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
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Nuveen New York Dividend Advantage Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: September 30
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Date of reporting period: September 30, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report September 30, 2009
---------------------- ---------------------- --------------------------
NUVEEN NEW YORK NUVEEN NEW YORK NUVEEN NEW YORK
MUNICIPAL VALUE MUNICIPAL VALUE PERFORMANCE PLUS
FUND, INC. FUND 2 MUNICIPAL FUND, INC.
NNY NYV NNP
---------------------- ----------------------
NUVEEN NEW YORK NUVEEN NEW YORK
DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND 2
NAN NXK
SEPTEMBER 09
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LOGO: NUVEEN INVESTMENTS
[PHOTO OF ROBERT P. BREMNER]
Chairman's
Letter to Shareholders
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year appears to be slowly but steadily receding. The major institutions
that are the linchpin of the international financial system are strengthening
their capital structures, but many still struggle with losses in their various
portfolios. There are encouraging signs of recovery in European and Asian
economies, while the U.S. economy continues to feel the impact of job losses and
an over-borrowed consumer. Global trends include modestly increasing trade and
increased concern about the ability of the U.S. government to address its
substantial budgetary deficits. Identifying those developments that will define
the future is never easy, but rarely is it more difficult than at present.
After considerable volatility in the first few months of 2009, both the
fixed-income and equity markets have seen a partial recovery. A fundamental
component of a successful long-term investment program is a commitment to remain
invested during market downturns in order to be better positioned to benefit
from any recovery. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of this year as part of the annual
management contract renewal process. I encourage you to read the description of
this process in the Annual Investment Management Agreement Approval Process
section of this report.
Remaining invested through market downturns and reconfirming the appropriateness
of a long term investment strategy is as important for our shareholders as it is
for professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on these subjects. For
recent developments on all your Nuveen Funds, please visit the Nuveen web site:
www.nuveen.com.
Nuveen remains committed to resolving the issues connected with outstanding
auction rate preferred shares. In September 2009, Nuveen completed the
refinancing, at par, of all the auction rate preferred shares issued by its
taxable closed-end funds that were outstanding when the preferred auctions began
to fail in February 2008. For a variety of reasons, refinancing the outstanding
auction rate preferred shares issued by the municipal closed-end funds is taking
longer but Nuveen is diligently pursuing a range of options to accomplish this.
Please consult the Nuveen web site for the most recent information about the
redemption of municipal auction rate preferred shares.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
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Robert P. Bremner
Chairman of the Board
November 24, 2009
Nuveen Investments 1
Portfolio Manager's Comments
Nuveen New York Municipal Value Fund, Inc. (NNY)
Nuveen New York Municipal Value Fund 2 (NYV)
Nuveen New York Performance Plus Municipal Value Fund, Inc. (NNP)
Nuveen New York Dividend Advantage Municipal Fund (NAN)
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK)
Portfolio manager Cathryn Steeves reviews economic and municipal market
conditions at the national and state levels, key investment strategies and the
twelve-month performance of the Nuveen New York Funds. Cathryn, who joined
Nuveen in 1996, has managed NNY, NNP, NAN and NXK since 2006. In April 2009, she
added portfolio management responsibility for the new Nuveen New York Municipal
Value Fund 2 (NYV).
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED SEPTEMBER 30, 2009?
During this reporting period, municipal bond prices generally rose as strong
cash flows into municipal bond funds combined with a tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions. As the
period began, downward pressure on the economy continued. In an effort to
improve overall economic conditions, the Federal Reserve (Fed) continued to cut
interest rates, lowering the fed funds rate from 2.00% on October 1, 2008, to a
target range of zero to 0.25% in December 2008, its lowest level on record. In
March 2009, the Fed announced that, in addition to maintaining the current
target rate, it would buy $300 billion in long-term Treasury securities in an
effort to support private credit markets and up to an additional $750 billion
(for a total of $1.25 trillion) in agency mortgage-backed securities to bolster
the housing market. The federal government joined in the effort to boost the
economy by passing a $700 billion financial industry rescue package in October
2008, which was followed by a $787 billion stimulus package in February 2009.
In recent months, the measures taken by the Federal Reserve and the federal
government to ease the economic recession have produced some incipient signs of
improvement in the economy. In the third quarter of 2009, the U.S. economy, as
measured by the U.S. gross domestic product (GDP), posted positive growth (3.5%
annualized) for the first time since the second quarter of 2008. Housing prices
also provided something of a bright spot between June and August 2009 by
recording three consecutive months of positive returns, the first following
three years of decline. At the same time, inflation remained muted, as the
Consumer Price Index (CPI), reflecting a
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
22% drop in energy prices, fell 1.3% year-over-year as of September 2009. This
marked the sixth straight month that consumer prices dropped from their levels
of a year earlier, the longest such decline since 1954-1955. The core CPI (which
excludes food and energy) rose 1.5% over this twelve-month period, within the
Fed's unofficial objective of 2.0% or lower for this measure. However, the
economy continued to be stressed by weakness in the labor markets. September
2009 marked the 21st consecutive month of job losses, bringing the total to 7.2
million jobs lost since the recession began in December 2007, the biggest
decline since the Great Depression. The national unemployment rate for September
2009 was 9.8%, a 26-year high, up from 6.2% in September 2008.
Municipal market conditions began to show general signs of improvement in
mid-December 2008, and municipal bonds were on an improving trend during the
first nine months of 2009. This was bolstered by the reduced supply of
tax-exempt municipal debt in the marketplace, due in part to the introduction of
the Build America Bond program in April 2009. Build America Bonds are a new
class of taxable municipal debt created as part of the February 2009 economic
stimulus package. These bonds offer municipal issuers a federal subsidy equal to
35% of the security's interest payments, and therefore offer issuers an
attractive alternative to traditional tax-exempt debt. As of September 30, 2009,
approximately 20% of new bonds issued in the municipal market, totaling more
than $33 billion, were issued as taxable Build America Bonds.
Over the twelve months ended September 30, 2009, municipal bond issuance
nationwide totaled $381.1 billion, a drop of approximately 17% compared with the
twelve-month period ended September 30, 2008. As mentioned earlier, demand for
tax-exempt bonds was exceptionally strong during the first nine months of 2009.
This combination of lower tax-exempt supply and increased demand provided
support for municipal bond prices.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW YORK DURING THIS PERIOD?
According to the most recent data available, New York's economy continued to
contract in 2008, as the state posted annual GDP growth of 1.6%, down from 4.4%
in 2007. This dropped New York from its ranking as the second fastest growing
state economy in the nation to 18th. These numbers still compared favorably with
economic growth for the nation as a whole, which registered 0.7% in 2008 and
2.0% in 2007. Much of the decline in New York's GDP can be attributed to the
state's--and especially New York City's--substantial exposure to the financial
sector, which continued to experience turmoil and job losses. The majority of
the jobs lost in the state over the past twelve months were in the finance,
professional and business services, manufacturing and construction sectors,
while education and health services was the only sector to show a small gain in
employment.
Nuveen Investments 3
This gain was significant, however, because the education and health services
sector represents approximately 18% of the New York economy, compared with an
average of 13% nationally. As of September 2009, the unemployment rate in New
York was 8.9%. The decline in the housing sector also added to New York's
economic slowdown. Housing markets across the state continued to weaken,
although the drop was not as precipitous in New York as nationally. In New York
City, for example, housing prices fell 9.6% during the twelve months ended
August 2009, compared with an average decrease of 11.3% nationwide, according to
the Standard & Poor's/Case-Shiller home price index of 20 major metropolitan
areas. In terms of number of home foreclosures, New York ranked 39th among the
50 states in the third quarter of 2009. As of September 30, 2009, Moody's,
Standard & Poor's (S&P) and Fitch rated New York general obligation debt at
Aa3/AA/AA-, respectively, with stable outlooks from all three rating agencies.
For the twelve months ended September 30, 2009, municipal issuance in New York
totaled $38.7 billion, down 14% from the previous twelve months.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NEW YORK FUNDS DURING THIS
REPORTING PERIOD?
During the majority of this twelve-month period, the municipal market was
characterized by stronger demand, constrained supply and generally improving
valuations. Due in part to the decline in new tax-exempt supply, investment
activity in the New York Funds was somewhat more limited than usual during this
period. While there was considerable issuance of Build America Bonds over the
last half of this period, we do not see them as a good investment opportunity
since interest payments from these bonds represent taxable income. Another
factor dampening trading activity during this period was the limited liquidity
of many insured bonds due to concerns about the financial health of municipal
bond insurers.
Overall, we continued to focus on relative value by taking a bottom-up approach
to discover undervalued sectors and individual credits with the potential to
perform well over the long term. Early in the period, we were able to take
advantage of opportunities to purchase lower-rated and non-rated bonds that we
believed offered value at very attractive prices. As the market rallied, we took
advantage of selected opportunities to add higher-quality bonds with longer
maturities and higher coupons.
4 Nuveen Investments
Cash for new purchases during this period was generated by maturing or called
bonds. As with our investment activity, we were not active in trying to sell
portfolio holdings in a market environment where the majority of the bonds
available for reinvestment offered lower yields at higher dollar prices. The
Funds continued to maintain their cash reserves, which we had increased amid the
market uncertainty of the previous reporting period, in anticipation of
increased tax-exempt issuance during the last part of 2009.
All of these New York Funds continued to use inverse floating rate
securities.(1) We employ inverse floaters as part of our management strategies
for a variety of reasons, including duration management, income enhancement and
as a form of leverage. As of September 30, 2009, the inverse floaters remained
in place in all of the Funds. During the first half of the period, NNY also
invested in additional types of derivative instruments(2) designed to help
lengthen its duration. These derivatives were removed prior to September 30,
2009.
In April 2009, we introduced the Nuveen New York Municipal Value Fund 2 (NYV),
which--like NNY--is an unleveraged Fund investing in a portfolio of tax-exempt
municipal obligations. NYV is designed to invest at least 80% of its net assets
in investment quality municipal securities and may invest up to 20% of its net
assets in bonds rated below investment grade quality but judged to be of
comparable quality by the Fund's adviser. During the period between NYV's
inception and September 30, 2009, we focused on completing the Fund's initial
investment phase. By period end, NYV was fully invested and had met or exceeded
all of its targeted objectives in terms of credit quality and diversification.
Our purchases during the investment phase primarily focused on bonds that we
believed would achieve the portfolio's objectives of providing attractive
monthly income exempt from regular federal and New York taxes and attractive
after-tax total returns over the long term. This included bonds at the longer
end of the maturity spectrum that offered good call protection and
diversification in terms of credit quality and sector, such as general and
limited tax obligation, health care, multi-family housing, education, and
transportation.
(1) An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
(2) Each Fund may invest in derivative instruments such as forwards, futures,
options and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements, and Notes to Financial Statements sections of this report.
Nuveen Investments 5
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen New York Funds, as well as relevant index and
peer group information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED
9/30/09
1-YEAR 5-YEAR 10-YEAR
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NNY(3) 13.00% 4.47% 5.26%
NYV(3) 12.99%* N/A N/A
NNP 21.05% 5.11% 7.29%
NAN 20.29% 4.87% 7.41%
NXK 20.06% 5.18% N/A
Standard & Poor's (S&P) New York Municipal Bond Index(4) 14.63% 4.89% 5.84%
Lipper New York Municipal Debt Funds Average(5) 17.47% 4.03% 6.29%
Standard & Poor's (S&P) National Municipal Bond Index(6) 14.42% 4.70% 5.74%
Barclays Capital Municipal Bond Index(7) 14.85% 4.78% 5.77%
------------------------------------------------------------------------------------
For the twelve months ended September 30, 2009, the total returns on common
share net asset value (NAV) for NNP, NAN and NXK exceeded the returns for the
Standard & Poor's (S&P) New York Municipal Bond Index, the S&P National
Municipal Bond Index, the national Barclays Capital Municipal Bond Index and the
average return for the Lipper New York Municipal Debt Funds Average. NNY lagged
all of these measures over the same time period. As noted in the accompanying
footnotes, NYV's return represents the approximately five-month period between
its inception and September 30, 2009.
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, leverage was an important factor affecting the Funds'
performances over this period. The primary reason that the return on NNY trailed
those of the other Funds for the twelve-month period was that this Fund does not
use leverage. The impact of leverage is discussed in more detail on page seven.
During this period, we saw prices rise and yields decline for many municipal
securities. Especially those at the longer end of the municipal yield curve.
Bonds in the Barclays Capital Municipal Bond Index with maturities longer than
15 years, particularly those maturing in 20 years or more, benefited the most
from this interest rate environment. These bonds generally outperformed credits
with shorter maturities, with bonds maturing in one to two years posting the
weakest returns for the period. Overall, duration positioning was a positive
contributor to these Funds' returns, due largely to the fact that they were
underweighted in the underperforming shorter part of the yield curve.
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.
* NYV's cumulative return represents the period from its inception on April
28, 2009, through September 30, 2009.
(3) NNY and NYV are unleveraged Funds; the remaining three Funds in this
report are leveraged.
(4) The Standard & Poor's (S&P) New York Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade New York municipal bond market. This
index does not reflect any initial or ongoing expenses and is not
available for direct investment.
(5) The Lipper New York Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 1-year, 17 funds; 5-year, 17 funds; and 10-year, 6 funds. Fund
and Lipper returns assume reinvestment of dividends.
(6) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
(7) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. Results for the Barclays Capital index
do not reflect any expenses, and the index is not available for direct
investment.
6 Nuveen Investments
While duration played an important role in performance, credit exposure was also
a significant factor. As noted earlier, demand for municipal bonds increased
among both institutional and individual investors during this period. This
increase was driven by a variety of factors, including concerns about potential
tax increases, the need to rebal-ance portfolio allocations and a growing
appetite for additional risk. At the same time, the supply of new municipal
paper declined. As investors bid up municipal bond prices, bonds rated BBB or
below and non-rated bonds generally outperformed those rated AAA. In this
environment, the Funds' performances benefited greatly from their allocations of
bonds rated BBB and below and non-rated bonds, especially their overweighting of
the BBB category.
Holdings that generally contributed positively to the Funds' performances
included industrial development revenue (IDR), housing, water and sewer,
education and health care bonds, all of which outperformed the general municipal
market during this period. In general, the Funds had relatively heavy weightings
in housing, health care and education, which benefited their performances during
this period. Zero coupon bonds and credits backed by the 1998 master tobacco
settlement agreement were also among the strongest performers.
Pre-refunded bonds, which are often backed by U.S. Treasury securities and which
had been one of the top performing segments of the municipal bond market over
the past two years, performed especially poorly during this period. This was due
primarily to their shorter effective maturities and higher credit quality. As of
September 30, 2009, these Funds were generally relatively underweighted in this
category, which lessened the negative impact of these holdings. Other market
segments that detracted from performance included resource recovery and leasing
bonds, the only two revenue sectors that failed to outperform the overall
municipal market during this period. General obligation bonds also struggled to
keep pace with the municipal market return for the twelve months.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage (NNY and NYN are
unleveraged). The Funds use leverage because their managers believe that, over
time, leveraging provides opportunities for additional income and total returns
for common shareholders. However, use of leverage also can expose common
shareholders to additional risk--especially when market conditions are
unfavorable. For example, as the prices of securities held by a Fund declines,
the negative impact of these valuation changes on common share net asset value
and common shareholder total return is magnified by the
Nuveen Investments 7
use of leverage. Conversely, leverage may enhance common share returns during
periods when bond prices generally are rising.
Over the early part of this period, leverage hampered the performance of the
Funds using this strategy. However, leverage made a significant positive
contribution to those Funds returns over much of 2009, which can be seen in
their twelve-month performance shown on page six.
RECENT DEVELOPMENTS REGARDING THE FUND'S LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of September 30, 2009,
8 Nuveen Investments
the amounts of auction rate preferred securities redeemed, at par, by each of
the Funds are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NNP $ 36,650,000 29.49%
NAN $ 17,600,000 25.51%
NXK $ 12,900,000 27.45%
--------------------------------------------------------------------------------
On November 16, 2009, subsequent to the reporting period, NAN filed with the
Securities and Exchange Commission a registration statement seeking to register
municipal term preferred shares (MTP), a new form of closed-end fund preferred
shares. This registration statement, if declared effective by the SEC, may
enable the Fund to issue to the public shares of MTP to refinance all or a
portion of NAN's auction rate preferred shares. The issuance of MTP by NAN is
subject to market conditions, the receipt of ratings, and on final approval by
NAN's Board of Trustees. There is no assurance that MTP will be issued.
The Funds, their Board of Directors/Trustees and Fund Management continue to
work to resolve this situation. Some Funds have issued Variable Rate Demand
Preferred Shares, but these issuances have been limited since it has been
difficult to find liquidity facilities on economically viable terms given the
constrained credit environment. The Funds also have tried to develop other forms
of preferred stock that have longer terms and do not require a Fund to obtain
and pay for the services of an external liquidity provider. However, the Funds
cannot provide any assurance on when the remaining outstanding auction rate
preferred shares might be redeemed.
As of September 30, 2009, 78 out of 88 Nuveen closed-end municipal funds have
redeemed, at par, all or a portion of their outstanding auction rate preferred
shares. These redemptions bring the total amount of Nuveen's municipal
closed-end funds' auction rate preferred share redemptions to approximately $2.3
billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 9
Common Share Dividend and Share Price Information
During the twelve-month reporting period ended September 30, 2009, NNP had three
monthly dividend increases, while NAN and NXK each had two monthly dividend
increases. The dividend of NNY remained stable throughout the period. NYV, which
was introduced in April 2009, paid its initial monthly dividend distribution
effective June 2009 and maintained a stable dividend through the remainder of
the reporting period.
As the result of normal portfolio activity, common shareholders of these Funds
received capital gains and net ordinary income distributions at the end of
December 2008 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
FUND (PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NNY $ 0.0628 $ 0.0354
NNP $ 0.0751 $ 0.0558
NAN $ 0.0353 $ 0.0525
NXK $ 0.0822 $ 0.0566
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of September 30, 2009, all of
the Funds in this report had positive UNII balances for tax purposes. NNY, NNP,
NAN and NXK had positive UNII balances and NYV had a negative UNII balance for
financial statement purposes.
10 Nuveen Investments
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of September 30, 2009, the following Funds cumulatively repurchased common
shares as shown in the accompanying table. Since the inception of the Funds'
repurchase program, NNY, NYV and NAN have not repurchased any of their
outstanding common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NNP 27,800 0.2%
NXK 7,200 0.1%
--------------------------------------------------------------------------------
During the twelve-month reporting period, the Funds repurchased common shares at
a weighted average price and a weighted average discount per common share as
shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NNP 27,800 $ 11.10 19.25%
NXK 7,200 $ 10.62 18.33%
--------------------------------------------------------------------------------
As of September 30, 2009, the Funds' common share prices were trading at
discounts (-) to their common share NAVs as shown in the accompanying table.
9/30/09 TWELVE-MONTH AVERAGE
(-)DISCOUNT (-)DISCOUNT
--------------------------------------------------------------------------------
NNY -4.04% -3.26%
NYV -6.73% -4.45%*
NNP -5.50% -13.88
NAN -9.72% -13.23
NXK -9.15% -14.04
--------------------------------------------------------------------------------
* NNY's average discount represents the period from its inception on April
28, 2009, through September 30, 2009.
Nuveen Investments 11
NNY Performance OVERVIEW | Nuveen New York Municipal Value Fund, Inc. as of
September 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 9.51
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 9.91
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.04%
--------------------------------------------------------------------------------
Market Yield 4.48%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.68%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 150,063
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.26
--------------------------------------------------------------------------------
Modified Duration 4.49
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 11.78% 13.00%
--------------------------------------------------------------------------------
5-Year 5.71% 4.47%
--------------------------------------------------------------------------------
10-Year 6.04% 5.26%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 26.2%
--------------------------------------------------------------------------------
Health Care 11.7%
--------------------------------------------------------------------------------
Transportation 8.5%
--------------------------------------------------------------------------------
Tax Obligation/General 8.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 6.5%
--------------------------------------------------------------------------------
Utilities 6.3%
--------------------------------------------------------------------------------
Long-Term Care 6.0%
--------------------------------------------------------------------------------
Housing/Multifamily 5.4%
--------------------------------------------------------------------------------
Euro Dollar Time Deposit 3.7%
--------------------------------------------------------------------------------
Other 9.7%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S.
Guaranteed 29%
AA 40%
A 15%
BBB 9%
BB or Lower 3%
N/R 4%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
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
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
10/01/08 $ 9.1
8.97
7.89
8.1
8.5099
8.61
8.61
8.51
8.17
8.36
8.35
8.35
8.58
8.45
8.9
9
8.95
8.95
8.98
9.07
9.13
8.82
8.95
8.8
9
8.9399
8.99
9
8.95
9.0367
9.1907
9.32
9.35
9.38
9.37
9.34
9.3
9.1
9.0999
9.09
9.18
9.07
9.12
9.13
9.34
9.25
9.31
9.5499
9.74
9.58
9.53
9.57
9.64
9/30/09 9.51
(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 32.9%. 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 2008 of $0.0982 per share.
(3) Excluding Euro Dollar Time Deposit.
12 Nuveen Investments
NYV Performance OVERVIEW | Nuveen New York Municipal Value Fund 2, Inc. as of
September 30, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(2)
[PIE CHART]
AAA/U.S.
Guaranteed 17%
AA 32%
A 25%
BBB 16%
BB or Lower 3%
N/R 7%
2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.064
Jul 0.064
Aug 0.064
Sep 0.064
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
5/01/09 $ 14.75
14.63
13.85
13.6
13.7992
13.8
13.26
13.12
13.28
13.4
13.72
13.73
13.85
14.1
14.11
14
14.01
14.0501
14.2165
14.42
14.7
14.9
9/30/09 14.84
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.84
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 15.91
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.73%
--------------------------------------------------------------------------------
Market Yield 5.18%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.72%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 37,347
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 26.54
--------------------------------------------------------------------------------
Modified Duration 8.84
--------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
(Inception 4/28/09)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
Since Inception 0.73% 12.99%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.2%
--------------------------------------------------------------------------------
Health Care 18.8%
--------------------------------------------------------------------------------
Housing/Multifamily 12.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 12.7%
--------------------------------------------------------------------------------
Transportation 10.6%
--------------------------------------------------------------------------------
Tax Obligation/General 8.9%
--------------------------------------------------------------------------------
Euro Dollar Time Deposit 4.4%
--------------------------------------------------------------------------------
Other 9.5%
--------------------------------------------------------------------------------
(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 32.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) Excluding Euro Dollar Time Deposit.
Nuveen Investments 13
NNP Performance OVERVIEW | Nuveen New York Plus Performance Municipal Fund, Inc.
as of September 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.77
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 15.63
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.50%
--------------------------------------------------------------------------------
Market Yield 5.44%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.11%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 235,108
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.22
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.39
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 42.29% 21.05%
--------------------------------------------------------------------------------
5-Year 5.38% 5.11%
--------------------------------------------------------------------------------
10-Year 6.52% 7.29%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 24.3%
--------------------------------------------------------------------------------
Health Care 12.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 11.1%
--------------------------------------------------------------------------------
Tax Obligation/General 7.8%
--------------------------------------------------------------------------------
Transportation 6.8%
--------------------------------------------------------------------------------
Utilities 5.4%
--------------------------------------------------------------------------------
Housing/Multifamily 3.8%
--------------------------------------------------------------------------------
Euro Dollar Time Deposit 3.6%
--------------------------------------------------------------------------------
Other 13.4%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S.
Guaranteed 32%
AA 39%
A 12%
BBB 13%
BB or Lower 2%
N/R 2%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Oct $ 0.058
Nov 0.058
Dec 0.058
Jan 0.058
Feb 0.058
Mar 0.0595
Apr 0.0595
May 0.0645
Jun 0.0645
Jul 0.0645
Aug 0.0645
Sep 0.067
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
10/01/08 $ 11.39
11.25
8.73
9.94
11.03
10.89
11.39
10.59
9.72
10.06
9.46
8.6
9.82
10.1099
10.63
11.92
11.54
11.53
11.7
12.06
11.89
11.51
11.61
10.92
11.46
11.53
11.73
11.95
12.45
12.13
12.33
12.3
12.87
12.77
12.9
12.7732
12.71
12.34
12.48
12.546
12.93
13.05
13.03
13.23
13.7211
13.94
13.91
14.06
14.14
14.26
14.7
14.85
14.7673
9/30/09 14.77
(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 32.9%. 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 2008 of $0.1309 per share.
(3) Excluding Euro Dollar Time Deposit.
14 Nuveen Investments
NAN Performance OVERVIEW | Nuveen New York Dividend Advantage Municipal Fund as
of September 30, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S. Guaranteed 18%
AA 36%
A 23%
BBB 13%
BB or Lower 4%
N/R 6%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Oct $ 0.059
Nov 0.059
Dec 0.059
Jan 0.059
Feb 0.059
Mar 0.059
Apr 0.059
May 0.0635
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.0645
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
10/01/08 $ 11.3
11.12
8.03
9.65
10.5
10.46
10.68
10.09
9.05
9.41
9.16
8.41
9.18
9.5
10.09
10.95
11
11.1
11.59
11.45
11.75
11.01
11.416
10.49
10.92
10.89
11.2399
11.44
11.75
11.55
11.75
12.01
12.12
12.26
12.11
12.14
12.14
11.75
11.69
11.88
11.88
12.25
12.26
12.43
12.75
12.75
12.82
12.798
12.79
13.05
13.08
13.15
13.38
9/30/09 13.38
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.38
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.82
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.72%
--------------------------------------------------------------------------------
Market Yield 5.78%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.61%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 137,268
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.20
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.09
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 26.58% 20.29%
--------------------------------------------------------------------------------
5-Year 4.08% 4.87%
--------------------------------------------------------------------------------
10-Year 5.65% 7.41%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.4%
--------------------------------------------------------------------------------
Health Care 20.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.6%
--------------------------------------------------------------------------------
Tax Obligation/General 9.8%
--------------------------------------------------------------------------------
Transportation 7.9%
--------------------------------------------------------------------------------
Housing/Multifamily 5.7%
--------------------------------------------------------------------------------
Long-Term Care 3.8%
--------------------------------------------------------------------------------
Utilities 3.6%
--------------------------------------------------------------------------------
Euro Dollar Time Deposit 4.2%
--------------------------------------------------------------------------------
Other 11.6%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.9%. 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 2008 of $0.0878 per share.
(3) Excluding Euro Dollar Time Deposit.
Nuveen Investments 15
NXK Performance OVERVIEW | Nuveen New York Dividend Advantage Municipal Fund 2
as of September 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.41
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.76
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.15%
--------------------------------------------------------------------------------
Market Yield 5.86%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.73%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 95,751
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.22
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.62
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 29.95% 20.06%
--------------------------------------------------------------------------------
5-Year 4.57% 5.18%
--------------------------------------------------------------------------------
Since Inception 5.18% 6.65%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.6%
--------------------------------------------------------------------------------
Health Care 16.0%
--------------------------------------------------------------------------------
Tax Obligation/General 12.2%
--------------------------------------------------------------------------------
Transportation 11.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.4%
--------------------------------------------------------------------------------
Utilities 7.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.1%
--------------------------------------------------------------------------------
Euro Dollar Time Deposit 2.0%
--------------------------------------------------------------------------------
Other 13.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S.
Guaranteed 18%
AA 32%
A 24%
BBB 12%
BB or Lower 4%
N/R 10%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Oct $ 0.058
Nov 0.058
Dec 0.058
Jan 0.058
Feb 0.058
Mar 0.058
Apr 0.058
May 0.0645
Jun 0.0645
Jul 0.0645
Aug 0.0645
Sep 0.0655
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
10/01/08 $ 10.89
10.61
7.822
9.41
10.6
10.45
10.55
10.06
8.85
9.27
8.81
8.7499
8.91
9.47
9.89
10.92
10.55
10.53
10.992
11.08
11.42
10.95
11.055
11.12
11.12
11.2605
11.1501
11.12
11.23
11.3
11.9
12.15
12.15
12.5
12.12
12.16
12.18
11.73
11.64
11.92
11.9
12.094
12.14
12.28
12.68
12.65
12.8
12.7713
13.14
12.53
13.11
13.15
13.374
9/30/09 13.41
(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 32.9%. 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 2008 of $0.1388 per share.
(3) Excluding Euro Dollar Time Deposit.
16 Nuveen Investments
NNY NNP | Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments
on May 15, 2009; at this meeting the shareholders were asked to vote on the
election of Board Members, the elimination of Fundamental Investment Policies
and the approval of new Fundamental Investment Policies.3 The meeting was
subsequently adjourned to June 17, 2009, and additionally adjourned to July 24,
2009; the meeting for NXK was also adjourned to September 1, 2009.
NNY NNP
---------------------------------------------------------------------------------------------------------------------------------
Common and
Preferred Preferred
shares voting shares voting
together as together as
Common shares a class a class
---------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN BELOW INVESTMENT GRADE SECURITIES.
For 7,668,519 -- --
Against 956,668 -- --
Abstain 355,903 -- --
Broker Non-Votes 2,399,190 -- --
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 -- --
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN
TAX-EXEMPT MUNICIPAL SECURITIES RATED WITHIN THE FOUR HIGHEST GRADES AND
UNRATED MUNICIPAL BONDS.
For -- 7,268,623 1,895
Against -- 653,402 164
Abstain -- 244,061 12
Broker Non-Votes -- 2,321,999 257
---------------------------------------------------------------------------------------------------------------------------------
Total -- 10,488,085 2,328
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN TAX-EXEMPT MUNICIPAL BONDS.
For -- -- --
Against -- -- --
Abstain -- -- --
Broker Non-Votes -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total -- -- --
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS OF AT LEAST 80% OF ITS NET ASSETS IN INVESTMENT GRADE QUALITY
MUNICIPAL BONDS.
For -- -- --
Against -- -- --
Abstain -- -- --
Broker Non-Votes -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total -- -- --
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTING
IN MUNICIPAL BONDS RATED WITHIN THE FOUR HIGHEST GRADES.
For 7,656,474 -- --
Against 963,007 -- --
Abstain 361,609 -- --
Broker Non-Votes 2,399,190 -- --
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 -- --
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENT IN BELOW INVESTMENT GRADE SECURITIES.
For 7,635,434 -- --
Against 960,273 -- --
Abstain 385,383 -- --
Broker Non-Votes 2,399,190 -- --
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 -- --
=================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 7,742,344 7,325,168 1,896
Against 875,421 605,158 153
Abstain 363,324 235,759 22
Broker Non-Votes 2,399,191 2,322,000 257
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 10,488,085 2,328
=================================================================================================================================
Nuveen Investments 17
NNY NNP | Shareholder Meeting Report (continued)
NNY NNP
---------------------------------------------------------------------------------------------------------------------------------
Common and
Preferred Preferred
shares voting shares voting
together as together as
Common shares a class a class
---------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING
TO COMMODITIES.
For 7,669,859 7,260,422 1,882
Against 924,484 658,580 170
Abstain 386,746 247,083 19
Broker Non-Votes 2,399,191 2,322,000 257
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 10,488,085 2,328
=================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES
FOR THE FUND.
For 7,616,602 7,262,203 1,882
Against 947,959 641,755 170
Abstain 416,528 262,128 19
Broker Non-Votes 2,399,191 2,321,999 257
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 10,488,085 2,328
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO SHORT
SALES.
For 7,658,356 7,316,745 1,898
Against 952,980 590,584 165
Abstain 369,753 258,756 8
Broker Non-Votes 2,399,191 2,322,000 257
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 10,488,085 2,328
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO
DERIVATIVES.
For 7,595,445 7,279,025 1,893
Against 978,381 627,087 160
Abstain 407,263 259,973 18
Broker Non-Votes 2,399,191 2,322,000 257
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 10,488,085 2,328
=================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For 7,756,315 7,323,186 1,899
Against 873,665 604,092 153
Abstain 351,109 238,807 19
Broker Non-Votes 2,399,191 2,322,000 257
---------------------------------------------------------------------------------------------------------------------------------
Total 11,380,280 10,488,085 2,328
=================================================================================================================================
18 Nuveen Investments
NNY NNP
---------------------------------------------------------------------------------------------------------------------------------
Common and
Preferred Preferred
shares voting shares voting
together as together as
Common shares a class a class
---------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For -- 9,566,313 --
Withhold -- 495,404 --
---------------------------------------------------------------------------------------------------------------------------------
Total -- 10,061,717 --
=================================================================================================================================
Robert P. Bremner
For 10,054,400 9,532,930 --
Withhold 561,189 528,787 --
---------------------------------------------------------------------------------------------------------------------------------
Total 10,615,589 10,061,717 --
=================================================================================================================================
Jack B. Evans
For 10,035,058 9,556,922 --
Withhold 580,531 504,795 --
---------------------------------------------------------------------------------------------------------------------------------
Total 10,615,589 10,061,717 --
=================================================================================================================================
William C. Hunter
For -- -- 1,673
Withhold -- -- 167
---------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,840
=================================================================================================================================
David J. Kundert
For -- 9,542,906 --
Withhold -- 518,811 --
---------------------------------------------------------------------------------------------------------------------------------
Total -- 10,061,717 --
=================================================================================================================================
William J. Schneider
For 10,056,524 -- 1,673
Withhold 559,065 -- 167
---------------------------------------------------------------------------------------------------------------------------------
Total 10,615,589 -- 1,840
=================================================================================================================================
Judith M. Stockdale
For -- 9,502,621 --
Withhold -- 559,096 --
---------------------------------------------------------------------------------------------------------------------------------
Total -- 10,061,717 --
=================================================================================================================================
Carole E. Stone
For -- 9,544,968 --
Withhold -- 516,749 --
---------------------------------------------------------------------------------------------------------------------------------
Total -- 10,061,717 --
=================================================================================================================================
Terence J. Toth
For -- 9,538,238 --
Withhold -- 523,479 --
---------------------------------------------------------------------------------------------------------------------------------
Total -- 10,061,717 --
=================================================================================================================================
Nuveen Investments 19
NAN NXK | Shareholder Meeting Report (continued)
NAN NXK
-----------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
-----------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENTS IN BELOW INVESTMENT
GRADE SECURITIES.
For 4,676,107 1,453 -- --
Against 500,969 115 -- --
Abstain 204,535 12 -- --
Broker Non-Votes 1,499,130 -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total 6,880,741 1,580 -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN TAX-EXEMPT MUNICIPAL
SECURITIES RATED WITHIN THE FOUR HIGHEST GRADES
AND UNRATED MUNICIPAL BONDS.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENTS IN TAX-EXEMPT
MUNICIPAL BONDS.
For 4,693,830 1,448 3,296,425 851
Against 500,384 120 337,837 59
Abstain 184,237 12 157,345 2
Broker Non-Votes 1,502,290 -- 1,117,068 --
-----------------------------------------------------------------------------------------------------------------------
Total 6,880,741 1,580 4,908,675 912
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENTS OF AT LEAST 80% OF
ITS NET ASSETS IN INVESTMENT GRADE QUALITY MUNICIPAL
BONDS.
For 4,657,953 1,453 -- --
Against 513,879 115 -- --
Abstain 206,619 12 -- --
Broker Non-Votes 1,502,290 -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total 6,880,741 1,580 -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTING IN MUNICIPAL BONDS
RATED WITHIN THE FOUR HIGHEST GRADES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENT IN BELOW INVESTMENT
GRADE SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND.
For 4,723,120 1,453 3,312,281 870
Against 427,066 115 315,218 41
Abstain 228,265 12 164,108 1
Broker Non-Votes 1,502,290 -- 1,117,068 --
-----------------------------------------------------------------------------------------------------------------------
Total 6,880,741 1,580 4,908,675 912
=======================================================================================================================
20 Nuveen Investments
NAN NXK
-----------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
-----------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO
COMMODITIES FOR THE FUND.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO SHORT SALES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO DERIVATIVES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT
COMPANIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
Nuveen Investments 21
NAN NXK | Shareholder Meeting Report (continued)
NAN NXK
-----------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together as together as together as together as
a class a class a class a class
-----------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For -- -- -- --
Withhold -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
Robert P. Bremner
For 5,936,505 -- 4,017,046 --
Withhold 320,227 -- 355,095 --
-----------------------------------------------------------------------------------------------------------------------
Total 6,256,732 -- 4,372,141 --
=======================================================================================================================
Jack B. Evans
For 5,937,362 -- 4,017,046 --
Withhold 319,370 -- 355,095 --
-----------------------------------------------------------------------------------------------------------------------
Total 6,256,732 -- 4,372,141 --
=======================================================================================================================
William C. Hunter
For -- 1,016 -- 532
Withhold -- 109 -- 32
-----------------------------------------------------------------------------------------------------------------------
Total -- 1,125 -- 564
=======================================================================================================================
David J. Kundert
For -- -- -- --
Withhold -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
William J. Schneider
For -- 1,016 -- 532
Withhold -- 109 -- 32
-----------------------------------------------------------------------------------------------------------------------
Total -- 1,125 -- 564
=======================================================================================================================
Judith M. Stockdale
For -- -- -- --
Withhold -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
Carole E. Stone
For -- -- -- --
Withhold -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
Terence J. Toth
For -- -- -- --
Withhold -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=======================================================================================================================
22 Nuveen Investments
Report of Independent Registered Public Accounting Firm
THE BOARDS OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN NEW YORK MUNICIPAL VALUE FUND, INC.
NUVEEN NEW YORK MUNICIPAL VALUE FUND 2
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 Municipal Value Fund 2, 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, 2009, and the related statements of operations, cash flows (New
York Performance Plus, New York Dividend Advantage, and New York Dividend
Advantage 2 only), changes in net assets and the financial highlights for each
of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of September 30, 2009, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New York Municipal Value Fund, Inc., Nuveen New York Municipal Value Fund
2, 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, 2009, the results of their operations and cash
flows (New York Performance Plus, New York Dividend Advantage, and New York
Dividend Advantage 2 only), the changes in their net assets and the financial
highlights for each of the periods indicated therein in conformity with US
generally accepted accounting principles.
[Ernst & Young LLP]
Chicago, Illinois
November 25, 2009
Nuveen Investments 23
NNY | Nuveen New York Municipal Value Fund, Inc.
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.2% (1.2% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, 9/15 at 100.00 BB+ $ 191,230
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
1,950 Seneca Nation of Indians Capital Improvements Authority, New 6/17 at 100.00 BB 1,638,000
York, Special Obligation Bonds, Series 2007A, 5.000%,
12/01/23
------------------------------------------------------------------------------------------------------------------------------------
2,225 Total Consumer Discretionary 1,829,230
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.3% (1.3% OF TOTAL INVESTMENTS)
225 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 220,282
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
390 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 390,020
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
165 Rensselaer Tobacco Asset Securitization Corporation, New 6/12 at 100.00 BBB 160,677
York, Tobacco Settlement Asset-Backed Bonds, Series
2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series
2006:
900 4.750%, 6/01/22 6/16 at 100.00 BBB 901,980
345 5.000%, 6/01/26 6/16 at 100.00 BBB 326,304
------------------------------------------------------------------------------------------------------------------------------------
2,025 Total Consumer Staples 1,999,263
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.8% (7.8% OF TOTAL
INVESTMENTS)
275 Albany Industrial Development Agency, New York, Revenue 7/17 at 100.00 BBB 257,989
Bonds, Albany Law School, Series 2007A, 5.000%, 7/01/31
115 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 91,308
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/37
90 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 80,863
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,175 Dormitory Authority of the State of New York, General 7/17 at 100.00 BBB- 1,088,814
Revenue Bonds, Manhattan College, Series 2007A, 5.000%,
7/01/41 - RAAI Insured
800 Dormitory Authority of the State of New York, Insured 7/11 at 102.00 BBB- 817,128
Revenue Bonds, D'Youville College, Series 2001, 5.250%,
7/01/20 - RAAI Insured
505 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AA- 516,868
Bonds, State University Dormitory Facilities, Series
2004A, 5.000%, 7/01/29 - NPFG Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 1/10 at 101.00 BBB- 1,263,438
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29
- 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- 1,153,480
1,400 6.000%, 7/01/20 No Opt. Call AA- 1,648,024
575 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 Baa1 495,512
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
265 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A 272,462
Revenue Bonds, Adelphi University, Civic Facility
Project, Series 2005, 5.000%, 10/01/35
245 New York City Industrial Development Agency, New York, Civic 10/14 at 100.00 A- 240,541
Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, Civic 2/11 at 100.00 A- 1,114,366
Facility Revenue Bonds, YMCA of Greater New York, Series
2002, 5.250%, 8/01/21
1,175 New York City Industrial Development Agency, New York, PILOT 1/17 at 100.00 BBB 1,089,190
Revenue Bonds, Queens Baseball Stadium Project, Series
2006, 4.750%, 1/01/42 - AMBAC Insured
1,610 New York City Industrial Development Authority, New York, 9/16 at 100.00 BBB- 1,425,623
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
4.500%, 3/01/39 - FGIC Insured
170 Seneca County Industrial Development Authority, New York, 10/17 at 100.00 BBB 152,476
Revenue Bonds, New York Chiropractic College, Series
2007, 5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
11,750 Total Education and Civic Organizations 11,708,082
------------------------------------------------------------------------------------------------------------------------------------
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.2% (1.2% OF TOTAL INVESTMENTS)
$ 400 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 $ 412,096
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,305 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 1,394,549
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
1,705 Total Financials 1,806,645
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.7% (11.7% OF TOTAL INVESTMENTS)
490 Cattaraugus County Industrial Development Agency, New York, 2/10 at 101.00 A+ 493,763
Revenue Bonds, Olean General Hospital, Series 1998A,
5.250%, 8/01/23
1,005 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,049,371
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 A 745,059
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 A- 1,859,616
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 BBB+ 1,275,413
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
2,350 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 2,450,980
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 A2 1,023,620
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
250 Dormitory Authority of the State of New York, Revenue Bonds, 1/10 at 100.00 A2 250,148
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
1,595 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,745,440
New York and Presbyterian Hospital, Series 2004A, 5.250%,
8/15/15 - FSA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 501,970
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 475,080
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 250,256
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
Madison County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Oneida Health System, Series
2007A:
280 5.250%, 2/01/27 No Opt. Call BBB- 257,818
260 5.500%, 2/01/32 No Opt. Call BBB- 238,714
360 Nassau County Industrial Development Agency, New York, No Opt. Call Baa1 371,808
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, 2/10 at 100.00 A+ 504,485
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 A+ 1,225,936
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 A+ 1,041,420
480 New York City Industrial Development Agency, New York, Civic 7/12 at 100.00 Ba2 447,533
Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
240 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 Ba2 223,634
Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
660 Newark-Wayne Community Hospital, New York, Hospital Revenue 3/10 at 100.00 N/R 660,132
Refunding and Improvement Bonds, Series 1993A, 7.600%,
9/01/15
500 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 B- 461,410
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
17,185 Total Health Care 17,553,606
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NNY | Nuveen New York Municipal Value Fund, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.4% (5.4% OF TOTAL INVESTMENTS)
$ 400 East Syracuse Housing Authority, New York, FHA-Insured 4/10 at 102.00 AAA $ 412,448
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 AA+ 1,794,712
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 1,026,120
1,000 5.500%, 11/01/31 5/11 at 101.00 AA 1,017,280
1,000 5.600%, 11/01/42 5/11 at 101.00 AA 1,015,550
1,000 New York City Housing Development Corporation, New York, 5/19 at 100.00 AA 1,040,910
Multifamily Housing Revenue Bonds, Series 2009C-1,
5.500%, 11/01/34
440 New York State Housing Finance Agency, Secured Mortgage 8/11 at 100.00 Aa1 448,444
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 1,337,309
GNMA Collateralized Mortgage Loan Revenue Bonds, Living
Independently for the Elderly Inc., Series 2001A, 5.375%,
8/20/21
------------------------------------------------------------------------------------------------------------------------------------
7,805 Total Housing/Multifamily 8,092,773
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (3.9% OF TOTAL INVESTMENTS)
950 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/15 at 100.00 Aa1 907,250
Bonds, Series 130, 4.650%, 4/01/27 (Alternative Minimum
Tax)
370 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/17 at 100.00 Aa1 373,130
Bonds, Series 148, 2007, 5.200%, 10/01/32 (Alternative
Minimum Tax)
3,750 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/10 at 100.50 Aa1 3,771,187
Bonds, Series 73A, 5.250%, 10/01/17 (Alternative Minimum
Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 849,316
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,910 Total Housing/Single Family 5,900,883
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.0% (6.0% OF TOTAL INVESTMENTS)
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 100.00 AAA 1,022,430
Mortgage Nursing Home Revenue Bonds, Eger Healthcare
Center of Staten Island, Series 1998, 5.100%, 2/01/28
2,250 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 100.00 N/R 2,252,250
Mortgage Nursing Home Revenue Bonds, Rosalind and Joseph
Gurwin Jewish Geriatric Center of Long Island, Series
1997, 5.700%, 2/01/37 - AMBAC Insured
1,195 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 100.00 AA- 1,197,127
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 2/10 at 100.00 AAA 2,003,400
Mortgage Revenue Bonds, W.K. Nursing Home Corporation,
Series 1996, 6.125%, 2/01/36
450 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 A- 466,151
Collateralized Revenue Bonds, Cabrini of Westchester
Project, Series 2006, 5.200%, 2/15/41
270 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 A1 272,554
Supported Debt, Ozanam Hall of Queens Nursing Home
Revenue Bonds, Series 2006, 5.000%, 11/01/31
135 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 N/R 88,742
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA
Insured
530 New York City Industrial Development Agency, New York, Civic 7/11 at 101.00 N/R 539,567
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001A-1, 7.250%, 7/01/16
820 New York City Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 748,931
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1, 5.500%, 7/01/18
235 Suffolk County Industrial Development Agency, New York, 7/16 at 101.00 N/R 208,802
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2008-B1, 5.800%, 7/01/23
225 Yonkers Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 199,917
Facilities Revenue Bonds, Special Needs Facilities Pooled
Program Bonds, Series 2008-C1, 5.800%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
9,110 Total Long-Term Care 8,999,871
------------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
$ 240 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB $ 234,384
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.3% (8.2% OF TOTAL INVESTMENTS)
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA 834,578
Series 2004C, 5.250%, 8/15/16
1,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 1,094,560
Series 2004E, 5.000%, 11/01/19 - FSA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AA 2,209,720
Series 2005F-1, 5.000%, 9/01/19 - SYNCORA GTY Insured
2,795 New York City, New York, General Obligation Bonds, Fiscal 8/16 at 100.00 AA 3,019,577
Series 2007A, 5.000%, 8/01/25
4,760 New York City, New York, General Obligation Bonds, Series D, 12/17 at 100.00 AA 5,248,325
5.125%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
11,305 Total Tax Obligation/General 12,406,760
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.0% (22.9% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,123,540
Series 2003A, 5.250%, 11/01/21
395 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 AA- 422,848
Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 -
CIFG Insured
275 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 302,731
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 373,454
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 2,099,040
1,000 5.000%, 11/15/30 11/12 at 100.00 AA 1,020,220
1,500 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 1,587,915
Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34
1,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 1,027,410
Service Contract Refunding Bonds, Series 2002A, 5.125%,
1/01/29
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 462,554
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:
740 5.000%, 10/15/25 - NPFG Insured 10/14 at 100.00 AAA 797,875
550 5.000%, 10/15/26 - NPFG Insured 10/14 at 100.00 AAA 590,843
1,890 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 2,009,637
1,200 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 1,288,524
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
1,500 New York City Transitional Finance Authority, New York, 1/19 at 100.00 AA- 1,626,045
Building Aid Revenue Bonds, Fiscal Series 2009-S5,
5.250%, 1/15/39
1,330 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,432,649
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%,
2/01/23
1,530 New York City Transitional Finance Authority, New York, 11/17 at 100.00 AAA 1,690,375
Future Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%,
11/01/27
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,067,190
Infrastructure Revenue Bonds, Series 2003A, 5.000%,
3/15/21
2,100 New York State Environmental Facilities Corporation, State 12/17 at 100.00 AAA 2,315,061
Personal Income Tax Revenue Bonds, Series 2008A, 5.000%,
12/15/27 (UB)
840 New York State Housing Finance Agency, State Personal Income 9/15 at 100.00 AAA 883,672
Tax Revenue Bonds, Economic Development and Housing,
Series 2006A, 5.000%, 3/15/36
1,000 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AA 1,104,670
Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21
- AMBAC Insured
2,450 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 3,011,467
Fund Bonds, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured
(UB)
1,175 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 1,275,733
Fund Bonds, Series 2007, 5.000%, 4/01/27
Nuveen Investments 27
NNY | Nuveen New York Municipal Value Fund, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,065 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 AAA $ 1,140,200
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 AA- 1,927,170
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AA- 2,128,600
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,075,070
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
600 New York State Urban Development Corporation, Special No Opt. Call AA- 735,330
Project Revenue Bonds, University Facilities Grants,
Series 1995, 5.875%, 1/01/21
20 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 20,330
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
31,870 Total Tax Obligation/Limited 34,540,153
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.5% (8.5% OF TOTAL INVESTMENTS)
180 Albany Parking Authority, New York, Revenue Bonds, Series 7/11 at 101.00 BBB+ 184,248
2001A, 5.625%, 7/15/25
2,500 Metropolitan Transportation Authority, New York, 11/17 at 100.00 A 2,627,575
Transportation Revenue Bonds, Series 2007B, 5.000%,
11/15/33
500 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 547,175
Transportation Revenue Refunding Bonds, Series 2002A,
5.500%, 11/15/19 - AMBAC Insured
1,100 New York City Industrial Development Agency, New York, 12/09 at 101.00 BB 791,274
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- 1,026,760
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
165 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 A+ 172,022
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
400 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 421,612
Series 2005G, 5.000%, 1/01/30 - FSA Insured
500 Niagara Frontier Airport Authority, New York, Airport 10/09 at 101.00 A 502,390
Revenue Bonds, Buffalo Niagara International Airport,
Series 1999A, 5.625%, 4/01/29 - NPFG Insured (Alternative
Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
1,000 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- 1,077,200
435 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 463,971
325 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 426,589
Revenue Bonds, One Hundred Forty Eighth Series 2007,
Trust 2920, 16.962%, 8/15/32 - FSA Insured (IF)
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,720,724
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 - NPFG Insured No Opt. Call Aa3 961,514
800 5.250%, 11/15/22 - NPFG Insured 11/12 at 100.00 Aa3 847,544
------------------------------------------------------------------------------------------------------------------------------------
12,185 Total Transportation 12,770,598
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.5% (6.5% OF TOTAL INVESTMENTS) (4)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Law School, Series 2000A:
600 5.700%, 10/01/20 (Pre-refunded 10/01/10) - RAAI Insured 10/10 at 100.00 BBB- (4) 632,448
750 5.750%, 10/01/30 (Pre-refunded 10/01/10) - RAAI Insured 10/10 at 100.00 BBB- (4) 790,935
220 Albany Parking Authority, New York, Revenue Bonds, Series 7/11 at 101.00 BBB+ (4) 242,046
2001A, 5.625%, 7/15/25 (Pre-refunded 7/15/11)
2,525 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 3,047,295
Facilities Lease Revenue Bonds, Suffolk County Issue,
Series 1986, 7.375%, 7/01/16 (ETM)
25 Dormitory Authority of the State of New York, Suffolk 10/09 at 106.27 Baa1 (4) 32,824
County, Lease Revenue Bonds, Judicial Facilities, Series
1991A, 9.500%, 4/15/14 (ETM)
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 280 Erie County Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA $ 295,263
York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded 7/15/10)
960 Metropolitan Transportation Authority, New York, Commuter 1/10 at 100.00 N/R (4) 963,178
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured (ETM)
420 Monroe Tobacco Asset Securitization Corporation, New York, 6/10 at 101.00 AAA 438,904
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.150%, 6/01/25 (Pre-refunded 6/01/10)
365 New York City Industrial Development Agency, New York, Civic 7/10 at 102.00 N/R (4) 390,083
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded
7/01/10)
555 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 Aa3 (4) 607,991
Revenue Bonds, Series 2002A, 5.125%, 3/15/21 (ETM)
1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call A (4) 1,131,110
Water Treatment Plant Bonds, Series 1994, 7.250%,
11/01/11 - MBIA Insured (Alternative Minimum Tax) (ETM)
1,120 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 Baa (4) 1,204,336
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded
2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
8,820 Total U.S. Guaranteed 9,776,413
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4% (6.3% OF TOTAL INVESTMENTS)
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 A 1,595,100
1,500 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A 1,587,870
250 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A- 258,865
General Revenue Bonds, Series 2006B, 5.000%, 12/01/35 -
CIFG Insured
1,000 Nassau County Industrial Development Authority, New York, 6/13 at 100.00 A- 979,640
Keyspan Glenwood Energy Project, Series 2003, 5.250%,
6/01/27 (Alternative Minimum Tax)
1,500 New York State Energy Research and Development Authority, 3/11 at 100.00 A 1,516,620
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation, Series 2005A, 4.100%, 3/15/15 - NPFG
Insured
500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 493,345
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 Baa2 249,388
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)
1,500 Power Authority of the State of New York, General Revenue 11/10 at 100.00 Aa2 1,519,380
Bonds, Series 2000A, 5.250%, 11/15/40
25 Power Authority of the State of New York, General Revenue 11/15 at 100.00 Aa2 27,807
Bonds, Series 2006A, 5.000%, 11/15/19 - FGIC Insured
Suffolk County Industrial Development Agency, New York,
Revenue Bonds, Nissequogue Cogeneration Partners
Facility, Series 1998:
860 5.300%, 1/01/13 (Alternative Minimum Tax) 1/10 at 100.50 N/R 807,936
575 5.500%, 1/01/23 (Alternative Minimum Tax) 1/10 at 100.50 N/R 485,156
------------------------------------------------------------------------------------------------------------------------------------
9,460 Total Utilities 9,521,107
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.9% (1.9% OF TOTAL INVESTMENTS)
415 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 434,169
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 AAA 1,628,985
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 AAA 810,574
Water and Sewerage System Revenue Bonds, Fiscal Series
2003A, 5.375%, 6/15/19
------------------------------------------------------------------------------------------------------------------------------------
2,655 Total Water and Sewer 2,873,728
------------------------------------------------------------------------------------------------------------------------------------
$ 134,250 Total Long-Term Municipal Bonds (cost $135,457,551) - 93.3% 140,013,496
================--------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NNY | Nuveen New York Municipal Value Fund, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 7.0% (7.0% OF TOTAL INVESTMENTS)
MUNICIPAL BONDS - 3.3% (3.3% OF TOTAL INVESTMENTS)
TAX OBLIGATION/LIMITED - 3.3% (3.3% OF TOTAL INVESTMENTS)
$ 5,000 Metropolitan Transportation Authority, New York, Dedicated 12/09 at 100.00 A-1 $ 5,000,000
Tax Fund Bonds, Variable Rate Demand Revenue Obligations,
Series 2008A, 0.410%, 11/01/31 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
EURO DOLLAR TIME DEPOSITS - 3.7% (3.7% OF TOTAL INVESTMENTS)
5,543 State Street Bank Euro Dollar Time Deposit, 0.010%, 10/01/09 N/A N/A 5,543,232
------------------------------------------------------------------------------------------------------------------------------------
$ 10,543 Total Short-Term Investments (cost $10,543,232) 10,543,232
================--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $146,000,783) - 100.3% 150,556,728
-----------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (3,255,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 2,761,401
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 150,063,129
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(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.
N/A Not applicable.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
30 Nuveen Investments
NYV | Nuveen New York Municipal Value Fund 2, Inc.
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.8% (3.8% OF TOTAL INVESTMENTS)
$ 1,350 District of Columbia Tobacco Settlement Corporation, Tobacco No Opt. Call BBB $ 1,406,619
Settlement Asset-Backed Bonds, Series 2001, 6.500%,
5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.6% (12.7% OF TOTAL
INVESTMENTS)
1,200 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 952,776
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/37
1,000 Dormitory Authority of the State of New York, Lease Revenue 7/17 at 100.00 AA- 1,038,990
Bonds, State University Dormitory Facilities, Series
2007, 5.000%, 7/01/37
225 Dormitory Authority of the State of New York, Revenue Bonds, 1/10 at 101.00 BBB- 227,419
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29
- RAAI Insured
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 7/18 at 100.00 AA- 1,596,090
New York University, Series 2008A, 5.000%, 7/01/38
5,095 New York City Industrial Development Agency, New York, No Opt. Call AAA 894,988
Revenue Bonds, Yankee Stadium Project Pilot, Series
2009A, 0.000%, 3/01/40 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,020 Total Education and Civic Organizations 4,710,263
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.8% (2.8% OF TOTAL INVESTMENTS)
1,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 1,026,740
Refinery Project - Hovensa LLC, Series 2003, 6.125%,
7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.6% (18.8% OF TOTAL INVESTMENTS)
1,000 Dormitory Authority of the State of New York, Insured 1/10 at 100.00 A3 1,000,200
Revenue Bonds, Franciscan Health Partnership Obligated
Group - Frances Shervier Home and Hospital, Series 1997,
5.500%, 7/01/27 - RAAI Insured
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 11/16 at 100.00 A3 1,508,820
North Shore Long Island Jewish Obligated Group, Series
2006B, 5.000%, 11/01/34
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 5/19 at 100.00 A- 1,559,970
North Shore Long Island Jewish Obligated Group, Series
2009A, 5.500%, 5/01/37
1,010 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 Baa2 1,013,990
NYU Hospitals Center, Series 2007B, 5.625%, 7/01/37
700 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 613,046
Revenue Bonds, Cardinal Health System, Series 2006,
5.000%, 8/01/24
725 Illinois Finance Authority, Revenue Bonds, OSF Healthcare 11/17 at 100.00 A 738,594
System, Series 2007A, 5.750%, 11/15/37
500 Wisconsin Health and Educational Facilities Authority, 2/14 at 100.00 A+ 527,925
Revenue Bonds, ProHealth Care, Inc. Obligated Group,
Series 2009, 6.625%, 2/15/32
------------------------------------------------------------------------------------------------------------------------------------
6,935 Total Health Care 6,962,545
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.7% (12.9% OF TOTAL INVESTMENTS)
1,500 New York City Housing Development Corporation, New York, 11/15 at 100.00 AAA 1,482,405
FNMA Backed Progress of Peoples Development Multifamily
Rental Housing Revenue Bonds, Series 2005B, 4.950%,
5/15/36 (Alternative Minimum Tax)
1,800 New York City Housing Development Corporation, New York, 11/14 at 100.00 AA 1,796,130
Multifamily Housing Revenue Bonds, Series 2004-H2,
5.125%, 11/01/34 (Alternative Minimum Tax)
1,000 New York State Housing Finance Agency, Affordable Housing 5/19 at 100.00 Aa2 1,020,340
Revenue Bonds, Series 2009A, 5.250%, 11/01/41
450 New York State Housing Finance Agency, Affordable Housing 5/19 at 100.00 Aa2 453,474
Revenue Bonds, Series 2009B, 4.500%, 11/01/29
------------------------------------------------------------------------------------------------------------------------------------
4,750 Total Housing/Multifamily 4,752,349
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.8% (8.9% OF TOTAL INVESTMENTS)
1,710 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,688,505
Bonds, Series 2006A, 5.000%, 2/15/47
1,500 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call AA 1,608,870
2009 Series J1, 5.000%, 5/15/36
------------------------------------------------------------------------------------------------------------------------------------
3,210 Total Tax Obligation/General 3,297,375
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NYV | Nuveen New York Municipal Value Fund 2, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.0% (22.2% OF TOTAL INVESTMENTS)
$ 1,200 Dormitory Authority of the State of New York, State Personal 3/19 at 100.00 AAA $ 1,290,768
Income Tax Revenue Bonds, Series 2009A, 5.000%, 3/15/38
1,200 Guam Government, Limited Obligation Section 30 Revenue 12/19 at 100.00 BBB- 1,259,256
Bonds, Series 2009A, 5.750%, 12/01/34
1,500 New York City Transitional Finance Authority, New York, 1/19 at 100.00 AA- 1,626,045
Building Aid Revenue Bonds, Fiscal Series 2009-S5,
5.250%, 1/15/39
2,000 New York State Urban Development Corporation, State Personal 3/17 at 100.00 AAA 2,375,579
Income Tax Revenue Bonds, Tender Option Bond Trust 09-6W,
12.884%, 3/15/37 (IF)
1,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/19 at 100.00 A+ 1,653,300
Revenue Bonds, First Subordinate Series 2009A, 6.000%,
8/01/42
------------------------------------------------------------------------------------------------------------------------------------
7,400 Total Tax Obligation/Limited 8,204,948
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.5% (10.6% OF TOTAL INVESTMENTS)
New York City Industrial Development Agency, New York,
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005:
500 7.500%, 8/01/16 (Alternative Minimum Tax) No Opt. Call B- 508,990
500 7.750%, 8/01/31 (Alternative Minimum Tax) 8/16 at 101.00 B- 512,430
2,000 New York City Industrial Development Agency, New York, Civic 10/17 at 100.00 N/R 1,479,080
Facility Revenue Bonds, Bronx Parking Development
Company, LLC Project, Series 2007, 5.750%, 10/01/37
1,325 Triborough Bridge and Tunnel Authority, New York, General 5/18 at 100.00 Aa2 1,425,793
Purpose Revenue Bonds, Refunding Series 2008A, 5.000%,
11/15/33
------------------------------------------------------------------------------------------------------------------------------------
4,325 Total Transportation 3,926,293
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.9% (2.9% OF TOTAL INVESTMENTS)
1,000 New York City Municipal Water Finance Authority, New York, 6/19 at 100.00 AA+ 1,075,160
Water and Sewerage System Revenue Bonds, Second
Generation Resolution, Series 2009FF-1, 5.000%, 6/15/40
------------------------------------------------------------------------------------------------------------------------------------
$ 38,990 Total Long-Term Investments (cost $31,494,386) - 94.7% 35,362,292
================--------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.4% (4.4% OF TOTAL INVESTMENTS)
$ 1,640 State Street Bank Euro Dollar Time Deposit, 0.010%, 10/01/09 N/A N/A 1,639,539
================--------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,639,539) 1,639,539
-----------------------------------------------------------------------------------------------------------------
Total Investments (cost $33,133,925) - 99.1% 37,001,831
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 345,574
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 37,347,405
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group (Standard &
Poor's) or Moody's Investor Service, Inc. (Moody's) rating. Ratings below
BBB by Standard & Poor's or Baa by Moody's are considered to be below
investment grade.
N/A Not applicable.
N/R Not rated.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
32 Nuveen Investments
NNP | Nuveen New York Performance Plus Municipal Fund, Inc.
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 685 New York City Industrial Development Agency, New York, 9/15 at 100.00 BB+ $ 476,335
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
465 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 455,249
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 973,450
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
425 Rensselaer Tobacco Asset Securitization Corporation, New 6/12 at 100.00 BBB 413,865
York, Tobacco Settlement Asset-Backed Bonds, Series
2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series
2006:
2,395 4.750%, 6/01/22 6/16 at 100.00 BBB 2,400,269
930 5.000%, 6/01/26 6/16 at 100.00 BBB 879,603
------------------------------------------------------------------------------------------------------------------------------------
5,215 Total Consumer Staples 5,122,436
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.2% (11.4% OF TOTAL
INVESTMENTS)
655 Albany Industrial Development Agency, New York, Revenue 7/17 at 100.00 BBB 614,482
Bonds, Albany Law School, Series 2007A, 5.000%, 7/01/31
275 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 218,345
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/37
1,285 Cattaraugus County Industrial Development Agency, New York, 3/10 at 100.50 BBB- 1,291,052
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- 80,863
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
850 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 930,283
Revenue Bonds, City University System, Series 1993B,
6.000%, 7/01/14 - FSA Insured
2,815 Dormitory Authority of the State of New York, General 7/17 at 100.00 BBB- 2,608,520
Revenue Bonds, Manhattan College, Series 2007A, 5.000%,
7/01/41 - RAAI Insured
2,120 Dormitory Authority of the State of New York, General No Opt. Call AA- 2,581,058
Revenue Bonds, New York University, Series 2001-1,
5.500%, 7/01/20 - AMBAC Insured
1,215 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AA- 1,243,553
Bonds, State University Dormitory Facilities, Series
2004A, 5.000%, 7/01/29 - NPFG Insured
230 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 238,890
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, 1/10 at 101.00 BBB- 8,434,708
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29
- RAAI Insured
2,500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AA- 2,944,400
State University Educational Facilities, Series 1993A,
5.875%, 5/15/17
2,800 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 Baa1 2,412,928
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
635 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A 652,882
Revenue Bonds, Adelphi University, Civic Facility
Project, Series 2005, 5.000%, 10/01/35
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 12/09 at 102.00 BBB- 1,019,820
2,365 5.375%, 6/01/24 - RAAI Insured 12/09 at 102.00 BBB- 2,379,994
580 New York City Industrial Development Agency, New York, Civic 10/14 at 100.00 A- 569,444
Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
850 New York City Industrial Development Agency, New York, Civic 2/11 at 100.00 A- 861,101
Facility Revenue Bonds, YMCA of Greater New York, Series
2002, 5.250%, 8/01/21
2,300 New York City Industrial Development Agency, New York, PILOT 1/17 at 100.00 BBB 2,132,031
Revenue Bonds, Queens Baseball Stadium Project, Series
2006, 4.750%, 1/01/42 - AMBAC Insured
Nuveen Investments 33
NNP | Nuveen New York Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 3,855 New York City Industrial Development Authority, New York, 9/16 at 100.00 BBB- $ 3,413,525
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
4.500%, 3/01/39 - FGIC Insured
5,000 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 AA- 5,306,200
University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured
420 Seneca County Industrial Development Authority, New York, 10/17 at 100.00 BBB 376,706
Revenue Bonds, New York Chiropractic College, Series
2007, 5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
40,185 Total Education and Civic Organizations 40,310,785
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 1,030,240
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,740 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 1,859,399
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
2,740 Total Financials 2,889,639
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.6% (12.4% OF TOTAL INVESTMENTS)
50 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 100.00 N/R 50,078
Mortgage Hospital Revenue Bonds, New York and
Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 -
AMBAC Insured
545 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 100.00 AA 556,576
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 A 1,289,525
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 A 1,809,429
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 A- 4,649,040
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 BBB+ 3,826,238
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, 1/10 at 101.00 A 8,060,959
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series
1999A, 5.500%, 7/01/22 - NPFG Insured
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba1 1,017,120
Lenox Hill Hospital Obligated Group, Series 2001, 5.500%,
7/01/30
5,600 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 5,840,632
Memorial Sloan Kettering Cancer Center, Series 2006,
5.000%, 7/01/35 (UB)
3,400 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A2 3,480,308
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
2,925 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 3,200,886
New York and Presbyterian Hospital, Series 2004A, 5.250%,
8/15/15 - FSA Insured
1,800 Dormitory Authority of the State of New York, Revenue Bonds, 11/16 at 100.00 Baa1 1,784,664
North Shore Long Island Jewish Obligated Group, Series
2005A, 5.000%, 11/01/34
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 1,254,925
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 855,144
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
Madison County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Oneida Health System, Series 2007A:
710 5.250%, 2/01/27 No Opt. Call BBB- 653,754
625 5.500%, 2/01/32 No Opt. Call BBB- 573,831
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 A+ 1,043,350
1,250 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 A+ 1,301,775
725 New York City Industrial Development Agency, New York, Civic 7/12 at 100.00 Ba2 675,961
Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 715 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 Ba2 $ 666,244
Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
1,100 Yonkers Industrial Development Agency, New York, Revenue 7/11 at 101.00 B- 1,015,102
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
42,980 Total Health Care 43,605,541
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.6% (3.8% OF TOTAL INVESTMENTS)
4,530 New York City Housing Development Corporation, New York, 7/15 at 100.00 AA+ 4,810,679
Capital Fund Program Revenue Bonds, Series 2005, 5.000%,
7/01/25 - FGIC Insured (UB)
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 1,637,821
2,000 5.600%, 11/01/42 5/11 at 101.00 AA 2,031,100
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 924,751
450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 452,772
1,500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 1,544,205
Multifamily Housing Revenue Bonds, Series 2004A, 5.250%,
11/01/30
690 New York State Housing Finance Agency, Affordable Housing 11/17 at 100.00 Aa2 693,574
Revenue, Series 2007A, 5.250%, 11/01/38 (Alternative
Minimum Tax)
1,100 New York State Housing Finance Agency, Secured Mortgage 2/10 at 101.00 Aa1 1,111,913
Program Multifamily Housing Revenue Bonds, Series 1999I,
6.200%, 2/15/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,790 Total Housing/Multifamily 13,206,815
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.2% (3.5% OF TOTAL INVESTMENTS)
835 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/17 at 100.00 Aa1 831,919
Bonds, 2007 Series 145, 5.125%, 10/01/37 (Alternative
Minimum Tax)
2,295 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/15 at 100.00 Aa1 2,191,725
Bonds, Series 130, 4.650%, 4/01/27 (Alternative Minimum
Tax)
880 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/17 at 100.00 Aa1 887,445
Bonds, Series 148, 2007, 5.200%, 10/01/32 (Alternative
Minimum Tax)
1,250 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/10 at 100.50 Aa1 1,257,063
Bonds, Series 73A, 5.250%, 10/01/17 (Alternative Minimum
Tax)
285 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100.00 Aa1 285,128
Bonds, Series 82, 5.650%, 4/01/30 (Alternative Minimum
Tax)
5,110 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/11 at 100.00 Aa1 5,137,747
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 1,678,409
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,315 Total Housing/Single Family 12,269,436
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.5% (3.6% OF TOTAL INVESTMENTS)
1,100 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 A- 1,139,479
Collateralized Revenue Bonds, Cabrini of Westchester
Project, Series 2006, 5.200%, 2/15/41
645 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 A1 651,102
Supported Debt, Ozanam Hall of Queens Nursing Home
Revenue Bonds, Series 2006, 5.000%, 11/01/31
1,375 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 102.00 BBB 1,382,906
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 N/R 35,593
425 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 N/R 279,374
1,350 New York City Industrial Development Agency, New York, Civic 7/11 at 101.00 N/R 1,374,368
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2001A-1, 7.250%, 7/01/16
Nuveen Investments 35
NNP | Nuveen New York Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1:
$ 1,965 5.500%, 7/01/18 7/16 at 101.00 N/R $ 1,794,693
755 5.800%, 7/01/23 7/16 at 101.00 N/R 670,833
2,740 Oswego County Industrial Development Agency, New York, 2/10 at 100.50 AA+ 2,769,893
FHA-Insured Mortgage Assisted Civic Facility Revenue
Bonds, Bishop Commons Inc., Series 1999A, 5.375%, 2/01/49
340 Suffolk County Industrial Development Agency, New York, 7/16 at 101.00 N/R 302,097
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2008-B1, 5.800%, 7/01/23
2,405 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/10 at 100.00 AAA 2,435,664
Revenue Bonds, Loretto Rest Residential Healthcare
Facility, Series 1997A, 5.600%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
13,150 Total Long-Term Care 12,836,002
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
575 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 561,545
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.7% (7.8% OF TOTAL INVESTMENTS)
3,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AA 3,314,580
Series 2005F-1, 5.000%, 9/01/19 - SYNCORA GTY Insured
6,400 New York City, New York, General Obligation Bonds, Fiscal 6/16 at 100.00 AA 6,903,104
Series 2006J-1, 5.000%, 6/01/25 (UB)
10,000 New York City, New York, General Obligation Bonds, Fiscal 12/17 at 100.00 AA 10,966,700
2007D-1, 5.125%, 12/01/26 (UB)
1,800 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 2,002,986
2008, 5.250%, 8/15/16 (UB)
2,500 New York City, New York, General Obligation Bonds, 5.000%, 11/14 at 100.00 AAA 2,736,400
11/01/19 - FSA Insured (UB)
Oneida County, New York, General Obligation Public
Improvement Bonds, Series 2000:
200 5.375%, 4/15/18 - NPFG Insured 10/09 at 102.00 A+ 204,540
200 5.375%, 4/15/19 - NPFG Insured 10/09 at 102.00 A+ 204,514
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
750 5.250%, 7/01/23 1/10 at 100.00 A3 750,863
500 5.250%, 7/01/24 1/10 at 100.00 A3 500,545
------------------------------------------------------------------------------------------------------------------------------------
25,350 Total Tax Obligation/General 27,584,232
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 36.0% (23.9% OF TOTAL INVESTMENTS)
2,400 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 2,639,472
Series 2003A, 5.000%, 11/01/23
Dormitory Authority of the State of New York, Lease Revenue
Bonds, Nassau County Board of Cooperative Educational
Services, Series 2001A:
1,265 5.250%, 8/15/17 - FSA Insured 8/11 at 100.00 AAA 1,347,187
1,385 5.250%, 8/15/18 - FSA Insured 8/11 at 100.00 AAA 1,469,693
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AA- 1,061,300
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 759,580
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 5,247,600
2,500 5.000%, 11/15/30 11/12 at 100.00 AA 2,550,550
Metropolitan Transportation Authority, New York, State
Service Contract Refunding Bonds, Series 2002A:
2,175 5.750%, 7/01/18 No Opt. Call AA- 2,617,460
2,000 5.125%, 1/01/29 7/12 at 100.00 AA- 2,054,820
1,300 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AA- 1,329,744
1,680 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 1,387,663
Revenue Bonds, Series 2003, 5.500%, 1/01/34
36 Nuveen Investments
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 2004:
$ 2,670 5.000%, 10/15/25 - NPFG Insured (UB) 10/14 at 100.00 AAA $ 2,878,821
2,125 5.000%, 10/15/26 - NPFG Insured (UB) 10/14 at 100.00 AAA 2,282,803
2,475 5.000%, 10/15/29 - AMBAC Insured (UB) 10/14 at 100.00 AAA 2,631,668
3,100 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 3,328,687
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
2,665 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 2,870,685
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%,
2/01/23
3,640 New York City Transitional Finance Authority, New York, 11/17 at 100.00 AAA 4,021,545
Future Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%,
11/01/27
2,400 New York City Transitional Finance Authority, New York, 5/19 at 100.00 AAA 2,980,032
Future Tax Secured Bonds, Tender Option Bond Trust 3545,
13.321%, 5/01/38 (IF)
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,067,190
Infrastructure Revenue Bonds, Series 2003A, 5.000%,
3/15/21
5,000 New York State Environmental Facilities Corporation, State 12/17 at 100.00 AAA 5,512,050
Personal Income Tax Revenue Bonds, Series 2008A, 5.000%,
12/15/27 (UB)
2,030 New York State Housing Finance Agency, State Personal Income 9/15 at 100.00 AAA 2,135,540
Tax Revenue Bonds, Economic Development and Housing,
Series 2006A, 5.000%, 3/15/36
1,100 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,159,433
Series 2005G, 5.000%, 1/01/30 - FSA Insured (UB)
1,000 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AA 1,104,670
Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21
- AMBAC Insured
5,600 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 6,883,352
Fund Bonds, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured
(UB)
2,800 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 3,040,044
Fund Bonds, Series 2007, 5.000%, 4/01/27
4,285 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 AAA 4,587,564
Revenue Bonds, Series 2002A, 5.125%, 3/15/21
6,700 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 7,173,354
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- 3,225,210
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
3,595 New York State Urban Development Corporation, Service No Opt. Call AA- 3,784,708
Contract Revenue Bonds, Correctional and Youth
Facilities, Series 2002A, 5.500%, 1/01/17 (Mandatory put
1/01/11)
1,300 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 1,378,858
Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
77,880 Total Tax Obligation/Limited 84,511,283
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.3% (6.8% OF TOTAL INVESTMENTS)
660 Albany Parking Authority, New York, Revenue Bonds, Series 10/11 at 101.00 BBB+ 696,300
2001B, 5.250%, 10/15/12
1,500 Metropolitan Transportation Authority, New York, No Opt. Call A 1,712,160
Transportation Revenue Bonds, Series 2003A, 5.000%,
11/15/15 - FGIC Insured
1,900 New York City Industrial Development Agency, New York, 12/09 at 101.00 BB 1,366,746
Special Facilities Revenue Bonds, British Airways PLC,
Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax)
215 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 A+ 224,150
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
1,000 Niagara Frontier Airport Authority, New York, Airport 10/09 at 101.00 A 1,004,780
Revenue Bonds, Buffalo Niagara International Airport,
Series 1999A, 5.625%, 4/01/29 - NPFG 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 - SYNCORA GTY Insured 6/15 at 101.00 AA- 2,477,560
1,080 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 1,151,928
770 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 1,010,687
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 16.962%, 8/15/32 - FSA Insured (IF)
2,040 Puerto Rico Ports Authority, Special Facilities Revenue 12/09 at 100.00 CCC+ 1,563,354
Bonds, American Airlines Inc., Series 1996A, 6.250%,
6/01/26 (Alternative Minimum Tax)
Nuveen Investments 37
NNP | Nuveen New York Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 2,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 $ 2,089,980
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 6,257,667
Purpose Revenue Refunding Bonds, Series 2002B, 5.000%,
11/15/21
2,400 Triborough Bridge and Tunnel Authority, New York, 11/12 at 100.00 Aa3 2,542,632
Subordinate Lien General Purpose Revenue Refunding Bonds,
Series 2002E, 5.250%, 11/15/22 - NPFG Insured
1,750 Triborough Bridge and Tunnel Authority, New York, 11/18 at 100.00 Aa2 2,029,125
Subordinate Lien General Purpose Revenue Refunding Bonds,
Tender Option Bond Trust 1184, 9.031%, 11/15/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
23,365 Total Transportation 24,127,069
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.6% (11.1% OF TOTAL INVESTMENTS) (4)
1,500 Albany Industrial Development Agency, New York, Revenue 12/09 at 101.00 BBB- (4) 1,531,290
Bonds, Albany Law School, Series 1999A, 6.750%, 12/01/29
(Pre-refunded 12/01/09) - RAAI Insured
1,520 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 Aaa 1,759,476
Nursing Home Mortgage Revenue Bonds, Shorefront Jewish
Geriatric Center Inc., Series 2002, 5.200%, 2/01/32
(Pre-refunded 2/01/13)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series
2000D:
25 5.875%, 2/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 26,222
10 5.875%, 2/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 10,486
155 5.875%, 2/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 162,573
20 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 20,977
10 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 10,486
155 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 162,573
25 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 26,222
15 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 15,729
180 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 188,795
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/12 at 100.00 AAA 1,122,700
Columbia University, Series 2002B, 5.375%, 7/01/19
(Pre-refunded 7/01/12)
350 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 366,849
Fashion Institute of Technology, Series 2000, 5.375%,
7/01/20 (Pre-refunded 7/01/10) - FSA Insured
705 Erie County Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA 743,430
York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded 7/15/10)
5,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 5,777,200
Tax Fund Bonds, Series 1998A, 4.500%, 4/01/18
(Pre-refunded 10/01/15) - FGIC Insured
455 Monroe Tobacco Asset Securitization Corporation, New York, 6/10 at 101.00 AAA 475,480
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.150%, 6/01/25 (Pre-refunded 6/01/10)
925 New York City Industrial Development Agency, New York, Civic 7/10 at 102.00 N/R (4) 988,566
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded
7/01/10)
2,215 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 Aa3 (4) 2,426,488
Revenue Bonds, Series 2002A, 5.125%, 3/15/21 (ETM)
2,950 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 3,348,811
Income Tax Revenue Bonds, Series 2003B, 5.000%, 3/15/22
(Pre-refunded 3/15/13)
2,095 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call A (4) 2,108,471
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 1,895,312
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 9,476,322
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded 1/01/22)
3,480 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ (4) 3,731,117
Taxes Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
2,520 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 Baa3 (4) 2,709,756
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded
2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
34,410 Total U.S. Guaranteed 39,085,331
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.1% (5.4% 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 A 3,296,540
3,100 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A 3,281,598
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,300 Nassau County Industrial Development Authority, New York, 6/13 at 100.00 A- $ 2,253,172
Keyspan Glenwood Energy Project, Series 2003, 5.250%,
6/01/27 (Alternative Minimum Tax)
2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 1,928,500
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 Power Authority of the State of New York, General Revenue 11/10 at 100.00 Aa2 4,051,680
Bonds, Series 2000A, 5.250%, 11/15/40
820 Power Authority of the State of New York, General Revenue 11/15 at 100.00 Aa2 912,078
Bonds, Series 2006A, 5.000%, 11/15/19 - FGIC Insured
4,000 Suffolk County Industrial Development Agency, New York, 1/10 at 100.50 N/R 3,375,000
Revenue Bonds, Nissequogue Cogeneration Partners
Facility, Series 1998, 5.500%, 1/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,320 Total Utilities 19,098,568
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.5% (3.7% OF TOTAL INVESTMENTS)
2,495 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,610,243
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 AAA 2,171,979
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 AAA 2,437,197
Water and Sewerage System Revenue Bonds, Fiscal Series
2003A, 5.375%, 6/15/19
New York State Environmental Facilities Corporation, State
Clean Water and Drinking Water Revolving Funds Revenue
Bonds, Pooled Loan Issue, Series 2002F:
1,345 5.250%, 11/15/19 11/12 at 100.00 AAA 1,446,372
4,060 5.250%, 11/15/20 11/12 at 100.00 AAA 4,355,405
------------------------------------------------------------------------------------------------------------------------------------
12,125 Total Water and Sewer 13,021,196
------------------------------------------------------------------------------------------------------------------------------------
$ 323,085 Total Long-Term Municipal Bonds (cost $325,839,775) - 144.1% 338,706,213
================--------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 6.1% (4.0% OF TOTAL INVESTMENTS)
MUNICIPAL BONDS - 0.6% (0.4% OF TOTAL INVESTMENTS)
TAX OBLIGATION/LIMITED - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,500 Metropolitan Transportation Authority, New York, Dedicated 12/09 at 100.00 A-1 1,500,000
Tax Fund Bonds, Variable Rate Demand Revenue Obligations,
Series 2008A, 0.410%, 11/01/31 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
EURO DOLLAR TIME DEPOSITS - 5.5% (3.6% OF TOTAL INVESTMENTS)
12,817 State Street Bank Euro Dollar Time Deposit, 0.010%, 10/01/09 N/A N/A 12,817,285
------------------------------------------------------------------------------------------------------------------------------------
$ 14,317 Total Short-Term Investments (cost $14,317,285) 14,317,285
================--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $340,157,060) - 150.2% 353,023,498
-----------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (14.7)% (34,645,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 4,379,083
-----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (37.3)% (6) (87,650,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 235,107,581
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 24.8%.
N/A Not applicable.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 39
NAN | Nuveen New York Dividend Advantage Municipal Fund
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.5% (1.6% OF TOTAL INVESTMENTS)
$ 500 New York City Industrial Development Agency, New York, 9/15 at 100.00 BB+ $ 347,690
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
3,600 Seneca Nation of Indians Capital Improvements Authority, 6/17 at 100.00 BB 3,024,000
New York, Special Obligation Bonds, Series 2007A,
5.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,100 Total Consumer Discretionary 3,371,690
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.6% OF TOTAL INVESTMENTS)
305 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 298,604
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
790 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 790,040
Asset-Backed Refunding Bonds, Series 2002, 5.375%,
5/15/33
240 Rensselaer Tobacco Asset Securitization Corporation, New 6/12 at 100.00 BBB 233,712
York, Tobacco Settlement Asset-Backed Bonds, Series
2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series
2006:
805 4.750%, 6/01/22 6/16 at 100.00 BBB 806,771
1,125 5.000%, 6/01/26 6/16 at 100.00 BBB 1,064,036
------------------------------------------------------------------------------------------------------------------------------------
3,265 Total Consumer Staples 3,193,163
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.3% (11.6% OF TOTAL
INVESTMENTS)
380 Albany Industrial Development Agency, New York, Revenue 7/17 at 100.00 BBB 356,493
Bonds, Albany Law School, Series 2007A, 5.000%, 7/01/31
160 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 127,037
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/37
120 Cattaraugus County Industrial Development Agency, New York, 5/16 at 100.00 BBB- 107,818
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,635 Dormitory Authority of the State of New York, General 7/17 at 100.00 BBB- 1,515,073
Revenue Bonds, Manhattan College, Series 2007A, 5.000%,
7/01/41 - RAAI Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue 7/32 at 100.00 AA- 1,093,000
Bonds, State University Dormitory Facilities, Series
2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - SYNCORA
GTY Insured
705 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AA- 721,568
Bonds, State University Dormitory Facilities, Series
2004A, 5.000%, 7/01/29 - NPFG Insured
195 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 AAA 202,537
Bonds, Fashion Institute of Technology, Series 2000,
5.375%, 7/01/20 - FSA Insured
1,250 Dormitory Authority of the State of New York, Revenue 1/10 at 101.00 BBB- 1,263,438
Bonds, Marymount Manhattan College, Series 1999, 6.250%,
7/01/29 - RAAI Insured
1,630 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 Baa1 1,404,669
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
370 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A 380,419
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 2/10 at 102.00 A3 3,105,114
2,750 5.500%, 8/01/24 - RAAI Insured 2/10 at 102.00 A3 2,775,080
3,070 Monroe County Industrial Development Agency, New York, 12/09 at 102.00 BBB- 3,089,464
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- 323,994
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- 1,823,508
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
1,630 New York City Industrial Development Agency, New York, 1/17 at 100.00 BBB 1,510,961
PILOT Revenue Bonds, Queens Baseball Stadium Project,
Series 2006, 4.750%, 1/01/42 - AMBAC Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,240 New York City Industrial Development Authority, New York, 9/16 at 100.00 BBB- $ 1,983,475
PILOT Revenue Bonds, Yankee Stadium Project, Series
2006, 4.500%, 3/01/39 - FGIC Insured
1,500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 BBB 1,523,340
Civic Facility Revenue Bonds, Niagara University, Series
2001A, 5.350%, 11/01/23 - RAAI Insured
245 Seneca County Industrial Development Authority, New York, 10/17 at 100.00 BBB 219,745
Revenue Bonds, New York Chiropractic College, Series
2007, 5.000%, 10/01/27
250 Town of Hempstead Local Development, New York, Corporation 2/19 at 100.00 A 260,815
Revenue Refunding Bonds, Series 2009A, and Revenue
Bonds, Adelphi University Project, Series 2009B, 5.250%,
2/01/39
------------------------------------------------------------------------------------------------------------------------------------
24,310 Total Education and Civic Organizations 23,787,548
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,100 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 1,133,264
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,740 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 1,859,399
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
2,840 Total Financials 2,992,663
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 30.4% (20.4% OF TOTAL INVESTMENTS)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Medical Center, Series 1999:
1,120 6.000%, 5/01/19 11/09 at 101.00 N/R 1,123,618
1,460 6.000%, 5/01/29 11/09 at 101.00 N/R 1,338,032
1,970 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 100.50 A 1,992,931
Mortgage Hospital Revenue Bonds, Memorial Hospital of
William F. and Gertrude F. Jones Inc., Series 1999,
5.250%, 8/01/19 - NPFG Insured
4,825 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 101.00 N/R 4,879,858
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.450%, 8/01/29 - AMBAC Insured
625 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 652,594
Mortgage Revenue Bonds, Montefiore Hospital, Series
2004, 5.000%, 8/01/29 - FGIC Insured
2,600 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 A- 2,686,112
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 1/10 at 100.00 A3 2,002,280
2,000 5.500%, 7/01/27 - RAAI Insured 1/10 at 100.00 A3 2,000,400
2,000 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 BBB+ 2,040,660
Bonds, 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 Ba1 150,780
500 5.500%, 7/01/30 7/11 at 101.00 Ba1 423,800
3,150 Dormitory Authority of the State of New York, Revenue 7/16 at 100.00 AA 3,285,356
Bonds, Memorial Sloan Kettering Cancer Center, Series
2006, 5.000%, 7/01/35 (UB)
1,575 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 A2 1,612,202
Bonds, Mount Sinai NYU Health Obligated Group, Series
2000A, 6.500%, 7/01/25
250 Dormitory Authority of the State of New York, Revenue 1/10 at 100.00 A2 250,148
Bonds, Mount Sinai NYU Health, Series 2000C, 5.500%,
7/01/26
1,415 Dormitory Authority of the State of New York, Revenue 8/14 at 100.00 AAA 1,548,463
Bonds, New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
1,000 Dormitory Authority of the State of New York, Revenue 11/16 at 100.00 Baa1 991,480
Bonds, North Shore Long Island Jewish Obligated Group,
Series 2005A, 5.000%, 11/01/34
2,000 Dormitory Authority of the State of New York, Revenue 7/17 at 100.00 Baa2 2,007,900
Bonds, NYU Hospitals Center, Series 2007B, 5.625%,
7/01/37
500 Dormitory Authority of the State of New York, Revenue 7/13 at 100.00 Baa1 501,970
Bonds, South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
600 Dormitory Authority of the State of New York, Revenue 7/13 at 100.00 Baa1 570,096
Bonds, Winthrop-South Nassau University Hospital
Association, Series 2003A, 5.500%, 7/01/32
Nuveen Investments 41
NAN | Nuveen New York Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 420 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB $ 362,439
Civic Facility Revenue Bonds, Nicholas H. Noyes
Hospital, Series 2005, 6.000%, 7/01/30
Madison County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Oneida Health System, Series 2007A:
410 5.250%, 2/01/27 No Opt. Call BBB- 377,520
360 5.500%, 2/01/32 No Opt. Call BBB- 330,527
1,750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 A+ 1,822,485
Health System Revenue Bonds, Series 2003A, 5.250%,
2/15/22 - AMBAC Insured
565 New York City Industrial Development Agency, New York, 7/12 at 100.00 Ba2 526,783
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 Ba2 93,181
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 4,046,918
Civic Facility Revenue Bonds, Kingston Hospital, Series
1999, 5.650%, 11/15/24
3,170 Yates County Industrial Development Agency, New York, 2/10 at 101.00 AAA 3,453,525
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- 599,833
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
41,180 Total Health Care 41,671,891
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.4% (5.7% OF TOTAL INVESTMENTS)
2,585 New York City Housing Development Corporation, New York, 7/15 at 100.00 AA+ 2,745,167
Capital Fund Program Revenue Bonds, Series 2005, 5.000%,
7/01/25 - FGIC Insured (UB)
3,000 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 3,051,840
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 772,103
Multifamily Housing Revenue Bonds, Series 2004A, 5.250%,
11/01/30
4,000 New York City Housing Development Corporation, New York, 5/19 at 100.00 AA 4,021,238
Multifamily Housing Revenue Bonds, Series 2009J, 4.800%,
5/01/36 (WI/DD, Settling 10/01/09)
600 New York State Housing Finance Agency, Affordable Housing 5/19 at 100.00 Aa2 604,632
Revenue Bonds, Series 2009B, 4.500%, 11/01/29
405 New York State Housing Finance Agency, Affordable Housing 11/17 at 100.00 Aa2 407,098
Revenue, Series 2007A, 5.250%, 11/01/38 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,340 Total Housing/Multifamily 11,602,078
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.7% OF TOTAL INVESTMENTS)
645 Guam Housing Corporation, Mortgage-Backed Securities No Opt. Call AAA 705,314
Program Single Family Mortgage Revenue Bonds, Series
1998A, 5.750%, 9/01/31 (Alternative Minimum Tax)
485 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/17 at 100.00 Aa1 483,210
Bonds, 2007 Series 145, 5.125%, 10/01/37 (Alternative
Minimum Tax)
1,350 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/15 at 100.00 Aa1 1,289,250
Bonds, Series 130, 4.650%, 4/01/27 (Alternative Minimum
Tax)
510 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/17 at 100.00 Aa1 514,315
Bonds, Series 148, 2007, 5.200%, 10/01/32 (Alternative
Minimum Tax)
1,600 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100.00 Aa1 1,600,720
Bonds, Series 82, 5.650%, 4/01/30 (Alternative Minimum
Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 849,316
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,430 Total Housing/Single Family 5,442,125
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.7% (3.8% OF TOTAL INVESTMENTS)
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AA 2,041,940
Nursing Home Mortgage Revenue Bonds, Gurwin Jewish
Geriatric Center of Long Island, Series 2005A, 4.900%,
2/15/41
600 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 A- 621,534
Collateralized Revenue Bonds, Cabrini of Westchester
Project, Series 2006, 5.200%, 2/15/41
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 375 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 A1 $ 378,548
Supported Debt, Ozanam Hall of Queens Nursing Home
Revenue Bonds, Series 2006, 5.000%, 11/01/31
250 Dormitory Authority of the State of New York, Revenue 7/15 at 100.00 N/R 164,338
Bonds, Providence Rest, Series 2005, 5.000%, 7/01/35 -
ACA Insured
905 East Rochester Housing Authority, New York, Senior Living 8/16 at 101.00 N/R 745,883
Revenue Bonds, Woodland Village Project, Series 2006,
5.500%, 8/01/33
750 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 763,538
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2001A-1, 7.250%, 7/01/16
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1:
1,140 5.500%, 7/01/18 7/16 at 101.00 N/R 1,041,196
635 5.800%, 7/01/23 7/16 at 101.00 N/R 564,210
1,485 Yonkers Industrial Development Agency, New York, 2/10 at 100.50 A 1,501,394
FHA-Insured Mortgage Revenue Bonds, Michael Malotz
Skilled Nursing Pavilion, Series 1999, 5.450%, 2/01/29 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
8,140 Total Long-Term Care 7,822,581
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
330 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 322,278
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.6% (9.8% OF TOTAL INVESTMENTS)
2,600 New York City, New York, General Obligation Bonds, Fiscal 11/09 at 101.00 AA 2,628,418
Series 1999J, 5.125%, 5/15/29 - NPFG Insured
3,700 New York City, New York, General Obligation Bonds, Fiscal 8/16 at 100.00 AA 3,997,293
Series 2007A, 5.000%, 8/01/25
6,590 New York City, New York, General Obligation Bonds, Fiscal 12/17 at 100.00 AA 7,266,068
2007D-1, 5.125%, 12/01/25 (UB)
1,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 1,112,770
2004, 5.250%, 8/15/16 (UB)
Rochester, New York, General Obligation Bonds, Series 1999:
720 5.250%, 10/01/18 - NPFG Insured No Opt. Call A 840,182
720 5.250%, 10/01/19 - NPFG Insured No Opt. Call A 844,481
2,280 Rockland County, New York, General Obligation Bonds, Series 10/09 at 101.00 AA- 2,311,760
1999, 5.600%, 10/15/16
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
500 5.250%, 7/01/23 1/10 at 100.00 A3 500,575
500 5.250%, 7/01/24 1/10 at 100.00 A3 500,545
------------------------------------------------------------------------------------------------------------------------------------
18,610 Total Tax Obligation/General 20,002,092
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.0% (21.4% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue 11/13 at 100.00 AAA 1,123,540
Bonds, Series 2003A, 5.250%, 11/01/21
590 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 AA- 631,595
Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 -
CIFG Insured
1,850 Dormitory Authority of the State of New York, Secured 2/10 at 100.00 A1 1,859,768
Hospital Revenue Refunding Bonds, Wyckoff Heights
Medical Center, Series 1998H, 5.300%, 8/15/21 - NPFG
Insured
185 Dormitory Authority of the State of New York, State 3/15 at 100.00 AAA 203,655
Personal Income Tax Revenue Bonds, Series 2005F, 5.000%,
3/15/21 - FSA Insured
550 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 586,856
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured (UB)
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 2,099,040
2,000 5.000%, 11/15/30 11/12 at 100.00 AA 2,040,440
1,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 1,027,410
Service Contract Refunding Bonds, Series 2002A, 5.125%,
1/01/29
1,130 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 933,369
Revenue Bonds, Series 2003, 5.500%, 1/01/34
Nuveen Investments 43
NAN | Nuveen New York Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments September 30, 2009
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 2004:
$ 1,100 5.000%, 10/15/25 - NPFG Insured (UB) 10/14 at 100.00 AAA $ 1,186,031
810 5.000%, 10/15/26 - NPFG Insured (UB) 10/14 at 100.00 AAA 870,151
2,375 5.000%, 10/15/29 - AMBAC Insured (UB) 10/14 at 100.00 AAA 2,525,338
2,100 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 2,254,917
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
1,670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,798,891
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%,
2/01/23
2,115 New York City Transitional Finance Authority, New York, 11/17 at 100.00 AAA 2,336,694
Future Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%,
11/01/27
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,067,190
Infrastructure Revenue Bonds, Series 2003A, 5.000%,
3/15/21
2,920 New York State Environmental Facilities Corporation, State 12/17 at 100.00 AAA 3,238,806
Personal Income Tax Revenue Bonds, Series 2008A, 5.000%,
12/15/26 (UB)
1,190 New York State Housing Finance Agency, State Personal Income 9/15 at 100.00 AAA 1,251,868
Tax Revenue Bonds, Economic Development and Housing,
Series 2006A, 5.000%, 3/15/36
700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 737,821
Series 2005G, 5.000%, 1/01/30 - FSA Insured (UB)
1,000 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AA 1,104,670
Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21
- AMBAC Insured
3,400 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 4,179,178
Fund Bonds, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured
(UB)
1,625 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 1,764,311
Fund Bonds, Series 2007, 5.000%, 4/01/27
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 AA- 4,282,598
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AA- 2,128,600
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,075,070
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
1,330 New York State Urban Development Corporation, State Personal 3/17 at 100.00 AAA 1,579,761
Income Tax Revenue Bonds, Tender Option Bond Trust 09-6W,
12.884%, 3/15/37 (IF)
------------------------------------------------------------------------------------------------------------------------------------
40,640 Total Tax Obligation/Limited 43,887,568
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.8% (7.9% OF TOTAL INVESTMENTS)
310 Albany Parking Authority, New York, Revenue Bonds, Series 7/11 at 101.00 BBB+ 317,316
2001A, 5.625%, 7/15/25
3,000 Metropolitan Transportation Authority, New York, 11/17 at 100.00 A 3,153,090
Transportation Revenue Bonds, Series 2007B, 5.000%,
11/15/33
1,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 1,044,230
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- 1,793,505
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
200 New York City Industrial Development Agency, New York, Civic 10/17 at 100.00 N/R 147,908
Facility Revenue Bonds, Bronx Parking Development
Company, LLC Project, Series 2007, 5.750%, 10/01/37
105 New York City Industrial Development Agency, New York, 12/09 at 101.00 BB 75,531
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- 1,026,760
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
450 New York City Industrial Development Authority, New York, 5/12 at 100.00 B- 377,015
JetBlue, 5.000%, 5/15/20 (Alternative Minimum Tax)
160 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 A+ 166,810
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
500 Niagara Frontier Airport Authority, New York, Airport 10/09 at 101.00 A 502,390
Revenue Bonds, Buffalo Niagara International Airport,
Series 1999A, 5.625%, 4/01/29 - NPFG Insured (Alternative
Minimum Tax)
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
$ 1,300 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- $ 1,400,360
615 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 655,959
440 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 577,535
Revenue Bonds, One Hundred Forty Eighth Series 2007,
Trust 2920, 16.962%, 8/15/32 - FSA Insured (IF)
1,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 1,078,110
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 2,720,725
Purpose Revenue Refunding Bonds, Series 2002B, 5.000%,
11/15/21
1,000 Triborough Bridge and Tunnel Authority, New York, 11/18 at 100.00 Aa2 1,159,500
Subordinate Lien General Purpose Revenue Refunding Bonds,
Tender Option Bond Trust 1184, 9.031%, 11/15/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
15,330 Total Transportation 16,196,744
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.1% (3.4% OF TOTAL INVESTMENTS) (4)
390 Albany Parking Authority, New York, Revenue Bonds, Series 7/11 at 101.00 BBB+ (4) 429,082
2001A, 5.625%, 7/15/25 (Pre-refunded 7/15/11)
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series
2000D:
25 5.875%, 8/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 26,222
10 5.875%, 8/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 10,486
305 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 319,683
Fashion Institute of Technology, Series 2000, 5.375%,
7/01/20 (Pre-refunded 7/01/10) - FSA Insured
425 Erie County Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA 448,167
York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.000%, 7/15/20 (Pre-refunded 7/15/10)
535 Metropolitan Transportation Authority, New York, Commuter 1/10 at 100.00 N/R (4) 536,771
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured (ETM)
1,050 Monroe Tobacco Asset Securitization Corporation, New York, 6/10 at 101.00 AAA 1,097,261
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.150%, 6/01/25 (Pre-refunded 6/01/10)
455 New York City Industrial Development Agency, New York, Civic 7/10 at 102.00 N/R (4) 486,268
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded
7/01/10)
750 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ (4) 804,120
Taxes Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
1,250 Westchester Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA 1,325,963
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 Baa3 (4) 1,505,420
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded
2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
6,595 Total U.S. Guaranteed 6,989,443
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4% (3.6% 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 A 2,658,500
500 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A 529,290
1,400 Nassau County Industrial Development Authority, New York, 6/13 at 100.00 A- 1,371,496
Keyspan Glenwood Energy Project, Series 2003, 5.250%,
6/01/27 (Alternative Minimum Tax)
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 249,388
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 Baa2 590,022
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)
2,000 Power Authority of the State of New York, General Revenue 11/10 at 100.00 Aa2 2,030,659
Bonds, Series 2000A, 5.250%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
7,250 Total Utilities 7,429,355
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45
NAN | Nuveen New York Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 1,130 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AAA $ 1,237,767
Water and Sewerage System Revenue Bonds, Fiscal Series
2003A, 5.375%, 6/15/19
------------------------------------------------------------------------------------------------------------------------------------
$ 190,490 Total Long-Term Investments (cost $191,808,447) - 142.8% 195,948,986
================--------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 6.3% (4.2% OF TOTAL INVESTMENTS)
$ 8,674 State Street Bank Euro Dollar Time Deposit, 0.010%, 10/01/09 N/A N/A 8,673,657
================--------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $8,673,657) 8,673,657
-----------------------------------------------------------------------------------------------------------------
Total Investments (cost $200,482,104) - 149.1% 204,622,643
-----------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.9)% (17,735,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,780,484
-----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (37.4)% (5) (51,400,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 137,268,127
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 25.1%.
N/A Not applicable.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
46 Nuveen Investments
NXK | Nuveen New York Dividend Advantage Municipal Fund 2
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.9% (1.3% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, 9/15 at 100.00 BB+ $ 191,230
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
1,950 Seneca Nation of Indians Capital Improvements Authority, New 6/17 at 100.00 BB 1,638,000
York, Special Obligation Bonds, Series 2007A, 5.000%,
12/01/23
------------------------------------------------------------------------------------------------------------------------------------
2,225 Total Consumer Discretionary 1,829,230
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.4% (1.7% OF TOTAL INVESTMENTS)
300 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 293,709
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 486,725
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
150 Rensselaer Tobacco Asset Securitization Corporation, New 6/12 at 100.00 BBB 146,070
York, Tobacco Settlement Asset-Backed Bonds, Series
2001A, 5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series
2006:
600 4.750%, 6/01/22 6/16 at 100.00 BBB 601,320
835 5.000%, 6/01/26 6/16 at 100.00 BBB 789,751
------------------------------------------------------------------------------------------------------------------------------------
2,385 Total Consumer Staples 2,317,575
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.4% (11.4% OF TOTAL
INVESTMENTS)
260 Albany Industrial Development Agency, New York, Revenue 7/17 at 100.00 BBB 243,916
Bonds, Albany Law School, Series 2007A, 5.000%, 7/01/31
110 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 87,338
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/37
1,975 Amherst Industrial Development Agency, New York, Revenue 8/11 at 102.00 N/R 1,999,451
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- 80,863
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,125 Dormitory Authority of the State of New York, General 7/17 at 100.00 BBB- 1,042,481
Revenue Bonds, Manhattan College, Series 2007A, 5.000%,
7/01/41 - RAAI Insured
2,000 Dormitory Authority of the State of New York, Insured 1/10 at 100.50 A 2,015,860
Revenue Bonds, New York Medical College, Series 1998,
5.000%, 7/01/21 - NPFG Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AA- 1,093,000
Bonds, State University Dormitory Facilities, Series
2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - SYNCORA
GTY Insured
485 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AA- 496,398
Bonds, State University Dormitory Facilities, Series
2004A, 5.000%, 7/01/29 - NPFG Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 A 1,005,760
Canisius College, Series 2000, 5.250%, 7/01/30 - NPFG
Insured
1,265 Dormitory Authority of the State of New York, Third General 1/10 at 101.00 AA- 1,274,475
Resolution Consolidated Revenue Bonds, City University
System, Series 1998-1, 5.250%, 7/01/25 - FGIC Insured
120 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 Baa1 103,411
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
265 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A 272,462
Revenue Bonds, Adelphi University, Civic Facility
Project, Series 2005, 5.000%, 10/01/35
2,190 Monroe County Industrial Development Agency, New York, Civic 6/11 at 102.00 BBB- 2,199,242
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, Civic 10/14 at 100.00 A- 240,541
Facility Revenue Bonds, St. Francis College, Series 2004,
5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, Civic 2/11 at 100.00 A- 1,114,366
Facility Revenue Bonds, YMCA of Greater New York, Series
2002, 5.250%, 8/01/21
1,120 New York City Industrial Development Agency, New York, PILOT 1/17 at 100.00 BBB 1,038,206
Revenue Bonds, Queens Baseball Stadium Project, Series
2006, 4.750%, 1/01/42 - AMBAC Insured
Nuveen Investments 47
NXK | Nuveen New York Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,460 New York City Industrial Development Authority, New York, 9/16 at 100.00 BBB- $ 1,292,801
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
4.500%, 3/01/39 - FGIC Insured
170 Seneca County Industrial Development Authority, New York, 10/17 at 100.00 BBB 152,476
Revenue Bonds, New York Chiropractic College, Series
2007, 5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
15,980 Total Education and Civic Organizations 15,753,047
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 2.0% (1.4% OF TOTAL INVESTMENTS)
500 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 515,120
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,305 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 1,394,549
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
1,805 Total Financials 1,909,669
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.1% (16.0% OF TOTAL INVESTMENTS)
3,000 Dormitory Authority of the State of New York, FHA-Insured 2/10 at 101.00 N/R 3,033,690
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 2/10 at 101.00 N/R 2,533,432
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 2/10 at 100.00 N/R 1,505,610
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 A 1,724,279
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 A- 1,756,304
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
500 Dormitory Authority of the State of New York, Insured 1/10 at 100.00 A3 500,570
Revenue 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 Ba1 423,800
Lenox Hill Hospital Obligated Group, Series 2001, 5.500%,
7/01/30
2,300 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 2,398,831
Memorial Sloan Kettering Cancer Center, Series 2006,
5.000%, 7/01/35 (UB)
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 1/10 at 100.00 A2 1,250,738
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
520 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 569,046
New York and Presbyterian Hospital, Series 2004A, 5.250%,
8/15/15 - FSA Insured
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 Baa2 1,505,925
NYU Hospitals Center, Series 2007B, 5.625%, 7/01/37
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 475,080
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 250,256
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
Madison County Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Oneida Health System, Series 2007A:
275 5.250%, 2/01/27 No Opt. Call BBB- 253,215
250 5.500%, 2/01/32 No Opt. Call BBB- 229,533
365 Nassau County Industrial Development Agency, New York, No Opt. Call Baa1 376,972
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, 2/10 at 100.00 A+ 855,542
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 A+ 520,710
Health System Revenue Bonds, Series 2003A, 5.250%,
2/15/22 - AMBAC Insured
480 New York City Industrial Development Agency, New York, Civic 7/12 at 100.00 Ba2 447,533
Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
485 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 Ba2 451,928
Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
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 $ 438,711
610 5.875%, 11/01/32 11/12 at 100.00 Baa1 616,551
------------------------------------------------------------------------------------------------------------------------------------
21,925 Total Health Care 22,118,256
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.6% (1.8% OF TOTAL INVESTMENTS)
1,000 New York City Housing Development Corporation, New York, 11/11 at 100.00 AA 1,005,370
Multifamily Housing Revenue Bonds, Series 2001C-2,
5.400%, 11/01/33 (Alternative Minimum Tax)
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
455 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 462,376
225 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 226,386
500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 514,735
Multifamily Housing Revenue Bonds, Series 2004A, 5.250%,
11/01/30
290 New York State Housing Finance Agency, Affordable Housing 11/17 at 100.00 Aa2 291,502
Revenue, Series 2007A, 5.250%, 11/01/38 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,470 Total Housing/Multifamily 2,500,369
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.9% (2.0% OF TOTAL INVESTMENTS)
335 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/17 at 100.00 Aa1 333,764
Bonds, 2007 Series 145, 5.125%, 10/01/37 (Alternative
Minimum Tax)
950 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/15 at 100.00 Aa1 907,250
Bonds, Series 130, 4.650%, 4/01/27
(Alternative Minimum Tax)
350 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/17 at 100.00 Aa1 352,961
Bonds, Series 148, 2007, 5.200%, 10/01/32
(Alternative Minimum Tax)
1,140 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100.00 Aa1 1,140,513
Bonds, Series 82, 5.650%, 4/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,775 Total Housing/Single Family 2,734,488
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.6% (3.9% OF TOTAL INVESTMENTS)
450 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 A- 466,151
Collateralized Revenue Bonds, Cabrini of
Westchester Project, Series 2006, 5.200%, 2/15/41
2,150 Dormitory Authority of the State of New York, Insured 7/11 at 102.00 A3 2,214,285
Revenue Bonds, Rehabilitation Association Pooled Loan
Program 1, Series 2001A, 5.000%, 7/01/23 - AMBAC Insured
255 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 A1 257,412
Supported Debt, Ozanam Hall of Queens Nursing Home
Revenue Bonds, Series 2006, 5.000%, 11/01/31
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 N/R 35,593
175 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 N/R 115,036
635 East Rochester Housing Authority, New York, Senior Living 8/16 at 101.00 N/R 523,354
Revenue Bonds, Woodland Village Project,
Series 2006, 5.500%, 8/01/33
525 New York City Industrial Development Agency, New York, Civic 7/11 at 101.00 N/R 534,476
Facility Revenue Bonds, Special
Needs Facilities Pooled Program, Series 2001A-1, 7.250%,
7/01/16
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1:
355 5.500%, 7/01/18 7/16 at 101.00 N/R 324,232
440 5.800%, 7/01/23 7/16 at 101.00 N/R 390,949
430 Suffolk County Industrial Development Agency, New York, 7/16 at 100.00 N/R 392,732
Civic Facility Revenue Bonds, Special
Needs Facilities Pooled Program, Series 2008-B1, 5.500%,
7/01/18
170 Yonkers Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 151,048
Facilities Revenue Bonds, Special Needs
Facilities Pooled Program Bonds, Series 2008-C1, 5.800%,
7/01/23
------------------------------------------------------------------------------------------------------------------------------------
5,635 Total Long-Term Care 5,405,268
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
230 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 224,618
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NXK | Nuveen New York Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.6% (12.2% OF TOTAL INVESTMENTS)
$ 1,775 Bath Central School District, Steuben County, New York, 6/12 at 100.00 A $ 1,829,936
General Obligation Bonds, Series 2002, 4.000%, 6/15/18 -
FGIC Insured
3,605 New York City, New York, General Obligation Bonds, Fiscal 2/10 at 100.50 AA 3,627,492
Series 1998H, 5.375%, 8/01/27 - MBIA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AA 2,209,720
Series 2005F-1, 5.000%, 9/01/19 - SYNCORA GTY Insured
2,600 New York City, New York, General Obligation Bonds, Fiscal 6/16 at 100.00 AA 2,804,386
Series 2006J-1, 5.000%, 6/01/25 (UB)
4,540 New York City, New York, General Obligation Bonds, Fiscal 12/17 at 100.00 AA 5,005,759
2007D-1, 5.125%, 12/01/25 (UB)
750 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 834,578
2004C-1, 5.250%, 8/15/16 (UB)
United Nations Development Corporation, New York, Senior
Lien Revenue Bonds, Series 2004A:
250 5.250%, 7/01/23 1/10 at 100.00 A3 250,288
250 5.250%, 7/01/24 1/10 at 100.00 A3 250,273
------------------------------------------------------------------------------------------------------------------------------------
15,770 Total Tax Obligation/General 16,812,432
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.9% (18.6% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,123,540
Series 2003A, 5.250%, 11/01/21
125 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 137,605
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 1,836,660
Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA
Insured
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 462,554
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 2004:
1,140 5.000%, 10/15/25 - NPFG Insured (UB) 10/14 at 100.00 AAA 1,229,159
835 5.000%, 10/15/26 - NPFG Insured (UB) 10/14 at 100.00 AAA 897,007
750 5.000%, 10/15/29 - AMBAC Insured (UB) 10/14 at 100.00 AAA 797,475
1,300 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 1,395,901
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
1,000 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,077,180
Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%,
2/01/23
1,460 New York City Transitional Finance Authority, New York, 11/17 at 100.00 AAA 1,613,037
Future Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%,
11/01/27
1,000 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,071,220
Future Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - NPFG Insured
1,000 New York State Environmental Facilities Corporation, 3/14 at 100.00 AA- 1,067,190
Infrastructure Revenue Bonds, Series 2003A, 5.000%,
3/15/21
2,020 New York State Environmental Facilities Corporation, State 12/17 at 100.00 AAA 2,226,868
Personal Income Tax Revenue Bonds, Series 2008A, 5.000%,
12/15/27 (UB)
840 New York State Housing Finance Agency, State Personal Income 9/15 at 100.00 AAA 883,672
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 A 1,096,654
1,125 5.250%, 5/15/24 - AMBAC Insured 5/11 at 100.00 A 1,142,786
300 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 316,209
Series 2005G, 5.000%, 1/01/30 - FSA Insured (UB)
2,300 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 2,827,091
Fund Bonds, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured
(UB)
1,125 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 1,221,446
Fund Bonds, Series 2007, 5.000%, 4/01/27
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,100 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- $ 2,235,030
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/22 -
AMBAC Insured
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,075,070
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
23,800 Total Tax Obligation/Limited 25,733,354
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.1% (11.8% OF TOTAL INVESTMENTS)
895 Albany Parking Authority, New York, Revenue Bonds, Series 7/11 at 101.00 BBB+ 925,162
2001A, 5.625%, 7/15/20
2,500 Metropolitan Transportation Authority, New York, 11/17 at 100.00 A 2,627,575
Transportation Revenue Bonds, Series 2007B, 5.000%,
11/15/33
460 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 475,277
Transportation 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- 1,281,075
American Airlines-JFK International Airport Special
Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
50 New York City Industrial Development Agency, New York, 12/09 at 101.00 BB 35,967
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- 1,026,760
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
New York City Industrial Development Authority, New York,
JetBlue,:
50 5.000%, 5/15/20 (Alternative Minimum Tax) 5/12 at 100.00 B- 41,891
250 5.125%, 5/15/30 (Alternative Minimum Tax) 5/12 at 100.00 B- 185,835
3,400 Niagara Frontier Airport Authority, New York, Airport 10/09 at 101.00 A 3,416,252
Revenue Bonds, Buffalo Niagara International Airport,
Series 1999A, 5.625%, 4/01/29 - NPFG Insured (Alternative
Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
1,000 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- 1,077,200
280 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 298,648
310 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 406,900
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 16.962%, 8/15/32 - FSA Insured (IF)
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,720,725
Purpose Revenue Refunding Bonds, Series 2002B, 5.000%,
11/15/21
780 Triborough Bridge and Tunnel Authority, New York, No Opt. Call Aa3 961,514
Subordinate Lien General Purpose Revenue Refunding Bonds,
Series 2002E, 5.500%, 11/15/20 - NPFG Insured
750 Triborough Bridge and Tunnel Authority, New York, 11/18 at 100.00 Aa2 869,625
Subordinate Lien General Purpose Revenue Refunding Bonds,
Tender Option Bond Trust 1184, 9.031%, 11/15/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
15,475 Total Transportation 16,350,406
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.2% (7.1% OF TOTAL INVESTMENTS) (4)
2,750 Albany Industrial Development Agency, New York, Revenue 7/11 at 101.00 N/R (4) 3,009,105
Bonds, St. Rose College, Series 2001A, 5.375%, 7/01/31
(Pre-refunded 7/01/11) - AMBAC Insured
1,105 Albany Parking Authority, New York, Revenue Bonds, Series 7/11 at 101.00 BBB+ (4) 1,211,743
2001A, 5.625%, 7/15/20 (Pre-refunded 7/15/11)
1,905 Dormitory Authority of the State of New York, Service 4/12 at 100.00 AA- (4) 2,122,284
Contract Bonds, Child Care Facilities Development
Program, Series 2002, 5.375%, 4/01/17 (Pre-refunded
4/01/12)
3,205 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 3,389,255
Contract Revenue Bonds, Correctional Facilities, Series
2000C, 5.125%, 1/01/21 (Pre-refunded 1/01/11) - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
8,965 Total U.S. Guaranteed 9,732,387
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.3% (7.8% OF TOTAL INVESTMENTS)
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 A 1,807,780
1,700 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A 1,799,586
250 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A- 258,865
General Revenue Bonds, Series 2006B, 5.000%, 12/01/35 -
CIFG Insured
900 Nassau County Industrial Development Authority, New York, 6/13 at 100.00 A- 881,676
Keyspan Glenwood Energy Project, Series 2003, 5.250%,
6/01/27 (Alternative Minimum Tax)
Nuveen Investments 51
NXK | Nuveen New York Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments September 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 450 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 $ 444,011
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)
2,000 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 1,928,500
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)
2,000 Power Authority of the State of New York, General Revenue 11/10 at 100.00 Aa2 2,025,840
Bonds, Series 2000A, 5.250%, 11/15/40
Suffolk County Industrial Development Agency, New York,
Revenue Bonds, Nissequogue Cogeneration Partners
Facility, Series 1998:
1,075 5.300%, 1/01/13 (Alternative Minimum Tax) 1/10 at 100.50 N/R 1,009,919
750 5.500%, 1/01/23 (Alternative Minimum Tax) 1/10 at 100.50 N/R 632,812
------------------------------------------------------------------------------------------------------------------------------------
10,825 Total Utilities 10,788,989
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AAA 1,085,989
Water and Sewerage System Revenue Bonds, Fiscal Series
2001D, 5.500%, 6/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 131,265 Total Long-Term Investments (cost $132,791,395) - 141.3% 135,296,077
================--------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.9% (2.0% OF TOTAL INVESTMENTS)
$ 2,743 State Street Bank Euro Dollar Time Deposit, 0.010%, 10/01/09 N/A N/A 2,742,583
================--------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $2,742,583) 2,742,583
-----------------------------------------------------------------------------------------------------------------
Total Investments (cost $135,533,978) - 144.2% 138,038,660
-----------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.7)% (12,155,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 3,966,857
-----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (35.6)% (5) (34,100,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 95,750,517
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 24.7%.
N/A Not applicable.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
52 Nuveen Investments
| Statement of
| Assets & Liabilities September 30, 2009
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $146,000,783,
$33,133,925, $340,157,060, $200,482,104
and $135,533,978, respectively) $ 150,556,728 $ 37,001,831 $ 353,023,498 $ 204,622,643 $ 138,038,660
Receivables:
Interest 2,103,654 507,466 5,061,167 2,959,257 2,062,736
Investments sold 1,242,300 -- 390,000 3,513,450 2,365,531
Other assets 3,302 560 80,697 31,441 45,942
------------------------------------------------------------------------------------------------------------------------------------
Total assets 153,905,984 37,509,857 358,555,362 211,126,791 142,512,869
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 3,255,000 -- 34,645,000 17,735,000 12,155,000
Payables:
Investments purchased -- -- -- 4,000,000 --
Common share dividends 455,549 111,646 830,675 564,368 403,372
Preferred share dividends N/A N/A 5,147 2,379 3,492
Accrued expenses:
Management fees 65,640 19,526 183,158 106,152 62,400
Offering costs -- 7,000 -- -- --
Other 66,666 24,280 133,801 50,765 38,088
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,842,855 162,452 35,797,781 22,458,664 12,662,352
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value N/A N/A 87,650,000 51,400,000 34,100,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 150,063,129 $ 37,347,405 $ 235,107,581 $ 137,268,127 $ 95,750,517
====================================================================================================================================
Common shares outstanding 15,143,721 2,347,000 15,039,571 9,265,330 6,488,517
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 9.91 $ 15.91 $ 15.63 $ 14.82 $ 14.76
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 151,437 $ 23,470 $ 150,396 $ 92,653 $ 64,885
Paid-in surplus 144,471,732 33,527,105 219,751,087 131,847,314 92,363,720
Undistributed (Over-distribution of) net
investment income 546,665 (63,670) 2,472,895 1,124,909 855,114
Accumulated net realized gain (loss) from investments
and derivative transactions 337,350 (7,406) (133,235) 62,712 (37,884)
Net unrealized appreciation (depreciation)
of investments 4,555,945 3,867,906 12,866,438 4,140,539 2,504,682
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 150,063,129 $ 37,347,405 $ 235,107,581 $ 137,268,127 $ 95,750,517
====================================================================================================================================
Authorized shares:
Common 250,000,000 Unlimited 200,000,000 Unlimited Unlimited
Preferred N/A N/A 1,000,000 Unlimited Unlimited
====================================================================================================================================
N/A Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
Nuveen Investments 53
| Statement of
| Operations Year Ended September 30, 2009
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV)* (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 7,437,860 $ 660,067 $ 17,425,100 $ 10,202,044 $ 6,957,470
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 792,511 93,458 1,973,808 1,146,424 797,938
Preferred shares - auction fees N/A N/A 181,873 106,498 70,215
Preferred shares - dividend disbursing agent fees N/A N/A 40,000 10,000 10,000
Shareholders' servicing agent fees and expenses 29,967 806 28,262 3,151 1,432
Interest expense on floating rate obligations 42,520 -- 480,739 245,668 167,988
Custodian's fees and expenses 36,415 4,092 66,707 41,528 32,700
Directors'/Trustees' fees and expenses 3,966 574 8,107 4,665 3,218
Professional fees 14,326 18,759 29,042 18,554 15,203
Shareholders' reports - printing and mailing expenses 42,335 1,284 46,220 31,978 24,111
Stock exchange listing fees 9,213 -- 9,244 9,229 917
Investor relations expense 18,373 1,902 28,242 16,469 11,285
Other expenses 7,923 2,216 32,607 20,178 18,984
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 997,549 123,091 2,924,851 1,654,342 1,153,991
Custodian fee credit (7,460) (186) (17,089) (8,760) (6,751)
Expense reimbursement -- -- -- (72,293) (152,015)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 990,089 122,905 2,907,762 1,573,289 995,225
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,447,771 537,162 14,517,338 8,628,755 5,962,245
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 132,227 (7,406) 209,269 237,884 32,039
Futures 176,461 -- -- -- --
Change in net unrealized appreciation (depreciation)
of:
Investments 10,734,027 3,867,906 28,157,222 15,279,735 10,675,788
Futures 13,211 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 11,055,926 3,860,500 28,366,491 15,517,619 10,707,827
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A N/A (815,348) (544,164) (303,512)
From accumulated net realized gains N/A N/A (608,160) (276,265) (241,933)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Preferred shareholders N/A N/A (1,423,508) (820,429) (545,445)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 17,503,697 $ 4,397,662 $ 41,460,321 $ 23,325,945 $ 16,124,627
====================================================================================================================================
* For the period April 28, 2009 (commencement of operations) through
September 30, 2009.
N/A Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
54 Nuveen Investments
| Statement of
| Changes in Net Assets
NEW YORK VALUE (NNY) NEW YORK VALUE 2 (NYV) NEW YORK PERFORMANCE PLUS (NNP)
---------------------------- --------------------------- -------------------------------
FOR THE PERIOD 4/28/09
YEAR ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS) YEAR ENDED YEAR ENDED
9/30/09 9/30/08 THROUGH 9/30/09 9/30/09 9/30/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,447,771 $ 6,538,133 $ 537,162 $ 14,517,338 $ 14,829,808
Net realized gain (loss) from:
Investments 132,227 637,972 (7,406) 209,269 1,501,901
Forward swaps -- 643,914 -- -- 1,157,352
Futures 176,461 205,254 -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 10,734,027 (11,120,133) 3,867,906 28,157,222 (27,654,000)
Forward swaps -- (323,848) -- -- (657,782)
Futures 13,211 (13,211) -- -- --
Distributions to Preferred Shareholders:
From net investment income N/A N/A N/A (815,348) (3,995,402)
From accumulated net realized gains N/A N/A N/A (608,160) (158,639)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 17,503,697 (3,431,919) 4,397,662 41,460,321 (14,976,762)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,448,739) (6,441,276) (600,832) (11,090,805) (10,862,069)
From accumulated net realized gains (1,484,820) (163,300) -- (1,928,624) (442,981)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (7,933,559) (6,604,576) (600,832) (13,019,429) (11,305,050)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs adjustments -- -- 33,450,300 -- --
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 208,108 -- -- -- --
Repurchased -- -- -- (309,124) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 208,108 -- 33,450,300 (309,124) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 9,778,246 (10,036,495) 37,247,130 28,131,768 (26,281,812)
Net assets applicable to Common
shares at the beginning of period 140,284,883 150,321,378 100,275 206,975,813 233,257,625
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 150,063,129 $ 140,284,883 $ 37,347,405 $ 235,107,581 $ 206,975,813
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 546,665 $ 569,746 $ (63,670) $ 2,472,895 $ (128,758)
====================================================================================================================================
N/A Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
Nuveen Investments 55
| 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
9/30/09 9/30/08 9/30/09 9/30/08
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,628,755 $ 8,918,978 $ 5,962,245 $ 6,142,237
Net realized gain (loss) from:
Investments 237,884 329,463 32,039 681,579
Forward swaps -- 790,334 -- 568,424
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 15,279,735 (17,070,552) 10,675,788 (11,597,726)
Forward swaps -- (423,860) -- (284,292)
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (544,164) (2,186,301) (303,512) (1,522,297)
From accumulated net realized gains (276,265) (197,285) (241,933) (81,611)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 23,325,945 (9,839,223) 16,124,627 (6,093,686)
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,777,589) (6,499,628) (4,735,461) (4,449,564)
From accumulated net realized gains (813,496) (631,896) (901,605) (261,128)
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (7,591,085) (7,131,524) (5,637,066) (4,710,692)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs adjustments -- -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- -- --
Repurchased -- -- (76,617) --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- -- (76,617) --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 15,734,860 (16,970,747) 10,410,944 (10,804,378)
Net assets applicable to Common
shares at the beginning of period 121,533,267 138,504,014 85,339,573 96,143,951
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 137,268,127 $ 121,533,267 $ 95,750,517 $ 85,339,573
============================================================================================================
Undistributed (Over-distribution of)
net investments income at the
end of period $ 1,124,909 $ (163,537) $ 855,114 $ (67,993)
============================================================================================================
See accompanying notes to financial statements.
56 Nuveen Investments
| Statement of
| Cash Flows Year ended September 30, 2009
NEW YORK NEW YORK NEW YORK
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 2
(NNP) (NAN) (NXK)
-----------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
SHARES FROM OPERATIONS $ 41,460,321 $ 23,325,945 $ 16,124,627
Adjustments to reconcile the net increase (decrease) in net assets
applicable to Common shares from operations to net cash provided by
(used in) operating activities:
Purchases of investments (2,298,551) (6,837,149) (375,000)
Proceeds from sales and maturities of investments 14,781,200 14,306,190 5,814,043
Proceeds from (Purchases of) short-term investments, net (11,317,285) (8,673,657) (2,742,583)
Amortization (Accretion) of premiums and discounts, net 234,347 170,148 166,265
(Increase) Decrease in interest receivable 9,843 21,326 (11,713)
(Increase) Decrease in receivable for investments sold 920,808 (3,513,450) (2,365,531)
(Increase) Decrease in other assets 327,578 115,858 61,990
Increase (Decrease) in payable for investments purchased (987,141) 4,000,000 --
Increase (Decrease) in payable for Preferred share dividends (112,706) (30,653) (66,937)
Increase (Decrease) in accrued management fees 23,195 18,743 12,045
Increase (Decrease) in accrued other liabilities 14,657 (816) (1,370)
Net realized (gain) loss from investments (209,269) (237,884) (32,039)
Change in net unrealized (appreciation) depreciation of investments (28,157,222) (15,279,735) (10,675,788)
Taxes paid on undistributed capital gains (32,153) (2,713) (20,096)
-----------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 14,657,622 7,382,153 5,887,913
-----------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations (2,705,000) (1,140,000) (990,000)
Cash distributions paid to Common shareholders (12,905,186) (7,538,313) (5,588,064)
Cost of Common shares repurchased (309,124) -- (76,617)
-----------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (15,919,310) (8,678,313) (6,654,681)
-----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (1,261,688) (1,296,160) (766,768)
Cash at the beginning of year 1,261,688 1,296,160 766,768
-----------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ -- $ -- $ --
=======================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest on floating rate obligations was as follows:
NEW YORK NEW YORK NEW YORK
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 2
(NNP) (NAN) (NXK)
-----------------------------------------------------------------------------------------------------------------------
Cash paid for interest $ 480,739 $ 245,668 $ 167,988
=======================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 57
| Notes to
| Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen New York Municipal Value Fund, Inc. (NNY), Nuveen
New York Municipal Value Fund 2 (NYV), 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)
(collectively, the "Funds"). Common shares of New York Value (NNY), New York
Performance Plus (NNP) and New York Dividend Advantage (NAN) are traded on the
New York Stock Exchange while Common shares of New York Municipal Value 2 (NYV)
and New York Dividend Advantage 2 (NXK) are traded on the NYSE Amex. The Funds
are registered under the Investment Company Act of 1940, as amended, as
closed-end management investment companies.
Prior to the commencement of operations, New York Value 2 (NYV) had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Asset Management (the "Adviser"), a
wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and the
recording of the organization expense ($15,000) and its reimbursement by Nuveen
Investments, LLC, also a wholly owned subsidiary of Nuveen.
Each Fund seeks to provide current income exempt from both regular federal and
New York state income taxes by investing primarily in a portfolio of municipal
obligations issued by state and local government authorities within the state of
New York or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with US generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. Futures contracts are
valued using the closing settlement price, or, in the absence of such a price,
at the mean of the bid and asked prices. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At September 30, 2009, New
York Dividend Advantage (NAN) had outstanding when-issued/delayed delivery
commitments of $4,000,000. There were no such outstanding purchase commitments
in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
58 Nuveen Investments
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and New York state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Preferred Shares
New York Value (NNY) and New York Value 2 (NYV) are not authorized to issue
Preferred shares. The following Funds have issued and outstanding Preferred
shares, $25,000 stated value per share, as a means of effecting financial
leverage. Each Fund's Preferred shares are issued in 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. As of September 30, 2009, 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 1,129 -- --
Series T 564 -- --
Series W 1,410 -- 1,364
Series F 403 2,056 --
-------------------------------------------------------------------------------------------------
Total 3,506 2,056 1,364
=================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the management or investment
policies of the Funds. However, one continuing implication of these auction
failures for Common shareholders is that the Funds' cost of leverage will likely
be higher at times than it otherwise would have been had the auctions continued
to be successful. As a result, the Funds' future Common share earnings may
likely have been incrementally lower than they otherwise would have been. As of
September 30, 2009, the aggregate amount of outstanding Preferred shares
redeemed by each Fund is as follows:
NEW YORK NEW YORK NEW YORK
PERFORMANCE DIVIDEND DIVIDEND
PLUS ADVANTAGE ADVANTAGE 2
(NNP) (NAN) (NXK)
-------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 36,650,000 $ 17,600,000 $ 12,900,000
=================================================================================================
Effective May 1, 2009, auction participation fees for Nuveen
Preferred shares with respect to auctions that have failed have been reduced
from 25 bps (annualized) to 15 bps (annualized). All auction participants have
signed new agreements incorporating this change.
Nuveen Investments 59
| Notes to
| Financial Statements (continued)
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the fiscal year ended September 30, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At September 30, 2009, the Funds were not invested in externally-deposited
Recourse Trusts.
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV) (NNP) (NAN) (NXK)
---------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ --
=====================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended September 30, 2009, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV)* (NNP) (NAN) (NXK)
---------------------------------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $ 3,264,644 $ -- $ 34,808,466 $ 17,896,808 $ 12,218,219
Average annual interest rate and fees 1.30% --% 1.38% 1.37% 1.37%
=====================================================================================================================
* Fund did not invest in self-deposited inverse floaters during the period
April 28, 2009 (commencement of operations) through September 30, 2009.
Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
60 Nuveen Investments
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 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.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
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. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." 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. The Funds did not invest in forward interest rate swap transactions
during the fiscal year ended September 30, 2009.
Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in order
to gain exposure to, or hedge against changes in interest rates. Upon entering
into a futures contract, a Fund is required to deposit with the broker an amount
of cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized as
"Deposits with brokers for open futures contracts" on the Statement of Assets
and Liabilities. Subsequent payments ("variation margin") are made or received
by a Fund each day, depending on the daily fluctuation of the value of the
contract. Variation margin is recognized as a receivable or payable for
"Variation Margin on futures contracts" on the Statement of Assets and
Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. When the contract is closed or
expired, a Fund records a realized gain or loss equal to the difference between
the value of the contract on the closing date and value of the contract when
originally entered into and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations. New York Value (NNY) was the
only Fund to invest in futures contracts during the fiscal year ended September
30, 2009.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
The average number of futures contracts outstanding for New York Value (NNY)
during the fiscal year ended September 30, 2009, were as follows:
NEW YORK
VALUE
(NNY)
--------------------------------------------------------------------------------
Average number of futures contracts outstanding 9*
================================================================================
* The average number of contracts is calculated based on the outstanding
contracts at the beginning of the fiscal year end and at the end of each
fiscal quarter within the current fiscal year. New York Value (NNY) was
not invested in futures contracts at the end of the current fiscal year.
Refer to Footnote 3 -- Derivative Instruments and Hedging Activities for further
details on futures contract activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the
Nuveen Investments 61
| Notes to
| Financial Statements (continued)
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the
valuations fluctuate, either up or down, by at least the predetermined threshold
amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Organizational and Offering Costs
Nuveen Investments, LLC has agreed to reimburse all organizational costs
($15,000) and pay all Common share offering costs (other than the sales load)
that exceed $.03 per share for New York Value 2 (NYV). New York Value 2 (NYV)
common share offering costs ($70,200) were recorded as reductions of the
proceeds from the sale of common shares.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted authoritative guidance under
GAAP on determining fair value measurements. This guidance defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles, and expands disclosure about fair value measurements. In
determining the value of each Fund's investments various inputs are used. These
inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of September 30, 2009:
NEW YORK VALUE (NNY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 140,013,496 $ -- $ 140,013,496
Short-Term Investments 5,543,232 5,000,000 -- 10,543,232
------------------------------------------------------------------------------------------------------
Total $ 5,543,232 $ 145,013,496 $ -- $ 150,556,728
======================================================================================================
NEW YORK VALUE 2 (NYV) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 35,362,292 $ -- $ 35,362,292
Short-Term Investments 1,639,539 -- -- 1,639,539
------------------------------------------------------------------------------------------------------
Total $ 1,639,539 $ 35,362,292 $ -- $ 37,001,831
======================================================================================================
62 Nuveen Investments
NEW YORK PERFORMANCE PLUS (NNP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 338,706,213 $ -- $ 338,706,213
Short-Term Investments 12,817,285 1,500,000 -- 14,317,285
------------------------------------------------------------------------------------------------------
Total $ 12,817,285 $ 340,206,213 $ -- $ 353,023,498
======================================================================================================
NEW YORK DIVIDEND ADVANTAGE (NAN) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 195,948,986 $ -- $ 195,948,986
Short-Term Investments 8,673,657 -- -- 8,673,657
------------------------------------------------------------------------------------------------------
Total $ 8,673,657 $ 195,948,986 $ -- $ 204,622,643
======================================================================================================
NEW YORK DIVIDEND ADVANTAGE 2 (NXK) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 135,296,077 $ -- $ 135,296,077
Short-Term Investments 2,742,583 -- -- 2,742,583
------------------------------------------------------------------------------------------------------
Total $ 2,742,583 $ 135,296,077 $ -- $ 138,038,660
======================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Funds
record derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, under this
guidance they are considered to be non-hedge transactions for financial
reporting purposes. For additional information on the derivative instruments in
which each Fund was invested during and at the end of the reporting period,
refer to the Portfolio of Investments, Financial Statements and Footnote 1 -
General Information and Significant Accounting Policies.
The following tables present the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the fiscal year
ended September 30, 2009, on derivative instruments, as well as the primary risk
exposure associated with each. New York Value (NNY) held derivative instruments
during the fiscal year ended September 30, 2009. None of the Funds had
outstanding derivative contracts at September 30, 2009.
NEW YORK
VALUE
NET REALIZED GAIN (LOSS) FROM FUTURES CONTRACTS (NNY)
---------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ 176,461
=============================================================================================
NEW YORK
VALUE
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES CONTRACTS (NNY)
---------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ 13,211
=============================================================================================
Nuveen Investments 63
| Notes to
| Financial Statements (continued)
4. FUND SHARES
Common Shares
Transactions in Common shares were as follows:
NEW YORK
NEW YORK VALUE (NNY) NEW YORK VALUE 2 (NYV) PERFORMANCE PLUS (NNP)
----------------------- ---------------------------- ------------------------
YEAR YEAR FOR THE PERIOD 4/28/09 YEAR YEAR
ENDED ENDED (COMMENCEMENT OF OPERATIONS) ENDED ENDED
9/30/09 9/30/08 THROUGH 9/30/09 9/30/09 9/30/08
---------------------------------------------------------------------------------------------------------------------------
Common shares:
Sold* -- -- 2,340,000 -- --
Issued to shareholders due
to reinvestment of distributions 23,357 -- -- -- --
Repurchased -- -- -- (27,800) --
---------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- -- $ 11.10 --
Discount per share repurchased -- -- -- 19.25% --
===========================================================================================================================
NEW YORK NEW YORK
DIVIDEND ADVANTAGE (NAN) DIVIDEND ADVANTAGE 2 (NXK)
------------------------ --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/09 9/30/08 9/30/09 9/30/08
----------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due
to reinvestment of distributions -- -- -- --
Repurchased -- -- (7,200) --
----------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- $ 10.62 --
Discount per share repurchased -- -- 18.33% --
==============================================================================================
* New York Value 2 (NYV) was the only Fund to sell Common shares during the
fiscal year ended September 30, 2009.
Preferred Shares
New York Value (NNY) and New York Value 2 (NYV) are not authorized to issue
Preferred shares. Transactions in Preferred shares were as follows:
NEW YORK NEW YORK
PERFORMANCE PLUS (NNP) DIVIDEND ADVANTAGE (NAN)
----------------------------------------------- ---------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/09 9/30/08 9/30/09 9/30/08
-----------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- 471 $ 11,775,000 -- $ -- -- $ --
Series T -- -- 236 5,900,000 -- -- -- --
Series W -- -- 590 14,750,000 -- -- -- --
Series F -- -- 169 4,225,000 -- -- 704 17,600,000
----------------------------------------------------------------------------------------------------------------------------
Total -- $ -- 1,466 $ 36,650,000 -- $ -- 704 $ 17,600,000
============================================================================================================================
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
-----------------------------------------------
YEAR ENDED YEAR ENDED
9/30/09 9/30/08
-----------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------
Preferred shares redeemed:
Series W -- $ -- 516 $ 12,900,000
================================================================================
64 Nuveen Investments
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended September 30, 2009,
were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV)* (NNP) (NAN) (NXK)
----------------------------------------------------------------------------------------------------------
Purchases $ 3,960,820 $ 32,671,969 $ 2,298,551 $ 6,837,149 $ 375,000
Sales and maturities 7,589,800 1,196,328 14,781,200 14,306,190 5,814,043
==========================================================================================================
* For the period April 28, 2009 (commencement of operations) through
September 30, 2009.
6. 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 timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At September 30, 2009, the cost of investments was as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV) (NNP) (NAN) (NXK)
-----------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 142,419,558 $ 33,120,439 $ 305,077,755 $ 182,642,266 $ 123,252,062
===================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2009, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV) (NNP) (NAN) (NXK)
-----------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 6,437,827 $ 3,881,392 $ 17,492,545 $ 7,099,095 $ 4,415,272
Depreciation (1,558,326) -- (4,203,294) (2,844,826) (1,777,939)
-----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 4,879,501 $ 3,881,392 $ 13,289,251 $ 4,254,269 $ 2,637,333
===================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at September 30, 2009, the Funds' tax year end,
were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV)*** (NNP) (NAN) (NXK)
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 755,511 $ 73,053 $ 3,090,862 $ 1,616,659 $ 1,202,209
Undistributed net ordinary income ** 81,069 -- -- -- 5,541
Undistributed net long-term capital gains 261,484 -- 248,364 258,801 52,301
===================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on September 1, 2009, paid on October 1, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** For the period April 28, 2009 (commencement of operations) through
September 30, 2009.
Nuveen Investments 65
| Notes to
| Financial Statements (continued)
The tax character of distributions paid during the Funds' tax years ended
September 30, 2009 and September 30, 2008, was designated for purposes of the
dividends paid deduction as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
2009 (NNY) (NYV)***** (NNP) (NAN) (NXK)
----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 6,447,404 $ 450,624 $ 11,827,384 $ 7,301,446 $ 5,057,663
Distributions from net ordinary income ** 535,895 -- 1,105,907 651,694 466,316
Distributions from net long-term capital gains**** 949,431 -- 1,488,610 438,066 677,222
==================================================================================================================================
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2008 (NNY) (NNP) (NAN) (NXK)
-------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 6,441,276 $ 14,832,086 $ 8,711,129 $ 5,933,482
Distributions from net ordinary income** -- 18,150 -- --
Distributions from net long-term capital gains 163,300 601,620 829,181 342,739
===================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
September 30, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended September 30, 2009.
***** For the period April 28, 2009 (commencement of operations) through
September 30, 2009.
New York Value 2 (NYV) has elected to defer net realized losses from investments
incurred from April 28, 2009 (commencement of operations) through September 30,
2009, the Fund's tax year end, ("post-October losses") in accordance with
federal income tax regulations. Post-October capital losses of $7,406 are
treated as having arisen on the first day of the following fiscal year.
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components -- a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund, and for New York Value (NNY) a gross interest
income component. 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 (excluding interest on bonds underlying a "self-deposited
inverse floater" trust that is attributed to the Fund over and above the net
interest earned on the inverse floater itself) of the Fund.
The annual fund-level fee, payable monthly, for New York Performance Plus (NNP),
New York Dividend Advantage (NAN) and New York Dividend Advantage 2 (NXK) is
based upon the average daily net assets of each Fund as follows:
NEW YORK PERFORMANCE PLUS (NNP)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
NEW YORK DIVIDEND ADVANTAGE (NAN)
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
66 Nuveen Investments
The annual fund-level fee, payable monthly, for New York Value 2 (NYV) is based
upon the average daily managed net assets of the Fund as follows:
NEW YORK VALUE 2 (NYV)
AVERAGE DAILY MANAGED NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4000%
For the next $125 million .3875
For the next $250 million .3750
For the next $500 million .3625
For the next $1 billion .3500
For net assets over $2 billion .3375
================================================================================
The annual complex-level fee, payable monthly, which is
additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is
based on the aggregate amount of total fund net assets managed as stated in the
following table. As of September 30, 2009, the complex-level fee rate was
..1901%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first 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 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.
Nuveen Investments 67
| Notes to
| Financial Statements (continued)
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 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.
8. NEW ACCOUNTING STANDARDS
Accounting for Transfers of Financial Assets
During June 2009, the FASB issued changes to the authoritative guidance under
GAAP on accounting for transfers of financial assets. The objective of this
guidance is to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and a
transferor's continuing involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on November 2, 2009, to shareholders of record
on October 15, 2009, as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE VALUE 2 PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NYV) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------------------------------------
Dividend per share $ .0355 $ .0640 $ .0670 $ .0645 $ .0655
==============================================================================================================
Municipal Term Preferred Shares (MTP)
On November 16, 2009, NAN filed with the Securities and Exchange Commission a
registration statement seeking to register MTP, a new form of closed-end fund
preferred shares. This registration statement, if declared effective by the SEC,
may enable the Fund to issue to the public shares of MTP to refinance all or a
portion of NAN's auction rate preferred shares. The issuance of MTP by NAN is
subject to market conditions, the receipt of ratings, and on final approval by
NAN's Board of Trustees. There is no assurance that MTP will be issued.
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under GAAP for
subsequent events. This guidance requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. This guidance is intended to establish general standards of accounting
and for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. This guidance
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. This guidance is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through November 25, 2009, which is the date the financial statements were
issued.
68 Nuveen Investments
| Financial
| Highlights
Nuveen Investments 69
| Financial
| Highlights
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
---------------------------------------------------------------------------------------------------------
NEW YORK VALUE (NNY)
---------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ 9.28 $ .43 $ .73 N/A N/A $ 1.16
2008 9.94 .43 (.65) N/A N/A (.22)
2007 10.09 .43 (.15) N/A N/A .28
2006 10.07 .44 .01 N/A N/A .45
2005 10.01 .45 .04 N/A N/A .49
NEW YORK VALUE 2 (NYV)
---------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009(a) 14.33 .23 1.64 N/A N/A 1.87
=========================================================================================================
LESS DISTRIBUTIONS
------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
-------------------------------------------------------------------------------------------------
NEW YORK VALUE (NNY)
-------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ (.43) $ (.10) $ (.53) $ -- $ 9.91 $ 9.51
2008 (.43) (.01) (.44) -- 9.28 9.01
2007 (.43) -- (.43) -- 9.94 9.50
2006 (.43) -- (.43) -- 10.09 9.51
2005 (.43) -- (.43) -- 10.07 9.26
NEW YORK VALUE 2 (NYV)
-------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009(a) (.26) -- (.26) (.03) 15.91 14.84
=================================================================================================
70 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT/REFUND
---------------------- ------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE** VALUE** SHARES (000) INTEREST++(b) INTEREST++ INCOME++
---------------------------------------------------------------------------------------------------------------------
NEW YORK VALUE (NNY)
---------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 11.78% 13.00% $ 150,063 .71% .68% 4.58%
2008 (.62) (2.38) 140,285 .71 .68 4.39
2007 4.40 2.79 150,321 .69 .65 4.32
2006 7.50 4.56 152,573 .66 .66 4.35
2005 5.88 4.95 152,236 .66 .66 4.44
NEW YORK VALUE 2 (NYV)
---------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009(a) .73 12.99 37,347 .84* .84* 3.66*
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT/REFUND***
-------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(b) INTEREST++ INCOME++ RATE
-----------------------------------------------------------------------------------
NEW YORK VALUE (NNY)
-----------------------------------------------------------------------------------
Year Ended 9/30:
2009 .71% .68% 4.58% 3%
2008 .71 .68 4.39 16
2007 .69 .65 4.32 15
2006 .65 .65 4.38 13
2005 .66 .66 4.46 18
NEW YORK VALUE 2 (NYV)
-----------------------------------------------------------------------------------
Year Ended 9/30:
2009(a) . 84* .84* 3.66* 4
===================================================================================
N/A Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
*** After expense reimbursement, legal fee refund, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) For the period April 28, 2009 (commencement of operations) through
September 30, 2009.
(b) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 71
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
--------------------------------------------------------------------------------------------------------------------------
NEW YORK PERFORMANCE PLUS (NNP)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ 13.74 $ .96 $ 1.89 $ (.05) $ (.04) $ 2.76
2008 15.48 .98 (1.69) (.27) (.01) (.99)
2007 16.01 .99 (.41) (.27) (.01) .30
2006 16.44 1.01 --*** (.20) (.05) .76
2005 16.50 1.05 .10 (.14) --*** 1.01
NEW YORK DIVIDEND ADVANTAGE (NAN)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 13.12 .93 1.68 (.06) (.03) 2.52
2008 14.95 .96 (1.76) (.24) (.02) (1.06)
2007 15.49 .97 (.39) (.24) (.02) .32
2006 15.83 .98 --*** (.21) (.03) .74
2005 15.83 1.03 .09 (.13) -- .99
==========================================================================================================================
LESS DISTRIBUTIONS
----------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
----------------------------------------------------------------------------------------------------------------
NEW YORK PERFORMANCE PLUS (NNP)
----------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ (.74) $ (.13) $ (.87) $ -- $ 15.63 $ 14.77
2008 (.72) (.03) (.75) -- 13.74 11.16
2007 (.77) (.06) (.83) -- 15.48 14.30
2006 (.89) (.30) (1.19) -- 16.01 15.88
2005 (.99) (.08) (1.07) -- 16.44 16.01
NEW YORK DIVIDEND ADVANTAGE (NAN)
----------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 (.73) (.09) (.82) -- 14.82 13.38
2008 (.70) (.07) (.77) -- 13.12 11.36
2007 (.77) (.09) (.86) -- 14.95 14.33
2006 (.89) (.19) (1.08) -- 15.49 15.60
2005 (.99) -- (.99) -- 15.83 16.11
================================================================================================================
PREFERRED SHARES AT END OF PERIOD
------------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
-------------------------------------------------------------------------------------
NEW YORK PERFORMANCE PLUS (NNP)
-------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ 87,650 $ 25,000 $ 92,059
2008 87,650 25,000 84,035
2007 124,300 25,000 71,914
2006 124,300 25,000 73,395
2005 124,300 25,000 74,528
NEW YORK DIVIDEND ADVANTAGE (NAN)
-------------------------------------------------------------------------------------
Year Ended 9/30:
2009 51,400 25,000 91,765
2008 51,400 25,000 84,112
2007 69,000 25,000 75,183
2006 69,000 25,000 76,865
2005 69,000 25,000 77,790
=====================================================================================
72 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
-------------------------- --------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
-------------------------------------------------------------------------------------------------------------------------------
NEW YORK PERFORMANCE PLUS (NNP)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 42.29% 21.05% $ 235,108 1.39% 1.17% 6.91%
2008 (17.61) (6.71) 206,976 1.42 1.27 6.48
2007 (5.02) 1.90 233,258 1.29 1.22 6.33
2006 6.69 4.91 240,618 1.22 1.22 6.33
2005 9.37 6.29 246,255 1.20 1.20 6.36
NEW YORK DIVIDEND ADVANTAGE (NAN)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 26.58 20.29 137,268 1.37 1.17 7.07
2008 (16.02) (7.45) 121,533 1.36 1.23 6.45
2007 (2.86) 2.07 138,504 1.29 1.19 6.15
2006 3.49 4.91 143,147 1.18 1.18 6.11
2005 14.24 6.38 145,701 1.16 1.16 6.13
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
--------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
-------------------------------------------------------------------------------------------------------
NEW YORK PERFORMANCE PLUS (NNP)
-------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 1.39% 1.17% 6.91% 1%
2008 1.42 1.27 6.48 16
2007 1.29 1.22 6.33 14
2006 1.22 1.22 6.33 13
2005 1.20 1.20 6.36 16
NEW YORK DIVIDEND ADVANTAGE (NAN)
-------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 1.31 1.11 7.13 4
2008 1.22 1.09 6.59 17
2007 1.07 .97 6.36 18
2006 .89 .89 6.40 15
2005 .81 .81 6.49 20
=======================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After expense reimbursement, where applicable. Expense ratios do not
reflect the reduction of custodian fee credits earned on the Fund's net
cash on deposit with the custodian bank, where applicable.
*** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 73
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
---------------------------------------------------------------------------------------------------------------------------
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ 13.14 $ .92 $ 1.66 $ (.05) $ (.04) $ 2.49
2008 14.80 .95 (1.64) (.23) (.01) (.93)
2007 15.29 .95 (.34) (.24) (.02) .35
2006 15.57 .97 .05 (.20) (.03) .79
2005 15.60 1.01 .10 (.13) --*** .98
===========================================================================================================================
LESS DISTRIBUTIONS
-----------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
----------------------------------------------------------------------------------------------------------------
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
----------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ (.73) $ (.14) $ (.87) $ -- $ 14.76 $ 13.41
2008 (.69) (.04) (.73) -- 13.14 11.15
2007 (.76) (.08) (.84) -- 14.80 14.16
2006 (.87) (.20) (1.07) -- 15.29 15.47
2005 (.95) (.06) (1.01) -- 15.57 15.34
================================================================================================================
PREFERRED SHARES AT END OF PERIOD
---------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
-----------------------------------------------------------------------------------
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
-----------------------------------------------------------------------------------
Year Ended 9/30:
2009 $ 34,100 $ 25,000 $ 95,198
2008 34,100 25,000 87,566
2007 47,000 25,000 76,140
2006 47,000 25,000 77,695
2005 47,000 25,000 78,514
===================================================================================
74 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------------ -----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 29.95% 20.06% $ 95,751 1.36% 1.16% 6.83%
2008 (16.79) (6.63) 85,340 1.37 1.23 6.25
2007 (3.20) 2.35 96,144 1.32 1.22 5.98
2006 7.96 5.37 99,067 1.19 1.19 5.96
2005 10.61 6.45 100,606 1.18 1.18 6.01
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
---------------------------------------------------------------------------------------------------------
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
---------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2009 1.18% .98% 7.01% 0%
2008 1.11 .97 6.51 17
2007 .99 .89 6.31 17
2006 .78 .78 6.36 14
2005 .74 .74 6.45 19
=========================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After expense reimbursement, where applicable. Expense ratios do not
reflect the reduction of custodian fee credits earned on the Fund's net
cash on deposit with the custodian bank, where applicable.
*** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect Net Investment Income
earned and expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 75
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management
8/22/40 Chairman of Consultant; Treasurer and Director,
333 W. Wacker Drive the Board 1997 197 Humanities Council of Washington D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine
10/22/48 Foundation, a private philanthropic
333 W. Wacker Drive Board Member 1999 197 corporation (since 1996); Director
Chicago, IL 60606 and Chairman, United Fire Group, a
publicly held company; President Pro
Tem of the Board of Regents for the
State of Iowa University System;
Director, Gazette Companies; Life
Trustee of Coe College and the 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.
o WILLIAM C. HUNTER Dean, Tippie College of Business,
3/6/48 University of Iowa (since 2006);
333 W. Wacker Drive Board Member 2004 197 Director (since 2004) of Xerox
Chicago, IL 60606 Corporation; Director (since 2005),
Beta Gamma Sigma International Honor
Society; formerly, Dean and
Distinguished Professor of Finance,
School of Business at the University
of Connecticut (2003-2006);
previously, Senior Vice President and
Director of Research at the Federal
Reserve Bank of Chicago (1995-2003);
Director, SS&C Technologies, Inc.
(May 2005-October 2005); formerly,
Director (1997-2007), Credit Research
Center at Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; retired (since
333 W. Wacker Drive Board Member 2005 197 2004) as Chairman, JPMorgan Fleming
Chicago, IL 60606 Asset Management, President and CEO,
Banc One Investment Advisors
Corporation, and President, One Group
Mutual Funds; prior thereto,
Executive Vice President, Banc One
Corporation and Chairman and CEO,
Banc One Investment Management Group;
Member, Board of Regents, Luther
College; member of the Wisconsin Bar
Association; member of Board of
Directors, Friends of Boerner
Botanical Gardens; member of
Investment Committee, Greater
Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners
9/24/44 Ltd., a real estate investment
333 W. Wacker Drive Board Member 1997 197 company; formerly, Senior Partner and
Chicago, IL 60606 Chief Operating Officer (retired,
2004) of Miller-Valentine Group;
member, University of Dayton Business
School Advisory Council; member,
Dayton Philharmonic Orchestra
Association; formerly, member,
Business Advisory Council, Cleveland
Federal Reserve Bank; formerly,
Director, Dayton Development
Coalition.
76 Nuveen Investments
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and
12/29/47 Dorothy Donnelley Foundation (since
333 W. Wacker Drive Board Member 1997 197 1994); prior thereto, Executive
Chicago, IL 60606 Director, Great Lakes Protection Fund
(from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options
6/28/47 Exchange (since 2006); Director, C2
333 W. Wacker Drive Board Member 2007 197 Options Exchange, Incorporated (since
Chicago, IL 60606 2009); Commissioner, New York State
Commission on Public Authority Reform
(since 2005); formerly, Chair, New
York Racing Association Oversight
Board (2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment
9/29/59 Management America, Inc. (since
333 W. Wacker Drive Board Member 2008 197 2008); Managing Partner, Musso
Chicago, IL 60606 Capital Management (since 2008);
formerly, CEO and President, Northern
Trust Investments (2004-2007);
Executive Vice President,
Quantitative Management & Securities
Lending (2004-2007); prior thereto,
various positions with Northern Trust
Company (since 1994); Member: Goodman
Theatre Board (since 2004), Chicago
Fellowship Boards (since 2005),
University of Illinois Leadership
Council Board (since 2007) and
Catalyst Schools of Chicago Board
(since 2008); formerly, Member:
Northern Trust Mutual Funds Board
(2005-2007), Northern Trust
Investments Board (2004-2007),
Northern Trust Japan Board
(2004-2007), Northern Trust
Securities Inc. Board (2003-2007) and
Northern Trust Hong Kong Board
(1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July
6/14/61 2007) and Director (since 1999) of
333 W. Wacker Drive Board Member 2008 197 Nuveen Investments, Inc.; Chief
Chicago, IL 60606 Executive Officer (since 2007) of
Nuveen Asset Management, Nuveen
Investments Advisors, Inc. formerly,
President (1999-2004) of Nuveen
Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
Nuveen Investments 77
Board Members & Officers (continued)
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002),
9/9/56 Chief Assistant Secretary and Associate
333 W. Wacker Drive Administrative 1988 197 General Counsel of Nuveen
Chicago, IL 60606 Officer Investments, LLC; Managing Director,
Associate General Counsel and
Assistant Secretary, of Nuveen Asset
Management (since 2002) and of
Symphony Asset Management LLC, (since
2003); Vice President and Assistant
Secretary of NWQ Investment
Management Company, LLC. (since
2002), Nuveen Investments Advisers
Inc. (since 2002), Tradewinds Global
Investors, LLC, and Santa Barbara
Asset Management, LLC (since 2006),
Nuveen HydePark Group LLC and Nuveen
Investment Solutions, Inc. (since
2007); Managing Director (since 2004)
and Assistant Secretary (since 1994)
of Nuveen Investments, Inc.;
formerly, Managing Director
(2002-2004), General Counsel
(1998-2004) and Assistant Secretary
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3);
Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice
333 W. Wacker Drive Vice President 2007 122 President, U.S. Structured Products
Chicago, IL 60606 of Nuveen Investments, LLC, (since
1999), prior thereto, Managing
Director of Structured Investments.
o MARK J.P. ANSON President and Executive Director of
6/10/59 Nuveen Investments, Inc. (since
333 W. Wacker Drive Vice President 2009 197 2007); President of Nuveen
Chicago, IL 60606 Investments Institutional Services
Group LLC (since 2007); previously,
Chief Executive Officer of the
British Telecom Pension Scheme
(2006-2007) and Chief Investment
Officer of Calpers (1999-2006); PhD,
Chartered Financial Analyst,
Chartered Alternative Investment
Analyst, Certified Public Accountant,
Certified Management Accountant and
Certified Internal Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004),
1/11/62 previously, Vice President
333 W. Wacker Drive Vice President 2007 122 (1993-2004) of Nuveen Investments,
Chicago, IL 60606 LLC.
o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen
6/1/68 Investments, LLC; previously,
333 W. Wacker Drive Vice President 2009 197 Portfolio Manager, Allstate
Chicago, IL 60606 Investments, LLC (1996-2006);
Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of
333 W. Wacker Drive and Assistant 2000 197 Nuveen Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct
4/11/64 2008) of Nuveen Investments, Inc.;
333 W. Wacker Drive Vice President 2009 197 previously, Head of Institutional
Chicago, IL 60606 Asset Management (2007-2008) of Bear
Stearns Asset Management; Head of
Institutional Asset Mgt (1986-2007)
of Bank of NY Mellon; Chartered
Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of
10/24/45 Nuveen Investments, LLC; Managing
333 W. Wacker Drive Vice President 1998 197 Director (since 2005) of Nuveen Asset
Chicago, IL 60606 Management; Managing Director
(2004-2005), of Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3)
78 Nuveen Investments
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 197 Investments, LLC; Vice President
Chicago, IL 60606 (since 2005) of Nuveen Asset
Management; Certified Public
Accountant.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal
5/7/69 Fixed Income (since 2008) of Nuveen
333 W. Wacker Drive Vice President 2009 133 Asset Management; previously,
Chicago, IL 60606 Chairman, President and Chief
Executive Officer (2002 - 2007) of
Northern Trust Global Advisors, Inc.
and Chief Executive Officer (2007) of
Northern Trust Global Investments
Limited; Certified Public Accountant.
o WALTER M. KELLY Senior Vice President (since 2008),
2/24/70 Chief Compliance Vice President (2006-2008) formerly,
333 W. Wacker Drive Officer and 2003 197 Assistant Vice President and
Chicago, IL 60606 Vice President Assistant General Counsel (2003-2006)
of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant
Secretary (since 2008) of Nuveen
Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009),
3/22/63 formerly, Vice President (2000-2009)
333 W. Wacker Drive Vice President 2000 197 of Nuveen Investments, LLC; Vice
Chicago, IL 60606 President (since 2005) of Nuveen
Asset Management; Certified Public
Accountant.
o TINA M. LAZAR Senior Vice President (since 2009),
8/27/61 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 2002 197 Investments, LLC (1999-2009); Vice
Chicago, IL 60606 President of Nuveen Asset Management
(since 2005).
o LARRY W. MARTIN Vice President, Assistant Secretary
7/27/51 and Assistant General Counsel of
333 W. Wacker Drive Vice President Nuveen Investments, LLC; Vice
Chicago, IL 60606 and Assistant 1988 197 President (since 2005) and Assistant
Secretary Secretary of Nuveen Investments,
Inc.; Vice President (since 2005) and
Assistant Secretary (since 1997) of
Nuveen Asset Management; Vice
President and Assistant Secretary of
Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment
Management Company, LLC (since 2002),
Symphony Asset Management LLC (since
2003), Tradewinds Global Investors,
LLC, Santa Barbara Asset Management
LLC (since 2006) and of Nuveen
HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since
2007); formerly, Vice President and
Assistant Secretary of Nuveen
Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008),
3/26/66 Vice President formerly, Vice President (2007-2008),
333 W. Wacker Drive and Secretary 2007 197 Nuveen Investments, LLC; Managing
Chicago, IL 60606 Director (since 2008), formerly, Vice
President, and Assistant Secretary,
Nuveen Asset Management, and Nuveen
Investments Holdings, Inc.; Vice
President (since 2007) and Assistant
Secretary, Nuveen Investment Advisers
Inc., Nuveen Investment Institutional
Services Group LLC, NWQ Investment
Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings,
LLC, Symphony Asset Management LLC,
Santa Barbara Asset Management LLC,
Nuveen HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since
2007); prior thereto, Partner, Bell,
Boyd & Lloyd LLP (1997-2007).
Nuveen Investments 79
Board Members & Officers (continued)
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Chief Investment Officer and Managing
4/10/67 Director (since 2007), formerly, Vice
333 W. Wacker Drive Vice President 2007 133 President (2002-2007) of Nuveen Asset
Chicago, IL 60606 Management and Managing Director
(since 2007), formerly Vice President
(2002-2007) Nuveen Investments, LLC;
Chartered Financial Analyst.
o GREGORY MINO Vice President of Nuveen Investments,
1/4/71 LLC (since 2008); previously,
333 W. Wacker Drive Vice President 2009 197 Director (2004-2007) and Executive
Chicago, IL 60606 Director (2007-2008) of UBS Global
Asset Management; previously, Vice
President (2000-2003) and Director
(2003-2004) of Merrill Lynch
Investment Managers; Chartered
Financial Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments,
8/1/71 Vice President LLC (since 2008); Vice President and
333 W. Wacker Drive and Assistant 2008 197 Assistant Secretary, Nuveen Asset
Chicago, IL 60606 Secretary Management (since 2008); prior
thereto, Associate, Skadden, Arps,
Slate Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments,
7/3/62 Vice President LLC (since 2007); prior thereto,
333 W. Wacker Drive and Assistant 2007 197 Partner, Deloitte & Touche USA LLP
Chicago, IL 60606 Secretary (2005-2007), formerly, senior tax
manager (2002-2005); Certified Public
Accountant.
o MARK L. WINGET Vice President, Nuveen Investments,
12/21/68 Vice President LLC (since 2008); Vice President and
333 W. Wacker Drive and Assistant 2008 197 Assistant Secretary, Nuveen Asset
Chicago, IL 60606 Secretary Management (since 2008); prior
thereto, Counsel, Vedder Price P.C.
(1997-2007).
(1) For New York Municipal Value (NNY) and New York Municipal Value 2 (NYV)
Board Members serve three year terms. The Board of Trustees for NNY and
NYV are divided into three classes, Class I, Class II, and Class III, with
each being elected to serve until the third succeeding annual
shareholders' meeting subsequent to its election or thereafter in each
case when its respective successors are duly elected or appointed. For New
York Dividend Advantage (NAN) and New York Dividend Advantage 2 (NXK),
Board Members serve three year terms, except for two board members who are
elected by the holders of Preferred Shares. The Board of Trustees for NAN
and NXK is divided into three classes, Class I, Class II, and Class III,
with each being elected to serve until the third succeeding annual
shareholders' meeting subsequent to its election or thereafter in each
case when its respective successors are duly elected or appointed, except
two board members are elected by the holders of Preferred Shares to serve
until the next annual shareholders' meeting subsequent to its election or
thereafter in each case when its respective successors are duly elected or
appointed. For New York Performance Plus (NNP), the Board Members serve a
one year term to serve until the next annual meeting or until their
successors shall have been duly elected and qualified. The first year
elected or appointed represents the year in which the board member was
first elected or appointed to any fund in the Nuveen Complex
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
80 Nuveen Investments
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds (other than
the Nuveen New York Municipal Value Fund 2 (the "Municipal Value Fund 2")),
including a majority of the Independent Board Members, considered and approved
the continuation of the advisory agreements (each an "Advisory Agreement")
between each Fund (other than the Municipal Value Fund 2) and Nuveen Asset
Management ("NAM") for an additional one-year period. In preparation for their
considerations at the May Meeting, such Boards also held a separate meeting on
April 21-22, 2009 (the "April Meeting"). Accordingly, the factors considered and
determinations made regarding the renewals by the Independent Board Members
include those made at the April Meeting. The Municipal Value Fund 2 is a new
Fund. Accordingly, the initial Advisory Agreement between NAM and the Municipal
Value Fund 2 was approved separately at meetings of the Board of such Fund held
on February 27, 2009 and March 16, 2009.
The discussion of the approvals for the Funds other than the Municipal Value
Fund 2 is set forth below in Section I, followed by the discussion in Section II
of the approval for the Municipal Value Fund 2.
I.
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
With respect to the Funds listed above (for purposes of this Section I, the
"Funds"), in evaluating the applicable Advisory Agreements (for purposes of this
Section I, the "Advisory Agreements"), the Independent Board Members reviewed a
broad range of information relating to the Funds and NAM, including absolute
performance, fee and expense information for the Funds as well as comparative
performance, fee and expense information for a comparable peer group of funds,
the performance
Nuveen Investments 81
Annual Investment Management Agreement Approval Process (continued)
information of recognized and/or customized benchmarks (as applicable) of the
Funds, the profitability of Nuveen for its advisory activities (which includes
its wholly owned subsidiaries other than Winslow Capital Management, Inc.
("Winslow Capital"), which was recently acquired in December 2008), and other
information regarding the organization, personnel, and services provided by
NAM. The Independent Board Members also met quarterly as well as at other times
as the need arose during the year and took into account the information provided
at such meetings and the knowledge gained therefrom. Prior to approving the
renewal of the Advisory Agreements, the Independent Board Members reviewed the
foregoing information with their independent legal counsel and with
management, reviewed materials from independent legal counsel describing
applicable law and their duties in reviewing advisory contracts, and met with
independent legal counsel in private sessions without management present. The
Independent Board Members considered the legal advice provided by independent
legal counsel and relied upon their knowledge of NAM, its services and the Funds
resulting from their meetings and other interactions throughout the year and
their own business judgment in determining the factors to be considered in
evaluating the Advisory Agreements. Each Board Member may have accorded
different weight to the various factors in reaching his or her conclusions with
respect to a Fund's Advisory Agreement. The Independent Board Members did not
identify any single factor as all-important or controlling. The Independent
Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund
complex to identify and address any systematic risks. In addition, the Capital
Markets Committee of NAM provides a multi-departmental venue for developing new
policies to mitigate any risks. The Independent Board Members further recognized
NAM's continuous review of the Nuveen funds' investment strategies and mandates
in seeking to continue to refine and improve the investment process for the
funds, particularly in light of market conditions. With respect to closed-end
funds that issued auction rate preferred shares ("ARPs") or that otherwise
utilize
82 Nuveen Investments
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refinancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage
ratios, and seeking alternative forms of debt and other leverage that may over
time reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial
advisers. In addition to the foregoing, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include maintaining an investor relations
program to provide timely information and education to financial advisers and
investors; providing advertising and marketing for the closed-end funds;
maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance
Nuveen Investments 83
Annual Investment Management Agreement Approval Process (continued)
information including, among other things, total return information compared
with the Fund's Performance Peer Group and recognized and/or customized
benchmarks (as applicable) for the quarter-, one-, three-and five-year periods
(as applicable) ending December 31, 2008 and for the same periods (as
applicable) ending March 31, 2009. The Independent Board Members also reviewed
performance information of the Nuveen municipal funds managed by NAM in the
aggregate ranked by peer group and the performance of such funds, in the
aggregate, relative to their benchmark. This information supplemented the Fund
performance information provided to the Board at each of its quarterly meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile market conditions during the past year, and their impact
on various asset classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "Peer
Universe") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members considered, among other things, the differences
in the use and type of leverage compared to the peers. The Independent
Board Members also considered the differences in the states reflected in
the respective Peer Group. In reviewing the fee schedule for a Fund, the
Independent Board Members also considered the fund-level and complex-wide
breakpoint schedules (described in further detail below) and
84 Nuveen Investments
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities
(which incorporated Nuveen's wholly-owned affiliated sub-advisers other
than Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members
Nuveen Investments 85
Annual Investment Management Agreement Approval Process (continued)
recognized the difficulties in making comparisons as the profitability of
other advisers generally is not publicly available and the profitability
information that is available for certain advisers or management firms may
not be representative of the industry and may be affected by, among other
things, the adviser's particular business mix, capital costs, types of
funds managed and expense allocations. Notwithstanding the foregoing,
the Independent Board Members reviewed Nuveen's methodology and
assumptions for allocating expenses across product lines to determine
profitability. In reviewing profitability, the Independent Board Members
recognized Nuveen's investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Funds, if any. See Section
E below for additional information on indirect benefits NAM may receive
as a result of its relationship with the Funds. Based on their review of
the overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share
offerings, the growth of their assets will occur primarily through the
appreciation of such funds' investment portfolio. While economies of scale
result when costs can be spread over a larger asset base, the Independent Board
Members also recognized that the asset levels generally declined in 2008 due to,
among other things, the market downturn. Accordingly, for funds with a reduction
in assets under management, advisory fee levels may have increased as
breakpoints in the fee schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the
86 Nuveen Investments
benefits of economies of scale to fund shareholders when total fund complex
assets increase, even if assets of a particular fund are unchanged or have
decreased. The approach reflects the notion that some of Nuveen's costs are
attributable to services provided to all its funds in the complex and therefore
all funds benefit if these costs are spread over a larger asset base. Generally,
the complex-wide pricing reduces Nuveen's revenue because total complex fund
assets have consistently grown in prior years. As noted, however, total fund
assets declined in 2008 resulting in a smaller downward adjustment of revenues
due to complex-wide pricing compared to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 87
Annual Investment Management Agreement Approval Process (continued)
II
NUVEEN NEW YORK MUNICIPAL VALUE FUND 2
The Board is responsible for approving the advisory arrangement of the Municipal
Value Fund 2 (for purposes of this Section II, the "Fund") and, at meetings held
on February 27, 2009 and March 16, 2009 (collectively, for purposes of this
Section II, the "Meeting"), the Board Members, including the Independent Board
Members, considered and approved the investment advisory agreement (for purposes
of this Section II, the "Advisory Agreement") between the Fund and NAM.
To assist the Board in its evaluation of the Advisory Agreement at the Meeting,
the Independent Board Members had received, in adequate time in advance of the
Meeting or at prior meetings, materials which outlined, among other things:
o the nature, extent and quality of services expected to be provided by NAM;
o the organization of NAM, including the responsibilities of various
departments and key personnel;
o the expertise and background of NAM with respect to the Fund's investment
strategy;
o the performance records of NAM and of certain similar Nuveen funds (as
described below);
o the profitability of Nuveen Investments, Inc. ("Nuveen") (which
incorporated Nuveen's wholly-owned affiliated sub-advisers);
o the proposed management fees of NAM, including comparisons of such fees
with the management fees of comparable, unaffiliated funds, as well as
comparable, affiliated funds;
o the advisory fees NAM assesses to other types of investment products or
clients;
o the expected expenses of the Fund, including comparisons of the Fund's
expected expense ratio with the expense ratios of comparable, unaffiliated
funds, as well as comparable, affiliated funds; and
o the soft dollar practices of NAM, if any.
At the Meeting, NAM made a presentation to and responded to questions from the
Board. During the Meeting, the Independent Board Members also met privately with
their legal counsel to review the Board's duties under the 1940 Act, the general
principles of state law in reviewing and approving advisory contracts, the
standards used by courts in determining whether investment company boards of
directors have fulfilled their duties, factors to be considered in voting on
advisory contracts and an adviser's fiduciary duty with respect to advisory
agreements and compensation. It is with this background that the Independent
Board Members considered the advisory agreement with NAM for the Fund. As
outlined in more detail below, the Independent Board Members considered all
factors they believed relevant with respect to the Fund, including the
following: (a) the nature, extent and quality of the services to be provided by
NAM; (b) investment performance, as described below; (c) the profitability of
Nuveen and its affiliates; (d) the extent to which economies of scale would be
realized; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
88 Nuveen Investments
A. NATURE, EXTENT AND QUALITY OF SERVICES
The Independent Board Members considered the nature, extent and quality of NAM's
services, including advisory services and administrative services. As NAM
already serves as adviser to other Nuveen funds overseen by the Board Members,
the Board has a good understanding of NAM's organization, operations and
personnel. As the Independent Board Members meet regularly throughout the year
to oversee the Nuveen funds, including funds currently advised by NAM, the
Independent Board Members have relied upon their knowledge from their meetings
and any other interactions throughout the year of NAM and its services in
evaluating the Advisory Agreement.
At the Meeting and at prior meetings, the Independent Board Members reviewed
materials outlining, among other things, Nuveen's organization and business;
the types of services that NAM or its affiliates provide to the Nuveen funds and
are expected to provide to the Fund; and NAM's experience with applicable
investment strategies. The Independent Board Members further evaluated the
professional experience, qualifications and credentials of NAM's investment
personnel.
In addition to advisory services, the Independent Board Members considered the
quality of any administrative or non-advisory services to be provided. In this
regard, NAM is expected to provide the Fund with such administrative and other
services (exclusive of, and in addition to, any such services provided by others
for the Fund) and officers and other personnel as are necessary for the
operations of the Fund. In addition to investment management services, NAM and
its affiliates will provide the Fund with a wide range of services, including,
among other things, product management, fund administration, oversight of
service providers, shareholder services, administration of Board relations,
regulatory and portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members have recognized Nuveen's
continued commitment to supporting the secondary market for the common shares of
its closed-end funds through a variety of programs designed to raise investor
and analyst awareness and understanding of closed-end funds. These efforts
include maintaining an investor relations program to timely provide
information and education to financial advisers and investors; providing
advertising and marketing for the closed-end funds; maintaining its closed-end
fund website; and providing educational seminars.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services expected to be provided to the Fund under
the Advisory Agreement were satisfactory.
B. INVESTMENT PERFORMANCE
The Fund is new and therefore does not have its own performance history.
However, the Independent Board Members are familiar with NAM's performance
record on other Nuveen funds, and the Fund is expected to employ a substantially
similar investment philosophy and strategies that have guided two other Nuveen
state municipal closed-
Nuveen Investments 89
Annual Investment Management Agreement Approval Process (continued)
end funds (specifically, the Nuveen New York Municipal Value Fund, Inc. (NNY)
and the Nuveen California Municipal Value Fund, Inc. (NCA)). Accordingly, the
Board Members were provided with certain performance information for these
comparable funds, including calendar year total returns for the years 2000
through 2008.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that the Fund was expected
to bear, the Independent Board Members considered, among other things, the
Fund's proposed management fee structure and its expected expense ratios
in absolute terms as well as compared with the fees and expense ratios of
comparable, unaffiliated funds and comparable, affiliated funds. In this
regard, the Independent Board Members noted the limited universe of
municipal funds with an unleveraged capital structure, and the even more
limited universe of state municipal funds with an unleveraged capital
structure (i.e., none other than for the states of California and New
York), which made it difficult to make peer group comparisons.
In addition, the Fund was not expected to issue preferred shares or debt
instruments; however, the Board Members noted that the Fund may make
investments in inverse floating rate securities (including inverse
floating rate securities representing interests in so-called "tender
option bond trusts" formed by third-party sponsors for the purpose of
holding municipal bonds). The Independent Board Members recognized that
assets financed through the creation of tender option bond trusts in which
the Fund may invest or other financial leverage used would be included in
the amount of assets upon which the advisory fee is calculated. In this
regard, the Independent Board Members noted that the advisory fee is based
on a percentage of average daily "Managed Assets." "Managed Assets"
generally means the total assets of the Fund (including assets
attributable to the Fund's use of financial leverage such as, but not
limited to, proceeds from tender option bond trusts) minus the sum of
accrued liabilities (other than Fund liabilities incurred for the express
purpose of creating financial leverage). Accordingly, the advisory fees
paid to NAM for investment advisory services will be higher if the Fund
uses financial leverage, which may create a conflict of interest between
NAM and the Fund's shareholders. This methodology is consistent with
that used on Nuveen taxable leveraged funds and a Nuveen national
municipal closed-end fund with a similar capital structure. The
Independent Board Members also considered the fund-level breakpoint
schedule and the complex-wide breakpoint schedule (described in further
detail below) and any applicable expense reimbursements to be provided.
Based on their review of the fee and expense information provided, the
Independent Board Members determined that the Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services to be provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
Due to their experience with other Nuveen funds, the Board Members were
familiar with the fees NAM assesses to other clients of Nuveen or its
affiliates, including NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members have
noted, at the Meeting or at prior
90 Nuveen Investments
meetings, that the fee rates charged to a fund (such as the Fund) and
charged to other clients vary, among other things, because of the
different services involved and the additional regulatory and compliance
requirements associated with registered investment companies, such as the
Fund. Accordingly, the Independent Board Members have considered the
differences in the product types, including, but not limited to, the
services to be provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Independent Board
Members have noted, in particular, that the range of services as described
above to be provided to a fund (such as the Fund) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services to be
provided to a fund, the Independent Board Members believe such facts
justify the different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees at prior meetings, the Independent
Board Members have considered the profitability of Nuveen for its advisory
activities (which incorporated Nuveen's wholly-owned affiliated
sub-advisers) and its financial condition. At the Meeting or prior
meetings, the Independent Board Members reviewed the revenues and expenses
of Nuveen's advisory activities and the allocation methodology used in
preparing the profitability data.
The Independent Board Members have also considered, at the Meeting or at
prior meetings, Nuveen's profitability compared with other fund sponsors
prepared by two independent third party service providers as well as
comparisons of the revenues, expenses and profit margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen.
In reviewing profitability, the Independent Board Members have recognized
the subjective nature of determining profitability, which may be affected
by numerous factors, including the allocation of expenses. Further, the
Independent Board Members have recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business. The Independent Board Members further
received the Form 8-K of Nuveen for the quarter ending September 30, 2008.
Based on its review, the Independent Board Members concluded that Nuveen's
level of profitability for its advisory activities was reasonable in light
of the services to be provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered any other amounts expected to be paid to NAM
as well as any indirect benefits (such as soft dollar arrangements, if
any) NAM and its affiliates are expected to receive that are directly
attributable to their management of the Fund, if any. See Section E below
for additional information on indirect benefits NAM may
Nuveen Investments 91
Annual Investment Management Agreement Approval Process (continued)
receive as a result of its relationship with the Fund. Based on their
review of the overall fee arrangements of the Fund, the Independent Board
Members determined that the advisory fees and expected expenses of the
Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of the Fund being spread over a
larger asset base. The Independent Board Members therefore considered whether
the Fund could be expected to benefit from any economies of scale. In
considering economies of scale, the Independent Board Members have recognized
that economies of scale are difficult to measure and predict with precision.
Notwithstanding the foregoing, one method to help ensure that shareholders share
in these benefits is to include breakpoints in the advisory fee schedule.
Accordingly, the Independent Board Members received and reviewed the schedule of
proposed advisory fees for the Fund, including the fund-level breakpoints
thereto. In this regard, given that the Fund is a closed-end fund, the
Independent Board Members recognized that although the Fund may from time to
time make additional share offerings, the growth in its assets will occur
primarily through appreciation of its investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Fund's complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex, including the Fund,
are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent Board Members have
considered that the complex-wide fee arrangement seeks to provide the benefits
of economies of scale to fund shareholders when total fund complex assets
increase, even if assets of a particular fund are unchanged or have decreased.
The approach reflects the notion that some of Nuveen's costs are attributable to
services provided to all its funds in the complex and therefore all funds
benefit if these costs are spread over a larger asset base. Based on their
review, the Independent Board Members concluded that the breakpoint schedule and
complex-wide fee arrangement were acceptable and desirable in providing benefits
from economies of scale to shareholders of the Fund.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members also considered information
regarding potential "fall out" or ancillary benefits NAM or its affiliates may
receive as a result of its relationship with the Fund. In this regard, the
Independent Board Members considered the revenues received by affiliates of
NAM for serving as agent at Nuveen's preferred trading desk and for serving as a
co-manager in the initial public offering of new closed-end exchange traded
funds.
In addition to the above, the Independent Board Members considered whether NAM
will receive any benefits from soft dollar arrangements whereby a portion of the
commissions paid by the Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Fund and other clients. The
Independent Board
92 Nuveen Investments
Members noted that NAM does not currently have any soft dollar arrangements;
however, to the extent certain bona fide agency transactions that occur on
markets that traditionally trade on a principal basis and riskless principal
transactions are considered as generating "commissions," NAM intends to comply
with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Fund were
reasonable and within acceptable parameters.
F. APPROVAL
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including a
majority of the Independent Board Members, concluded that the terms of the
Advisory Agreement were fair and reasonable, that NAM's fees are reasonable in
light of the services to be provided to the Fund and that the Advisory Agreement
should be and was approved on behalf of the Fund.
Nuveen Investments 93
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
94 Nuveen Investments
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.
Nuveen Investments 95
Glossary of Terms
Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed," with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including
change in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate
(sometimes referred to as an "inverse floater") to an investor (such as a
Fund) interested in gaining investment exposure to a long-term municipal
bond. The income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate certificates'
holders, and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typi-
96 Nuveen Investments
cally also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially
represents an investment in the underlying bond on a leveraged basis.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 97
Notes
98 Nuveen Investments
Notes
Nuveen Investments 99
Notes
100 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NNY -- N/A
NYV -- N/A
NNP 27,800 --
NAN -- --
NXK 7,200 --
N/A - Fund is unleveraged.
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 101
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive It's not what you earn,
Chicago, IL 60606 it's what you keep.(R)
www.nuveen.com
EAN-A-0909D
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/CEF/Info/Shareholder.
(To view the code, 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 ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen 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, 2009 $ 13,112 $ 0 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
September 30, 2008 $ 13,472 $ 0 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
September 30, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
September 30, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval 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, 2009 $ 850 $ 0 $ 0 $ 850
September 30, 2008 $ 850 $ 0 $ 0 $ 850
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund 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 has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
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 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 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 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 P. 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:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 44 $8.095 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of September 30, 2009. 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 September 30, 2009, the S&P/Investortools Municipal Bond index
was comprised of 54,220 securities with an aggregate current market value of
$1,130 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments by a group of investors led by Madison Dearborn Partners, LLC in
November 2007, certain employees, including portfolio managers, received profit
interests in the parent company of Nuveen Investments. These profit interests
entitle the holders to participate in the appreciation in the value of Nuveen
Investments beyond the issue date and vest over five to seven years, or earlier
in the case of a liquidity event. In addition, in July 2009, Nuveen Investments
created and funded a trust, as part of a newly-established incentive program,
which purchased shares of certain Nuveen Mutual Funds and awarded such shares,
subject to vesting, to certain employees, including portfolio managers.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of September 30, 2009, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
----------------------------------------------------------------------------------------------------------------------
Cathryn Steeves Nuveen New York Dividend Advantage Municipal Fund $0 $10,000-$50,000
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD is currently a portfolio manager for 45 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Ms. Steeves 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 registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, 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
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
Vice President and Secretary
Date: December 7, 2009
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 7, 2009
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 7, 2009
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