UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09135
---------------------
Nuveen New York Dividend Advantage Municipal Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: September 30
------------------
Date of reporting period: September 30, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT September 30, 2006
Nuveen Investments
Municipal Closed-End Funds
NUVEEN NEW YORK
MUNICIPAL VALUE
FUND, INC.
NNY
NUVEEN NEW YORK
PERFORMANCE PLUS
MUNICIPAL FUND, INC.
NNP
NUVEEN NEW YORK
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NAN
NUVEEN NEW YORK
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NXK
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Woman
Photo of: Man and child
NOW YOU CAN RECEIVE YOUR
NUVEEN FUND REPORTS FASTER.
NO MORE WAITING.
SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL.
It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready -- no
more waiting for delivery by regular mail. Just click on the link within the
e-mail to see the report, and save it on your computer if you wish.
---------------------------
DELIVERY DIRECT TO
YOUR E-MAIL INBOX
---------------------------
IT'S FAST, EASY & FREE:
WWW.INVESTORDELIVERY.COM
if you get your Nuveen Fund dividends
and statements from your financial
advisor or brokerage account.
OR
WWW.NUVEEN.COM/ACCOUNTACCESS
if you get your Nuveen Fund dividends
and statements directly from Nuveen.
(Be sure to have the address sheet that
accompanied this report handy. You'll need
it to complete the enrollment process.)
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the twelve-month period
covered by this report your Fund continued to provide you with attractive
monthly tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 16, 2006
Nuveen Investments New York Municipal Closed-End Funds
(NNY, NNP, NAN, NXK)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves discusses economic and municipal market
conditions at both the national and state levels, key investment strategies, and
the annual performance of these four New York Funds. Cathryn, who joined Nuveen
in 1996, assumed portfolio management responsibility for the New York Funds in
July 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED SEPTEMBER 30, 2006?
In response to market concerns about oil prices, inflation, and the actions of
the Federal Reserve over the past 12 months, bond yields exhibited some
volatility during this reporting period, with longer-term rates peaking in
October 2005 and again in June 2006. For the period as a whole, interest rates
at the shorter end of the yield curve generally continued to rise, while various
longer rates posted smaller increases and even declined. As short-term rates
approached and exceeded the levels of long-term rates, the taxable yield curve
became increasingly flat and subsequently inverted. Consequently, bonds with
longer durations1 generally outperformed those with shorter durations during
this period.
Between October 1, 2005 and July 31, 2006, the Federal Reserve announced
increases in the fed funds rate at six consecutive Open Market Committee
meetings, before leaving monetary policy unchanged at the August and September
2006 sessions. These six increases of 0.25% each raised the short-term target by
150 basis points, from 3.75% to 5.25%, its highest level since March 2001.
During this same period, the yield on the benchmark 10-year U.S. Treasury note
rose just 30 basis points to end September 2006 at 4.63%. By contrast, in the
municipal market, the yield on the Bond Buyer 25 Revenue Bond Index, a widely
followed measure of longer-term municipal market rates, stood at 4.77% at the
end of September 2006, down 27 basis points from the end of September 2005.
Economic growth over the past year reflected the fluctuations in interest rates,
energy prices, and the effects of a softening housing market. After expanding at
a rate of 1.8% in the fourth quarter of 2005, the U.S. gross domestic product
(GDP) rebounded sharply to expand 5.6% in the first quarter of 2006 before
moderating to a 2.6% expansion in the second quarter of 2006 (all GDP numbers
annualized, year over year). In the third quarter of 2006, GDP growth recorded a
weaker-than-expected 1.6% expansion, with the deceleration largely the result of
a 17% slump in residential investment, although consumer spending remained
relatively solid. Despite slower growth, the markets continued to keep a close
eye on inflation trends. While the year-over-year increase in the Consumer Price
Index registered a relatively benign 2.1% in September 2006, the core
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.
4
rate (which excludes food and energy prices) rose 2.9% over the same period, the
largest increase in 10 years. In general, the jobs picture remained positive,
with national unemployment at 4.6% in September 2006, down from 5.1% in
September 2005.
Over the 12 months ended September 2006, municipal bond issuance nationwide
totaled $368.2 billion, down 9% from the previous 12 months. This total
reflected the general decrease in the supply of municipal paper during 2006.
After reaching record levels in calendar year 2005, municipal supply declined
during the first nine months of 2006, with $261.6 billion in new securities
coming to market, off 16% from the same period in 2005. A major factor in 2006's
drop was the sharp reduction in pre-refunding volume, which fell more than 54%
from last year's levels, as rising interest rates made advance refundings less
economically attractive. Overall, demand for municipal bonds, especially those
offering higher yields, continued to be strong and broad-based, with retail
investors, property and casualty insurance companies, and hedge funds all
participating in the market.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW YORK DURING
THIS PERIOD?
New York ranked as the 25th fastest growing state economy in the nation in 2005,
led by the financial, professional and business, and educational and health
sectors. Despite New York's increased economic diversity, the financial services
industry continued to be the key driver of the state's economy, representing 4%
of the total number of jobs but 20% of the wages in the state. While tourism
returned to pre-9/11 levels, the continued loss of manufacturing jobs,
especially in upstate New York, meant that economic recovery was largely
centered around New York City and its suburbs. As of September 2006, the
unemployment rate in the state was 4.4%, down from 5.1% in September 2005 and
the lowest since March 2001. New York's population trends, which have lagged the
nation for years, remained weak, with growth of less than 2% over the past five
years.
Following several years of deficits and delays in budget enactment, New York's
financial condition has shown gradual improvement. For fiscal 2006, the state
erased the general fund's negative balance to end the year $384 million in the
black. The $113.6 billion budget for fiscal 2007 was adopted on March 31, 2006,
the second year in a row that New York passed its budget by the legally required
April 1 deadline. This budget took some steps toward funding a 2005 mandate
requiring New York City schools to guarantee a basic education for its children,
with increased school aid of $1.3 billion and $1.8 billion in new school
construction aid. The budget also authorized New York City's Transitional
Finance Authority to issue $9.4 billion in bonds for school construction. In
general, New
5
York's revenues remain vulnerable to Wall Street cycles, with 51% of the state's
general fund receipts generated by personal income taxes, which are heavily
dependent on high-paying jobs in the financial sector as well as securities
prices and capital gains. The state continued to face forecasted budget deficits
in fiscal 2008 ($3.2 billion) and 2009 ($5.4 billion).
In December 2005, Moody's upgraded its rating on New York general obligation
bonds to Aa3 from A1, citing improving financial operations. This rating was
reconfirmed in March 2006, as was Standard & Poor's rating of AA. For the 12
months ended September 30, 2006, municipal issuance in New York totaled $34.6
billion, down 26% from the previous 12 months. During the first nine months of
2006, New York supply declined even more sharply, falling 37% from that of
January-September 2005, to $20.5 billion. While New York remained the second
largest state issuer in the nation for the 12-month period, the state slipped to
fourth for the year-to-date. According to Moody's, the state's tax-supported
debt has grown 37% since 2001, ranking New York second in the nation behind
California on this measure. In terms of debt per capita and debt as a percentage
of personal income, New York ranks fifth.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW YORK FUNDS DURING THIS REPORTING
PERIOD?
As the municipal yield curve flattened over this 12-month period, we continued
to emphasize careful management of the Funds' underlying portfolios in line with
our established targets. This included a disciplined approach to duration
management and yield curve positioning. Over this period, two factors caused the
durations of these New York Funds to shorten more quickly than that of the
general market as a whole. First, with the flattening of the yield curve, we saw
a major acceleration in advance refunding2 activity during the first part of
this period. While these pre-refundings benefited the Funds' performance, they
also had a shortening effect on the Funds' durations. The second factor was the
natural tendency of a bond's duration to shorten as time passes. During the
second part of this period, we took a proactive approach to mitigating the
potential interest rate risk associated with these changes in duration. (While
interest rate risk is typically associated with longer durations, a fund's price
performance can also be hampered if the fund's duration is too short during a
period when the market rallies.)
Because interest rates at the longer end of the yield curve remained relatively
low and even declined over this period, we believed the most prudent approach to
maintaining the Funds' durations within our preferred strategic range while
continuing to support
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.
6
their income was the use of forward interest rate swaps, a type of derivative
financial instrument. As discussed in previous shareholder reports, we began
using these instruments in late 2004 in an effort to reduce interest rate risk,
that is, to minimize the impact of interest rate movements on the Funds. In
those cases the fund agreed to pay a fixed interest rate and receive a floating
rate. In the more recent situation, where the Funds needed to lengthen their
durations (and thereby increase interest rate risk), the funds agreed to pay a
floating rate and receive a fixed rate. The techniques are not an attempt to
profit from correctly predicting the timing and direction of these movements.
Instead, our sole objective is to manage the durations (and price sensitivity)
of these Funds without having a negative impact on their income streams or
common share dividends over the short term. In line with this objective, we
entered into duration-lengthening swaps on NNY, NNP, NAN, and NXK in July 2006.
Although issuance in New York, as previously mentioned, declined sharply during
this period, the reduction in supply did not have a major impact on the
implementation of this or other strategies we had planned for these Funds. In
watching the market for potential new additions to our portfolios, we focused
mainly on attractively priced, premium coupon3 bonds in the 15- to 20-year part
of the curve, which we thought generally offered good value, and on bonds
maturing in 25 years or more to increase the Funds' exposure to longer bonds.
Overall, we believed that the bonds we purchased provided strong performance
potential and attractive reward opportunities without excessive risk. Because
New York is a state in which most municipal bond issuers are of high quality,
much of the new supply was highly rated and/or insured, and the majority of our
new purchases were higher-rated credits, including insured healthcare bonds. We
also bought insured bonds issued by New York City Industrial Development Agency
to finance new stadiums for the New York Yankees and Mets, which were added to
all four Funds.
At the same time, we continued to emphasize maintaining the Funds' weightings of
lower-quality bonds. However, as credit spreads (the difference between the
higher yields on such lower quality bonds, and the yields on higher quality
bonds) continued to narrow and municipal supply tightened, we generally had
difficulty finding attractively structured lower-rated credit opportunities in
the New York market. One area where we did find an opportunity to purchase
lower-rated bonds was the tobacco sector. In February 2006, we participated in
the $1.4 billion issuance of BBB rated tobacco bonds by TSASC, Inc. New York,
purchasing these credits for all four of the New York Funds. This enabled us to
replace a portion of the Funds' tobacco exposure that had been
3 Premium coupon bonds are credits that, at the time of purchase, are trading
above their par values because their coupons are higher than current coupon
levels. Historically, these bonds have held their value better than current
coupon bonds when interest rates rise.
7
reduced by advance refundings by New York City and some of the state's larger
counties. Overall, the New York Funds continued to have good exposure to the
lower-rated credit categories.
As part of our duration management strategies, we also selectively sold holdings
with shorter durations. Selling these shorter duration bonds and reinvesting
further out on the yield curve helped to improve the Funds' overall call
protection profile. We also took advantage of opportunities to sell selected
holdings when we believed that prevailing prices made these bonds attractive
sales candidates.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New York Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 9/30/06
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NNY4 4.56% 5.06% 5.13%
--------------------------------------------------------------------------------
NNP 4.91% 7.28% 6.88%
--------------------------------------------------------------------------------
NAN 4.91% 7.35% NA
--------------------------------------------------------------------------------
NXK 5.37% 7.70% NA
--------------------------------------------------------------------------------
Lehman Brothers NY
Tax-Exempt
Bond Index5 4.38% 5.11% 5.97%
--------------------------------------------------------------------------------
Lipper NY
Municipal Debt
Funds Average6 5.89% 6.74% 6.32%
--------------------------------------------------------------------------------
*Annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended September 30, 2006, the total return on net asset value
(NAV) for NNY, NNP, NAN, and NXK outperformed the return on the Lehman Brothers
New York Tax-Exempt Bond Index. The returns on all four of the New York Funds in
this report underperformed the average return for the Lipper New York peer
group.
Factors that influenced the Funds' returns during this period included yield
curve positioning and duration management, allocations to lower-rated credits
(or credit risk), sector selection, the use of financial leverage, and
pre-refunding activity. The
4 NNY is an unleveraged Fund; the remaining three Funds in this report are
leveraged.
5 The Lehman Brothers New York Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade New York
municipal bonds. Results for the Lehman index do not reflect any expenses.
6 The Lipper New York Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1 year, 20; 5 years, 10; and 10 years, 7. Fund
and Lipper returns assume reinvestment of dividends.
8
implementation of hedges in these four Funds during this period also was a
positive contributor to their performances.
As longer rates declined and the taxable yield curve flattened and even inverted
over the course of this period, yield curve and duration positioning played an
important role in the performance of these Funds. Overall, bonds in the Lehman
Brothers Municipal Bond Index with maturities between two and six years were the
most adversely impacted by changes in the interest rate environment over this
period, as interest rates in that part of the yield curve rose sharply. As a
result, these bonds generally underperformed intermediate and longer bonds
(those with maturities of at least 12 years), with issues having the longest
maturities (22 years and longer) achieving the best returns for the period.
While these four Funds held relatively few short bonds and a good allocation of
intermediate bonds, each of the Funds was slightly underexposed to bonds in the
longest part of the curve, which hampered their performances to some degree.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value and tightened credit
spreads. In particular, NXK, which had allocated 15% of its portfolio to bonds
rated BBB or lower and non-rated bonds as of September 30, 2006, benefited from
this situation. In the other three New York Funds, BBB and non-rated bonds
accounted for 11% of each Fund's portfolio.
Among the lower-rated holdings making positive contributions to the Funds' total
returns for this period were healthcare credits (including hospitals) and
industrial development and resource recovery bonds, which ranked as the top
performing revenue sectors in the Lehman Brothers municipal index. Bonds backed
by the 1998 master tobacco settlement agreement, which comprised approximately
2% of the portfolios of these four Funds as of September 30, 2006, also
performed well and contributed to the Funds' returns.
Another factor in the annual performance of these Funds, especially relative to
that of the unleveraged Lehman Brothers New York Tax-Exempt Bond Index, was the
use of financial leverage. Three of these Funds (NNP, NAN, and NXK) use
leverage, while NNY is not leveraged. While leveraging can add volatility to a
Fund's NAV and share price, this strategy can also provide opportunities for
additional income and total return for
9
common shareholders. The Fund's leveraging strategy positively impacted their
results over this period, although not to the same extent as in the past. Since
NNY is not leveraged, it did not benefit from the changes in the interest rate
environment to the same extent as the other three Funds, which accounted for
some of the performance differentials. Over the long term, we firmly believe
that the use of financial leverage should work to the benefit of those Funds
that are leveraged. This is demonstrated by the five-year and ten-year return
performance--both absolute and relative to the Lehman Brothers New York
Tax-Exempt Bond Index--of the three leveraged Funds in this report.
As noted earlier, we also continued to see positive contributions from advance
refunding activity, which benefited these Funds through price appreciation and
enhanced credit quality. While advance refundings generally enhanced performance
for this 12-month period, the Funds' holdings of older, previously pre-refunded
bonds tended to underperform the general municipal market, due primarily to
their shorter effective maturities. This was especially true in NNP, which had
the largest allocation of pre-refunded bonds among these four Funds.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
SEPTEMBER 30, 2006?
Maintaining strong credit quality remained an important requirement for the
Funds. As of September 30, 2006, all of these Funds continued to offer excellent
credit quality, with bonds rated AAA/U.S. guaranteed and AA comprising 81% of
NXK's portfolio, 84% in NAN, and 86% of NNY and NNP.
As of September 30, 2006, potential call exposure for the period October 2006
through the end of 2008 ranged from 6% in NAN and 9% in NNP to 12% in NXK and
18% in NNY. The number of actual bond calls will depend largely on future market
interest rates.
10
Dividend and Share Price
INFORMATION
All of the Funds in this report except NNY use leverage to potentially enhance
opportunities for additional income for common shareholders. The benefits of
leveraging are tied in part to the short-term rates leveraged Funds pay their
MuniPreferred(R) shareholders. During periods of low short-term rates, these
Funds generally pay lower dividends to their MuniPreferred shareholders, which
can leave more earnings to support common share dividends. Conversely, when
short-term interest rates rise, as they did during this reporting period, the
Funds' borrowing costs also rise, impacting the Funds' income streams and total
returns and reducing the extent of the benefits of leveraging. The Funds' income
streams were also affected as the proceeds from older, higher- yielding bonds
that matured or were called were reinvested into bonds currently available in
the market, which generally offered lower yields. These factors resulted in
three monthly dividend reductions in NNP, NAN, and NXK over the 12-month period
ended September 30, 2006. The dividend of NNY remained stable throughout this
reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received sizable capital gains and net ordinary income
distributions at the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NNP $0.3007 $0.0012
--------------------------------------------------------------------------------
NAN $0.1864 --
--------------------------------------------------------------------------------
NXK $0.2014 $0.0040
--------------------------------------------------------------------------------
These distributions, which represented an important part of the total returns of
these three Funds for this period, were generated by bond calls and the sale of
appreciated securities. This had a slight negative impact on the Funds' earning
power per common share and was a minor factor in the common share dividend
reductions noted above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has
11
cumulatively paid dividends in excess of its earnings, the excess constitutes
negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over
time, pay all of its net investment income as dividends to shareholders. As of
September 30, 2006, NNY, NNP, and NXK had positive UNII balances for both
financial statement and tax purposes, while NAN had a negative UNIIbalance for
financial statement purposes and a positive UNIIbalance for tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
9/30/06 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NNY -5.75% -7.25%
--------------------------------------------------------------------------------
NNP -0.81% 1.67%
--------------------------------------------------------------------------------
NAN +0.71% 3.48%
--------------------------------------------------------------------------------
NXK +1.18% 2.11%
--------------------------------------------------------------------------------
12
Nuveen New York Municipal Value Fund, Inc.
NNY
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 57%
AA 29%
A 3%
BBB 6%
BB or Lower 3%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct 0.0355
Nov 0.0355
Dec 0.0355
Jan 0.0355
Feb 0.0355
Mar 0.0355
Apr 0.0355
May 0.0355
Jun 0.0355
Jul 0.0355
Aug 0.0355
Sep 0.0355
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/01/05 9.31
9.28
9.25
9.26
9.21
9.26
9.25
9.15
9.05
9.05
8.99
9.01
8.97
9.01
9.1
9.12
9.14
9.11
9.15
9.08
9.12
9.05
9.06
9.16
9.15
9.11
9.16
9.1
9.02
9.13
9.06
9.06
9.05
9.03
9.04
9.1
9.07
9.11
9.11
9.09
9.09
9.07
9.13
9.15
9.14
9.14
9.07
9.08
9.06
9.03
9
9.05
8.98
9.01
9.01
9.06
9.02
9.1
9.12
9.14
9.15
9.15
9.2
9.2
9.21
9.2
9.28
9.3
9.33
9.32
9.24
9.22
9.18
9.18
9.24
9.22
9.22
9.24
9.32
9.27
9.29
9.32
9.3
9.26
9.25
9.23
9.18
9.24
9.26
9.24
9.27
9.25
9.29
9.23
9.25
9.2301
9.28
9.27
9.31
9.29
9.29
9.34
9.36
9.37
9.37
9.39
9.42
9.37
9.4
9.41
9.44
9.36
9.43
9.47
9.48
9.58
9.51
9.59
9.58
9.6
9.67
9.62
9.73
9.68
9.5
9.55
9.61
9.63
9.73
9.64
9.56
9.54
9.41
9.38
9.3
9.23
9.25
9.19
9.15
9.15
9.15
9.2
9.23
9.25
9.26
9.26
9.25
9.25
9.22
9.26
9.24
9.21
9.21
9.23
9.2
9.22
9.16
9.14
9.04
9.08
9.1
9.13
9.084
9.09
9.07
9.07
9.11
9.09
9.18
9.18
9.17
9.26
9.19
9.16
9.2
9.18
9.22
9.2
9.16
9.11
9.12
9.11
9.09
9.07
9.01
9.06
9.04
9.09
9.08
9.17
9.17
9.17
9.16
9.25
9.24
9.21
9.18
9.25
9.32
9.22
9.32
9.29
9.25
9.2899
9.36
9.34
9.27
9.25
9.27
9.32
9.34
9.35
9.33
9.4
9.35
9.4
9.36
9.36
9.41
9.37
9.41
9.49
9.45
9.45
9.43
9.43
9.37
9.41
9.41
9.47
9.46
9.45
9.45
9.5
9.45
9.39
9.36
9.4
9.35
9.38
9.31
9.32
9.35
9.28
9.42
9.42
9.37
9.49
9.44
9.49
9.45
9.45
9.51
9/30/06 9.51
FUND SNAPSHOT
-------------------------------------
Common Share Price $9.51
-------------------------------------
Common Share
Net Asset Value $10.09
-------------------------------------
Premium/(Discount) to NAV -5.75%
-------------------------------------
Market Yield 4.48%
-------------------------------------
Taxable-Equivalent Yield1 6.69%
-------------------------------------
Net Assets Applicable to
Common Shares ($000) $152,573
-------------------------------------
Average Effective
Maturity on Securities (Years) 17.16
-------------------------------------
Modified Duration 5.30
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
1-Year 7.50% 4.56%
-------------------------------------
5-Year 4.95% 5.06%
-------------------------------------
10-Year 4.51% 5.13%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Tax Obligation/Limited 21.1%
-------------------------------------
U.S. Guaranteed 14.5%
-------------------------------------
Health Care 12.9%
-------------------------------------
Long-Term Care 10.9%
-------------------------------------
Transportation 8.4%
-------------------------------------
Utilities 7.6%
-------------------------------------
Education and Civic
Organizations 7.4%
-------------------------------------
Housing/Multifamily 5.1%
-------------------------------------
Other 12.1%
-------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
13
Nuveen New York Performance Plus Municipal Fund, Inc.
NNP
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 27%
A 3%
BBB 7%
BB or Lower 2%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.078
Nov 0.078
Dec 0.078
Jan 0.078
Feb 0.078
Mar 0.074
Apr 0.074
May 0.074
Jun 0.0695
Jul 0.0695
Aug 0.0695
Sep 0.0665
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/01/05 16.01
16.07
16.08
16.08
16.1
16.033
16.18
16
15.89
15.7
15.51
15.54
15.49
15.61
15.75
15.85
15.85
15.9
15.9901
15.97
15.98
15.9
15.82
15.86
15.91
15.99
16.04
16.06
16.07
16.1
16.05
15.93
15.98
16.01
16.08
16.1
16.1
16.1301
16.1217
16.33
16.39
16.53
16.47
16.55
16.53
16.43
16.38
16.39
16.35
16.36
15.9
15.93
15.9
15.81
15.84
15.85
15.75
15.75
15.83
15.83
15.87
15.89
16.02
16.02
16.18
16.43
16.55
16.65
16.75
16.64
16.59
16.58
16.32
16.46
16.34
16.4
16.36
16.43
16.42
16.34
16.42
16.54
16.5
16.5
16.59
16.6
16.49
16.43
16.6048
16.49
16.6
16.51
16.64
16.6
16.71
16.7
17.05
16.96
17.08
16.98
17.02
17.18
17.25
17.15
17.14
16.96
16.86
16.8
16.96
16.8
16.79
16.63
16.61
16.53
16.61
16.56
16.65
16.63
16.58
16.68
16.67
16.56
16.31
16.3
16.31
16.35
16.47
16.5
16.4
16.45
16.38
16.32
16.21
16.18
16.26
16.11
15.92
16
15.87
15.96
15.97
15.95
16.15
16.06
16.2
16.2
16.26
16.2
16.07
16.05
16.15
16.11
16.3
16.31
16.32
16.06
16.18
16.2
16.13
16.05
15.95
16.24
16.06
16.04
16.1
16.11
16.07
16.08
16.3
16.23
16.09
16.03
15.91
15.99
16
15.75
15.65
15.6
15.51
15.46
15.45
15.44
15.31
15.2
15.12
15.05
15.11
15.18
15.1
15.08
15.1
15.21
15.1301
15.3
15.23
15.24
15.19
15.14
15.35
15.28
15.36
15.5
15.33
15.45
15.47
15.5
15.5
15.55
15.9
15.97
15.98
15.97
16.26
16.31
16.27
16.22
16.26
16.32
16.26
16.24
16.38
16.32
16.4
16.4
16.39
16.33
16.36
16.4
16.41
16.33
16.35
16.33
16.46
16.45
16.3
16.06
16.09
16.16
16.15
16.06
16.07
15.99
15.89
15.92
15.85
15.83
15.89
15.8501
15.86
15.81
15.88
15.87
15.88
9/30/06 15.88
FUND SNAPSHOT
-------------------------------------
Common Share Price $15.88
-------------------------------------
Common Share
Net Asset Value $16.01
-------------------------------------
Premium/(Discount) to NAV -0.81%
-------------------------------------
Market Yield 5.03%
-------------------------------------
Taxable-Equivalent Yield1 7.51%
-------------------------------------
Net Assets Applicable to
Common Shares ($000) $240,618
-------------------------------------
Average Effective
Maturity on Securities (Years) 16.00
-------------------------------------
Leverage-Adjusted Duration 8.22
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
1-Year 6.69% 4.91%
-------------------------------------
5-Year 8.04% 7.28%
-------------------------------------
10-Year 6.08% 6.88%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
U.S. Guaranteed 20.0%
-------------------------------------
Tax Obligation/Limited 19.0%
-------------------------------------
Health Care 11.8%
-------------------------------------
Education and Civic
Organizations 10.9%
-------------------------------------
Transportation 8.8%
-------------------------------------
Utilities 6.0%
-------------------------------------
Long-Term Care 4.8%
-------------------------------------
Water and Sewer 4.8%
-------------------------------------
Other 13.9%
-------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.3019 per share.
14
Nuveen New York Dividend Advantage Municipal Fund
NAN
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 56%
AA 28%
A 5%
BBB 6%
BB or Lower 3%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0785
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0695
Jul 0.0695
Aug 0.0695
Sep 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/01/05 16.17
16.25
16.27
15.9
15.84
15.9
15.92
15.78
15.63
15.75
15.51
15.38
15.33
15.4
15.49
15.57
15.91
15.75
15.8
15.94
15.9401
15.85
15.78
16
15.95
15.93
16
15.95
15.89
15.9
15.82
15.69
15.6601
15.8
15.8
15.65
15.71
15.68
15.76
15.71
16
16.05
16.15
16.2
16.31
16.32
16.31
16.42
16.3
16.33
16.13
16.05
15.92
16.01
16.04
16.04
16.05
16.07
16.3
16.29
16.38
16.5
16.59
16.59
16.55
16.65
16.74
16.78
16.8
16.73
16.6
16.75
16.65
16.78
16.43
16.26
16.29
16.4
16.36
16.38
16.3
16.45
16.47
16.66
16.75
16.68
16.53
16.46
16.614
16.45
16.5
16.28
16.3
16.35
16.38
16.38
16.48
16.57
16.66
16.61
16.6
16.62
16.61
16.7
16.7
16.26
16.33
16.12
16.02
16.11
15.97
15.91
15.83
15.71
15.67
15.73
15.68
15.89
15.94
15.91
15.95
16.04
15.95
15.93
15.75
16.02
16.12
16
16.14
16.01
16.1
16.15
16.24
16.15
15.82
15.79
15.7
15.75
15.78
15.8
15.67
15.69
15.6
15.62
15.82
15.82
15.95
16.05
15.84
16.08
15.93
15.99
16.09
16.18
16.15
15.9
15.9
16.05
15.91
15.77
15.91
15.75
15.73
16
15.85
15.97
15.8
16.15
16.1
16.1
16
15.95
15.94
15.87
15.77
15.78
15.7
15.57
15.53
15.75
15.58
15.7
15.65
15.36
15.42
15.35
15.4
15.5499
15.5
15.4
15.55
15.5
15.4
15.4
15.36
15.37
15.22
15.15
15.1
15
15.05
15.08
15.0501
15.13
15.27
15.31
15.35
15.41
15.65
15.6
15.55
15.63
15.67
15.8
15.75
15.87
15.87
15.85
15.6
15.6
15.58
15.64
15.65
15.67
15.74
15.71
15.64
15.58
15.61
15.63
15.73
15.73
15.79
15.61
15.54
15.39
15.45
15.54
15.5
15.51
15.49
15.49
15.45
15.24
15.44
15.4
15.46
15.39
15.52
15.55
15.64
15.6
15.6
9/30/06 15.6
FUND SNAPSHOT
-------------------------------------
Common Share Price $15.60
-------------------------------------
Common Share
Net Asset Value $15.49
-------------------------------------
Premium/(Discount) to NAV 0.71%
-------------------------------------
Market Yield 5.04%
-------------------------------------
Taxable-Equivalent Yield1 7.52%
-------------------------------------
Net Assets Applicable to
Common Shares ($000) $143,147
-------------------------------------
Average Effective
Maturity on Securities (Years) 17.14
-------------------------------------
Leverage-Adjusted Duration 7.63
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
1-Year 3.49% 4.91%
-------------------------------------
5-Year 8.15% 7.35%
-------------------------------------
Since
Inception 6.89% 7.41%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Health Care 23.5%
-------------------------------------
Tax Obligation/Limited 19.7%
-------------------------------------
U.S. Guaranteed 11.6%
-------------------------------------
Education and Civic
Organizations 10.3%
-------------------------------------
Transportation 9.2%
-------------------------------------
Tax Obligation/General 7.5%
-------------------------------------
Utilities 4.9%
-------------------------------------
Other 13.3%
-------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.1864 per share.
15
Nuveen New York Dividend Advantage Municipal Fund 2
NXK
Performance
OVERVIEW As of September 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 17%
A 4%
BBB 9%
BB or Lower 4%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.072
Apr 0.072
May 0.072
Jun 0.0685
Jul 0.0685
Aug 0.0685
Sep 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/01/05 15.4
15.39
15.37
15.39
15.2801
15.34
15.35
15.39
15.2
15.4
15.02
15
15.4
14.89
15.01
15
14.95
14.95
14.88
14.95
15.02
15.1
15.04
15.44
15.1
15.11
15.12
15.1
14.92
15.12
15.02
14.94
15
15.05
15
14.95
15
14.98
15
15.19
15.34
15.39
15.2
15.14
15.02
15.11
15.14
15.4
15.19
15.34
15.01
15.25
15.25
15.38
15.45
15.46
15.8
15.92
16.08
16.02
16.1
16.22
16.06
16.06
16.22
16.38
16.28
16.18
16.2
16.04
15.91
15.91
15.95
15.91
15.95
16.25
16.15
15.94
15.9
15.96
15.9
16.11
15.95
15.84
16.15
16
15.8
15.89
16.051
16
16.1
16.0999
16.05
15.97
16.1
15.9
15.8501
16.06
16.12
16.1
16.03
16.15
16
16
16.01
15.9
15.76
15.76
15.8
15.6
15.49
15.35
15.3
15.13
15.32
15.42
15.4328
15.47
15.42
15.46
15.47
15.5701
15.4
15.46
15.43
15.46
15.54
15.43
15.59
15.43
15.44
15.38
15.19
15.22
15.2
15.02
15.12
15.3
15.32
15.34
15.4
15.32
15.37
15.4
15.55
15.55
15.5
15.47
15.6
15.82
15.63
15.66
15.7
15.65
15.4
15.27
15.24
15.35
15.2
15.23
15.2701
15.35
15.3
15.2
15.25
15.38
15.52
15.55
15.52
15.51
15.38
15.48
15.52
15.4601
15.55
15.6
15.55
15.35
15.29
15.55
15.35
15.41
15.38
15.22
15.2
14.98
14.92
15.2
15.2
15.12
15.35
15.31
15.46
15.49
15.5
15.59
15.24
15.15
15.23
15.2
15.11
15.16
15.28
15.28
15.44
15.2
15.29
15.26
15.26
15.21
15.49
15.45
15.65
15.49
15.5
15.33
15.21
15.45
15.45
15.47
15.58
15.4
15.37
15.28
15.2
15.02
15.14
15.38
15.45
15.3
15.5
15.49
15.61
15.52
15.41
15.2
15.3
15.35
15.45
15.46
15.34
15.46
15.4
15.35
15.34
15.34
15.32
15.35
15.44
15.3
15.5
15.45
15.47
9/30/06 15.47
FUND SNAPSHOT
-------------------------------------
Common Share Price $15.47
-------------------------------------
Common Share
Net Asset Value $15.29
-------------------------------------
Premium/(Discount) to NAV 1.18%
-------------------------------------
Market Yield 5.08%
-------------------------------------
Taxable-Equivalent Yield1 7.58%
-------------------------------------
Net Assets Applicable to
Common Shares ($000) $99,067
-------------------------------------
Average Effective
Maturity on Securities (Years) 16.96
-------------------------------------
Leverage-Adjusted Duration 7.64
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
-------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------
1-Year 7.96% 5.37%
-------------------------------------
5-Year 8.27% 7.70%
-------------------------------------
Since
Inception 7.21% 7.73%
-------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------
Tax Obligation/Limited 19.2%
-------------------------------------
Health Care 15.0%
-------------------------------------
U.S. Guaranteed 13.7%
-------------------------------------
Transportation 13.2%
-------------------------------------
Education and Civic
Organizations 11.1%
-------------------------------------
Utilities 9.3%
-------------------------------------
Tax Obligation/General 8.5%
-------------------------------------
Other 10.0%
-------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.2054 per share.
16
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN NEW YORK MUNICIPAL VALUE FUND, INC.
NUVEEN NEW YORK PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New York Municipal Value Fund, Inc.,
Nuveen New York Performance Plus Municipal Fund, Inc., Nuveen New York Dividend
Advantage Municipal Fund and Nuveen New York Dividend Advantage Municipal Fund 2
(the Funds) as of September 30, 2006, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of September 30, 2006, by correspondence with the custodian
and brokers. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New York Municipal Value Fund, Inc., Nuveen New York Performance Plus
Municipal Fund, Inc., Nuveen New York Dividend Advantage Municipal Fund and
Nuveen New York Dividend Advantage Municipal Fund 2 at September 30, 2006, the
results of their operations for the year then ended, changes in their net assets
for each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
November 10, 2006
17
Nuveen New York Municipal Value Fund, Inc. (NNY)
Portfolio of
INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2% (0.2% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, Liberty 9/15 at 100.00 BBB- $ 280,044
Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.7% OF TOTAL INVESTMENTS)
35 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 35,876
Pass-Through Bonds, Series 2000B, 5.800%, 6/01/23
330 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 337,768
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
450 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 464,171
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
250 Rensselaer Tobacco Asset Securitization Corporation, New York, 6/12 at 100.00 BBB 255,270
Tobacco Settlement Asset-Backed Bonds, Series 2001A,
5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
1,160 4.750%, 6/01/22 6/16 at 100.00 BBB 1,185,856
345 5.000%, 6/01/26 6/16 at 100.00 BBB 352,141
------------------------------------------------------------------------------------------------------------------------------------
2,570 Total Consumer Staples 2,631,082
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.3% (7.4% OF TOTAL INVESTMENTS)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Law School, Series 2000A:
600 5.700%, 10/01/20 - RAAI Insured 10/10 at 100.00 AA 638,568
750 5.750%, 10/01/30 - RAAI Insured 10/10 at 100.00 AA 800,280
90 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 93,151
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
800 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 AA 854,136
Bonds, D'Youville College, Series 2001, 5.250%, 7/01/20 -
RAAI Insured
615 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 707,982
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 1,335,838
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
750 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 102.00 AA 804,818
Pratt Institute, Series 1999, 6.000%, 7/01/24 - RAAI Insured
Dormitory Authority of the State of New York, Second General
Resolution Consolidated Revenue Bonds, City University System,
Series 1993A:
1,000 5.750%, 7/01/18 No Opt. Call AA- 1,140,480
1,400 6.000%, 7/01/20 No Opt. Call AA- 1,670,102
265 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 275,817
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
245 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 253,791
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,145,540
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 265,333
Revenue Bonds, Queens Baseball Stadium, Series 2006,
5.000%, 1/01/36 - AMBAC Insured
450 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 476,887
Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/36 - FGIC Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 575 New York City Trust for Cultural Resources, New York, Revenue 7/10 at 101.00 A $ 622,265
Bonds, Museum of American Folk Art, Series 2000,
6.000%, 7/01/22 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,140 Total Education and Civic Organizations 11,084,988
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.3% (0.3% OF TOTAL INVESTMENTS)
400 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call Aa3 457,200
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.7% (12.9% OF TOTAL INVESTMENTS)
490 Cattaraugus County Industrial Development Agency, New York, 8/08 at 102.00 AA 507,248
Revenue Bonds, Olean General Hospital, Series 1998A,
5.250%, 8/01/23
2,250 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AAA 2,310,210
Mortgage Nursing Home Revenue Bonds, Rosalind and
Joseph Gurwin Jewish Geriatric Center of Long Island,
Series 1997, 5.700%, 2/01/37 - AMBAC Insured
1,005 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,059,210
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
700 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 744,331
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
1,800 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 1,858,122
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 1,362,475
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 1,265,784
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa2 1,082,000
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
250 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 Ba1 254,050
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
1,620 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,769,672
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
100 Dormitory Authority of the State of New York, Revenue Bonds, 1/07 at 102.00 B3 99,521
Nyack Hospital, Series 1996, 6.250%, 7/01/13
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 531,355
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 525,985
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
290 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 300,695
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
670 Nassau County Industrial Development Agency, New York, No Opt. Call A3 702,455
Revenue Refunding Bonds, North Shore Health System
Obligated Group, Series 2001B, 5.875%, 11/01/11
500 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AAA 520,170
Health System Revenue Bonds, Series 1999A,
5.125%, 2/15/14 - AMBAC Insured
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,175 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,262,385
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,074,370
495 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 506,276
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
250 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 B2 263,435
Facility Revenue Bonds, Staten Island University Hospital,
Series 2002C, 6.450%, 7/01/32
900 Newark-Wayne Community Hospital, New York, Hospital 3/07 at 100.00 N/R 901,026
Revenue Refunding and Improvement Bonds, Series 1993A,
7.600%, 9/01/15
19
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - (continued)
$ 500 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 B+ $ 538,570
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
18,445 Total Health Care 19,439,345
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.0% (5.1% OF TOTAL INVESTMENTS)
400 East Syracuse Housing Authority, New York, FHA-Insured 4/10 at 102.00 AAA 431,688
Section 8 Assisted Revenue Refunding Bonds, Bennet Project,
Series 2001A, 6.700%, 4/01/21
1,690 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 1,802,757
Capital Fund Program Revenue Bonds, Series 2005A,
5.000%, 7/01/25 - FGIC Insured
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2001A:
1,000 5.400%, 11/01/21 5/11 at 101.00 AA 1,052,230
1,000 5.500%, 11/01/31 5/11 at 101.00 AA 1,041,620
1,000 5.600%, 11/01/42 5/11 at 101.00 AA 1,040,300
480 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 487,243
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
440 New York State Housing Finance Agency, Secured Mortgage 8/11 at 100.00 Aa1 460,434
Program Multifamily Housing Revenue Bonds, Series 2001E,
5.600%, 8/15/20 (Alternative Minimum Tax)
1,275 Westchester County Industrial Development Agency, New York, 8/11 at 102.00 Aaa 1,368,126
GNMA Collateralized Mortgage Loan Revenue Bonds, Living
Independently for the Elderly Inc., Series 2001A,
5.375%, 8/20/21
------------------------------------------------------------------------------------------------------------------------------------
7,285 Total Housing/Multifamily 7,684,398
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.7% (3.7% OF TOTAL INVESTMENTS)
950 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 954,836
Revenue Bonds, Series 130, 4.650%, 4/01/27 (Alternative
Minimum Tax)
3,750 New York State Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 3,835,161
Revenue Bonds, Series 73A, 5.250%, 10/01/17 (Alternative
Minimum Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 853,222
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,540 Total Housing/Single Family 5,643,219
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 10.8% (10.9% OF TOTAL INVESTMENTS)
1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 1,071,240
Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 -
MBIA Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 1,033,330
Mortgage Nursing Home Revenue Bonds, Eger Healthcare
Center of Staten Island, Series 1998, 5.100%, 2/01/28
2,900 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AA 2,978,444
Mortgage Nursing Home Revenue Bonds, Hebrew Home for
the Aged at Riverdale, Series 1997, 6.125%, 2/01/37
1,695 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AA- 1,731,561
Mortgage Revenue Bonds, German Masonic Home Corporation,
Series 1996, 5.950%, 8/01/26
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AAA 2,052,980
Mortgage Revenue Bonds, W.K. Nursing Home Corporation,
Series 1996, 6.125%, 2/01/36
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Aa3 1,079,290
Concord Nursing Home Inc., Series 2000, 6.500%, 7/01/29
135 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 138,798
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
2,015 East Rochester Housing Authority, New York, FHA-Insured 8/07 at 102.00 AAA 2,089,495
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1997A, 5.750%, 8/01/37 - MBIA Insured
3,125 East Rochester Housing Authority, New York, FHA-Insured 8/08 at 101.00 AAA 3,186,093
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1998A, 5.250%, 8/01/38
530 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 566,194
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001A-1, 7.250%, 7/01/16
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 450 New York State Dormitory Authority, GNMA Collateralized 2/17 at 103.00 AA $ 486,135
Revenue Bonds, Cabrini of Westchester Project, Series 2006,
5.200%, 2/15/41 (WI/DD, Settling 10/12/06)
------------------------------------------------------------------------------------------------------------------------------------
15,850 Total Long-Term Care 16,413,560
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.9% (3.9% OF TOTAL INVESTMENTS)
750 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 814,890
Fiscal Series 2004C, 5.250%, 8/15/16
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
1,000 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,073,500
400 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 429,112
825 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 897,600
Series 2006C, 5.000%, 8/01/16 - FSA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 2,153,140
Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured
550 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 580,553
Series 2000A, 6.000%, 6/01/20 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,525 Total Tax Obligation/General 5,948,795
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.8% (21.1% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,086,740
Series 2003A, 5.250%, 11/01/21
Dormitory Authority of the State of New York, Department of
Health Revenue Bonds, Series 2005A:
395 5.250%, 7/01/24 - CIFG Insured 7/15 at 100.00 AAA 429,472
250 5.000%, 7/01/25 - CIFG Insured 7/15 at 100.00 AAA 264,418
50 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 51,063
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.375%, 2/15/26 - FSA Insured
380 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 400,581
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
1,810 Dormitory Authority of the State of New York, Service Contract 4/12 at 100.00 AA- 1,935,578
Bonds, Child Care Facilities Development Program,
Series 2002, 5.375%, 4/01/16
275 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 294,470
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
350 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 395,108
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,141,320
1,000 5.000%, 11/15/30 11/12 at 100.00 AA 1,038,670
1,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 1,055,160
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 587,776
Revenue Bonds, Series 2003, 5.500%, 1/01/34
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
1,000 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,066,420
740 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 788,100
550 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 584,974
1,510 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,598,577
1,330 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,400,330
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
1,000 New York Convention Center Development Corporation, 11/15 at 100.00 AAA 1,045,570
Hotel Unit Fee Revenue Bonds, Series 2005,
5.000%, 11/15/44 - AMBAC Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,059,640
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
840 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 884,932
Income Tax Revenue Bonds, Economic Development and
Housing, Series 2006A, 5.000%, 3/15/36
21
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,450 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA $ 2,851,531
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
1,620 New York State Thruway Authority, State Personal Income 3/12 at 100.00 AAA 1,715,110
Tax Revenue Bonds, Series 2002A, 5.125%, 3/15/21
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
1,800 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 1,940,904
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 2,148,040
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,084,890
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
1,750 New York State Urban Development Corporation, Service 1/11 at 100.00 AA- 1,869,665
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
600 New York State Urban Development Corporation, Special No Opt. Call AA- 713,706
Project Revenue Bonds, University Facilities Grants,
Series 1995, 5.875%, 1/01/21
1,230 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,288,068
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.000%, 4/15/16 - AMBAC Insured
75 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 79,530
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
29,565 Total Tax Obligation/Limited 31,800,343
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.3% (8.4% OF TOTAL INVESTMENTS)
400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 426,784
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 549,925
Transportation Revenue Refunding Bonds, Series 2002A,
5.500%, 11/15/19 - AMBAC Insured
1,100 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 1,063,183
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B 1,155,370
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
670 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 707,265
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
400 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 423,968
1,200 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 1,269,204
500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 525,220
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
500 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 542,385
1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,065,690
435 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 462,270
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,647,100
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 913,146
800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 864,664
------------------------------------------------------------------------------------------------------------------------------------
11,785 Total Transportation 12,616,174
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.3% (14.5% OF TOTAL INVESTMENTS) (4)
3,175 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 3,819,905
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 (ETM)
600 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 661,950
State Personal Income Tax, Series 2003A, 5.375%, 3/15/22
(Pre-refunded 3/15/13)
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 25 Dormitory Authority of the State of New York, Suffolk County, 10/06 at 109.40 Baa1 (4) $ 34,132
Lease Revenue Bonds, Judicial Facilities, Series 1991A,
9.500%, 4/15/14 (ETM)
340 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 371,814
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded 7/15/10)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
50 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 51,815
100 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 103,630
2,330 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- (4) 2,522,388
Revenue Bonds, Series 2001A, 5.375%, 9/01/21 (Pre-refunded
9/01/11)
2,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 2,318,063
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured (ETM)
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
150 6.000%, 6/01/15 (Pre-refunded 6/01/10) 6/10 at 101.00 AAA 163,993
600 6.150%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 101.00 AAA 646,134
1,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 1,086,400
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27 (Pre-refunded 7/15/09)
490 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R (4) 549,814
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded 7/01/10)
20 New York City, New York, General Obligation Bonds, Fiscal 10/07 at 101.00 Aaa 20,714
Series 1997G, 6.000%, 10/15/26 (Pre-refunded 10/15/07)
140 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 AAA 152,397
Pass-Through Bonds, Series 2000B, 5.800%, 6/01/23
(Pre-refunded 6/01/10)
750 Niagara Falls City School District, Niagara County, New York, 6/09 at 101.00 BBB- (4) 816,225
Certificates of Participation, High School Facility, Series 2000,
6.625%, 6/15/28 (Pre-refunded 6/15/09)
1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 1,162,340
Water Treatment Plant Bonds, Series 1994, 7.250%, 11/01/11 -
MBIA Insured (Alternative Minimum Tax) (ETM)
2,600 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 3,032,873
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded 1/01/22)
1,500 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 1,671,840
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 1,402,300
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded 7/15/10)
1,120 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB- (4) 1,259,216
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
19,490 Total U.S. Guaranteed 21,847,943
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.5% (7.6% OF TOTAL INVESTMENTS)
750 Long Island Power Authority, New York, Electric System 5/11 at 100.00 A- 792,495
General Revenue Bonds, Series 2001L, 5.375%, 5/01/33
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 2006A:
1,500 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 1,609,920
1,500 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AAA 1,606,200
1,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 1,010,270
Revenue Bonds, Brooklyn Navy Yard Cogeneration Partners LP,
Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax)
1,500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 1,519,575
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation, Series 2005A, 4.100%, 3/15/15 -
MBIA Insured
1,500 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 1,577,610
Series 2000A, 5.250%, 11/15/40
New York State Power Authority, General Revenue Bonds,
Series 2006A:
520 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 565,053
345 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 373,511
23
Nuveen New York Municipal Value Fund, Inc. (NNY) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 $ 523,665
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Mandatory put 11/15/12) (Alternative
Minimum Tax)
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 263,193
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001C,
5.625%, 11/15/24 (Mandatory put 11/15/14) (Alternative
Minimum Tax)
Suffolk County Industrial Development Agency, New York, Revenue
Bonds, Nissequogue Cogeneration Partners Facility, Series 1998:
1,000 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 989,180
575 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 571,590
------------------------------------------------------------------------------------------------------------------------------------
10,940 Total Utilities 11,402,262
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.1% (2.1% OF TOTAL INVESTMENTS)
300 Monroe County Water Authority, New York, Water System 8/11 at 101.00 AA 319,083
Revenue Bonds, Series 2001, 5.150%, 8/01/22
415 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 453,670
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
1,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 1,627,950
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
740 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA+ 801,457
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
------------------------------------------------------------------------------------------------------------------------------------
2,955 Total Water and Sewer 3,202,160
------------------------------------------------------------------------------------------------------------------------------------
$ 140,765 Total Long-Term Investments (cost $142,686,279) - 98.6% 150,451,513
=============-----------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2% (0.2% OF TOTAL INVESTMENTS)
$ 300 Puerto Rico Government Development Bank, Adjustable A-1+ $ 300,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 3.590%, 12/01/15 - MBIA Insured (5)
$ 300 Total Short-Term Investments (cost $300,000) 300,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $142,986,279) - 98.8% 150,751,513
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,821,332
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 152,572,845
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2006:
FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL RATE PAID RATE RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (6) BY THE FUND (6) FREQUENCY FREQUENCY DATE (7) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $2,200,000 3 Month USD-LIBOR 5.768% Semi-Annually Quarterly 7/20/07 7/20/29 $130,198
Morgan Stanley 2,000,000 3 Month USD-LIBOR 5.771% Semi-Annually Quarterly 7/20/07 7/20/34 130,760
------------------------------------------------------------------------------------------------------------------------------------
$260,958
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
(6) Represents the annualized rate paid or received by the
Fund.
(7) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
25
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP)
Portfolio of
INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 685 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 697,563
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.7% (1.8% OF TOTAL INVESTMENTS)
60 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 61,501
Pass-Through Bonds, Series 2000B, 5.800%, 6/01/23
685 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 701,125
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
1,000 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 1,055,370
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
635 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 648,386
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
3,095 4.750%, 6/01/22 6/16 at 100.00 BBB 3,163,988
930 5.000%, 6/01/26 6/16 at 100.00 BBB 949,251
------------------------------------------------------------------------------------------------------------------------------------
6,405 Total Consumer Staples 6,579,621
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.3% (10.9% OF TOTAL INVESTMENTS)
1,500 Albany Industrial Development Agency, New York, Revenue 12/09 at 101.00 AA 1,639,095
Bonds, Albany Law School, Series 1999A, 6.750%, 12/01/29 -
RAAI Insured
2,700 Brookhaven Industrial Development Agency, New York, 12/07 at 101.00 A3 2,778,516
Revenue Bonds, St. Joseph's College, Series 2000,
6.000%, 12/01/20
1,285 Cattaraugus County Industrial Development Agency, New York, 9/08 at 101.00 BBB- 1,305,020
Revenue Bonds, St. Bonaventure University, Series 1998B,
5.000%, 9/15/13
90 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 93,151
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 1,108,180
Revenue Bonds, City University System, Series 1993B,
6.000%, 7/01/14 - FSA Insured
2,120 Dormitory Authority of the State of New York, General Revenue No Opt. Call AAA 2,467,256
Bonds, New York University, Series 2001-1, 5.500%, 7/01/20 -
AMBAC Insured
730 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 840,369
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
580 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 618,686
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20 -
FSA Insured
8,345 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 8,918,049
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
1,250 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 1,340,513
1,000 6.000%, 7/01/24 - RAAI Insured 7/09 at 102.00 AA 1,073,090
3,810 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 4,081,196
2,500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AA- 2,884,425
State University Educational Facilities, Series 1993A,
5.875%, 5/15/17
Dormitory Authority of the State of New York, Third General
Resolution Consolidated Revenue Bonds, City University System,
Series 1998-2:
1,490 5.000%, 7/01/17 - FSA Insured 7/08 at 101.00 AAA 1,538,708
475 5.000%, 7/01/18 - FSA Insured 7/08 at 101.00 AAA 490,361
635 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 660,921
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
Monroe County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, St. John Fisher College, Series 1999:
$ 1,000 5.375%, 6/01/17 - RAAI Insured 6/09 at 102.00 AA $ 1,051,700
2,365 5.375%, 6/01/24 - RAAI Insured 6/09 at 102.00 AA
580 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 600,810
Civic Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
850 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 885,190
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
500 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 530,665
Revenue Bonds, Queens Baseball Stadium, Series 2006,
5.000%, 1/01/36 - AMBAC Insured
900 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 953,775
Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/36 - FGIC Insured
750 New York City Trust for Cultural Resources, New York, Revenue 7/10 at 101.00 A 811,650
Bonds, Museum of American Folk Art, Series 2000,
6.000%, 7/01/22 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
36,455 Total Education and Civic Organizations 39,152,660
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call Aa3 1,143,000
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.6% (11.8% OF TOTAL INVESTMENTS)
50 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 50,698
Mortgage Hospital Revenue Bonds, New York and
Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 -
AMBAC Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AA- 1,038,720
Mortgage Hospital Revenue Bonds, St. James Mercy Hospital,
Series 1998, 5.250%, 2/01/18
1,235 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,301,616
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
1,700 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,807,661
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
4,500 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 4,645,305
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
3,750 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 4,087,425
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 8,452,239
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba2 1,243,236
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
2,800 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 2,953,496
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35
3,400 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa2 3,678,800
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
4,070 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,446,027
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 1,328,388
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
900 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 946,773
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,000 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,074,370
1,250 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,342,963
27
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 745 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 $ 761,971
Civic Facility Revenue Bonds, Staten Island University Hospital,
Series 2001B, 6.375%, 7/01/31
740 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 B2 779,768
Facility Revenue Bonds, Staten Island University Hospital,
Series 2002C, 6.450%, 7/01/32
1,135 New York State Medical Care Facilities Finance Agency, 2/07 at 100.00 AAA 1,143,967
FHA-Insured Mortgage Revenue Bonds, Hospital and Nursing
Home Projects, Series 1992B, 6.200%, 8/15/22
1,100 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 B+ 1,184,854
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
39,825 Total Health Care 42,268,277
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.4% (4.3% OF TOTAL INVESTMENTS)
4,530 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 4,832,242
Capital Fund Program Revenue Bonds, Series 2005A,
5.000%, 7/01/25 - FGIC Insured
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2001A:
1,610 5.500%, 11/01/31 5/11 at 101.00 AA 1,677,008
2,000 5.600%, 11/01/42 5/11 at 101.00 AA 2,080,600
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
910 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 944,598
450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 466,713
1,500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 1,579,965
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
1,160 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 1,177,504
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
1,585 New York State Housing Finance Agency, Multifamily Housing 2/07 at 100.00 Aa1 1,605,573
Revenue Bonds, Secured Mortgage Program, Series 1992A,
7.000%, 8/15/12 (Alternative Minimum Tax)
1,100 New York State Housing Finance Agency, Secured Mortgage 8/09 at 101.00 Aa1 1,142,614
Program Multifamily Housing Revenue Bonds, Series 1999I,
6.200%, 2/15/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,845 Total Housing/Multifamily 15,506,817
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.2% (3.5% OF TOTAL INVESTMENTS)
2,295 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 2,306,682
Revenue Bonds, Series 130, 4.650%, 4/01/27 (Alternative
Minimum Tax)
1,250 New York State Mortgage Agency, Homeowner Mortgage 9/08 at 101.00 Aa1 1,278,388
Revenue Bonds, Series 73A, 5.250%, 10/01/17 (Alternative
Minimum Tax)
345 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 347,932
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
6,640 New York State Mortgage Agency, Homeowner Mortgage 4/11 at 100.00 Aa1 6,865,694
Revenue Bonds, Series 97, 5.500%, 4/01/31 (Alternative
Minimum Tax)
1,660 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 1,686,128
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,190 Total Housing/Single Family 12,484,824
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.2% (4.8% OF TOTAL INVESTMENTS)
2,900 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 102.00 AA 2,978,445
Mortgage Nursing Home Revenue Bonds, Hebrew Home for
the Aged at Riverdale, Series 1997, 6.125%, 2/01/37
1,520 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 AAA 1,620,305
Nursing Home Mortgage Revenue Bonds, Shorefront Jewish
Geriatric Center Inc., Series 2002, 5.200%, 2/01/32
1,375 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 102.00 A 1,495,808
Miriam Osborn Memorial Home Association, Series 2000B,
6.375%, 7/01/29 - ACA Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Providence Rest, Series 2005:
50 5.125%, 7/01/30 - ACA Insured 7/15 at 100.00 A 52,292
425 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 A 436,955
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 1,350 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R $ 1,442,191
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001A-1, 7.250%, 7/01/16
1,100 New York State Dormitory Authority, GNMA Collateralized 2/17 at 103.00 AA 1,188,330
Revenue Bonds, Cabrini of Westchester Project, Series 2006,
5.200%, 2/15/41 (WI/DD, Settling 10/12/06)
960 New York State Medical Care Facilities Finance Agency, 2/07 at 101.00 AA+ 980,842
FHA-Insured Mortgage Hospital and Nursing Home Revenue
Bonds, Series 1995C, 6.100%, 8/15/15
2,755 Oswego County Industrial Development Agency, New York, 2/09 at 101.00 AAA 2,871,895
FHA-Insured Mortgage Assisted Civic Facility Revenue Bonds,
Bishop Commons Inc., Series 1999A, 5.375%, 2/01/49
4,000 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/08 at 102.00 AAA 4,166,000
Revenue Bonds, Loretto Rest Residential Healthcare Facility,
Series 1997A, 5.600%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
16,435 Total Long-Term Care 17,233,063
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.7% (3.8% OF TOTAL INVESTMENTS)
1,800 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 1,955,736
Fiscal Series 2004C, 5.250%, 8/15/16
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
2,500 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 2,683,750
1,000 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,072,780
1,600 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,740,800
Series 2006C, 5.000%, 8/01/16 - FSA Insured
3,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 3,229,710
Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured
1,350 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,424,993
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Oneida County, New York, General Obligation Public Improvement
Bonds, Series 2000:
200 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 212,334
200 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 212,334
United Nations Development Corporation, New York, Senior Lien
Revenue Bonds, Series 2004A:
750 5.250%, 7/01/23 1/08 at 100.00 A3 762,608
500 5.250%, 7/01/24 1/08 at 100.00 A3 508,405
------------------------------------------------------------------------------------------------------------------------------------
12,900 Total Tax Obligation/General 13,803,450
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.3% (19.0% OF TOTAL INVESTMENTS)
2,400 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 2,551,344
Series 2003A, 5.000%, 11/01/23
250 Dormitory Authority of the State of New York, Department 7/15 at 100.00 AAA 264,418
of Health Revenue Bonds, Series 2005A, 5.000%, 7/01/25 -
CIFG Insured
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 2000D:
35 5.875%, 2/15/18 - FSA Insured 8/10 at 100.00 AAA 37,718
30 5.875%, 2/15/19 - FSA Insured 8/10 at 100.00 AAA 32,330
40 8/15/19 - FSA Insured 8/10 at 100.00 AAA 43,107
Dormitory Authority of the State of New York, Lease Revenue
Bonds, Nassau County Board of Cooperative Educational
Services, Series 2001A:
1,265 5.250%, 8/15/17 - FSA Insured 8/11 at 100.00 AAA 1,350,261
1,385 5.250%, 8/15/18 - FSA Insured 8/11 at 100.00 AAA 1,478,349
955 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,006,723
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,064,320
Mental Health Services Facilities Improvements, Series 2005D-1,
5.000%, 8/15/23 - FGIC Insured
690 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 738,852
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Bonds, Series 2002A:
5,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 5,353,300
2,500 5.000%, 11/15/30 11/12 at 100.00 AA 2,596,675
29
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
$ 2,175 5.750%, 7/01/18 No Opt. Call AA- $ 2,530,156
2,000 5.125%, 1/01/29 7/12 at 100.00 AA- 2,110,320
1,300 5.000%, 7/01/30 - AMBAC Insured at 100.00 AAA 1,360,515
1,680 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 1,763,328
Revenue Bonds, Series 2003, 5.500%, 1/01/34
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
1,000 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,066,420
2,670 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,843,550
2,125 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,260,129
1,520 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,609,163
2,665 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 2,805,925
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
1,800 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 1,882,026
Unit Fee Revenue Bonds, Series 2005, 5.000%, 11/15/44 -
AMBAC Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,059,640
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
2,030 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 2,138,585
Income Tax Revenue Bonds, Economic Development and
Housing, Series 2006A, 5.000%, 3/15/36
5,600 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 6,517,784
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
6,500 New York State Thruway Authority, State Personal Income 3/12 at 100.00 AAA 6,881,614
Tax Revenue Bonds, Series 2002A, 5.125%, 3/15/21
6,700 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 7,224,475
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/20 -
AMBAC Insured
3,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 3,254,670
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
4,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AA- 4,273,520
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
------------------------------------------------------------------------------------------------------------------------------------
63,315 Total Tax Obligation/Limited 68,099,217
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.1% (8.8% OF TOTAL INVESTMENTS)
1,095 Albany Parking Authority, New York, Revenue Bonds, 10/11 at 101.00 BBB+ 1,152,750
Series 2001B, 5.250%, 10/15/12
1,500 Metropolitan Transportation Authority, New York, Transportation No Opt. Call AAA 1,644,705
Revenue Bonds, Series 2003A, 5.000%, 11/15/15 - FGIC Insured
1,900 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 1,836,407
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
2,830 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,987,405
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
1,100 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 1,165,912
3,100 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 3,278,777
1,000 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 1,050,440
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
2,300 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 2,451,087
1,080 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 1,147,705
1,925 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 1,982,654
Revenue Bonds, One Hundred Twentieth Series 2000,
5.750%, 10/15/26 - MBIA Insured (Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 2,040 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/06 at 102.00 CCC+ $ 2,043,448
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
2,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 2,100,120
Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/19
5,750 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 6,088,330
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
2,400 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 AAA 2,593,992
Lien General Purpose Revenue Refunding Bonds, Series 2002E,
5.250%, 11/15/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,020 Total Transportation 31,523,732
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.9% (20.0% OF TOTAL INVESTMENTS) (4)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 2000D:
155 5.875%, 2/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 168,380
155 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 168,380
180 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 195,538
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/12 at 100.00 AAA 1,096,100
Columbia University, Series 2002B, 5.375%, 7/01/19
(Pre-refunded 7/01/12)
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,323,900
State Personal Income Tax, Series 2003A, 5.375%, 3/15/22
(Pre-refunded 3/15/13)
5,535 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 5,992,246
State University Educational Facilities, Series 2002A,
5.000%, 5/15/17 (Pre-refunded 5/15/12) - FGIC Insured
845 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 924,067
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded 7/15/10)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
525 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 544,058
1,125 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 1,165,838
5,000 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- (4) 5,412,850
Revenue Bonds, Series 2001A, 5.375%, 9/01/25
(Pre-refunded 9/01/11)
2,000 Long Island Power Authority, New York, Electric System General 9/13 at 100.00 AAA 2,168,620
Revenue Bonds, Series 2003C, 5.000%, 9/01/15
(Pre-refunded 9/01/13) - CIFG Insured
Longwood Central School District, Suffolk County, New York,
Series 2000:
1,500 5.750%, 6/15/17 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,659,645
1,500 5.750%, 6/15/18 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,659,645
5,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 5,286,300
Tax Fund Bonds, Series 1998A, 4.500%, 4/01/18 (Pre-refunded
10/01/15) - FGIC Insured
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
400 6.000%, 6/01/15 (Pre-refunded 6/01/10) 6/10 at 101.00 AAA 437,316
665 6.150%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 101.00 AAA 716,132
2,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 2,716,000
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27 (Pre-refunded 7/15/09)
1,250 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R (4) 1,402,587
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded 7/01/10)
2,000 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,157,360
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001A, 5.500%, 6/15/33 (Pre-refunded 6/15/10)
1,000 New York City Trust for Cultural Resources, New York, Revenue 7/19 at 100.00 AAA 1,065,470
Bonds, American Museum of Natural History, Series 1999A,
5.750%, 7/01/29 (Pre-refunded 7/01/19) - AMBAC Insured
245 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 AAA 266,695
Pass-Through Bonds, Series 2000B, 5.800%, 6/01/23
(Pre-refunded 6/01/10)
2,950 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 3,184,200
Personal Income Tax Revenue Bonds, Series 2003B,
5.000%, 3/15/22 (Pre-refunded 3/15/13)
31
Nuveen New York Performance Plus Municipal Fund, Inc. (NNP) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
New York State Urban Development Corporation, State Personal
Income Tax Revenue Bonds, State Facilities and Equipment, Series
2002A:
$ 2,860 5.375%, 3/15/19 (Pre-refunded 3/15/12) 3/12 at 100.00 AAA $ 3,115,083
2,000 5.375%, 3/15/20 (Pre-refunded 3/15/12) 3/12 at 100.00 AAA 2,178,380
2,095 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,355,241
Water Treatment Plant Bonds, Series 1994, 8.000%, 11/01/09 -
MBIA Insured (Alternative Minimum Tax) (ETM)
1,600 Triborough Bridge and Tunnel Authority, New York, General No Opt. Call AAA 1,758,432
Purpose Revenue Bonds, Series 1993B, 5.000%, 1/01/20 (ETM)
7,500 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 8,748,674
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded 1/01/22)
3,750 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 4,050,338
Series 1999-1, 6.250%, 7/15/27 (Mandatory put 7/15/19)
(Pre-refunded 7/15/09)
3,480 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 3,878,669
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
3,000 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 3,365,520
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded 7/15/10)
2,520 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB- (4) 2,833,236
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
65,535 Total U.S. Guaranteed 71,994,900
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.0% (6.0% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
3,100 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 3,327,168
3,100 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AAA 3,319,480
2,500 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 2,525,675
Revenue Bonds, Brooklyn Navy Yard Cogeneration Partners LP,
Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax)
4,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 4,206,960
Series 2000A, 5.250%, 11/15/40
New York State Power Authority, General Revenue Bonds,
Series 2006A:
1,225 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,331,134
820 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 887,765
2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 2,090,020
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara LP, Series 2001D,
5.550%, 11/15/24 (Mandatory put 11/15/15)
4,000 Suffolk County Industrial Development Agency, New York, 1/09 at 101.00 N/R 3,976,280
Revenue Bonds, Nissequogue Cogeneration Partners Facility,
Series 1998, 5.500%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,745 Total Utilities 21,664,482
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.1% (4.8% OF TOTAL INVESTMENTS)
700 Monroe County Water Authority, New York, Water System 8/11 at 101.00 AA 744,527
Revenue Bonds, Series 2001, 5.150%, 8/01/22
2,495 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,727,484
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 2,170,600
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
2,225 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA+ 2,409,786
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, Pooled
Loan Issue, Series 2002F:
$ 1,000 5.250%, 11/15/17 11/12 at 100.00 AAA $ 1,085,670
3,345 5.250%, 11/15/19 11/12 at 100.00 AAA 3,631,566
4,060 5.250%, 11/15/20 11/12 at 100.00 AAA 4,412,449
------------------------------------------------------------------------------------------------------------------------------------
15,825 Total Water and Sewer 17,182,082
------------------------------------------------------------------------------------------------------------------------------------
$ 336,180 Total Investments (cost $339,976,003) - 149.3% 359,333,688
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 5,584,435
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.7)% (124,300,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 240,618,123
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2006:
FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL RATE PAID RATE RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley $7,000,000 3 Month USD-LIBOR 5.771% Semi-Annually Quarterly 7/20/07 7/20/34 $457,659
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the annualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
33
Nuveen New York Dividend Advantage Municipal Fund (NAN)
Portfolio of
INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.4% (0.4% OF TOTAL INVESTMENTS)
$ 500 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 509,170
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.8% (1.9% OF TOTAL INVESTMENTS)
40 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 41,001
Pass-Through Bonds, Series 2000B, 5.800%, 6/01/23
445 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 455,475
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
900 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 928,341
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
365 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 372,694
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
1,045 4.750%, 6/01/22 6/16 at 100.00 BBB 1,068,293
1,125 5.000%, 6/01/26 6/16 at 100.00 BBB 1,148,287
------------------------------------------------------------------------------------------------------------------------------------
3,920 Total Consumer Staples 4,014,091
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.1% (10.3% OF TOTAL INVESTMENTS)
120 Cattaraugus County Industrial Development Agency, 5/16 at 100.00 BBB- 124,201
New York, Revenue Bonds, St. Bonaventure University,
Series 2006, 5.000%, 5/01/23
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,091,530
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
845 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 972,756
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 533,350
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20 -
FSA Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 1,335,838
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
1,750 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 AA 1,876,718
750 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 AA 803,385
370 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 385,103
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
Kenmore Housing Authority, New York, Revenue Bonds, State
University of New York at Buffalo Student Apartment Project,
Series 1999A:
3,050 5.500%, 8/01/19 - RAAI Insured 8/09 at 102.00 AA 3,220,800
2,750 5.500%, 8/01/24 - RAAI Insured 8/09 at 102.00 AA 2,902,928
3,070 Monroe County Industrial Development Agency, New York, 6/09 at 102.00 AA 3,221,013
Civic Facility Revenue Bonds, St. John Fisher College,
Series 1999, 5.375%, 6/01/24 - RAAI Insured
330 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 341,840
Civic Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
1,800 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,874,520
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 265,333
Revenue Bonds, Queens Baseball Stadium, Series 2006,
5.000%, 1/01/36 - AMBAC Insured
450 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 476,887
Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/36 - FGIC Insured
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 500 New York City Trust for Cultural Resources, New York, 7/10 at 101.00 A $ 541,100
Revenue Bonds, Museum of American Folk Art, Series 2000,
6.000%, 7/01/22 - ACA Insured
1,500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 AA 1,615,815
Civic Facility Revenue Bonds, Niagara University,
Series 2001A, 5.350%, 11/01/23 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
20,285 Total Education and Civic Organizations 21,583,117
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.5% (0.3% OF TOTAL INVESTMENTS)
600 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call Aa3 685,800
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 34.2% (23.5% OF TOTAL INVESTMENTS)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Medical Center, Series 1999:
1,120 6.000%, 5/01/19 5/09 at 101.00 N/R 1,142,826
1,460 6.000%, 5/01/29 5/09 at 101.00 N/R 1,480,133
2,385 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 101.00 AAA 2,485,862
Mortgage Hospital Revenue Bonds, Memorial Hospital of
William F. and Gertrude F. Jones Inc., Series 1999,
5.250%, 8/01/19 - MBIA Insured
4,825 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 5,082,027
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.450%, 8/01/29 - AMBAC Insured
Dormitory Authority of the State of New York, FHA-Insured
Mortgage Hospital Revenue Bonds, Victory Memorial Hospital,
Series 1999:
2,015 5.250%, 8/01/15 - MBIA Insured 8/09 at 101.00 AAA 2,106,662
2,000 5.375%, 8/01/25 - MBIA Insured 8/09 at 101.00 AAA 2,105,740
625 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 658,713
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AA 2,046,400
Nursing Home Mortgage Revenue Bonds, Gurwin Jewish
Geriatric Center of Long Island, Series 2005A, 4.900%, 2/15/41
2,600 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 2,683,954
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
Dormitory Authority of the State of New York, Insured Revenue
Bonds, Franciscan Health Partnership Obligated Group - Frances
Shervier Home and Hospital, Series 1997:
2,000 5.500%, 7/01/17 - RAAI Insured 7/07 at 102.00 AA 2,062,080
2,000 5.500%, 7/01/27 - RAAI Insured 7/07 at 102.00 AA 2,064,300
2,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 2,179,960
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
Dormitory Authority of the State of New York, Revenue Bonds,
Lenox Hill Hospital Obligated Group, Series 2001:
165 5.375%, 7/01/20 7/11 at 101.00 Ba2 171,516
500 5.500%, 7/01/30 7/11 at 101.00 Ba2 518,015
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 1,582,230
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35
1,575 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa2 1,704,150
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
250 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 Ba1 254,050
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
2,435 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,659,970
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
250 Dormitory Authority of the State of New York, Revenue Bonds, 1/07 at 102.00 B3 248,803
Nyack Hospital, Series 1996, 6.250%, 7/01/13
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 531,355
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 631,182
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
35
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,850 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA $ 1,917,618
Revenue Refunding Bonds, Wyckoff Heights Medical Center,
Series 1998H, 5.300%, 8/15/21 - MBIA Insured
905 East Rochester Housing Authority, New York, Senior Living 8/16 at 101.00 N/R 921,896
Revenue Bonds, Woodland Village Project, Series 2006,
5.500%, 8/01/33
420 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 435,490
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
1,750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 1,880,148
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
580 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 593,212
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
100 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 105,374
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
4,000 Ulster County Industrial Development Agency, New York, 11/09 at 101.00 A2 4,161,319
Civic Facility Revenue Bonds, Kingston Hospital, Series 1999,
5.650%, 11/15/24
3,675 Yates County Industrial Development Agency, New York, 8/09 at 101.00 AA+ 3,889,546
FHA-Insured Civic Facility Mortgage Revenue Bonds, Soldiers
and Sailors Memorial Hospital, Series 1999A, 5.650%, 2/01/39
650 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 B+ 700,141
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
46,735 Total Health Care 49,004,672
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1% (3.5% OF TOTAL INVESTMENTS)
2,585 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 2,757,471
Capital Fund Program Revenue Bonds, Series 2005A,
5.000%, 7/01/25 - FGIC Insured
3,000 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 3,124,860
Multifamily Housing Revenue Bonds, Series 2001A,
5.500%, 11/01/31
750 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 789,983
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
680 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 690,261
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
------------------------------------------------------------------------------------------------------------------------------------
7,015 Total Housing/Multifamily 7,362,575
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.4% (2.4% OF TOTAL INVESTMENTS)
645 Guam Housing Corporation, Mortgage-Backed Securities No Opt. Call AAA 745,775
Program Single Family Mortgage Revenue Bonds,
Series 1998A, 5.750%, 9/01/31 (Alternative Minimum Tax)
1,350 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 1,356,872
Revenue Bonds, Series 130, 4.650%, 4/01/27 (Alternative
Minimum Tax)
1,960 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 1,976,660
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 853,222
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,795 Total Housing/Single Family 4,932,529
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.7% (3.2% OF TOTAL INVESTMENTS)
Appleridge Retirement Community Inc., New York, GNMA
Collateralized Mortgage Revenue Bonds, Series 1999:
1,150 5.700%, 9/01/31 9/09 at 102.00 Aaa 1,230,466
1,250 5.750%, 9/01/41 9/09 at 102.00 Aaa 1,339,175
250 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 257,033
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
750 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 801,217
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001A-1, 7.250%, 7/01/16
600 New York State Dormitory Authority, GNMA Collateralized 2/17 at 103.00 AA 648,180
Revenue Bonds, Cabrini of Westchester Project, Series 2006,
5.200%, 2/15/41 (WI/DD, Settling 10/12/06)
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 2,325 Yonkers Industrial Development Agency, New York, FHA-Insured 2/09 at 101.00 AAA $ 2,412,746
Mortgage Revenue Bonds, Michael Malotz Skilled Nursing
Pavilion, Series 1999, 5.450%, 2/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,325 Total Long-Term Care 6,688,817
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.0% (7.5% OF TOTAL INVESTMENTS)
4,950 New York City, New York, General Obligation Bonds, 5/09 at 101.00 AAA 5,145,821
Fiscal Series 1999J, 5.125%, 5/15/29 - MBIA Insured
1,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 1,086,520
Fiscal Series 2004C, 5.250%, 8/15/16
New York City, New York, General Obligation Bonds,
Fiscal Series 2004E:
1,500 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,610,250
600 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 643,668
1,125 New York City, New York, General Obligation Bonds, 8/15 at 100.00 AAA 1,224,000
Fiscal Series 2006C, 5.000%, 8/01/16 - FSA Insured
800 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 844,440
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Rochester, New York, General Obligation Bonds, Series 1999:
720 5.250%, 10/01/18 - MBIA Insured No Opt. Call AAA 814,320
720 5.250%, 10/01/19 - MBIA Insured No Opt. Call AAA 818,021
2,280 Rockland County, New York, General Obligation Bonds, 10/09 at 101.00 AA- 2,476,969
Series 1999, 5.600%, 10/15/16
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
500 5.250%, 7/01/23 1/08 at 100.00 A3 508,405
500 5.250%, 7/01/24 1/08 at 100.00 A3 508,405
------------------------------------------------------------------------------------------------------------------------------------
14,695 Total Tax Obligation/General 15,680,819
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.8% (19.7% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,086,740
Series 2003A, 5.250%, 11/01/21
1,155 Buffalo Fiscal Stability Authority, New York, Sales Tax 9/15 at 100.00 AAA 1,248,844
Revenue State Aid Secured Bonds, Series 2005A,
5.000%, 9/01/18 - MBIA Insured
590 Dormitory Authority of the State of New York, Department 7/15 at 100.00 AAA 641,489
of Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 -
CIFG Insured
35 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 37,718
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.875%, 8/15/18 - FSA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 527,080
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, Service 4/12 at 100.00 AA- 1,065,970
Contract Bonds, Child Care Facilities Development Program,
Series 2002, 5.375%, 4/01/19
185 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 198,098
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
550 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 620,884
School Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Series 2002A:
2,000 5.250%, 11/15/25 - FSA Insured 11/12 at 100.00 AAA 2,141,320
2,000 5.000%, 11/15/30 11/12 at 100.00 AA 2,077,340
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
1,700 5.750%, 1/01/17 No Opt. Call AA- 1,955,102
1,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,055,160
1,130 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 1,186,048
Revenue Bonds, Series 2003, 5.500%, 1/01/34
2,180 Nassau County Interim Finance Authority, New York, Sales No Opt. Call AAA 2,399,962
and Use Tax Revenue Bonds, Series 2004H, 5.250%, 11/15/13 -
AMBAC Insured
37
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 1,000 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA $ 1,066,420
1,100 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,171,500
810 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 861,508
1,875 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,984,988
1,670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,758,310
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23
700 New York Convention Center Development Corporation, 11/15 at 100.00 AAA 731,899
Hotel Unit Fee Revenue Bonds, Series 2005, 5.000%, 11/15/44 -
AMBAC Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,059,640
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
1,190 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 1,253,653
Income Tax Revenue Bonds, Economic Development and
Housing, Series 2006A, 5.000%, 3/15/36
3,400 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA 3,957,226
Trust Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
4,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 4,313,119
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 2,148,040
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,084,890
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
3,345 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 3,528,774
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.250%, 10/15/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,115 Total Tax Obligation/Limited 41,161,722
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.4% (9.2% OF TOTAL INVESTMENTS)
700 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 746,872
Series 2001A, 5.625%, 7/15/25
1,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 1,070,650
Transportation Revenue Refunding Bonds, Series 2002A,
5.125%, 11/15/22 - FGIC Insured
1,750 New York City Industrial Development Agency, New York, 8/16 at 101.00 B 2,065,735
American Airlines-JFK International Airport Special Facility
Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B 1,155,370
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
865 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 913,111
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
700 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 741,944
2,100 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 2,221,107
500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 525,220
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
800 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 867,816
1,300 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,385,397
615 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 653,554
3,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,089,850
Revenue Bonds, One Hundred Twentieth Series 2000,
5.750%, 10/15/26 - MBIA Insured (Alternative Minimum Tax)
1,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 1,074,840
Purpose Revenue Bonds, Series 2001A, 5.250%, 1/01/16
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,647,100
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
17,830 Total Transportation 19,158,566
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.9% (11.6% OF TOTAL INVESTMENTS) (4)
$ 510 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA $ 557,721
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded 7/15/10)
885 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 917,126
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22
(Pre-refunded 6/01/08) - FSA Insured
1,250 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 1,287,813
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured (ETM)
5,520 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 6,126,314
Tax Fund Bonds, Series 1999A, 5.250%, 4/01/23
(Pre-refunded 10/01/14) - FSA Insured
Monroe Tobacco Asset Securitization Corporation, New York,
Tobacco Settlement Asset-Backed Bonds, Series 2000:
265 6.000%, 6/01/15 (Pre-refunded 6/01/10) 6/10 at 101.00 AAA 289,722
1,520 6.150%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 101.00 AAA
620 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R (4) 695,683
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded 7/01/10)
50 New York City, New York, General Obligation Bonds, 5/09 at 101.00 AAA 52,510
Fiscal Series 1999J, 5.125%, 5/15/29 (Pre-refunded 5/15/09) -
MBIA Insured
160 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 AAA 174,168
Pass-Through Bonds, Series 2000B, 5.800%, 6/01/23
(Pre-refunded 6/01/10)
1,000 New York State Thruway Authority, Highway and Bridge 4/13 at 100.00 AAA 1,096,460
Trust Fund Bonds, Second Generation, Series 2003A,
5.250%, 4/01/23 (Pre-refunded 4/01/13) - MBIA Insured
1,000 New York State Urban Development Corporation, State 3/12 at 100.00 AAA 1,076,880
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002A, 5.125%, 3/15/27 (Pre-refunded
3/15/12)
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 Aa2 (4) 3,423,090
Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28
(Pre-refunded 1/01/22)
2,250 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 2,430,203
Series 1999-1, 6.250%, 7/15/27 (Mandatory put 7/15/19)
(Pre-refunded 7/15/09)
600 Utica Industrial Development Agency, New York, Revenue 6/09 at 101.00 N/R (4) 652,932
Bonds, Utica College, Series 2004A, 6.875%, 12/01/34
(Pre-refunded 6/01/09)
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 835,920
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 1,402,300
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded 7/15/10)
1,400 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB- (4) 1,574,020
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
22,030 Total U.S. Guaranteed 24,229,735
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2% (4.9% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
2,500 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 2,683,200
2,500 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AAA 2,677,000
2,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 2,104,260
Series 2000A, 5.250%, 11/15/30
New York State Power Authority, General Revenue Bonds,
Series 2006A:
700 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 760,648
465 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 503,428
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 263,193
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001C,
5.625%, 11/15/24 (Mandatory put 11/15/14) (Alternative
Minimum Tax)
600 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 633,870
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara LP, Series 2001B,
5.550%, 11/15/24 (Mandatory put 11/15/13)
(Alternative Minimum Tax)
695 Suffolk County Industrial Development Agency, New York, No Opt. Call N/R 692,998
Revenue Bonds, Nissequogue Cogeneration Partners
Facility, Series 1998, 4.875%, 1/01/08 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,710 Total Utilities 10,318,597
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen New York Dividend Advantage Municipal Fund (NAN) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.6% OF TOTAL INVESTMENTS)
$ 1,130 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AA+ $ 1,223,847
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
1,955 New York State Environmental Facilities Corporation, State 11/12 at 100.00 AAA 2,122,485
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, Pooled Loan Issue, Series 2002F, 5.250%, 11/15/17
------------------------------------------------------------------------------------------------------------------------------------
3,085 Total Water and Sewer 3,346,332
------------------------------------------------------------------------------------------------------------------------------------
$ 195,640 Total Investments (cost $198,202,130) - 145.8% 208,676,542
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 3,470,814
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (69,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 143,147,356
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2006:
FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL RATE PAID RATE RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley $4,500,000 3 Month USD-LIBOR 5.771% Semi-Annually Quarterly 7/20/07 7/20/34 $294,210
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the annualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
40
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK)
Portfolio of
INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 280,044
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.9% (2.0% OF TOTAL INVESTMENTS)
440 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 450,358
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 527,685
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
225 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 229,743
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds,
Series 2006:
775 4.750%, 6/01/22 6/16 at 100.00 BBB 792,275
835 5.000%, 6/01/26 6/16 at 100.00 BBB 852,284
------------------------------------------------------------------------------------------------------------------------------------
2,775 Total Consumer Staples 2,852,345
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.2% (11.1% OF TOTAL INVESTMENTS)
2,750 Albany Industrial Development Agency, New York, Revenue 7/11 at 101.00 Aaa 2,950,833
Bonds, St. Rose College, Series 2001A, 5.375%, 7/01/31 -
AMBAC Insured
1,975 Amherst Industrial Development Agency, New York, Revenue 8/11 at 102.00 AAA 2,129,307
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Village Green Project, Series 2001A, 5.250%, 8/01/31 -
AMBAC Insured
90 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 93,151
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
2,000 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,064,680
Bonds, New York Medical College, Series 1998,
5.000%, 7/01/21 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,091,530
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 1,066,660
Canisius College, Series 2000, 5.250%, 7/01/30 - MBIA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 575,595
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
1,265 Dormitory Authority of the State of New York, Third General 7/08 at 102.00 AAA 1,324,784
Resolution Consolidated Revenue Bonds, City University
System, Series 1998-1, 5.250%, 7/01/25 - FGIC Insured
265 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 275,817
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
2,190 Monroe County Industrial Development Agency, New York, 6/11 at 102.00 AA 2,320,502
Civic Facility Revenue Bonds, St. John Fisher College,
Series 2001, 5.250%, 6/01/26 - RAAI Insured
245 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 253,791
Civic Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,145,540
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 265,333
Revenue Bonds, Queens Baseball Stadium, Series 2006,
5.000%, 1/01/36 - AMBAC Insured
450 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 476,887
Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/36 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,080 Total Education and Civic Organizations 16,034,410
------------------------------------------------------------------------------------------------------------------------------------
41
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 500 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call Aa3 $ 571,500
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.8% (15.0% OF TOTAL INVESTMENTS)
3,000 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 3,166,140
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
2,505 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 2,645,455
Mortgage Revenue Bonds, New York Hospital Medical
Center of Queens, Series 1999, 5.550%, 8/15/29 -
AMBAC Insured
1,500 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 1,561,620
Mortgage Revenue Refunding Bonds, United Health Services,
Series 1997, 5.375%, 8/01/27 - AMBAC Insured
1,620 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,722,595
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
1,700 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 1,754,893
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
500 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AA 515,520
Bonds, Franciscan Health Partnership Obligated Group -
Frances Shervier Home and Hospital, Series 1997, 5.500%,
7/01/17 - RAAI Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba2 518,015
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 1,265,784
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 Ba1 1,270,250
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
1,230 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,343,640
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
100 Dormitory Authority of the State of New York, Revenue Bonds, 1/07 at 102.00 B3 99,521
Nyack Hospital, Series 1996, 6.250%, 7/01/13
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 525,985
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
635 East Rochester Housing Authority, New York, Senior Living 8/16 at 101.00 N/R 646,855
Revenue Bonds, Woodland Village Project, Series 2006,
5.500%, 8/01/33
290 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 300,695
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
670 Nassau County Industrial Development Agency, New York, No Opt. Call A3 702,455
Revenue Refunding Bonds, North Shore Health System
Obligated Group, Series 2001B, 5.875%, 11/01/11
850 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 A2 878,790
Health System Revenue Bonds, Series 1999A, 5.250%, 2/15/17
500 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 537,185
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
495 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 506,276
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
500 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 526,870
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
Suffolk County Industrial Development Agency, New York,
Revenue Bonds, Huntington Hospital, Series 2002C:
425 6.000%, 11/01/22 11/12 at 100.00 Baa1 459,663
610 5.875%, 11/01/32 11/12 at 100.00 Baa1 649,205
------------------------------------------------------------------------------------------------------------------------------------
20,580 Total Health Care 21,597,412
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7% (1.9% OF TOTAL INVESTMENTS)
1,000 New York City Housing Development Corporation, New York, 11/11 at 100.00 AA 1,030,630
Multifamily Housing Revenue Bonds, Series 2001C-2,
5.400%, 11/01/33 (Alternative Minimum Tax)
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
$ 455 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA $ 472,299
225 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 233,357
500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 526,655
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
440 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 446,640
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,620 Total Housing/Multifamily 2,709,581
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.4% (1.6% OF TOTAL INVESTMENTS)
950 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 954,836
Revenue Bonds, Series 130, 4.650%, 4/01/27 (Alternative
Minimum Tax)
1,385 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 1,396,772
Revenue Bonds, Series 82, 5.650%, 4/01/30 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,335 Total Housing/Single Family 2,351,608
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.6% (2.5% OF TOTAL INVESTMENTS)
2,150 Dormitory Authority of the State of New York, Insured 7/11 at 102.00 AAA 2,280,613
Revenue Bonds, Rehabilitation Association Pooled Loan
Program 1, Series 2001A, 5.000%, 7/01/23 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Providence Rest, Series 2005:
50 5.125%, 7/01/30 - ACA Insured 7/15 at 100.00 A 52,292
175 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 A 179,923
525 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 560,852
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001A-1, 7.250%, 7/01/16
450 New York State Dormitory Authority, GNMA Collateralized 2/17 at 103.00 AA 486,135
Revenue Bonds, Cabrini of Westchester Project, Series 2006,
5.200%, 2/15/41 (WI/DD, Settling 10/12/06)
------------------------------------------------------------------------------------------------------------------------------------
3,350 Total Long-Term Care 3,559,815
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.4% (8.5% OF TOTAL INVESTMENTS)
1,775 Bath Central School District, Steuben County, New York, 6/12 at 100.00 AAA 1,787,549
General Obligation Bonds, Series 2002, 4.000%, 6/15/18 -
FGIC Insured
3,620 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 3,757,849
Series 1998H, 5.375%, 8/01/27 - MBIA Insured
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA- 814,890
Series 2004C, 5.250%, 8/15/16
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
1,220 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,309,670
1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,180,058
750 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 816,000
Series 2006C, 5.000%, 8/01/16 - FSA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 2,153,140
Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
250 5.250%, 7/01/23 1/08 at 100.00 A3 254,203
250 5.250%, 7/01/24 1/08 at 100.00 A3 254,203
------------------------------------------------------------------------------------------------------------------------------------
11,715 Total Tax Obligation/General 12,327,562
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.0% (19.2% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,086,740
Series 2003A, 5.250%, 11/01/21
250 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 263,540
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
43
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Dormitory Authority of the State of New York, Service Contract
Bonds, Child Care Facilities Development Program, Series 2002:
$ 1,905 5.375%, 4/01/17 4/12 at 100.00 AA- $ 2,035,512
1,000 5.375%, 4/01/19 4/12 at 100.00 AA- 1,065,970
125 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 133,850
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
1,750 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 1,873,655
Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured
1,000 Metropolitan Transportation Authority, New York, State Service No Opt. Call AA- 1,150,060
Contract Refunding Bonds, Series 2002A, 5.750%, 1/01/17
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 587,776
Revenue Bonds, Series 2003, 5.500%, 1/01/34
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
1,140 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,214,100
835 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 888,098
500 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 529,330
1,000 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,052,880
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,057,170
Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,059,640
Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21
840 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 884,932
Income Tax Revenue Bonds, Economic Development and
Housing, Series 2006A, 5.000%, 3/15/36
New York State Municipal Bond Bank Agency, Buffalo, Special
Program Revenue Bonds, Series 2001A:
1,070 5.250%, 5/15/23 - AMBAC Insured 5/11 at 100.00 AAA 1,134,296
1,125 5.250%, 5/15/24 - AMBAC Insured 5/11 at 100.00 AAA 1,192,601
2,300 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA 2,676,947
Trust Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
2,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 2,156,560
2,100 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 2,255,442
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,084,890
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
2,250 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 BBB 2,322,225
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
25,750 Total Tax Obligation/Limited 27,706,214
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.2% (13.2% OF TOTAL INVESTMENTS)
2,000 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 2,142,000
Series 2001A, 5.625%, 7/15/20
460 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 487,347
Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/25 -
FGIC Insured
1,250 New York City Industrial Development Agency, New York, 8/16 at 101.00 B 1,475,525
American Airlines-JFK International Airport Special Facility
Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B 1,155,370
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
485 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 511,976
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
$ 300 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA $ 317,976
1,300 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 1,374,971
3,400 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 3,571,495
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
750 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 813,578
1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,065,690
280 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 297,553
2,195 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 2,253,343
Revenue Bonds, One Hundred Twentieth Series 2000,
5.500%, 10/15/35 - MBIA Insured (Alternative Minimum Tax)
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,647,100
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 913,146
Lien General Purpose Revenue Refunding Bonds,
Series 2002E, 5.500%, 11/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
17,700 Total Transportation 19,027,070
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.9% (13.7% OF TOTAL INVESTMENTS) (4)
1,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 1,038,320
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08) - AMBAC Insured
2,750 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 3,004,705
Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29
(Pre-refunded 10/01/14) - FSA Insured
10 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 10,431
Series 1998H, 5.375%, 8/01/27 (Pre-refunded 8/01/08) -
MBIA Insured
3,205 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 3,404,510
Contract Revenue Bonds, Correctional Facilities,
Series 2000C, 5.125%, 1/01/21 (Pre-refunded 1/01/11) -
FSA Insured
2,500 New York State Urban Development Corporation, State 3/12 at 100.00 AAA 2,692,200
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002A, 5.125%, 3/15/27 (Pre-refunded
3/15/12)
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/11 at 100.00 AAA 3,201,689
Purpose Revenue Bonds, Series 1996B, 5.200%, 1/01/22
(Pre-refunded 1/01/11)
5,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 5,400,447
Series 1999-1, 6.250%, 7/15/27 (Mandatory put 7/15/19)
(Pre-refunded 7/15/09)
900 Utica Industrial Development Agency, New York, Revenue 6/09 at 101.00 N/R (4) 979,398
Bonds, Utica College, Series 2004A, 6.875%, 12/01/34
(Pre-refunded 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
18,365 Total U.S. Guaranteed 19,731,700
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6% (9.3% OF TOTAL INVESTMENTS)
1,500 Long Island Power Authority, New York, Electric System 5/11 at 100.00 A- 1,584,990
General Revenue Bonds, Series 2001L, 5.375%, 5/01/33
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
1,700 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 1,824,576
1,700 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AAA 1,820,360
1,000 New York City Industrial Development Agency, New York, 10/08 at 102.00 BBB- 1,010,270
Revenue Bonds, Brooklyn Navy Yard Cogeneration Partners
LP, Series 1997, 5.750%, 10/01/36 (Alternative Minimum Tax)
2,000 New York State Power Authority, General Revenue Bonds, 11/10 at 100.00 Aa2 2,103,480
Series 2000A, 5.250%, 11/15/40
New York State Power Authority, General Revenue Bonds,
Series 2006A:
320 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 347,725
215 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 232,768
450 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 471,299
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Mandatory put 11/15/12) (Alternative
Minimum Tax)
45
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) (continued)
Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 $ 2,090,020
Solid Waste Disposal Facility Revenue Refunding Bonds,
American Ref-Fuel Company of Niagara LP, Series 2001D,
5.550%, 11/15/24 (Mandatory put 11/15/15)
Suffolk County Industrial Development Agency, New York, Revenue
Bonds, Nissequogue Cogeneration Partners Facility, Series 1998:
1,250 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 1,236,475
750 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 745,553
------------------------------------------------------------------------------------------------------------------------------------
12,885 Total Utilities 13,467,516
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 1,085,300
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
1,000 New York State Environmental Facilities Corporation, 11/12 at 100.00 AAA 1,085,670
State Clean Water and Drinking Water Revolving Funds
Revenue Bonds, Pooled Loan Issue, Series 2002F,
5.250%, 11/15/17
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Water and Sewer 2,170,970
------------------------------------------------------------------------------------------------------------------------------------
$ 135,930 Total Investments (cost $138,353,123) - 145.7% 144,387,747
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,679,201
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.4)% (47,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 99,066,948
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2006:
FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL RATE PAID RATE RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $1,700,000 3 Month USD-LIBOR 5.768% Semi-Annually Quarterly 7/20/07 7/20/29 $100,608
Morgan Stanley 1,600,000 3 Month USD-LIBOR 5.771% Semi-Annually Quarterly 7/20/07 7/20/34 104,608
------------------------------------------------------------------------------------------------------------------------------------
$205,216
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the annualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
See accompanying notes to financial statements.
40
Statement of
ASSETS AND LIABILITIES September 30, 2006
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $142,986,279,
$339,976,003, $198,202,130
and $138,353,123, respectively) $150,751,513 $359,333,688 $208,676,542 $144,387,747
Cash -- 1,123,142 181,752 --
Receivables:
Interest 2,149,349 5,184,926 3,129,276 2,140,168
Investments sold -- 270,000 663,497 442,331
Unrealized appreciation on forward swaps 260,958 457,659 294,210 205,216
Other assets 2,476 44,024 9,969 5,947
------------------------------------------------------------------------------------------------------------------------------------
Total assets 153,164,296 366,413,439 212,955,246 147,181,409
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 779 -- -- 549,185
Payable for investments purchased 479,912 1,173,117 639,882 479,912
Accrued expenses:
Management fees 67,778 186,620 83,638 46,007
Other 42,982 95,202 48,646 27,771
Preferred share dividends payable N/A 40,377 35,724 11,586
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 591,451 1,495,316 807,890 1,114,461
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value N/A 124,300,000 69,000,000 47,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $152,572,845 $240,618,123 $143,147,356 $ 99,066,948
====================================================================================================================================
Common shares outstanding 15,120,364 15,031,938 9,242,495 6,480,352
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 10.09 $ 16.01 $ 15.49 $ 15.29
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 151,204 $ 150,319 $ 92,425 $ 64,804
Paid-in surplus 144,256,690 219,028,481 131,299,307 92,022,545
Undistributed (Over-distribution of) net investment income 379,037 595,345 (34,993) 62,531
Accumulated net realized gain (loss) from investments (240,278) 1,028,634 1,021,995 677,228
Net unrealized appreciation (depreciation) of investments
and derivative transactions 8,026,192 19,815,344 10,768,622 6,239,840
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $152,572,845 $240,618,123 $143,147,356 $ 99,066,948
====================================================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 Unlimited Unlimited
Preferred N/A 1,000,000 Unlimited Unlimited
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
47
Statement of
OPERATIONS Year Ended September 30, 2006
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $7,566,210 $17,964,616 $10,329,217 $ 7,001,112
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 822,131 2,270,234 1,335,720 923,447
Preferred shares - auction fees N/A 310,918 172,490 117,573
Preferred shares - dividend disbursing agent fees N/A 40,000 10,000 10,000
Shareholders' servicing agent fees and expenses 43,916 43,574 4,704 1,746
Custodian's fees and expenses 49,097 90,989 57,817 41,905
Directors'/Trustees' fees and expenses 3,454 7,859 4,580 3,109
Professional fees 12,376 24,036 17,243 15,193
Shareholders' reports - printing and mailing expenses 29,641 38,387 17,301 17,471
Stock exchange listing fees 9,964 10,003 10,012 550
Investor relations expense 18,758 37,524 21,024 16,469
Other expenses 8,159 29,609 15,638 15,835
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit,
expense reimbursement and legal fee refund 997,496 2,903,133 1,666,529 1,163,298
Custodian fee credit (18,879) (45,628) (18,905) (17,542)
Expense reimbursement -- -- (403,983) (398,769)
Legal fee refund (13,382) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 965,235 2,857,505 1,243,641 746,987
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,600,975 15,107,111 9,085,576 6,254,125
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 377,490 1,003,774 1,004,669 677,240
Change in net unrealized appreciation (depreciation)
of investments (461,131) (1,539,543) (1,492,955) (555,856)
Change in net unrealized appreciation (depreciation)
of forward swaps 260,958 457,659 294,210 205,216
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 177,317 (78,110) (194,076) 326,600
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A (3,020,062) (1,905,342) (1,292,953)
From accumulated net realized gains N/A (720,259) (267,113) (201,619)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Preferred shareholders N/A (3,740,321) (2,172,455) (1,494,572)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $6,778,292 $11,288,680 $ 6,719,045 $ 5,086,153
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
48
Statement of
CHANGES IN NET ASSETS
NEW YORK VALUE (NNY) NEW YORK PERFORMANCE PLUS (NNP)
----------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/06 9/30/05 9/30/06 9/30/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,600,975 $ 6,771,319 $ 15,107,111 $ 15,760,974
Net realized gain (loss) from investments 377,490 1,440,260 1,003,774 5,223,289
Change in net unrealized appreciation
(depreciation) of investments (461,131) (830,389) (1,539,543) (3,719,101)
Change in net unrealized appreciation
(depreciation) of forward swaps 260,958 -- 457,659 --
Distributions to Preferred Shareholders:
From net investment income N/A N/A (3,020,062) (2,030,536)
From accumulated net realized gains N/A N/A (720,259) (72,204)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 6,778,292 7,381,190 11,288,680 15,162,422
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,441,277) (6,459,423) (13,326,460) (14,852,006)
From accumulated net realized gains -- -- (4,504,776) (1,194,491)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (6,441,277) (6,459,423) (17,831,236) (16,046,497)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- 905,791 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common Shares
from capital share transactions -- -- 905,791 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 337,015 921,767 (5,636,765) (884,075)
Net assets applicable to Common
shares at the beginning of year 152,235,830 151,314,063 246,254,888 247,138,963
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $152,572,845 $152,235,830 $240,618,123 $246,254,888
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 379,037 $ 226,770 $ 595,345 $ 1,858,442
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
49
Statement of
CHANGES IN NET ASSETS (continued)
NEW YORK NEW YORK
DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK)
--------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/06 9/30/05 9/30/06 9/30/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,085,576 $ 9,492,793 $ 6,254,125 $ 6,536,758
Net realized gain (loss) from investments 1,004,669 3,413,773 677,240 1,513,468
Change in net unrealized appreciation
(depreciation) of investments (1,492,955) (2,619,438) (555,856) (816,269)
Change in net unrealized appreciation
(depreciation) of forward swaps 294,210 -- 205,216 --
Distributions to Preferred Shareholders:
From net investment income (1,905,342) (1,210,994) (1,292,953) (824,602)
From accumulated net realized gains (267,113) -- (201,619) (26,248)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 6,719,045 9,076,134 5,086,153 6,383,107
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,210,579) (9,067,881) (5,624,629) (6,141,020)
From accumulated net realized gains (1,716,946) -- (1,311,855) (399,692)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (9,927,525) (9,067,881) (6,936,484) (6,540,712)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 654,812 100,992 310,831 57,704
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common Shares
from capital share transactions 654,812 100,992 310,831 57,704
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,553,668) 109,245 (1,539,500) (99,901)
Net assets applicable to Common
shares at the beginning of year 145,701,024 145,591,779 100,606,448 100,706,349
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $143,147,356 $145,701,024 $ 99,066,948 $100,606,448
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ (34,993) $ 1,013,776 $ 62,531 $ 724,270
====================================================================================================================================
See accompanying notes to financial statements.
50
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The New York funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New York Municipal Value Fund,
Inc. (NNY), Nuveen New York Performance Plus Municipal Fund, Inc. (NNP), Nuveen
New York Dividend Advantage Municipal Fund (NAN) and Nuveen New York Dividend
Advantage Municipal Fund 2 (NXK). All of the Funds' Common shares trade on the
New York Stock Exchange, with the exception of New York Dividend Advantage 2's
(NXK) Common shares which trade on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end
management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
New York state income taxes by investing primarily in a diversified portfolio of
municipal obligations issued by state and local government authorities within
the state of New York or certain U.S. territories.
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 establishes 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. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. 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 or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At September 30, 2006, New
York Value (NNY), New York Performance Plus (NNP), New York Dividend Advantage
(NAN) and New York Dividend Advantage 2 (NXK) had outstanding
when-issued/delayed delivery purchase commitments of $479,912, $1,173,117,
$639,882 and $479,912, respectively.
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.
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 each Fund's shareholders. Legal fee refund presented
on the Statement of Operations for New York Value (NNY)reflects a refund of
workout expenditures paid in a prior reporting period.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and New York state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. All monthly tax-exempt income dividends paid during the fiscal
year ended September 30, 2006, have been designated Exempt Interest Dividends.
Net realized capital gains and ordinary income distributions paid by the Funds
are subject to federal taxation.
51
Notes to
FINANCIAL STATEMENTS (continued)
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
New York Value (NNY) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
NEW YORK NEW YORK NEW YORK
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 2
(NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Number of shares:
Series M 1,600 -- --
Series T 800 -- --
Series W 2,000 -- 1,880
Series TH -- -- --
Series F 572 2,760 --
--------------------------------------------------------------------------------
Total 4,972 2,760 1,880
================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
52
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
NEW YORK
NEW YORK VALUE (NNY) PERFORMANCE PLUS (NNP)
-------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/06 9/30/05 9/30/06 9/30/05
----------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 54,803 --
==========================================================================================================
NEW YORK NEW YORK
DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE 2
(NAN) (NXK)
-------------------- -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/06 9/30/05 9/30/06 9/30/05
----------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 40,447 6,166 19,722 3,630
==========================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended September 30, 2006,
were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------
Purchases $19,691,113 $45,985,824 $30,454,216 $23,014,014
Sales and maturities 19,307,080 48,640,627 32,505,859 20,134,436
============================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions. 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 September 30, 2006, the cost of investments was as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------
Cost of investments $142,732,427 $339,664,721 $198,128,980 $138,309,155
============================================================================================================
53
Notes to
FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2006, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $8,071,191 $19,769,495 $10,569,471 $6,096,136
Depreciation (52,105) (100,528) (21,909) (17,544)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $8,019,086 $19,668,967 $10,547,562 $6,078,592
============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at September 30, 2006, the Funds' tax year end,
were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $661,960 $1,318,251 $532,934 $446,399
Undistributed net ordinary income ** -- 5,811 33 8,211
Undistributed net long-term capital gains -- 1,028,634 1,021,995 677,229
============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on September 1, 2006, paid on October 2, 2006.
** 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 tax years ended September 30,
2006 and September 30, 2005, was designated for purposes of the dividends paid
deduction as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2006 (NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,441,277 $16,479,183 $10,219,867 $6,960,390
Distributions from net ordinary income ** -- 21,436 -- 30,316
Distributions from net long-term capital gains*** -- 5,225,035 1,984,059 1,502,388
============================================================================================================
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2005 (NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,441,278 $16,930,267 $10,302,766 $6,979,318
Distributions from net ordinary income ** 17,730 34,069 -- 3,548
Distributions from net long-term capital gains -- 1,266,695 -- 425,821
============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended September 30, 2006.
At September 30, 2006, New York Value (NNY) had unused capital loss
carryforwards of $240,278 available for federal income tax purposes to be
applied against future capital gains, if any. If not applied the carryforwards
will expire in 2012.
54
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components -- a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), and a specific fund-level component, based only
on the amount of assets within each individual fund. This pricing structure
enables Nuveen fund shareholders to benefit from growth in the assets within
each individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
New York Value (NNY) pays an annual fund-level fee, payable monthly, of .15% of
the average daily net assets of the Fund, as well as 4.125% of the gross
interest income of the Fund.
The annual fund-level fee, payable monthly, for each Fund (excluding New York
Value (NNY)) is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS NEW YORK PERFORMANCE PLUS (NNP)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS NEW YORK DIVIDEND ADVANTAGE (NAN)
(INCLUDING NET ASSETS NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of September 30, 2006, the complex-level fee rate was .1857%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to 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.
55
Notes to
FINANCIAL STATEMENTS (continued)
For the first ten years of New York Dividend Advantage's (NAN) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage (NAN) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of New York Dividend Advantage 2's (NXK) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage 2 (NXK) for
any portion of its fees and expenses beyond March 31, 2011.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released 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 evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
Financial Accounting Standards Board Statement on Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards (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 September 30, 2006, the Funds do 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.
56
7. SUBSEQUENT EVENT
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on November 1, 2006, to shareholders of record
on October 15, 2006, as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Dividend per share $.0355 $.0665 $.0655 $.0655
================================================================================
57
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from From Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW YORK VALUE (NNY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 $10.07 $ .44 $ .01 N/A N/A $ .45 $ (.43) $ -- $ (.43)
2005 10.01 .45 .04 N/A N/A .49 (.43) -- (.43)
2004 9.95 .45 .04 N/A N/A .49 (.43) -- (.43)
2003 10.16 .44 (.19) N/A N/A .25 (.46) -- (.46)
2002 9.86 .47 .32 N/A N/A .79 (.49) -- (.49)
NEW YORK PERFORMANCE PLUS (NNP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 16.44 1.01 --* (.20) (.05) .76 (.89) (.30) (1.19)
2005 16.50 1.05 .10 (.14) -- 1.01 (.99) (.08) (1.07)
2004 16.57 1.08 .18 (.06) (.01) 1.19 (1.01) (.25) (1.26)
2003 17.11 1.10 (.34) (.06) (.02) .68 (.99) (.23) (1.22)
2002 15.95 1.13 1.07 (.11) -- 2.09 (.93) -- (.93)
NEW YORK DIVIDEND ADVANTAGE (NAN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 15.83 .98 --* (.21) (.03) .74 (.89) (.19) (1.08)
2005 15.83 1.03 .09 (.13) -- .99 (.99) -- (.99)
2004 15.66 1.06 .16 (.06) -- 1.16 (.99) -- (.99)
2003 15.85 1.07 (.24) (.07) -- .76 (.95) -- (.95)
2002 14.86 1.07 .89 (.11) -- 1.85 (.86) -- (.86)
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 15.57 .97 .05 (.20) (.03) .79 (.87) (.20) (1.07)
2005 15.60 1.01 .10 (.13) -- .98 (.95) (.06) (1.01)
2004 15.44 1.02 .20 (.06) -- 1.16 (.95) (.05) (1.00)
2003 15.62 1.04 (.18) (.07) (.01) .78 (.91) (.06) (.97)
2002 14.55 1.04 .99 (.11) -- 1.92 (.85) -- (.85)
====================================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===========================================================================================
NEW YORK VALUE (NNY)
-------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 $ -- $10.09 $ 9.51 7.50% 4.56%
2005 -- 10.07 9.26 5.88 4.95
2004 -- 10.01 9.15 5.29 5.04
2003 -- 9.95 9.11 1.65 2.59
2002 -- 10.16 9.42 4.55 8.26
NEW YORK PERFORMANCE
PLUS (NNP)
-------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 -- 16.01 15.88 6.69 4.91
2005 -- 16.44 16.01 9.37 6.29
2004 -- 16.50 15.66 8.19 7.55
2003 -- 16.57 15.66 1.88 4.25
2002 -- 17.11 16.60 14.44 13.65
NEW YORK DIVIDEND
ADVANTAGE (NAN)
-------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 -- 15.49 15.60 3.49 4.91
2005 -- 15.83 16.11 14.24 6.38
2004 -- 15.83 15.01 6.13 7.68
2003 -- 15.66 15.09 3.86 5.04
2002 -- 15.85 15.47 13.57 12.95
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
-------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 -- 15.29 15.47 7.96 5.37
2005 -- 15.57 15.34 10.61 6.45
2004 -- 15.60 14.82 9.02 7.80
2003 .01 15.44 14.55 5.35 5.39
2002 -- 15.62 14.78 8.48 13.67
===========================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------
Before Credit/Reimbursement/Refund After Credit/Reimbursement /Refund***
---------------------------------- -------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
NEW YORK VALUE (NNY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 $152,573 .66% 4.35% .64% 4.37% 13%
2005 152,236 .66 4.44 .66 4.45 18
2004 151,314 .72 4.52 .72 4.52 9
2003 150,418 .88 4.37 .87 4.38 10
2002 153,580 .79 4.76 .78 4.76 11
NEW YORK PERFORMANCE
PLUS (NNP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 240,618 1.22 6.33 1.20 6.35 13
2005 246,255 1.20 6.36 1.20 6.37 16
2004 247,139 1.21 6.58 1.21 6.59 5
2003 247,777 1.22 6.67 1.21 6.67 14
2002 255,890 1.24 7.08 1.23 7.09 19
NEW YORK DIVIDEND
ADVANTAGE (NAN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 143,147 1.18 6.11 .88 6.41 15
2005 145,701 1.16 6.13 .80 6.50 20
2004 145,592 1.17 6.38 .74 6.81 8
2003 143,886 1.19 6.50 .74 6.95 8
2002 145,599 1.21 6.76 .75 7.22 11
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2006 99,067 1.19 5.96 .76 6.38 14
2005 100,606 1.18 6.01 .73 6.46 19
2004 100,706 1.17 6.19 .72 6.64 7
2003 99,701 1.19 6.41 .75 6.85 8
2002 100,886 1.21 6.69 .74 7.16 16
====================================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===================================================================
NEW YORK VALUE (NNY)
-------------------------------------------------------------------
Year Ended 9/30:
2006 N/A N/A N/A
2005 N/A N/A N/A
2004 N/A N/A N/A
2003 N/A N/A N/A
2002 N/A N/A N/A
NEW YORK PERFORMANCE
PLUS (NNP)
-------------------------------------------------------------------
Year Ended 9/30:
2006 124,300 25,000 73,395
2005 124,300 25,000 74,528
2004 124,300 25,000 74,706
2003 124,300 25,000 74,834
2002 124,300 25,000 76,466
NEW YORK DIVIDEND
ADVANTAGE (NAN)
-------------------------------------------------------------------
Year Ended 9/30:
2006 69,000 25,000 76,865
2005 69,000 25,000 77,790
2004 69,000 25,000 77,751
2003 69,000 25,000 77,133
2002 69,000 25,000 77,753
NEW YORK DIVIDEND
ADVANTAGE 2 (NXK)
-------------------------------------------------------------------
Year Ended 9/30:
2006 47,000 25,000 77,695
2005 47,000 25,000 78,514
2004 47,000 25,000 78,567
2003 47,000 25,000 78,033
2002 47,000 25,000 78,663
===================================================================
N/A Fund is not authorized to issue Preferred shares.
* Per share Net Realized/Unrealized Gain (Loss) rounds to less than $.01 per
share.
** 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. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit, expense reimbursement, and legal fee refund,
where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
See accompanying notes to financial statements.
58-59 SPREAD
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 167
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); formerly, Director
Chicago, IL 60606 Member (1996-2006) of Institutional Capital Corporation; Chairman
and Director (since 1997) of Nuveen Asset Management;
Chairman and Director of Rittenhouse Asset Management,
Inc. (since 1999); Chairman of Nuveen Investments
Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead Independent 1997 Private Investor and Management Consultant. 167
8/22/40 Board member
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 167
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 167
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College and Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean, Tippie College of Business, University of Iowa (since 167
3/6/48 June 2006); formerly, Dean and Distinguished Professor of Finance,
333 W. Wacker Drive School of Business at the University of Connecticut (2003-2006);
Chicago, IL 60606 previously, Senior Vice President and Director of Research
at the Federal Reserve Bank of Chicago (1995-2003);
Director (since 1997), Credit Research Center at Georgetown
University; Director (since 2004) of Xerox Corporation; Director,
SS&C Technologies, Inc. (May 2005 - October 2005).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 165
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College;
member of the Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical Gardens.
60
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real estate 167
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, 2004) of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty;
Board Member, Chair of the Finance Committee and
member of the Audit Committee of Premier Health Partners,
the not-for-profit company of Miami Valley Hospital; Vice
President, Dayton Philharmonic Orchestra Association; Board
Member, Regional Leaders Forum, which promotes cooperation
on economic development issues; Director, Dayton Development
Coalition; formerly, Member, Community Advisory Board,
National City Bank, Dayton, Ohio and Business Advisory
Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 167
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 167
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; formerly, Director
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since 1997),
Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director
(since 1997), Evanston Chamber of Commerce and Evanston
Inventure, a business development organization.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 167
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel, of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President
(since 1997), of Nuveen Asset Management; Managing Director
(since 2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc., Symphony Asset Management LLC (since 2003) Tradewinds
NWQ Global Investors, LLC and Santa Barbara Asset Management,
LLC; (since 2006); Chartered Financial Analyst.
61
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 167
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 167
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen Investments, LLC 167
11/28/67 and of Nuveen Investments, Inc. (since 1999); Vice President
333 W. Wacker Drive and Treasurer of Nuveen Asset Management (since 2002)
Chicago, IL 60606 and of Nuveen Investments Advisers Inc. (since 2002); Assistant
Treasurer of NWQ Investment Management Company, LLC.
(since 2002); Vice President and Treasurer of Nuveen
Rittenhouse Asset Management, Inc. (since 2003); Treasurer
of Symphony Asset Management LLC (since 2003) and Santa
Barbara Asset Management, LLC (since 2006); Assistant
Treasurer, Tradewinds NWQ Global Investors, LLC (since 2006);
formerly, Vice President and Treasurer (1999-2004) of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 167
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice
President, Head of Investment Operations and Systems,
Scudder Investments Japan, (2000-2002), Senior Vice
President, Head of Plan Administration and Participant
Services, Scudder Investments (1995-2002).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 167
9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant
333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3); Vice President and
Assistant Secretary (since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 167
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 167
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director (since 2001) of Nuveen Asset
Management; Vice President (since 2002) of Nuveen
Investments Advisers Inc.; Chartered Financial Analyst.
62
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 167
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Walter M. Kelly Chief 2003 Assistant Vice President and Assistant Secretary of the 167
2/24/70 Compliance Nuveen Funds (since 2003); Assistant Vice President and
333 West Wacker Drive Officer and Assistant General Counsel (since 2003) of Nuveen Investments,
Chicago, IL 60606 Assistant LLC; previously, Associate (2001-2003) at the law firm of Vedder,
Vice President Price, Kaufman & Kammholz.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 167
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 167
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 167
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President
333 W. Wacker Drive Secretary and Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002), Symphony Asset
Management LLC (since 2003) and Tradewinds NWQ Global
Investors, LLC and Santa Barbara Asset Management, LLC
(since 2006).
(1) Mr. Schwertfeger is an "interested person'' of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
63
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the
Board of Trustees of the Funds, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between each
Fund and NAM (the "Fund Adviser").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of
each Fund. To assist the Board in its evaluation of the advisory contract with
the Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to funds
of similar investment objectives compiled by an independent third
party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information and
data provided by Lipper (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") to the
respective Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment Company
Act of 1940 (the "1940 Act") as well as the general principles of
relevant state law in reviewing and approving advisory contracts; the
requirements of the 1940 Act in such matters; an adviser's fiduciary
duty with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company
boards of directors have fulfilled their duties; and factors to be
considered by the Board in voting on advisory agreements.
At the May Meeting, the Fund Adviser made a presentation to and responded to
questions from the Board. After the presentations and after reviewing the
written materials, the independent Trustees met privately with their legal
counsel to review the Board's duties in reviewing advisory contracts and
consider the renewal of the advisory contracts. It is with this background that
the Trustees considered the advisory contract with the Fund Adviser. The
independent Trustees, in consultation with independent counsel, reviewed the
factors set out in judicial decisions and SEC directives relating to the renewal
of advisory contracts. As outlined in more detail below, the Trustees considered
all factors they believed relevant with respect to each Fund, including the
following: (a) the nature, extent and quality of the services to be provided by
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (d) the extent to which economies of scale
would be realized as the Fund grows; and (e) whether fee levels reflect these
economies of scale for the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below); and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
personnel
64
involved in the investment, research, risk-management and operational processes
involved in managing municipal funds and their respective functions. Given the
Trustees' experience with the Funds and Fund Adviser, the Trustees recognized
the demonstrated history of care and depth of experience of the respective
personnel in managing these Funds. In this regard, the Trustees considered the
continued quality of the Fund Adviser's investment process in making portfolio
management decisions as well as additional refinements and improvements adopted
to the portfolio management processes noted below. With respect to the services
provided to municipal funds, including the Funds, the Trustees noted that the
Fund Adviser continues to make refinements to its portfolio management process
including, among other things, the increased use of derivatives to enhance
management of risk, additional analytical software for research staff and
improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Funds with such administrative and other services
(exclusive of, and in addition to, any such services provided by others for the
Funds) and officers and other personnel as are necessary for the operations of
the respective Fund. In connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management (e.g.,
product positioning, performance benchmarking, risk management); fund
administration (e.g., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (e.g., organizing board
meetings and preparing related materials); compliance (e.g., monitoring
compliance with investment policies and guidelines and regulatory requirements);
and legal support (e.g., helping prepare and file registration statements,
amendments thereto, proxy statements and responding to regulatory requests
and/or inquiries). As the Funds operate in a highly regulated industry and given
the importance of compliance, the Trustees considered, in particular, the
additions of experienced personnel to the compliance teams and the enhancements
to technology and related systems to support the compliance activities for the
Funds (including a new reporting system for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement were of a high level and were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a Fund still may not adequately reflect such Fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such Fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as, the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the respective Fund's absolute and relative investment
performance over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses of a Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group may be the same. Further, the Trustees
recognized that in certain cases the closest Peer Universe and/or Peer
Group did not
65
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
adequately reflect the Fund's investment objectives and strategies limiting
the usefulness of comparisons. In reviewing comparisons, the Trustees also
considered the size of the Peer Universe and/or Peer Group, the composition
of the Peer Group (including differences in the use of leverage and
insurance) as well as differing levels of fee waivers and/or expense
reimbursements. In this regard, the Trustees considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain funds launched since 1999). Based on their review
of the fee and expense information provided, the Trustees determined that
each Fund's net total expense ratio was within an acceptable range compared
to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Funds. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided, product
distribution, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services provided to the Funds is more extensive than that
provided to managed separate accounts. As described in further detail
above, such additional services include, but are not limited to, providing:
product management, fund administration, oversight of third party service
providers, administration of board relations, and legal support. Funds
further operate in a highly regulated industry requiring extensive
compliance functions compared to the other investment products. In addition
to the costs of the additional services, administrative costs may also be
greater for funds as the average account size for separate accounts is
notably larger than the retail accounts of funds. Given the differences in
the product structures, particularly the extensive services provided to
closed-end municipal funds, the Trustees believe such facts justify the
different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of other
sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Funds, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the applicable Fund,
the Trustees determined that the advisory fees and expenses of the respective
Fund were reasonable.
66
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Trustees considered, among
other things, the historic and expected fee savings to shareholders as assets
grow, the amount of fee reductions at various asset levels, and that the
arrangement would extend to all funds in the Nuveen complex. The Trustees noted
that 2005 was the first full year to reflect the fee reductions from the complex
wide fee arrangement. The Trustees also considered the impact, if any, the
complex-wide fee arrangement may have on the level of services provided. Based
on their review, the Trustees concluded that the breakpoint schedule and
complex-wide fee arrangement currently was acceptable and desirable in providing
benefits from economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that NAM does not currently have any soft dollar arrangements and
does not pay excess brokerage commissions (or spreads on principal transactions)
in order to receive research services; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the Fund Adviser's fees are reasonable in light of the
services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved.
67
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN 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
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
68
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on January 2, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, 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. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
69
Notes
70
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust 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. No shares were repurchased during the period covered by this report.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
71
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $149 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0906D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen New York Dividend Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
----------------------------------------------------------------------------------------------------------------------
September 30, 2006 $ 11,312 $ 0 $ 400 $ 2,950
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
September 30, 2005 $ 10,678 $ 0 $ 641 $ 2,750
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS (1) SERVICE PROVIDERS
--------------------------------------------------------------------------------------------------
September 30, 2006 $ 0 $ 2,200 $ 0
--------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------
September 30, 2005 $ 0 $ 2,200 $ 0
--------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation
for the Fund's tax return, the cost of which is borne by the Adviser. In
the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as
independent registered public accounting firm, these fees amounted to
$275,000 in 2006 and $282,575 in 2005.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-------------------------------------------------------------------------------------------------------------------
September 30, 2006 $ 3,350 $ 2,200 $ 0 $ 5,550
September 30, 2005 $ 3,391 $ 2,200 $ 0 $ 5,591
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn Steeves Nuveen New York Dividend Advantage Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Cathryn Steeves Registered Investment Company 67 $13.38 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of September 30, 2006. None of the assets in these accounts
are subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of August 30, 2006, the S&P/Investortools Municipal Bond index was
comprised of 47,346 securities with an aggregate current market value of $879
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he/she
serves as portfolio manager relative to any benchmarks established for those
accounts, his/her effectiveness in communicating investment performance to
stockholders and their representatives, and his/her contribution to the NAM
investment process and to the execution of investment strategies. The cash bonus
component is also impacted by the overall performance of Nuveen Investments,
Inc. in achieving its business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the September 30, 2006, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
-------------------------------------------------------------------------------------------------------------------------
DOLLAR
RANGE OF
DOLLAR EQUITY
RANGE OF SECURITIES
EQUITY BENEFICIALLY
SECURITIES OWNED IN
BENEFICIALLY THE
OWNED IN REMAINDER
FUND OF NUVEEN
FUNDS
MANAGED BY
NAM'S
MUNICIPAL
INVESTMENT
NAME OF PORTFOLIO MANAGER FUND TEAM
-------------------------------------------------------------------------------------------------------------------------
Cathryn Steeves Nuveen New York Dividend Advantage Municipal Fund $0 $10,001-$50,000
-------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
Cathryn Steeves, PhD is currently a portfolio manager for 68 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Cathryn has an undergraduate degree from Wake Forest
University, an MA, MPhil and a PhD from Columbia University.
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 registrants Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New York Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 6, 2006
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 6, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 6, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.