UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21449
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Nuveen Municipal High Income Opportunity Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL REPORT
April 30, 2008
Nuveen Investments
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
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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LIFE IS COMPLEX.
NUVEEN
MAKES THINGS
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Logo: NUVEEN Investments
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger | Chairman of the Board
It is with a variety of emotions that I write my last letter to Nuveen Fund
shareholders. For a dozen years, it has been my privilege to communicate
periodically with you through these annual and semi-annual reports about the
performance and uses of your Fund. Over that time, I've tried to emphasize the
central role that quality municipal bonds can play in creating attractive
opportunities for current tax-free income, long-term return and portfolio
diversification. I firmly believe that all our Fund shareholders, working in
conjunction with a trusted financial advisor, have the potential to reach their
financial objectives by using Nuveen Funds as a core component of a
well-balanced portfolio.
As I noted in your Fund's last shareholder report, Nuveen Investments was
acquired in November 2007 by a group led by Madison Dearborn Partners, LLC.
While this event had no impact on the investment objectives, portfolio
management strategies or dividend policies of your Fund, it did provide a
convenient point to begin implementing a long-planned transition in the senior
management team at Nuveen. As a part of this process, I will be leaving the
Board of the Nuveen Funds on June 30, 2008.
In addition, Nuveen and your Fund's Board determined that Fund shareholders
would be best served by having an independent director serve as the new chairman
of the Fund Board. Therefore, I am very excited and pleased to report that I
will be succeeded as chairman of your Nuveen Fund Board by Robert Bremner. A
member of the Board since 1997, Bob is a management consultant and private
investor not affiliated with Nuveen. Over the years, he has played a critical
role on the Fund Board, most recently as the lead independent director, and I
know Bob and the other Board members are determined to maintain the standards
and commitment to quality that you have come to expect from your Nuveen
investment.
Please 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
Bob Bremner 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/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 16, 2008
Portfolio Managers' COMMENTS
Nuveen Investments Municipal Closed-End Funds
NQM, NQS, NQU,
NPF, NMZ, NMD
Portfolio managers Paul Brennan, Tom Spalding, John Miller, and Johnathan
Wilhelm review key investment strategies and the six-month performance of these
six national Funds. With 19 years of industry experience, Paul assumed portfolio
management responsibility for NQM and NPF in 2006. A 31-year veteran of Nuveen,
Tom has managed NQS and NQU since 2003. John, who has 15 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 18 years
of industry experience, joined John as co-portfolio manager for NMZ and NMD in
2007.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2008?
During this six-month period, the municipal market experienced a great deal of
volatility, as issues related to the sub-prime mortgage industry had an
indirect, but important, influence on the municipal market's performance.
Tighter liquidity stemming from problems in the credit markets contributed to a
turbulent municipal market environment, as did the continued uncertainty about
municipal bond insurers and the flight to quality driven by dislocations in the
financial markets. We sought to capitalize on this environment by continuing to
focus on relative value, using a fundamental approach to find undervalued
sectors and individual credits with the potential to perform well over the long
term.
As the market discounted bonds that were out of favor, such as those with lower
credit quality and higher yields, we took advantage of opportunities that we
considered overlooked and undervalued to selectively add these types of bonds to
our portfolios, especially bonds rated BBB. In addition, we believed that the
steepening municipal yield curve began to offer better reward opportunities for
purchases made further out on the curve. As a result, many of the additions to
our portfolios emphasized longer maturities.
Among the credits we added to the Funds were uninsured health care bonds,
marking the first time in a while that we found bonds in this sector at
attractive levels relative to their credit quality. NQM, NQS and NQU also
purchased zero coupon bonds, which we believed offered good long-term potential
at discounted prices. In NQM and NPF, we added exposure to the short end of the
yield curve by purchasing variable rate demand obligations (VRDOs) at very
attractive yields. VRDOs are floating-rate securities that offer interest rates
set daily or weekly based on an index of short-term municipal rates. In NMZ, we
added high-grade issues such as Duke University at attractive yields as well as
non-rated bonds such as those issued for the Old Palm and Pine Island (Florida)
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
community development districts (CDD). Although the market for these CDD, or
land-secured, offerings was under pressure due to the housing market slowdown,
we used a bottom-up approach to find the strongest credits at attractive prices,
adding both yield and price appreciation potential to our portfolio.
To generate cash for purchases, NQM, NQS, NQU, and NPF selectively sold some
holdings with shorter durations,(1) including pre-refunded bonds,(2) at
attractive prices resulting from high demand. Selling shorter duration bonds and
reinvesting further out on the yield curve also helped to improve the Funds'
overall call protection profiles. NMZ sold bonds with lower embedded yields,
particularly subinvestment-grade bonds, to take advantage of situations offering
better yields and more upside price potential in both the new issue and
secondary markets. In addition, a number of our new purchases were funded with
cash generated by bond redemptions and calls, especially in NMZ.
As mentioned earlier, over the course of the entire reporting period, we saw the
municipal yield curve steepen, as municipal bond interest rates at the short end
of the curve declined and longer rates rose. In this environment, we continued
to emphasize disciplined approach to duration management. As part of this
strategy, we used inverse floating rate securities,(3) a type of derivative
financial instrument, 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. NPF also
used forward interest rate swaps, another type of derivative financial
instrument. The goal of this strategy was to help us manage NPF's common share
net asset value (NAV) volatility without having a negative impact on its income
stream or common share dividends over the short term.
In November 2007, we introduced the Nuveen Municipal High Income Opportunity
Fund 2 (NMD), which--like NMZ--was established as a high-yield Fund that invests
at least 50% of its portfolio in investment-grade quality municipal securities
and up to 50% in municipal credits that are rated subinvestment-grade quality or
that are unrated but judged to be of comparable quality. Our management
strategies for NMZ during this time focused on the successful completion of the
Fund's initial investment phase. At the end of this reporting period, the Fund
was fully invested and had met all of its targeted objectives in terms of
individual credit, diversification, and yield expectations. Our focus during the
investment phase was primarily on credit-specific analysis and selection, which
we believe are critical, especially in the high-yield segment of the market.
Potential Fund holdings were analyzed on the basis of credit quality, credit
spreads, and relative value. The investment process was facilitated by a market
that provided ample supply of the types of bonds we were seeking for NMD's
portfolio, including hospitals and long-term care, limited tax obligations,
community development districts, charter schools and transportation.
(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.
(2) Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
(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.
5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
Total Returns on Common Share Net Asset Value*
For periods ended 4/30/08
Six-Month 1-Year 5-Year 10-Year
NQM -1.25% -1.67% 4.26% 5.44%
NQS -1.71% -1.52% 4.76% 5.71%
NQU 0.31% 0.38% 5.24% 5.60%
NPF -2.65% -3.55% 3.54% 5.18%
Lipper General
Leveraged
Municipal Debt
Funds Average(4) -2.54% -3.47% 4.64% 5.24%
Lehman Brothers
Municipal
Bond Index(5) 1.47% 2.79% 4.03% 5.16%
NMZ -6.66% -7.65% N/A N/A
NMD(6)** -2.90% N/A N/A N/A
Lipper High-Yield
Municipal Debt
Funds Average(4) -4.71% -5.96% N/A N/A
Lehman Brothers
High-Yield Municipal
Bond Index(5) -5.60% -6.65% N/A N/A
For the six months ended April 30, 2008, the cumulative returns on common share
NAV for NQM, NQS, NQU and NPF underperformed the return on the Lehman Brothers
Municipal Bond Index. The performance of NQM, NQS, and NQU exceeded the average
return for their Lipper General Leveraged Municipal Debt Funds Average, while
NPF slightly trailed the average. NMZ underperformed both the Lehman Brothers
High-Yield Municipal Bond Index and the Lipper High-Yield Municipal Debt Funds
Average. Because its results are based on less than six months, NMD's return
should not be compared directly with the six-month returns for the Lehman
Brothers High-Yield Municipal Bond Index and Lipper High-Yield Municipal Debt
Funds Average. However, these returns can serve as relative guidelines for NMD's
performance over this period.
One of the major factors impacting the six-month performance of NQM, NQS, NQU,
NPF and NMZ in relation to those of their respective unleveraged Lehman Brothers
* Six-month returns are cumulative; returns for one-year, five-year, and
ten-year are annualized.
** NMD's cumulative return represents the period from its inception on
November 15, 2007, through April 30, 2008; the six-month returns for the
Lehman Brothers High-Yield Municipal Bond Index and the Lipper High-Yield
Municipal Debt Funds Average represent the period November 1, 2007, through
April 30, 2008.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(4) The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: six months, 54; 1 year, 54; 5 years, 52; and 10 years, 38. Fund
and Lipper returns assume reinvestment of dividends. The Lipper High-Yield
Municipal Debt Funds Average is calculated using the returns of all 15
closed-end funds in this category for the six-month and one-year periods.
Fund and Lipper returns assume reinvestment of dividends.
(5) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. The Lehman 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 Lehman indexes do not
reflect any expenses.
(6) NMD is an unleveraged Fund; the remaining five Funds in this report are
leveraged.
6
Municipal Bond Indexes was the use of financial leverage. While leverage
provides opportunities for additional income and total returns for common
shareholders, the benefits of leveraging are tied in part to the short-term
rates that leveraged Funds pay their preferred shareholders. During this period,
as the yields on longer-term bonds rose and their prices correspondingly fell,
declining valuations had a negative effect on performance that was magnified by
the use of leverage. In addition, the Funds' borrowing costs remained relatively
high, negatively impacting their total returns.
Other key factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives, credit exposure and sector
allocations and holdings of bonds backed by certain municipal bond insurers.
During this six-month period, bonds in the Lehman Brothers Municipal Bond Index
with maturities of eight years or less, especially those maturing in two to six
years, benefited the most from changes in the interest rate environment. As a
result, these shorter maturity bonds generally outperformed credits with longer
maturities. Bonds having the longest maturities (22 years and longer) posted the
worst returns. As previously noted, one of our strategies during this period
focused on adding longer bonds to our portfolios as the yield curve steepened,
based on our belief that these bonds offered solid long-term potential. This
purchase activity helped to extend the Funds' durations, which generally had a
negative impact on performance during these past six months. While NQU benefited
from having the shortest duration among these Funds, on the whole the Funds were
overexposed to the underperforming longer part of the yield curve, with NMZ and
NMD having the longest durations.
As mentioned earlier, NPF used forward interest rate swaps to synthetically
shorten duration and move the Fund closer to our strategic duration target.
During this period, in contrast to historical trends, the U.S. Treasury market
and the municipal market moved in the opposite directions. As municipal market
performance lagged the significant gains made by Treasuries, these forward
interest rate swaps performed poorly, hurting NPF's performance. In addition,
the inverse floaters used by all six of these Funds had a negative impact on
performance. This resulted from the fact that the inverse floaters effectively
increased the Funds' exposure to longer maturity bonds during a period when
shorter maturities were in favor in the market. However, the inverse floaters
also benefited the Funds by helping to support their income streams.
As credit spreads widened, bonds rated BBB or below posted poor returns. The
underperformance of the lower credit quality sector was largely the result of
risk-averse investors' flight to quality as disruptions in the financial and
housing markets deepened. As of April 30, 2008, holdings of bonds rated BBB
ranged from 7% in NQU and 10% in NQM to 11% in NPF and 14% in NQS. These
allocations were generally higher than that of the Lehman Brothers Municipal
Bond Index, and the negative impact of this
7
greater exposure to credit risk accounted for some of the performance
differential between these Funds and the index.
In addition to its holdings of approximately 16% in bonds rated BBB, NMZ held
15% in bonds rated BB or lower (subinvestment-grade) and 41% in non-rated bonds,
some of which Nuveen has determined to be of investment-grade quality. NMD's
lower-rated holdings comprised 28% in BBB rated bonds, 11% in bonds rated BB or
lower, and 35% in non-rated bonds. Overall, conditions in the high-yield market
were poor due to the flight to quality, low demand for high-yield paper, and
credit spreads that widened significantly. These factors were the main drivers
behind the performance of these Funds' holdings of higher-yielding credits.
In general, bonds that carried any credit risk, regardless of sector, tended to
perform poorly. Revenue bonds as a whole, and especially the industrial
development and health care sectors that had ranked among the top performers in
the Lehman Brothers Municipal Bond Index over the past few years, underperformed
the general municipal market. The housing sector also performed poorly, as did
bonds backed by the 1998 master tobacco settlement agreement, which comprised
approximately 4% to 5% of the portfolios of these Funds as of April 30, 2008.
NMZ also held two credits that experienced some financial stress, which resulted
in declines in valuation: Pontiac Hospital Finance Authority for North Oakland
Medical Center in Michigan and the Las Vegas monorail project in Nevada. The
four-year-old monorail project, which has been struggling to build ridership and
turn a profit, was penalized by the market for dipping into its debt service
reserve fund to cover scheduled bond principal and interest payments.
Sectors of the market that generally contributed positively to the Funds'
performances included general obligation bonds, water and sewer, electric
utilities and special tax issues. Pre-refunded bonds performed exceptionally
well, due primarily to their shorter effective maturities and higher credit
quality. Among these Funds, NQU had the heaviest allocation of bonds that had
been advance refunded, while NPF had the fewest. (As a newly established Fund,
NMD did not hold any bonds pre-refunded as of April 30, 2008.) NMZ continued to
see positive contributions from advance refunding activity, which benefited the
Fund through price appreciation and enhanced credit quality. Some of the larger
advance refundings included bonds issued by New Jersey Tobacco Settlement
Financing Corporation, West Penn Allegheny Health System, and Nataki Talibah
Schoolhouse in Michigan.
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by certain municipal insurers. As concern increased
about the balance sheets of municipal bond insurers, prices on bonds insured by
these companies declined, detracting from the performance of the Funds. 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.
8
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
The portfolios of investments reflect the ratings on certain bonds insured by
AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. During the period covered
by this report, at least one rating agency reduced the rating for AMBAC-insured
and MBIA-insured bonds to AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds to BB. Subsequent to April 30,
2008, and at the time this report was prepared, at least one rating agency
further reduced the rating for CIFG-insured bonds to BB and MBIA-insured bonds
to A. As of April 30, 2008, at least one rating agency has placed XLCA-insured
bonds on "negative credit watch" and one or more rating agencies have placed
each of these insurers on "negative outlook", which may presage one or more
rating reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that insurer or insurers.
It is important to note that municipal bonds historically have had a very low
rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the 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 preferred shareholders who wanted to sell their shares in
these auctions were unable to do so. This decline in liquidity in auction
preferred shares did not lower the credit quality of these shares, and auction
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 preferred shares. At the time this
report was prepared, the Funds' managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares offered, if ever.
The Funds' managers are working diligently to refund the auction preferred
shares, and have made progress in these efforts, but at present there is no
assurance that these efforts will succeed. These developments generally do not
affect the management or investment policies of these 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 than they otherwise would have
been.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
9
Common Share
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report except NMD use leverage to
potentially enhance opportunities for additional income for common shareholders.
This strategy continued to provide support for the leveraged Funds' income
streams during this turbulent period. As a result, the dividends of NQM, NQS,
NQU, NPF and NMZ remained stable throughout the six-month reporting period ended
April 30, 2008. NMD, which was introduced in November 2007, paid its first
regular monthly dividend in January 2008, and its dividend continued to be
stable during the remainder of this period.
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 common share 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 common share NAV. Each Fund will, over time,
pay all of its net investment income as dividends to shareholders. As of April
30, 2008, all of the funds in this report had positive UNII balances, based upon
our best estimate, for tax purposes. NQM, NQS, NQU and NPF,
10
had negative UNII balances while NMZ and NMD had positive UNII balances for
financial statement purposes.
As of April 30, 2008, the Funds' common share prices were trading at premiums or
discounts to their common share NAVs as shown in the accompanying chart:
4/30/08 Six-Month Average
Premium/Discount Premium/Discount
NQM -5.12% -6.31%
NQS -0.90% -3.59%
NQU -7.87% -8.27%
NPF -8.53% -10.64%
NMZ +12.56% +5.99%
NMD +7.06% +4.76%
COMMONSHARE REPURCHASE AND SHARE PRICE INFORMATION
On July 10, 2007, the Board of Directors of NPF approved an open market share
repurchase program, as part of a broad, ongoing effort designed to support the
market prices of the Fund's common shares. Repurchases not only help to support
the market price, but because such purchases are made at a discount to
NAV, they have the effect of augmenting NAV. Under the terms of the program, NPF
may repurchase up to 10% of its outstanding common shares. As of April 30, 2008,
NPF had repurchased 186,800 common shares, representing 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. NMZ issued 297,054 shares
during the reporting period at an average price of $15.75 and an average premium
to NAV of 4.99% per common share.
11
NQM
Performance
OVERVIEW
Nuveen Investment
Quality Municipal
Fund, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 62%
AA 13%
A 12%
BBB 10%
BB or Lower 1%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
May 0.0675
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0645
Oct 0.0645
Nov 0.0645
Dec 0.0645
Jan 0.0645
Feb 0.0645
Mar 0.0645
Apr 0.0645
Line Chart:
Common Share Price Performance -- Weekly Closing Price
5/01/07 15.67
15.7
15.66
15.62
15.48
15.46
15.13
14.89
14.92
14.89
14.877
14.75
14.75
14.67
14.7201
14.6
14.78
14.49
14.47
14.65
14.5
14.37
14.4
14.53
14.54
14.69
13.82
13.78
13.4
13.23
13.31
13.5
13.65
13.46
13.28
13.6
14.11
14.23
14.23
14.49
14.61
14.66
13.92
13.62
13.57
13.7
13.52
13.36
13.58
13.69
13.62
13.7
13.83
4/30/08 13.71
FUND SNAPSHOT
------------------------------------
Common Share Price $13.71
------------------------------------
Common Share Net Asset Value $14.45
------------------------------------
Premium/(Discount) to NAV -5.12%
------------------------------------
Market Yield 5.65%
------------------------------------
Taxable-Equivalent Yield(2) 7.85%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $517,704
------------------------------------
Average Effective Maturity on
Securities (Years) 14.48
------------------------------------
Leverage-Adjusted Duration 11.96
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/21/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
Cumulative 1.60% -1.25%
------------------------------------
1-Year -7.64% -1.67%
------------------------------------
5-Year 3.98% 4.26%
------------------------------------
10-Year 5.22% 5.44%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 13.5%
------------------------------------
New York 10.2%
------------------------------------
Texas 8.9%
------------------------------------
Illinois 7.8%
------------------------------------
Washington 5.8%
------------------------------------
Minnesota 4.6%
------------------------------------
District of Columbia 4.3%
------------------------------------
Georgia 3.0%
------------------------------------
Nevada 2.9%
------------------------------------
Ohio 2.8%
------------------------------------
Michigan 2.6%
------------------------------------
Wisconsin 2.5%
------------------------------------
Louisiana 2.4%
------------------------------------
Florida 2.4%
------------------------------------
Indiana 2.1%
------------------------------------
Oklahoma 2.0%
------------------------------------
Massachusetts 1.9%
------------------------------------
Pennsylvania 1.8%
------------------------------------
Colorado 1.7%
------------------------------------
South Carolina 1.6%
------------------------------------
New Jersey 1.4%
------------------------------------
Other 13.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 26.6%
------------------------------------
Health Care 14.7%
------------------------------------
Tax Obligation/General 12.9%
------------------------------------
Tax Obligation/Limited 11.5%
------------------------------------
Transportation 9.5%
------------------------------------
Water and Sewer 6.3%
------------------------------------
Utilities 5.8%
------------------------------------
Other 12.7%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
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 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.
12
NQS
Performance
OVERVIEW
Nuveen Select
Quality Municipal
Fund, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 64%
AA 9%
A 8%
BBB 14%
BB or Lower 4%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.0705
Jun 0.067
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.067
Apr 0.067
Line Chart:
Common Share Price Performance -- Weekly Closing Price
5/01/07 16.45
16.6
16.6
16.36
16
15.84
15.54
14.96
14.84
14.97
14.84
14.76
15.01
14.77
14.74
14.62
14.4
14.5
14.83
14.93
14.76
14.72
14.86
14.8
14.74
15.1
15.15
14.81
14.12
13.76
14.11
13.95
14.05
14
13.84
13.72
14.53
14.82
14.51
14.87
14.98
14.93
14.14
13.75
13.35
13.8
13.33
13.25
13.73
13.82
14.09
14.23
14.24
4/30/08 14.26
FUND SNAPSHOT
------------------------------------
Common Share Price $14.26
------------------------------------
Common Share Net Asset Value $14.39
------------------------------------
Premium/(Discount) to NAV -0.90%
------------------------------------
Market Yield 5.64%
------------------------------------
Taxable-Equivalent Yield(2) 7.83%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $489,646
------------------------------------
Average Effective Maturity on
Securities (Years) 14.78
------------------------------------
Leverage-Adjusted Duration 11.04
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
Cumulative -2.18% -1.71%
------------------------------------
1-Year -8.03% -1.52%
------------------------------------
5-Year 5.64% 4.76%
------------------------------------
10-Year 5.62% 5.71%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 9.4%
------------------------------------
Illinois 9.2%
------------------------------------
Colorado 7.7%
------------------------------------
New York 7.2%
------------------------------------
South Carolina 6.2%
------------------------------------
Michigan 5.3%
------------------------------------
Nevada 4.8%
------------------------------------
New Jersey 4.6%
------------------------------------
Tennessee 4.1%
------------------------------------
California 3.8%
------------------------------------
Ohio 3.8%
------------------------------------
New Mexico 3.1%
------------------------------------
Florida 2.7%
------------------------------------
Utah 2.6%
------------------------------------
Washington 2.4%
------------------------------------
North Carolina 2.4%
------------------------------------
District of Columbia 2.1%
------------------------------------
Alabama 2.1%
------------------------------------
Wisconsin 1.9%
------------------------------------
Other 14.6%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 30.4%
------------------------------------
Health Care 14.5%
------------------------------------
Utilities 14.3%
------------------------------------
Transportation 12.3%
------------------------------------
Tax Obligation/General 8.2%
------------------------------------
Tax Obligation/Limited 7.7%
------------------------------------
Consumer Staples 5.8%
------------------------------------
Other 6.8%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
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.
13
NQU
Performance
OVERVIEW
Nuveen Quality
Income Municipal
Fund, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 70%
AA 10%
A 8%
BBB 7%
BB or Lower 4%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.0635
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0605
Apr 0.0605
Line Chart:
Common Share Price Performance -- Weekly Closing Price
5/01/07 15.58
15.59
15.47
15.22
15.13
15.04
14.7
14.1
13.92
13.96
13.94
13.72
13.72
13.75
13.81
13.56
13.5
13.65
13.8
14.24
13.89
13.65
13.72
13.66
13.74
13.97
13.62
13.58
13.16
12.95
13.1
13.35
13.32
12.99
12.98
13.16
14.25
14.2
14.03
14.35
14.28
14.36
13.5
13.196
12.94
13.53
13.44
13.29
13.46
13.44
13.31
13.46
13.46
4/30/08 13.47
FUND SNAPSHOT
------------------------------------
Common Share Price $13.47
------------------------------------
Common Share Net Asset Value $14.62
------------------------------------
Premium/(Discount) to NAV -7.87%
------------------------------------
Market Yield 5.39%
------------------------------------
Taxable-Equivalent Yield(2) 7.49%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $792,663
------------------------------------
Average Effective Maturity on
Securities (Years) 13.02
------------------------------------
Leverage-Adjusted Duration 10.21
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
Cumulative 1.40% 0.31%
------------------------------------
1-Year -8.60% 0.38%
------------------------------------
5-Year 4.50% 5.24%
------------------------------------
10-Year 4.55% 5.60%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 10.9%
------------------------------------
New York 10.6%
------------------------------------
Illinois 9.7%
------------------------------------
California 8.5%
------------------------------------
South Carolina 5.8%
------------------------------------
Washington 5.6%
------------------------------------
Massachusetts 5.0%
------------------------------------
Oklahoma 4.3%
------------------------------------
Nevada 3.8%
------------------------------------
Colorado 3.3%
------------------------------------
New Jersey 3.1%
------------------------------------
Puerto Rico 3.0%
------------------------------------
Ohio 2.7%
------------------------------------
Pennsylvania 2.3%
------------------------------------
Louisiana 2.2%
------------------------------------
Alabama 2.0%
------------------------------------
North Carolina 1.9%
------------------------------------
Iowa 1.4%
------------------------------------
Other 13.9%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 37.0%
------------------------------------
Tax Obligation/General 14.6%
------------------------------------
Transportation 13.6%
------------------------------------
Utilities 9.0%
------------------------------------
Health Care 8.0%
------------------------------------
Tax Obligation/Limited 5.4%
------------------------------------
Other 12.4%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
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 qualified dividend income, the
Taxable-Equivalent Yield is lower.
14
NPF
Performance
OVERVIEW
Nuveen Premier
Municipal Income
Fund, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1), (2)
AAA/U.S. Guaranteed 46%
AA 21%
A 21%
BBB 11%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share
May 0.056
Jun 0.056
Jul 0.056
Aug 0.056
Sep 0.056
Oct 0.056
Nov 0.056
Dec 0.056
Jan 0.056
Feb 0.056
Mar 0.056
Apr 0.056
Line Chart:
Common Share Price Performance -- Weekly Closing Price
5/01/07 14.12
14.19
14.16
14.12
13.93
13.88
13.61
13.48
13.5
13.61
13.5
13.43
13.461
13.49
13.66
13.25
13.15
13.05
13.4
13.58
13.54
13.28
13.3
13.26
13.2
13.21
13.2109
13.04
12.66
12.4
12.63
12.74
12.81
12.65
12.65
12.85
13.3
13.55
13.36
13.44
13.27
13.37
12.72
12.61
12.18
12.49
12.31
12.2201
12.64
12.55
12.74
12.78
12.93
4/30/08 12.86
FUND SNAPSHOT
------------------------------------
Common Share Price $12.86
------------------------------------
Common Share Net Asset Value $14.06
------------------------------------
Premium/(Discount) to NAV -8.53%
------------------------------------
Market Yield 5.23%
------------------------------------
Taxable-Equivalent Yield(3) 7.26%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $279,886
------------------------------------
Average Effective Maturity on
Securities (Years) 15.26
------------------------------------
Leverage-Adjusted Duration 11.60
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
Cumulative -0.76% -2.65%
------------------------------------
1-Year -4.18% -3.55%
------------------------------------
5-Year 2.98% 3.54%
------------------------------------
10-Year 4.10% 5.18%
------------------------------------
STATES
(as a % of total investments)(2)
------------------------------------
California 13.6%
------------------------------------
New York 12.3%
------------------------------------
Illinois 7.6%
------------------------------------
Colorado 6.2%
------------------------------------
Washington 5.2%
------------------------------------
South Carolina 4.6%
------------------------------------
Louisiana 4.3%
------------------------------------
Arizona 4.2%
------------------------------------
Texas 3.6%
------------------------------------
Wisconsin 3.4%
------------------------------------
New Jersey 3.3%
------------------------------------
Minnesota 2.9%
------------------------------------
Georgia 2.5%
------------------------------------
Michigan 2.3%
------------------------------------
North Carolina 2.3%
------------------------------------
Indiana 1.8%
------------------------------------
Nebraska 1.6%
------------------------------------
Ohio 1.6%
------------------------------------
Rhode Island 1.5%
------------------------------------
Oklahoma 1.4%
------------------------------------
Other 13.8%
------------------------------------
INDUSTRIES
(as a % of total investments)(2)
------------------------------------
Tax Obligation/Limited 17.4%
------------------------------------
U.S. Guaranteed 13.9%
------------------------------------
Utilities 13.6%
------------------------------------
Tax Obligation/General 12.9%
------------------------------------
Health Care 12.2%
------------------------------------
Transportation 9.7%
------------------------------------
Water and Sewer 5.7%
------------------------------------
Other 14.6%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
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.
15
NMZ
Performance
OVERVIEW
Nuveen Municipal
High Income
Opportunity Fund
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 18%
AA 6%
A 4%
BBB 16%
BB or Lower 15%
N/R 41%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
May 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.0815
Oct 0.0815
Nov 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0815
Apr 0.0815
Line Chart:
Common Share Price Performance -- Weekly Closing Price
5/01/07 18.03
18.1112
18.16
17.82
17.69
17.6
16.65
16.44
16.9
17.06
16.99
16.74
16.31
16.15
16.2001
16.29
15.33
16.01
16.5
16.81
16.45
16.21
16.17
16.07
16.11
16
15.85
15.87
15.69
15.51
15.31
14.98
15.38
15
14.34
14.57
15.52
15.98
15.5399
15.81
15.97
16.03
15.01
14.95
14.92
15.26
15.03
14.75
15.21
15.24
15.22
15.4
15.31
4/30/08 15.5
FUND SNAPSHOT
------------------------------------
Common Share Price $15.50
------------------------------------
Common Share Net Asset Value $13.77
------------------------------------
Premium/(Discount) to NAV 12.56%
------------------------------------
Market Yield 6.31%
------------------------------------
Taxable-Equivalent Yield(2) 8.76%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $328,504
------------------------------------
Average Effective Maturity on
Securities (Years) 19.17
------------------------------------
Leverage-Adjusted Duration 13.92
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/03)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
Cumulative 1.90% -6.66%
------------------------------------
1-Year -8.51% -7.65%
------------------------------------
Since
Inception 7.62% 6.13%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 9.1%
------------------------------------
Colorado 6.6%
------------------------------------
Indiana 6.4%
------------------------------------
Texas 6.2%
------------------------------------
Ohio 6.1%
------------------------------------
Wisconsin 6.1%
------------------------------------
Louisiana 5.9%
------------------------------------
Florida 5.8%
------------------------------------
Illinois 4.8%
------------------------------------
Arizona 3.5%
------------------------------------
Pennsylvania 3.3%
------------------------------------
Virginia 3.3%
------------------------------------
New Jersey 3.1%
------------------------------------
Washington 2.7%
------------------------------------
Michigan 2.6%
------------------------------------
Maryland 2.2%
------------------------------------
Minnesota 2.1%
------------------------------------
Tennessee 1.8%
------------------------------------
Nebraska 1.8%
------------------------------------
Missouri 1.7%
------------------------------------
Other 14.9%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 19.6%
------------------------------------
Tax Obligation/Limited 15.7%
------------------------------------
U.S. Guaranteed 14.4%
------------------------------------
Housing/Multifamily 8.1%
------------------------------------
Utilities 6.1%
------------------------------------
Transportation 5.5%
------------------------------------
Industrials 5.1%
------------------------------------
Water and Sewer 5.0%
------------------------------------
Education and Civic
Organizations 5.0%
------------------------------------
Materials 4.5%
------------------------------------
Other 11.0%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
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 qualified dividend income, the
Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0933 per share.
16
NMD
Performance
OVERVIEW
Nuveen Municipal
High Income
Opportunity Fund 2
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1), (2)
AAA/U.S. Guaranteed 4%
AA 6%
A 16%
BBB 28%
BB or Lower 11%
N/R 35%
Bar Chart:
2008 Monthly Tax-Free Dividends Per Common Share
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/16/07 15
15
15.01
15.01
15.04
14.97
14.85
15.09
15
15.03
15.01
15.1
15.14
14.6601
14.45
14.05
14.15
13.7
13.64
13.85
13.92
14.12
14.26
14.42
4/30/08 14.55
FUND SNAPSHOT
------------------------------------
Common Share Price $14.55
------------------------------------
Common Share Net Asset Value $13.59
------------------------------------
Premium/(Discount) to NAV 7.06%
------------------------------------
Market Yield 6.47%
------------------------------------
Taxable-Equivalent Yield(3) 8.99%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $214,608
------------------------------------
Average Effective Maturity on
Securities (Years) 26.93
------------------------------------
Modified Duration 18.09
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/07)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
Since
Inception -0.77% -2.90%
------------------------------------
STATES
(as a % of total investments)(2)
------------------------------------
California 18.2%
------------------------------------
Florida 9.9%
------------------------------------
Illinois 7.2%
------------------------------------
Texas 7.0%
------------------------------------
Louisiana 7.0%
------------------------------------
Colorado 5.4%
------------------------------------
Wisconsin 5.1%
------------------------------------
Washington 4.2%
------------------------------------
South Carolina 3.3%
------------------------------------
New Jersey 3.2%
------------------------------------
Utah 3.2%
------------------------------------
Arizona 3.1%
------------------------------------
Ohio 3.0%
------------------------------------
Georgia 2.1%
------------------------------------
Indiana 2.1%
------------------------------------
Minnesota 1.9%
------------------------------------
Other 14.1%
------------------------------------
INDUSTRIES
(as a % of total investments)(2)
------------------------------------
Health Care 31.4%
------------------------------------
Tax Obligation/Limited 22.7%
------------------------------------
Education and Civic
Organizations 11.0%
------------------------------------
Consumer Discretionary 5.5%
------------------------------------
Transportation 5.0%
------------------------------------
Industrials 4.8%
------------------------------------
Consumer Staples 4.4%
------------------------------------
Utilities 4.0%
------------------------------------
Other 11.2%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
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 qualified dividend income, the
Taxable-Equivalent Yield is lower.
17
NQM
Nuveen Investment Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.3% (0.8% OF TOTAL INVESTMENTS)
$ 3,800 Alabama Special Care Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa1 $ 3,754,362
Ascension Health, Series 2006C-2, 5.000%, 11/15/36
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 1,167,744
800 5.000%, 11/15/30 11/15 at 100.00 Baa1 696,472
1,250 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,090,250
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,050 Total Alabama 6,708,828
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.7% (1.0% OF TOTAL INVESTMENTS)
4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 4,300,720
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
(Pre-refunded 6/01/10)
Northern Tobacco Securitization Corporation, Alaska, Tobacco
Settlement Asset-Backed Bonds, Series 2006A:
4,000 5.000%, 6/01/32 6/14 at 100.00 Baa3 3,287,040
1,500 5.000%, 6/01/46 6/14 at 100.00 Baa3 1,172,025
------------------------------------------------------------------------------------------------------------------------------------
9,500 Total Alaska 8,759,785
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.0% (0.6% 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 197,376
265 5.250%, 12/01/25 12/15 at 100.00 BBB 259,920
3,335 Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, 7/17 at 100.00 Aaa 2,620,343
Series 11032- 11034, 7.452%, 7/01/31 - FSA Insured (IF)
2,450 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 2,199,610
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total Arizona 5,277,249
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,125 Arkansas Development Finance Authority, Home Mortgage Revenue 7/08 at 101.50 AAA 1,146,150
Bonds, FNMA/GNMA Mortgage-Backed Securities Program,
Series 1998A, 5.150%, 7/01/17
University of Arkansas, Pine Bluff Campus, Revenue Bonds,
Series 2005A:
3,290 5.000%, 12/01/30 - AMBAC Insured 12/15 at 100.00 Aaa 3,360,669
2,000 5.000%, 12/01/35 - AMBAC Insured 12/15 at 100.00 Aaa 2,036,560
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 Aaa 1,096,303
2,960 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 3,080,383
1,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 BBB 925,000
Regional Medical Center, Series 2005B, 5.000%, 2/01/30
------------------------------------------------------------------------------------------------------------------------------------
11,430 Total Arkansas 11,645,065
------------------------------------------------------------------------------------------------------------------------------------
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.8% (12.9% OF TOTAL INVESTMENTS)
$ 2,250 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ $ 2,272,343
University of Southern California, Series 2005, 4.750%, 10/01/28
1,000 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,000,000
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 2,504,600
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+ 4,151,137
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,500 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 5,367,340
Sutter Health, Series 2007A, 5.000%, 11/15/42
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+ 925,920
1,000 5.000%, 7/01/39 7/15 at 100.00 BBB+ 860,900
10,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/25 8/13 at 100.00 A+ 10,327,800
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,934,922
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 AA 2,473,100
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 Allocation 8/13 at 100.00 N/R (4) 158,643
Refunding Bonds, Redevelopment Projects 2 and 3, Series 2003A,
5.000%, 8/01/28 (Pre-refunded 8/01/13) - RAAI Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
3,000 5.000%, 6/01/33 6/17 at 100.00 BBB 2,561,610
610 5.125%, 6/01/47 6/17 at 100.00 BBB 493,679
9,740 Huntington Park Redevelopment Agency, California, Single Family No Opt. Call AAA 13,406,136
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 AAA 1,153,713
General Obligation Refunding Bonds, Series 1999,
5.950%, 9/01/21 - MBIA Insured
15,770 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 20,094,132
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - MBIA Insured
13,145 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 18,147,593
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) 3,864,380
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+ 5,014,300
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 240,218
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 259,633
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 AAA 1,940,741
8,135 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 1,735,684
17,195 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 3,454,819
3,185 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 AAA 3,186,593
4.750%, 5/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
119,035 Total California 107,529,936
------------------------------------------------------------------------------------------------------------------------------------
19
NQM
Nuveen Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.7% (1.7% OF TOTAL INVESTMENTS)
$ 1,000 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- $ 941,570
Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 3/15 at 100.00 BBB+ 381,148
Health Care, Series 2005F, 5.000%, 3/01/25
10 Colorado Housing Finance Authority, Single Family Program 5/08 at 104.50 Aaa 10,195
Senior Bonds, Series 1996B, 7.450%, 11/01/27
12,450 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 12,706,470
Refunding Bonds, Series 2000A, 6.000%, 11/15/19 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,860 Total Colorado 14,039,383
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 6.9% (4.3% OF TOTAL INVESTMENTS)
23,745 District of Columbia Water and Sewerage Authority, Public Utility 4/09 at 160.00 AAA 26,600,570
Revenue Bonds, Series 1998, 5.500%, 10/01/23 - FSA Insured
3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 3,457,710
6.000%, 6/01/16 - MBIA Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 AAA 4,532,671
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 991,296
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
43,895 Total District of Columbia 35,582,247
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.9% (2.4% OF TOTAL INVESTMENTS)
1,000 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 AAA 1,017,150
Revenue Bonds, Series 2005A, 5.000%, 5/01/27 - MBIA Insured
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,193,199
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
1,580 Escambia County Health Facilities Authority, Florida, Health Facility 10/08 at 101.00 BBB+ 1,573,854
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 3,116,800
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
1,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/17 at 100.00 AAA 935,350
International Airport Hub, Series 2007B, 4.500%, 10/01/31 -
MBIA Insured
4,335 Miami-Dade County, Florida, Aviation Revenue Bonds, Residuals 10/17 at 100.00 AA 3,494,357
Series 1016, 2.967%, 10/01/31 - MBIA Insured (IF)
5,895 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 5,752,872
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42
------------------------------------------------------------------------------------------------------------------------------------
21,240 Total Florida 20,083,582
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.8% (3.0% OF TOTAL INVESTMENTS)
10,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ (4) 10,601,900
Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) -
FGIC Insured
2,710 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 2,805,744
Series 2004, 5.000%, 11/01/23 - FSA Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call AAA 2,202,520
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 AAA 6,365,291
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+ 2,623,883
Obligation Bonds, Fourth Crossover Series 1997E,
6.500%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
22,940 Total Georgia 24,599,338
------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aaa $ 4,974,791
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- 452,925
500 5.250%, 9/01/30 9/16 at 100.00 BBB- 436,390
------------------------------------------------------------------------------------------------------------------------------------
5,810 Total Idaho 5,864,106
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.5.% (7.8% OF TOTAL INVESTMENTS)
4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene University, 3/10 at 101.00 AA (4) 5,062,251
Series 2000, 6.250%, 3/01/20 (Pre-refunded 3/01/10) -
RAAI Insured
14,600 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 AAA 16,288,490
General Obligation Bonds, Series 2006, 5.000%, 12/01/35
(Pre-refunded 12/01/16) (UB)
4,775 Chicago Public Building Commission, Illinois, General Obligation 3/13 at 100.00 AAA 5,247,200
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 2,292,916
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 2,492,750
1,000 5.250%, 11/15/22 5/14 at 100.00 A 989,960
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 359,640
Series 2006, 5.125%, 1/01/25
2,600 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical 5/12 at 100.00 Baa3 2,486,484
Center, Series 2002, 5.500%, 5/15/32
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, Illinois, No Opt. Call Aaa 14,803,629
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 Baa3 (4) 6,872,922
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 AAA 3,114,326
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 1,463,608
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,706,588
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call Aaa 1,488,995
Obligation School Building Bonds, Series 2001, 8.400%, 12/01/13 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
61,350 Total Illinois 64,669,759
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.3% (2.1% OF TOTAL INVESTMENTS)
5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101.00 Aa3 (4) 6,057,175
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 1,940,498
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 2,567,006
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 1,460,100
2,500 5.375%, 2/15/34 2/15 at 100.00 BBB 2,203,925
2,765 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 AAA 3,114,358
Bonds, Series 2001, 5.750%, 7/15/14 (Pre-refunded 1/15/13) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,720 Total Indiana 17,343,062
------------------------------------------------------------------------------------------------------------------------------------
21
NQM
Nuveen Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.3% (0.8% OF TOTAL INVESTMENTS)
$ 8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB $ 6,840,480
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,000 Kansas Development Finance Authority, Health Facilities Revenue 11/15 at 100.00 A2 1,006,530
Bonds, Hays Medical Center Inc., Series 2005L, 5.000%, 11/15/22
565 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 596,663
Securities Program Single Family Revenue Bonds, Series 1997A-1,
6.950%, 6/01/29 (Alternative Minimum Tax)
3,400 Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 4,260,200
Hotel Corporation, Series 1988, 9.500%, 10/01/16
(Pre-refunded 8/15/16) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,965 Total Kansas 5,863,393
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,000 Jefferson County, Kentucky, Health Facilities Revenue Refunding 7/08 at 101.00 AAA 2,022,520
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 478,196
Kentucky, Industrial Building Revenue Bonds, Sisters of Mercy
of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,510 Total Kentucky 2,500,716
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.9% (2.4% OF TOTAL INVESTMENTS)
785 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/08 at 101.50 Aaa 795,260
GNMA/FNMA Mortgage-Backed Securities Program Family
Mortgage Revenue Refunding Bonds, Series 1997D,
5.900%, 10/01/30 (Alternative Minimum Tax)
Jefferson Parish Home Mortgage Authority, Louisiana, Single Family
Mortgage Revenue Bonds, Series 2000G-2:
885 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 915,948
595 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 601,896
380 Jefferson Parish Home Mortgage Authority, Louisiana, Single Family 12/09 at 103.00 Aaa 396,431
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+ 3,008,760
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 2,402,000
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
11,545 Orleans Parish School Board, Louisiana, General Obligation No Opt. Call AAA 12,129,523
Refunding Bonds, Series 1987, 9.000%, 2/01/09 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,690 Total Louisiana 20,249,818
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 2,518,350
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.1% (1.9% OF TOTAL INVESTMENTS)
4,925 Massachusetts Development Financing Authority, Assisted Living 12/09 at 102.00 N/R 4,993,655
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 1,091,033
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 1,942,988
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 2,032,923
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 5,317,872
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 -
FSA Insured (UB)
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 1,040 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa $ 819,374
Bonds, Series 2007, Residual Trust 7039, 4.069%, 8/01/46 -
FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
16,075 Total Massachusetts 16,197,845
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.2% (2.6% OF TOTAL INVESTMENTS)
4,250 Detroit City School District, Wayne County, Michigan, Unlimited Tax 5/12 at 100.00 AAA 4,659,360
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+ 11,675,439
Series 1993, 6.500%, 7/01/15 - FGIC Insured
1,800 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,792,656
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
1,350 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AAA 1,400,126
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 AA 1,994,420
Health Care Group, Series 2006A, 5.000%, 12/01/31
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 292,883
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
------------------------------------------------------------------------------------------------------------------------------------
19,955 Total Michigan 21,814,884
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 7.4% (4.6% OF TOTAL INVESTMENTS)
8,250 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete Inc., 7/14 at 100.00 A- 8,106,038
Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 6,990,300
Authority, Minnesota, GNMA Mortgage-Backed Securities Program
Single Family Residential Mortgage Revenue Bonds, Series
1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM)
620 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 644,434
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
19,380 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 21,379,626
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
(Pre-refunded 11/15/10)
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,012,960
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
34,250 Total Minnesota 38,133,358
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,275 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,287,103
Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6% (0.4% OF TOTAL INVESTMENTS)
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 195,112
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 Aaa 1,054,410
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+ 832,182
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,082,018
------------------------------------------------------------------------------------------------------------------------------------
3,205 Total Missouri 3,163,722
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Montana Board of Housing, Single Family Program Bonds, 6/14 at 100.00 AA+ 2,780,970
Series 2005-RA-1, 4.750%, 6/01/44
------------------------------------------------------------------------------------------------------------------------------------
23
NQM
Nuveen Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 6,000 Lincoln Electric System, Nebraska, Electric System Revenue 9/17 at 100.00 AA $ 5,417,880
Bonds, Series 2007A, Residuals 07-1007-9, 3.374%, 9/01/37 -
FGIC Insured (IF)
2,015 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan Program, 9/08 at 100.00 N/R 2,037,508
Series 1993B, 5.875%, 6/01/14 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,015 Total Nebraska 7,455,388
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.7% (2.9% OF TOTAL INVESTMENTS)
11,000 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 12,093,180
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 AAA 12,337,278
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,530 Total Nevada 24,430,458
------------------------------------------------------------------------------------------------------------------------------------
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- 1,394,033
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,045,720
680 New Jersey Health Care Facilities Financing Authority, 7/18 at 100.00 Baa2 663,048
New 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- 3,792,160
System Bonds, Series 2006A, 5.250%, 12/15/20
1,645 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 1,784,726
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32 (Pre-refunded 6/01/12)
4,000 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB 3,163,680
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
12,075 Total New Jersey 11,843,367
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4% (0.2% 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 884,752
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,279,318
------------------------------------------------------------------------------------------------------------------------------------
2,175 Total New Mexico 2,164,070
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.3% (10.2% OF TOTAL INVESTMENTS)
1,665 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,732,649
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
25 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA 19,970
Bonds, Driver Trust 1649, 2006, 6.799%, 2/15/47 -
MBIA Insured (IF)
3,980 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA 3,712,982
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,000 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AA 2,773,650
Bonds, Series 2006, 4.250%, 5/01/33 - MBIA Insured (UB)
2,250 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 2,278,148
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 3,225,920
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
7,800 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 7,998,432
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/28 - AMBAC Insured
5,570 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 5,791,797
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/22
1,745 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA 1,883,396
Series 2003J, 5.500%, 6/01/20
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 3,255 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA (4) $ 3,634,500
Series 2003J, 5.500%, 6/01/20 (Pre-refunded 6/01/13)
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA 5,265,850
Series 2004C, 5.250%, 8/15/20
4,200 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 4,312,182
Series 2005J, 5.000%, 3/01/25
7,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 7,197,470
Series 2005M, 5.000%, 4/01/24
5,000 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 5,302,600
Purpose Revenue Bonds, Series 2003C, 5.250%, 12/01/19
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,567,994
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
4,205 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 4,365,042
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/23 -
FGIC Insured
16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 18,307,723
Bonds, 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, 3/16 at 100.00 A 1,032,650
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
80,740 Total New York 84,402,955
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 8,077,412
Bonds, Mission St. Joseph's Health System, Series 2001,
5.250%, 10/01/26 (Pre-refunded 10/01/11)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.8% (1.8% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
3,520 5.125%, 6/01/24 6/17 at 100.00 BBB 3,315,594
530 5.875%, 6/01/30 6/17 at 100.00 BBB 493,165
525 5.750%, 6/01/34 6/17 at 100.00 BBB 474,595
1,180 5.875%, 6/01/47 6/17 at 100.00 BBB 1,044,206
8,650 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- (4) 8,994,703
Bonds, MetroHealth System, Series 1999, 6.150%, 2/15/29
(Pre-refunded 2/15/09)
250 Port of Greater Cincinnati Development Authority, Ohio, Economic 10/16 at 100.00 N/R 244,305
Development Revenue Bonds, Sisters of Mercy of the Americas,
Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
14,655 Total Ohio 14,566,568
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.3% (2.0% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital Revenue
Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB 498,075
750 5.375%, 9/01/36 9/16 at 100.00 BBB 729,218
Oklahoma Development Finance Authority, Revenue Bonds,
Saint John Health System, Series 2007:
6,100 5.000%, 2/15/37 2/17 at 100.00 AA- 6,008,012
2,480 5.000%, 2/15/42 2/17 at 100.00 AA- 2,424,423
3,940 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 3,886,613
Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36
3,300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 3,284,886
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,070 Total Oklahoma 16,831,227
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.9% (1.8% OF TOTAL INVESTMENTS)
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 416,010
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 3,115,050
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured
25
NQM
Nuveen Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 5,125 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA $ 4,992,468
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 5,356,550
Series 2001, 5.250%, 9/15/18 (Pre-refunded 3/15/11) -
FSA Insured
1,000 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1 (4) 1,125,540
Bonds, Catholic Health East, Series 2004B, 5.500%, 11/15/24
(Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
14,625 Total Pennsylvania 15,005,618
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,562,145
Bonds, Series 2000A, 5.500%, 10/01/40
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, No Opt. Call A+ 1,225,821
5.250%, 8/01/21 - CIFG Insured
14,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 1,882,160
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,725 Total Puerto Rico 4,670,126
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.5% (1.0% OF TOTAL INVESTMENTS)
2,410 Rhode Island Health and Educational Building Corporation, 5/08 at 101.00 AAA 2,438,028
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.750%, 5/15/23 - MBIA Insured
5,610 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 5,556,986
Settlement Asset-Backed Bonds, Series 2002A, 6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
8,020 Total Rhode Island 7,995,014
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.5% (1.6% OF TOTAL INVESTMENTS)
2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,039,620
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 A 4,372,403
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
1,355 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- (4) 1,506,475
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.625%, 11/15/30
(Pre-refunded 11/15/12)
5,145 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 5,218,831
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
12,905 Total South Carolina 13,137,329
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,779,610
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.6% (1.0% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, Tennessee, 7/16 at 100.00 BBB+ 2,983,488
Revenue Bonds, Mountain States Health Alliance, Series 2006A,
5.500%, 7/01/36
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 3,106,890
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.500%, 4/15/31
Sumner County Health, Educational, and Housing Facilities Board,
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007:
700 5.500%, 11/01/37 11/17 at 100.00 N/R 650,951
1,700 5.500%, 11/01/46 11/17 at 100.00 N/R 1,541,441
------------------------------------------------------------------------------------------------------------------------------------
8,600 Total Tennessee 8,282,770
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.3% (8.9% OF TOTAL INVESTMENTS)
3,117 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,321,257
Mortgage Loan Multifamily Housing Revenue Bonds, Santa Maria
Village Project, Series 2000A, 7.375%, 6/20/35 (Alternative
Minimum Tax)
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 Aaa $ 4,351,858
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 655,491
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 19,064,243
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 AAA 2,887,203
Series 1990, 7.400%, 2/15/10 - AMBAC Insured
755 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 791,187
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 2,382,855
Mortgage Loan Revenue Bonds, Robinson Garden Project,
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
11,950 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 6,120,671
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 2,306,585
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- 778,312
1,220 5.125%, 8/15/26 No Opt. Call BBB- 1,127,805
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Caa1 741,640
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100.00 A 4,072,702
Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
7,100 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 6,994,565
Corporation, Texas, Revenue Bonds, Series 2007A,
5.000%, 2/15/36
5,125 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 5,555,859
Texas, GNMA Collateralized Mortgage Loan Revenue Bonds,
Eastview Nursing Home, Ebony Lake Nursing Center, Ft.
Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.500%, 12/20/22
Texas Turnpike Authority, First Tier Revenue Bonds, Central Texas
Turnpike System, Series 2002A:
10,000 0.000%, 8/15/21 - AMBAC Insured No Opt. Call AAA 5,041,300
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call AAA 5,376,360
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,392,100
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
92,908 Total Texas 73,961,993
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Amherst Industrial Development Authority, Virginia, Revenue 9/16 at 100.00 BBB 937,690
Bonds, Sweet Briar College, Series 2006, 5.000%, 9/01/26
1,905 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 2,027,530
Residential Rental Housing Revenue Bonds, Hamptons and
Hampton Court Apartments, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,905 Total Virginia 2,965,220
------------------------------------------------------------------------------------------------------------------------------------
27
NQM
Nuveen Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.3% (5.8% OF TOTAL INVESTMENTS)
$ 11,345 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA $ 6,654,864
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 17,563,857
Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax)
16,750 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 17,904,578
5.625%, 2/01/30 (Pre-refunded 8/01/10) - MBIA Insured
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 Aa2 5,087,450
5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax)
1,000 Washington State Health Care Facilities Authority, Revenue Bonds, No Opt. Call N/R 934,050
Northwest Hospital and Medical Center of Seattle, Series 2007,
5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
51,170 Total Washington 48,144,799
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,895,100
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.9% (2.5% OF TOTAL INVESTMENTS)
6,710 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 6,725,165
Tobacco 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 278,114
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 AA 1,028,400
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 AA 3,062,460
1,150 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,155,198
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- 3,436,080
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
4,600 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA- 4,688,964
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,775 Total Wisconsin 20,374,381
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB 2,304,350
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 861,068 Total Long-Term Investments (cost $799,049,783) - 157.9% 817,740,734
=============-----------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.6% (1.6% OF TOTAL INVESTMENTS)
$ 5,000 Golden State Tobacco Securitization Corporation, California, VMIG-1 $ 5,000,000
Tobacco Settlement Enhanced Revenue Bonds, Trust 1220,
Variable Rate Demand Obligations, 6.000%, 6/01/35 -
FGIC Insured (5)
8,300 Ohio Air Quality Development Authority, Pollution Control Revenue VMIG-1 8,300,000
Bonds, Dayton Power and Light Company Project, Trust 1223,
Variable Rate Demand Obligations, 5.500%, 1/01/34 -
FGIC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 13,300 Total Short-Term Investments (cost $13,300,000) 13,300,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $812,349,783) - 160.5% 831,040,734
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.8)% (24,930,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 12,593,666
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.1)% (6) (301,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $517,704,400
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 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 (36.2)%.
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.
29
NQS
Nuveen Select Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.2% (2.1% OF TOTAL INVESTMENTS)
$ 10,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 AAA $10,613,900
Revenue Bonds, Coffee Health Group, Series 2000A,
6.000%, 7/01/29 - MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 5,105,512
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,155 Total Alabama 15,719,412
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.5% (0.3% OF TOTAL INVESTMENTS)
500 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 508,960
Bonds, 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 1,997,740
Peninsula Hospital Service Area, Series 2003, 5.000%, 8/01/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Alaska 2,506,700
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.3% (1.5% OF TOTAL INVESTMENTS)
3,750 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 3,904,313
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- 7,182,400
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
11,750 Total Arizona 11,086,713
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax No Opt. Call A3 5,218,020
Refunding Bonds, Series 1993, 7.375%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.9% (3.8% 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 BBB+ 959,795
4,505 0.000%, 8/01/33 - FGIC Insured No Opt. Call BBB+ 1,046,962
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 571,142
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- 1,610,466
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- 291,750
California, General Obligation Bonds, Series 2005A,
0.000%, 8/01/30 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,200 0.000%, 2/01/30 - FGIC Insured 2/15 at 45.69 A 928,480
6,800 0.000%, 2/01/35 - FGIC Insured 2/15 at 34.85 A 1,464,244
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 3,353,562
11,430 0.000%, 8/01/27 - FGIC Insured 8/13 at 49.98 AA 3,909,974
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A $ 5,916,540
Enhanced Tobacco Settlement Revenue Bonds, Residual
Series 2040, 9.530%, 6/01/45 - FGIC Insured (IF)
1,045 Lake Tahoe Unified School District, El Dorado County, California, No Opt. Call Aaa 358,027
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+ 1,350,840
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 AAA 2,083,350
Revenue Bonds, Riverside County Hospital Project, Series 1997,
0.000%, 6/01/25 - MBIA Insured
14,605 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 2,934,437
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
5,000 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 1,840,800
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 AAA 477,760
Bonds, Series 2007B, 0.000%, 8/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
81,470 Total California 29,098,129
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 12.1% (7.7% OF TOTAL INVESTMENTS)
11,000 Colorado Department of Transportation, Revenue Anticipation 6/10 at 100.50 AAA 11,867,570
Bonds, Series 2000, 6.000%, 6/15/15 (Pre-refunded 6/15/10) -
AMBAC Insured
9,250 Colorado Health Facilities Authority, Remarketed Revenue Bonds, 7/08 at 101.00 AAA 9,409,193
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 1,168,205
Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured
16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 17,164,439
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 -
AMBAC Insured (Alternative Minimum Tax)
1,500 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 A- 1,307,715
Revenue Bonds, Convention Center Hotel, Series 2006,
4.625%, 12/01/30 - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
1,420 0.000%, 9/01/23 - MBIA Insured No Opt. Call AAA 611,466
8,515 0.000%, 9/01/25 - MBIA Insured No Opt. Call AAA 3,197,723
7,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 2,173,500
Series 2000B, 0.000%, 9/01/29 - MBIA Insured
13,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 45.40 AAA 2,740,140
Series 2004B, 0.000%, 9/01/34 - MBIA Insured
5,000 Ebert Metropolitan District, Colorado, Limited Tax General Obligation 12/17 at 100.00 AA 4,877,950
Bonds, Series 2007, 5.350%, 12/01/37 - RAAI Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 40.52 AAA 4,491,784
Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/26
(Pre-refunded 6/15/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
87,685 Total Colorado 59,009,685
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.2% (2.1% OF TOTAL INVESTMENTS)
2,630 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 2,654,143
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
District of Columbia, General Obligation Bonds, Series 1998B:
5,000 6.000%, 6/01/19 - MBIA Insured No Opt. Call AAA 5,804,950
7,265 5.250%, 6/01/26 - FSA Insured 6/08 at 101.00 AAA 7,346,150
------------------------------------------------------------------------------------------------------------------------------------
14,895 Total District of Columbia 15,805,243
------------------------------------------------------------------------------------------------------------------------------------
31
NQS
Nuveen Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.2% (2.7% OF TOTAL INVESTMENTS)
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
$ 3,075 5.875%, 10/01/18 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA $ 3,221,462
4,860 5.875%, 10/01/19 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 5,091,482
9,250 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AAA 9,330,013
Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/40 -
MBIA Insured
3,335 South Miami Health Facilities Authority, Florida, Revenue Bonds, 8/17 at 100.00 AA- 3,093,980
Baptist Health Systems of South Florida, Series 2007,
ROLS 11151, 9.726%, 8/15/42 (IF)
------------------------------------------------------------------------------------------------------------------------------------
20,520 Total Florida 20,736,937
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 A+ 3,767,550
5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.4% (9.2% 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- 1,549,633
2,925 0.000%, 12/01/31 - FGIC Insured No Opt. Call AA- 822,890
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21 7/10 at 101.00 AAA 6,425,166
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 AAA 14,850,149
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 AAA 3,709,378
5,460 5.250%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 5,315,310
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,957,500
Hospital, Series 2008A, 5.250%, 8/15/47 (WI/DD,
Settling 5/15/08) - AGC Insured
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health Services 2/18 at 100.00 AAA 1,025,710
Corporation, Series 2008A, 5.500%, 2/01/40 - AMBAC Insured
3,975 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 A- 3,728,073
Systems, Series 2007A, 5.500%, 8/01/37
10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical 5/12 at 100.00 Baa3 10,147,000
Center, Series 2002, 5.750%, 5/15/22
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest Care 2/11 at 102.00 Aaa 2,070,260
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 4,679,398
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 A1 4,217,760
Illinois, General Obligation Bonds, Series 2006B,
0.000%, 1/15/23 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
6,700 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 3,087,695
2,920 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 2,979,305
1,100 0.000%, 12/15/35 - MBIA Insured No Opt. Call AAA 254,463
2,455 0.000%, 6/15/41 - MBIA Insured No Opt. Call AAA 417,546
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 7,500 Valley View Public Schools, Community Unit School District 365U No Opt. Call AAA $ 3,127,650
of Will County, Illinois, General Obligation Bonds, Series 2005,
0.000%, 11/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
94,470 Total Illinois 70,364,886
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.0% (1.9% OF TOTAL INVESTMENTS)
2,000 Hospital Authority of Delaware County, Indiana, Hospital Revenue 8/16 at 100.00 Baa2 1,696,440
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- 1,757,180
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
765 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa 768,534
Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26
(Alternative Minimum Tax)
2,225 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 2,223,042
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
7,660 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/11 at 100.00 AAA 8,266,825
Memorial Health System, Series 2000, 5.625%, 8/15/33
(Pre-refunded 2/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,650 Total Indiana 14,712,021
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 3,949,256
Series 2004A, 5.000%, 3/01/23
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 AA (4) 7,873,650
Revenue Bonds, Johns Hopkins University, Series 1999,
6.000%, 7/01/39 (Pre-refunded 7/01/09)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.2% (0.1% OF TOTAL INVESTMENTS)
880 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 N/R 908,512
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.2% (5.3% OF TOTAL INVESTMENTS)
10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 10,648,400
Series 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 6,869,910
Ascension Health Credit Group, Series 1999A, 5.750%, 11/15/16
(Pre-refunded 11/15/09) - MBIA Insured
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/08 at 100.00 BB- 3,276,212
Bonds, 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 A- 6,028,380
Control Revenue Refunding Bonds, Fixed Rate Conversion,
Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 -
XLCA Insured (Alternative Minimum Tax)
7,500 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 A- 7,439,250
Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 - XLCA Insured (Alternative Minimum Tax)
5,900 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 5,962,599
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,150 Total Michigan 40,224,751
------------------------------------------------------------------------------------------------------------------------------------
33
NQS
Nuveen Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.1% (1.3% OF TOTAL INVESTMENTS)
$ 7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA $ 7,472,360
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/32 (Pre-refunded 1/01/11) - FGIC Insured
2,465 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 2,573,509
Revenue Bonds, Series 2000C, 6.100%, 7/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,465 Total Minnesota 10,045,869
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 2,488,167
Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Kansas City Municipal Assistance Corporation, Missouri, Leasehold No Opt. Call AAA 1,763,600
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 1,527,000
Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross
County Extension Project, Series 2002B, 5.000%, 10/01/32 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Missouri 3,290,600
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.4% (4.8% OF TOTAL INVESTMENTS)
4,885 Clark County, Nevada, Limited Tax General Obligation Bank Bonds, 7/10 at 100.00 AA+ (4) 5,202,574
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 AAA 8,137,500
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 AAA 1,749,599
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/32 - AMBAC Insured
10,000 Reno, Nevada, Health Facilities, Revenue Bonds, Catholic 7/17 at 100.00 A 9,737,800
Healthcare West, Series 2007A, 5.250%, 7/01/31 (UB)
10,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 11,561,625
Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
35,085 Total Nevada 36,389,098
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.2% (4.6% OF TOTAL INVESTMENTS)
2,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 2,669,880
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
14,865 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 AAA 15,432,396
Program Revenue Bonds, Series 2000CC, 5.850%, 10/01/25 -
MBIA Insured (Alternative Minimum Tax)
1,905 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/08 at 101.50 AAA 1,910,163
Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 -
AMBAC Insured (Alternative Minimum Tax)
20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 5,239,800
System Bonds, Series 2006C, 0.000%, 12/15/33 - FSA Insured
7,690 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 8,343,189
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
2,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 1,600,760
Settlement Asset-Backed Bonds, Series 2007-1A,
5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
48,860 Total New Jersey 35,196,188
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 4.9% (3.1% OF TOTAL INVESTMENTS)
$ 8,500 Farmington, New Mexico, Pollution Control Revenue Refunding 10/08 at 100.00 Baa3 $ 8,487,505
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
New Mexico Hospital Equipment Loan Council, Hospital Revenue
Bonds, Presbyterian Healthcare Services, Series 2001A:
8,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 8,742,960
6,200 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 6,775,794
------------------------------------------------------------------------------------------------------------------------------------
22,700 Total New Mexico 24,006,259
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.2% (7.2% OF TOTAL INVESTMENTS)
5,650 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 5,924,195
Revenue Bonds, Mental Health Services Facilities, Series 1999D,
5.250%, 8/15/24 (Pre-refunded 8/15/09) - FSA Insured
10,000 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AA- (4) 10,825,000
Lease Revenue Bonds, Court Facilities, Series 1999,
6.000%, 5/15/39 (Pre-refunded 5/15/10)
7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,116,270
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
5,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 5,043,800
Water and Sewerage System Revenue Bonds, Fiscal
Series 1999B, 5.000%, 6/15/29 - FSA Insured
2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 AAA 2,403,514
Transportation Authority, Triborough Bridge and Tunnel Authority,
Certificates of Participation, Series 2000A, 5.750%, 1/01/20
(Pre-refunded 1/01/10) - AMBAC Insured
9,750 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AAA 10,554,375
Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29
(Pre-refunded 5/15/10)
5,400 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/09 at 101.00 Aa1 5,476,086
Bonds, Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax)
New York State Urban Development Corporation, Subordinate Lien
Corporate Purpose Refunding Bonds, Series 1996:
4,490 5.500%, 7/01/26 (Pre-refunded 7/01/08) 7/08 at 100.00 AAA 4,515,997
3,055 5.500%, 7/01/26 (Pre-refunded 7/01/08) 7/08 at 100.00 AAA 3,072,688
------------------------------------------------------------------------------------------------------------------------------------
52,600 Total New York 54,931,925
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.8% (2.4% OF TOTAL INVESTMENTS)
18,555 North Carolina Eastern Municipal Power Agency, Power System 7/08 at 100.00 Baa1 18,566,503
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.9% (3.8% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
270 5.125%, 6/01/24 6/17 at 100.00 BBB 254,321
2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 2,512,350
2,635 5.750%, 6/01/34 6/17 at 100.00 BBB 2,382,014
5,895 5.875%, 6/01/47 6/17 at 100.00 BBB 5,216,603
5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,400,288
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) 5,448,800
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,448,800
35
NQS
Nuveen Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 230 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 239,736
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
4,550 Ohio State Higher Educational Facilities Commission, Revenue 1/17 at 100.00 AA 4,137,179
Bonds, University Hospitals Project, Residual Series 2007- 1033,
5.151%, 1/15/46 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
31,430 Total Ohio 29,040,091
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.5% (1.6% OF TOTAL INVESTMENTS)
2,235 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA- 2,254,959
St. John Health System, Series 2004, 5.000%, 2/15/24
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 9,951,200
Bonds, American Airlines Inc., Series 2001B, 5.650%, 12/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,235 Total Oklahoma 12,206,159
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 99,520
Revenue Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
3,250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 2,880,735
Revenue Bonds, Series 96A, 4.650%, 10/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,345 Total Pennsylvania 2,980,255
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
800 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 667,544
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 Aaa 1,988,272
Facilities Revenue Refunding Bonds, Series 2002D,
0.000%, 7/01/31 (Pre-refunded 7/01/17) - AMBAC Insured
20,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AAA 1,486,865
Bonds, Series 2007A, 0.000%, 8/01/54 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,500 Total Puerto Rico 4,142,681
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.3% (0.2% OF TOTAL INVESTMENTS)
665 Rhode Island Housing & Mortgage Finance Corporation, 4/17 at 100.00 AA+ 593,885
Homeownership Opportunity Bond Program, 2007 Series 57-B,
Residual 1038, 10.483%, 10/01/32 (Alternative Minimum Tax) (IF)
1,000 Rhode Island Housing & Mortgage Finance Corporation, 4/17 at 100.00 AA+ 956,660
Homeownership Opportunity Bond Program, Residual Trust 1038,
10.342%, 10/01/27 (Alternative Minimum Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
1,665 Total Rhode Island 1,550,545
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.6% (6.2% 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) 6,284,190
4,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA- (4) 5,141,610
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, 10/11 at 100.00 A 3,780,563
Self Memorial Hospital, Series 2001, 5.500%, 10/01/31
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 2,798,975
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13)
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 2,825 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA $ 2,942,916
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/22 - MBIA Insured
21,565 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,366,635
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 -
AMBAC Insured
1,250 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aaa 1,263,038
Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20 -
FSA Insured (Alternative Minimum Tax)
Tobacco Settlement Revenue Management Authority,
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B:
11,530 6.000%, 5/15/22 5/11 at 101.00 BBB 11,615,783
4,000 6.375%, 5/15/28 5/11 at 101.00 BBB 4,024,240
3,000 6.375%, 5/15/30 No Opt. Call BBB 2,952,840
------------------------------------------------------------------------------------------------------------------------------------
60,420 Total South Carolina 47,170,790
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.1% (1.4% OF TOTAL INVESTMENTS)
5,195 Sioux Falls, South Dakota, Industrial Revenue Refunding Bonds, 10/14 at 100.00 AAA 6,258,780
Great Plains Hotel Corporation, Series 1989, 8.500%, 11/01/16
(Pre-refunded 10/15/14) (Alternative Minimum Tax)
2,280 South Dakota Education Loans Inc., Revenue Bonds, Subordinate 6/08 at 102.00 A2 2,318,053
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- 1,779,610
Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
9,225 Total South Dakota 10,356,443
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 6.5% (4.1% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 5,178,150
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,060 Knox County Health, Educational and Housing Facilities Board, 1/13 at 80.49 AAA 13,134,887
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 13,291,750
Educational Facilities Board, Tennessee, Revenue Bonds, Ascension
Health Credit Group, Series 1999A, 5.875%, 11/15/28
(Pre-refunded 11/15/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,560 Total Tennessee 31,604,787
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.6% (9.4% OF TOTAL INVESTMENTS)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa1 4,997,529
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 7,404,328
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
4,080 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 BBB- 3,690,564
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 5,916,790
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 666,420
Obligation Bonds, Series 2006, 0.000%, 8/15/28
37
NQS
Nuveen Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB $ 1,570,894
Revenue Bonds, Valero Energy Corporation, Series 2001,
6.650%, 4/01/32 (Alternative Minimum Tax)
7,570 Harris County-Houston Sports Authority, Texas, Junior Lien No Opt. Call AAA 1,873,651
Revenue Bonds, Series 2001H, 0.000%, 11/15/31 -
MBIA Insured
5,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 5,110,650
Obligation 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 4,627,317
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 8,430,570
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, 5/08 at 100.00 AAA 345,981
GNMA 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 2,144,836
Regional Medical Center, Series 2004, 6.000%, 12/01/19
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 4,804,669
System Revenue Refunding Bonds, Series 2002A,
6.000%, 10/01/21
5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100.00 AAA 5,586,240
Unlimited Tax Schoolhouse Bonds, Series 2001,
5.000%, 8/15/26
2,920 Tarrant County Cultural and Education Facilities Financing 11/17 at 100.00 AA- 2,650,104
Corporation, Texas, Revenue Bonds, County Health Resources,
Series 2007B, Residuals 1830, 9.802%, 11/15/47 (IF)
4,520 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,616,773
State Participation Program, Series 1999C, 5.500%, 8/01/35
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/36 8/15 at 33.75 AAA 1,882,308
9,110 0.000%, 8/15/41 8/15 at 25.73 AAA 1,394,832
7,110 0.000%, 8/15/45 8/15 at 20.76 AAA 861,945
2,175 Winter Garden Housing Finance Corporation, Texas, 10/08 at 100.00 AAA 2,209,778
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1994,
6.950%, 10/01/27 (Alternative Minimum Tax)
2,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 57.10 AAA 780,640
General Obligation Bonds, Series 2005, 0.000%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
101,920 Total Texas 71,566,819
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.1% (2.6% OF TOTAL INVESTMENTS)
3,565 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 3,700,720
Payson Power Project, Series 2003A, 5.000%, 4/01/24 -
FSA Insured
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health 7/08 at 101.00 AAA 16,173,745
Services Inc., Series 1997, 5.250%, 8/15/26 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,615 Total Utah 19,874,465
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.0% (1.3% OF TOTAL INVESTMENTS)
Vermont Educational and Health Buildings Financing Agency,
Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A:
3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 AAA 4,009,714
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 AAA 4,610,806
1,340 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 1,356,938
Series 2000-13A, 5.950%, 11/01/25 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,325 Total Vermont 9,977,458
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.8% (2.4% OF TOTAL INVESTMENTS)
$ 8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA $ 8,844,976
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 AAA 7,387,779
Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured
(Alternative Minimum Tax)
2,500 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 2,335,125
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
18,535 Total Washington 18,567,880
------------------------------------------------------------------------------------------------------------------------------------
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 4,895,100
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (1.9% OF TOTAL INVESTMENTS)
7,870 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 7,887,786
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
5,000 Madison, Wisconsin, Industrial Development Revenue 4/12 at 100.00 AA- 5,116,250
Refunding Bonds, Madison Gas and Electric Company Projects,
Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,778,028
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
14,970 Total Wisconsin 14,782,064
------------------------------------------------------------------------------------------------------------------------------------
$ 947,650 Total Investments (cost $748,498,836) - 156.2% 764,611,611
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.5)% (7,500,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 11,533,974
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.0)% (5) (279,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $489,645,585
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 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 (36.5)%.
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.
39
NQU
Nuveen Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.3% (2.0% OF TOTAL INVESTMENTS)
$ 3,500 Bessemer Governmental Utility Services Corporation, Alabama, 6/08 at 102.00 AAA $ 3,573,815
Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 -
MBIA Insured
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 8,109,927
6,340 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,867,932
6,970 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,562,032
------------------------------------------------------------------------------------------------------------------------------------
24,285 Total Alabama 26,113,706
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.9% (1.1% OF TOTAL INVESTMENTS)
6,110 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 6,205,622
Bonds, Series 2005A, 5.000%, 12/01/27 - FGIC Insured
11,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 8,594,850
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
17,110 Total Alaska 14,800,472
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.9% (1.1% OF TOTAL INVESTMENTS)
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,427,468
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/28 - MBIA Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, No Opt. Call A+ 1,083,520
Series 2002, 5.250%, 7/01/17 - FGIC Insured
8,010 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 Aa1 8,238,605
Arizona, Electric System Revenue Refunding Bonds,
Series 2002A, 5.125%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
14,360 Total Arizona 14,749,593
------------------------------------------------------------------------------------------------------------------------------------
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 Aaa 537,775
19,800 0.000%, 7/01/46 - AMBAC Insured No Opt. Call Aaa 2,333,034
4,000 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,080,040
Sciences Campus, Series 2004B, 5.000%, 11/01/34 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,300 Total Arkansas 6,950,849
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.9% (8.5% OF TOTAL INVESTMENTS)
12,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 2,754,625
Lease Revenue Bonds, Public Improvement Project,
Series 1997C, 0.000%, 9/01/35 - FSA Insured
1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 1,117,820
Revenue 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 5,657,820
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
3,450 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,456,590
Bonds, J. David Gladstone Institutes, Series 2001,
5.250%, 10/01/34
25,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 AA 24,736,750
4.750%, 3/01/35 - MBIA Insured (UB)
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,360 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB+ $ 1,259,251
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
3,600 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 3,740,436
Bonds, St. Joseph Health System, Series 2007A,
5.750%, 7/01/47 - FGIC Insured
14,600 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A+ 14,989,382
5.250%, 2/01/28
16,000 California, General Obligation Bonds, 5.000%, 6/01/37 (UB) 6/17 at 100.00 A+ 15,998,080
10,000 California, Various Purpose General Obligation Bonds, 4/09 at 101.00 AAA 10,010,500
Series 1999, 4.750%, 4/01/29 - MBIA Insured
8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,243,725
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
10,000 5.000%, 6/01/33 6/17 at 100.00 BBB 8,538,700
1,500 5.125%, 6/01/47 6/17 at 100.00 BBB 1,213,965
30,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 6,027,600
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/35 - MBIA Insured
3,000 San Mateo County Community College District, California, No Opt. Call AAA 935,850
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
MBIA Insured
1,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,296,225
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
148,010 Total California 109,977,319
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.3% (3.3% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,015,830
Valley Health System, Series 2005C, 5.250%, 3/01/40 -
FSA Insured
10,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 10,099,700
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 -
AMBAC Insured (Alternative Minimum Tax)
5,385 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 1,901,013
Bonds, Series 1997B, 0.000%, 9/01/26 - MBIA Insured
43,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 9,662,960
Bonds, 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 8,877,744
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 AAA 1,475,460
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) 9,311,596
Obligation Bonds, Series 2000, 5.125%, 12/15/19
(Pre-refunded 12/15/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
89,525 Total Colorado 42,344,303
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,395 Bridgeport, Connecticut, General Obligation Bonds, Series 2001C, 8/11 at 100.00 A- (4) 4,763,433
5.375%, 8/15/17 (Pre-refunded 8/15/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 5,514,250
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.8% OF TOTAL INVESTMENTS)
10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A2 10,472,600
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
41
NQU
Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.9% (9.7% 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 $ 1,093,450
3,690 5.000%, 12/01/19 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,972,248
3,000 5.000%, 12/01/20 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,229,470
2,000 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,152,980
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- 7,233,394
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AA- 3,210,284
32,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 8,941,452
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) 737,800
4,320 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 4,687,200
190 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AAA 197,553
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 75,660
6,190 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 AAA 6,690,462
5,045 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AA- 5,237,265
Series 2000D, 5.750%, 1/01/30 - FGIC Insured
13,190 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998A, 1/09 at 101.00 AAA 12,536,567
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 AAA 8,520,080
7,750 6.000%, 1/01/30 (Pre-refunded 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 8,285,370
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 3,433,680
1,800 6.000%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,018,088
1,050 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 1,076,828
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/20 - AMBAC Insured
15,000 Illinois Finance Authority, Illinois, Northwestern University, 12/15 at 100.00 AAA 15,207,300
Revenue Bonds, Series 2006, 5.000%, 12/01/42 (UB)
2,000 Illinois Finance Authority, Revenue Bonds, Children's Memorial 8/18 at 100.00 AAA 1,957,500
Hospital, Series 2008A, 5.250%, 8/15/47 (WI/DD,
Settling 5/15/08) - AGC Insured
1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 AAA 1,025,710
Services Corporation, Series 2008A, 5.500%, 2/01/40 -
AMBAC Insured
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ (4) 5,640,700
Memorial 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 AAA 10,459,600
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 AAA 5,233,000
Series 2000, 5.450%, 12/01/21 - MBIA Insured
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,316,104
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
986 Montgomery, Illinois, Lakewood Creek Project Special 3/16 at 100.00 AA 896,629
Assessment Bonds, Series 2007, 4.700%, 3/01/30 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
148,701 Total Illinois 126,066,374
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8% (1.1% OF TOTAL INVESTMENTS)
$ 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 AAA $ 2,037,420
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 AAA 3,393,868
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 AAA 2,400,000
Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 -
AMBAC Insured
6,540 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 8/08 at 101.00 AAA 6,245,177
Memorial Health System, Series 1998A, 4.625%, 8/15/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,180 Total Indiana 14,076,465
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.3% (1.4% OF TOTAL INVESTMENTS)
8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 8,799,968
Iowa Health System, Series 1998A, 5.125%, 1/01/28
(Pre-refunded 7/01/08) - MBIA Insured
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
4,000 5.375%, 6/01/38 6/15 at 100.00 BBB 3,403,840
7,000 5.625%, 6/01/46 6/15 at 100.00 BBB 6,078,520
------------------------------------------------------------------------------------------------------------------------------------
19,585 Total Iowa 18,282,328
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aaa 4,822,686
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 6/14 at 100.00 AAA 1,776,443
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,335 Total Kansas 6,599,129
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,500 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,716,825
Refunding Bonds, Project 74, Series 2002, 5.375%, 2/01/18
(Pre-refunded 2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.5% (2.2% OF TOTAL INVESTMENTS)
10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, No Opt. Call AAA 11,239,700
Franciscan Missionaries of Our Lady Health System,
Series 1998A, 5.750%, 7/01/25 - FSA Insured
9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 8,647,200
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 5,911,125
University, Series 2002A, 5.000%, 7/01/32 (Pre-refunded
7/01/12) - AMBAC Insured
2,600 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,460,224
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
27,100 Total Louisiana 28,258,249
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 8.1% (5.0% OF TOTAL INVESTMENTS)
7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 8,488,722
Revenue Bonds, Massachusetts Institute of Technology,
Series 2002K, 5.500%, 7/01/32
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 6,008,640
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
12,500 Massachusetts Turnpike Authority, Metropolitan Highway 7/08 at 101.00 AAA 12,508,125
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 13,511,880
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
1,375 Massachusetts Water Pollution Abatement Trust, Revenue 8/09 at 101.00 AAA 1,449,044
Bonds, MWRA Loan Program, Subordinate Series 1999A,
5.750%, 8/01/29 (Pre-refunded 8/01/09)
43
NQU
Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 5,570 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/09 at 101.00 AAA $ 5,760,661
MWRA Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AA (4) 10,795,100
Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) -
FGIC Insured
5,730 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 AAA 6,110,128
Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20
(Pre-refunded 11/01/10) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
62,080 Total Massachusetts 64,632,300
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.1% (1.3% OF TOTAL INVESTMENTS)
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 5,017,600
Revenue 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 3,961,270
Detroit City School District, Series 2005, 5.000%, 6/01/20 -
FSA Insured
7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 7,897,601
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24 (Pre-refunded 11/15/09)
------------------------------------------------------------------------------------------------------------------------------------
16,215 Total Michigan 16,876,471
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.3% (0.8% OF TOTAL INVESTMENTS)
Chaska, Minnesota, Electric Revenue Bonds, Generating Facility
Project, Series 2000A:
1,930 6.000%, 10/01/20 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,081,216
2,685 6.000%, 10/01/25 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,895,370
3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,109,909
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM)
------------------------------------------------------------------------------------------------------------------------------------
8,270 Total Minnesota 10,086,495
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,875 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 1,884,975
Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
2,500 Mississippi Hospital Equipment and Facilities Authority, Revenue 1/11 at 101.00 Aaa 2,697,250
Bonds, Forrest County General Hospital, Series 2000,
5.500%, 1/01/27 (Pre-refunded 1/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,375 Total Mississippi 4,582,225
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6% (0.9% OF TOTAL INVESTMENTS)
15,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 5,290,800
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
2,400 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,508,672
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 AAA 4,519,961
Bonds, Jordan Valley Park Projects, Series 2000A,
0.000%, 6/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,750 Total Missouri 12,319,433
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.2% (3.8% OF TOTAL INVESTMENTS)
34,470 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 37,230,700
Series 2002C, 5.000%, 6/15/20 (Pre-refunded 6/15/12) -
MBIA Insured
5,000 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 1,852,350
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/23 - AMBAC Insured
10,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 A 9,737,800
Healthcare West, Series 2007A, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
49,470 Total Nevada 48,820,850
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.1% (3.1% OF TOTAL INVESTMENTS)
$ 1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA $ 1,090,480
Series 2002A, 5.000%, 12/15/21 (Pre-refunded 12/15/12) -
FSA Insured
2,150 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 2,391,768
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 AAA 2,252,003
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 3,572,160
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 5,239,800
20,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AAA 4,656,600
20,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AAA 4,400,200
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
2,340 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,538,760
1,000 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,115,510
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 10,968,271
1,850 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,110,980
------------------------------------------------------------------------------------------------------------------------------------
82,985 Total New Jersey 40,336,532
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,475,255
Bonds, Presbyterian Healthcare Services, Series 2001A,
5.500%, 8/01/21 (Pre-refunded 8/01/11)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.5% (10.6% 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 Aaa 106,454
65 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 69,159
1,005 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 1,069,863
8,830 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 9,399,888
275 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 276,947
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 AAA 2,322,090
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 21,693,399
Senior Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.125%, 7/15/30 (Pre-refunded 7/15/10)
1,320 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 1,231,441
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured
1,130 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 1,227,960
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) 16,034,550
Fund Bonds, Series 2000A, 6.000%, 4/01/30 (Pre-refunded
4/01/10) - FGIC Insured
90 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 Aaa 84,883
Revenue Bonds, Series 2006B, Drivers 1662, 8.131%, 11/15/32 -
FSA Insured (IF)
13,335 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 Aaa 13,082,302
Revenue Bonds, Series 2006B, 4.500%, 11/15/32 -
FSA Insured (UB)
12,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 13,245,375
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33 (Pre-refunded 7/15/09)
45
NQU
Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
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 $ 8,659,721
2,065 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 2,225,554
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 AA 986,794
6,555 5.750%, 8/01/18 8/12 at 100.00 AAA 7,092,313
3,990 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA (4) 4,444,222
Series 2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12)
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 5,455,500
Series 2003A, 5.750%, 8/01/16
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, New York
City Municipal Water Finance Authority Projects, Second
Resolution Bonds, Series 2001C:
6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,274,227
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,814,988
13,620 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 14,333,279
Revenue Bonds, One Hundred Twenty-Eighth Series 2002,
5.000%, 11/01/20 - FSA Insured
2,250 United Nations Development Corporation, New York, Senior Lien 7/08 at 100.00 A3 2,253,330
Revenue Bonds, Series 2004A, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
130,975 Total New York 138,384,239
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.1% (1.9% OF TOTAL INVESTMENTS)
4,000 North Carolina Medical Care Commission, Health System 10/17 at 100.00 AA 3,699,680
Revenue Bonds, Mission St. Joseph's Health System,
Series 2007, 4.500%, 10/01/31
665 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101.00 AAA 652,132
Bonds, Pitt County Memorial Hospital, Series 1998A,
4.750%, 12/01/28 - MBIA Insured
12,405 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101.00 AAA 12,721,079
Bonds, Pitt 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 1/13 at 100.00 AAA 7,857,825
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,570 Total North Carolina 24,930,716
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.4% (2.7% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
180 5.125%, 6/01/24 6/17 at 100.00 BBB 169,547
1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,674,900
1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,572,943
5,430 5.875%, 6/01/47 6/17 at 100.00 BBB 4,805,116
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 2,302,932
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,765,646
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,092,360
10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,389,500
Obligation Bonds, Series 2006, 4.250%, 12/01/32 -
FSA Insured (UB)
10,350 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 9,860,549
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
36,265 Total Ohio 34,633,493
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 7.1% (4.3% OF TOTAL INVESTMENTS)
2,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 1,774,880
Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
17,510 Pottawatomie County Home Finance Authority, Oklahoma, No Opt. Call AAA 19,757,233
Single Family Mortgage Revenue Bonds, Series 1991A,
8.625%, 7/01/10 (ETM)
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA (continued)
$ 11,750 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B $11,696,185
Bonds, 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 12/08 at 100.00 B 22,892,735
Bonds, American Airlines Inc., Series 2001B, 5.650%, 12/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
54,265 Total Oklahoma 56,121,033
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,000 Deschutes County School District 1, Bend-La Pine, Oregon, 6/11 at 100.00 Aaa 3,252,720
General Obligation Bonds, Series 2001A, 5.500%, 6/15/18
(Pre-refunded 6/15/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.7% (2.3% OF TOTAL INVESTMENTS)
2,875 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,918,413
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
1,960 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 8/08 at 100.00 AAA 1,975,562
Revenue Refunding Bonds, Delaware Valley Medical Center,
Series 1992, 7.000%, 8/01/22
1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,329,570
Revenue Bonds, Series 96A, 4.650%, 10/01/31
(Alternative Minimum Tax)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,727,790
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 7,881,900
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured
Philadelphia School District, Pennsylvania, General Obligation
Bonds, Series 2002B:
6,000 5.625%, 8/01/19 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,643,080
5,500 5.625%, 8/01/20 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,089,490
------------------------------------------------------------------------------------------------------------------------------------
28,235 Total Pennsylvania 29,565,805
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 5.0% (3.0% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 2,617,975
Senior Lien Series 2008A, 6.000%, 7/01/44
5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 661,500
Revenue Bonds, Series 2005A, 0.000%, 7/01/42 -
FGIC Insured
5,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 5,068,400
5.000%, 8/01/27 - FSA Insured
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 1,499,220
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 AAA 5,515,000
55,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call AAA 3,989,150
15,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 A+ 15,031,350
Bonds, Series 2007A, 5.250%, 8/01/57 (UB)
1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,532,010
Series 2001A, 5.500%, 7/01/29
3,840 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 3,709,286
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
139,340 Total Puerto Rico 39,623,891
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 1,448,715
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.5% (5.8% OF TOTAL INVESTMENTS)
24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 27,722,658
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
(Pre-refunded 12/01/12)
47
NQU
Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
Horry County School District, South Carolina, General Obligation
Bonds, Series 2001A:
$ 5,840 5.000%, 3/01/20 3/12 at 100.00 Aa1 $ 6,095,091
5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,352,025
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 AAA 5,512,690
3,000 5.250%, 2/15/24 - MBIA Insured 8/14 at 100.00 AAA 3,103,620
13,615 South Carolina Transportation Infrastructure Bank, Junior Lien 10/11 at 100.00 Aaa 14,674,655
Revenue Bonds, Series 2001B, 5.125%, 10/01/21
(Pre-refunded 10/01/11) - AMBAC Insured
12,670 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 12,746,780
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
70,230 Total South Carolina 75,207,519
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 3,155,070
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.9% (10.9% OF TOTAL INVESTMENTS)
535 Alamo Community College District, Bexar County, Texas, Combined 11/11 at 100.00 AAA 574,515
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 505,739
Fee Revenue Refunding Bonds, Series 2001, 5.375%, 11/01/16
(Pre-refunded 11/01/11) - FSA Insured
6,500 Bell County Health Facilities Development Corporation, Texas, 11/08 at 101.00 AAA 6,672,315
Retirement Facility Revenue Bonds, Buckner Retirement
Services Inc. Obligated Group, Series 1998, 5.250%, 11/15/19
(Pre-refunded 11/15/08)
11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 10,515,547
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
5,500 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 BBB- 4,860,515
Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 5,050,550
Refunding and Improvement Bonds, Series 2001A,
5.625%, 11/01/21 - FGIC Insured (Alternative Minimum Tax)
2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,725,947
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - MBIA Insured
22,500 Houston, Texas, Junior Lien Water and Sewerage System 12/10 at 100.00 AA (4) 23,812,199
Revenue 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 1,425,720
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/34
Lubbock Health Facilities Development Corporation, Texas,
Revenue Bonds, St. Joseph Health System, Series 1998:
4,900 5.250%, 7/01/15 7/08 at 101.00 AA- 4,968,600
8,495 5.250%, 7/01/16 7/08 at 101.00 AA- 8,600,253
17,655 Matagorda County Navigation District 1, Texas, Revenue 11/08 at 102.00 AAA 17,679,540
Refunding Bonds, Houston Industries Inc., Series 1998B,
5.150%, 11/01/29 - MBIA Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, Revenue 5/08 at 100.00 BBB 7,660,940
Refunding Bonds, Union Pacific Corporation, Series 1992,
5.350%, 11/01/10
2,000 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 2,095,840
System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
14,680 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,353,812
General Obligation Bonds, Series 1999, 5.800%, 8/15/29
(Pre-refunded 8/15/09)
11,300 San Antonio, Texas, Electric and Gas System Revenue Refunding No Opt. Call AAA 12,125,126
Bonds, New Series 1992, 5.000%, 2/01/17 (ETM)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,750 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA $ 3,996,525
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/23 (Pre-refunded 2/01/11)
2,920 Tarrant County Cultural and Education Facilities Financing 11/17 at 100.00 AA- 2,650,104
Corporation, Texas, Revenue Bonds, Tarrant County Health
Resources, Series 2007B, Residuals 1831, 9.802%, 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 1,670,410
9,110 0.000%, 8/15/39 8/15 at 28.63 AAA 1,575,119
6,610 0.000%, 8/15/42 8/15 at 24.42 AAA 953,426
7,110 0.000%, 8/15/43 8/15 at 23.11 AAA 966,249
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 5,355,950
Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/22
(Pre-refunded 8/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
170,745 Total Texas 141,794,941
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.7% (1.0% OF TOTAL INVESTMENTS)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue Refunding 8/08 at 100.00 BB- 5,818,328
Bonds, Laidlaw/ECDC Project, Guaranteed by Allied Waste
Industries, Series 1995, 7.500%, 2/01/10
(Alternative Minimum Tax)
7,155 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 7,370,866
Payson Power Project, Series 2003A, 5.000%, 4/01/25 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,955 Total Utah 13,189,194
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.1% (1.3% OF TOTAL INVESTMENTS)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100.00 A3 3,804,560
Bonds, Series 2001B, 5.125%, 7/01/31 - FGIC Insured
(Alternative Minimum Tax)
11,040 Suffolk Redevelopment and Housing Authority, Virginia, No Opt. Call Aaa 11,579,304
FNMA 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+ 674,742
Series 1999F, 5.000%, 5/01/15 (Alternative Minimum Tax)
Virginia Resources Authority, Water System Revenue Refunding
Bonds, Series 2002:
500 5.000%, 4/01/18 4/12 at 102.00 AA 530,930
500 5.000%, 4/01/19 4/12 at 102.00 AA 529,350
------------------------------------------------------------------------------------------------------------------------------------
16,705 Total Virginia 17,118,886
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.2% (5.6% OF TOTAL INVESTMENTS)
6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,163,708
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 5.350%, 7/01/18 - FSA Insured
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,715,825
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,005,531
5.625%, 2/01/24 - MBIA Insured (Alternative Minimum Tax)
13,400 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 Aa3 13,918,848
Series 2000, 5.400%, 12/01/25
5,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/16 at 100.00 AA 4,747,600
Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured
3,265 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 3,331,149
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
18,145 Washington, General Obligation Bonds, Series 2001-02A, 7/11 at 100.00 AAA 18,788,422
5.000%, 7/01/23 - FSA Insured
Washington, Motor Vehicle Fuel Tax General Obligation Bonds,
Series 2002C:
7,000 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 7,285,810
7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,256,271
------------------------------------------------------------------------------------------------------------------------------------
70,970 Total Washington 73,213,164
------------------------------------------------------------------------------------------------------------------------------------
49
NQU
Nuveen Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 180 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB $ 180,407
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/08 at 102.00 Aaa 7,821,373
Bonds, 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+ 2,932,110
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- 1,778,027
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
12,825 Total Wisconsin 12,711,917
------------------------------------------------------------------------------------------------------------------------------------
$ 1,595,036 Total Investments (cost $1,252,655,479) - 164.0% 1,300,166,759
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.2)% (72,960,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 17,455,926
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.0)% (5) (452,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 792,662,685
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 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 (34.8)%.
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.
50
NPF
Nuveen Premier Municipal Income Fund, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.6% (0.9% OF TOTAL INVESTMENTS)
$ 2,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 1,970,600
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
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 1,167,744
400 5.000%, 11/15/30 11/15 at 100.00 Baa1 348,236
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,110,960
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
4,600 Total Alabama 4,597,540
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,000 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 101.00 AAA 2,033,500
Bonds, Series 1999A, 6.000%, 6/01/49 - MBIA Insured
1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 781,350
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alaska 2,814,850
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 7.5% (4.2% 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 98,688
135 5.250%, 12/01/25 12/15 at 100.00 BBB 132,412
7,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 5,436,270
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 7,706,775
Arizona, Electric System Revenue Bonds, Series 2002B,
5.000%, 1/01/25
6,000 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 Aa1 6,460,620
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- 1,077,360
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
21,935 Total Arizona 20,912,125
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.7% (1.0% OF TOTAL INVESTMENTS)
4,655 Arkansas Development Finance Authority, State Facility 11/15 at 100.00 AAA 4,831,843
Revenue Bonds, Department of Correction Special Needs Unit
Project, Series 2005B, 5.000%, 11/01/25 - FSA Insured
14 Stuttgart Public Facilities Board, Arkansas, Single Family Mortgage 7/08 at 100.00 Aaa 13,905
Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
4,669 Total Arkansas 4,845,748
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 24.5% (13.6% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public Improvement 9/17 at 100.00 A 8,855,498
Project Lease Bonds, Series 2007A-1, 4.375%, 3/01/37 -
FGIC Insured
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 5,988,953
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
51
NPF
Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,350 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ $ 1,363,406
University of Southern California, Series 2005,
4.750%, 10/01/28
1,975 California Health Facilities Financing Authority, Revenue Bonds, No Opt. Call A 2,069,978
Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26
(Mandatory put 7/01/14)
8,000 California Infrastructure Economic Development Bank, First Lien No Opt. Call AAA 8,545,120
Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) -
AMBAC Insured (UB)
500 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 430,450
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
1,600 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,596,672
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
California, General Obligation Bonds, Series 2004:
4,000 5.000%, 2/01/23 2/14 at 100.00 A+ 4,079,800
4,900 5.000%, 6/01/23 - AMBAC Insured 12/14 at 100.00 AAA 5,038,131
1,000 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,018,380
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
28,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 19,778,638
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17 (ETM)
3,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,832,585
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 518,486
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 AAA 6,272,943
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 96,087
110 5.000%, 9/01/23 9/15 at 102.00 Baa3 103,853
------------------------------------------------------------------------------------------------------------------------------------
77,180 Total California 68,588,980
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.1% (6.2% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- 941,570
Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29
1,150 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 1,129,001
Medical Center, Series 2004, 5.000%, 9/01/25
400 Colorado Health Facilities Authority, Revenue Bonds, 3/15 at 100.00 BBB+ 381,148
Poudre Valley Health Care, Series 2005F, 5.000%, 3/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, 12/09 at 101.00 Aaa 1,063,020
Poudre Valley Healthcare Inc., Series 1999A,
5.750%, 12/01/23 (Pre-refunded 12/01/09) - FSA Insured
750 Colorado Health Facilities Authority, Revenue Bonds, Vail Valley 1/15 at 100.00 BBB+ 756,750
Medical Center, Series 2004, 5.000%, 1/15/17
Denver City and County, Colorado, Airport Revenue Bonds
Series 2006:
11,060 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 11,113,199
6,800 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 A+ 6,801,632
8,940 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 8,898,608
------------------------------------------------------------------------------------------------------------------------------------
31,100 Total Colorado 31,084,928
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,020 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 2,030,403
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.8% (1.0% OF TOTAL INVESTMENTS)
$ 1,700 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R $ 1,655,800
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 2,539,300
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- 975,890
Revenue, Baptist Health System Obligation Group,
Series 2007, 5.000%, 8/15/42
------------------------------------------------------------------------------------------------------------------------------------
5,200 Total Florida 5,170,990
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.5% (2.5% OF TOTAL INVESTMENTS)
8,050 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AAA 8,146,037
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 AAA 4,386,439
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,155 Total Georgia 12,532,476
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8% (0.4% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,286,878
Revenue Bonds, Hawaiian Electric Company Inc., Series 1999D,
6.150%, 1/01/20 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
85 Idaho Housing and Finance Association, Single Family Mortgage 7/08 at 100.00 Aa1 87,509
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- 452,925
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
585 Total Idaho 540,434
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.7% (7.6% OF TOTAL INVESTMENTS)
8,300 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 AAA 9,259,895
General Obligation Bonds, Series 2006, 5.000%, 12/01/35 (UB)
655 Chicago Public Building Commission, Illinois, General Obligation No Opt. Call AAA 732,945
Lease Certificates, Chicago Board of Education, Series 1990B,
7.000%, 1/01/15 - MBIA Insured (ETM)
8,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 3,837,342
Series 1999, 0.000%, 1/01/24 - FGIC Insured
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series 2001, No Opt. Call AAA 9,731,308
5.750%, 11/01/30 - AMBAC Insured (5)
200 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 182,096
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa3 956,340
Medical Center, Series 2002, 5.500%, 5/15/32
1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA 1,603,845
Series 2002, 5.500%, 2/01/17 - FGIC Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
850 5.250%, 1/01/25 1/16 at 100.00 AA- 856,341
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,725,360
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 AAA 4,873,489
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 4,694,883
------------------------------------------------------------------------------------------------------------------------------------
52,775 Total Illinois 38,453,844
------------------------------------------------------------------------------------------------------------------------------------
53
NPF
Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1% (1.8% OF TOTAL INVESTMENTS)
$ 2,275 Anderson School Building Corporation, Madison County, Indiana, 1/14 at 100.00 AAA $ 2,548,796
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, No Opt. Call AAA 2,993,283
First Mortgage Bonds, Crown Point Community School
Corporation, Series 2000, 0.000%, 1/15/23 - MBIA Insured
1,250 Portage, Indiana, Revenue Bonds, Series 2006, 5.000%, 7/15/23 7/16 at 100.00 BBB+ 1,152,713
1,000 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB 906,180
Madison Center Inc., Series 2005, 5.250%, 2/15/28
1,190 St. Joseph County PHM Elementary/Middle School Building No Opt. Call A 1,210,278
Corporation, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
------------------------------------------------------------------------------------------------------------------------------------
11,895 Total Indiana 8,811,250
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.7% OF TOTAL INVESTMENTS)
4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 3,420,240
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 478,196
Kentucky, Industrial Building Revenue Bonds, Sisters of Mercy
of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.2% (3.5% OF TOTAL INVESTMENTS)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized 9/08 at 100.00 AAA 1,321,214
Mortgage Revenue Bonds, St. Dominic Assisted Care Facility,
Series 1995, 6.850%, 9/01/25
1,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 1,441,200
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 815,768
8,880 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 8,413,000
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA- 4,211
Residuals 660-3, 5.082%, 5/01/41 - FGIC Insured (IF)
3,950 Morehouse Parish, Louisiana, Pollution Control Revenue Bonds, No Opt. Call BBB 4,086,117
International Paper Company, Series 2002A, 5.700%, 4/01/14
1,375 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,301,080
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
17,845 Total Louisiana 17,382,590
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.3% (0.7% OF TOTAL INVESTMENTS)
3,620 Maine State Housing Authority, Single Family Mortgage Purchase 5/13 at 100.00 AA+ 3,653,775
Bonds, Series 2004A-2, 5.000%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3% (0.7% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 2,014,680
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 1,523,914
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
3,550 Total Maryland 3,538,594
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.5% (0.9% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 1,005,830
Hampshire College, Series 2004, 5.625%, 10/01/24
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 3,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) $ 3,273,360
Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Massachusetts 4,279,190
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.2% (2.3% OF TOTAL INVESTMENTS)
2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 A- 3,038,783
5.250%, 4/01/17 - XLCA Insured
4,600 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 A 4,292,260
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 997,210
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
170 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 146,441
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 A2 3,165,965
Detroit Metropolitan Airport, Series 2002C, 5.375%, 12/01/19 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,720 Total Michigan 11,640,659
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.3% (2.9% OF TOTAL INVESTMENTS)
4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete Inc., 7/14 at 100.00 A- 4,274,093
Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- (4) 1,105,320
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 2,381,073
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 551,778
1,500 5.250%, 10/01/34 10/14 at 100.00 A2 1,510,485
665 Minnesota Higher Education Facilities Authority, Revenue Bonds, 4/16 at 100.00 A2 671,903
University of St. Thomas, Series 2006-6I, 5.000%, 4/01/23
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,042,510
Series 2004A, 5.250%, 10/01/19
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,217,770
Office Building at Cedar Street, Series 2003, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
14,335 Total Minnesota 14,754,932
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,325 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,337,369
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1% (0.6% OF TOTAL INVESTMENTS)
100 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 97,556
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+ 2,917,786
Facilities Revenue Bonds, Freeman Health System,
Series 2004, 5.500%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Missouri 3,015,342
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.0% (1.6% OF TOTAL INVESTMENTS)
1,580 Douglas County Hospital Authority 2, Nebraska, Health Facilities No Opt. Call A1 1,671,071
Revenue Bonds, Nebraska Medical Center, Series 2003,
5.000%, 11/15/16
1,760 Grand Island, Nebraska, Electric System Revenue Bonds, 9/08 at 100.00 AAA 1,886,509
Series 1977, 6.100%, 9/01/12 (ETM)
2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call Aaa 2,443,953
Loan Program, Series 1993A-5B, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
55
NPF
Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA (continued)
$ 2,300 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 Aaa $ 2,276,563
Revenue Bonds, Nebraska City 2, Series 2006A,
5.000%, 2/01/49 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
7,990 Total Nebraska 8,278,096
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.9% (1.0% OF TOTAL INVESTMENTS)
5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily 7/10 at 101.00 Aaa 5,105,800
Housing Remarketed Revenue Bonds, Countryside LP,
Series 1994, 6.100%, 7/01/24 (Alternative Minimum Tax)
90 New Hampshire Municipal Bond Bank, Revenue Bonds, No Opt. Call N/R 90,416
Coe-Brown Northwood Academy, Series 1994, 7.250%, 5/01/09
------------------------------------------------------------------------------------------------------------------------------------
5,090 Total New Hampshire 5,196,216
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.0% (3.3% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AA- 1,052,100
Construction Bonds, Series 2005P, 5.250%, 9/01/24
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured (UB) No Opt. Call Aaa 5,929,254
10,000 0.000%, 12/15/36 - AMBAC Insured (UB) No Opt. Call Aaa 2,235,904
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,348,900
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 A 1,544,265
5.000%, 1/01/19 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,587,200
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
43,000 Total New Jersey 16,697,623
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 22.0% (12.3% OF TOTAL INVESTMENTS)
10,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/10 at 101.00 AAA 10,725,798
State University Educational Facilities Revenue Bonds,
1999 Resolution, Series 2000B, 5.500%, 5/15/30 (Pre-refunded
5/15/10) - FSA Insured
1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,596,885
Appropriation Lease Bonds, Upstate Community Colleges,
Series 2004B, 5.250%, 7/01/19
10 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA 7,988
Bonds, Driver Trust 1649, 2006, 6.799%, 2/15/47 -
MBIA Insured (IF)
2,180 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA 2,033,744
Bonds, 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 A- 7,629,375
Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured (UB)
5,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 A 5,111,300
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 -
FGIC Insured
4,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 4,170,280
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/23 - AMBAC Insured
4,265 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 4,432,828
Series 2003D, 5.250%, 10/15/22
1,200 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA 1,301,724
Series 2004B, 5.250%, 8/01/15
4,000 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA 4,212,680
Series 2004C, 5.250%, 8/15/20
3,645 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AA 3,648,536
Revenue Bonds, Series 2005, 5.000%, 11/15/44 -
AMBAC Insured (UB)
3,250 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 3,370,055
Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
6,460 5.000%, 1/01/25 - FSA Insured (UB) 7/15 at 100.00 AAA 6,719,886
2,580 5.000%, 1/01/26 - FSA Insured (UB) 7/15 at 100.00 AAA 2,675,770
1,850 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 1,927,404
Revenue Bonds, Series 2005B, 5.000%, 3/15/24 - FSA Insured
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,000 New York State Urban Development Corporation, Subordinate 7/14 at 100.00 A $ 1,039,830
Lien Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22
1,000 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 1,032,650
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
59,440 Total New York 61,636,733
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.1% (2.3% OF TOTAL INVESTMENTS)
10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AAA 11,440,105
Revenue Refunding Bonds, Series 1993B, 6.000%, 1/01/22 -
CAPMAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.9% (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 98,903
1,050 5.875%, 6/01/30 6/17 at 100.00 BBB 977,025
1,055 5.750%, 6/01/34 6/17 at 100.00 BBB 953,709
2,355 5.875%, 6/01/47 6/17 at 100.00 BBB 2,083,987
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB+ 3,681,040
Series 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 244,305
Development Revenue Bonds, Sisters of Mercy of the Americas,
Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
8,815 Total Ohio 8,038,969
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.5% (1.4% 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 498,075
450 5.375%, 9/01/36 9/16 at 100.00 BBB 437,531
Oklahoma Development Finance Authority, Revenue Bonds,
Saint John Health System, Series 2007:
2,900 5.000%, 2/15/37 2/17 at 100.00 AA- 2,856,268
1,305 5.000%, 2/15/42 2/17 at 100.00 AA- 1,275,755
2,035 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 2,007,426
Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36
------------------------------------------------------------------------------------------------------------------------------------
7,190 Total Oklahoma 7,075,055
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.4% (0.8% OF TOTAL INVESTMENTS)
Oregon, General Obligation Bonds, State Board of Higher
Education, Series 2004A:
1,795 5.000%, 8/01/21 8/14 at 100.00 AA 1,886,742
1,990 5.000%, 8/01/23 8/14 at 100.00 AA 2,072,187
------------------------------------------------------------------------------------------------------------------------------------
3,785 Total Oregon 3,958,929
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.2% (0.7% OF TOTAL INVESTMENTS)
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,054,540
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
1,315 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 8/08 at 100.00 AAA 1,325,441
Revenue Refunding Bonds, Delaware Valley Medical Center,
Series 1992, 7.000%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
3,315 Total Pennsylvania 3,379,981
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.7% (1.5% OF TOTAL INVESTMENTS)
7,655 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 7,582,660
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 8.3% (4.6% OF TOTAL INVESTMENTS)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,549,525
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
57
NPF
Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A $ 4,372,403
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
3,340 Greenville County School District, South Carolina, Installment 12/13 at 100.00 AA- 3,499,685
Purchase Revenue Bonds, Series 2003, 5.250%, 12/01/19
3,620 Greenville, South Carolina, Hospital Facilities Revenue Refunding 5/13 at 100.00 AAA 3,735,514
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) 344,655
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- 1,207,077
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) 5,654,215
605 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 697,256
1,145 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,153,519
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
22,010 Total South Carolina 23,213,849
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,779,610
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.8% OF TOTAL INVESTMENTS)
2,060 Johnson City Health and Educational Facilities Board, Tennessee, 7/23 at 100.00 AAA 2,098,955
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+ 1,491,744
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 371,972
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007, 5.500%, 11/01/37
------------------------------------------------------------------------------------------------------------------------------------
4,060 Total Tennessee 3,962,671
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.4% (3.6% OF TOTAL INVESTMENTS)
1,075 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 Caa1 928,327
TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
3,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 3,116,190
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005:
400 5.250%, 8/15/21 No Opt. Call BBB- 389,156
600 5.125%, 8/15/26 No Opt. Call BBB- 554,658
2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 2,330,526
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/25 - AMBAC Insured
290 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 301,116
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
1,710 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 1,835,001
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
(Pre-refunded 2/15/11)
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Caa1 741,640
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
1,600 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 1,576,240
Corporation, Texas, Revenue Bonds, Series 2007A,
5.000%, 2/15/36
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Texas Tech University, Financing System Revenue Bonds,
9th Series 2003:
$ 3,525 5.250%, 2/15/18 - AMBAC Insured 8/13 at 100.00 AAA $ 3,740,836
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AAA 2,373,458
------------------------------------------------------------------------------------------------------------------------------------
17,715 Total Texas 17,887,148
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.2% (0.1% OF TOTAL INVESTMENTS)
340 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aaa 341,931
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
25 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/08 at 101.00 Aaa 25,763
Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
105 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/08 at 101.00 Aaa 107,371
Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
470 Total Utah 475,065
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.6% (4.8% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,715,825
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
7,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 7,587,510
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
6,160 King County Public Hospital District 2, Washington, Limited Tax 6/11 at 101.00 AAA 6,272,913
General Obligation Bonds, Evergreen Hospital Medical Center,
Series 2007A, 5.250%, 12/01/24 - AMBAC Insured
1,000 Skagit County Public Hospital District 1, Washington, Revenue No Opt. Call Baa2 1,018,900
Bonds, Skagit Valley Hospital, Series 2003, 6.000%, 12/01/23
6,220 Washington, General Obligation Refunding Bonds, Series 1992A No Opt. Call AA+ 6,602,903
and 1992AT-6, 6.250%, 2/01/11
------------------------------------------------------------------------------------------------------------------------------------
22,880 Total Washington 24,198,051
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.0% (1.1% OF TOTAL INVESTMENTS)
2,000 West Virginia Water Development Authority, Infrastructure 10/13 at 101.00 AAA 2,258,920
Revenue Bonds, Series 2003A, 5.500%, 10/01/23
(Pre-refunded 10/01/13) - AMBAC Insured
3,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 AAA 3,287,340
Revenue Bonds, Series 2003B, 5.250%, 11/01/23 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,150 Total West Virginia 5,546,260
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.2% (3.4% OF TOTAL INVESTMENTS)
5,670 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 5,767,411
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 141,260
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+ 1,000,760
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- 210,291
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) 2,347,420
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 AA 5,262,050
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/18 -
RAAI Insured
2,500 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA- 2,548,350
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,680 Total Wisconsin 17,277,542
------------------------------------------------------------------------------------------------------------------------------------
59
NPF
Nuveen Premier Municipal Income Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.2% OF TOTAL INVESTMENTS)
$ 1,350 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB $ 1,244,349
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 542,894 Total Long-Term Investments (cost $488,248,101) - 177.2% 496,040,245
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.3% (1.3% OF TOTAL INVESTMENTS)
2,000 King County, Washington, Sewer Revenue Bonds, Series 2001, A-1+ 2,000,000
Trust 554, Variable Rate Demand Obligation, 5.870%, 1/01/19 -
FGIC Insured (6)
4,375 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, VMIG-1 4,375,000
ROCS 660, Variable Rate Demand Obligation, 4.010%, 5/01/41 -
FGIC Insured (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 6,375 Total Short-Term Investments (cost $6,375,000) 6,375,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $494,623,101) - 179.5% 502,415,245
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (22.2)% (62,107,900)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 4,579,032
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.0)% (7) (165,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 279,886,377
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 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 $(2,160,962)
====================================================================================================================================
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: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 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, with an aggregate market value of
$1,711,565, 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 (32.8)%.
(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.
60
NMZ
Nuveen Municipal High Income Opportunity Fund
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL - 2.3% (1.4% 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) 4/19 at 100.00 Aaa $ 5,353,900
(Alternative Minimum Tax)
1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) 4/15 at 100.00 Aaa 1,066,760
(Alternative Minimum Tax)
1,000 GMAC Municipal Mortgage Trust, Series B-1, 5.600%, 10/31/39 No Opt. Call Baa1 1,028,760
(Mandatory put 10/31/19) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total National 7,449,420
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,000 Bessemer, Alabama, General Obligation Warrants, Series 2007, 2/17 at 102.00 N/R 1,776,880
6.500%, 2/01/37
1,000 Birmingham Special Care Facilities Financing Authority, Alabama, 11/15 at 100.00 Baa1 870,590
Revenue Bonds, Baptist Health System Inc., Series 2005A,
5.000%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Alabama 2,647,470
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.4% (3.5% OF TOTAL INVESTMENTS)
505 Estrella Mountain Ranch Community Facilities District, Goodyear, 7/10 at 102.00 N/R 528,291
Arizona, Special Assessment Lien Bonds, Series 2001A,
7.875%, 7/01/25
2,000 Maricopa County Industrial Development Authority, Arizona, 7/08 at 103.00 N/R 2,013,480
Multifamily Housing Revenue Bonds, Privado Park Apartments
Project, Series 2006A, 5.250%, 11/01/41 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 BB 6,344,554
Senior Living Facility Revenue Bonds, Christian Care Mesa II
Inc., Series 2004A, 6.625%, 1/01/34 (Alternative Minimum Tax)
Phoenix Industrial Development Authority, Arizona, Educational
Revenue Bonds, Keystone Montessori School, Series 2004A:
275 6.375%, 11/01/13 11/11 at 103.00 N/R 286,690
790 7.250%, 11/01/23 11/11 at 103.00 N/R 834,256
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,802,722
1,000 Pima County Industrial Development Authority, Arizona, 7/16 at 100.00 N/R 870,640
Charter 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) 1,946,627
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- 533,121
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 584,890
School Revenue Bonds, Pointe Educational Services Charter
School, Series 2004, 6.250%, 7/01/14 (ETM)
1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 BBB- 1,070,110
Correctional Facilities Contract Revenue Bonds, Florence
West Prison LLC, Series 2002A, 5.250%, 10/01/22 -
ACA Insured
1,000 Tucson Industrial Development Authority, Arizona, Charter 9/14 at 100.00 BBB- 976,090
School Revenue Bonds, Arizona Agribusiness and Equine
Center Charter School, Series 2004A, 5.850%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
17,850 Total Arizona 17,791,471
------------------------------------------------------------------------------------------------------------------------------------
61
NMZ
Nuveen Municipal High Income Opportunity Fund (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.3% (9.1% OF TOTAL INVESTMENTS)
$ 8,000 Alameda Public Finance Authority, California, Revenue Bond No Opt. Call N/R $ 6,910,800
Anticipation Notes, Alameda Power and Telecom, Series 2004,
7.000%, 6/01/09
940 California Health Facilities Financing Authority, Hospital Revenue 5/08 at 100.00 BB 910,672
Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
4,000 California Statewide Communities Development Authority, No Opt. Call BB 3,392,360
Revenue Bonds, EnerTech Regional Biosolids Project,
Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
2,925 California Statewide Community Development Authority, Revenue 3/14 at 102.00 N/R 3,006,432
Bonds, Epidaurus Project, Series 2004A, 7.750%, 3/01/34
1,005 California Statewide Community Development Authority, 1/14 at 100.00 N/R 1,041,843
Subordinate Lien Multifamily Housing Revenue Bonds, Corona
Park Apartments, Series 2004I-S, 7.750%, 1/01/34 (Alternative
Minimum Tax)
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 897,890
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
5,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 6,337,045
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,202,500
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
Huntington Beach, California, Special Tax Bonds, Community
Facilities District 2003-1, Huntington Center, Series 2004:
500 5.800%, 9/01/23 9/14 at 100.00 N/R 504,830
1,000 5.850%, 9/01/33 9/14 at 100.00 N/R 971,000
2,500 Independent Cities Lease Finance Authority, California, Revenue 5/14 at 100.00 N/R 2,539,175
Bonds, El Granada Mobile Home Park, Series 2004A,
6.450%, 5/15/44
1,015 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 997,633
Subordinate Lien Revenue Bonds, El Granada Mobile
Home Park, Series 2004B, 6.500%, 5/15/44
1,200 Lake Elsinore, California, Special Tax Bonds, Community Facilities 9/13 at 102.00 N/R 1,135,200
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 9/13 at 102.00 N/R 3,216,400
Tax Bonds, Community Facilities District 3, Series 2004,
5.950%, 9/01/34
300 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B 287,409
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines Inc. Terminal 4 Project, Series 2002B,
7.500%, 12/01/24 (Alternative Minimum Tax)
2,950 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B 2,822,265
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines Inc. Terminal 4 Project, Series 2002C,
7.500%, 12/01/24 (Alternative Minimum Tax)
Moreno Valley Unified School District, Riverside County,
California, Special Tax Bonds, Community Facilities District,
Series 2004:
800 5.550%, 9/01/29 9/14 at 100.00 N/R 730,824
1,250 5.650%, 9/01/34 9/14 at 100.00 N/R 1,133,775
Orange County, California, Special Tax Bonds, Community
Facilities District 03-1 of Ladera Ranch, Series 2004A:
500 5.500%, 8/15/23 8/12 at 101.00 N/R 503,260
1,625 5.600%, 8/15/28 8/12 at 101.00 N/R 1,619,573
1,000 5.625%, 8/15/34 8/12 at 101.00 N/R 981,070
2,250 San Diego County, California, Certificates of Participation, 9/12 at 100.00 Baa1 2,193,638
San 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 3,760,661
Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
48,555 Total California 47,096,255
------------------------------------------------------------------------------------------------------------------------------------
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 10.4% (6.6% OF TOTAL INVESTMENTS)
$ 925 Bradburn Metropolitan District 3, Colorado, General Obligation 12/13 at 101.00 N/R $ 928,950
Bonds, Series 2003, 7.500%, 12/01/33
5,594 Buffalo Ridge Metropolitan District, Colorado, Limited Obligation 12/13 at 101.00 N/R 5,725,795
Assessment Bonds, Series 2003, 7.500%, 12/01/33
400 Colorado Educational and Cultural Facilities Authority, Charter 12/10 at 101.00 BBB (4) 446,756
School Revenue Bonds, Academy Charter School - Douglas
County School District Re. 1, Series 2000, 6.875%, 12/15/20
(Pre-refunded 12/15/10)
650 Colorado Educational and Cultural Facilities Authority, Charter 9/11 at 100.00 Ba1 (4) 738,725
School Revenue Bonds, Bromley East Charter School,
Series 2000A, 7.250%, 9/15/30 (Pre-refunded 9/15/11)
900 Colorado Educational and Cultural Facilities Authority, Charter 7/08 at 100.00 N/R (4) 910,098
School Revenue Bonds, Compass Montessori Elementary
Charter School, Series 2000, 7.750%, 7/15/31
(Pre-refunded 7/15/08)
3,500 Colorado Educational and Cultural Facilities Authority, Charter 5/14 at 101.00 N/R 3,500,910
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 541,929
875 7.500%, 12/01/33 (Pre-refunded 12/01/11) 12/11 at 100.00 AAA 1,014,843
1,784 Colorado Educational and Cultural Facilities Authority, Charter 2/10 at 100.00 AAA 1,934,855
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 859,560
School Revenue Bonds, Jefferson County School District R-1 -
Compass Montessori Secondary School, Series 2006,
5.625%, 2/15/36
1,240 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 (4) 1,368,588
School Revenue Bonds, Weld County School District 6 - Frontier
Academy, Series 2001, 7.250%, 6/01/20
(Pre-refunded 6/01/11)
1,000 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 9/16 at 100.00 AA 910,920
Catholic Health Initiatives, Series 2006A, Trust 1088,
11.697%, 9/01/41 (IF)
1,000 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 1,000,400
Catholic Health Initiatives, Series 2006C-1, Trust 1090,
11.524%, 10/01/41 - FSA Insured (IF)
4,300 Denver Health and Hospitals Authority, Colorado, Revenue Bonds, 12/14 at 100.00 AAA 5,041,363
Series 2004A, 6.250%, 12/01/33 (Pre-refunded 12/01/14)
1,000 Denver, Colorado, FHA-Insured Multifamily Housing Mortgage 7/08 at 102.00 AAA 1,002,760
Loan 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 2,960,797
Facility Revenue Bonds, Series 2007, 6.750%, 1/01/34
1,250 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101.00 AA 1,264,138
Revenue Bonds, Hilltop Community Resources Inc. Obligated
Group, Series 2001A, 5.250%, 12/01/21 - RAAI Insured
1,000 Mountain Shadows Metropolitan District, Colorado, General 12/16 at 100.00 N/R 795,010
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 2,104,186
Revenue Bonds, Series 2003CR-2, 7.875%, 12/01/32
(Mandatory put 12/01/13)
Tallyn's Reach Metropolitan District 3, Aurora, Colorado, Limited
Tax General Obligation Bonds, Series 2004:
500 6.625%, 12/01/23 12/13 at 100.00 N/R 510,460
500 6.750%, 12/01/33 12/13 at 100.00 N/R 508,660
------------------------------------------------------------------------------------------------------------------------------------
33,028 Total Colorado 34,069,703
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,025 Eastern Connecticut Resource Recovery Authority, Solid Waste 7/08 at 100.00 BBB 978,619
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A,
5.500%, 1/01/20 (Alternative Minimum Tax)
63
NMZ
Nuveen Municipal High Income Opportunity Fund (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT (continued)
$ 1,700 Mashantucket Western Pequot Tribe, Connecticut, Subordinate 11/17 at 100.00 Baa3 $ 1,544,229
Special Revenue Bonds, Series 2007A, 5.750%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,725 Total Connecticut 2,522,848
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 9.0% (5.8% OF TOTAL INVESTMENTS)
1,600 Aberdeen Community Development District, Florida, Special 5/14 at 100.00 N/R 1,243,648
Assessment Bonds, Series 2005, 5.500%, 5/01/36
4,240 Bartram Springs Community Development District, Duval County, 5/13 at 102.00 N/R (4) 4,799,553
Florida, Special Assessment Bonds, Series 2003A,
6.650%, 5/01/34 (Pre-refunded 5/01/13)
700 Broward County, Florida, Airport Facility Revenue Bonds, Learjet 11/14 at 101.00 Ba2 738,031
Inc., Series 2000, 7.500%, 11/01/20 (Alternative Minimum Tax)
1,140 Century Gardens Community Development District, Miami-Dade 5/14 at 101.00 N/R 1,112,629
County, Florida, Special Assessment Revenue Bonds,
Series 2004, 5.900%, 5/01/34
440 Islands at Doral Northeast Community Development District, 5/14 at 101.00 N/R 455,418
Miami-Dade County, Florida, Special Assessment Bonds,
Series 2004, 6.125%, 5/01/24
3,000 Jacksonville, Florida, Economic Development Commission 9/17 at 100.00 N/R 2,930,040
Health Care 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 584,789
Assessment Revenue Bonds, Series 2004, 6.125%, 5/01/34
3,813 MMA Financial CDD Junior Securitization Trust, Florida, 11/08 at 100.00 N/R 3,829,707
Pass-Through Certificates, Class A, Series 2003I,
8.000%, 11/01/13
985 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 775,914
Assessment Bonds, Palm Beach Gardens, Series 2004A,
5.900%, 5/01/35
3,790 Palm Beach County Housing Finance Authority, Florida, 7/09 at 103.00 N/R 3,798,490
Multifamily 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 1,727,660
Assessment Bonds, Bella Collina, Series 2004, 5.750%, 5/01/35
1,000 Sarasota County Health Facility Authority, Florida, Revenue 7/17 at 100.00 N/R 860,720
Bonds, 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 441,368
500 6.125%, 5/01/34 5/14 at 101.00 N/R 501,125
995 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 817,990
Assessment Bonds, Series 2006, 5.400%, 5/01/37
1,715 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R 1,678,333
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 121,831
3,745 6.125%, 5/01/35 5/13 at 101.00 N/R 3,278,635
------------------------------------------------------------------------------------------------------------------------------------
30,848 Total Florida 29,695,881
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
500 Effingham County Development Authority, Georgia, Solid Waste 7/08 at 102.00 B 439,735
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 833,139
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 769,560
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 2,048,188
Revenue Bonds, St. Anne's Terrace, Series 2003,
7.625%, 12/01/33
------------------------------------------------------------------------------------------------------------------------------------
4,315 Total Georgia 4,090,622
------------------------------------------------------------------------------------------------------------------------------------
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 2,000 Hawaii State Department of Budget and Finance, Private School No Opt. Call N/R $ 1,835,820
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 874,720
Revenue Bonds, Montessori of Maui, Series 2007,
5.500%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Hawaii 2,710,540
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.5% (4.8% OF TOTAL INVESTMENTS)
2,000 Chicago, Illinois, Certificates of Participation Tax Increment 12/08 at 100.00 N/R 2,011,360
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 1,018,100
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 1,857,540
Medical Center Galena-Stauss Hospital, Series 2006,
6.750%, 10/01/46
1,350 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 1,353,240
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa3 956,340
Medical Center, Series 2002, 5.500%, 5/15/32
8,800 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 8,980,224
Hospital, Series 2016, 5.750%, 7/01/29 (UB)
1,400 Illinois Health Facilities Authority, Revenue Bonds, Midwest 11/08 at 102.00 N/R 1,280,594
Physicians Group Ltd., Series 1998, 5.500%, 11/15/19
1,650 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 1,682,901
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
1,203 Lombard Public Facilities Corporation, Illinois, Third Tier 7/18 at 100.00 N/R 1,031,763
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 1,967,264
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 895,885
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 885,070
Water Improvement Project Revenue Bonds, Series 2007,
6.000%, 1/01/26
980 Yorkville, Illinois, Special Service Area 2005-108 Assessment 3/16 at 102.00 N/R 879,726
Bonds, Autumn Creek Project, Series 2006, 6.000%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
25,403 Total Illinois 24,800,007
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 10.1% (6.4% OF TOTAL INVESTMENTS)
6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R 6,457,499
Bonds, Series 2004A, 6.650%, 1/15/24
22,770 Indiana Finance Authority, Water Facilities Refunding Revenue 10/16 at 100.00 AA 20,735,501
Bonds, Indiana-American Water Company Inc. Project,
Series 2006, 4.875%, 10/01/36 - AMBAC Insured (UB)
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- 518,305
2,500 6.000%, 3/01/34 3/14 at 101.00 BBB- 2,477,075
200 Jasper County, Indiana, Economic Development Revenue 4/10 at 101.00 B2 186,304
Refunding Bonds, Georgia Pacific Corporation Project,
Series 2000, 6.700%, 4/01/29 (Alternative Minimum Tax)
1,000 St. Joseph County, Indiana, Economic Development Revenue 7/15 at 103.00 N/R 1,025,570
Bonds, Chicago Trail Village Apartments, Series 2005A,
7.500%, 7/01/35
1,735 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 1,796,350
Revenue Bonds, Steel Dynamics Inc., Series 1998,
7.250%, 11/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,065 Total Indiana 33,196,604
------------------------------------------------------------------------------------------------------------------------------------
65
NMZ
Nuveen Municipal High Income Opportunity Fund (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,000 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB- $ 924,590
Care Initiatives Project, Series 2006A, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,000 Fredonia, Kansas, Hospital Revenue Bonds, Series 2007, 8/17 at 100.00 N/R 1,808,220
6.125%, 8/15/37
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 9.3% (5.9% OF TOTAL INVESTMENTS)
1,000 Carter Marina Community Development District, Louisiana, 10/12 at 100.00 N/R 953,850
Special Assessment Bonds, Series 2007, 6.250%, 10/01/22
3,000 Greystone Community Development District, Louisiana, 12/14 at 100.00 N/R 2,998,380
Special Assessment Bonds, Livingston Parish, Series 2007,
6.750%, 12/01/22
8,500 Hodge, Louisiana, Combined Utility System Revenue Bonds, No Opt. Call B- 8,035,729
Smurfit-Stone Container Corporation, Series 2003,
7.450%, 3/01/24 (Alternative Minimum Tax)
5,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB+ 4,926,450
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
1,000 Louisiana Local Government Environmental Facilities and 9/16 at 100.00 N/R 891,250
Community Development Authority, Carter Plantation Hotel
Project Revenue Bonds, Series 2006A, 6.000%, 9/01/36
1,000 Louisiana Local Government Environmental Facilities and 6/16 at 101.00 N/R 1,012,300
Community Development Authority, Revenue Bonds,
CDF Healthcare of Louisiana LLC, Series 2006A,
7.000%, 6/01/36
3,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 2,906,490
Community Development Authority, Revenue Bonds,
Southgate Suites Hotel LLC Project, Series 2007A,
6.750%, 12/15/37
Ouachita Parish Industrial Development Authority, Louisiana,
Solid Waste Disposal Revenue Bonds, White Oaks Project, Series
2004A:
865 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 882,828
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 827,202
5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue 4/11 at 100.00 N/R 5,128,126
Bonds, Freeport McMoran Project, Series 1992,
7.700%, 10/01/22 (Alternative Minimum Tax)
2,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,892,480
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
31,295 Total Louisiana 30,455,085
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,155 Portland Housing Development Corporation, Maine, 2/14 at 102.00 Baa2 3,103,857
Section 8 Assisted Senior Living Revenue Bonds, Avesta
Housing Development Corporation, Series 2004A,
6.000%, 2/01/34
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.5% (2.2% OF TOTAL INVESTMENTS)
2,000 Maryland Energy Financing Administration, Revenue Bonds, 7/08 at 100.00 N/R 1,930,620
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
3,850 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 3,839,220
Revenue Bonds, MedStar Health, Series 2004, 5.500%, 8/15/33
7,435 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/08 at 100.00 B3 5,718,333
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
13,285 Total Maryland 11,488,173
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.1% (0.7% OF TOTAL INVESTMENTS)
580 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 557,972
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
2,000 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 BB- 1,788,920
Orchard Cove, Series 2007, 5.250%, 10/01/26
1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB- 1,343,885
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
3,930 Total Massachusetts 3,690,777
------------------------------------------------------------------------------------------------------------------------------------
66
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1% (2.6% OF TOTAL INVESTMENTS)
$ 1,240 Countryside Charter School, Berrien County, Michigan, Charter 4/09 at 100.00 N/R $ 1,244,861
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 881,971
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- 1,234,036
15 5.500%, 5/01/21 - ACA Insured 5/09 at 101.00 BB- 13,364
1,000 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 769,590
Bonds, Garden City Hospital Obligated Group, Series 2007A,
5.000%, 8/15/38
3,580 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 100.00 BB- 3,149,111
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993B, 5.500%, 8/15/23
500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 433,800
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/15 at 102.00 N/R 1,466,760
Hills and Dales General Hospital, Series 2005A,
6.750%, 11/15/38
2,665 Nataki Talibah Schoolhouse, Wayne County, Michigan, Certificates 6/10 at 102.00 N/R (4) 2,945,092
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) 8/08 at 100.00 C 96,136
1,500 6.000%, 8/01/18 (6) 8/08 at 100.00 C 146,400
1,800 6.000%, 8/01/23 (6) 8/08 at 100.00 C 175,680
1,000 Summit Academy North Charter School, Michigan, Charter 11/15 at 100.00 BB+ 854,850
School Revenue Bonds, Series 2005, 5.500%, 11/01/30
------------------------------------------------------------------------------------------------------------------------------------
18,080 Total Michigan 13,411,651
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.3% (2.1% 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) 109,191
100 7.300%, 7/01/15 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 109,391
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease 6/14 at 102.00 N/R 1,341,748
Revenue 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 A (4) 5,553,250
Services, Series 2003B, 5.250%, 7/01/30
(Pre-refunded 7/01/14)
1,430 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,456,727
Charter School Revenue Bonds, Higher Ground Academy
Charter School, Series 2004A, 6.625%, 12/01/23
1,100 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,117,347
Charter School Revenue Bonds, HOPE Community Academy
Charter School, Series 2004A, 6.750%, 12/01/33
1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R 998,180
HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30
------------------------------------------------------------------------------------------------------------------------------------
10,055 Total Minnesota 10,685,834
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.3% (0.2% OF TOTAL INVESTMENTS)
963 Mississippi Home Corporation, Multifamily Housing Revenue 10/19 at 101.00 N/R 875,734
Bonds, Tupelo Personal Care Apartments, Series 2004-2,
6.125%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.7% (1.7% OF TOTAL INVESTMENTS)
2,000 Branson Regional Airport Transportation Development District, 7/17 at 100.00 N/R 1,740,260
Missouri, Project Revenue Bonds, Series 2007B,
6.000%, 7/01/37 (Alternative Minimum Tax)
5,935 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AA 5,178,822
Authority, Water Facility Revenue Bonds, Missouri-American
Water Company, Series 2006, 4.600%, 12/01/36 -
AMBAC Insured (Alternative Minimum Tax) (UB)
67
NMZ
Nuveen Municipal High Income Opportunity Fund (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 1,300 Saint Louis Industrial Development Authority, Missouri, 12/10 at 102.00 Caa2 $ 1,229,748
Saint Louis Convention Center Headquarters Hotel Project,
Series 2000A, 7.250%, 12/15/35 (Alternative Minimum Tax)
805 Saint Louis, Missouri, Tax Increment Financing Revenue 12/08 at 100.00 N/R 767,205
Bonds, Grace Lofts Redevelopment Projects, Series 2007A,
6.000%, 3/27/26
------------------------------------------------------------------------------------------------------------------------------------
10,040 Total Missouri 8,916,035
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 2.1% (1.4% OF TOTAL INVESTMENTS)
5,200 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B+ 5,031,676
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
2,060 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 2,003,247
Bonds, Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,260 Total Montana 7,034,923
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.8% (1.8% OF TOTAL INVESTMENTS)
6,500 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 Aaa 6,234,930
System Revenue Bonds, Nebraska City 2, Series 2006A,
Residuals 1508-2, 7.623%, 2/01/49 - AMBAC Insured (IF)
3,000 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 Aaa 2,969,430
System Revenue Bonds, Nebraska City 2, Series 2006A,
5.000%, 2/01/49 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
9,500 Total Nebraska 9,204,360
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,170 Clark County, Nevada, Industrial Development Revenue Bonds, 7/08 at 100.00 BB 989,691
Nevada Power Company Project, Series 1995C,
5.500%, 10/01/30
500 Clark County, Nevada, Industrial Development Revenue Bonds, 5/08 at 100.00 BB 432,595
Nevada Power Company, Series 1997A, 5.900%, 11/01/32
(Alternative Minimum Tax)
1,475 Clark County, Nevada, Local Improvement Bonds, Mountain's 8/16 at 100.00 N/R 1,409,141
Edge Special Improvement District 142, Series 2003,
6.375%, 8/01/23
1,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 799,000
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 1,434,825
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
8,645 Total Nevada 5,065,252
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.9% (3.1% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, Revenue Bonds, 7/08 at 102.00 BB+ 850,440
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
1,660 New Jersey Economic Development Authority, Special Facilities 9/09 at 101.00 B 1,396,475
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 458,570
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) 556,225
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
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 9,111,116
2,760 7.000%, 6/01/41 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,244,325
500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 400,190
Settlement Asset-Backed Bonds, Series 2007-1A,
5.000%, 6/01/41
------------------------------------------------------------------------------------------------------------------------------------
14,745 Total New Jersey 16,017,341
------------------------------------------------------------------------------------------------------------------------------------
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 5 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba2 $ 4,716
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
1,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B 980,520
American 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, 7/08 at 100.00 CCC+ 1,297,763
Special Facilities Revenue Bonds, American Airlines Inc.,
Series 1994, 6.900%, 8/01/24 (Alternative Minimum Tax)
750 New York City Industrial Development Agency, New York, No Opt. Call B 760,725
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002A, 8.000%, 8/01/12
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,455 Total New York 3,043,724
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.9% (1.2% OF TOTAL INVESTMENTS)
5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 5,163,895
Facilities Revenue Bonds, Liberty Tire Services of
North Carolina LLC, Series 2004A, 6.750%, 7/01/29
1,000 North Carolina Capital Facilities Financing Agency, General 10/16 at 100.00 AA+ 1,088,100
Revenue Bonds, Duke University, Series 2006A, Trust 1076,
11.838%, 10/01/44 (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total North Carolina 6,251,995
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 9.6% (6.1% 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 495,825
400 5.800%, 1/01/18 1/10 at 100.00 B 372,616
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
355 5.125%, 6/01/24 6/17 at 100.00 BBB 334,385
3,570 5.875%, 6/01/30 6/17 at 100.00 BBB 3,321,885
3,375 5.750%, 6/01/34 6/17 at 100.00 BBB 3,050,966
10,855 5.875%, 6/01/47 6/17 at 100.00 BBB 9,605,804
3,255 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 3,109,860
Revenue Bonds, Bond Fund Program - Garfield Heights Project,
Series 2004D, 5.250%, 5/15/23
7,000 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/08 at 102.00 N/R 6,668,970
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
1,000 Ohio, Environmental Facilities Revenue Bonds, Ford Motor 4/15 at 100.00 Ba1 747,050
Company, Series 2005, 5.750%, 4/01/35
(Alternative Minimum Tax)
4,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 3,714,680
Revenue Bonds, Central Waste Inc., Series 2007A,
6.350%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
34,310 Total Ohio 31,422,041
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6% (1.0% OF TOTAL INVESTMENTS)
985 Okeene Municipal Hospital and Schallmo Authority, Oklahoma, 1/16 at 101.00 N/R 950,919
Revenue Bonds, Series 2006, 7.000%, 1/01/35
660 Oklahoma Development Finance Authority, Revenue Refunding 8/09 at 101.00 AAA 692,472
Bonds, Hillcrest Healthcare System, Series 1999A,
5.625%, 8/15/29 (Pre-refunded 8/15/09)
850 Tulsa Industrial Authority, Oklahoma, Student Housing 10/16 at 100.00 A2 826,362
Revenue Bonds, University of Tulsa, Series 2006,
5.000%, 10/01/37
1,335 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 6/08 at 100.00 B 1,175,294
American Airlines Inc., Series 1995, 6.250%, 6/01/20
1,500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa1 1,488,840
Bonds, American Airlines Inc., Series 2004A,
7.750%, 6/01/35 (Mandatory put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
5,330 Total Oklahoma 5,133,887
------------------------------------------------------------------------------------------------------------------------------------
69
NMZ
Nuveen Municipal High Income Opportunity Fund (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.2% (3.3% 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 $ 818,029
6,455 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 7,597,663
500 Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call BB- 488,740
Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
1,000 Berks County Industrial Development Authority, Pennsylvania, 11/17 at 101.00 N/R 945,070
First Mortgage Revenue Bonds, One Douglassville Properties
Project, Series 2007A, 6.125%, 11/01/34
(Alternative Minimum Tax)
2,000 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 1,844,660
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.750%, 10/15/37
500 New Morgan Industrial Development Authority, Pennsylvania, 10/08 at 100.00 BB- 486,100
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
400 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 404,232
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2002A, 6.750%, 12/01/36 (Alternative Minimum Tax)
600 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 606,348
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB 3,966,080
Revenue Bonds, Amtrak 30th Street Station Parking
Garage, Series 2002, 5.800%, 6/01/23 - ACA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
16,150 Total Pennsylvania 17,156,922
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,500 Central Falls Detention Facility Corporation, Rhode Island, 7/15 at 103.00 N/R 1,552,230
Detention Facility Revenue Bonds, Series 2005,
7.250%, 7/15/35
3,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 2,897,430
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Rhode Island 4,449,660
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS)
4,000 Lancaster County, South Carolina, Assessment Bonds, 11/17 at 100.00 N/R 4,011,960
Edgewater II Improvement District, Series 2007A,
7.750%, 11/01/39
490 Tobacco Settlement Revenue Management Authority, No Opt. Call BBB 482,297
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
4,490 Total South Carolina 4,494,257
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.9% (1.8% OF TOTAL INVESTMENTS)
3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 3,624,705
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, 9/08 at 100.00 B- 1,283,505
Multi-Modal 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 1,859,860
2,000 5.500%, 11/01/46 11/17 at 100.00 N/R 1,813,460
1,000 Wilson County Health and Educational Facilities Board, 7/17 at 100.00 N/R 898,210
Tennessee, Senior Living Revenue Bonds, Rutland Place,
Series 2007A, 6.300%, 7/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Tennessee 9,479,740
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.8% (6.2% OF TOTAL INVESTMENTS)
1,935 Austin Convention Enterprises Inc., Texas, Convention 1/11 at 100.00 N/R 1,935,619
Center Hotel Revenue Bonds, First Tier Series 2001A,
9.750%, 1/01/26
1,000 Austin Convention Enterprises Inc., Texas, Convention 1/17 at 100.00 BB 885,440
Center Hotel Revenue Bonds, First Tier Series 2006B,
5.750%, 1/01/34
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 10 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 $ 9,343
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
1,750 Dallas-Ft. Worth International Airport Facility Improvement 11/12 at 100.00 CCC+ 1,046,378
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 1,869,311
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 6,764,274
585 Gulf Coast Industrial Development Authority, Texas, 4/12 at 100.00 Baa3 627,073
Solid Waste Disposal Revenue Bonds, Citgo Petroleum
Corporation Project, Series 1998, 8.000%, 4/01/28
(Alternative Minimum Tax)
1,000 Heart of Texas Education Finance Corporation, Texas, 8/16 at 100.00 N/R 895,450
Gateway Charter Academy, Series 2006A, 6.000%, 2/15/36
2,020 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 1,577,135
Bonds, Continental Air Lines Inc., Series 1998B,
5.700%, 7/15/29 (Alternative Minimum Tax)
975 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 761,241
Bonds, Continental Air Lines Inc., Series 1998C,
5.700%, 7/15/29 (Alternative Minimum Tax)
Houston, Texas, Airport System Special Facilities Revenue
Bonds, Continental Air Lines Inc., Series 2001E:
600 7.375%, 7/01/22 (Alternative Minimum Tax) 7/11 at 101.00 B- 580,758
5,350 6.750%, 7/01/29 (Alternative Minimum Tax) 7/11 at 101.00 B-
1,000 La Vernia Education Financing Corporation, Texas, Charter 8/11 at 100.00 N/R 839,480
School Revenue Bonds, Riverwalk Education Foundation,
Series 2007A, 5.450%, 8/15/36
1,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 Caa1 856,710
Refunding Bonds, TXU Energy Company LLC Project,
Series 2003B, 6.150%, 8/01/22
2,000 Sea Breeze Public Facility Corporation, Texas, Multifamily 1/21 at 100.00 N/R 1,846,600
Housing Revenue Bonds, Sea Breeze Senior Apartments,
Series 2006, 6.500%, 1/01/46 (Alternative Minimum Tax)
5,785 Texas Department of Housing and Community Affairs, 7/21 at 100.00 N/R 5,719,340
Multifamily 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 2/15 at 100.00 N/R 781,980
Corporation Revenue Bonds, Cosmos Foundation Inc.,
Series 2007A, 5.375%, 2/15/37
340 Trinity River Authority of Texas, Pollution Control Revenue 5/13 at 101.00 Caa1 282,139
Refunding Bonds, TXU Electric Company, Series 2003,
6.250%, 5/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
34,790 Total Texas 32,057,426
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 2.5% (1.6% OF TOTAL INVESTMENTS)
5,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 5,005,400
Refinery 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 3,256,044
Revenue Bonds, Refinery Project - Hovensa LLC, Series 2004,
5.875%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
8,300 Total Virgin Islands 8,261,444
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 5.2% (3.3% OF TOTAL INVESTMENTS)
1,940 Isle of Wight County Industrial Development Authority, 3/17 at 100.00 BBB 1,466,989
Virginia, Environmental Improvement Revenue Bonds,
International Paper Company Project, Series 2007A,
4.700%, 3/01/31 (Alternative Minimum Tax)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998A:
2,000 0.000%, 8/15/14 (Pre-refunded 8/15/08) 8/08 at 73.23 AAA 1,456,360
4,250 5.500%, 8/15/28 (Pre-refunded 8/15/08) 8/08 at 102.00 AAA 4,376,778
1,850 0.000%, 8/15/30 (Pre-refunded 8/15/08) 8/08 at 28.38 AAA 522,107
71
NMZ
Nuveen Municipal High Income Opportunity Fund (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA (continued)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998B:
$ 2,000 0.000%, 8/15/12 (Pre-refunded 8/15/08) 8/08 at 82.10 AAA $ 1,632,800
3,000 0.000%, 8/15/15 (Pre-refunded 8/15/08) 8/08 at 68.82 AAA 2,053,170
9,000 0.000%, 8/15/19 (Pre-refunded 8/15/08) 8/08 at 54.38 AAA 4,867,020
605 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (4) 696,603
Horse Center Revenue Bonds, Series 2001A,
7.400%, 7/15/21 (Pre-refunded 7/15/11)
------------------------------------------------------------------------------------------------------------------------------------
24,645 Total Virginia 17,071,827
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.3% (2.7% OF TOTAL INVESTMENTS)
3,000 Skagit County Public Hospital District 1, Washington, 12/13 at 100.00 Baa2 3,091,470
Revenue 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 1,684,410
4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 4,404,125
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 2,124,450
1,000 Washington State Economic Development Finance Authority, 12/17 at 100.00 N/R 860,610
Revenue Bonds, Coeur D'Alene Fiber Project, Series 2007G,
7.000%, 12/01/27 (Alternative Minimum Tax)
2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,868,100
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
14,975 Total Washington 14,033,165
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.3% (0.3% OF TOTAL INVESTMENTS)
500 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 479,295
Excise Tax Revenue Bonds, Fort Henry Economic
Development, Series 2006B, 5.625%, 3/01/36
500 Ohio County Commission, West Virginia, Tax Increment No Opt. Call N/R 501,540
Revenue Bonds, Fort Henry Centre Financing District,
Series 2007A, 5.850%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
1,000 Total West Virginia 980,835
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 9.5% (6.1% OF TOTAL INVESTMENTS)
550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R (4) 693,974
Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16
(Pre-refunded 12/01/14)
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Aurora Health Care Inc., Series 1999A:
9,485 5.600%, 2/15/29 2/09 at 101.00 BBB+ 9,045,369
2,300 5.600%, 2/15/29 - ACA Insured 2/09 at 101.00 BBB+ 2,230,586
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 856,258
1,000 6.250%, 4/01/34 4/14 at 100.00 N/R 943,180
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Wheaton Franciscan Health Care System, Series 2006:
7,995 5.250%, 8/15/26 (UB) 8/16 at 100.00 A- 7,259,620
12,000 5.250%, 8/15/34 (UB) 8/16 at 100.00 A- 10,308,240
------------------------------------------------------------------------------------------------------------------------------------
34,205 Total Wisconsin 31,337,227
------------------------------------------------------------------------------------------------------------------------------------
72
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB $ 921,740
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 548,392 Total Investments (cost $528,081,305) - 156.7% 514,848,543
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.5)% (44,370,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.0% 13,025,073
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.2)% (7) (155,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $328,503,616
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 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.
(7) Preferred Shares, at Liquidation Value as a percentage of
total investments is (30.1)%.
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.
73
NMD
Nuveen Municipal High Income Opportunity Fund 2
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0% (0.8% OF TOTAL INVESTMENTS)
$ 2,290 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa1 $ 2,228,445
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 2005A, 5.250%, 11/15/20
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.0% (3.1% OF TOTAL INVESTMENTS)
1,000 Estrella Mountain Ranch Community Facilities District, 7/17 at 100.00 N/R 953,130
Goodyear, Arizona, General Obligation Bonds, Series 2007,
6.200%, 7/15/32
4,000 Quechan Indian Tribe of the Fort Yuma Reservation, Arizona, 12/17 at 102.00 N/R 3,948,520
Government Project Bonds, Series 2007, 7.000%, 12/01/27
3,125 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 2,588,188
Bonds, Trust 2373, 13.299%, 12/01/37 (IF)
1,000 Yuma County Industrial Development Authority, Arizona, Exempt 12/17 at 100.00 N/R 948,740
Revenue Bonds, Far West Water & Sewer Inc. Refunding,
Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,125 Total Arizona 8,438,578
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 22.8% (18.2% OF TOTAL INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 1,748,960
Dominican University, Series 2006, 5.000%, 12/01/36
3,750 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 3,817,275
Sutter Health, Series 2007, Trust 1757, 12.893%, 11/15/46 (IF)
7,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 6,334,579
Revenue 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- 3,144,365
2,000 6.500%, 12/15/47 12/17 at 100.00 N/R 1,799,280
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 2,693,670
2,500 5.125%, 6/01/47 6/17 at 100.00 BBB 2,023,275
3,190 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 Aaa 2,531,648
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, Trust 2213, 11.800%, 6/01/45 -
AMBAC Insured (IF)
20,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 19,159,600
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/38 - FGIC Insured (UB)
6,015 Independent Cities Lease Finance Authority, California, 8/15 at 100.00 BBB 5,280,809
Senior Lien Revenue Bonds, Caritas Affordable Housing
Project Mobile Home Park, Series 2005A,
5.200%, 8/15/45 - ACA Insured
495 Moorpark, California, Special Tax Bonds, Community 9/16 at 100.00 N/R 417,151
Facilities District 2004-1, Moorpark Highlands Project,
Series 2006, 5.300%, 9/01/38
------------------------------------------------------------------------------------------------------------------------------------
53,450 Total California 48,950,612
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.8% (5.4% OF TOTAL INVESTMENTS)
2,000 Arista Metropolitan District, Colorado, Special Revenue Bonds, 12/15 at 100.00 N/R 2,132,640
Series 2008, 9.250%, 12/01/37
500 Colorado Educational and Cultural Facilities Authority, Charter 12/16 at 100.00 N/R 429,125
School Revenue Bonds, Carbon Valley Academy, Series 2006,
5.625%, 12/01/36
74
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,530 Colorado Educational and Cultural Facilities Authority, Charter 5/17 at 100.00 BB+ $ 1,311,088
School Revenue Bonds, Windsor Academy, Series 2007A,
5.700%, 5/01/37
2,000 Colorado Educational and Cultural Facilities Authority, Revenue 6/18 at 102.00 N/R 1,912,240
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 3/15 at 100.00 BBB+ 1,438,834
Valley Health Care, Series 2005F, 5.000%, 3/01/25
5,045 Colorado Housing and Finance Authority, Revenue Bonds, 4/17 at 100.00 N/R 4,554,525
Confluence Energy LLC Project, Series 2007, 6.750%, 4/01/27
(Alternative Minimum Tax)
3,000 University of Colorado Hospital Authority, Revenue Bonds, 5/16 at 100.00 Baa1 2,799,150
Series 2006A, 5.250%, 11/15/39
------------------------------------------------------------------------------------------------------------------------------------
15,585 Total Colorado 14,577,602
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 12.4% (9.9% OF TOTAL INVESTMENTS)
1,500 Beeline Community Development District, Palm Beach County, 5/18 at 100.00 N/R 1,424,505
Florida, Special Assessment Bonds, Series 2008A,
7.000%, 5/01/37
2,000 Escambia County, Florida, Environmental Improvement Revenue 8/11 at 100.00 BBB 1,658,520
Bonds, International Paper Company Projects, Series 2006B,
5.000%, 8/01/26 (Alternative Minimum Tax)
3,000 Jacksonville Economic Development Commission, Florida, 5/16 at 100.00 AA 3,013,740
Health Care Facilities Revenue Bonds, Mayo Clinic,
Series 2006, 5.000%, 11/15/36
2,960 Old Palm Community Development District, Florida, 5/15 at 101.00 N/R 2,331,681
Special Assessment Bonds, Palm Beach Gardens,
Series 2004A, 5.900%, 5/01/35
1,500 Palm Glades Community Development District, Florida, 5/18 at 100.00 N/R 1,424,040
Special 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 863,830
Assessment Bonds, Bella Collina, Series 2004, 5.750%, 5/01/35
1,000 Poinciana West Community Development District, Florida, 5/17 at 100.00 N/R 867,190
Special Assessment Bonds, Series 2007, 6.000%, 5/01/37
985 Reunion West Community Development District, Florida, 5/12 at 101.00 N/R 868,908
Special Assessment Bonds, Series 2004, 6.250%, 5/01/36
2,850 South Miami Health Facilities Authority, Florida, Revenue Bonds, 8/17 at 100.00 AA- 2,659,905
Baptist Health Systems of South Florida, Trust 1030,
12.145%, 8/15/37 (IF)
6,000 Split Pine Community Development District, Florida, 5/17 at 100.00 N/R 4,794,660
Special Assessment Bonds, Series 2007A, 5.250%, 5/01/39
5,000 Stoneybrook Venice Community Development District, Florida, 5/18 at 100.00 N/R 4,727,850
Capital Improvement Revenue Bonds, Series 2007,
6.750%, 5/01/38
1,495 Tolomato Community Development District, Florida, 5/14 at 101.00 N/R 1,229,040
Special Assessment Bonds, Series 2006, 5.400%, 5/01/37
985 Winter Garden Village at Fowler Groves Community 5/16 at 100.00 N/R 835,280
Development District, Florida, Special Assessment Bonds,
Series 2006, 5.650%, 5/01/37
------------------------------------------------------------------------------------------------------------------------------------
30,275 Total Florida 26,699,149
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.7% (2.1% OF TOTAL INVESTMENTS)
3,500 Effingham County Industrial Development Authority, 6/11 at 101.00 B2 3,176,810
Georgia, 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 1,851,420
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 757,050
Revenue Bonds, Elderly Care, Lenbrook Square Project,
Series 2006A, 5.125%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Georgia 5,785,280
------------------------------------------------------------------------------------------------------------------------------------
75
NMD
Nuveen Municipal High Income Opportunity Fund 2 (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.7% (1.4% 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- $ 1,943,048
2,000 5.250%, 9/01/37 9/16 at 100.00 BBB- 1,687,820
------------------------------------------------------------------------------------------------------------------------------------
4,145 Total Idaho 3,630,868
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.9% (7.2% OF TOTAL INVESTMENTS)
5,620 Illinois Finance Authority, Charter School Revenue Bonds, No Opt. Call BBB 4,731,703
Chicago 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 1,435,155
Series 2007, 5.500%, 4/01/37
7,425 Illinois Finance Authority, Revenue Bonds, Sherman 8/17 at 100.00 A- 6,963,758
Health Systems, Series 2007A, 5.500%, 8/01/37
2,500 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 2,079,725
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 1,288,085
2,745 6.625%, 6/01/37 6/17 at 103.00 N/R 2,694,465
------------------------------------------------------------------------------------------------------------------------------------
21,085 Total Illinois 19,192,891
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.7% (2.1% OF TOTAL INVESTMENTS)
3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa2 2,605,710
Revenue Bonds, Cardinal Health System, Series 2006,
5.125%, 8/01/29
2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB- 1,757,180
Community Foundation of Northwest Indiana, Series 2007,
5.500%, 3/01/37
1,625 Vigo County, Indiana, Hospital Authority, Union Hospital, 9/17 at 100.00 N/R 1,414,303
Revenue Bonds, Series 2007, 5.800%, 9/01/47
------------------------------------------------------------------------------------------------------------------------------------
6,625 Total Indiana 5,777,193
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 8.7% (7.0% OF TOTAL INVESTMENTS)
5,000 Greystone Community Development District, Louisiana, 12/14 at 100.00 N/R 4,997,300
Special Assessment Bonds, Livingston Parish, Series 2007,
6.750%, 12/01/22
7,500 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB+ 7,389,673
Community Development Authority, Revenue Bonds, Westlake
Chemical Corporation Project, Series 2007, 6.750%, 11/01/32
500 Louisiana Local Government Environmental Facilities and No Opt. Call AAA 523,240
Community Development Authority, Revenue Bonds, Capital
Projects and Equipment Acquisition Program, Series 2000A,
6.300%, 7/01/30 - AMBAC Insured
5,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 4,844,150
Community Development Authority, Revenue Bonds,
Southgate Suites Hotel LLC Project, Series 2007A,
6.750%, 12/15/37
1,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 946,240
Tobacco Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
19,000 Total Louisiana 18,700,603
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3% (1.0% OF TOTAL INVESTMENTS)
3,000 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB 2,817,120
Revenue Bonds, Mercy Medical Center Project, Series 2007A,
5.500%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.8% (0.6% OF TOTAL INVESTMENTS)
1,750 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 1,667,330
School Revenue Bonds, American Montessori Academy,
Series 2007, 6.500%, 12/01/37
20 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 18,038
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
1,770 Total Michigan 1,685,368
------------------------------------------------------------------------------------------------------------------------------------
76
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.3% (1.9% OF TOTAL INVESTMENTS)
$ 5,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 $ 4,976,450
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/35
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.8% OF TOTAL INVESTMENTS)
40 Saint Louis Industrial Development Authority, Missouri, 12/10 at 102.00 Caa2 38,748
Saint Louis Convention Center Headquarters Hotel Project,
Series 2000A, 7.000%, 12/15/15 (Alternative Minimum Tax)
2,105 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 9/08 at 100.00 N/R 2,069,552
Fashion Square Redevelopment Project, Series 2008A,
6.300%, 8/22/26
------------------------------------------------------------------------------------------------------------------------------------
2,145 Total Missouri 2,108,300
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.0% (0.8% OF TOTAL INVESTMENTS)
55 Clark County, Nevada, Industrial Development Revenue Bonds, 7/08 at 100.00 BB 45,997
Nevada Power Company, Series 1995A, 5.600%, 10/01/30
(Alternative Minimum Tax)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
1,200 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 1,076,676
1,200 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 958,800
------------------------------------------------------------------------------------------------------------------------------------
2,455 Total Nevada 2,081,473
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.0% (3.2% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Special Facilities
Revenue Bonds, Continental Airlines Inc., Series 1999:
3,000 6.250%, 9/15/19 (Alternative Minimum Tax) 9/09 at 101.00 B 2,666,640
55 6.400%, 9/15/23 (Alternative Minimum Tax) 9/09 at 101.00 B 48,233
240 6.250%, 9/15/29 (Alternative Minimum Tax) 9/09 at 101.00 B 201,900
25 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 22,929
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
5,700 New Jersey Health Care Facilities Financing Authority, 7/18 at 100.00 Baa2 5,557,899
New Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
------------------------------------------------------------------------------------------------------------------------------------
9,020 Total New Jersey 8,497,601
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.2% (0.2% OF TOTAL INVESTMENTS)
500 Montecito Estates Public Improvement District, New Mexico, 10/17 at 100.00 N/R 467,650
Special Levee Revenue Bonds, Series 2007, 7.000%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.8% (1.5% OF TOTAL INVESTMENTS)
3,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B 2,941,560
American 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, 7/16 at 101.00 N/R 987,327
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2008A-1, 5.800%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,030 Total New York 3,928,887
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.0% (1.6% OF TOTAL INVESTMENTS)
1,685 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 BBB 1,517,814
Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38
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 1,747,064
1,000 6.125%, 6/01/35 6/18 at 100.00 BBB 1,008,920
------------------------------------------------------------------------------------------------------------------------------------
4,425 Total North Carolina 4,273,798
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.7% (3.0% OF TOTAL INVESTMENTS)
6,845 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/17 at 100.00 BBB 6,057,276
Tobacco Settlement Asset-Backed Revenue Bonds, Senior
Lien, Series 2007A-2, 5.875%, 6/01/47
77
NMD
Nuveen Municipal High Income Opportunity Fund 2 (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 95 Coshocton County, Ohio, Environmental Revenue Bonds, No Opt. Call B- $ 83,452
Smurfit-Stone Container Corporation, Series 2005,
5.125%, 8/01/13
2,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 1,857,340
Revenue Bonds, Central Waste Inc., Series 2007A,
6.350%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,940 Total Ohio 7,998,068
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0% (0.8% OF TOTAL INVESTMENTS)
2,295 Oklahoma Development Finance Authority, Revenue Bonds, 2/17 at 100.00 AA- 2,089,414
Saint John Health System, Series 2007, Trust 1037,
12.031%, 2/15/42 (IF)
45 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 6/08 at 100.00 B 39,617
American Airlines Inc., Series 1995, 6.250%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
2,340 Total Oklahoma 2,129,031
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.3% (1.1% OF TOTAL INVESTMENTS)
1,010 Chester County Industrial Development Authority, Pennsylvania, 12/17 at 100.00 BB+ 962,884
Avon Grove Charter School Revenue Bonds, Series 2007A,
6.375%, 12/15/37
1,900 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 1,875,794
Bonds, Brethren Village Project, Series 2008A, 6.500%, 7/01/40
------------------------------------------------------------------------------------------------------------------------------------
2,910 Total Pennsylvania 2,838,678
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,000 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 1,047,990
Senior Lien Series 2008A, 6.000%, 7/01/38
500 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 100.00 CCC+ 370,970
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, 6/08 at 100.00 CCC+ 14,239
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,520 Total Puerto Rico 1,433,199
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.1% (3.3% OF TOTAL INVESTMENTS)
4,000 Charleston, South Carolina, Tax Increment Revenue Bonds, 6/08 at 100.00 N/R 3,991,040
Charleston Neck redevelopment Project, Series 2007,
7.500%, 6/01/09
1,600 Georgetown County, South Carolina, Environmental Improvement 8/11 at 100.00 BBB 1,289,904
Revenue Bonds, International Paper Company, Series 2006A,
5.000%, 8/01/30 (Alternative Minimum Tax)
3,488 Lancaster County, South Carolina, Special Assessment Bonds, No Opt. Call N/R 3,498,464
Edgewater II Improvement District, Series 2007B,
7.700%, 11/01/17
------------------------------------------------------------------------------------------------------------------------------------
9,088 Total South Carolina 8,779,408
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.1% (1.7% 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 1,859,860
3,000 5.500%, 11/01/46 11/17 at 100.00 N/R 2,720,190
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Tennessee 4,580,050
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.7% (7.0% OF TOTAL INVESTMENTS)
10 Alliance Airport Authority, Texas, Special Facilities Revenue No Opt. Call CCC+ 9,142
Bonds, American Airlines Inc., Series 1991, 7.000%, 12/01/11
(Alternative Minimum Tax)
440 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 411,092
Refunding 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+ 2,817,330
Charter School Revenue Bonds, Series 2008A,
6.500%, 8/15/38
78
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,330 La Vernia Higher Education Financing Corporation, Texas, 2/16 at 100.00 N/R $ 1,266,865
Education 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, 4/12 at 100.00 B+ 3,530,240
Solid Waste Disposal Revenue Bonds, Allied Waste Industries,
Inc., Series 2007A, 5.200%, 4/01/18 (Alternative Minimum Tax)
110 Sabine River Authority, Texas, Pollution Control Revenue Bonds, No Opt. Call Caa1 102,773
TXU Energy Company LLC Project, Series 2001B,
5.750%, 5/01/30 (Mandatory put 11/01/11)
(Alternative Minimum Tax)
385 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call Caa1 359,032
Refunding Bonds, TXU Electric Company, Series 2001A,
5.500%, 5/01/22 (Mandatory put 11/01/11)
3,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 Caa1 2,570,130
Refunding Bonds, TXU Energy Company LLC Project,
Series 2003B, 6.150%, 8/01/22
2,875 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 2,704,398
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 12.153%, 2/15/36 (IF)
5,000 Texas Turnpike Authority, First Tier Revenue Bonds, 8/12 at 100.00 AAA 4,977,650
Central Texas Turnpike System, Series 2002A,
5.000%, 8/15/42 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,150 Total Texas 18,748,652
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.0% (3.2% OF TOTAL INVESTMENTS)
1,750 Spanish Fork City, Utah, Charter School Revenue Bonds, 11/16 at 100.00 N/R 1,530,358
American 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 479,810
1,430 6.500%, 6/15/38 6/17 at 100.00 N/R 1,379,607
5,500 Utah State Charter School Finance Authority, Revenue Bonds, 12/17 at 100.00 BBB- 5,100,480
Summit Academy Project, Series 2007A, 5.800%, 6/15/38
------------------------------------------------------------------------------------------------------------------------------------
9,180 Total Utah 8,490,255
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.3% (4.2% OF TOTAL INVESTMENTS)
4,000 Kalispel Indian Tribe, Washington, Priority Distribution Bonds, No Opt. Call N/R 3,876,160
Series 2008, 6.750%, 1/01/38
1,000 Klickitat County Public Hospital District 2, Washington, No Opt. Call N/R 963,380
Skyline Hospital Revenue Bonds, Series 2007, 6.500%, 12/01/38
7,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 6,538,349
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Washington 11,377,889
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.3% (0.3% OF TOTAL INVESTMENTS)
740 Ohio County Commission, West Virginia, Special District Excise 3/16 at 100.00 N/R 709,357
Tax Revenue Bonds, Fort Henry Economic Development,
Series 2006B, 5.625%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.5% (5.1% OF TOTAL INVESTMENTS)
16,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 A- 13,744,320
Bonds, Wheaton Franciscan Health Care System, Series 2006,
5.250%, 8/15/34 (UB)
------------------------------------------------------------------------------------------------------------------------------------
79
NMD
Nuveen Municipal High Income Opportunity Fund 2 (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.3% (1.0% OF TOTAL INVESTMENTS)
$ 3,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB $ 2,765,220
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 291,293 Total Investments (cost $253,719,338) - 125.1% 268,411,995
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.6)% (27,000,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (12.5)% (26,803,696)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 214,608,299
====================================================================================================================
FUTURES CONTRACTS OUTSTANDING AT APRIL 30, 2008:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION APRIL 30, 2008 (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds Short (563) 6/08 $(65,809,422) $946,310
====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 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.
N/R Not rated.
(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.
80
Statement of
ASSETS & LIABILITIES
April 30, 2008 (Unaudited)
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value
(cost $812,349,783,
$748,498,836,
$1,252,655,479,
$494,623,101,
$528,081,305 and
$280,719,338,
respectively) $831,040,734 $764,611,611 $1,300,166,759 $502,415,245 $514,848,543 $268,411,995
Cash 2,968,036 3,382,609 1,629,427 1,326,426 2,683,614 --
Receivables:
Interest 13,186,884 11,937,934 20,655,103 7,630,734 10,331,341 6,000,721
Investments sold 55,000 771,190 2,385,000 100,000 2,811,263 1,860,159
Deferred offering cost -- -- -- -- 324,586 33,872
Other assets 87,559 81,215 127,946 42,228 42,355 26,253
------------------------------------------------------------------------------------------------------------------------------------
Total assets 847,338,213 780,784,559 1,324,964,235 511,514,633 531,041,702 276,333,000
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Borrowings from custodian -- -- -- -- -- 32,562,804
Floating rate obligations 24,930,000 7,500,000 72,960,000 62,107,900 44,370,000 27,000,000
Payable for
investments purchased 982,104 1,957,500 3,324,861 992,186 1,001,533 --
Variation margin
on futures contracts -- -- -- -- -- 439,844
Unrealized depreciation
on forward swaps -- -- -- 2,160,962 -- --
Accrued expenses:
Management fees 410,558 385,732 616,388 226,436 158,906 63,933
Offering costs -- -- -- -- -- 472,500
Other 212,283 193,110 309,553 110,411 92,949 111,489
Common share
dividends payable 1,989,671 1,997,049 2,901,998 976,815 1,869,029 1,074,131
Preferred share
dividends payable 109,197 105,583 188,750 53,546 45,669 N/A
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 28,633,813 12,138,974 80,301,550 66,628,256 47,538,086 61,724,701
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at
liquidation value 301,000,000 279,000,000 452,000,000 165,000,000 155,000,000 N/A
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares $517,704,400 $489,645,585 $ 792,662,685 $279,886,377 $328,503,616 $214,608,299
====================================================================================================================================
Common shares
outstanding 35,820,767 34,015,420 54,219,374 19,904,218 23,859,362 15,796,696
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by Common
shares outstanding) $ 14.45 $ 14.39 $ 14.62 $ 14.06 $ 13.77 $ 13.59
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares,
$.01 par value per share $ 358,208 $ 340,154 $ 542,194 $ 199,042 $ 238,594 $ 157,967
Paid-in surplus 499,418,358 473,839,020 755,310,592 276,591,039 338,649,115 225,628,553
Undistributed
(Over-distribution of) net
investment income (1,127,650) (253,042) (135,306) (628,161) 1,623,700 1,571,912
Accumulated net
realized gain (loss)
from investments and
derivative transactions 364,533 (393,322) (10,566,075) (1,906,725) 1,224,969 (1,389,100)
Net unrealized
appreciation (depreciation)
of investments and
derivative transactions 18,690,951 16,112,775 47,511,280 5,631,182 (13,232,762) (11,361,033)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $517,704,400 $489,645,585 $ 792,662,685 $279,886,377 $328,503,616 $214,608,299
====================================================================================================================================
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 - Fund did not issue Preferred shares during the period November 15, 2007
(commencement of operations) through April 30, 2008.
See accompanying notes to financial statements.
81
Statement of
OPERATIONS
Six Months Ended April 30, 2008 (Unaudited)
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2
(NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)*
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 21,802,369 $ 21,335,553 $ 33,355,902 $ 12,191,166 $ 17,363,403 $ 7,122,777
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,518,740 2,368,167 3,762,088 1,392,827 1,789,504 701,409
Preferred shares - auction fees 374,194 346,845 561,912 205,123 192,691 N/A
Preferred shares - dividend
disbursing agent fees 24,836 24,804 29,808 14,879 14,932 N/A
Shareholders' servicing
agent fees
and expenses 25,979 22,695 38,104 13,978 1,182 705
Interest expense on
floating rate
obligations 310,636 97,501 722,470 771,955 591,664 212,539
Interest expense
on borrowings
from custodian -- -- -- -- -- 108,272
Custodian's fees
and expenses 74,536 90,254 98,512 46,275 160,890 41,537
Directors'/Trustees'
fees and expenses 7,599 7,527 10,823 4,698 5,319 4,861
Professional fees 23,220 23,202 32,089 15,449 22,104 9,764
Shareholders' reports -
printing and
mailing expenses 48,245 45,243 69,343 28,884 33,769 26,585
Stock exchange
listing fees 6,286 5,993 9,412 4,658 1,423 12,966
Investor relations
expense 51,255 48,847 77,968 28,374 32,476 73,483
Other expenses 22,177 23,217 29,086 19,434 5,996 5,571
------------------------------------------------------------------------------------------------------------------------------------
Total expenses
before custodian fee
credit and expense
reimbursement 3,487,703 3,104,295 5,441,615 2,546,534 2,851,950 1,197,692
Custodian fee credit (48,691) (75,209) (56,932) (27,542) (2,572) (27,754)
Expense reimbursement -- -- -- -- (795,953) (573,043)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,439,012 3,029,086 5,384,683 2,518,992 2,053,425 596,895
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 18,363,357 18,306,467 27,971,219 9,672,174 15,309,978 6,525,882
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 742,653 653,614 1,272,142 (1,503,401) 1,220,269 (1,409,768)
Forward swaps -- -- -- (247,000) -- --
Futures -- -- -- -- -- 20,668
Change in net unrealized
appreciation (depreciation) of:
Investments (20,257,130) (22,468,060) (18,894,077) (10,397,018) (37,622,252) (12,307,343)
Forward swaps -- -- -- (2,290,721) -- --
Futures -- -- -- -- -- 946,310
------------------------------------------------------------------------------------------------------------------------------------
Net realized
and unrealized
gain (loss) (19,514,477) (21,814,446) (17,621,935) (14,438,140) (36,401,983) (12,750,133)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net
investment income (5,400,870) (5,012,273) (8,090,972) (2,979,946) (2,503,766) N/A
From accumulated
net realized gains -- -- -- -- (526,498) N/A
------------------------------------------------------------------------------------------------------------------------------------
Decrease in
net assets applicable
to Common shares
from distributions
to Preferred
shareholders (5,400,870) (5,012,273) (8,090,972) (2,979,946) (3,030,264) N/A
------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in net assets
applicable to Common shares
from operations $ (6,551,990) $ (8,520,252) $ 2,258,312 $ (7,745,912) $(24,122,269) $ (6,224,251)
====================================================================================================================================
* For the period November 15, 2007 (commencement of operations) through
April 30, 2008.
N/A - Fund did not issue Preferred shares during the period November 15, 2007
(commencement of operations) through April 30, 2008.
See accompanying notes to financial statements.
82
Statement of
CHANGES in NET ASSETS (Unaudited)
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
----------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/08 10/31/07 4/30/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 18,363,357 $ 36,606,543 $ 18,306,467 $ 36,198,697
Net realized gain (loss) from:
Investments 742,653 1,949,305 653,614 1,994,624
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (20,257,130) (23,427,097) (22,468,060) (19,571,728)
Forward swaps -- -- -- --
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (5,400,870) (10,668,647) (5,012,273) (9,950,399)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (6,551,990) 4,460,104 (8,520,252) 8,671,194
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (14,009,505) (28,773,137) (13,671,951) (28,151,510)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (14,009,505) (28,773,137) (13,671,951) (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 (20,561,495) (23,205,533) (22,024,882) (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 $517,704,400 $538,265,895 $489,645,585 $511,670,467
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ (1,127,650) $ (80,632) $ (253,042) $ 124,715
====================================================================================================================================
See accompanying notes to financial statements.
83
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
QUALITY INCOME (NQU) PREMIER INCOME (NPF)
----------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/08 10/31/07 4/30/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 27,971,219 $ 54,707,748 $ 9,672,174 $ 19,093,554
Net realized gain (loss) from:
Investments 1,272,142 1,756,386 (1,503,401) 53,881
Forward swaps -- -- (247,000) 178,000
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (18,894,077) (29,728,496) (10,397,018) (12,901,205)
Forward swaps -- -- (2,290,721) 636,942
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (8,090,972) (16,132,468) (2,979,946) (5,895,868)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 2,258,312 10,603,170 (7,745,912) 1,165,304
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (19,681,635) (40,496,209) (6,688,322) (13,479,410)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (19,681,635) (40,496,209) (6,688,322) (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 (17,423,323) (29,665,291) (14,491,449) (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 $792,662,685 $810,086,008 $279,886,377 $294,377,826
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ (135,306) $ (333,918) $ (628,161) $ (632,067)
====================================================================================================================================
See accompanying notes to financial statements.
84
HIGH INCOME HIGH INCOME
OPPORTUNITY (NMZ) OPPORTUNITY 2 (NMD)
----------------------------- ------------------------------
SIX MONTHS YEAR FOR THE PERIOD 11/15/07
ENDED ENDED (COMMENCEMENT OF OPERATIONS)
4/30/08 10/31/07 THROUGH 4/30/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,309,978 $ 28,668,897 $ 6,525,882
Net realized gain (loss) from:
Investments 1,220,269 2,665,874 (1,409,768)
Forward swaps -- -- --
Futures -- -- 20,668
Change in net unrealized appreciation (depreciation) of:
Investments (37,622,252) (17,903,629) (12,307,343)
Forward swaps -- -- --
Futures -- -- 946,310
Distributions to Preferred Shareholders:
From net investment income (2,503,766) (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 (24,122,269) 7,909,671 (6,224,251)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,688,264) (22,823,070) (4,953,970)
From accumulated net realized gains (2,146,329) (105,253) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (13,834,593) (22,928,323) (4,953,970)
------------------------------------------------------------------------------------------------------------------------------------
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 4,659,413 3,071,410 --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 317,482 731,262 539,995
Cost of repurchases -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from capital share transactions 4,976,895 3,802,672 225,686,245
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (32,979,967) (11,215,980) 214,508,024
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 $328,503,616 $361,483,583 $214,608,299
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ 1,623,700 $ 505,752 $ 1,571,912
====================================================================================================================================
N/A - Fund did not issue Preferred shares during the period November 15, 2007
(commencement of operations) through April 30, 2008.
See accompanying notes to financial statements.
85
Statement of
CASH FLOWS
Six Months Ended April 30, 2008 (Unaudited)
PREMIER HIGH INCOME HIGH INCOME
INCOME OPPORTUNITY OPPORTUNITY 2
(NPF) NMZ) (NMD)*
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ (7,745,912) $(24,122,269) $ (6,224,251)
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 (22,239,396) (34,586,680) (287,154,369)
Proceeds from sales and maturities of investments 37,830,474 49,165,462 32,059,936
Cash settlement of forward swaps (247,000) -- --
Proceeds from (Purchases of) short-term investments, net (6,375,000) -- --
Amortization/(Accretion) of premiums and discounts, net (553,262) (297,673) (34,673)
(Increase) Decrease in receivable for interest (456,521) (632,430) (6,000,721)
(Increase) Decrease in receivable for investments sold 791,508 (77,100) (1,860,159)
(Increase) Decrease in other assets 14,389 (14,805) (26,253)
Increase (Decrease) in payable for investments purchased 992,186 (5,091,943) --
Increase (Decrease) in payable for variation margin -- -- 439,844
Increase (Decrease) in accrued management fees (15,371) (15,282) 63,933
Increase (Decrease) in accrued other liabilities (50,814) (40,608) 111,489
Increase (Decrease) in Preferred share dividends payable 8,118 3,267 N/A
Net realized (gain) loss from investments 1,503,401 (1,220,269) 1,409,768
Net realized (gain) loss from paydowns -- (2,097) --
Net realized (gain) loss from forward swaps 247,000 -- --
Change in net unrealized (appreciation) depreciation of investments 10,397,018 37,622,252 12,307,343
Change in net unrealized (appreciation) depreciation of forward swaps 2,290,721 -- --
Taxes paid on undistributed capital gains -- 8,903 --
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 16,391,539 20,698,728 (254,908,113)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations (8,385,000) -- --
Increase (Decrease) in cash overdraft balance -- (8,965,318) --
Increase (Decrease) in borrowings from custodian -- -- 32,562,804
Cash distributions paid to Common shareholders (6,681,948) (13,482,818) (3,339,844)
Proceeds from sale of Common Shares -- -- 225,685,153
Proceeds from Common share shelf offering -- 4,433,022 --
Cost of Common shares repurchased (57,215) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (15,124,163) (18,015,114) 254,908,113
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 1,267,376 2,683,614 --
Cash at the beginning of period 59,050 -- --
------------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 1,326,426 $ 2,683,614 $ --
====================================================================================================================================
* For the period November 15, 2007 (commencement of operations) through
April 30, 2008.
N/A - Fund 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 for interest on floating rate obligations was $771,955, $591,664 and
$212,539 for Premier Income (NPF), High Income Opportunity (NMZ) and High Income
Opportunity 2 (NMD), respectively. Non-cash financing activities not included
herein consist of reinvestments of Common share distributions of $317,482 and
$539,995 for High Income Opportunity (NMZ) and High Income Opportunity 2 (NMD),
respectively.
See accompanying notes to financial statements.
86
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen Investment Quality Municipal Fund, Inc. (NQM),
Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income
Municipal Fund, Inc. (NQU), Nuveen Premier Municipal Income Fund, Inc. (NPF),
Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal High
Income Opportunity Fund 2 (NMD) (collectively, the "Funds"). Common shares of
Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU), Premier
Income (NPF) and High Income Opportunity 2 (NMD) are traded on the New York
Stock Exchange while Common shares of High Income Opportunity (NMZ) are traded
on the 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, the 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 a municipal bond, forward swap or futures contract,
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 market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2008, Select
Quality (NQS) and Quality Income (NQU) each had outstanding when issued/delayed
delivery purchase commitments of $1,957,500. 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.
87
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Professional Fees
Professional fees presented in 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.
Federal 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 benefit or 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 six months ended April 30, 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.
88
Preferred Shares
High Income Opportunity 2 (NMD) did not issue any Preferred shares during the
period November 15, 2007 (commencement of operations) through April 30, 2008.
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
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 2,500 2,000 3,000 1,000 3,000
Series T 2,500 2,000 3,000 2,800 1,600
Series W 2,500 2,800 3,000 -- 1,600
Series W2 -- -- 2,080 -- --
Series TH 2,040 1,560 4,000 2,800 --
Series F 2,500 2,800 3,000 -- --
------------------------------------------------------------------------------------------------------------------
Total 12,040 11,160 18,080 6,600 6,200
==================================================================================================================
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.
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.
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.
89
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") 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, as well as any shortfalls in interest
cash flows. 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, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (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 accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended April 30, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 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)
------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $21,399,231 $6,733,736 $49,837,967 $53,210,615 $41,720,769 $15,758,242
Average annual interest rate and fees 2.92% 2.91% 2.92% 2.92% 2.85% 2.94%
==============================================================================================================================
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
90
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 six months ended
April 30, 2008.
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 2 (NMD) was the only Fund to invest in
futures contracts during the period November 15, 2007, (commencement of
operations) through April 30, 2008.
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.
Borrowings from Custodian
In anticipation of the issuance of preferred shares in January 2008, High Income
Opportunity 2 (NMD) purchased securities with the intent of funding the
settlement of the purchases with the proceeds from the preferred stock issuance.
During January 2008, credit issues associated with sub-prime mortgages and
municipal bond insurers caused the postponement of the Fund's preferred shares
offering, and subsequent failed auctions of the preferred shares issued by other
closed-end funds have extended that postponement indefinitely. Consequently, the
Fund overdrew its bank account with the custodian bank. Management has
determined that leveraging the Fund with taxable debt such as a bank loan would
be advantageous to Fund shareholders and has secured a commitment to obtain
long-term financing to replace the bank overdraft. The Fund's cash account
continues to be overdrawn at April 30, 2008, in anticipation of the loan closing
in the near term. Management believes that the bank overdraft with the custodian
should be viewed as a Borrowing from Custodian much like a formal bank loan and
has reclassified it accordingly on the Statement of Assets & Liabilities. In
addition, the Fund has reclassified its custodian overdraft charges related to
this balance during this period to "Interest expense on borrowings from
custodian" on the Statement of Operations. Overdraft charges are calculated at
the Federal Funds Rate plus .15%, which is the same rate to be paid on the
prospective long-term financing. For the period November 15, 2007 (commencement
of operations) through April 30, 2008, the average daily balance outstanding on
such Borrowings from Custodian and weighted average interest rate for the Fund
were $29,839,790 and 3.61%, respectively.
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.
91
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
2. FUND SHARES
On July 10, 2007, the Board of Directors of Premium Income (NPF), approved an
open-market share repurchase program, as part of a broad, ongoing effort
designed to support the market prices of the Fund's Common shares. Under the
terms of the program, the Fund may repurchase up to 10% of its outstanding
Common shares.
Transactions in Common shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) QUALITY INCOME (NQU)
------------------------ ----------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 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)
------------------------ ------------------------ ---------------------------
SIX MONTHS SIX MONTHS FOR THE PERIOD 11/15/07
ENDED YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
4/30/08 10/31/07 4/30/08 10/31/07 THROUGH 4/30/08
---------------------------------------------------------------------------------------------------------------------
Common shares:
Sold -- -- -- -- 15,750,000
Sold through shelf offering -- -- 297,054 197,111 --
Issued to shareholders due
to reinvestment of distributions -- -- 21,277 44,002 39,696
Repurchased (4,500) (182,300) -- -- --
---------------------------------------------------------------------------------------------------------------------
(4,500) (182,300) 318,331 241,113 15,789,696
=====================================================================================================================
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% --
=====================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 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 $20,889,517 $40,901,532 $61,116,103 $22,239,396 $34,586,680 $287,154,369
Sales and maturities 33,015,116 54,583,026 68,193,638 37,830,474 49,165,462 32,059,936
====================================================================================================================
* For the period November 15, 2007 (commencement of operations) through April
30, 2008.
92
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 April 30, 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 $787,102,742 $740,440,855 $1,179,144,986 $432,448,255 $482,257,071 $253,669,988
====================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 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 $ 36,069,715 $ 30,804,397 $ 65,757,957 $16,562,244 $ 15,069,491 $ 308,356
Depreciation (17,064,753) (14,133,441) (17,696,613) (8,700,149) (26,848,379) (12,565,809)
----------------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation (depreciation)
of investments $ 19,004,962 $ 16,670,956 $ 48,061,344 $ 7,862,095 $(11,778,888) $(12,257,453)
======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2007, the Funds' last tax year
end, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,813,319 $1,897,389 $2,245,512 $458,294 $ 794,702
Undistributed net ordinary income ** 203,237 797 -- 10,401 82,621
Undistributed net long-term capital gains -- -- -- -- 2,667,895
==================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2007, paid on November 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2007, was designated for purposes of the dividends paid deduction as
follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(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
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
93
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
At October 31, 2007, 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:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
--------------------------------------------------------------------------------
Expiration:
October 31, 2011 $ -- $ -- $11,423,918 $ --
October 31, 2012 -- -- -- --
October 31, 2013 -- -- -- 156,324
October 31, 2014 379,755 1,047,056 -- --
--------------------------------------------------------------------------------
Total $379,755 $1,047,056 $11,423,918 $156,324
================================================================================
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.
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)
AVERAGE DAILY NET ASSETS QUALITY INCOME (NQU)
(INCLUDING NET ASSETS PREMIER INCOME (NPF)
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
================================================================================
AVERAGE DAILY NET ASSETS HIGH INCOME OPPORTUNITY (NMZ)
(INCLUDING NET ASSETS HIGH INCOME OPPORTUNITY FUND 2 (NMD)
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
================================================================================
94
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2008, the complex-level fee rate was .1855%.
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 Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first eight years of High Income Opportunity's (NMZ) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2003* .32% 2009 .24%
2004 .32 2010 .16
2005 .32 2011 .08
2006 .32
2007 .32
2008 .32
================================================================================
* From the commencement of operations.
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.
As of April 30, 2008 and October 31, 2007, Nuveen Investments, LLC received
commissions of $24,212 and $17,981, respectively, related to the sale of common
shares as a result of the High Income Opportunity (NMZ) shelf offering.
95
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting
Standards 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 April 30, 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
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 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.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 2, 2008, to shareholders of record on
May 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 $.0645 $.0670 $.0605 $.0560 $.0815 $.0785
====================================================================================================================
Auction Rate Preferred Shares (ARPS)
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as inverse floating rate securities or
inverse floaters, to refinance a portion of the funds' outstanding ARPS, whose
auctions have been failing for several months, including an initial phase of
approximately $1 billion in forty-one funds. Of this amount, Nuveen expects that
approximately $560 million in ARPS redemption notices will be issued within
shortly for thirteen funds, including Investment Quality (NQM), Quality Income
(NQU) and Premier Income (NPF).
96
Financial
HIGHLIGHTS (Unaudited)
97
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
INVESTMENT QUALITY (NQM)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $15.03 $ .51 $(.55) $(.15) $ -- $ (.19) $ (.39) $ -- $ (.39)
2007 15.71 1.02 (.60) (.30) -- .12 (.80) -- (.80)
2006 15.49 1.05 .42 (.24) (.03) 1.20 (.84) (.14) (.98)
2005 16.06 1.05 (.39) (.16) (.01) .49 (.96) (.10) (1.06)
2004 15.65 1.07 .43 (.08) -- 1.42 (1.01) -- (1.01)
2003 15.63 1.11 .02 (.08) -- 1.05 (1.01) (.02) (1.03)
SELECT QUALITY (NQS)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 15.05 .54 (.65) (.15) -- (.26) (.40) -- (.40)
2007 15.62 1.07 (.52) (.29) -- .26 (.83) -- (.83)
2006 15.46 1.07 .23 (.26) -- 1.04 (.88) -- (.88)
2005 15.69 1.06 (.16) (.16) -- .74 (.97) -- (.97)
2004 15.33 1.09 .42 (.07) (.01) 1.43 (1.00) (.07) (1.07)
2003 15.00 1.08 .30 (.07) -- 1.31 (.98) -- (.98)
===============================================================================================================================
Total Returns
---------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
===================================================================================
INVESTMENT QUALITY (NQM)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ -- $14.45 $13.71 1.60% (1.25)%
2007 -- 15.03 13.88 (6.17) .82
2006 -- 15.71 15.60 15.33 8.09
2005 -- 15.49 14.45 1.17 3.10
2004 -- 16.06 15.33 8.54 9.37
2003 -- 15.65 15.10 7.78 6.88
SELECT QUALITY (NQS)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) -- 14.39 14.26 (2.18) (1.71)
2007 -- 15.05 15.00 2.31 1.70
2006 -- 15.62 15.47 10.47 6.94
2005 -- 15.46 14.83 4.14 4.77
2004 -- 15.69 15.19 10.19 9.64
2003 -- 15.33 14.81 9.91 8.96
===================================================================================
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(b) $517,704 1.33%*** 1.21%*** 6.97%*** 1.31%*** 1.19%*** 6.99%*** 3%
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
2003 559,644 1.22 1.22 7.05 1.22 1.22 7.05 5
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 489,646 1.25*** 1.21*** 7.34*** 1.22*** 1.18*** 7.37*** 5
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
2003 519,361 1.26 1.26 7.06 1.25 1.25 7.06 9
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period 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
================================================================================
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $301,000 $25,000 $67,999 $24,930 $ 33,840
2007 301,000 25,000 69,706 21,105 40,766
2006 301,000 25,000 71,634 -- --
2005 301,000 25,000 71,001 -- --
2004 301,000 25,000 72,688 -- --
2003 301,000 25,000 71,482 -- --
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 279,000 25,000 68,875 7,500 103,486
2007 279,000 25,000 70,849 6,665 119,630
2006 279,000 25,000 72,491 -- --
2005 279,000 25,000 71,953 -- --
2004 279,000 25,000 72,643 -- --
2003 279,000 25,000 71,538 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, 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 the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
98-99 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
QUALITY INCOME (NQU)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $14.94 $ .52 $(.33) $(.15) $ -- $ .04 $(.36) $ -- $( .36)
2007 15.49 1.01 (.51) (.30) -- .20 (.75) -- (.75)
2006 15.26 1.01 .30 (.26) -- 1.05 (.82) -- (.82)
2005 15.54 1.02 (.22) (.16) -- .64 (.92) -- (.92)
2004 15.04 1.04 .51 (.08) -- 1.47 (.97) -- (.97)
2003 14.70 1.06 .34 (.07) -- 1.33 (.96) (.03) (.99)
PREMIER INCOME (NPF)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 14.79 .49 (.73) (.15) -- (.39) (.34) -- (.34)
2007 15.39 .95 (.59) (.29) -- .07 (.67) -- (.67)
2006 14.90 .94 .51 (.26) -- 1.19 (.70) -- (.70)
2005 15.53 .94 (.39) (.16) (.01) .38 (.88) (.13) (1.01)
2004 15.13 1.00 .47 (.08) -- 1.39 (.99) -- (.99)
2003 15.23 1.06 (.01) (.07) (.01) .97 (.98) (.09) (1.07)
===============================================================================================================================
Total Returns
---------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
===================================================================================
QUALITY INCOME (NQU)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ -- $14.62 $13.47 1.40% .31%
2007 -- 14.94 13.64 (2.54) 1.31
2006 -- 15.49 14.73 8.55 7.07
2005 -- 15.26 14.34 4.78 4.15
2004 -- 15.54 14.58 8.76 10.07
2003 -- 15.04 14.33 9.31 9.37
PREMIER INCOME (NPF)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) -- 14.06 12.86 (.76) (2.65)
2007 -- 14.79 13.30 2.28 .48
2006 -- 15.39 13.65 5.93 8.20
2005 -- 14.90 13.57 1.05 2.49
2004 -- 15.53 14.43 4.75 9.48
2003 -- 15.13 14.74 9.13 6.57
===================================================================================
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(b) $792,663 1.37%*** 1.19%*** 7.01%*** 1.35%*** 1.17%*** 7.02%*** 5%
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
2003 815,270 1.21 1.21 7.12 1.21 1.21 7.13 9
PREMIER INCOME (NPF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 279,886 1.79*** 1.25*** 6.78*** 1.77*** 1.23*** 6.79*** 4
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
2003 304,048 1.24 1.24 6.91 1.23 1.23 6.91 19
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period 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
================================================================================
QUALITY INCOME (NQU)
--------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $452,000 $25,000 $68,842 $72,960 $18,060
2007 452,000 25,000 69,806 48,875 26,823
2006 452,000 25,000 71,446 -- --
2005 452,000 25,000 70,745 -- --
2004 452,000 25,000 71,576 -- --
2003 452,000 25,000 70,092 -- --
PREMIER INCOME (NPF)
--------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 165,000 25,000 67,407 62,108 8,163
2007 165,000 25,000 69,603 47,355 10,701
2006 165,000 25,000 71,839 -- --
2005 165,000 25,000 70,367 -- --
2004 165,000 25,000 72,271 -- --
2003 165,000 25,000 71,068 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, 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 the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
100-101 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
HIGH INCOME OPPORTUNITY (NMZ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $15.36 $ .64 $(1.52) $(.11) $(.02) $(1.01) $ (.49) $(.09) $ (.58)
2007 16.00 1.23 (.65) (.24) --*** .34 (.98) --*** (.98)
2006 15.36 1.21 .65 (.19) -- 1.67 (1.04) -- (1.04)
2005 14.87 1.22 .54 (.13) (.01) 1.62 (1.07) (.06) (1.13)
2004(c) 14.33 .98 .71 (.08) -- 1.61 (.89) -- (.89)
HIGH INCOME OPPORTUNITY 2 (NMD)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(d) 14.33 .41 (.81) -- -- (.40) (.31) -- (.31)
===============================================================================================================================
Total Returns
---------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
====================================================================================
HIGH INCOME
OPPORTUNITY (NMZ)
------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ -- $13.77 $15.50 1.90% (6.66)%
2007 -- 15.36 15.82 (2.68) 2.14
2006 .01 16.00 17.25 14.79 11.34
2005 -- 15.36 15.99 14.35 11.20
2004(c) (.18) 14.87 15.04 6.49 10.38
HIGH INCOME
OPPORTUNITY 2 (NMD)
------------------------------------------------------------------------------------
Year Ended 10/31:
2008(d) (.03) 13.59 14.55 (.77) (2.90)
====================================================================================
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
====================================================================================================================================
HIGH INCOME OPPORTUNITY (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $328,504 1.66%**** 1.32%**** 8.46%**** 1.20%**** .85%**** 8.92%**** 6%
2007 361,484 1.50 1.28 7.31 1.04 .82 7.77 12
2006 372,700 1.21 1.21 7.31 .75 .75 7.77 9
2005 357,025 1.20 1.20 7.54 .74 .74 8.00 6
2004(c) 345,023 1.15* 1.15* 6.75* .70* .70* 7.20* 52
HIGH INCOME OPPORTUNITY 2 (NMD)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(d) 214,608 1.22**** 1.01**** 6.06**** .61**** .39**** 6.67**** 16
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period 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(b) $155,000 $25,000 $77,894 $44,370 $11,897
2007 155,000 25,000 83,304 32,995 16,653
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 27,000 8,948
================================================================================
N/A Fund did not issue Preferred shares during the period November 15, 2007
(commencement of operations) through April 30, 2008.
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Distributions from Capital Gains to Preferred Shareholders and Capital
Gains to Common Shareholders round to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
(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 April
30, 2008.
See accompanying notes to financial statements.
102-103 spread
Annual Investment
Management Agreement
APPROVAL PROCESS
The Board Members are responsible for approving the advisory arrangement for the
Nuveen Municipal High Income Opportunity Fund 2 (the "Fund"). At a meeting held
on October 16, 2007 (the "Meeting"), the Board Members, including the
Independent Board Members, unanimously approved an investment management
agreement (the "Investment Management Agreement") between the Fund and Nuveen
Asset Management ("NAM"). Earlier in the year, the Board Members were advised
of, and in connection with the approval and renewal of investment advisory
arrangements for other Nuveen funds had taken into account, the potential
acquisition of Nuveen Investments, Inc. ("Nuveen") by Windy City Investments,
Inc., a corporation formed by investors led by Madison Dearborn Partners, LLC
("MDP"), a private equity investment firm (the "Transaction"). If the Fund had
been launched before the closing of the Transaction, the Investment Management
Agreement would have automatically terminated upon the closing of the
Transaction. Accordingly, in case the Investment Management Agreement was
entered into prior to the closing of the Transaction, the Board Members,
including the Independent Board Members, also unanimously approved a new
investment management agreement between the Fund and NAM (the "New Investment
Management Agreement") to take effect upon the closing of the Transaction.
To assist the Board in its evaluation of an advisory contract with NAM at the
Meeting, the Independent Board Members previously had received, in adequate time
in advance of the Meeting or at prior meetings, materials which outlined, among
other things:
[] the services currently provided by NAM to other Nuveen funds and expected
to be provided to the Fund;
[] the organization of NAM, including the responsibilities of various
departments and key personnel;
[] the expertise and background of NAM with respect to the Fund's investment
strategy;
[] the performance records of NAM and of a similar Nuveen fund (as described
below);
[] the profitability of Nuveen (which incorporated Nuveen's wholly-owned
subsidiaries);
[] the proposed management fees of NAM, including comparisons of such fees
with the management fees of comparable, unaffiliated funds, as well as
comparable, affiliated funds, if any;
[] the advisory fees NAM assesses to other types of investment products or
clients;
[] the soft dollar practices of NAM, if any; and
[] the expected expenses of the Fund, including comparisons of the Fund's
expected expense ratio with the expense ratios of comparable, unaffiliated
funds, as well as comparable, affiliated funds, if any.
In addition, in light of the impending Transaction, the Board Members were aware
of and considered the impact of the Transaction on the provision of services by
NAM and its affiliates on behalf of the Fund. During the Meeting, the
Independent Board Members met privately with their legal counsel to review the
Board's duties under the Investment Company Act of 1940 (the "1940 Act"), the
general principles of state law in reviewing and approving advisory contracts,
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered in voting on
advisory contracts. It is with this background that the Board Members considered
the advisory agreement with NAM for the Fund. As outlined in more detail below,
the Board Members considered all factors they believed relevant with respect to
the Fund, including the impact that the Transaction could be expected to have on
the following: (a) the nature, extent and quality of the services to be provided
by NAM; (b) investment performance, as described below; (c) the profitability of
Nuveen and its affiliates; (d) the extent to which economies of scale would be
realized; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
104
A. NATURE, EXTENT AND QUALITY OF SERVICES
The Board Members considered the nature, extent and quality of NAM's services.
As NAM already serves as adviser to other Nuveen funds overseen by the Board
Members, the Board has a good understanding of NAM's organization, operations
and personnel. In this regard, the Board Members are familiar with and have
evaluated the professional experience, qualifications and credentials of NAM's
personnel.
At the Meeting and at prior meetings of the Board, including the meeting of the
Board held on May 21, 2007 to conduct the Board's annual review of advisory
contracts (the "May Meeting"), the Board Members reviewed materials outlining,
among other things, Nuveen's organization and business; the types of services
that NAM or its affiliates provide to the Nuveen funds; and NAM's experience
with the applicable investment strategy. Given the Board Members' experience
with Nuveen funds advised by NAM, the Board Members recognized and considered
the quality of its investment process in making portfolio management decisions.
In addition to advisory services, the Independent Board Members considered the
quality of any administrative or non-advisory services to be provided. In this
regard, NAM is expected to provide the Fund with such administrative and other
services (exclusive of, and in addition to, any such services provided by others
for the Fund) and officers and other personnel as are necessary for the
operations of the Fund. In addition to investment management services, NAM and
its affiliates will provide the Fund with a wide range of services, including,
among other things: product management; preparing shareholder reports; providing
daily accounting; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the Board
materials for such meetings; providing legal support (such as helping to prepare
registration statements, amendments thereto and proxy statements and responding
to regulatory inquiries); and performing other fund administrative tasks
necessary for the operation of the Fund (such as tax reporting and fulfilling
regulatory filing requirements, compliance functions and monitoring and
overseeing any sub-adviser).
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members have 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 shareholder communications;
[] providing advertising for the Nuveen closed-end funds;
[] maintaining its closed-end fund website;
[] maintaining continual contact with financial advisers;
[] providing educational symposia;
[] conducting research with investors and financial analysis regarding
closed-end funds; and
[] evaluating secondary market performance.
If the Fund utilizes leverage through the issuance of preferred shares, the
Board Members have noted Nuveen's continued support for the holders of preferred
shares of its closed-end funds by, among other things:
[] maintaining an in-house trading desk;
[] maintaining a product manager for preferred shares;
[] managing leverage and risk management of leverage; and
[] maintaining systems necessary to test compliance with rating agency
criteria.
In light of the Transaction, the Board Members also considered the nature,
quality and extent of the services expected to be provided by NAM under the New
Investment Management Agreement. More specifically, the Independent Board
Members considered, among other things, the expected impact, if any, of the
Transaction on the operations, facilities, organization and personnel of NAM;
the potential implications of regulatory restrictions on the Fund following the
Transaction; the ability of NAM and its affiliates to perform their duties after
the Transaction; and any anticipated changes to the investment and other
practices of the Fund.
105
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
The Board noted that the terms of the New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Investment Management Agreement. The Board considered that the services to
be provided and the standard of care under the New Investment Management
Agreement are the same as those under the Investment Management Agreement. The
Board Members further noted that key personnel of NAM who will have
responsibility for the Fund in each area, including portfolio management,
investment oversight, fund management, fund operations, product management,
legal/compliance and board support functions, are expected to be the same
following the Transaction. The Board also considered certain information
regarding any anticipated retention or incentive plans designed to retain key
personnel. Further, the Board Members noted that no changes to Nuveen's
infrastructure or operations as a result of the Transaction were anticipated
other than potential enhancements as a result of an expected increase in the
level of investment in such infrastructure and personnel. The Board noted MDP's
previous representations that it does not plan to have a direct role in the
management of Nuveen, appointing new management personnel, or directly impacting
individual staffing decisions. The Board Members also noted that there were not
any planned "cost cutting" measures that could be expected to reduce the nature,
extent or quality of services. After consideration of the foregoing, the Board
Members concluded that no diminution in the nature, quality and extent of
services provided to the Fund by NAM is expected.
In addition to the above, the Board Members considered potential changes in the
expected operations of the Fund. In this regard, the Board Members considered
the potential effect of regulatory restrictions on the Fund's transactions with
future affiliated persons. During their deliberations at meetings held earlier
during the year, it was noted that, after the Transaction, a subsidiary of
Merrill Lynch is expected to have an ownership interest in Nuveen at a level
that will make Merrill Lynch an affiliated person of Nuveen. The Board Members
have recognized that applicable law would generally prohibit the Nuveen funds
from engaging in securities transactions with Merrill Lynch as principal, and
would also impose restrictions on using Merrill Lynch for agency transactions.
They also recognized that having MDP and Merrill Lynch as affiliates may
restrict the Nuveen funds' ability to invest in securities of issuers controlled
by MDP or issued by Merrill Lynch and its affiliates even if not bought directly
from MDP or Merrill Lynch as principal. They further recognized that various
regulations may require the Nuveen funds to apply investment limitations on a
combined basis with affiliates of Merrill Lynch. The Board Members also had
considered information provided by NAM regarding the potential impact on the
Nuveen funds' operations as a result of these regulatory restrictions. In
addition to the regulatory restrictions considered by the Board, the Board
Members were aware of and had considered potential conflicts of interest that
could arise between the Nuveen funds and various parties to the Transaction.
Based on its review, and taking into account considerations from prior meetings,
the Board concluded that the Transaction was not expected to adversely affect
the nature, quality or extent of services expected to be provided by NAM and
that the expected nature, quality and extent of such services, before and after
the Transaction, were satisfactory and supported approval of the Investment
Management Agreement and the New Investment Management Agreement.
B. INVESTMENT PERFORMANCE
The Fund is new and therefore did not have its own performance history. However,
the Board Members were provided with certain performance information for the
one-year, three-year and five-year periods ending June 30, 2007 for a Nuveen
fund managed by the same team responsible for the Fund that has a similar
structure and investment strategy.
The Board Members are also familiar with NAM's performance record on other
Nuveen funds. With respect to performance, the Board also considered that the
portfolio management personnel responsible for the management of the Fund's
portfolio were expected to continue to manage the portfolio following the
completion of the Transaction.
106
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that the Fund was expected
to bear, the Board Members considered, among other things, the Fund's
proposed management fee structure and its expected expense ratios in
absolute terms as well as compared with the fees and expense ratios of
comparable, unaffiliated funds and comparable, affiliated funds (if any).
In this regard, the Board Members also considered the fund-level breakpoint
schedule and the complex-wide breakpoint schedule. The complex-wide
breakpoint schedule was instituted in 2004 and is described in further
detail below in Section D entitled "Economies of Scale and Whether Fee
Levels Reflect These Economies of Scale."
With respect to the New Investment Management Agreement, the Board Members
noted that the fee schedule is identical to that of the Investment
Management Agreement. Based on the information provided, the Board Members
did not expect overall Fund expenses would increase as a result of the
Transaction.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
Due to their experience with other Nuveen funds, the Board Members were
familiar with the fees NAM assesses to other clients of Nuveen or its
affiliates, including separately managed accounts. With respect to
separately managed accounts, the advisory fees charged to such separately
managed accounts are generally lower than those charged to comparable
funds. The Board Members have recognized, however, the additional services
that are provided (as described above) and the costs incurred by Nuveen in
managing and operating registered investment companies compared to
individually managed separate accounts. These services are generally not
required to the same extent, if at all, for separate accounts. Accordingly,
the Board Members have noted that the nature and number of services
provided to operate a fund merit the higher fees than those assessed to the
separately managed accounts.
3. PROFITABILITY
In conjunction with its review of fees, the Board Members have considered
the profitability of Nuveen for advisory activities (which incorporated
Nuveen's wholly-owned subsidiaries). At the Meeting or prior meetings, the
Board Members reviewed Nuveen's revenues, expenses and profitability
margins for advisory activities (on both a pre-tax and after-tax basis). At
the May Meeting, the Board Members reviewed data comparing Nuveen's
profitability with other investment management companies prepared by three
independent third party service providers as well as comparisons of the
revenues, expenses and profit margins of various unaffiliated management
firms with similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the inherent
limitations in determining profitability as well as the difficulty in
comparing the profitability of other unaffiliated advisers. The Board
Members recognized the subjective nature of determining profitability which
may be affected by numerous factors, including the allocation of expenses.
Further, the Board Members have noted 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 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. The Board
Members further received the 2006 Annual Report for Nuveen Investments as
well as its quarterly report ending June 30, 2007. As noted below, the
Board Members also recognized the recent changes to the complex-wide fee
breakpoint schedule that went into effect August 20, 2007. The Board
Members further noted that it is difficult to predict with any degree of
certainty the impact of the Transaction on Nuveen's profitability for its
advisory services (which includes its affiliated sub-advisers). Based on
their review, the Board Members were satisfied that the level of
profitability was reasonable in light of the services to be provided.
In evaluating the reasonableness of the compensation, the Board Members
also considered any other revenues paid to NAM as well as any indirect
benefits (such as soft dollar arrangements, if any) NAM and its affiliates
are expected to receive that are directly attributable to their management
of the Fund, if any. See Section E below for additional information. Based
on their review of the overall fee arrangements of the Fund, the Board
Members determined that the advisory fees and expected expenses of the Fund
were reasonable.
107
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 Board Members have recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. To help ensure that shareholders share in these benefits, the Board
Members received and considered the breakpoints in the advisory fee schedules
that reduce advisory fees. In addition to advisory fee breakpoints, the Board
had also approved a complex-wide fee arrangement that was introduced on August
1, 2004 and modified in August 2007 to generate additional fee savings. Pursuant
to the complex-wide fee arrangement, the fees of the funds in the Nuveen
complex, including the Fund, are reduced as the assets in the fund complex reach
certain levels. Based on their review, the Board Members concluded that the
applicable breakpoint schedules and complex-wide fee arrangement were acceptable
and desirable in providing benefits from economies of scale to shareholders of
the Fund.
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
the Fund. In this regard, the Board Members considered any benefits from soft
dollar arrangements. The Board Members noted that NAM does not currently have
any soft dollar arrangements; however, to the extent certain bona fide agency
transactions that occur on markets that traditionally trade on a principal basis
and riskless principal transactions are considered as generating "commissions,"
NAM intends to comply with the applicable safe harbor provisions. The Board
Members also recognized that affiliates of NAM receive revenues for serving as
agent at Nuveen's preferred trading desk and for serving as co-manager in the
initial public offering of new closed-end exchange-traded funds.
With respect to the Transaction, the Board Members also recognized that as the
policies and operations of NAM are not anticipated to change significantly after
the Transaction, such indirect benefits should remain after the Transaction. The
Board Members further considered any additional indirect benefits to be received
by NAM or its affiliates after the Transaction. The Board Members noted that
other than benefits from its ownership interest in Nuveen and indirect benefits
from fee revenues paid by the Nuveen funds under the management agreements and
other Board-approved relationships, it was not expected that MDP or its
affiliates would derive any benefit from the Nuveen funds as a result of the
Transaction or transact any business with or on behalf of the Nuveen funds
(other than perhaps potential Nuveen fund acquisitions, in secondary market
transactions, of securities issued by MDP portfolio companies); or that Merrill
Lynch or its affiliates would derive any benefits from the Nuveen funds as a
result of the Transaction (noting that, indeed, Merrill Lynch would stand to
experience the discontinuation of principal transaction activity with the Nuveen
funds and likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following:
[] Nuveen would rely on the provisions of Section 15(f) of the 1940 Act.
Section 15(f) provides, in substance, that when a sale of a controlling
interest in an investment adviser occurs, the investment adviser or any of
its affiliated persons may receive any amount or benefit in connection with
the sale so long as (i) during the three-year period following the
consummation of a transaction, at least 75% of the investment company's
board of directors must not be "interested persons" (as defined in the 1940
Act) of the investment adviser or predecessor adviser and (ii) an "unfair
burden" (as defined in the 1940 Act, including any interpretations or
no-action letters of the Securities and Exchange Commission) must not be
imposed on the investment company as a result of the transaction relating
to the sale of such interest, or any express or implied terms, conditions
or understanding applicable thereto. In this regard, to help ensure that an
unfair burden is not imposed on the Nuveen funds, Nuveen has committed for
a period of two years from the date of the closing of the Transaction (i)
not to increase gross management fees for any Nuveen fund; (ii) not to
reduce voluntary expense reimbursement levels for any Nuveen fund from
their currently scheduled prospective levels during that period; (iii) that
no Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use
Merrill Lynch as a broker with respect to portfolio
108
transactions done on an agency basis, except as may be approved in the future by
the Compliance Committee of the Board; and (iv) that NAM shall not cause the
Fund and other municipal funds that NAM manages, as a whole, to enter into
portfolio transactions with or through the other minority owners of Nuveen, on
either a principal or an agency basis, to a significantly greater extent than
both what one would expect an investment team to use such firm in the normal
course of business, and what NAM has historically done, without prior Board or
Compliance Committee approval (excluding the impact of proportionally increasing
the use of such other "minority owners" to fill the void necessitated by not
being able to use Merrill Lynch).
[] The reputation, financial strength and resources of MDP.
[] The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
[] The benefits to the Nuveen funds as a result of the Transaction including:
(i) as a private company, Nuveen may have more flexibility in making
additional investments in its business; (ii) as a private company, Nuveen
may be better able to structure compensation packages to attract and retain
talented personnel; (iii) as certain of Nuveen's distribution partners are
expected to be equity or debt investors in Nuveen, Nuveen may be able to
take advantage of new or enhanced distribution arrangements with such
partners; and (iv) MDP's experience, capabilities and resources that may
help Nuveen identify and acquire investment teams or firms and finance such
acquisitions.
G. APPROVAL
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including a majority of the
Independent Board Members, concluded that the terms of the Investment Management
Agreement and New Investment Management Agreement were fair and reasonable, that
NAM's fees are reasonable in light of the services to be provided to the Fund
and that the Investment Management Agreement and New Investment Management
Agreement should be and were approved on behalf of the Fund.
109
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.
110
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.
111
NOTES
112
NOTES
113
Glossary of
TERMS USED in this REPORT
[] 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.
[] AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the investment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
[] AVERAGE EFFECTIVE MATURITY: The average of 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.
[] 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.
[] 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. Modified duration is a formula that expresses the
measurable change in the value of a security in response to a change in
interest rates.
[] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
[] NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of shares outstanding. Fund NAVs are
calculated at the end of each business day.
[] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
[] 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.
114
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, 2007, 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
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. During the
period covered by this report, NPF repurchased 4,500 common shares. Any future
repurchases will be reported to shareholders in the next annual or semi-annual
report.
115
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $153 billion in assets, as of March 31, 2008, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
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ESA-C-0408D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Municipal High Income Opportunity Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: July 9, 2008
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2008
-------------------------------------------------------------------