carolina 8,158,736
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.5% (1.9% 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 1,483,360
3,000 5.500%, 11/01/46 11/17 at 100.00 N/R 2,158,230
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Tennessee 3,641,590
------------------------------------------------------------------------------------------------------------------------------------
Texas - 14.1% (10.6% of Total Investments)
440 Brazos River Authority, Texas, Pollution Control Revenue Refunding No Opt. Call Caa1 382,250
Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36
(Mandatory put 11/01/11) (Alternative Minimum Tax)
3,000 Danbury Higher Education Authority Inc., Texas, Golden Rule 2/18 at 100.00 BB+ 2,321,400
Charter School Revenue Bonds, Series 2008A, 6.500%, 8/15/38
1,000 Hidalgo Willacy Housing Finance Corporation, Texas, Multifamily 1/14 at 102.00 N/R 754,220
Housing Revenue Bonds, Heritage Square Apartments Project,
Series 2003A, 7.000%, 1/01/39
1,330 La Vernia Higher Education Financing Corporation, Texas, Education 2/16 at 100.00 N/R 1,020,296
Revenue Bonds, Amigos Por Vida Friends For Life Public Charter
School, Series 2008, 6.375%, 2/15/37
4,000 Mission Economic Development Corporation, Texas, Solid Waste 4/12 at 100.00 B+ 2,855,000
Disposal Revenue Bonds, Allied Waste Industries, Inc., Series
2007A, 5.200%, 4/01/18 (Alternative Minimum Tax)
1,800 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 1,519,632
Refunding Bonds, Series 2008, 5.750%, 1/01/38
110 Sabine River Authority, Texas, Pollution Control Revenue Bonds, No Opt. Call Caa1 95,563
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 Refunding No Opt. Call Caa1 336,983
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 Refunding 8/13 at 101.00 Caa1 2,052,570
Bonds, TXU Energy Company LLC Project, Series 2003B, 6.150%,
8/01/22
6,325 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 4,168,871
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 7.368%, 2/15/36 (IF)
1,000 Texas Public Finance Authority, Charter School Revenue Bonds, 12/14 at 100.00 BB 809,290
School of Excellence Charter School, Series 2004A, 7.000%,
12/01/34
5,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central Texas 8/12 at 100.00 AA 4,031,850
Turnpike System, Series 2002A, 5.000%, 8/15/42 - AMBAC Insured
(4)
------------------------------------------------------------------------------------------------------------------------------------
27,390 Total Texas 20,347,925
------------------------------------------------------------------------------------------------------------------------------------
Utah - 4.7% (3.6% of Total Investments)
1,750 Spanish Fork City, Utah, Charter School Revenue Bonds, American 11/16 at 100.00 N/R 1,232,123
Leadership Academy, Series 2006, 5.700%, 11/15/36
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 399,045
1,430 6.500%, 6/15/38 6/17 at 100.00 N/R 1,126,983
5,500 Utah State Charter School Finance Authority, Revenue Bonds, Summit 12/17 at 100.00 BBB- 4,067,085
Academy Project, Series 2007A, 5.800%, 6/15/38
------------------------------------------------------------------------------------------------------------------------------------
9,180 Total Utah 6,825,236
------------------------------------------------------------------------------------------------------------------------------------
-----
88
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington - 6.2% (4.7% of Total Investments)
$ 4,000 Kalispel Indian Tribe, Washington, Priority Distribution Bonds, No Opt. Call N/R $ 3,188,080
Series 2008, 6.750%, 1/01/38
1,000 Klickitat County Public Hospital District 2, Washington, Skyline No Opt. Call N/R 761,480
Hospital Revenue Bonds, Series 2007, 6.500%, 12/01/38
7,000 Washington State Health Care Facilities Authority, Revenue Bonds, No Opt. Call N/R 4,987,640
Northwest Hospital and Medical Center of Seattle, Series 2007,
5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Washington 8,937,200
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.3% (0.3% of Total Investments)
740 Ohio County Commission, West Virginia, Special District Excise Tax 3/16 at 100.00 N/R 508,965
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, Revenue 8/16 at 100.00 BBB+ --
Bonds, Wheaton Franciscan Healthcare System, Series 2006, Trust
2113, -0.432%, 8/15/34 (IF)
3,500 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ --
Bonds, Wheaton Franciscan Healthcare System, Series 2006, Trust
2187, 0.558%, 8/15/34 (IF)
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Wisconsin --
------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 1.4% (1.0% of Total Investments)
3,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, 12/15 at 100.00 BBB 1,960,141
FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 279,538 Total Investments (cost $268,423,709) - 132.6% 191,991,620
============------------------------------------------------------------------------------------------------------------------------
Borrowings - (27.6)% (5) (40,000,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (5.0)% (7,247,050)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 144,744,570
=====================================================================================================================
Futures Contracts outstanding at October 31, 2008:
Unrealized
Contract Number of Contract Value at Appreciation
Type Position Contracts Expiration October 31, 2008 (Depreciation)
---------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond Short (108) 12/08 $(12,217,500) $469,645
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
October 31, 2008. 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) Borrowings as a percentage of Total Investments is 20.8%.
N/R Not rated.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
-----
89
-----
| Statement of
| ASSETS & LIABILITIES
October 31, 2008
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
$790,560,125, $741,979,512,
$1,193,404,343, $442,757,305,
$484,255,890 and $268,423,709,
respectively) $ 727,146,632 $ 679,023,366 $ 1,135,216,249 $ 407,124,245 $388,107,994 $ 191,991,620
Cash 5,648,301 -- -- 3,119,039 -- --
Time deposits(1) -- -- -- -- 15,076,017 --
Deposits with brokers for open
futures contracts -- -- -- -- 470,700 11,812
Receivables:
Interest 12,415,731 11,911,387 20,000,434 6,775,865 9,913,204 6,431,524
Investments sold 10,000 85,000 6,590,000 409,722 9,024,836 15,000
Variation margin on futures
contracts -- -- -- -- 331,313 128,250
Other assets 80,874 83,762 113,974 54,720 239,261 84,347
------------------------------------------------------------------------------------------------------------------------------------
Total assets 745,301,538 691,103,515 1,161,920,657 417,483,591 423,163,325 198,662,553
------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Borrowings -- -- -- -- -- 40,000,000
Cash overdraft -- 2,499,887 12,302,115 -- 9,441,912 9,551,260
Floating rate obligations 72,382,000 9,595,000 41,558,000 52,830,000 10,300,000 --
Unrealized depreciation on forward
swaps -- -- -- 3,882,335 -- --
Unrealized depreciation on Recourse
Trusts -- 208,800 -- -- 1,999,460 2,381,488
Payables:
Interest -- -- -- -- -- 212,915
Investments purchased 4,529,415 -- -- -- 14,026,404 --
Preferred shares noticed for
redemption, at liquidation
value -- -- -- -- 15,000,000 --
Common share dividends 1,944,460 2,007,651 3,034,174 1,008,723 1,913,876 1,132,321
Preferred share dividends 62,813 74,903 101,869 25,407 82,518 N/A
Accrued expenses:
Management fees 354,502 361,512 578,214 193,035 142,329 120,390
Offering costs -- -- -- -- -- 472,500
Other 207,941 239,287 378,667 176,926 133,953 47,109
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 79,481,131 14,987,040 57,953,039 58,116,426 53,040,452 53,917,983
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation
value 229,450,000 267,575,000 416,375,000 126,850,000 140,000,000 N/A
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 436,370,407 $ 408,541,475 $ 687,592,618 $ 232,517,165 $230,122,873 $ 144,744,570
====================================================================================================================================
Common shares outstanding 35,820,767 34,015,420 54,219,374 19,904,218 23,886,333 15,853,739
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common shares,
divided by Common shares
outstanding) $ 12.18 $ 12.01 $ 12.68 $ 11.68 $ 9.63 $ 9.13
====================================================================================================================================
Net assets applicable to Common
shares consist of:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per
share $ 358,208 $ 340,154 $ 542,194 $ 199,042 $ 238,863 $ 158,537
Paid-in surplus 499,420,441 473,839,817 755,310,592 276,599,880 338,906,911 226,395,089
Undistributed (Over-distribution
of) net investment income (1,608,899) (982,059) (369,085) (1,037,332) 2,005,779 1,569,363
Accumulated net realized gain
(loss) from investments and
derivative transactions 1,614,150 (1,491,491) (9,702,989) (3,729,030) (14,094,573) (5,034,487)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions (63,413,493) (63,164,946) (58,188,094) (39,515,395) (96,934,107) (78,343,932)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 436,370,407 $ 408,541,475 $ 687,592,618 $ 232,517,165 $230,122,873 $ 144,744,570
====================================================================================================================================
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 October 31, 2008.
(1) - Time Deposits of $15,000,000 at 2.250% maturing 11/06/08 and $76,017 at
2.250% maturing 11/04/08.
See accompanying notes to financial statements.
-----
90
-----
| Statement of
| OPERATIONS
Year Ended October 31, 2008
Investment Select Quality Premier High Income High Income
Quality Quality Income Income Opportunity Opportunity 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)*
------------------------------------------------------------------------------------------------------------------------------------
Investment Income $ 43,699,118 $ 42,630,973 $ 66,695,043 $ 23,584,156 $ 34,287,025 $ 15,629,636
------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 4,867,624 4,674,676 7,420,009 2,686,788 3,474,353 1,479,197
Preferred shares - auction fees 704,239 692,691 1,104,621 385,549 387,499 --
Preferred shares - dividend
disbursing agent fees 50,000 50,000 60,000 30,000 30,014 --
Shareholders' servicing agent fees
and expenses 49,592 43,707 72,480 26,674 2,295 214
Interest expense 1,335,403 213,850 1,437,722 1,511,102 662,018 603,009
Custodian's fees and expenses 145,843 139,654 183,363 77,710 231,009 78,322
Directors'/Trustees' fees and
expenses 16,165 15,537 25,643 8,979 10,070 6,828
Professional fees 53,083 52,480 76,595 34,633 126,307 41,461
Shareholders' reports - printing
and mailing expenses 94,511 101,763 153,842 62,516 77,744 33,236
Stock exchange listing fees 12,589 11,968 18,787 9,293 3,082 32,683
Investor relations expense 98,722 98,422 157,626 56,457 64,796 81,157
Other expenses 41,558 43,932 56,205 35,659 18,784 6,787
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 7,489,329 6,138,680 10,766,893 4,925,360 5,087,971 2,362,894
Custodian fee credit (109,603) (124,038) (124,210) (54,416) (11,094) (27,854)
Expense reimbursement -- -- -- -- (1,540,626) (736,527)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 7,379,726 6,014,642 10,642,683 4,870,944 3,536,251 1,598,513
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 36,319,392 36,616,331 56,052,360 18,713,212 30,750,774 14,031,123
------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments 1,970,511 (525,514) 2,043,801 (3,335,364) (13,697,890) (6,437,236)
Forward swaps -- -- -- (247,000) -- --
Futures -- -- -- -- (704,149) 1,400,745
Change in net unrealized
appreciation (depreciation) of:
Investments (102,361,574) (101,745,781) (124,593,451) (53,822,222) (122,536,846) (78,813,577)
Forward swaps -- -- -- (4,012,094) -- --
Futures -- -- -- -- 1,213,249 469,645
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) (100,391,063) (102,271,295) (122,549,650) (61,416,680) (135,725,636) (83,380,423)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Preferred
Shareholders
From net investment income (10,309,882) (10,295,198) (16,361,736) (5,664,126) (5,489,754) N/A
From accumulated net realized gains -- -- -- -- (526,498) N/A
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders (10,309,882) (10,295,198) (16,361,736) (5,664,126) (6,016,252) N/A
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations $ (74,381,553) $ (75,950,162) $ (82,859,026) $ (48,367,594) $(110,991,114) $ (69,349,300)
====================================================================================================================================
* For the period November 15, 2007 (commencement of operations) through October
31, 2008.
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through October 31, 2008.
See accompanying notes to financial statements.
-----
91
-----
| Statement of
| CHANGES in NET ASSETS
Investment Quality (NQM) Select Quality (NQS)
--------------------------------- --------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 36,319,392 $ 36,606,543 $ 36,616,331 $ 36,198,697
Net realized gain (loss) from:
Investments 1,970,511 1,949,305 (525,514) 1,994,624
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (102,361,574) (23,427,097) (101,745,781) (19,571,728)
Forward swaps -- -- -- --
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (10,309,882) (10,668,647) (10,295,198) (9,950,399)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (74,381,553) 4,460,104 (75,950,162) 8,671,194
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (27,513,935) (28,773,137) (27,346,151) (28,151,510)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (27,513,935) (28,773,137) (27,346,151) (28,151,510)
------------------------------------------------------------------------------------------------------------------------------------
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 -- 1,107,500 167,321 1,154,896
Cost of repurchases -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- 1,107,500 167,321 1,154,896
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (101,895,488) (23,205,533) (103,128,992) (18,325,420)
Net assets applicable to Common shares at the
beginning of period 538,265,895 561,471,428 511,670,467 529,995,887
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end
of period $ 436,370,407 $ 538,265,895 $ 408,541,475 $ 511,670,467
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ (1,608,899) $ (80,632) $ (982,059) $ 124,715
====================================================================================================================================
See accompanying notes to financial statements.
-----
92
-----
Quality Income (NQU) Premier Income (NPF)
--------------------------------- --------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 56,052,360 $ 54,707,748 $ 18,713,212 $ 19,093,554
Net realized gain (loss) from:
Investments 2,043,801 1,756,386 (3,335,364) 53,881
Forward swaps -- -- (247,000) 178,000
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (124,593,451) (29,728,496) (53,822,222) (12,901,205)
Forward swaps -- -- (4,012,094) 636,942
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (16,361,736) (16,132,468) (5,664,126) (5,895,868)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (82,859,026) 10,603,170 (48,367,594) 1,165,304
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (39,634,364) (40,496,209) (13,435,852) (13,479,410)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (39,634,364) (40,496,209) (13,435,852) (13,479,410)
------------------------------------------------------------------------------------------------------------------------------------
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 -- 227,748 -- --
Cost of repurchases -- -- (57,215) (2,448,254)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- 227,748 (57,215) (2,448,254)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (122,493,390) (29,665,291) (61,860,661) (14,762,360)
Net assets applicable to Common shares at the beginning
of period 810,086,008 839,751,299 294,377,826 309,140,186
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 687,592,618 $ 810,086,008 $ 232,517,165 $ 294,377,826
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ (369,085) $ (333,918) $ (1,037,332) $ (632,067)
====================================================================================================================================
See accompanying notes to financial statements.
-----
93
-----
| Statement of
| CHANGES in NET ASSETS (continued)
High Income High Income
Opportunity (NMZ) Opportunity 2 (NMD)
--------------------------------- ----------------------------
Year Year For the Period 11/15/07
Ended Ended (commencement of operations)
10/31/08 10/31/07 through 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 30,750,774 $ 28,668,897 $ 14,031,123
Net realized gain (loss) from:
Investments (13,697,890) 2,665,874 (6,437,236)
Forward swaps -- -- --
Futures (704,149) -- 1,400,745
Change in net unrealized appreciation (depreciation) of:
Investments (122,536,846) (17,903,629) (78,813,577)
Forward swaps -- -- --
Futures 1,213,249 -- 469,645
Distributions to Preferred Shareholders:
From net investment income (5,489,754) (5,501,664) N/A
From accumulated net realized gains (526,498) (19,807) N/A
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (110,991,114) 7,909,671 (69,349,300)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (23,458,428) (22,823,070) (12,459,756)
From accumulated net realized gains (2,146,329) (105,253) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (25,604,757) (22,928,323) (12,459,756)
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Common shares:
Proceeds from sale of shares, net of offering costs
adjustments -- -- 225,146,250
Proceeds from shelf offering, net of offering costs
adjustments 4,544,766 3,071,410 --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 690,395 731,262 1,307,101
Cost of repurchases -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions 5,235,161 3,802,672 226,453,351
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (131,360,710) (11,215,980) 144,644,295
Net assets applicable to Common shares at the beginning
of period 361,483,583 372,699,563 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
period $ 230,122,873 $ 361,483,583 $ 144,744,570
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ 2,005,779 $ 505,752 $ 1,569,363
====================================================================================================================================
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through October 31, 2008.
See accompanying notes to financial statements.
-----
94
-----
| Statement of
| CASH FLOWS
Year Ended October 31, 2008
Premier High Income
Income Opportunity 2
(NPF) (NMD)*
------------------------------------------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations $ (48,367,594) $ (69,349,300)
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 (33,396,864) (323,730,265)
Proceeds from sales and maturities of investments 86,471,669 48,951,587
Proceeds from (Purchases of) short-term investments, net (14,644,500) --
Proceeds from terminated forward swaps (247,000) --
Proceeds from closed/expired futures contracts -- 1,400,745
Amortization (Accretion) of premiums and discounts, net (1,046,996) (82,267)
(Increase) Decrease in receivable for interest 398,348 (6,431,524)
(Increase) Decrease in receivable for investments sold 481,786 (15,000)
(Increase) Decrease in receivable for variation margin on futures contracts -- (128,250)
(Increase) Decrease in other assets 1,897 (7,502)
Increase (Decrease) in payable for interest -- 212,915
Increase (Decrease) in Preferred share dividends payable (20,021) N/A
Increase (Decrease) in accrued management fees (48,772) 120,390
Increase (Decrease) in accrued other liabilities 15,701 47,109
Net realized (gain) loss from investments 3,335,364 6,437,236
Net realized (gain) loss from forward swaps 247,000 --
Net realized (gain) loss from futures -- (1,400,745)
Change in net unrealized (appreciation) depreciation of investments 53,822,222 78,813,577
Change in net unrealized (appreciation) depreciation of forward swaps 4,012,094 --
Taxes paid on undistributed capital gains (1,560) --
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 51,012,774 (265,161,294)
------------------------------------------------------------------------------------------------------------------------------------
Cash Flows from Financing Activities:
Increase (Decrease) in cash overdraft balance -- 9,539,448
Increase (Decrease) in floating rate obligations 3,652,000 --
Increase (Decrease) in borrowings -- 40,000,000
Cash distributions paid to Common shareholders (13,397,570) (10,020,334)
(Increase) Decrease in deferred offering costs -- (76,845)
Increase (Decrease) in payable for offering costs -- 472,500
Cost of Common share repurchases (57,215) --
Proceeds from sale of Common shares -- 225,246,525
Increase (Decrease) in Preferred shares (38,150,000) --
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (47,952,785) (265,161,294)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Cash 3,059,989 --
Cash at the beginning of period 59,050 --
------------------------------------------------------------------------------------------------------------------------------------
Cash at the End of Period $ 3,119,039 $ --
====================================================================================================================================
* For the period November 15, 2007 (commencement of operations) through October
31, 2008.
N/A - High Income Opportunity 2 (NMD) did not issue Preferred shares during the
period November 15, 2007 (commencement of operations) through April 30, 2008.
Supplemental Disclosure of Cash Flow Information
Cash paid by Premier Income (NPF) and High Income Opportunity 2 (NMD) for
interest was $1,511,102 and $390,094, respectively.
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $0 and $1,307,101, for Premier Income (NPF) and
High Income Opportunity 2 (NMD), respectively.
See accompanying notes to financial statements.
-----
95
-----
| Notes to
| FINANCIAL STATEMENTS
1. General Information and Significant Accounting Policies
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM),
Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income
Municipal Fund, Inc. (NQU), Nuveen Premier Municipal Income Fund, Inc. (NPF),
Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal High
Income Opportunity Fund 2 (NMD) (collectively, the "Funds"). Common shares of
Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU), Premier
Income (NPF) and High Income Opportunity 2 (NMD) are traded on the New York
Stock Exchange while Common shares of High Income Opportunity (NMZ) are traded
on the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end, diversified 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 diversified 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 U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. 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 price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for an investment or derivative instrument, each Fund
may use market quotes provided by major broker/dealers in such investments. If
it is determined that the market price for an investment or derivative
instrument is unavailable or inappropriate, the Board of Directors/Trustees of
the Funds, or its designee, may establish fair value in accordance with
procedures established in good faith by the Board of Directors/Trustees.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At October 31, 2008,
Investment Quality (NQM) had outstanding when issued/delayed delivery purchase
commitments of $4,529,415. There were no such outstanding purchase commitments
in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
-----
96
-----
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.
Effective April 30, 2008, the Funds adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. 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). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the fiscal year ended October 31,
2008.
The Funds are 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 U.S.
generally accepted accounting principles.
Preferred Shares
High Income Opportunity 2 (NMD) did not issue Preferred shares during the period
November 15, 2007 (commencement of operations) through October 31, 2008. 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 October 31, 2008, 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 1,906 1,918 2,763 769 2,690
Series T 1,906 1,918 2,764 2,153 1,455
Series W 1,905 2,686 2,764 -- 1,455
Series W2 -- -- 1,916 -- --
Series TH 1,555 1,496 3,684 2,152 --
Series F 1,906 2,685 2,764 -- --
----------------------------------------------------------------------------------------------------------------------------------
Total 9,178 10,703 16,655 5,074 5,600
==================================================================================================================================
-----
97
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the 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.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as "floaters" or floating rate
obligations, to refinance a portion of the municipal funds' outstanding auction
rate preferred shares, whose auctions have been failing for several months. The
plan included an initial phase of approximately $1 billion in forty-one funds.
During the fiscal year ended October 31, 2008, Investment Quality (NQM), Select
Quality (NQS), Quality Income (NQU), Premier Income. (NPF) and High Income
Opportunity (NMZ) redeemed and/or noticed for redemption $71,550,000,
$11,425,000, $35,625,000, $38,150,000 and $15,000,000 of its outstanding
Preferred shares, respectively, at liquidation value, using the proceeds from
the issuance of TOBs.
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 September 24, 2007, a registration statement filed by High Income Opportunity
(NMZ) became effective. This registration statement permits the Fund to issue up
to 2,400,000 of additional shares of Common stock through a 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 net asset value 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.
-----
98
-----
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as an "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 an
"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.
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 included as "Unrealized
depreciation on Recourse Trusts" on the Statement of Assets and Liabilities.
During the fiscal year ended October 31, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
At October 31, 2008, each Fund's maximum exposure to externally-deposited
Recourse Trusts, if any, 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 $ -- $18,750,000 $30,750,000 $22,833,400 $14,995,000 $27,000,000
====================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended October 31, 2008, were as follows:
Investment Select Quality Premier High Income
Quality Quality Income Income Opportunity
(NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $46,861,913 $ 7,181,858 $50,387,730 $52,991,228 $24,880,369
Average annual interest rate and fees 2.85% 2.98% 2.85% 2.85% 2.66%
====================================================================================================================================
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. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
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 swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. Premier Income (NPF) was
the only Fund to invest in forward interest rate swap transactions during the
fiscal year ended October 31, 2008.
-----
99
-----
| Notes to
| FINANCIAL STATEMENTS (continued)
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.
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)
were the only Funds to invest in futures contracts during the fiscal year ended
October 31, 2008 and the period November 15, 2007, (commencement of operations)
through October 31, 2008, respectively.
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.
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.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
------
100
------
2. 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 10% of its outstanding Common Shares.
Transactions in Common shares were as follows:
Investment Quality (NQM) Select Quality (NQS) Quality Income (NQU)
--------------------------- -------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/08 10/31/07 10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due
to reinvestment of distributions -- 71,808 11,184 73,380 -- 14,886
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
Year Ended Year Ended Year Ended Year Ended (commencement of operations)
10/31/08 10/31/07 10/31/08 10/31/07 through 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Sold* -- -- -- -- 15,750,000
Sold through shelf offering** -- -- 297,054 197,111 --
Issued to shareholders due
to reinvestment of distributions -- -- 48,248 44,002 96,739
Repurchased (4,500) (182,300) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
(4,500) (182,300) 345,302 241,113 15,846,739
====================================================================================================================================
Weighted average Common share:
Price per share repurchased 12.69 13.41 -- -- --
Discount per share repurchased 12.99% 8.71% -- -- --
Premium per shelf offering share sold -- -- 4.99% 4.32% --
====================================================================================================================================
* 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.
------
101
------
| Notes to
| FINANCIAL STATEMENTS (continued)
Preferred Shares
High Income Opportunity 2 (NMD) did not issue Preferred shares during the period
November 15, 2007 (commencement of operations) through October 31, 2008.
Transactions in Preferred shares were as follows:
Investment Quality (NQM) Select Quality (NQS)
---------------------------------------- ----------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed
for redemption:
Series M 594 $ 14,850,000 -- $ -- 82 $ 2,050,000 -- $ --
Series T 594 14,850,000 -- -- 82 2,050,000 -- --
Series W 595 14,875,000 -- -- 114 2,850,000 -- --
Series TH 485 12,125,000 -- -- 64 1,600,000 -- --
Series F 594 14,850,000 -- -- 115 2,875,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,862 $ 71,550,000 -- $ -- 457 $ 11,425,000 -- $ --
====================================================================================================================================
Quality Income (NQU) Premier Income (NPF)
---------------------------------------- ----------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed
for redemption:
Series M 237 $ 5,925,000 -- $ -- 231 $ 5,775,000 -- $ --
Series T 236 5,900,000 -- -- 647 16,175,000 -- --
Series W 236 5,900,000 -- -- -- -- -- --
Series W2 164 4,100,000 -- -- -- -- -- --
Series TH 316 7,900,000 -- -- 648 16,200,000 -- --
Series F 236 5,900,000 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,425 $ 35,625,000 -- $ -- 1,526 $ 38,150,000 -- $ --
====================================================================================================================================
High Income Opportunity (NMZ)
----------------------------------------
Year Ended Year Ended
10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed
for redemption:
Series M 310 $ 7,750,000 -- $ --
Series T 145 3,625,000 -- --
Series W 145 3,625,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 600 $ 15,000,000 -- $ --
====================================================================================================================================
------
102
------
3. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended October 31, 2008, 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 $ 70,446,460 $ 72,433,297 $114,380,288 $ 33,396,864 $112,323,503 $ 323,730,265
Sales and maturities 112,276,349 86,949,692 155,818,761 86,471,669 141,685,598 48,951,587
====================================================================================================================================
* For the period November 15, 2007 (commencement of operations) through
October 31, 2008.
4. Income Tax Information
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing 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. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At October 31, 2008, 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 $717,819,573 $731,913,550 $1,150,840,604 $389,944,118 $470,271,232 $ 268,299,153
====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2008, 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 $ 17,536,739 $ 17,930,814 $ 39,465,132 $ 7,204,103 $ 7,829,485 $ --
Depreciation (80,544,105) (80,414,938) (96,649,945) (42,885,000) (103,158,318) (76,307,533)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $(63,007,366) $(62,484,124) $ (57,184,813) $(35,680,897) $(95,328,833) $ (76,307,533)
====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2008, the Funds' tax year end,
were as follows:
Investment Select Quality Premier High Income High Income
Quality Quality Income Income Opportunity Opportunity 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 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.
------
103
------
| Notes to
| FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the Funds' tax years ended
October 31, 2008 and October 31, 2007, 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
2008 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)*
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income*** $ 37,735,721 $ 37,664,043 $ 55,938,511 $ 19,090,394 $ 28,742,490 $ 11,191,457
Distributions from net ordinary
income ** 202,710 -- -- -- 87,468 --
Distributions from net long-term
capital gains**** -- -- -- -- 2,667,895 --
====================================================================================================================================
Investment Select Quality Premier High Income
Quality Quality Income Income Opportunity
2007 (NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $ 39,550,444 $ 38,224,899 $ 56,796,248 $ 19,389,148 $ 28,368,237
Distributions from net ordinary
income ** -- -- -- -- 4,938
Distributions from net long-term
capital gains -- -- -- -- 125,060
====================================================================================================================================
* 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.
*** The Funds hereby designate these amounts paid during the fiscal year ended
October 31, 2008, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended October 31, 2008.
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
====================================================================================================================================
5. Management Fees and Other Transactions with Affiliates
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
------
104
------
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 (including net assets attributable to Preferred shares) Fund-Level Fee Rate
------------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
====================================================================================================================================
High Income Opportunity (NMZ)
High Income Opportunity Fund 2 (NMD)
Average Daily Net Assets (including net assets attributable to Preferred shares) 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 assets managed as stated in the following table.
As of October 31, 2008, the complex-level fee rate was .1998%.
The complex-level fee schedule is as follows:
Complex-Level Asset Breakpoint Level (1) Effective Rate at Breakpoint Level
------------------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
====================================================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all Nuveen funds,
with such daily net assets to include assets attributable to preferred
stock issued by or borrowings by such funds but to exclude assets
attributable to investments in other Nuveen funds.
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.
------
105
------
| Notes to
| FINANCIAL STATEMENTS (continued)
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.
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 fiscal year ended October 31, 2008, Nuveen Investments, LLC received
commissions of $24,212, related to the sale of Common shares as a result of the
High Income Opportunity (NMZ) shelf offering.
6. New Accounting Pronouncements
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157 (SFAS No. 157)
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of October 31, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
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 October 31, 2008,
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.
------
106
------
7. Borrowings
In anticipation of the issuance of preferred shares during January 2008, High
Income Opportunity 2 (NMD) purchased securities with the intent of funding the
settlement of the purchases with the proceeds from the issuance of preferred
shares. During January 2008, credit issues associated with sub-prime mortgages
and municipal bond insurers caused the Fund to postpone the preferred shares
offering, and subsequent failed auctions of the preferred shares issued by other
closed-end funds have postponed the issuance of preferred shares indefinitely.
As a result, the Fund temporarily overdrew its bank account with the custodian
bank to fund such security purchases. Management determined that leveraging the
Fund with debt as a replacement for preferred shares continued to benefit the
Funds' shareholders. Consequently in lieu of liquidating portfolio positions to
raise cash to reduce the bank overdraft, management negotiated a secured
leverage facility with the custodian bank. On July 31, 2008, the Fund closed on
a $50 million senior committed secured 364-day revolving line of credit for
investment leverage to replace the temporary borrowing from the custodian and
immediately drew down on the line in the amount of $40 million. Amounts drawn on
the line are recognized as "Borrowings" on the Statement of Assets and
Liabilities.
For the period January 23, 2008, through October 31, 2008, the average daily
balance outstanding on gross borrowings and weighted average interest rate was
$28,507,023 and 2.74%, respectively. Interest on temporary borrowings from the
custodian was calculated at a rate per annum of the Federal Funds Rate plus .15%
through July 30, 2008 and interest on the revolving line of credit was
calculated at the Federal Funds Rate plus .75% beginning on July 31, 2008.
Interest expense incurred on such borrowings is recognized as "Interest expense"
on the Statement of Operations.
At October 31, 2008 the Fund also had a bank overdraft of approximately $9.5
million due to normal operating activities. This bank overdraft was paid
subsequent to October 31, 2008, by the Fund increasing its draw on the line of
credit $5,000,000, from $40,000,000 to $45,000,000, and the selling of portfolio
holdings through the normal course of business.
8. Subsequent Events
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2008, to shareholders of record
on November 15, 2008, 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 $.0625 $.0670 $.0630 $.0575 $.0835 $.0800
============================================================================================
Preferred Shares
Subsequent to October 31, 2008, High Income Opportunity (NMZ) noticed for
redemption an additional $35,000,000 of its outstanding Preferred shares, at
liquidation value.
------
107
------
| Financial
| HIGHLIGHTS
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:
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:
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:
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:
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:
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:
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
=================================================================
------
108
------
Total Returns
-----------------------
Based
on
Based Common
on Share Net
Market Asset
Value* Value*
--------------------------------------------------
Investment Quality (NQM)
--------------------------------------------------
Year Ended 10/31:
2008 (18.72)% (14.43)%
2007 (6.17) .82
2006 15.33 8.09
2005 1.17 3.10
2004 8.54 9.37
Select Quality (NQS)
--------------------------------------------------
Year Ended 10/31:
2008 (22.19) (15.50)
2007 2.31 1.70
2006 10.47 6.94
2005 4.14 4.77
2004 10.19 9.64
==================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund**
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------------------------------------
Investment Quality (NQM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008 $ 436,370 1.46% 1.20% 7.07% 1.44% 1.18% 7.10% 9%
2007 538,266 1.35 1.19 6.67 1.33 1.17 6.69 11
2006 561,471 1.20 1.20 6.79 1.17 1.17 6.82 10
2005 553,857 1.20 1.20 6.59 1.18 1.18 6.61 22
2004 574,164 1.20 1.20 6.78 1.20 1.20 6.79 16
Select Quality (NQS)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008 408,541 1.27 1.22 7.54 1.24 1.20 7.56 10
2007 511,670 1.21 1.18 6.95 1.20 1.17 6.96 8
2006 529,996 1.18 1.18 6.91 1.17 1.17 6.93 5
2005 523,994 1.18 1.18 6.76 1.16 1.16 6.78 4
2004 531,694 1.21 1.21 6.96 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.
+ 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.
See accompanying notes to financial statements.
------
109
------
| Financial
| HIGHLIGHTS (continued)
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:
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:
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:
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:
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:
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:
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
===============================================================
------
110
------
Total Returns
--------------------
Based
on
Based Common
on Share Net
Market Asset
Value* Value*
----------------------------------------------------------------------------------
Quality Income (NQU)
----------------------------------------------------------------------------------
Year Ended 10/31:
2008 (9.55)% (10.67)%
2007 (2.54) 1.31
2006 8.55 7.07
2005 4.78 4.15
2004 8.76 10.07
Premier Income (NPF)
----------------------------------------------------------------------------------
Year Ended 10/31:
2008 (19.97) (17.03)
2007 2.28 .48
2006 5.93 8.20
2005 1.05 2.49
2004 4.75 9.48
==================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund**
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------------------------------------
Quality Income (NQU)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008 $ 687,593 1.38% 1.19% 7.15% 1.36% 1.18% 7.17% 9%
2007 810,086 1.38 1.17 6.65 1.37 1.16 6.66 5
2006 839,751 1.18 1.18 6.62 1.17 1.17 6.63 11
2005 827,077 1.18 1.18 6.57 1.17 1.17 6.57 6
2004 842,093 1.20 1.20 6.83 1.20 1.20 6.83 6
Premier Income (NPF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008 232,517 1.78 1.23 6.74 1.76 1.21 6.75 7
2007 294,378 1.84 1.20 6.30 1.82 1.18 6.32 10
2006 309,140 1.24 1.24 6.27 1.23 1.23 6.28 35
2005 299,423 1.23 1.23 6.16 1.22 1.22 6.17 20
2004 311,991 1.28 1.28 6.57 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.
+ 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.
See accompanying notes to financial statements.
------
111
------
| Financial
| HIGHLIGHTS (continued)
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:
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:
2008(d) 14.33 .89 (5.27) -- -- (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:
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:
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:
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:
2008(d) N/A N/A N/A 40,000 4,619
==================================================================================================================
------
112
------
Total Returns
-------------------------
Based
on
Based Common
on Share Net
Market Asset
Value** Value**
------------------------------------------------------------------------------------------
High Income Opportunity (NMZ)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2008 (24.77)% (32.63)%
2007 (2.68) 2.14
2006 14.79 11.34
2005 14.35 11.20
2004(c) 6.49 10.38
High Income Opportunity 2 (NMD)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(d) (28.82) (32.15)
==========================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement/Refund
-------------------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net
to Common Including Excluding Investment
Shares (000) Interest++(a)(b) Interest++(a)(b) Income++(b)
-----------------------------------------------------------------------------------------------------------------------
High Income Opportunity (NMZ)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008 $230,123 1.56% 1.36% 8.95%
2007 361,484 1.50 1.28 7.31
2006 372,700 1.21 1.21 7.31
2005 357,025 1.20 1.20 7.54
2004(c) 345,023 1.15**** 1.15**** 6.75****
High Income Opportunity 2 (NMD)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(d) 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)(b) Income++(b) Rate
--------------------------------------------------------------------------------------------------------------------------
High Income Opportunity (NMZ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
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:
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 October 31,
2008.
* Rounds to less than $.01 per share.
** 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) Each Ratio of Expenses to Average Net Assets Applicable to Common Shares
and each Ratio of Net Investment Income 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 7 - Borrowing Arrangements as follows:
Ratios of Borrowings Interest Expense to
Average Net Assets Applicable to Common Shares
---------------------------------------------------------------------------
High Income Opportunity 2 (NMD)
---------------------------------------------------------------------------
Year Ended 10/31:
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.
See accompanying notes to financial statements.
------
113
------
Board Members & Officers
--------------------------------
| The management of the Funds, including general supervision of the duties
| performed for the Funds by the Adviser, is the responsibility of the Board
| Members of the Funds. The number of board members of the Fund is currently
| set at nine. None of the board members who are not "interested" persons of
| the Funds (referred to herein as "independent board members") has ever
| been a director or employee of, or consultant to, Nuveen or its
| affiliates. The names and business addresses of the board members and
| officers of the Funds, their principal occupations and other affiliations
| during the past five years, the number of portfolios each oversees and
| other directorships they hold are set forth below.
------------------------------------------------------------------------------------------------------------------------------------
Number Principal
Year First of Portfolios Occupation(s)
Name, | Elected or in Fund Complex Including other
Birthdate | Position(s) Held Appointed Overseen by Directorships
& Address | with the Funds and Term(1) Board Member During Past 5 Years
------------------------------------------------------------------------------------------------------------------------------------
Independent Board Members:
o ROBERT P. BREMNER Private Investor and Management Consultant.
8/22/40 | Chairman of
333 W. Wacker Drive | the Board 1997 186
Chicago, IL 60606 | and Board member
o JACK B. EVANS President, The Hall-Perrine Foundation, a private
10/22/48 | philanthropic corporation (since 1996); Director and
333 W. Wacker Drive | Board member 1999 186 Vice Chairman, United Fire Group, a publicly held
Chicago, IL 60606 | company; Member of the Board of Regents for the State
of Iowa University System; Director, Gazette Companies;
Life Trustee of Coe College and Iowa College
Foundation; Member of the Advisory Council of the
Department of Finance in the Tippie College of
Business, University of Iowa; formerly, Director,
Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group, Inc., a
regional financial services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University of Iowa
3/6/48 | (since July 2006); formerly, Dean and Distinguished
333 W. Wacker Drive | Board member 2004 186 Professor of Finance, School of Business at the
Chicago, IL 60606 | University of Connecticut (2003-2006); previously,
Senior Vice President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003); Director
(since 1997), Credit Research Center at Georgetown
University; Director (since 2004) of Xerox Corporation;
Director (since 2005), Beta Gamma Sigma International
Honor Society; Director, SS&C Technologies, Inc. (May
2005-October 2005).
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth Management
10/28/42 | Company; Retired (since 2004) as Chairman, JPMorgan
333 W. Wacker Drive | Board member 2005 186 Fleming Asset Management, President and CEO, Banc One
Chicago, IL 60606 | Investment Advisors Corporation, and President, One
Group Mutual Funds; prior thereto, Executive Vice
President, Banc One Corporation and Chairman and CEO,
Banc One Investment Management Group; Member, Board of
Regents, Luther College; member of the Wisconsin Bar
Association; member of Board of Directors, Friends of
Boerner Botanical Gardens; member of Investment
Committee, Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman, formerly, Senior Partner and Chief Operating
9/24/44 | Officer (retired, 2004) of Miller-Valentine Partners
333 W. Wacker Drive | Board member 1997 186 Ltd., a real estate investment company; Director,
Chicago, IL 60606 | Dayton Development Coalition; formerly, member,
Business Advisory Council, Cleveland Federal Reserve
Bank.
------
114
------
------------------------------------------------------------------------------------------------------------------------------------
Number Principal
Year First of Portfolios Occupation(s)
Name, | Elected or in Fund Complex Including other
Birthdate | Position(s) Held Appointed Overseen by Directorships
& Address | with the Funds and Term(1) Board Member During Past 5 Years
------------------------------------------------------------------------------------------------------------------------------------
Independent Board Members:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy Donnelley
12/29/47 | Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive | Board member 1997 186 Director, Great Lakes Protection Fund (from 1990 to
Chicago, IL 60606 | 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange (since 2006);
6/28/47 | Commissioner, New York State Commission on Public
333 W. Wacker Drive | Board member 2007 186 Authority Reform (since 2005); formerly, Chair New York
Chicago, IL 60606 | Racing Association Oversight Board (2005-2007);
formerly, Director, New York State Division of the
Budget (2000-2004), Chair, Public Authorities Control
Board (2000-2004) and Director, Local Government
Assistance Corporation (2000-2004).
o TERENCE J. TOTH Director, Legal & General Investment Management (since
9/29/59 | 2008); Private Investor (since 2007); CEO and
333 W. Wacker Drive | Board Member 2008 186 President, Northern Trust Investments (2004-2007);
Chicago, IL 60606 | Executive Vice President, Quantitative Management &
Securities Lending (2007-2004); prior thereto, various
positions with Northern Trust Company (since 1994);
Member: Goodman Theatre Board (Since 2004); Chicago
Fellowship Boards (since 2005), University of Illinois
Leadership Council Board (since 2007) and Catalyst
Schools of Chicago Board (since 2008); formerly Member:
Northern Trust Mutual Funds Board (2005-2007), Northern
Trust Japan Board (2004-2007), Northern Trust
Securities Inc. Board (2003-2007) and Northern Trust
Hong Kong Board (1997-2004).
Interested Board Member:
o JOHN P. AMBOIAN(2)(3) Chief Executive Officer (since July 2007) and Director
6/14/61 | (since 1999) of Nuveen Investments, Inc.; Chief
333 W. Wacker Drive | Board Member 2008 186 Executive Officer (since 2007) of Nuveen Asset
Chicago, IL 60606 | Management, Rittenhouse Asset Management, Nuveen
Investments Advisors, Inc. formerly, President
(1999-2004) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
------
115
------
------------------------------------------------------------------------------------------------------------------------------------
Number
of Portfolios
Name, | Year First in Fund Complex Principal
Birthdate | Position(s) Held Elected or Overseen Occupation(s)
and Address | with the Funds Appointed(4) by Officer During Past 5 Years
------------------------------------------------------------------------------------------------------------------------------------
Officers of the Funds:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant Secretary and
9/9/56 | Chief Associate General Counsel of Nuveen Investments, LLC;
333 W. Wacker Drive | Administrative 1988 186 Managing Director (since 2002), Associate General
Chicago, IL 60606 | Officer Counsel and Assistant Secretary, of Nuveen Asset
Management; Vice President and Assistant Secretary of
NWQ Investment Management Company, LLC. (since 2002),
Nuveen Investments Advisers Inc. (since 2002), Symphony
Asset Management LLC, and NWQ Investment Management
Company, LLC (since 2003), Tradewinds Global Investors,
LLC, and Santa Barbara Asset Management, LLC (since
2006), Nuveen HydePark Group LLC and Nuveen Investment
Solutions, Inc. (since 2007); Managing Director,
Associate General Counsel and Assistant Secretary of
Rittenhouse Asset Management, Inc. (since 2003);
Managing Director (since 2004) and Assistant Secretary
(since 1994) of Nuveen Investments, Inc.; formerly,
Managing Director (2002-2004), General Counsel
(1998-2004) and Assistant Secretary of Nuveen Advisory
Corp. and Nuveen Institutional Advisory Corp.(3);
Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen Investments, Inc.;
6/9/55 | Executive Vice President, U.S. Structured Products of
333 W. Wacker Drive | Vice President 2007 120 Nuveen Investments, LLC, (since 1999), prior thereto,
Chicago, IL 60606 | Managing Director of Structured Investments.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) previously, Vice
1/11/62 | President (1993-2004) of Nuveen Investments, LLC.
333 W. Wacker Drive | Vice President 2007 120
Chicago, IL 60606 |
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen Investments, LLC.
2/3/66 | Vice President
333 W. Wacker Drive | and Assistant 2000 186
Chicago, IL 60606 | Secretary
o LORNA C. FERGUSON Managing Director (since 2004), formerly, Vice
10/24/45 | President of Nuveen Investments, LLC; Managing Director
333 W. Wacker Drive | Vice President 1998 186 (since 2005) of Nuveen Asset Management; Managing
Chicago, IL 60606 | Director (2004-2005), formerly, Vice President
(1998-2004) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
o STEPHEN D. FOY Vice President (since 1993) and Funds Controller (since
5/31/54 | Vice President 1998) of Nuveen Investments, LLC; formerly, Vice
333 W. Wacker Drive | and Controller 1998 186 President and Funds Controller (1998-2004) of Nuveen
Chicago, IL 60606 | Investments, Inc.; Certified Public Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice President
2/24/70 | Chief Compliance (2006-2008) formerly, Assistant Vice President and
333 W. Wacker Drive | Officer and 2003 186 Assistant General Counsel (2003-2006) of Nuveen
Chicago, IL 60606 | Vice President Investments, LLC; Vice President (since 2006) and
Assistant Secretary (since 2008) of Nuveen Asset
Management.
o DAVID J. LAMB Vice President (since 2000) of Nuveen Investments, LLC;
3/22/63 | Certified Public Accountant.
333 W. Wacker Drive | Vice President 2000 186
Chicago, IL 60606 |
------
116
------
------------------------------------------------------------------------------------------------------------------------------------
Number
of Portfolios
Name, | Year First in Fund Complex Principal
Birthdate | Position(s) Held Elected or Overseen Occupation(s)
and Address | with the Funds Appointed(4) by Officer During Past 5 Years
------------------------------------------------------------------------------------------------------------------------------------
Officers of the Funds:
o TINA M. LAZAR Vice President of Nuveen Investments, LLC (since 1999).
8/27/61 |
333 W. Wacker Drive | Vice President 2002 186
Chicago, IL 60606 |
o LARRY W. MARTIN Vice President, Assistant Secretary and Assistant
7/27/51 | Vice President General Counsel of Nuveen Investments, LLC; Vice
333 W. Wacker Drive | and Assistant 1988 186 President (since 2005) and Assistant Secretary of
Chicago, IL 60606 | Secretary Nuveen Investments, Inc.; Vice President (since 2005)
and Assistant Secretary (since 1997) of Nuveen Asset
Management; Vice President (since 2000), Assistant
Secretary and Assistant General Counsel (since 1998) of
Rittenhouse Asset Management, Inc.; Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management Company, LLC
(since 2002), Symphony Asset Management LLC (since
2003), Tradewinds Global Investors, LLC, Santa Barbara
Asset Management LLC (since 2006) and of Nuveen
HydePark Group, LLC and Nuveen Investment Solutions,
Inc. (since 2007); formerly, Vice President and
Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 | Vice President President (2007-2008), Nuveen Investments, LLC; Vice
333 W. Wacker Drive | and Secretary 2007 186 President, and Assistant Secretary, Nuveen Asset
Chicago, IL 60606 | Management, Rittenhouse Asset Management, Inc., Nuveen
Investment Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ Investment
Management Company, LLC, Tradewinds Global Investors
LLC, NWQ Holdings, LLC, Symphony Asset Management LLC,
Santa Barbara Asset Management LLC, Nuveen HydePark
Group, LLC and Nuveen Investment Solutions, Inc. (since
2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP
(1997-2007).
o JOHN V. MILLER Managing Director (since 2007), formerly, Vice
4/10/67 | Vice President 2007 186 President (2002-2007) of Nuveen Asset Management and
333 W. Wacker Drive | Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606 |
CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since 2008);
o 8/1/71 | Vice President Vice President and Assistant Secretary, Nuveen Asset
333 W. Wacker Drive | and Assistant 2008 186 Management (since 2008); prior thereto, Associate,
Chicago, IL 60606 | Secretary Skadden, Arps, Slate Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since 2007);
7/3/62 | Vice President prior thereto, Partner, Deloitte & Touche USA LLP
333 W. Wacker Drive | and Assistant 2007 186 (2005-2007), formerly, senior tax manager (2002-2005);
Chicago, IL 60606 | Secretary Certified Public Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since 2008);
12/21/68 | Vice President Vice President and Assistant Secretary, Nuveen Asset
333 W. Wacker Drive | and Assistant 2008 186 Management (since 2008); prior thereto, Counsel, Vedder
Chicago, IL 60606 | Secretary Price P.C. (1997-2007).
(1) For High Income Opportunity (NMZ), Board Members serve three year terms,
except for two board members who are elected by the holders of Preferred
Shares. The Board of Trustees for NMZ is divided into three classes, Class
I, Class II, and Class III, with each being elected to serve until the
third succeeding annual shareholders' meeting subsequent to its election
or thereafter in each case when its respective successors are duly elected
or appointed, except two board members are elected by the holders of
Preferred Shares to serve until the next annual shareholders' meeting
subsequent to its election or thereafter in each case when its respective
successors are duly elected or appointed. For High Income Opportunity 2
(NMD), Board Members serve three year terms. The Board of Trustees for NMD
is divided into three classes, Class I, Class II, and Class III, with each
being elected to serve until the third succeeding annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed. For Investment
Quality (NQM), Select Quality (NQS), Quality Income (NQU) and Premier
Income (NPF), the Board Members serve a one year term to serve until the
next annual meeting or until their successors shall have been duly elected
and qualified. The first year elected or appointed represents the year in
which the board member was first elected or appointed to any fund in the
Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
------
117
------
Annual Investment
Management Agreement
Approval PROCESS
--------------------------------------------------------------------------------
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 28-29, 2008 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be)(each, a
"Board" and each Trustee or Director, a "Board Member") of Nuveen Investment
Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen
Quality Income Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc.,
and Nuveen Municipal High Income Opportunity Fund (such funds, for purposes of
this discussion of the investment management agreement approval process, the
"Funds") including a majority of the Independent Board Members, considered and
approved the continuation of the advisory agreement (each, an "Advisory
Agreement") between each Fund and Nuveen Asset Management ("NAM") for an
additional one-year period. In preparation for their considerations at the May
Meeting, the Board also held a separate meeting on April 23, 2008 (the "April
Meeting"). Accordingly, the factors considered and determinations made regarding
the renewals by the Independent Board Members include those made at the April
Meeting. Nuveen Municipal High Income Opportunity Fund 2 began operations in
November 2007 and its advisory agreement was approved by its Board in October
2007; accordingly, such advisory agreement was not considered for renewal at the
May Meeting and such fund is not included within the term "Funds" for purposes
of this discussion.
In addition, in evaluating the Advisory Agreements, as described in further
detail below, the Independent Board Members reviewed a broad range of
information relating to the Funds and NAM, including absolute performance, fee
and expense information for the Funds as well as comparative performance, fee
and expense information for a comparable peer group of funds, the performance
information of recognized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly owned
subsidiaries), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
------
118
------
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line. With respect to personnel, the Independent Board Members
evaluated the background, experience and track record of NAM's investment
personnel. In this regard, the Independent Board Members considered the
additional investment in personnel to support Nuveen fund advisory activities,
including in operations, product management and marketing as well as related
fund support functions, including sales, executive, finance, human resources and
information technology. The Independent Board Members also reviewed information
regarding portfolio manager compensation arrangements to evaluate NAM's ability
to attract and retain high quality investment personnel.
In evaluating the services of NAM, the Independent Board Members also considered
NAM's ability to supervise the Funds' other service providers and given the
importance of compliance, NAM's compliance program. Among other things, the
Independent Board Members considered the report of the chief compliance officer
regarding the Funds' compliance policies and procedures.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members recognized Nuveen's continued
commitment to supporting the secondary market for the common shares of its
closed-end funds through a variety of programs designed to raise investor and
analyst awareness and understanding of closed-end funds. These efforts include
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds that utilize
leverage through the issuance of auction rate preferred securities ("ARPS"), the
Board has recognized the unprecedented market conditions in the auction rate
market industry with the failure of the auction process. The Independent Board
Members noted Nuveen's efforts and the resources and personnel employed to
analyze the situation, explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all of their
respective shareholders. The Independent Board Members further noted Nuveen's
commitment and efforts to keep investors and financial advisers informed as to
its progress in addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its website as well
as its refinancing activities. The Independent Board Members also noted Nuveen's
continued support for holders of preferred shares of its closed-end funds by,
among other things, seeking distribution for preferred shares with new market
participants, managing relations with remarketing agents and the broker
community, maintaining the leverage and risk management of leverage and
maintaining systems necessary to test compliance with rating agency criteria.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
------
119
------
| Annual Investment Management Agreement
| Approval Process (continued)
B. The Investment Performance of the Funds and NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent third party (as described below). The Independent
Board Members also reviewed portfolio level performance (which does not reflect
fund level fees, expenses and leverage), as described in further detail below.
In evaluating the performance information, the Board considered whether the Fund
has operated within its investment objectives and parameters and the impact that
the investment mandates may have had on performance. In addition, in comparing a
Fund's performance with that of its Performance Peer Group, the Independent
Board Members took into account that the closest Performance Peer Group in
certain instances may not adequately reflect the respective fund's investment
objectives and strategies thereby hindering a meaningful comparison of the
fund's performance with that of the Performance Peer Group.
The Independent Board Members reviewed performance information including, among
other things, total return information compared with the Fund's Performance Peer
Group and recognized benchmarks for the one-, three-, and five-year periods (as
applicable) ending December 31, 2007 and with the Performance Peer Group for the
quarter and same yearly periods ending March 31, 2008 (as applicable). The
Independent Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses (and leverage for
closed-end funds)) compared to recognized benchmarks for the one-, three-, and
five-year periods ending December 31, 2007 (as applicable). The analysis was
used to assess the efficacy of investment decisions against appropriate measures
of risk and total return, within specific market segments. This information
supplemented the Fund performance information provided to the Board at each of
its quarterly meetings. Based on their review, the Independent Board Members
determined that each Fund's investment performance over time had been
satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees (which
take into account breakpoints), net management fees (which take into
account fee waivers or reimbursements) and total expense ratios (before
and after expense reimbursements and/or waivers) in absolute terms as well
as compared to the gross management fees, net management fees (after
waivers and/or reimbursements) and total expense ratios (before and after
waivers) of a comparable universe of unaffiliated funds based on data
provided by an independent data provider (the "Peer Universe") and/or a
more focused subset of funds therein (the "Peer Group"). The Independent
Board Members further reviewed data regarding the construction of Peer
Groups as well as the methods of measurement for the fee and expense
analysis and the performance analysis. In reviewing the comparisons of fee
and expense information, the Independent Board Members took into account
that in certain instances various factors such as the size of the Fund
relative to peers, the size and particular composition of the Peer Group,
the investment objectives of the peers, expense anomalies, and the timing
of information used may impact the comparative data, thereby limiting the
ability to make a meaningful comparison. The Independent Board Members
also considered, among other things, the differences in the use of
leverage and the differences in the use of insurance, if any. In reviewing
the fee schedule for a Fund, the Independent Board Members also considered
the fund-level and complex-wide breakpoint schedules (described in further
detail below) and any fee waivers and reimbursements provided by Nuveen
(applicable, in particular, for certain closed-end funds launched since
1999). Based on their review of the fee and expense information provided,
the Independent Board Members determined that each Fund's management fees
and net total expense ratio were reasonable in light of the nature, extent
and quality of services provided to the Fund.
------
120
------
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. The Independent Board Members reviewed the revenues
and expenses of Nuveen's advisory activities for the last two years and
the allocation methodology used in preparing the profitability data. The
Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members considered Nuveen's
profitability compared with other fund sponsors prepared by two
independent third party service providers as well as comparisons of the
revenues, expenses and profit margins of various unaffiliated management
firms with similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's
methodology and assumptions for allocating expenses across product lines to
determine profitability. In reviewing profitability, the Independent Board
Members recognized Nuveen's investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's level
of profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly attributable
to the management of the Funds, if any. See Section E below for additional
information on indirect benefits NAM may receive as a result of its relationship
with the Funds. Based on their review of the overall fee arrangements of each
Fund, the Independent Board Members determined that the advisory fees and
expenses of the respective Fund were reasonable.
------
121
------
| Annual Investment Management Agreement
| Approval Process (continued)
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. The Independent Board Members therefore considered whether the Funds
have appropriately benefited from any economies of scale and whether there is
potential realization of any further economies of scale. In considering
economies of scale, the Independent Board Members have recognized that economies
of scale are difficult to measure and predict with precision, particularly on a
fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the
shareholders share in these benefits is to include breakpoints in the advisory
fee schedule. Accordingly, the Independent Board Members reviewed and considered
the fund-level breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Funds are closed-end funds, the Independent
Board Members recognized that although the Funds may from time to time make
additional share offerings, the growth in their assets will occur primarily
through appreciation of each Fund's investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex, including the Funds,
are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent Board Members
recognized that the complex-wide fee schedule was recently revised in 2007 to
provide for additional fee savings to shareholders and considered the amended
schedule. The Independent Board Members further considered that the complex-wide
fee arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Based on their review, the Independent Board
Members concluded that the breakpoint schedule and complex-wide fee arrangement
were acceptable and desirable in providing benefits from economies of scale to
shareholders.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's preferred trading desk and for serving
as a co-manager in the initial public offering of new closed-end exchange traded
funds.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
------
122
------
F. Other Considerations
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
------
123
------
Reinvest Automatically
EASILY and CONVENIENTLY
--------------------------------------------------------------------------------
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of
tax-free compounding. Just like dividends or distributions in cash, there
may be times when income or capital gains taxes may be payable on
dividends or distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not
ensure a profit, nor does it protect you against loss in a declining
market.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total
number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares
at the greater of the net asset value or 95% of the then-current market
price. If the shares are trading at less than net asset value, shares for
your account will be purchased on the open market. If the Plan Agent
begins purchasing Fund shares on the open market while shares are trading
below net asset value, but the Fund's shares subsequently trade at or
above their net asset value before the Plan Agent is able to complete its
purchases, the Plan Agent may cease open-market purchases and may invest
the uninvested portion of the distribution in newly-issued Fund shares at
a price equal to the greater of the shares' net asset value or 95% of the
shares' market value on the last business day immediately prior to the
purchase date. Dividends and distributions received to purchase shares in
the open market will normally be invested shortly after the dividend
payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may
exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged
on individual transactions.
------
124
------
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.
------
125
------
Glossary of
TERMS USED in this REPORT
--------------------------------------------------------------------------
o Auction Rate Bond: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o Average Effective Maturity: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o 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 disproportionately 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.
o Duration: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o 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.
------
126
------
| Other Useful INFORMATION
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 Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
Board of 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
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, NPF repurchased 4,500
common shares and redeemed 1,526 preferred shares, and NQM, NQS, NQU and NMZ
redeemed and/or noticed for redemption 2,862, 457, 1,425 and 600 preferred
shares, respectively. Any future repurchases and/or redemptions will be reported
to shareholders in the next annual or semi-annual report.
------
127
------
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, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
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/etf
| Share prices
| Fund details
| Daily financial news
| Investor education
| Interactive planning tools
EAN-C-1008D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Shareholder Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, who is "independent" for purposes of Item 3
of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Municipal High Income Opportunity Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 22,537 $ 0 $ 0 $ 800
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2007 $ 20,241 $ 0 $ 500 $ 750
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
--------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
October 31, 2007 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-----------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 800 $ 0 $ 0 $ 800
October 31, 2007 $ 1,250 $ 0 $ 0 $ 1,250
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J.
Toth, William J. Schneider and David J. Kundert.
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.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGERS
The following individuals have primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
JOHN V. MILLER Nuveen Municipal High Income Opportunity Fund
JOHNATHAN WILHELM Nuveen Municipal High Income Opportunity Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
managers are also primarily responsible for the day-to-day portfolio management
of the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
John V. Miller Registered Investment Company 5 $3.49 billion
Other Pooled Investment Vehicles 3 $117 million
Other Accounts 10 $1.4 million
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Johnathan Wilhelm Registered Investment Company 5 $3.88 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 7 $1.0 million
* Assets are as of October 31, 2008. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of October 31, 2008, the S&P/Investortools Municipal Bond index was
comprised of 52,959 securities with an aggregate current market value of $1,009
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of October 31, 2008, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
-------------------------------------------------------------------------------------------------------------------
John V. Miller Nuveen Municipal High Income Opportunity Fund $50,001-$100,000 $100,001-$500,000
-------------------------------------------------------------------------------------------------------------------
Johnathan Wilhelm Nuveen Municipal High Income Opportunity Fund $10,001-$50,000 $50,001-$100,000
-------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIOGRAPHIES:
John V. Miller, CFA, joined Nuveen's investment management team as a credit
analyst in 1996, with three prior years of experience in the municipal market
with C.W. Henderson & Assoc., a municipal bond manager for private accounts. He
has a BA in Economics and Political Science from Duke University, and an MA in
Economics from Northwestern University and an MBA with honors in Finance from
the University of Chicago. He has been responsible for analysis of high yield
credits in the utility, solid waste and energy related sectors. He is currently
a Vice President of Nuveen (since 2002). He manages investments for six
Nuveen-sponsored investment companies.
John Wilhelm joined Nuveen Investments in 1999 and currently serves as Vice
President of Nuveen Investments. He has served as co-portfolio manager of the
Fund since January 2007. Mr. Wilhelm has over eighteen years of industry
experience. From 1999 to 2006, Mr. Wilhelm headed the research activities for
industrial development bonds, utilities and real estate-backed financings. Prior
to joining NAM in 1999, Mr. Wilhelm was Senior Credit Analyst in the Van Kampen
Senior Loan Group. He received his B.S. in Business from Miami University of
Ohio and his J.D. from DePaul University. He manages investments for six
Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)*
TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR
SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF
UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET
PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR
UNIT) PROGRAMS PROGRAMS
AUGUST 7-31, 2008 0 $0 0 2,385,000
SEPTEMBER 1-30, 2008 0 $0 0 2,385,000
OCTOBER 1-31, 2008 0 $0 0 2,385,000
TOTAL 0
* The registrant's repurchase program, which authorized the repurchase of
2,385,000 shares, was announced August 7, 2008. Any repurchases made by the
registrant pursuant to the program were made through open-market
transactions.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Municipal High Income Opportunity Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: January 9, 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: January 9, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 9, 2009
-------------------------------------------------------------------