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 811-5238
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Nuveen New York Municipal Value Fund, Inc.
--------------------------------------------------------------------------------
(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, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
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burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT
September 30, 2008
Nuveen Investments
MUNICIPAL CLOSED-END FUNDS
Photo of: small child.
NUVEEN NEW YORK
MUNICIPAL VALUE
FUND, INC.
NNY
NUVEEN NEW YORK
PERFORMANCE PLUS
MUNICIPAL FUND, INC.
NNP
NUVEEN NEW YORK
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NAN
NUVEEN NEW YORK
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NXK
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
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Chairman's
LETTER TO SHAREHOLDERS
Photo of: Robert P. Bremner
Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I'd like to use my initial letter to you to accomplish several things. I want to
report that after fourteen years of service on your Fund's Board, including the
last twelve as chairman, Tim Schwertfeger retired from the Board in June. We
will miss his wise counsel. The Board has elected me to replace him as the
chairman, the first time this role has been filled by someone who is not an
employee of Nuveen Investments. Electing an independent chairman marks a
significant milestone in the management of your Fund, and it aligns us with what
is now considered a "best practice" in the fund industry. Further, it
demonstrates the independence with which your Board has always acted on your
behalf.
First and most important, on behalf of the entire Board, I would like you to
know that we are closely monitoring the unprecedented market developments and
their distressing impact on the Funds. We believe that these Funds continue to
be actively and constructively managed for the long term and at the same time we
are very aware that these are trying times for our investors. We appreciate the
patience you have shown with the Board and with Nuveen Investments as they
manage your investment through this extremely difficult period.
Second, I also want to report that we are very fortunate to be welcoming two new
Board members to our team. John Amboian, the current chairman and CEO of Nuveen
Investments, has agreed to replace Tim as Nuveen's representative on the Board.
John's presence will allow the independent Board members to benefit not only
from his leadership role at Nuveen but also his broad understanding of the fund
industry and Nuveen's role within it. We also are adding Terry Toth as an
independent director. A former CEO of the Northern Trust Company's asset
management group, Terry will bring extensive experience in the fund industry to
our deliberations.
Finally, I urge you to take the time to review the Portfolio Manager's Comments,
the Common Share Dividend and Share Price Information and the Performance
Overview sections of this report. All of us are grateful that you have chosen
Nuveen Investments as a partner as you pursue your financial goals, and, on
behalf of myself and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
November 21, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NNY, NNP, NAN, NXK
Portfolio manager Cathryn Steeves reviews economic and municipal market
conditions at both the national and state levels, key investment strategies, and
the twelve-month performance of these Nuveen New York Funds. Cathryn, who joined
Nuveen in 1996, assumed portfolio management responsibility for these four Funds
in 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED SEPTEMBER 30, 2008?
During this period, events in the financial and credit markets led to increased
price volatility for most securities, reduced liquidity, and a general flight to
quality. In September 2007, the Federal Reserve (Fed) responded to credit market
volatility by launching a series of interest rate cuts that lowered the fed
funds rate by 325 basis points--from 5.25% to 2.00%--over the next seven months.
(On October 8, 2008, and October 29, 2008, following the end of this reporting
period, the Fed announced two additional cuts of 50 basis points each, bringing
the fed funds rate to 1.00%, its lowest level since June 2003.)
The Fed's rate-cutting actions also were a response to signs of slower U.S.
economic growth, as measured by the U.S. gross domestic product (GDP), a closely
watched gauge of economic performance. After declining at a annual rate of 0.2%
in the fourth quarter of 2007, GDP improved slightly to 0.9% in the first
quarter of 2008 and posted growth of 2.8% in the second quarter of 2008 (all GDP
numbers annualized). During the third quarter of 2008, however, GDP contracted
at an annual rate of 0.3%, the biggest decrease since 2001, mainly as the result
of the first decline in consumer spending since 1991 and a 19% drop in
residential investment. Driven largely by increased energy and transportation
prices, the Consumer Price Index (CPI) registered a 4.9% year-over-year gain as
of September 2008. The core CPI (which excludes food and energy) rose 2.5%
between October 2007 and September 2008, well above the Fed's unofficial target
of 2.0% or lower. In the labor markets, September 2008 marked the ninth
consecutive month of job losses. The national unemployment rate for September
2008 was 6.1%, its highest level in five years, up from 4.7% in September 2007.
In the municipal bond market, general concerns about the credit markets as well
as more specific concerns about municipal bond insurers with exposure to
sub-prime mortgages had a significant effect on performance. Some investors
curtailed
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
purchases, while hedge funds and other non-traditional buyers of municipal bonds
were forced to sell holdings of longer-maturity bonds into a market already
experiencing a lack of liquidity. Combined with the Fed rate cuts, this selling
produced a sharp steepening of the municipal yield curve, as longer-term
interest rates rose and short-term interest rates declined. In this environment,
bonds with shorter maturities generally outperformed longer maturity bonds, and
higher quality bonds tended to outperform lower quality credits.
In May 2008, the U.S. Supreme Court ruled that individual states could continue
to exempt from taxation the income their residents earn on in-state municipal
bonds while taxing the income earned on municipal bonds issued in other states.
While this news was generally positive for municipal bonds, any favorable impact
was more than offset by the increasingly ominous economic situation.
Over the twelve months ended September 2008, municipal bond issuance nationwide
totaled $457.4 billion, a decrease of 2% from the previous twelve months. The
decline during the month of September 2008 was more dramatic with new issuance
down more then 20% from that of September 2007. Despite disruptions in the
markets, institutional investors, retail investors and non-traditional buyers of
municipal bonds continued to provide support for new municipal issuance during
this period.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW YORK DURING THIS PERIOD?
After ranking as the second fastest growing state economy in 2007, New York's
economy cooled rapidly in 2008, due largely to the state's substantial exposure
to the continued turmoil in the financial sector. Weak performance by major
financial firms, bankruptcies and mergers, and the projected loss of at least
65,000 jobs in New York City's financial district through early 2010 all had
large implications for state finances, as Wall Street firms typically account
for about 20% of the state's tax revenues. Upstate, broad-based economic
declines in Albany, Buffalo, Rochester and Syracuse also weighed on the state's
economic health. Most of the jobs lost in New York since the beginning of 2008
have been in the finance, manufacturing and construction sectors, and gains in
education, health services and leisure and hospitality employment failed to
offset this decline. As of September 2008, the unemployment rate in New York was
5.8%, up from 4.5% in September 2007, the highest level since June 2004. The
housing market slump has also added to the state's economic slowdown. Home
foreclosures and mortgage delinquency rates continued to rise, although the
decline has not been as precipitous in New York as nationally. In New York City,
for example, housing prices fell 6.9% between September 2007 and August 2008,
compared with an average decrease of 16.6% nationwide, according to the Standard
& Poor's/Case-Shiller home price index of twenty major metropolitan areas. This
placed New York fifteenth among the index's twenty cities in loss of home value.
5
As of September 30, 2008, Moody's, Standard &Poor's (S&P), and Fitch rated New
York general obligation debt at Aa3/AA/AA-, respectively. Both Moody's and S&P,
which confirmed their ratings in September 2008, maintained stable outlooks for
the state. For the twelve months ended September 30, 2008, municipal issuance in
New York totaled $45.0 billion, up almost 30% from the previous twelve months.
This lifted New York to a position as the second largest state issuer, behind
California. Among the larger issues that came to market during this period were
$1.1 billion in bonds issued by the Triborough Bridge and Tunnel Authority in
July 2008 and $950 million in New York City credits in September 2008. In
general, the New York municipal market held up well over this period, due mainly
to the large retail demand for municipal bonds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NEW YORK FUNDS DURING THIS
REPORTING PERIOD?
During this twelve-month period, as the municipal bond market was characterized
by volatility and a steepening yield curve, we sought to capitalize on the
turbulent environment by continuing to focus on finding relative value by using
a fundamental approach to find sectors and individual credits with the potential
to perform well over the long term.
As events unfolded, we found attractive opportunities in various sectors. Early
in the period, we added to the Funds' positions in health care and industrial
development revenue bonds. When the auctions for preferred securities began to
fail in February 2008 and liquidity became an issue in the marketplace, we
focused on bonds that would maintain and enhance the Funds' liquidity. This
included higher quality securities that we believed would be easier to sell if
the need arose.
To provide liquidity for purchases, we sold holdings with shorter durations and
took advantage of strong bids to sell bonds that were attractive to the retail
market. In addition, some of our new purchases were funded with proceeds from
bond calls.
As a key dimension of risk management, we employed a disciplined approach to
duration(1) positioning as an important component of our management strategies.
As part of this approach, we used inverse floating rate securities(2), a type of
derivative financial instrument, in all four of these Funds. Inverse floaters
typically provide the dual benefit of bringing the Funds' durations closer to
our strategic target and enhancing their income-generation capabilities. All of
the Funds also invested in other types of derivatives to lengthen the Funds'
durations and help us manage their common share net asset value (NAV) volatility
without having a negative impact on their income streams or common share
dividends over the short term.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
(2) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during the reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in this Report sections of this shareholder report.
6
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New York Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
Annualized Total Returns on Common Share Net Asset Value
For periods ended 9/30/08
1-Year 5-Year 10-Year
NNY(3) -2.38% 2.95% 3.71%
NNP -6.71% 2.66% 4.87%
NAN -7.45% 2.57% N/A
NXK -6.63% 2.94% N/A
Lipper NY
Municipal Debt Funds
Average(4) -10.26% 2.38% 3.84%
Lehman Brothers
NY Tax-Exempt
Bond Index(5) -1.11% 2.90% 4.30%
S&P NY Municipal
Bond Index(6) -2.10% 5.15% N/A
For the twelve months ended September 30, 2008, the total returns on common
share NAV for all four New York Funds in this report exceeded the average return
for the Lipper New York Municipal Debt Funds Average while all four Funds
underperformed the returns for the Lehman Brothers New York Tax-Exempt Bond
Index and the S&P New York Municipal Bond Index.
Key management factors that influenced the Funds' returns included yield curve
and duration positioning, the use of derivatives, credit exposure and sector
allocations.
Over the period, bonds with maturities of less than five years, especially those
maturing in two to four years, benefited the most, while bonds having the
longest maturities (twenty-two years and longer) posted the worst returns. Among
these Funds, NNY had the best duration positioning, that is, this Fund was more
heavily weighted in the areas of the yield curve that performed well during the
period. This was due, in part, to the fact that NNY is unleveraged, since
leverage has the tendency to lengthen a Fund's duration.
As mentioned earlier, all four of these Funds used derivative positions during
this period to synthetically extend duration and move them closer to our
strategic target. Despite the fact that longer duration municipal bonds
generally underperformed those with shorter durations, the use of these
derivatives had a positive overall
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.
(3) NNY is an unleveraged Fund; the remaining three Funds in this report are
leveraged.
(4) 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 years, 17 funds; and 10 years, 6 funds. Fund
and Lipper returns assume reinvestment of dividends.
(5) The Lehman Brothers New York Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade New York
municipal bonds. Results for the Lehman index do not reflect any expenses.
(6) The 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.
7
impact on the total return performance of these Funds. This positive impact was
attributable to the fact that the derivative positions provided exposure to
taxable markets during a period when taxable securities generally performed well
when compared with their taxable non-counterparts.
On the other hand, the inverse floaters used by these Funds generally had a
negative impact on performance. This resulted from the fact that the inverse
floaters effectively increased the Funds' exposure to longer maturity bonds at a
time when shorter maturities were in favor in the market.
While duration played a significant role in performance during this period,
credit exposure was also an important factor. Because risk-averse investors
generally sought higher quality investments as disruptions in the financial and
housing markets deepened, bonds with higher credit quality ratings typically
performed very well. At the same time, as many investors avoided high-yield
paper, bonds rated BBB or below and non-rated bonds generally posted poor
returns.
Sectors of the market that generally contributed to the Funds' performance
included general obligation bonds, resource recovery, and water and sewer.
Pre-refunded bonds(7), which are often backed by U.S. Treasury bonds, were one
of the top performing segments of the market, due primarily to their shorter
effective maturities, higher credit quality, and perceived safety. Holdings of
pre-refunded bonds ranged from 4% to 11% among the portfolios of these four
Funds.
In general, bonds that carried any credit risk, regardless of sector, continued
to post weak performance. Revenue bonds as a whole, and the industrial
development sector in particular, underperformed the general municipal market,
while zero coupon bonds were among the worst performing categories. The health
care (including continuing care retirement communities) and housing sectors also
performed poorly, as did lower-rated bonds backed by the 1998 master tobacco
settlement agreement.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One of the primary factors impacting the annual returns of NNP, NAN and NXK
relative to those of the unleveraged Lehman Brothers New York Tax-Exempt Bond
Index and S&P New York Municipal Bond Index was the Funds' use of financial
leverage. (NNY is unleveraged.) While leverage offers opportunities to generate
additional income and total returns for common shareholders, the benefits
provided by leveraging are influenced by the price movements of the bonds in
each Fund's portfolio. During this period, as yields on longer-term bonds rose
and their prices correspondingly fell, declining valuations had a negative
effect on performance that was magnified by the use of leverage. In addition, at
various points during the twelve-month period, the Funds' borrowing costs were
relatively high, negatively impacting
(7) Pre-refundings, also known as advanced refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
8
their total returns. In the turbulent market environment of the past twelve
months, the impact of any valuation change in the Funds' holdings--whether
positive or negative--was magnified by the use of leverage.
RECENT DEVELOPMENTS IN THE CURRENT MARKET ENVIRONMENT
As this reporting period drew to a close, the nation's financial institutions
and financial markets--including the municipal bond market--experienced
significant turmoil. Reductions in demand decreased valuations of municipal
bonds across all credit ratings, especially those with lower credit ratings, and
this generally reduced the Funds' net asset values. The municipal market is one
in which dealer firms make markets in bonds on a principal basis using their
proprietary capital, and during the recent market turmoil these firms' capital
was severely constrained. As a result, some firms were unwilling to commit their
capital to purchase and to serve as a dealer for municipal bonds. This reduction
in dealer involvement in the market was accompanied by significant net selling
pressure by investors, particularly with respect to lower-rated municipal bonds,
as institutional investors generally removed money from the municipal bond
market, at least in part because of their need to reduce the leveraging of their
municipal investments. This de-leveraging was in part driven by the overall
reduction in the amount of financing available for such leverage, the increased
costs of such leverage financing, and the need to reduce leverage levels that
had recently increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further de-leveraging and a supply overhang as a large amount of new issues
were postponed in recent weeks would cause selling pressure to persist for a
period of time. In addition to falling prices, these market conditions resulted
in greater price volatility of municipal bonds; wider credit spreads (i.e.,
lower quality bonds fell in price more than higher quality bonds); significantly
reduced liquidity (i.e., the ability to sell bonds at a price close to their
carrying value), particularly for lower quality bonds; and a lack of price
transparency (i.e., the ability to accurately determine the price at which a
bond would likely trade). Reduced liquidity was most pronounced in mid-October
(after the end of the reporting period for this shareholder report), and
although liquidity improved considerably over ensuing weeks, it may reoccur if
financial turmoil persists or worsens.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, ACA, AMBAC,
CIFG, FGIC, MBIA, RAAI and SYNCORA (formerly XLCA) experienced one or more
rating reductions by at least one or more rating agencies. Subsequent to the
reporting period, AMBAC, MBIA and SYNCORA experienced further rating reductions
by at
9
least one rating agency. At the time this report was prepared, at least one
rating agency has placed each of these insurers on "negative outlook" or
"negative credit watch," which may presage one or more rating reductions for
such insurer or insurers in the future. As concern increased about the balance
sheets of these insurers, prices on bonds insured by these companies -
especially those bonds with weaker underlying credits - declined, detracting
from the Funds' performance. However, on the whole, the holdings of all of our
Funds continued to be well diversified not only between insured and uninsured
bonds, but also within the insured bond category. It is important to note that
municipal bonds historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the auction rate preferred shares issued by these Funds
than there were offers to buy. This meant that these auctions "failed to clear"
and that many or all auction rate preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. This decline in liquidity
in auction rate preferred shares did not lower the credit quality of these
shares, and auction rate preferred shareholders unable to sell their shares
received distributions at the "maximum rate" applicable to failed auctions as
calculated in accordance with the pre-established terms of the auction rate
preferred shares.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which auctions have been failing for several months. This plan included an
initial phase of approximately $1 billion in forty-one Funds. During the
twelve-month reporting period, NNP, NAN and NXK redeemed $36,650,000,
$17,600,000 and $12,900,000 of their outstanding auction rate preferred shares,
respectively, at liquidation value, using the proceeds from the issuance of
TOBs.
On August 7, 2008, four municipal Funds (none of which are included in this
shareholder report) issued par redemption notices for all outstanding shares of
their auction rate preferred shares totaling $569.9 million. These redemptions
were achieved through the issuance of variable rate demand preferred shares
(VRDP) in conjunction with the proceeds from the creation of TOBs.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
10
Common Share
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report except NNY use leverage to
potentially enhance opportunities for additional income for common shareholders.
While this strategy continued to provide incremental income, the extent of this
benefit was reduced to some degree by the borrowing costs associated with
leverage, which were relatively high at some points during the period. Some of
the Funds' income streams also were impacted as the proceeds from older,
higher-yielding bonds that matured or were called were reinvested into bonds
currently available in the market, which generally offered lower yields than the
maturing or called bonds. During the twelve-month period ended September 30,
2008, these factors resulted in one monthly dividend reduction in NNP and NAN
during June 2008 and March 2008, respectively. Subsequently, the dividends of
NAN as well as NXK were increased, effective September 2008. The dividend of NNY
remained stable throughout this reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and net ordinary income
distributions at the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NNY $0.0108 --
NNP $0.0294 $0.0009
NAN $0.0682 --
NXK $0.0402 --
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
11
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, 2008, NNY had positive UNII balances for both
tax and financial statement purposes, while NNP, NAN and NXK had positive UNII
balances for tax purposes and negative UNII balances for financial statement
purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
On July 30, 2008, the Board of Directors/Trustees for each of Nuveen's 120
closed-end Funds approved a program under which each Fund may repurchase up to
10% of its common shares. No common shares were cumulatively repurchased by
these New York Funds during the twelve-month reporting period ended September
30, 2008.
As of September 30, 2008, the Funds' common share prices were trading at
discounts to their common share NAVs as shown in the accompanying chart:
9/30/08 Twelve-Month Average
Discount Discount
NNY -2.91% -4.78%
NNP -18.78% -8.30%
NAN -13.41% -8.52%
NXK -15.14% -9.22%
12
NNY
Performance
OVERVIEW
Nuveen New York Municipal Value Fund, Inc.
as of September 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 31%
AA 46%
A 8%
BBB 8%
BB or Lower 3%
N/R 4%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Oct 0.0355
Nov 0.0355
Dec 0.0355
Jan 0.0355
Feb 0.0355
Mar 0.0355
Apr 0.0355
May 0.0355
Jun 0.0355
Jul 0.0355
Aug 0.0355
Sep 0.0355
Line Chart:
Common Share Price Performance -- Weekly Closing Price
10/01/07 9.45
9.3
9.383
9.2
9.13
9.17
9.17
9.08
9
8.97
9.16
9.01
9.06
9.13
9.31
9.42
9.18
9.38
9.54
9.43
9.32
9.49
9.32
9.38
9.25
9.42
9.41
9.52
9.5
9.39
9.5
9.42
9.58
9.43
9.47
9.5
9.5
9.44
9.49
9.47
9.498
9.34
9.3
9.46
9.53
9.517
9.41
9.4
9.48
9.61
9.4401
9.15
9.18
9/30/08 9.014
FUND SNAPSHOT
------------------------------------
Common Share Price $9.01
------------------------------------
Common Share
Net Asset Value $9.28
------------------------------------
Premium/(Discount) to NAV -2.91%
------------------------------------
Market Yield 4.73%
------------------------------------
Taxable-Equivalent Yield(2) 7.05%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $140,285
------------------------------------
Average Effective
Maturity on Securities (Years) 15.50
------------------------------------
Modified Duration 7.35
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.62% -2.38%
------------------------------------
5-Year 4.44% 2.95%
------------------------------------
10-Year 3.98% 3.71%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 25.6%
------------------------------------
Health Care 12.0%
------------------------------------
Long-Term Care 9.2%
------------------------------------
Education and Civic
Organizations 8.4%
------------------------------------
Transportation 8.2%
------------------------------------
Tax Obligation/General 7.9%
------------------------------------
U.S. Guaranteed 7.4%
------------------------------------
Utilities 6.6%
------------------------------------
Other 14.7%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORAas
of September 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a 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.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0108 per share.
13
NNP
Performance
OVERVIEW
Nuveen New York Performance Plus Municipal Fund, Inc.
as of September 30, 2008
Pie Chart:
Credit Quality (as a % of total investments(1)
AAA/U.S. Guaranteed 34%
AA 42%
A 6%
BBB 13%
BB or Lower 2%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Oct 0.061
Nov 0.061
Dec 0.061
Jan 0.061
Feb 0.061
Mar 0.061
Apr 0.061
May 0.061
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.058
Line Chart:
Common Share Price Performance -- Weekly Closing Price
10/01/07 14.25
14.27
14.21
14.37
14.05
14.1
13.91
13.71
13.9
14.05
14.2
13.75
13.87
13.98
14.71
14.73
14.26
14.38
14.24
14.5
13.96
13.91
13.48
13.94
13.61
13.59
13.94
14.18
14.25
14.29
14.44
14.52
14.55
14.51
14.5201
14.54
14.42
14
13.63
13.43
13.63
13.65
13.4724
13.45
13.4899
13.39
13.32
13.37
13.47
13.7
13.24
12.37
11.69
9/30/08 11.16
FUND SNAPSHOT
------------------------------------
Common Share Price $11.16
------------------------------------
Common Share
Net Asset Value $13.74
------------------------------------
Premium/(Discount) to NAV -18.78%
------------------------------------
Market Yield 6.24%
------------------------------------
Taxable-Equivalent Yield(2) 9.30%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $206,976
------------------------------------
Average Effective
Maturity on Securities (Years) 15.66
------------------------------------
Leverage-Adjusted Duration 13.21
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -17.61% -6.71%
------------------------------------
5-Year -0.25% 2.66%
------------------------------------
10-Year 1.95% 4.87%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 23.1%
------------------------------------
Education and Civic
Organizations 13.5%
------------------------------------
Health Care 12.7%
------------------------------------
U.S. Guaranteed 11.9%
------------------------------------
Tax Obligation/General 7.9%
------------------------------------
Transportation 6.7%
------------------------------------
Utilities 5.5%
------------------------------------
Long-Term Care 4.9%
------------------------------------
Other 13.8%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA as
of September 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a 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.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0303 per share.
14
NAN
Performance
OVERVIEW
Nuveen New York Dividend Advantage Municipal Fund
as of September 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 19%
AA 47%
A 15%
BBB 11%
BB or Lower 5%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Oct 0.0595
Nov 0.0595
Dec 0.0595
Jan 0.0595
Feb 0.0595
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.059
Line Chart:
Common Share Price Performance -- Weekly Closing Price
10/01/07 14.38
14.144
14.1
13.98
13.77
14.01
13.75
13.22
13.17
13.45
13.61
13.25
13.17
13.35
14.08
14.118
13.85
14
14.04
14.19
13.4
13.39
13.13
13.45
13
13.13
13.3
13.45
13.49
13.42
13.47
13.45
13.53
13.54
13.38
13.52
13.55
13.26
13.07
12.93
13.05
13.08
12.86
12.78
12.75
12.92
12.82
12.89
12.88
12.92
12.81
12.19
11.5001
9/30/08 11.36
FUND SNAPSHOT
------------------------------------
Common Share Price $11.36
------------------------------------
Common Share
Net Asset Value $13.12
------------------------------------
Premium/(Discount) to NAV -13.41%
------------------------------------
Market Yield 6.23%
------------------------------------
Taxable-Equivalent Yield(2) 9.28%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $121,533
------------------------------------
Average Effective
Maturity on Securities (Years) 17.07
------------------------------------
Leverage-Adjusted Duration 13.36
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -16.02% -7.45%
------------------------------------
5-Year 0.47% 2.57%
------------------------------------
Since
Inception 3.11% 5.14%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 23.3%
------------------------------------
Tax Obligation/Limited 20.8%
------------------------------------
Education and Civic
Organizations 13.0%
------------------------------------
Tax Obligation/General 9.8%
------------------------------------
Transportation 7.6%
------------------------------------
U.S. Guaranteed 6.0%
------------------------------------
Long-Term Care 4.1%
------------------------------------
Utilities 3.7%
------------------------------------
Other 11.7%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA as
of September 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a 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.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0682 per share.
15
NXK
Performance
OVERVIEW
Nuveen New York Dividend Advantage Municipal Fund 2
as of September 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 20%
AA 47%
A 11%
BBB 12%
BB or Lower 5%
N/R 5%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Oct 0.057
Nov 0.057
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.058
Line Chart:
Common Share Price Performance -- Weekly Closing Price
10/01/07 14.16
14.2601
14.5
14.12
13.68
13.52
13.1
12.75
12.91
13.19
13.34
12.96
13.09
13.14
13.79
13.9468
13.78
13.8
13.86
13.98
13.16
13.11
12.77
13.33
12.9
12.86
13.1099
13.1
13.32
13.35
13.34
13.43
13.5
13.43
13.5
13.46
13.4
13.14
12.95
12.73
12.96
12.89
12.83
12.84
12.65
12.74
12.63
12.62
12.62
12.73
12.56
11.838
11.35
9/30/08 11.15
FUND SNAPSHOT
------------------------------------
Common Share Price $11.15
------------------------------------
Common Share
Net Asset Value $13.14
------------------------------------
Premium/(Discount) to NAV -15.14%
------------------------------------
Market Yield 6.24%
------------------------------------
Taxable-Equivalent Yield(2) 9.30%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $85,340
------------------------------------
Average Effective
Maturity on Securities (Years) 16.49
------------------------------------
Leverage-Adjusted Duration 13.21
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -16.79% -6.63%
------------------------------------
5-Year 0.95% 2.94%
------------------------------------
Since
Inception 2.26% 4.98%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 18.2%
------------------------------------
Health Care 16.3%
------------------------------------
Tax Obligation/General 12.0%
------------------------------------
Education and Civic
Organizations 11.5%
------------------------------------
Transportation 11.1%
------------------------------------
U.S. Guaranteed 9.8%
------------------------------------
Utilities 8.0%
------------------------------------
Other 13.1%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA as
of September 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a 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.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0402 per share.
16
NNY
NNP
NAN
Shareholder MEETING REPORT
The annual meeting of shareholders was held in the offices of Nuveen Investments
on June 30, 2008; at this meeting the shareholders were asked to vote on the
election of Board Members.
NNY NNP NAN
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
Common together together together together
shares as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
John P. Amboian
For 12,415,684 11,838,655 -- 8,222,793 --
Withhold 327,683 353,692 -- 132,583 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,743,367 12,192,347 -- 8,355,376 --
====================================================================================================================================
Robert P. Bremner
For -- 11,837,966 -- -- --
Withhold -- 354,381 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,192,347 -- -- --
====================================================================================================================================
Jack B. Evans
For -- 11,835,827 -- -- --
Withhold -- 356,520 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,192,347 -- -- --
====================================================================================================================================
William C. Hunter
For 12,425,207 -- 3,358 -- 2,042
Withhold 318,160 -- 182 -- 219
------------------------------------------------------------------------------------------------------------------------------------
Total 12,743,367 -- 3,540 -- 2,261
====================================================================================================================================
David J. Kundert
For 12,424,707 11,838,491 -- 8,221,708 --
Withhold 318,660 353,856 -- 133,668 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,743,367 12,192,347 -- 8,355,376 --
====================================================================================================================================
William J. Schneider
For -- -- 3,358 -- 2,042
Withhold -- -- 182 -- 219
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,540 -- 2,261
====================================================================================================================================
Judith M. Stockdale
For -- 11,841,186 -- -- --
Withhold -- 351,161 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,192,347 -- -- --
====================================================================================================================================
Carole E. Stone
For -- 11,839,960 -- -- --
Withhold -- 352,387 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,192,347 -- -- --
====================================================================================================================================
Terence J. Toth
For 12,420,974 11,838,683 -- 8,222,793 --
Withhold 322,393 353,664 -- 132,583 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,743,367 12,192,347 -- 8,355,376 --
====================================================================================================================================
17
NXK
Shareholder MEETING REPORT (continued)
NXK
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
Preferred Preferred
shares voting shares voting
together together
as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
John P. Amboian
For 5,465,287 --
Withhold 178,441 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,643,728 --
====================================================================================================================================
Robert P. Bremner
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
Jack B. Evans
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
William C. Hunter
For -- 1,631
Withhold -- 16
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,647
====================================================================================================================================
David J. Kundert
For 5,466,277 --
Withhold 177,451 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,643,728 --
====================================================================================================================================
William J. Schneider
For -- 1,631
Withhold -- 16
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,647
====================================================================================================================================
Judith M. Stockdale
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
Carole E. Stone
For -- --
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- --
====================================================================================================================================
Terence J. Toth
For 5,514,041 --
Withhold 129,687 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,643,728 --
====================================================================================================================================
18
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN NEW YORK MUNICIPAL VALUE FUND, INC.
NUVEEN NEW YORK PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New York Municipal Value Fund, Inc.,
Nuveen New York Performance Plus Municipal Fund, Inc., Nuveen New York Dividend
Advantage Municipal Fund and Nuveen New York Dividend Advantage Municipal Fund 2
(the "Funds") as of September 30, 2008, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of September 30, 2008, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New York Municipal Value Fund, Inc., Nuveen New York Performance Plus
Municipal Fund, Inc., Nuveen New York Dividend Advantage Municipal Fund and
Nuveen New York Dividend Advantage Municipal Fund 2 at September 30, 2008, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended in conformity
with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
November 21, 2008
19
NNY
Nuveen New York Municipal Value Fund, Inc.
Portfolio of INVESTMENTS
September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.3% (1.3% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, Liberty 9/15 at 100.00 BB+ $ 221,213
Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
1,950 Seneca Nation of Indians Capital Improvements Authority, 6/17 at 100.00 BB 1,617,584
New York, Special Obligation Bonds, Series 2007A,
5.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
2,225 Total Consumer Discretionary 1,838,797
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.4% (1.4% OF TOTAL INVESTMENTS)
265 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 236,388
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
415 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 359,830
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
195 Rensselaer Tobacco Asset Securitization Corporation, New York, 6/12 at 100.00 BBB 172,949
Tobacco Settlement Asset-Backed Bonds, Series 2001A,
5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
1,005 4.750%, 6/01/22 6/16 at 100.00 BBB 861,496
345 5.000%, 6/01/26 6/16 at 100.00 BBB 296,089
------------------------------------------------------------------------------------------------------------------------------------
2,225 Total Consumer Staples 1,926,752
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.2% (8.4% OF TOTAL INVESTMENTS)
275 Albany Industrial Development Agency, New York, Revenue 7/17 at 100.00 BBB 226,740
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 89,919
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- 78,704
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,175 Dormitory Authority of the State of New York, General Revenue 7/17 at 100.00 BBB+ 1,002,122
Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 -
RAAI Insured
800 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 BBB+ 737,464
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 481,750
Bonds, State University Dormitory Facilities, Series 2004A,
5.000%, 7/01/29 - MBIA Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 BBB+ 1,243,388
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
750 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 102.00 BBB+ 732,023
Pratt Institute, Series 1999, 6.000%, 7/01/24 - RAAI Insured
Dormitory Authority of the State of New York, Second General
Resolution Consolidated Revenue Bonds, City University System,
Series 1993A:
1,000 5.750%, 7/01/18 No Opt. Call AA- 1,079,440
1,400 6.000%, 7/01/20 No Opt. Call AA- 1,504,454
575 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 A3 470,275
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 265 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A $ 241,966
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
245 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 219,150
Civic 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- 1,085,480
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 AA 976,789
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- 1,264,365
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 144,927
Revenue Bonds, New York Chiropractic College, Series 2007,
5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
12,500 Total Education and Civic Organizations 11,578,956
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.0% (1.1% OF TOTAL INVESTMENTS)
400 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 336,308
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,305 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 1,134,110
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
1,705 Total Financials 1,470,418
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.8% (12.0% OF TOTAL INVESTMENTS)
490 Cattaraugus County Industrial Development Agency, New York, 2/09 at 102.00 A+ 482,033
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 N/R 898,370
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 N/R 657,097
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
1,800 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 1,602,360
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 1,271,038
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 2,183,103
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 A3 1,009,620
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
250 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 100.00 A3 230,035
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 1,677,924
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 471,035
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 444,825
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 246,390
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- 243,062
260 5.500%, 2/01/32 No Opt. Call BBB- 223,683
470 Nassau County Industrial Development Agency, New York, Revenue No Opt. Call A3 484,095
Refunding Bonds, North Shore Health System Obligated Group,
Series 2001B, 5.875%, 11/01/11
21
NNY
Nuveen New York Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 500 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AA $ 505,090
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 AA 1,141,113
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AA 955,510
485 New York City Industrial Development Agency, New York, Civic 7/12 at 100.00 B2 428,197
Island University Hospital, Series 2001B, 6.375%, 7/01/31
245 New York City Industrial Development Agency, New York, Civic 7/12 at 101.00 B2 218,013
Facility Revenue Bonds, Staten Island University Hospital,
Series 2002C, 6.450%, 7/01/32
745 Newark-Wayne Community Hospital, New York, Hospital Revenue 3/09 at 100.00 N/R 745,380
Refunding and Improvement Bonds, Series 1993A,
7.600%, 9/01/15
500 Yonkers Industrial Development Agency, New York, Revenue Bonds, 7/11 at 101.00 B- 477,610
St. John's Riverside Hospital, Series 2001A, 7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
17,390 Total Health Care 16,595,583
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.8% (4.8% OF TOTAL INVESTMENTS)
400 East Syracuse Housing Authority, New York, FHA-Insured 4/10 at 102.00 AAA 415,384
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+ 1,605,230
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 1,005,380
1,000 5.500%, 11/01/31 5/11 at 101.00 AA 980,730
1,000 5.600%, 11/01/42 5/11 at 101.00 AA 977,630
440 New York State Housing Finance Agency, Secured Mortgage 8/11 at 100.00 Aa1 429,286
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 1,275,956
GNMA Collateralized Mortgage Loan Revenue Bonds, Living
Independently for the Elderly Inc., Series 2001A, 5.375%, 8/20/21
------------------------------------------------------------------------------------------------------------------------------------
6,805 Total Housing/Multifamily 6,689,596
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (4.0% OF TOTAL INVESTMENTS)
950 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 770,327
Revenue 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 317,530
Bonds, Series 148, 2007, 5.200%, 10/01/32
(Alternative Minimum Tax)
3,750 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/09 at 101.00 Aa1 3,661,537
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 720,972
Thirty-Third Series A, 4.750%, 4/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,910 Total Housing/Single Family 5,470,366
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.1% (9.2% OF TOTAL INVESTMENTS)
1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AA 1,026,880
Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 -
MBIA Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 101.00 AAA 952,670
Mortgage Nursing Home Revenue Bonds, Eger Healthcare
Center of Staten Island, Series 1998, 5.100%, 2/01/28
2,705 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 100.00 AA 2,721,418
Mortgage Nursing Home Revenue Bonds, Hebrew Home for
the Aged at Riverdale, Series 1997, 6.125%, 2/01/37
2,250 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 100.00 AA 2,250,495
Mortgage Nursing Home Revenue Bonds, Rosalind and
Joseph Gurwin Jewish Geriatric Center of Long Island,
Series 1997, 5.700%, 2/01/37 - AMBAC Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 1,370 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 100.00 AA- $ 1,370,480
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 2/09 at 100.00 AAA 2,000,800
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 AA 423,842
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 Aa2 243,327
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 93,918
Providence Rest, Series 2005, 5.000%, 7/01/35 - ACA Insured
530 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 537,330
Civic 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, 7/16 at 101.00 N/R 743,281
Civic 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 209,284
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 200,378
Facilities Revenue Bonds, Special Needs Facilities Pooled
Program Bonds, Series 2008-C1, 5.800%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
12,990 Total Long-Term Care 12,774,103
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.1% (0.1% OF TOTAL INVESTMENTS)
240 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 199,752
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.8% (7.9% OF TOTAL INVESTMENTS)
750 New York City, New York, General Obligation Bonds, 8/14 at 100.00 Aaa 782,258
Fiscal Series 2004C, 5.250%, 8/15/16
1,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 993,070
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 1,977,880
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 2,639,681
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 4,562,935
5.125%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
11,305 Total Tax Obligation/General 10,955,824
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.2% (20.5% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,013,750
Series 2003A, 5.250%, 11/01/21
395 Dormitory Authority of the State of New York, Department 7/15 at 100.00 AA- 387,910
of 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 277,258
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 357,511
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured (4)
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 1,990,940
1,000 5.000%, 11/15/30 11/12 at 100.00 AA 942,500
1,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 934,770
Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29
560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 459,911
Revenue Bonds, Series 2003, 5.500%, 1/01/34
23
NNY
Nuveen New York Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 740 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA $ 717,696
550 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 530,970
1,890 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,813,928
1,200 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 1,125,048
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
1,330 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,321,847
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
1,530 New York City Transitional Finance Authority, New York, Future 11/17 at 100.00 AAA 1,461,089
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- 995,030
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 2,024,505
Personal Income Tax Revenue Bonds, Series 2008A,
5.000%, 12/15/27 (UB)
840 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 791,020
Income 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 1,004,690
Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21 -
AMBAC Insured
610 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 736,038
Fund Bonds, Series 2005B, Trust 2800, 5.162%, 4/01/20 -
AMBAC Insured (IF)
1,175 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 1,115,169
Fund Bonds, Series 2007, 5.000%, 4/01/27
1,620 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 AAA 1,638,970
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 1,805,778
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AA 1,974,900
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,006,870
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 Project No Opt. Call AA- 635,190
Revenue Bonds, University Facilities Grants, Series 1995,
5.875%, 1/01/21
1,230 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AA 1,248,475
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.000%, 4/15/16 - AMBAC Insured
40 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 41,249
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
28,835 Total Tax Obligation/Limited 28,353,012
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.1% (8.2% OF TOTAL INVESTMENTS)
180 Albany Parking Authority, New York, Revenue Bonds, Series 2001A, 7/11 at 101.00 BBB+ 174,380
5.625%, 7/15/25
2,500 Metropolitan Transportation Authority, New York, Transportation 11/17 at 100.00 A 2,286,275
Revenue Bonds, Series 2007B, 5.000%, 11/15/33
500 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AA 511,950
Revenue Refunding Bonds, Series 2002A, 5.500%, 11/15/19 -
AMBAC Insured
1,100 New York City Industrial Development Agency, New York, Special 12/08 at 102.00 BB+ 669,779
Facilities Revenue Bonds, British Airways PLC, Series 1998,
5.250%, 12/01/32 (Alternative Minimum Tax)
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 1,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B- $ 914,530
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 AA 155,311
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
400 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 382,320
Series 2005G, 5.000%, 1/01/30 - FSA Insured
500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AA 452,920
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Fortieth Series 2005:
1,000 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- 955,870
435 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 410,475
325 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 266,364
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 0.036%, 8/15/32 - FSA Insured (IF)
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,503,550
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AA 813,212
800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AA 802,888
------------------------------------------------------------------------------------------------------------------------------------
12,185 Total Transportation 11,299,824
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.3% (7.4% OF TOTAL INVESTMENTS) (5)
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+ (5) 636,732
750 5.750%, 10/01/30 (Pre-refunded 10/01/10) - RAAI Insured 10/10 at 100.00 BBB+ (5) 796,643
220 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 N/R (5) 238,337
Series 2001A, 5.625%, 7/15/25 (Pre-refunded 7/15/11)
2,765 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 3,140,624
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 (ETM)
25 Dormitory Authority of the State of New York, Suffolk County, No Opt. Call Baa1 (5) 31,713
Lease Revenue Bonds, Judicial Facilities, Series 1991A,
9.500%, 4/15/14 (ETM)
305 Erie County Tobacco Asset Securitization Corporation, New York, 7/10 at 101.00 AAA 325,103
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 11/08 at 101.00 AA (5) 960,835
Facilities Revenue Bonds, Series 1997B,
5.000%, 7/01/20 - AMBAC Insured (ETM)
480 Monroe Tobacco Asset Securitization Corporation, New York, 6/10 at 101.00 AAA 505,982
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.150%, 6/01/25 (Pre-refunded 6/01/10)
410 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R (5) 445,125
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded 7/01/10)
750 Niagara Falls City School District, Niagara County, New York, 6/09 at 101.00 BBB- (5) 778,785
Certificates of Participation, High School Facility, Series 2000,
6.625%, 6/15/28 (Pre-refunded 6/15/09)
1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AA (5) 1,120,520
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 BBB- (5) 1,214,371
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
9,385 Total U.S. Guaranteed 10,194,770
------------------------------------------------------------------------------------------------------------------------------------
25
NNY
Nuveen New York Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5% (6.6% 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- $ 1,424,880
1,500 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A- 1,418,700
250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 233,125
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- 886,600
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 AA 1,484,550
Pollution Control Revenue Bonds, New York State Electric and
Gas Corporation, Series 2005A, 4.100%, 3/15/15 - MBIA Insured
500 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 485,645
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 238,985
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 1,456,845
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 25,479
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:
1,000 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R 927,020
575 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 479,792
------------------------------------------------------------------------------------------------------------------------------------
9,600 Total Utilities 9,061,621
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.0% (2.0% OF TOTAL INVESTMENTS)
415 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 440,112
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 1,574,535
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 761,023
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
------------------------------------------------------------------------------------------------------------------------------------
2,655 Total Water and Sewer 2,775,670
------------------------------------------------------------------------------------------------------------------------------------
$ 135,955 Total Long-Term Investments (cost $137,363,126) - 93.5% 131,185,044
=============-----------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 5.0% (5.1% OF TOTAL INVESTMENTS)
$ 7,000 Metropolitan Transportation Authority, New York, Dedicated Tax A-1+ $ 7,000,000
Fund Bonds, Variable Rate Demand Revenue Obligations,
Series 2008A, 8.000%, 11/01/31 - FSA Insured (6)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $7,000,000) 7,000,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $144,363,126) - 98.5% 138,185,044
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.1)% (1,575,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 3,674,839
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $140,284,883
====================================================================================================================
FUTURES CONTRACTS OUTSTANDING AT SEPTEMBER 30, 2008:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION SEPTEMBER 30, 2008 (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond Long 43 12/08 $5,038,391 $(13,211)
====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and SYNCORA as of September 30, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Portion of investment, with an aggregate market value of
$112,361, has been pledged to collateralize the net payment
obligations under futures contracts.
(5) 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.
(6) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
27
NNP
Nuveen New York Performance Plus Municipal Fund, Inc.
Portfolio of INVESTMENTS
September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 685 New York City Industrial Development Agency, New York, 9/15 at 100.00 BB+ $ 551,021
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.4% (1.5% OF TOTAL INVESTMENTS)
540 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 481,696
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 916,910
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
500 Rensselaer Tobacco Asset Securitization Corporation, New York, 6/12 at 100.00 BBB 443,460
Tobacco Settlement Asset-Backed Bonds, Series 2001A,
5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
2,675 4.750%, 6/01/22 6/16 at 100.00 BBB 2,293,037
930 5.000%, 6/01/26 6/16 at 100.00 BBB 798,154
------------------------------------------------------------------------------------------------------------------------------------
5,645 Total Consumer Staples 4,933,257
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.9% (13.5% OF TOTAL INVESTMENTS)
655 Albany Industrial Development Agency, New York, Revenue Bonds, 7/17 at 100.00 BBB 540,054
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 215,023
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/37
1,285 Cattaraugus County Industrial Development Agency, New York, 3/09 at 101.00 BBB- 1,284,974
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- 78,704
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 1,068,670
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 Revenue 7/17 at 100.00 BBB+ 2,400,829
Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 -
RAAI Insured
2,120 Dormitory Authority of the State of New York, General Revenue No Opt. Call AA 2,179,911
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 Bonds, 7/15 at 100.00 AA 1,159,061
State University Dormitory Facilities, Series 2004A,
5.000%, 7/01/29 - MBIA Insured
230 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 234,179
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20 -
FSA Insured
8,345 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 BBB+ 8,300,852
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
1,250 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 BBB+ 1,251,738
1,000 6.000%, 7/01/24 - RAAI Insured 7/09 at 102.00 BBB+ 976,030
3,810 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 BBB+ 3,683,508
2,500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AA- 2,723,750
State University Educational Facilities, Series 1993A,
5.875%, 5/15/17
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,800 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 A3 $ 2,290,036
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 579,806
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 6/09 at 102.00 BBB+ 968,170
2,365 5.375%, 6/01/24 - RAAI Insured 6/09 at 102.00 BBB+ 2,103,549
580 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 518,804
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
850 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 838,780
Civic 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 AA 1,912,013
Revenue Bonds, Queens Baseball Stadium Project, Series 2006,
4.750%, 1/01/42 - AMBAC Insured
3,855 New York City Industrial Development Authority, New York, PILOT 9/16 at 100.00 BBB- 3,027,409
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- 4,664,050
University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured
420 Seneca County Industrial Development Authority, New York, 10/17 at 100.00 BBB 358,054
Revenue Bonds, New York Chiropractic College, Series 2007,
5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
46,395 Total Education and Civic Organizations 43,357,954
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 840,770
Headquarters Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,740 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 1,512,147
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
2,740 Total Financials 2,352,917
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.7% (12.7% OF TOTAL INVESTMENTS)
50 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 100.50 AA 43,356
Mortgage Hospital Revenue Bonds, New York and Presbyterian
Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
715 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 101.00 AA 725,239
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 N/R 1,103,967
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 N/R 1,595,807
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
4,500 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 4,005,900
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
3,750 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 3,813,113
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AA 7,642,639
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
1,200 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba1 1,019,208
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 5,202,288
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35 (UB)
3,400 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A3 3,432,708
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
29
NNP
Nuveen New York Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,925 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA $ 3,077,071
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 A3 1,545,102
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 1,177,588
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 800,685
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- 616,337
625 5.500%, 2/01/32 No Opt. Call BBB- 537,700
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 AA 971,160
1,250 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AA 1,194,388
730 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 644,502
Civic Facility Revenue Bonds, Staten Island University Hospital,
Series 2001B, 6.375%, 7/01/31
725 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 645,141
Civic 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- 1,050,742
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
43,165 Total Health Care 40,844,641
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.9% (3.8% OF TOTAL INVESTMENTS)
4,530 New York City Housing Development Corporation, New York, 7/15 at 100.00 AA+ 4,302,775
Capital Fund Program Revenue Bonds, Series 2008,
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 1,578,975
2,000 5.600%, 11/01/42 5/11 at 101.00 AA 1,955,260
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 840,922
450 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 401,531
1,500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 1,463,550
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 589,308
Revenue, Series 2007A, 5.250%, 11/01/38
(Alternative Minimum Tax)
1,100 New York State Housing Finance Agency, Secured Mortgage 8/09 at 101.00 Aa1 1,081,971
Program Multifamily Housing Revenue Bonds, Series 1999I,
6.200%, 2/15/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,790 Total Housing/Multifamily 12,214,292
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.5% (3.5% OF TOTAL INVESTMENTS)
835 New York State Mortgage Agency, Homeowner Mortgage 4/17 at 100.00 Aa1 695,413
Revenue Bonds, 2007 Series 145, 5.125%, 10/01/37
(Alternative Minimum Tax)
2,295 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 1,860,947
Revenue Bonds, Series 130, 4.650%, 4/01/27
(Alternative Minimum Tax)
880 New York State Mortgage Agency, Homeowner Mortgage 10/17 at 100.00 Aa1 755,207
Revenue Bonds, Series 148, 2007, 5.200%, 10/01/32
(Alternative Minimum Tax)
1,250 New York State Mortgage Agency, Homeowner Mortgage 3/09 at 101.00 Aa1 1,220,513
Revenue Bonds, Series 73A, 5.250%, 10/01/17
(Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 310 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 $ 313,612
Revenue Bonds, Series 82, 5.650%, 4/01/30
(Alternative Minimum Tax)
5,595 New York State Mortgage Agency, Homeowner Mortgage 4/11 at 100.00 Aa1 5,029,513
Revenue Bonds, Series 97, 5.500%, 4/01/31
(Alternative Minimum Tax)
1,660 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 1,424,778
Thirty-Third Series A, 4.750%, 4/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,825 Total Housing/Single Family 11,299,983
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.7% (4.9% OF TOTAL INVESTMENTS)
2,705 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 100.00 AA 2,721,419
Mortgage Nursing Home Revenue Bonds, Hebrew Home for
the Aged at Riverdale, Series 1997, 6.125%, 2/01/37
1,100 Dormitory Authority of the State of New York, GNMA Collateralized 2/17 at 103.00 AA 1,036,057
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 Aa2 581,280
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- 1,291,483
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 37,787
425 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 N/R 295,668
1,350 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 1,368,671
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:
1,965 5.500%, 7/01/18 7/16 at 101.00 N/R 1,781,155
755 5.800%, 7/01/23 7/16 at 101.00 N/R 672,380
85 New York State Medical Care Facilities Finance Agency, 2/09 at 100.00 AA+ 85,180
FHA-Insured Mortgage Hospital and Nursing Home
Revenue Bonds, Series 1995C, 6.100%, 8/15/15
2,755 Oswego County Industrial Development Agency, New York, 2/09 at 101.00 AAA 2,605,679
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 302,794
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2008-B1, 5.800%, 7/01/23
2,995 Syracuse Housing Authority, New York, FHA-Insured Mortgage 2/09 at 101.00 AAA 3,059,662
Revenue Bonds, Loretto Rest Residential Healthcare Facility,
Series 1997A, 5.600%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
16,545 Total Long-Term Care 15,839,215
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
575 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 478,573
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.3% (7.9% OF TOTAL INVESTMENTS)
1,800 New York City, New York, General Obligation Bonds, 8/14 at 100.00 Aaa 1,877,418
Fiscal Series 2004C-1, 5.250%, 8/15/16 (UB)
2,500 New York City, New York, General Obligation Bonds, 11/14 at 100.00 AAA 2,482,675
Fiscal Series 2004E, 5.000%, 11/01/19 - FSA Insured (UB)
3,000 New York City, New York, General Obligation Bonds, 9/15 at 100.00 AA 2,966,820
Fiscal Series 2005F-1, 5.000%, 9/01/19 - SYNCORA GTY Insured
6,400 New York City, New York, General Obligation Bonds, 6/16 at 100.00 AA 6,046,528
Fiscal Series 2006J-1, 5.000%, 6/01/25 (UB)
10,000 New York City, New York, General Obligation Bonds, 12/17 at 100.00 AA 9,538,700
Fiscal Series 2007D-1, 5.125%, 12/01/26 (UB)
31
NNP
Nuveen New York Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 835 New York City, New York, General Obligation Bonds, Tender 11/14 at 100.00 AAA $ 934,641
Option Bond Trust 1198, 1.829%, 11/01/19 (WI/DD,
Settling 10/02/08) - FSA Insured (IF)
Oneida County, New York, General Obligation Public Improvement
Bonds, Series 2000:
200 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AA 204,710
200 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AA 202,860
United Nations Development Corporation, New York, Senior Lien
Revenue Bonds, Series 2004A:
750 5.250%, 7/01/23 11/08 at 100.00 A3 718,005
500 5.250%, 7/01/24 11/08 at 100.00 A3 476,265
------------------------------------------------------------------------------------------------------------------------------------
26,185 Total Tax Obligation/General 25,448,622
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.5% (22.2% OF TOTAL INVESTMENTS)
2,400 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 2,369,880
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 1,303,013
1,385 5.250%, 8/15/18 - FSA Insured 8/11 at 100.00 AAA 1,426,924
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AA- 963,350
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 695,665
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 4,977,350
2,500 5.000%, 11/15/30 11/12 at 100.00 AA 2,356,250
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,175 5.750%, 7/01/18 No Opt. Call AA- 2,371,403
2,000 5.125%, 1/01/29 7/12 at 100.00 AA- 1,869,540
1,300 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AA 1,218,009
1,680 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 1,379,734
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 2008:
2,670 5.000%, 10/15/25 - MBIA Insured (UB) 10/14 at 100.00 AAA 2,589,526
2,125 5.000%, 10/15/26 - MBIA Insured (UB) 10/14 at 100.00 AAA 2,051,475
2,475 5.000%, 10/15/29 - AMBAC Insured (UB) 10/14 at 100.00 AAA 2,375,381
3,100 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 2,906,374
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 2,648,664
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 3,476,054
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- 995,030
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 4,820,250
Personal Income Tax Revenue Bonds, Series 2008A,
5.000%, 12/15/27 (UB)
2,030 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 1,911,631
Income 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 1,004,690
Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21 -
AMBAC Insured
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,400 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA $ 1,689,268
Fund Bonds, Series 2005B, Trust 2800, 5.162%, 4/01/20 -
AMBAC Insured (IF)
2,800 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 2,657,424
Fund Bonds, Series 2007, 5.000%, 4/01/27
6,500 New York State Thruway Authority, State Personal Income Tax 3/12 at 100.00 AAA 6,576,114
Revenue Bonds, Series 2002A, 5.125%, 3/15/21
6,700 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA 6,721,506
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- 3,020,610
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 Contract No Opt. Call AA- 3,769,933
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 1,234,363
Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
72,395 Total Tax Obligation/Limited 71,379,411
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.4% (6.7% OF TOTAL INVESTMENTS)
810 Albany Parking Authority, New York, Revenue Bonds, Series 2001B, 10/11 at 101.00 BBB+ 843,761
5.250%, 10/15/12
1,500 Metropolitan Transportation Authority, New York, Transportation No Opt. Call A 1,566,495
Revenue Bonds, Series 2003A, 5.000%, 11/15/15 - FGIC Insured
1,900 New York City Industrial Development Agency, New York, 12/08 at 102.00 BB+ 1,156,891
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 AA 202,375
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
1,100 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,051,380
Series 2008, 5.000%, 1/01/30 - FSA Insured (UB)
1,000 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AA 905,840
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
2,300 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- 2,198,501
1,080 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 1,019,110
770 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 631,077
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 0.036%, 8/15/32 - FSA Insured (IF)
2,040 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/08 at 100.00 CCC+ 1,019,429
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
2,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 2,018,960
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 5,758,165
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
2,400 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 AA 2,408,664
Lien General Purpose Revenue Refunding Bonds, Series 2002E,
5.250%, 11/15/22 - MBIA Insured
875 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/18 at 100.00 AA- 651,595
Lien General Purpose Revenue Refunding Bonds, Tender Option
Bond Trust 1184, 0.880%, 11/15/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
23,740 Total Transportation 21,432,243
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.5% (11.9% OF TOTAL INVESTMENTS) (4)
1,500 Albany Industrial Development Agency, New York, Revenue 12/09 at 101.00 BBB+ (4) 1,591,995
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 1,668,276
Nursing Home Mortgage Revenue Bonds, Shorefront Jewish
Geriatric Center Inc., Series 2002, 5.200%, 2/01/32
(Pre-refunded 2/01/13)
33
NNP
Nuveen New York Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
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 $ 26,535
10 5.875%, 2/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 10,608
155 5.875%, 2/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 164,519
20 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 Aaa 21,228
10 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 10,608
155 5.875%, 2/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 164,519
25 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 Aaa 26,535
15 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 15,913
180 5.875%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 191,054
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/12 at 100.00 AAA 1,080,510
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 370,580
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20
(Pre-refunded 7/01/10) - FSA Insured
765 Erie County Tobacco Asset Securitization Corporation, New York, 7/10 at 101.00 AAA 815,421
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 Tax 10/15 at 100.00 AAA 5,238,500
Fund Bonds, Series 1998A, 4.500%, 4/01/18
(Pre-refunded 10/01/15) - FGIC Insured
525 Monroe Tobacco Asset Securitization Corporation, New York, 6/10 at 101.00 AAA 553,418
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.150%, 6/01/25 (Pre-refunded 6/01/10)
2,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 2,608,475
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.500%, 7/15/27 (Pre-refunded 7/15/09)
1,040 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R (4) 1,129,097
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2000, 8.125%, 7/01/19
(Pre-refunded 7/01/10)
1,000 New York City Trust for Cultural Resources, New York, 7/09 at 101.00 AAA 1,036,200
Revenue Bonds, American Museum of Natural History,
Series 1999A, 5.750%, 7/01/29 (Pre-refunded 7/01/09) -
AMBAC Insured
2,950 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 3,157,680
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 AA (4) 2,218,815
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 1,653,344
Purpose Revenue Bonds, Series 1993B, 5.000%, 1/01/20 (ETM)
7,500 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 8,028,824
Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30
(Pre-refunded 1/01/22)
3,480 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 3,775,870
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
2,520 Yonkers Industrial Development Agency, New York, 2/11 at 100.00 BBB- (4) 2,732,335
Revenue Bonds, Community Development Properties -
Yonkers Inc. Project, Series 2001A, 6.625%, 2/01/26
(Pre-refunded 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
35,940 Total U.S. Guaranteed 38,290,859
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.6% (5.5% 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- 2,944,752
3,100 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A- 2,931,980
2,300 Nassau County Industrial Development Authority, New York, 6/13 at 100.00 A- 2,039,180
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 1,868,620
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 3,884,920
Bonds, Series 2000A, 5.250%, 11/15/40
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 820 Power Authority of the State of New York, General Revenue 11/15 at 100.00 Aa2 $ 835,703
Bonds, Series 2006A, 5.000%, 11/15/19 - FGIC Insured
4,000 Suffolk County Industrial Development Agency, New York, 1/09 at 101.00 N/R 3,337,680
Revenue Bonds, Nissequogue Cogeneration Partners Facility,
Series 1998, 5.500%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,320 Total Utilities 17,842,835
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.1% (3.9% OF TOTAL INVESTMENTS)
2,495 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 2,645,972
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 2,099,380
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 2,288,212
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 1,384,099
4,060 5.250%, 11/15/20 11/12 at 100.00 AAA 4,141,079
------------------------------------------------------------------------------------------------------------------------------------
12,125 Total Water and Sewer 12,558,742
------------------------------------------------------------------------------------------------------------------------------------
$ 331,070 Total Long-Term Investments (cost $334,115,349) - 154.1% 318,824,565
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 3,000 Metropolitan Transportation Authority, New York, Dedicated Tax A-1+ 3,000,000
Fund Bonds, Variable Rate Demand Revenue Obligations,
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,000,000) 3,000,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $337,115,349) - 155.5% 321,824,565
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (16.0)% (33,150,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 5,951,248
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (42.3)% (6) (87,650,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $206,975,813
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and SYNCORA as of September 30, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
(6) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 27.2%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
35
NAN
Nuveen New York Dividend Advantage Municipal Fund
Portfolio of INVESTMENTS
September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.8% (1.8% OF TOTAL INVESTMENTS)
$ 500 New York City Industrial Development Agency, New York, 9/15 at 100.00 BB+ $ 402,205
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 2,986,308
New York, Special Obligation Bonds, Series 2007A,
5.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,100 Total Consumer Discretionary 3,388,513
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5% (1.6% OF TOTAL INVESTMENTS)
355 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 316,671
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
840 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 728,330
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
285 Rensselaer Tobacco Asset Securitization Corporation, 6/12 at 100.00 BBB 252,772
New 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 771,489
1,125 5.000%, 6/01/26 6/16 at 100.00 BBB 965,509
------------------------------------------------------------------------------------------------------------------------------------
3,505 Total Consumer Staples 3,034,771
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.9% (13.0% OF TOTAL INVESTMENTS)
380 Albany Industrial Development Agency, New York, Revenue Bonds, 7/17 at 100.00 BBB 313,314
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 125,104
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- 104,939
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,635 Dormitory Authority of the State of New York, General Revenue 7/17 at 100.00 BBB+ 1,394,442
Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 -
RAAI Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AA- 1,042,120
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 672,542
Bonds, State University Dormitory Facilities, Series 2004A,
5.000%, 7/01/29 - MBIA Insured
195 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 198,543
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20 -
FSA Insured
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 BBB+ 1,243,388
Marymount Manhattan College, Series 1999, 6.250%, 7/01/29 -
RAAI Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Pratt Institute, Series 1999:
1,750 6.000%, 7/01/20 - RAAI Insured 7/09 at 102.00 BBB+ 1,752,433
750 6.000%, 7/01/28 - RAAI Insured 7/09 at 102.00 BBB+ 725,100
1,630 Dutchess County Industrial Development Agency, New York, 8/17 at 100.00 A3 1,333,128
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 337,840
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
Kenmore Housing Authority, New York, Revenue Bonds, State
University of New York at Buffalo Student Apartment Project,
Series 1999A:
$ 3,050 5.500%, 8/01/19 - RAAI Insured 8/09 at 102.00 A3 $ 2,912,659
2,750 5.500%, 8/01/24 - RAAI Insured 8/09 at 102.00 A3 2,482,810
3,070 Monroe County Industrial Development Agency, New York, 6/09 at 102.00 BBB+ 2,730,612
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- 295,182
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- 1,776,240
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 AA 1,355,035
PILOT Revenue Bonds, Queens Baseball Stadium Project,
Series 2006, 4.750%, 1/01/42 - AMBAC Insured
2,240 New York City Industrial Development Authority, New York, 9/16 at 100.00 BBB- 1,759,117
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+ 1,380,270
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 208,865
Revenue Bonds, New York Chiropractic College, Series 2007,
5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
26,560 Total Education and Civic Organizations 24,143,683
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,100 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 924,847
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,740 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 1,512,147
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
2,840 Total Financials 2,436,994
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 35.5% (23.3% OF TOTAL INVESTMENTS)
Albany Industrial Development Agency, New York, Revenue
Bonds, Albany Medical Center, Series 1999:
1,120 6.000%, 5/01/19 5/09 at 101.00 N/R 1,039,517
1,460 6.000%, 5/01/29 5/09 at 101.00 N/R 1,260,695
2,135 Dormitory Authority of the State of New York, FHA-Insured 2/09 at 101.00 AA 2,153,980
Mortgage Hospital Revenue Bonds, Memorial Hospital of
William F. and Gertrude F. Jones Inc., Series 1999,
5.250%, 8/01/19 - MBIA Insured
4,825 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AA 4,794,888
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.450%, 8/01/29 - AMBAC Insured
Dormitory Authority of the State of New York, FHA-Insured
Mortgage Hospital Revenue Bonds, Victory Memorial Hospital,
Series 1999:
1,585 5.250%, 8/01/15 - MBIA Insured 8/09 at 101.00 AA 1,610,725
2,000 5.375%, 8/01/25 - MBIA Insured 8/09 at 101.00 AA 1,994,360
625 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 N/R 558,688
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 AA 2,314,520
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 1/09 at 101.00 A3 2,023,080
2,000 5.500%, 7/01/27 - RAAI Insured 1/09 at 101.00 A3 1,782,820
2,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Baa1 2,033,660
Catholic Health Services of Long Island Obligated Group -
St. Catherine of Siena Medical Center, Series 2000A,
6.500%, 7/01/20
37
NAN
Nuveen New York Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
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 $ 150,498
500 5.500%, 7/01/30 7/11 at 101.00 Ba1 424,670
3,150 Dormitory Authority of the State of New York, Revenue Bonds, 7/16 at 100.00 AA 2,926,287
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35 (UB)
1,575 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 A3 1,590,152
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/25
250 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 100.00 A3 230,035
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
1,415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,488,566
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 Bonds, 11/16 at 100.00 A3 858,390
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 Bonds, 7/17 at 100.00 BB 1,766,280
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 471,035
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 533,790
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
420 Livingston County Industrial Development Agency, New York, 7/10 at 100.00 BB 356,840
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- 355,913
360 5.500%, 2/01/32 No Opt. Call BBB- 309,715
1,750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AA 1,672,143
Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/22 -
AMBAC Insured
570 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 503,242
Civic Facility Revenue Bonds, Staten Island University Hospital,
Series 2001B, 6.375%, 7/01/31
100 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 88,985
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 A1 3,857,879
Civic Facility Revenue Bonds, Kingston Hospital, Series 1999,
5.650%, 11/15/24
3,350 Yates County Industrial Development Agency, New York, 8/09 at 101.00 AAA 3,354,389
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- 620,893
Bonds, St. John's Riverside Hospital, Series 2001A,
7.125%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
45,115 Total Health Care 43,126,635
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.3% (3.5% OF TOTAL INVESTMENTS)
2,585 New York City Housing Development Corporation, New York, 7/15 at 100.00 AA+ 2,455,336
Capital Fund Program Revenue Bonds, Series 2008,
5.000%, 7/01/25 - FGIC Insured (UB)
3,000 New York City Housing Development Corporation, New York, 5/11 at 101.00 AA 2,942,190
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 731,775
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
405 New York State Housing Finance Agency, Affordable 11/17 at 100.00 Aa2 345,898
Housing Revenue, Series 2007A, 5.250%, 11/01/38
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,740 Total Housing/Multifamily 6,475,199
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.1% (2.7% OF TOTAL INVESTMENTS)
$ 645 Guam Housing Corporation, Mortgage-Backed Securities No Opt. Call AAA $ 598,560
Program Single Family Mortgage Revenue Bonds, Series 1998A,
5.750%, 9/01/31 (Alternative Minimum Tax)
485 New York State Mortgage Agency, Homeowner Mortgage 4/17 at 100.00 Aa1 403,923
Revenue Bonds, 2007 Series 145, 5.125%, 10/01/37
(Alternative Minimum Tax)
1,350 New York State Mortgage Agency, Homeowner Mortgage 4/15 at 100.00 Aa1 1,094,675
Revenue Bonds, Series 130, 4.650%, 4/01/27
(Alternative Minimum Tax)
510 New York State Mortgage Agency, Homeowner Mortgage 10/17 at 100.00 Aa1 437,677
Revenue Bonds, Series 148, 2007, 5.200%, 10/01/32
(Alternative Minimum Tax)
1,735 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 Aa1 1,755,213
Revenue Bonds, Series 82, 5.650%, 4/01/30
(Alternative Minimum Tax)
840 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/13 at 101.00 Aaa 720,972
Thirty-Third Series A, 4.750%, 4/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,565 Total Housing/Single Family 5,011,020
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.2% (4.1% OF TOTAL INVESTMENTS)
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AA 1,756,420
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 AA 565,122
Collateralized Revenue Bonds, Cabrini of Westchester
Project, Series 2006, 5.200%, 2/15/41
375 Dormitory Authority of the State of New York, Non-State 11/16 at 100.00 Aa2 337,954
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 Bonds, 7/15 at 100.00 N/R 173,923
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 713,330
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 760,373
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 1,033,342
635 5.800%, 7/01/23 7/16 at 101.00 N/R 565,512
1,780 Yonkers Industrial Development Agency, New York, 2/09 at 101.00 AA 1,653,478
FHA-Insured Mortgage Revenue Bonds, Michael Malotz Skilled
Nursing Pavilion, Series 1999, 5.450%, 2/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,435 Total Long-Term Care 7,559,454
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
330 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 274,659
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.9% (9.8% OF TOTAL INVESTMENTS)
2,600 New York City, New York, General Obligation Bonds, 5/09 at 101.00 AA 2,437,812
Fiscal Series 1999J, 5.125%, 5/15/29 - MBIA Insured
1,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 Aaa 1,043,010
Fiscal Series 2004C-1, 5.250%, 8/15/16 (UB)
3,700 New York City, New York, General Obligation Bonds, 8/16 at 100.00 AA 3,494,390
Fiscal Series 2007A, 5.000%, 8/01/25
6,590 New York City, New York, General Obligation Bonds, 12/17 at 100.00 AA 6,317,174
Fiscal Series 2007D-1, 5.125%, 12/01/25 (UB)
Rochester, New York, General Obligation Bonds, Series 1999:
720 5.250%, 10/01/18 - MBIA Insured No Opt. Call AA 756,302
720 5.250%, 10/01/19 - MBIA Insured No Opt. Call AA 748,382
39
NAN
Nuveen New York Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,280 Rockland County, New York, General Obligation Bonds, 10/09 at 101.00 AA- $ 2,416,025
Series 1999, 5.600%, 10/15/16
United Nations Development Corporation, New York, Senior Lien
Revenue Bonds, Series 2004A:
500 5.250%, 7/01/23 11/08 at 100.00 A3 478,670
500 5.250%, 7/01/24 11/08 at 100.00 A3 476,265
------------------------------------------------------------------------------------------------------------------------------------
18,610 Total Tax Obligation/General 18,168,030
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.8% (20.8% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,013,750
Series 2003A, 5.250%, 11/01/21
590 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 AA- 579,410
Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 -
CIFG Insured
1,850 Dormitory Authority of the State of New York, Secured Hospital 2/09 at 100.75 AA 1,853,515
Revenue Refunding Bonds, Wyckoff Heights Medical Center,
Series 1998H, 5.300%, 8/15/21 - MBIA Insured
185 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 186,519
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 561,803
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 1,990,940
2,000 5.000%, 11/15/30 11/12 at 100.00 AA 1,885,000
1,000 Metropolitan Transportation Authority, New York, 7/12 at 100.00 AA- 934,770
State 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 928,035
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 2008:
1,100 5.000%, 10/15/25 - MBIA Insured (UB) 10/14 at 100.00 AAA 1,066,846
810 5.000%, 10/15/26 - MBIA Insured (UB) 10/14 at 100.00 AAA 781,974
2,375 5.000%, 10/15/29 - AMBAC Insured (UB) 10/14 at 100.00 AAA 2,279,406
2,100 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 1,968,834
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 1,659,763
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 2,019,740
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- 995,030
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 2,824,896
Personal Income Tax Revenue Bonds, Series 2008A,
5.000%, 12/15/26 (UB)
1,190 New York State Housing Finance Agency, State Personal 9/15 at 100.00 AAA 1,120,611
Income 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 1,004,690
Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21 -
AMBAC Insured
850 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 1,025,627
Fund Bonds, Series 2005B, Trust 2800, 5.162%, 4/01/20 -
AMBAC Insured (IF)
1,625 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 1,542,255
Fund Bonds, Series 2007, 5.000%, 4/01/27
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 4,012,839
2,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AA 1,974,900
1,000 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 1,006,870
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
3,345 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AA 3,438,893
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.250%, 10/15/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,405 Total Tax Obligation/Limited 38,656,916
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.6% (7.6% OF TOTAL INVESTMENTS)
310 Albany Parking Authority, New York, Revenue Bonds, Series 2001A, 7/11 at 101.00 BBB+ 300,322
5.625%, 7/15/25
3,000 Metropolitan Transportation Authority, New York, Transportation 11/17 at 100.00 A 2,743,530
Revenue Bonds, Series 2007B, 5.000%, 11/15/33
1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 A 968,200
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- 1,464,593
American Airlines-JFK International Airport Special Facility
Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
105 New York City Industrial Development Agency, New York, 12/08 at 102.00 BB+ 63,933
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- 914,530
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- 306,819
JetBlue, 5.000%, 5/15/20 (Alternative Minimum Tax)
160 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AA 150,605
Series 2005F, 5.000%, 1/01/30 - AMBAC Insured
700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 669,060
Series 2008, 5.000%, 1/01/30 - FSA Insured (UB)
500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AA 452,920
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
1,300 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- 1,242,631
615 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 580,326
440 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 360,615
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 0.036%, 8/15/32 - FSA Insured (IF)
1,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 Aa2 1,036,160
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 2,503,550
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
500 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/18 at 100.00 AA- 372,340
Lien General Purpose Revenue Refunding Bonds, Tender
Option Bond Trust 1184, 0.880%, 11/15/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
15,330 Total Transportation 14,130,134
------------------------------------------------------------------------------------------------------------------------------------
41
NAN
Nuveen New York Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.1% (6.0% OF TOTAL INVESTMENTS) (4)
$ 390 Albany Parking Authority, New York, Revenue Bonds, Series 2001A, 7/11 at 101.00 N/R (4) $ 422,507
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 26,535
10 5.875%, 8/15/18 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 AAA 10,608
305 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 322,934
Fashion Institute of Technology, Series 2000, 5.375%, 7/01/20
(Pre-refunded 7/01/10) - FSA Insured
460 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 490,319
New 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 11/08 at 101.00 AA (4) 535,465
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured (ETM)
1,205 Monroe Tobacco Asset Securitization Corporation, New York, 6/10 at 101.00 AAA 1,270,227
Tobacco Settlement Asset-Backed Bonds, Series 2000,
6.150%, 6/01/25 (Pre-refunded 6/01/10)
515 New York City Industrial Development Agency, New York, 7/10 at 102.00 N/R (4) 559,120
Civic Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2000, 8.125%, 7/01/19 (Pre-refunded 7/01/10)
3,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 3,126,540
Purpose Revenue Bonds, Series 1997A, 5.250%, 1/01/28
(Pre-refunded 1/01/22) - FSA Insured
600 Utica Industrial Development Agency, New York, Revenue Bonds, 6/09 at 101.00 N/R (4) 623,358
Utica College, Series 2004A, 6.875%, 12/01/34
(Pre-refunded 6/01/09)
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 813,765
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
1,250 Westchester Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 1,353,950
New York, Tobacco Settlement Asset-Backed Bonds,
Series 1999, 6.750%, 7/15/29 (Pre-refunded 7/15/10)
1,400 Yonkers Industrial Development Agency, New York, Revenue 2/11 at 100.00 BBB- (4) 1,517,964
Bonds, Community Development Properties - Yonkers Inc.
Project, Series 2001A, 6.625%, 2/01/26 (Pre-refunded 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
10,445 Total U.S. Guaranteed 11,073,292
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.7% (3.7% 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- 2,374,800
500 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A- 472,900
1,400 Nassau County Industrial Development Authority, New York, 6/13 at 100.00 A- 1,241,240
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 238,985
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 576,954
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 1,971,560
Bonds, Series 2000A, 5.250%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
7,250 Total Utilities 6,876,439
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.0% (0.6% OF TOTAL INVESTMENTS)
$ 1,130 New York City Municipal Water Finance Authority, New York, 6/12 at 100.00 AAA $ 1,162,104
Water and Sewerage System Revenue Bonds, Fiscal
Series 2003A, 5.375%, 6/15/19
------------------------------------------------------------------------------------------------------------------------------------
$ 195,360 Total Investments (cost $196,657,039) - 152.6% 185,517,843
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.4)% (16,325,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 3,740,424
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (42.3)% (5) (51,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $121,533,267
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and SYNCORAas of September 30, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 27.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
43
NXK
Nuveen New York Dividend Advantage Municipal Fund 2
Portfolio of INVESTMENTS
September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 275 New York City Industrial Development Agency, New York, Liberty 9/15 at 100.00 BB+ $ 221,213
Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35
1,950 Seneca Nation of Indians Capital Improvements Authority, 6/17 at 100.00 BB 1,617,584
New York, Special Obligation Bonds, Series 2007A,
5.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
2,225 Total Consumer Discretionary 1,838,797
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (1.7% OF TOTAL INVESTMENTS)
350 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 312,211
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 458,455
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
175 Rensselaer Tobacco Asset Securitization Corporation, New York, 6/12 at 100.00 BBB 155,211
Tobacco Settlement Asset-Backed Bonds, Series 2001A,
5.200%, 6/01/25
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006:
670 4.750%, 6/01/22 6/16 at 100.00 BBB 574,331
835 5.000%, 6/01/26 6/16 at 100.00 BBB 716,622
------------------------------------------------------------------------------------------------------------------------------------
2,530 Total Consumer Staples 2,216,830
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.3% (11.5% OF TOTAL INVESTMENTS)
260 Albany Industrial Development Agency, New York, Revenue Bonds, 7/17 at 100.00 BBB 214,373
Albany Law School, Series 2007A, 5.000%, 7/01/31
110 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 86,009
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 AA 1,891,280
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- 78,704
Revenue Bonds, St. Bonaventure University, Series 2006,
5.000%, 5/01/23
1,125 Dormitory Authority of the State of New York, General Revenue 7/17 at 100.00 BBB+ 959,479
Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/41 -
RAAI Insured
2,000 Dormitory Authority of the State of New York, Insured Revenue 1/09 at 101.00 AA 1,979,420
Bonds, New York Medical College, Series 1998,
5.000%, 7/01/21 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AA- 1,042,120
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 462,671
Bonds, State University Dormitory Facilities, Series 2004A,
5.000%, 7/01/29 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AA 967,190
Canisius College, Series 2000, 5.250%, 7/01/30 - MBIA Insured
1,265 Dormitory Authority of the State of New York, Third General 1/09 at 102.00 AA- 1,265,316
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 A3 98,144
Civic Facility Revenue Bonds, Bard College Project,
Series 2007-A2, 4.500%, 8/01/36
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 265 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A $ 241,966
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/35
2,190 Monroe County Industrial Development Agency, New York, 6/11 at 102.00 BBB+ 1,898,445
Civic Facility Revenue Bonds, St. John Fisher College,
Series 2001, 5.250%, 6/01/26 - RAAI Insured
245 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 219,150
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
1,100 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 1,085,480
Civic 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, 1/17 at 100.00 AA 931,067
PILOT Revenue Bonds, Queens Baseball Stadium Project,
Series 2006, 4.750%, 1/01/42 - AMBAC Insured
1,545 New York City Industrial Development Authority, New York, 9/16 at 100.00 BBB- 1,213,319
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 144,927
Revenue Bonds, New York Chiropractic College, Series 2007,
5.000%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
16,065 Total Education and Civic Organizations 14,779,060
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
500 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 420,385
Headquarters Revenue Bonds, Series 2005, 5.250%, 10/01/35
1,305 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 1,134,110
Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
1,805 Total Financials 1,554,495
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.5% (16.3% OF TOTAL INVESTMENTS)
3,000 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AA 2,961,209
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
2,505 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AA 2,528,622
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 2/09 at 101.00 AA 1,481,520
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 N/R 1,520,710
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
1,700 Dormitory Authority of the State of New York, FHA-Insured 8/15 at 100.00 AA 1,513,340
Revenue Bonds, St. Lukes Roosevelt Hospital, Series 2005,
4.900%, 8/15/31
500 Dormitory Authority of the State of New York, Insured Revenue 1/09 at 101.00 A3 505,770
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 424,670
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 2,136,654
Memorial Sloan Kettering Cancer Center, Series 2006-1,
5.000%, 7/01/35 (UB)
1,250 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 100.00 A3 1,150,175
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 547,035
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 BB 1,324,710
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 444,825
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 246,390
Civic Facility Revenue Bonds, Nicholas H. Noyes Hospital,
Series 2005, 6.000%, 7/01/30
45
NXK
Nuveen New York Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
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- $ 238,722
250 5.500%, 2/01/32 No Opt. Call BBB- 215,080
475 Nassau County Industrial Development Agency, New York, No Opt. Call A3 489,245
Revenue Refunding Bonds, North Shore Health System
Obligated Group, Series 2001B, 5.875%, 11/01/11
850 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 A+ 850,536
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 AA 477,755
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/22 - AMBAC Insured
485 New York City Industrial Development Agency, New York, 7/12 at 100.00 B2 428,197
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2001B, 6.375%, 7/01/31
490 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 436,027
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
Suffolk County Industrial Development Agency, New York,
Revenue Bonds, Huntington Hospital, Series 2002C:
425 6.000%, 11/01/22 11/12 at 100.00 Baa1 422,977
610 5.875%, 11/01/32 11/12 at 100.00 Baa1 568,776
------------------------------------------------------------------------------------------------------------------------------------
22,045 Total Health Care 20,912,945
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 New York City Housing Development Corporation, New York, 11/11 at 100.00 AA 882,650
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 420,461
225 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 200,765
500 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 487,850
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 247,680
Revenue, Series 2007A, 5.250%, 11/01/38
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,470 Total Housing/Multifamily 2,239,406
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.0% (2.0% OF TOTAL INVESTMENTS)
335 New York State Mortgage Agency, Homeowner Mortgage 4/17 at 100.00 Aa1 278,998
Revenue 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 770,327
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 300,367
Bonds, Series 148, 2007, 5.200%, 10/01/32
(Alternative Minimum Tax)
1,235 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100.00 Aa1 1,249,388
Bonds, Series 82, 5.650%, 4/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,870 Total Housing/Single Family 2,599,080
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.1% (4.0% OF TOTAL INVESTMENTS)
450 Dormitory Authority of the State of New York, GNMA Collateralized 2/17 at 103.00 AA 423,842
Revenue Bonds, Cabrini of Westchester Project, Series 2006,
5.200%, 2/15/41
2,150 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 AA 2,073,718
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 Aa2 229,809
Supported Debt, Ozanam Hall of Queens Nursing Home
Revenue Bonds, Series 2006, 5.000%, 11/01/31
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
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 $ 37,787
175 5.000%, 7/01/35 - ACA Insured 7/15 at 100.00 N/R 121,746
635 East Rochester Housing Authority, New York, Senior Living 8/16 at 101.00 N/R 500,513
Revenue Bonds, Woodland Village Project, Series 2006,
5.500%, 8/01/33
525 New York City Industrial Development Agency, New York, 7/11 at 101.00 N/R 532,261
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:
355 5.500%, 7/01/18 7/16 at 101.00 N/R 321,786
440 5.800%, 7/01/23 7/16 at 101.00 N/R 391,851
430 Suffolk County Industrial Development Agency, New York, 7/16 at 100.00 N/R 389,769
Civic Facility Revenue Bonds, Special Needs Facilities
Pooled Program, Series 2008-B1, 5.500%, 7/01/18
170 Yonkers Industrial Development Agency, New York, 7/16 at 101.00 N/R 151,397
Civic Facilities Revenue Bonds, Special Needs Facilities
Pooled Program Bonds, Series 2008-C1, 5.800%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
5,635 Total Long-Term Care 5,174,479
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2% (0.2% OF TOTAL INVESTMENTS)
230 Jefferson County Industrial Development Agency, New York, 12/13 at 100.00 BBB 191,429
Solid Waste Disposal Revenue Bonds, International Paper
Company Project, Series 2003A, 5.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.0% (12.0% OF TOTAL INVESTMENTS)
1,775 Bath Central School District, Steuben County, New York, 6/12 at 100.00 A 1,699,385
General Obligation Bonds, Series 2002, 4.000%, 6/15/18 -
FGIC Insured
3,605 New York City, New York, General Obligation Bonds, 2/09 at 101.00 AA 3,608,780
Fiscal Series 1998H, 5.375%, 8/01/27 - MBIA Insured
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 Aaa 782,258
Series 2004C-1, 5.250%, 8/15/16 (UB)
2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AA 1,977,880
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 2,456,402
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 4,352,044
Series 2007D-1, 5.125%, 12/01/25 (UB)
United Nations Development Corporation, New York, Senior Lien
Revenue Bonds, Series 2004A:
250 5.250%, 7/01/23 11/08 at 100.00 A3 239,335
250 5.250%, 7/01/24 11/08 at 100.00 A3 238,133
------------------------------------------------------------------------------------------------------------------------------------
15,770 Total Tax Obligation/General 15,354,217
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.5% (18.2% OF TOTAL INVESTMENTS)
1,000 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 1,013,750
Series 2003A, 5.250%, 11/01/21
125 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 126,026
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
1,750 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA 1,742,073
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 459,911
Revenue Bonds, Series 2003, 5.500%, 1/01/34
47
NXK
Nuveen New York Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS September 30, 2008
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 2008:
$ 1,140 5.000%, 10/15/25 - MBIA Insured (UB) 10/14 at 100.00 AAA $ 1,105,640
835 5.000%, 10/15/26 - MBIA Insured (UB) 10/14 at 100.00 AAA 806,109
750 5.000%, 10/15/29 - AMBAC Insured (UB) 10/14 at 100.00 AAA 719,813
1,300 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 1,218,802
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 993,870
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 1,394,242
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 993,210
Future Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
1,000 New York State Environmental Facilities Corporation, Infrastructure 3/14 at 100.00 AA- 995,030
Revenue Bonds, Series 2003A, 5.000%, 3/15/21
2,020 New York State Environmental Facilities Corporation, State 12/17 at 100.00 AAA 1,947,381
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 791,020
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 AA 1,059,172
1,125 5.250%, 5/15/24 - AMBAC Insured 5/11 at 100.00 AA 1,107,270
575 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AA 693,807
Fund Bonds, Series 2005B, Trust 2800, 5.162%, 4/01/20 -
AMBAC Insured (IF)
1,125 New York State Thruway Authority, Highway and Bridge Trust 10/17 at 100.00 AA 1,067,715
Fund Bonds, Series 2007, 5.000%, 4/01/27
2,100 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA 2,073,645
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- 1,006,870
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
2,250 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 BBB 2,124,090
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
24,025 Total Tax Obligation/Limited 23,439,446
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.7% (11.1% OF TOTAL INVESTMENTS)
895 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 900,003
Series 2001A, 5.625%, 7/15/20
2,500 Metropolitan Transportation Authority, New York, Transportation 11/17 at 100.00 A 2,286,275
Revenue Bonds, Series 2007B, 5.000%, 11/15/33
460 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 A 432,234
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- 1,046,138
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, 12/08 at 102.00 BB+ 30,445
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- 914,530
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28
(Alternative Minimum Tax)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
New York City Industrial Development Authority, New York, JetBlue,:
$ 50 5.000%, 5/15/20 (Alternative Minimum Tax) 5/12 at 100.00 B- $ 34,091
250 5.125%, 5/15/30 (Alternative Minimum Tax) 5/12 at 100.00 B- 148,018
300 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 286,740
Series 2008, 5.000%, 1/01/30 - FSA Insured (UB)
3,400 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AA 3,079,855
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Fortieth Series 2005:
1,000 5.000%, 12/01/28 - SYNCORA GTY Insured 6/15 at 101.00 AA- 955,870
280 5.000%, 12/01/31 - SYNCORA GTY Insured 6/15 at 101.00 AA- 264,214
310 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 254,070
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 0.036%, 8/15/32 - FSA Insured (IF)
2,500 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 2,503,550
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/21
780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AA 813,212
Lien General Purpose Revenue Refunding Bonds, Series 2002E,
5.500%, 11/15/20 - MBIA Insured
375 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/18 at 100.00 AA- 279,255
Lien General Purpose Revenue Refunding Bonds, Tender
Option Bond Trust 1184, 0.880%, 11/15/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
15,400 Total Transportation 14,228,500
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.7% (9.8% OF TOTAL INVESTMENTS) (4)
2,750 Albany Industrial Development Agency, New York, Revenue Bonds, 7/11 at 101.00 Aa3 (4) 2,959,027
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, 7/11 at 101.00 BBB+ (4) 1,191,212
Series 2001A, 5.625%, 7/15/20 (Pre-refunded 7/15/11)
1,905 Dormitory Authority of the State of New York, Service Contract 4/12 at 100.00 AA- (4) 2,050,752
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 3,364,640
Contract Revenue Bonds, Correctional Facilities, Series 2000C,
5.125%, 1/01/21 (Pre-refunded 1/01/11) - FSA Insured
2,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 2,082,880
Series 1999-1, 6.250%, 7/15/27 (Mandatory put 7/15/19)
(Pre-refunded 7/15/09)
900 Utica Industrial Development Agency, New York, Revenue 6/09 at 101.00 N/R (4) 935,037
Bonds, Utica College, Series 2004A, 6.875%, 12/01/34
(Pre-refunded 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
11,865 Total U.S. Guaranteed 12,583,548
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.1% (8.0% 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- 1,614,864
1,700 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A- 1,607,860
250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 233,125
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- 797,940
Keyspan Glenwood Energy Project, Series 2003,
5.250%, 6/01/27 (Alternative Minimum Tax)
450 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa2 437,081
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 1,868,620
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 1,942,460
Bonds, Series 2000A, 5.250%, 11/15/40
49
NXK
Nuveen New York Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS September 30, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
Suffolk County Industrial Development Agency, New York, Revenue
Bonds, Nissequogue Cogeneration Partners Facility, Series 1998:
$ 1,250 5.300%, 1/01/13 (Alternative Minimum Tax) 1/09 at 101.00 N/R $ 1,158,775
750 5.500%, 1/01/23 (Alternative Minimum Tax) 1/09 at 101.00 N/R 625,815
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Utilities 10,286,540
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AAA 1,049,690
Water and Sewerage System Revenue Bonds, Fiscal
Series 2001D, 5.500%, 6/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 134,935 Total Investments (cost $136,619,568) - 150.5% 128,448,462
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.4)% (11,420,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 2,411,111
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (40.0)% (5) (34,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 85,339,573
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and SYNCORAas of September 30, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 26.5%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
50
Statement of
ASSETS & LIABILITIES
September 30, 2008
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $144,363,126, $337,115,349,
$196,657,039 and $136,619,568, respectively) $138,185,044 $321,824,565 $185,517,843 $128,448,462
Cash 2,233,856 1,261,688 1,296,160 766,768
Receivables:
Interest 2,126,536 5,071,010 2,980,583 2,051,023
Investments sold -- 1,310,808 -- --
Other assets 3,210 408,275 147,299 107,932
------------------------------------------------------------------------------------------------------------------------------------
Total assets 142,548,646 329,876,346 189,941,885 131,374,185
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 1,575,000 33,150,000 16,325,000 11,420,000
Payables:
Investments purchased -- 987,141 -- --
Variation margin on futures contracts 114,219 -- -- --
Common share dividends 450,129 716,432 511,596 354,370
Preferred share dividends N/A 117,853 33,032 70,429
Accrued expenses:
Management fees 66,009 159,963 87,409 50,355
Other 58,406 119,144 51,581 39,458
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,263,763 35,250,533 17,008,618 11,934,612
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value N/A 87,650,000 51,400,000 34,100,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $140,284,883 $206,975,813 $121,533,267 $ 85,339,573
====================================================================================================================================
Common shares outstanding 15,120,364 15,067,371 9,265,330 6,495,717
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 9.28 $ 13.74 $ 13.12 $ 13.14
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 151,204 $ 150,674 $ 92,653 $ 64,957
Paid-in surplus 144,256,690 219,590,838 131,648,450 92,258,310
Undistributed (Over-distribution of) net investment income 569,746 (128,758) (163,537) (67,993)
Accumulated net realized gain (loss) from investments and
derivative transactions 1,498,536 2,653,843 1,094,897 1,255,405
Net unrealized appreciation (depreciation) of investments and
derivative transactions (6,191,293) (15,290,784) (11,139,196) (8,171,106)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $140,284,883 $206,975,813 $121,533,267 $ 85,339,573
====================================================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 Unlimited Unlimited
Preferred N/A 1,000,000 Unlimited Unlimited
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
51
Statement of
OPERATIONS
Year Ended September 30, 2008
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 7,576,612 $ 18,057,987 $ 10,558,122 $ 7,178,669
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 808,738 2,183,747 1,279,440 888,725
Preferred shares - auction fees N/A 303,026 169,013 114,504
Preferred shares - dividend disbursing agent fees N/A 40,000 10,000 10,000
Shareholders' servicing agent fees and expenses 34,719 34,016 3,692 1,592
Interest expense on floating rate obligations 44,826 350,661 179,168 127,146
Custodian's fees and expenses 69,068 171,825 101,800 78,554
Directors'/Trustees' fees and expenses 3,539 8,739 5,023 3,537
Professional fees 15,689 30,633 17,982 15,204
Shareholders' reports - printing and mailing expenses 37,374 47,569 29,101 21,121
Stock exchange listing fees 9,331 9,465 9,410 827
Investor relations expense 18,126 35,790 20,587 14,447
Other expenses 8,581 36,896 16,596 15,011
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,049,991 3,252,367 1,841,812 1,290,668
Custodian fee credit (11,512) (24,188) (15,918) (8,523)
Expense reimbursement -- -- (186,750) (245,713)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,038,479 3,228,179 1,639,144 1,036,432
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,538,133 14,829,808 8,918,978 6,142,237
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 637,972 1,501,901 329,463 681,579
Forward swaps 643,914 1,157,352 790,334 568,424
Futures 205,254 -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (11,120,133) (27,654,000) (17,070,552) (11,597,726)
Forward swaps (323,848) (657,782) (423,860) (284,292)
Futures (13,211) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (9,970,052) (25,652,529) (16,374,615) (10,632,015)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A (3,995,402) (2,186,301) (1,522,297)
From accumulated net realized gains N/A (158,639) (197,285) (81,611)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Preferred shareholders N/A (4,154,041) (2,383,586) (1,603,908)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (3,431,919) $(14,976,762) $ (9,839,223) $ (6,093,686)
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
52
Statement of
CHANGES in NET ASSETS
NEW YORK VALUE (NNY) NEW YORK PERFORMANCE PLUS (NNP)
----------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/08 9/30/07 9/30/08 9/30/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,538,133 $ 6,556,706 $ 14,829,808 $ 14,960,498
Net realized gain (loss) from:
Investments 637,972 231,013 1,501,901 445,302
Forward swaps 643,914 162,384 1,157,352 188,601
Futures 205,254 -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (11,120,133) (2,823,183) (27,654,000) (6,994,469)
Forward swaps (323,848) 62,890 (657,782) 200,123
Futures (13,211) -- -- --
Distributions to Preferred Shareholders:
From net investment income N/A N/A (3,995,402) (4,072,186)
From accumulated net realized gains N/A N/A (158,639) (206,467)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (3,431,919) 4,189,810 (14,976,762) 4,521,402
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,441,276) (6,441,277) (10,862,069) (11,569,947)
From accumulated net realized gains (163,300) -- (442,981) (874,665)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (6,604,576) (6,441,277) (11,305,050) (12,444,612)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- -- 562,712
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from capital share transactions -- -- -- 562,712
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (10,036,495) (2,251,467) (26,281,812) (7,360,498)
Net assets applicable to Common
shares at the beginning of year 150,321,378 152,572,845 233,257,625 240,618,123
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $140,284,883 $150,321,378 $206,975,813 $233,257,625
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 569,746 $ 485,060 $ (128,758) $ (86,846)
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
53
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
9/30/08 9/30/07 9/30/08 9/30/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,918,978 $ 8,954,429 $ 6,142,237 $ 6,148,652
Net realized gain (loss) from:
Investments 329,463 645,062 681,579 250,099
Forward swaps 790,334 138,518 568,424 92,578
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (17,070,552) (4,543,056) (11,597,726) (2,608,004)
Forward swaps (423,860) 129,650 (284,292) 79,076
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (2,186,301) (2,217,934) (1,522,297) (1,528,636)
From accumulated net realized gains (197,285) (199,414) (81,611) (131,824)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (9,839,223) 2,907,255 (6,093,686) 2,301,941
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,499,628) (7,081,173) (4,449,564) (4,916,434)
From accumulated net realized gains (631,896) (822,944) (261,128) (545,812)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (7,131,524) (7,904,117) (4,710,692) (5,462,246)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- 353,520 -- 237,308
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from capital share transactions -- 353,520 -- 237,308
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (16,970,747) (4,643,342) (10,804,378) (2,922,997)
Net assets applicable to Common
shares at the beginning of year 138,504,014 143,147,356 96,143,951 99,066,948
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $121,533,267 $138,504,014 $85,339,573 $96,143,951
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ (163,537) $ (392,427) $ (67,993) $ (233,887)
====================================================================================================================================
See accompanying notes to financial statements.
54
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 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 Dividend
Advantage 2 (NXK) are traded on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end
management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
New York state income taxes by investing primarily in a diversified portfolio of
municipal obligations issued by state and local government authorities within
the state of New York or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. Futures
contracts are valued using the closing settlement price, or, in the absence of
such a price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for an investment or derivative instrument, each Fund
may use market quotes provided by major broker/dealers in such investments. If
it is determined that the market price for an investment or derivative
instrument is unavailable or inappropriate, the Board of Directors/Trustees of
the Funds, or its designee, may establish fair value in accordance with
procedures established in good faith by the Board of Directors/Trustees.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At September 30, 2008, New
York Performance Plus (NNP) had outstanding when-issued/delayed delivery
purchase commitments of $987,141. 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.
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.
55
Notes to
FINANCIAL STATEMENTS (continued)
Effective March 31, 2008, the Funds adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally, the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the fiscal year ended September 30,
2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
New York Value (NNY) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of September 30, 2008, 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 TH -- -- --
Series F 403 2,056 --
--------------------------------------------------------------------------------
Total 3,506 2,056 1,364
================================================================================
56
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 preestablished terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's
approval of plans to use tender option bonds (TOBs), also known as "floaters" or
floating rate obligations, to refinance a portion of the municipal funds'
outstanding auction rate preferred securities (ARPS), whose auctions have been
failing for several months. The plan included an initial phase of approximately
$1 billion in forty-one funds. During the fiscal year ended September 30, 2008,
New York Performance Plus (NNP), New York Dividend Advantage (NAN) and New York
Dividend Advantage 2 (NXK) redeemed $36,650,000, $17,600,000 and $12,900,000 of
their outstanding Preferred shares, respectively, at liquidation value, using
the proceeds from the issuance of TOBs.
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 an "Inverse floating rate investment". An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as an
"Underlying bond of an inverse floating rate trust", with the Fund accounting
for the short-term floating rate certificates issued by the trust as "Floating
rate obligations" on the Statement of Assets and Liabilities. In addition, the
Fund reflects in Investment Income the entire earnings of the underlying bond
and the related interest paid to the holders of the short-term floating rate
certificates is included as a component of "Interest expense on floating rate
obligations" on the Statement of Operations.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") with a
broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain
circumstances, for the difference between the liquidation value of the
fixed-rate bond held by the trust and the liquidation value of the floating rate
certificates, as well as any shortfalls in interest cash flows. Under these
agreements, a Fund's potential exposure to losses related to or on inverse
floaters increases beyond the value of the investments included on the Fund's
Statement of Assets and Liabilities as the Fund may potentially be liable to
fulfill all amounts owed to holders of the floating rate certificates.
During the fiscal year ended September 30, 2008, each Fund invested in
externally deposited inverse floaters and/or self-deposited inverse floaters.
57
Notes to
FINANCIAL STATEMENTS (continued)
At September 30, 2008, the Funds were not invested in any recourse trusts and/or
credit recovery swaps.
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Maximum exposure $ -- $ -- $-- $ --
================================================================================
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, 2008, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
-------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $1,727,766 $12,080,533 $6,184,235 $4,445,287
Average annual interest rate and fees 2.59% 2.90% 2.90% 2.86%
====================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. All of the Funds invested
in forward interest rate swap transactions during the fiscal year ended
September 30, 2008.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or
58
expired, a Fund records a realized gain or loss equal to the difference between
the value of the contract on the closing date and value of the contract when
originally entered into. Cash held by the broker to cover initial margin
requirements on open futures contracts, if any, is recognized on the Statement
of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities
reflects a receivable or payable for the variation margin, when applicable. New
York Value (NNY) was the only Fund to invest in futures contracts during the
fiscal year ended September 30, 2008.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Common Shares
On July 30, 2008, the Funds' Board of Directors/Trustees approved a program
under which each Fund may repurchase an aggregate of up to approximately 10% of
its outstanding Common shares. The Funds did not repurchase any of their Common
shares during the fiscal year ended September 30, 2008.
Transactions in Common shares were as follows:
NEW YORK
NEW YORK VALUE (NNY) PERFORMANCE PLUS (NNP)
--------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/08 9/30/07 9/30/08 9/30/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- -- 35,433
==================================================================================================================
NEW YORK NEW YORK
DIVIDEND DIVIDEND
ADVANTAGE (NAN) ADVANTAGE 2 (NXK)
--------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/08 9/30/07 9/30/08 9/30/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- 22,835 -- 15,365
==================================================================================================================
59
Notes to
FINANCIAL STATEMENTS (continued)
Preferred Shares
New York Value (NNY) is not authorized to issue Preferred shares. Transactions
in Preferred shares were as follows:
NEW YORK PERFORMANCE PLUS (NNP) NEW YORK DIVIDEND ADVANTAGE (NAN)
------------------------------------------- ---------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/08 9/30/07 9/30/08 9/30/07
-------------------------------------------------------------------------------------------------------------------------
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 TH -- -- -- -- -- -- -- --
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
9/30/08 9/30//07
-------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- -- $--
Series T -- -- -- --
Series W 516 12,900,000 -- --
Series TH -- -- -- --
Series F -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
Total 516 $12,900,000 -- $--
=========================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended September 30, 2008,
were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------
Purchases $22,687,841 $56,850,289 $36,087,061 $23,890,124
Sales and maturities 26,815,921 59,971,393 33,553,295 24,253,480
==================================================================================================================
60
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At September 30, 2008, the cost of investments was as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------
Cost of investments $142,488,023 $303,952,578 $180,362,767 $125,178,080
==================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2008, were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 1,803,506 $ 4,138,419 $ 1,677,304 $ 771,289
Depreciation (7,681,485) (19,059,331) (12,710,816) (8,819,954)
------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $(5,877,979) $(14,920,912) $(11,033,512) $(8,048,665)
==================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at September 30, 2008, the Funds' tax year end,
were as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $797,986 $ 460,790 $315,952 $313,543
Undistributed net ordinary income ** 544,327 1,144,666 651,694 488,761
Undistributed net long-term capital gains 949,431 1,541,514 437,714 709,841
==================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on September 2, 2008, paid on October 1, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended
September 30, 2008 and September 30, 2007, was designated for purposes of the
dividends paid deduction as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
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
==================================================================================================================
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
2007 (NNY) (NNP) (NAN) (NXK)
------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,441,277 $15,691,798 $9,335,293 $6,464,107
Distributions from net ordinary income ** -- 5,811 33 8,211
Distributions from net long-term capital gains -- 1,081,132 1,022,358 677,636
==================================================================================================================
** 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, 2008, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended September 30, 2008.
As of September 30, 2008 the Funds had no capital loss carryforwards or deferred
post-October losses.
61
Notes to
FINANCIAL STATEMENTS (continued)
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components -- a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen, 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 each Fund (excluding New York
Value (NNY)) is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS NEW YORK PERFORMANCE PLUS (NNP)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS NEW YORK DIVIDEND ADVANTAGE (NAN)
(INCLUDING NET ASSETS NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of September 30, 2008, the complex-level fee rate was .1947%.
62
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all
Nuveen-sponsored funds in the United States, with such daily net assets to
include assets attributable to preferred stock issued by or borrowings by
such funds but to exclude assets attributable to investments in other
Nuveen-sponsored funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of New York Dividend Advantage's (NAN) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New York Dividend Advantage (NAN) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of New York Dividend Advantage 2's (NXK) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
63
Notes to
FINANCIAL STATEMENTS (continued)
The Adviser has not agreed to reimburse New York Dividend Advantage 2 (NXK) for
any portion of its fees and expenses beyond March 31, 2011.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement on Financial Accounting
Standards No. 157 (SFAS No. 157)
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of September 30, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 161 (SFAS No. 161)
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of September 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on November 3, 2008, to shareholders of record
on October 15, 2008, as follows:
NEW YORK NEW YORK NEW YORK
NEW YORK PERFORMANCE DIVIDEND DIVIDEND
VALUE PLUS ADVANTAGE ADVANTAGE 2
(NNY) (NNP) (NAN) (NXK)
--------------------------------------------------------------------------------
Dividend per share $.0355 $.0580 $.0590 $.0580
================================================================================
64
Financial
HIGHLIGHTS
65
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===================================================================================================================================
NEW YORK VALUE (NNY)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 $ 9.94 $ .43 $ (.65) N/A N/A $ (.22) $ (.43) $(.01) $ (.44)
2007 10.09 .43 (.15) N/A N/A .28 (.43) -- (.43)
2006 10.07 .44 .01 N/A N/A .45 (.43) -- (.43)
2005 10.01 .45 .04 N/A N/A .49 (.43) -- (.43)
2004 9.95 .45 .04 N/A N/A .49 (.43) -- (.43)
NEW YORK PERFORMANCE PLUS (NNP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 15.48 .98 (1.69) (.27) (.01) (.99) (.72) (.03) (.75)
2007 16.01 .99 (.41) (.27) (.01) .30 (.77) (.06) (.83)
2006 16.44 1.01 --*** (.20) (.05) .76 (.89) (.30) (1.19)
2005 16.50 1.05 .10 (.14) -- 1.01 (.99) (.08) (1.07)
2004 16.57 1.08 .18 (.06) (.01) 1.19 (1.01) (.25) (1.26)
===================================================================================================================================
Total Returns
---------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
===================================================================
NEW YORK VALUE (NNY)
-------------------------------------------------------------------
Year Ended 9/30:
2008 $ 9.28 $ 9.01 (.62)% (2.38)%
2007 9.94 9.50 4.40 2.79
2006 10.09 9.51 7.50 4.56
2005 10.07 9.26 5.88 4.95
2004 10.01 9.15 5.29 5.04
NEW YORK PERFORMANCE PLUS (NNP)
-------------------------------------------------------------------
Year Ended 9/30:
2008 13.74 11.16 (17.61) (6.71)
2007 15.48 14.30 (5.02) 1.90
2006 16.01 15.88 6.69 4.91
2005 16.44 16.01 9.37 6.29
2004 16.50 15.66 8.19 7.55
===================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund**
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW YORK VALUE (NNY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 $140,285 .71% .68% 4.39% .70% .67% 4.40% 16%
2007 150,321 .69 .65 4.32 .68 .63 4.34 15
2006 152,573 .66 .66 4.35 .64 .64 4.37 13
2005 152,236 .66 .66 4.44 .66 .66 4.45 18
2004 151,314 .72 .72 4.52 .72 .72 4.52 9
NEW YORK PERFORMANCE PLUS (NNP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 206,976 1.42 1.27 6.48 1.41 1.26 6.49 16
2007 233,258 1.29 1.22 6.33 1.28 1.21 6.34 14
2006 240,618 1.22 1.22 6.33 1.20 1.20 6.35 13
2005 246,255 1.20 1.20 6.36 1.20 1.20 6.37 16
2004 247,139 1.21 1.21 6.58 1.21 1.21 6.59 5
====================================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================
NEW YORK VALUE (NNY)
-----------------------------------------------------
Year Ended 9/30:
2008 N/A N/A N/A
2007 N/A N/A N/A
2006 N/A N/A N/A
2005 N/A N/A N/A
2004 N/A N/A N/A
NEW YORK PERFORMANCE PLUS (NNP)
-----------------------------------------------------
Year Ended 9/30:
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
2004 124,300 25,000 74,706
=====================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, expense reimbursement and legal fee refund,
where applicable.
*** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
N/A Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
66-67 spread
Financial
HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===================================================================================================================================
NEW YORK DIVIDEND ADVANTAGE (NAN)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 $14.95 $ .96 $(1.76) $(.24) $(.02) $(1.06) $(.70) $(.07) $ (.77)
2007 15.49 .97 (.39) (.24) (.02) .32 (.77) (.09) (.86)
2006 15.83 .98 --*** (.21) (.03) .74 (.89) (.19) (1.08)
2005 15.83 1.03 .09 (.13) -- .99 (.99) -- (.99)
2004 15.66 1.06 .16 (.06) -- 1.16 (.99) -- (.99)
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 14.80 .95 (1.64) (.23) (.01) (.93) (.69) (.04) (.73)
2007 15.29 .95 (.34) (.24) (.02) .35 (.76) (.08) (.84)
2006 15.57 .97 .05 (.20) (.03) .79 (.87) (.20) (1.07)
2005 15.60 1.01 .10 (.13) -- .98 (.95) (.06) (1.01)
2004 15.44 1.02 .20 (.06) -- 1.16 (.95) (.05) (1.00)
===================================================================================================================================
Total Returns
---------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
====================================================================
NEW YORK DIVIDEND ADVANTAGE (NAN)
--------------------------------------------------------------------
Year Ended 9/30:
2008 $13.12 $11.36 (16.02)% (7.45)%
2007 14.95 14.33 (2.86) 2.07
2006 15.49 15.60 3.49 4.91
2005 15.83 16.11 14.24 6.38
2004 15.83 15.01 6.13 7.68
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
--------------------------------------------------------------------
Year Ended 9/30:
2008 13.14 11.15 (16.79) (6.63)
2007 14.80 14.16 (3.20) 2.35
2006 15.29 15.47 7.96 5.37
2005 15.57 15.34 10.61 6.45
2004 15.60 14.82 9.02 7.80
====================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement/Refund After Credit/Reimbursement/Refund**
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW YORK DIVIDEND ADVANTAGE (NAN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 $121,533 1.36% 1.23% 6.45% 1.21% 1.08% 6.60% 17%
2007 138,504 1.29 1.19 6.15 1.06 .96 6.37 18
2006 143,147 1.18 1.18 6.11 .88 .88 6.41 15
2005 145,701 1.16 1.16 6.13 .80 .80 6.50 20
2004 145,592 1.17 1.17 6.38 .74 .74 6.81 8
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2008 85,340 1.37 1.23 6.25 1.10 .96 6.52 17
2007 96,144 1.32 1.22 5.98 .98 .88 6.32 17
2006 99,067 1.19 1.19 5.96 .76 .76 6.38 14
2005 100,606 1.18 1.18 6.01 .73 .73 6.46 19
2004 100,706 1.17 1.17 6.19 .72 .72 6.64 7
====================================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================
NEW YORK DIVIDEND ADVANTAGE (NAN)
-----------------------------------------------------
Year Ended 9/30:
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
2004 69,000 25,000 77,751
NEW YORK DIVIDEND ADVANTAGE 2 (NXK)
-----------------------------------------------------
Year Ended 9/30:
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
2004 47,000 25,000 78,567
=====================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, expense reimbursement and legal fee refund
where applicable.
*** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
68-69 spread
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.
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(1) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
INDEPENDENT BOARD MEMBERS:
[] ROBERT P. BREMNER Private Investor and Management Consultant.
8/22/40 Chairman of
333 W. Wacker Drive the Board 1997 186
Chicago, IL 60606 and Board member
[] JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive Board member 1999 186 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire Group, a publicly held company; Member
of the Board of Regents for the State of
Iowa University System; Director, Gazette
Companies; Life Trustee of Coe College and
Iowa College Foundation; Member of the
Advisory Council of the Department of
Finance in the Tippie College of Business,
University of Iowa; formerly, Director,
Alliant Energy; formerly, Director, Federal
Reserve Bank of Chicago; formerly, President
and Chief Operating Officer, SCI Financial
Group, Inc., a regional financial services
firm.
[] WILLIAM C. HUNTER Dean, Tippie College of Business, University
3/6/48 of Iowa (since July 2006); formerly, Dean
333 W. Wacker Drive Board member 2004 186 and Distinguished Professor of Finance,
Chicago, IL 60606 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 (since 1997), Credit
Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation;
Director (since 2005), Beta Gamma Sigma
International Honor Society; Director, SS&C
Technologies, Inc. (May 2005-October 2005).
[] DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; Retired (since 2004) as
333 W. Wacker Drive Board member 2005 186 Chairman, JPMorgan Fleming Asset Management,
Chicago, IL 60606 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.
[] WILLIAM J. SCHNEIDER Chairman, formerly, Senior Partner and Chief
9/24/44 Operating Officer (retired, 2004) of
333 W. Wacker Drive Board member 1997 186 Miller-Valentine Partners Ltd., a real
Chicago, IL 60606 estate investment company; Director, Dayton
Development Coalition; formerly, member,
Business Advisory Council, Cleveland Federal
Reserve Bank.
70
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(1) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
INDEPENDENT BOARD MEMBERS:
[] JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board member 1997 186 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
[] CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Commissioner, New York State
333 W. Wacker Drive Board member 2007 186 Commission on Public Authority Reform (since
Chicago, IL 60606 2005); formerly, Chair New York Racing
Association Oversight Board (2005-2007);
formerly, Director, New York State Division
of the Budget (2000-2004), Chair, Public
Authorities Control Board (2000-2004) and
Director, Local Government Assistance
Corporation (2000-2004).
[] TERENCE J. TOTH
9/29/59 Director, Legal & General Investment
333 W. Wacker Drive Board Member 2008 186 Management (since 2008); Private Investor
Chicago, IL 60606 (since 2007); CEO and President, Northern
Trust Investments (2004-2007); Executive
Vice President, Quantitative Management &
Securities Lending (2007-2004); prior
thereto, various positions with Northern
Trust Company (since 1994); Member: Goodman
Theatre Board (Since 2004); Chicago
Fellowship Boards (since 2005), University
of Illinois Leadership Council Board (since
2007) and Catalyst Schools of Chicago Board
(since 2008); formerly Member: Northern
Trust Mutual Funds Board (2005-2007),
Northern Trust Japan Board (2004-2007),
Northern Trust Securities Inc. Board
(2003-2007) and Northern Trust Hong Kong
Board (1997-2004).
INTERESTED BOARD MEMBER:
[] JOHN P. AMBOIAN(2)(3) Chief Executive Officer (since July 2007)
6/14/61 and Director (since 1999) of Nuveen
333 W. Wacker Drive Board Member 2008 186 Investments, Inc.; Chief Executive Officer
Chicago, IL 60606 (since 2007) of Nuveen Asset Management,
Rittenhouse Asset Management, Nuveen
Investments Advisors, Inc. formerly,
President (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
71
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
OFFICERS OF THE FUNDS:
[] GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 186 Nuveen Investments, LLC; Managing Director
Chicago, IL 60606 Officer (since 2002), Associate General Counsel and
Assistant Secretary, of Nuveen Asset
Management; Vice President and Assistant
Secretary of NWQ Investment Management
Company, LLC. (since 2002), Nuveen
Investments Advisers Inc. (since 2002),
Symphony Asset Management LLC, and NWQ
Investment Management Company, LLC (since
2003), Tradewinds Global Investors, LLC, and
Santa Barbara Asset Management, LLC (since
2006), Nuveen HydePark Group LLC and Nuveen
Investment Solutions, Inc. (since 2007);
Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since 2003); Managing
Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen
Investments, Inc.; formerly, Managing
Director (2002-2004), General Counsel
(1998-2004) and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered
Financial Analyst.
[] WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice President,
333 W. Wacker Drive Vice President 2007 120 U.S. Structured Products of Nuveen
Chicago, IL 60606 Investments, LLC, (since 1999), prior
thereto, Managing Director of Structured
Investments.
[] CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 120 Investments, LLC.
Chicago, IL 60606
[] MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.
333 W. Wacker Drive and Assistant 2000 186
Chicago, IL 60606 Secretary
[] LORNA C. FERGUSON Managing Director (since 2004), formerly,
10/24/45 Vice President of Nuveen Investments, LLC;
333 W. Wacker Drive Vice President 1998 186 Managing Director (since 2005) of Nuveen
Chicago, IL 60606 Asset Management; Managing Director
(2004-2005), formerly, Vice President
(1998-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3)
[] 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 186 Investments, LLC; formerly, Vice President
Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen
Investments, Inc.; Certified Public
Accountant.
[] WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant
333 W. Wacker Drive Officer and 2003 186 Vice President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant
Secretary (since 2008) of Nuveen Asset
Management.
[] DAVID J. LAMB Vice President (since 2000) of Nuveen
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Vice President 2000 186 Accountant.
Chicago, IL 60606
72
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
OFFICERS OF THE FUNDS:
[] TINA M. LAZAR Vice President of Nuveen Investments, LLC
8/27/61 (since 1999).
333 W. Wacker Drive Vice President 2002 186
Chicago, IL 60606
[] LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 186 Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since
2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President
(since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of
Rittenhouse Asset Management, Inc.; Vice
President and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002); 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 LLC and Nuveen
Investment Solutions, Inc. (since 2007);
formerly, Vice President and Assistant
Secretary of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3)
[] KEVIN J. MCCARTHY Managing Director (since 2008), formerly,
3/26/66 Vice President Vice President (2007-2008), Nuveen
333 W. Wacker Drive and Secretary 2007 186 Investments, LLC; Vice President, and
Chicago, IL 60606 Assistant Secretary, Nuveen Asset
Management, Rittenhouse Asset Management,
Inc., Nuveen Investment Advisers Inc.,
Nuveen Investment Institutional Services
Group LLC, NWQ Investment Management
Company, LLC, Tradewinds Global Investors
LLC, NWQHoldings, 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).
[] JOHN V. MILLER Managing Director (since 2007), formerly,
4/10/67 Vice President 2007 186 Vice President (2002-2007) of Nuveen Asset
333 W. Wacker Drive Management and Nuveen Investments, LLC;
Chicago, IL 60606 Chartered Financial Analyst.
[] CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC
8/1/71 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 186 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Associate, Skadden,
Arps, Slate Meagher & Flom LLP (2002-2008).
[] JAMES F. RUANE Vice President, Nuveen Investments, LLC
7/3/62 Vice President (since 2007); prior thereto, Partner,
333 W. Wacker Drive and Assistant 2007 186 Deloitte & Touche USA LLP (2005-2007),
Chicago, IL 60606 Secretary formerly, senior tax manager (2002-2005);
Certified Public Accountant.
[] MARK L. WINGET Vice President, Nuveen Investments, LLC
12/21/68 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 186 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Counsel, Vedder Price
P.C. (1997-2007).
(1) For New York Municipal Value (NNY) Board Members serve three year terms.
The Board of Trustees for NNY is divided into three classes, Class I, Class
II, and Class III, with each being elected to serve until the third
succeeding annual shareholders' meeting subsequent to its election or
thereafter in each case when its respective successors are duly elected or
appointed. For 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.
73
Annual Investment
Management Agreement
APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 28-29, 2008 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be)(each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreement (each, an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 23, 2008 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, as described in further
detail below, the Independent Board Members reviewed a broad range of
information relating to the Funds and NAM, including absolute performance, fee
and expense information for the Funds as well as comparative performance, fee
and expense information for a comparable peer group of funds, the performance
information of recognized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly owned
subsidiaries), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line. With respect to personnel, the
74
Independent Board Members evaluated the background, experience and track record
of NAM's investment personnel. In this regard, the Independent Board Members
considered the additional investment in personnel to support Nuveen fund
advisory activities, including in operations, product management and marketing
as well as related fund support functions, including sales, executive, finance,
human resources and information technology. The Independent Board Members also
reviewed information regarding portfolio manager compensation arrangements to
evaluate NAM's ability to attract and retain high quality investment personnel.
In evaluating the services of NAM, the Independent Board Members also considered
NAM's ability to supervise the Funds' other service providers and given the
importance of compliance, NAM's compliance program. Among other things, the
Independent Board Members considered the report of the chief compliance officer
regarding the Funds' compliance policies and procedures.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members recognized Nuveen's continued
commitment to supporting the secondary market for the common shares of its
closed-end funds through a variety of programs designed to raise investor and
analyst awareness and understanding of closed-end funds. These efforts include
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds that utilize
leverage through the issuance of auction rate preferred securities ("ARPS"), the
Board has recognized the unprecedented market conditions in the auction rate
market industry with the failure of the auction process. The Independent Board
Members noted Nuveen's efforts and the resources and personnel employed to
analyze the situation, explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all of their
respective shareholders. The Independent Board Members further noted Nuveen's
commitment and efforts to keep investors and financial advisers informed as to
its progress in addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its website as well
as its refinancing activities. The Independent Board Members also noted Nuveen's
continued support for holders of preferred shares of its closed-end funds by,
among other things, seeking distribution for preferred shares with new market
participants, managing relations with remarketing agents and the broker
community, maintaining the leverage and risk management of leverage and
maintaining systems necessary to test compliance with rating agency criteria.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent third party (as described below). The Independent
Board Members also reviewed portfolio level performance (which does not reflect
fund level fees, expenses and leverage), as described in further detail below.
In evaluating the performance information, the Board considered whether the Fund
has operated within its investment objectives and parameters and the impact that
the investment mandates may have had on performance. In addition, in comparing a
Fund's performance with that of its Performance Peer Group, the
75
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
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 also recognized that certain funds lack comparable
peers in which case their performance is measured against a more general
municipal category for various states. The closed-end municipal funds that do
not have corresponding state-specific Performance Peer Groups are from states
other than New York, California, Florida, New Jersey, Michigan, and
Pennsylvania.
The Independent Board Members reviewed performance information including, among
other things, total return information compared with the Fund's Performance Peer
Group and recognized benchmarks for the one-, three- and five-year periods (as
applicable) ending December 31, 2007 and with the Performance Peer Group for the
quarter and same yearly periods ending March 31, 2008 (as applicable). The
Independent Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses (and leverage for
closed-end funds)) compared to recognized benchmarks for the one- three, and
five-year periods ending December 31, 2007 (as applicable). The analysis was
used to assess the efficacy of investment decisions against appropriate measures
of risk and total return, within specific market segments. This information
supplemented the Fund performance information provided to the Board at each of
its quarterly meetings. Based on their review, the Independent Board Members
determined that each Fund's investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees
(which take into account breakpoints), net management fees (which take
into account fee waivers or reimbursements) and total expense ratios
(before and after expense reimbursements and/or waivers) in absolute
terms as well as compared to the gross management fees, net management
fees (after waivers and/or reimbursements) and total expense ratios
(before and after waivers) of a comparable universe of unaffiliated
funds based on data provided by an independent data provider (the
"Peer Universe") and/or a more focused subset of funds therein (the
"Peer Group"). The Independent Board Members further reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance
analysis. In reviewing the comparisons of fee and expense information,
the Independent Board Members took into account that in certain
instances various factors such as the size of the Fund relative to
peers, the size and particular composition of the Peer Group, the
investment objectives of the peers, expense anomalies, and the timing
of information used may impact the comparative data, thereby limiting
the ability to make a meaningful comparison. The Independent Board
Members also considered, among other things, the differences in the
use of leverage and the differences in the use of insurance as well as
the states reflected in a respective Peer Group for the state
municipal funds (such as the use of a general "other states" category
for closed-end state funds (other than New York and California)). In
reviewing the fee schedule for a Fund, the Independent Board Members
also considered the fund-level and complex-wide breakpoint schedules
(described in further detail below) and any fee waivers and
reimbursements provided by Nuveen (applicable, in particular, for
certain closed-end funds launched since 1999). Based on their review
of the fee and expense information provided, the Independent Board
Members determined that each Fund's management fees and net total
expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
76
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding
the nature of services and fee rates offered by NAM to other clients.
Such other clients include NAM's municipal separately managed
accounts. In evaluating the comparisons of fees, the Independent Board
Members noted that the fee rates charged to the Funds and other
clients vary, among other things, because of the different services
involved and the additional regulatory and compliance requirements
associated with registered investment companies, such as the Funds.
Accordingly, the Independent Board Members considered the differences
in the product types, including, but not limited to, the services
provided, the structure and operations, product distribution and costs
thereof, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Independent Board Members
noted, in particular, that the range of services provided to the Funds
(as discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in the
products, particularly the extensive services provided to the Funds,
the Independent Board Members believe such facts justify the different
levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members
also considered the profitability of Nuveen for its advisory
activities (which incorporated Nuveen's wholly-owned affiliated
sub-advisers) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory
activities for the last two years and the allocation methodology used
in preparing the profitability data. The Independent Board Members
noted this information supplemented the profitability information
requested and received during the year to help keep them apprised of
developments affecting profitability (such as changes in fee waivers
and expense reimbursement commitments). In this regard, the
Independent Board Members noted that they had also appointed an
Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members considered Nuveen's
profitability compared with other fund sponsors prepared by two
independent third party service providers as well as comparisons of
the revenues, expenses and profit margins of various unaffiliated
management firms with similar amounts of assets under management
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized
the subjective nature of determining profitability which may be
affected by numerous factors including the allocation of expenses.
Further, the Independent Board Members recognized the difficulties in
making comparisons as the profitability of other advisers generally is
not publicly available and the profitability information that is
available for certain advisers or management firms may not be
representative of the industry and may be affected by, among other
things, the adviser's particular business mix, capital costs, types of
funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's
methodology and assumptions for allocating expenses across product lines to
determine profitability. In reviewing profitability, the Independent Board
Members recognized Nuveen's investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's level
of profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly attributable
to the management of the Funds, if any. See Section E below for additional
information on indirect benefits NAM may receive as a result of its relationship
with the Funds. Based on their review of the overall fee arrangements of each
Fund, the Independent Board Members determined that the advisory fees and
expenses of the respective Fund were reasonable.
77
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. The Independent Board Members therefore considered whether the Funds
have appropriately benefited from any economies of scale and whether there is
potential realization of any further economies of scale. In considering
economies of scale, the Independent Board Members have recognized that economies
of scale are difficult to measure and predict with precision, particularly on a
fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the
shareholders share in these benefits is to include breakpoints in the advisory
fee schedule. Accordingly, the Independent Board Members reviewed and considered
the fund-level breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Funds are closed-end funds, the Independent
Board Members recognized that although the Funds may from time to time make
additional share offerings, the growth in their assets will occur primarily
through appreciation of each Fund's investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex, including the Funds,
are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent Board Members
recognized that the complex-wide fee schedule was recently revised in 2007 to
provide for additional fee savings to shareholders and considered the amended
schedule. The Independent Board Members further considered that the complex-wide
fee arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Based on their review, the Independent Board
Members concluded that the breakpoint schedule and complex-wide fee arrangement
were acceptable and desirable in providing benefits from economies of scale to
shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's preferred trading desk and for serving
as a co-manager in the initial public offering of new closed-end exchange traded
funds.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
78
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.
79
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
80
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.
81
Glossary of
TERMS USED in this REPORT
[] AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the investment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
[] AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments or
the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
[] INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
[] DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change.
[] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
[] NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of shares outstanding. Fund NAVs are
calculated at the end of each business day.
[] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
[] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
82
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase 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, NNP, NAN and NXK redeemed 1,466, 704
and 516 preferred shares, respectively. Any future repurchases or redemptions
will be reported to shareholders in the next annual or semi-annual report.
83
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
EAN-A-0908D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Shareholder Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, who is "independent" for purposes of Item 3
of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen New York Municipal Value Fund, Inc.
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
----------------------------------------------------------------------------------------------------------------------------------
September 30, 2008 $ 11,765 $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------------------
September 30, 2007 $ 10,346 $ 0 $ 500 0
----------------------------------------------------------------------------------------------------------------------------------
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.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
-----------------------------------------------------------------------------------------------------------------
September 30, 2008 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------
September 30, 2007 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
--------------------------------------------------------------------------------------------------------------------------------
September 30, 2008 $ 0 $ 0 $ 0 $ 0
September 30, 2007 $ 500 $ 0 $ 0 $ 500
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J.
Toth, William J. Schneider and David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO 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 Municipal Value Fund, Inc.
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 41 $7.510 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of September 30, 2008. None of the assets in these accounts
are subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of October 31, 2008, the S&P/Investortools Municipal Bond Index was
comprised of 52,959 securities with an aggregate current market value of $1,009
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments by a group of investors lead 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.
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, 2008, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE BENEFICIALLY OWNED
OF 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 Municipal Value Fund, Inc. $0 $10,000-$50,000
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD is currently a portfolio manager for 42 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/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New York Municipal Value Fund, Inc.
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: December 8, 2008
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 8, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 8, 2008
-------------------------------------------------------------------