nio.htm

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 811-06379

Nuveen Municipal Opportunity Fund, Inc.
(Exact name of registrant as specified in charter)

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)

Registrant's telephone number, including area code: (312) 917-7700

Date of fiscal year end: October 31

Date of reporting period: October 31, 2013

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.


 
 

 


ITEM 1. REPORTS TO STOCKHOLDERS.


 
 

 
 
Life is Complex
 
Nuveen makes things e-simple.
 
It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Investments Fund information is ready—no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish.
 
Free e-Reports right to your e-mail!
 
www.investordelivery.com
If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account.
 
or
 
www.nuveen.com/accountaccess
If you receive your Nuveen Fund dividends and statements directly from Nuveen.
 
 
 
 
 

 
 
Table of Contents

Chairman’s Letter to Shareholders
4
   
Portfolio Managers’ Comments
5
   
Fund Leverage
11
   
Common Share Information
13
   
Risk Considerations
15
   
Performance Overview and Holding Summaries
16
   
Shareholder Meeting Report
20
   
Report of Independent Registered Public Accounting Firm
22
   
Portfolios of Investments
23
   
Statement of Assets and Liabilities
82
   
Statement of Operations
83
   
Statement of Changes in Net Assets
84
   
Statement of Cash Flows
86
   
Financial Highlights
88
   
Notes to Financial Statements
94
   
Annual Investment Management Agreement Approval Process
107
   
Board Members & Officers
115
   
Reinvest Automatically, Easily and Conveniently
120
   
Glossary of Terms Used in this Report
121
   
Additional Fund Information
123

Nuveen Investments
 
3
 
 
 

 
 
Chairman’s Letter to Shareholders
 
 
Dear Shareholders,
 
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
 
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
 
On the domestic front, recent events such as the Federal Reserve decision to slow down its bond buying program beginning in January of 2014 and the federal budget compromise that would guide government spending into 2015 are both positives for the economy moving forward. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
 
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
 
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
William J. Schneider
Chairman of the Nuveen Fund Board
December 23, 2013

4
 
Nuveen Investments

 
 

 
 
Portfolio Managers’ Comments
 
Nuveen Quality Municipal Fund, Inc. (NQI)
Nuveen Municipal Opportunity Fund, Inc. (NIO)
Nuveen Dividend Advantage Municipal Income Fund (NVG)
Nuveen AMT-Free Municipal Income Fund (NEA)
 
These Funds feature management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Portfolio managers Paul L. Brennan, CFA, and Douglas J. White, CFA, review U.S. economic and municipal market conditions, key investment strategies and the twelve-month performance of these four national Funds. Paul has managed NIO, NVG and NEA since 2006, and Douglas assumed portfolio management responsibility for NQI in 2011.
 
FUND REORGANIZATIONS
 
Effective before the opening of business on May 6, 2013, certain Funds (the Acquired Funds) were reorganized into one, larger Fund included in this report (the Acquiring Fund) as follows:

Acquired Funds
Symbol
 
Acquiring Fund
Symbol
Nuveen Premier Municipal Opportunity Fund, Inc.
NIF
 
Nuveen AMT-Free Municipal Income Fund
NEA
Nuveen Premium Income Municipal Opportunity Fund
NPX
     
 
See Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies, Fund Reorganizations for further information.
 
What factors affected the U.S. economy and the national municipal market during the twelve-month reporting period ended October 31, 2013?
 
During this reporting period, the U.S. economy’s progress toward recovery from recession continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. The Fed also continued its monthly purchases of $40 billion of mortgage-backed securities and $45 billion of longer-term Treasury securities in an open-ended effort to bolster growth and promote progress toward the Fed’s mandates of maximum employment and price stability. At its June 2013 meeting, the Fed indicated that it believed downside risks to the economy had diminished since the autumn of 2012. Subsequent comments by Fed Chairman Ben Bernanke suggested that the Fed might begin to reduce, or taper, its asset purchase program later in 2013. However, in September 2013, the
 

Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service (Moody’s), Inc. or Fitch, Inc. (Fitch). Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Nuveen Investments
 
5

 
 

 
 
Portfolio Managers’ Comments (continued)
 
Fed surprised the market by announcing that it had decided to wait for more evidence that the progress it discerned in June was sustainable before it made any adjustments to the pace of the purchase program. At its October 2013 meeting, the central bank reiterated this decision and said that it expected to continue its “highly accommodative stance of monetary policy” for “a considerable time” after the purchase program ends and the economic recovery strengthens. Finally, in December of 2013, the Fed announced a decision to slow down its bond buying program beginning in January of 2014.
 
In the third quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.8%, up from 2.5% for the second quarter of 2013, continuing the pattern of positive economic growth for the tenth consecutive quarter. The Consumer Price Index (CPI) rose 1.0% year-over-year as of October 2013, while the core CPI (which excludes food and energy) increased 1.7% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Improvements in the labor markets continued to be slow, and unemployment remained above the Fed’s target of 6.5%. As of October 2013, the national unemployment rate was 7.3%, up from 7.2% in September 2013 but below the 7.9% reported in October 2012. The slight uptick in October’s number reflected the increase in federal employees furloughed due to the government shutdown that month. The housing market continued to deliver good news, as the average home price in the S&P/Case-Shiller index of 20 major metropolitan areas rose 13.3% for the twelve months ended September 2013 (most recent data available at the time this report was prepared), the largest twelve-month percentage gain for the index since February 2006.
 
Early in this reporting period, the outlook for the U.S. economy was clouded by uncertainty about global financial markets and the outcome of the “fiscal cliff.” The tax consequences of the fiscal cliff situation were averted through a last-minute deal that raised payroll taxes, but left in place a number of tax breaks, including tax exemptions on municipal bond interest. However, lawmakers failed to reach a resolution on $1.2 trillion in spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for fiscal 2014 continued to be debated. On October 1, 2013, the start date for fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 7, 2014. Subsequent to the close of this reporting period, Congress preliminarily passed a federal budget deal that would guide government spending into 2015 and defuse the chances of another shutdown if it wins final passage. In addition to the ongoing political debate over federal spending, Chairman Bernanke’s June 2013 remarks about tapering the Fed’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and about the potential impact on the economy and financial markets, leading to increased market volatility. This was compounded by headline credit stories involving Detroit’s bankruptcy filing in July 2013, the largest municipal bankruptcy in history, and the disappointing news that continued to come out of Puerto Rico, where a struggling economy and years of deficit spending and borrowing resulted in downgrades on the commonwealth’s bonds.
 
While municipal bond prices generally rallied during the first part of this reporting period, as strong demand and tight supply created favorable municipal market conditions, we saw the environment shift during the second half of the reporting period. The Treasury market traded off, the municipal market followed suit, and spreads widened as investor

6
 
Nuveen Investments

 
 

 
 
concern grew. This unsettled environment prompted increased selling by bondholders across the fixed income markets. Following the Fed’s September decision to delay tapering, we saw some stabilization of municipal bond fund flows and an October rally in municipal bond prices. However, for the reporting period as a whole, municipal bond prices generally declined, especially at the longer end of the maturity spectrum, while interest rates rose. At the same time, fundamentals on municipal bonds remained strong, as state governments made good progress in dealing with budget issues. Due to strong growth in personal tax collections, state tax revenues have increased for 15 consecutive quarters, while on the expense side, the states made headway in cutting and controlling costs, with more than 40 states implementing some type of pension reform. The current level of municipal issuance reflects the present political distaste for additional borrowing by state and local governments facing fiscal constraints and the prevalent atmosphere of municipal budget austerity. Over the twelve months ended October 31, 2013, municipal bond issuance nationwide totaled $335.2 billion, a decrease of 11.7% from the issuance for the twelve-month period ended October 31, 2012.
 
What key strategies were used to manage these Funds during the twelve-month reporting period ended October 31, 2013?
 
As the municipal market environment shifted during this reporting period, from one characterized by heavy bond calls, tight supply and lower yields to one marked by increased market volatility and rising rates, we continued to take a bottom-up approach to discovering sectors that appeared undervalued as well as individual credits that had the potential to perform well over the long term.
 
During this reporting period, NIO, NVG and NEA found value in diversified areas of the market, including health care, transportation, water and sewer and tobacco. A number of new health care issues that we considered attractively priced enabled us to add to the Funds’ exposure. We also purchased a variety of bonds issued for tollroads in some of the Funds, including issues in Virginia, Illinois, Florida, Ohio and the Grand Parkway in Houston, Texas, which, when completed, will be the longest beltway in the U.S., at 184 miles. Also in the transportation sector, heavy supply of airport bonds in both the primary and secondary markets provided opportunities to add to our holdings there, such as airports in Dallas/Fort Worth, Miami, Denver and San Francisco. In addition, we added water and sewer bonds, including a new issue of Lehigh County Authority (Pennsylvania) water bonds. In anticipation of bond calls affecting our holdings of Louisiana and Washington tobacco credits, we also purchased tobacco bonds from other issuers in order to keep our tobacco exposure relatively stable. During the summer, as the market sold off, we were able to find these bonds at attractive prices in the secondary market.
 
In NQI, we also were active in areas where we saw value, including the transportation sector, where we added to our airport exposure. In addition, we increased our emphasis on pre-refunded bonds by purchasing some of these credits in the secondary market. NQI also experienced pre-refunding activity within its holdings, which increased our allocation to this segment of the market and enhanced the Fund’s credit quality profile. During this reporting period, we reduced NQI’s exposure to health care and dedicated tax bonds, which are backed by revenues from sales and use taxes.
 
Our focus in NIO, NVG and NEA during the reporting period was on maintaining the Funds’ positioning, as we believed they were well situated for the existing environment. During the market sell-off, we took advantage of attractive opportunities to slightly increase the Funds’ credit and duration profiles in light of our view that credit fundamentals generally continued to improve. As interest rates rose, these Funds focused their purchases on bonds

Nuveen Investments
 
7

 
 

 
 
Portfolio Managers’ Comments (continued)
 
with maturities of 20 years and longer, which enabled us to take advantage of more attractive yields at the longer end of the municipal yield curve. NQI’s duration also extended slightly as a natural consequence of reinvesting the proceeds from bonds called as part of current refundings. These bonds were priced to short calls and therefore had negligible durations; consequently, reinvesting their proceeds in anything other than cash had the effect of extending NQI’s duration. During the reporting period, all four Funds added to their exposure to the A-rated sector, which we believed offered the best credit opportunities.
 
Activity during this reporting period was driven primarily by the reinvestment of proceeds from called and matured bonds, which was aimed at keeping the Funds fully invested and supporting their income streams. During the early part of this reporting period, we continued to experience a number of current bond calls resulting from a growth in refinancings, which provided a meaningful source of liquidity. Although refinancing activity declined as interest rates rose in the latter months of this reporting period, we continued to have cash from the earlier refundings to reinvest. We also engaged in some tactical selling, taking advantage of attractive bids for certain issues resulting from strong demand to sell a specific issue and reinvest the proceeds into bonds that we thought offered more potential. Despite the decrease in new issuance, we continued to find opportunities to purchase bonds that helped us achieve our goals for these Funds.
 
As of October 31, 2013, all four of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
 
How did the Funds perform during the twelve-month reporting period ended October 31, 2013?
 
The tables in each Fund’s Performance Overview and Holding Summaries section of this report provide the Funds’ total returns for the one-year, five-year and ten-year periods ended October 31, 2013. Each Fund’s returns are compared with the performance of a corresponding market index and Lipper classification average.
 
For the twelve months ended October 31, 2013, the total returns on common share net asset value (NAV) for the four Funds underperformed the return for the national S&P Municipal Bond Index. For the same period, NQI, NIO and NVG exceeded the average return for the Lipper General & Insured Leveraged Municipal Debt Funds Classification Average, while NEA performed in line with this Lipper average.
 
Key management factors that influenced the Funds’ returns during this reporting period included duration and yield curve positioning, sector allocation and credit exposure. In addition, the use of regulatory leverage was an important factor affecting the Funds’ performance over this period. Leverage is discussed in more detail later in this report.
 
As interest rates rose and the yield curve steepened, municipal bonds with shorter maturities generally outperformed those with longer maturities. Overall, credits with maturities of five years or less posted the best returns during this reporting period, while bonds at the longest end of the municipal yield curve produced the weakest results. In general, while these Funds tended to have durations longer than the market average, individual differences in duration and yield curve positioning were the major drivers of differences in performance. Among these Funds, NIO was more advantageously positioned in terms of duration and yield curve, which helped its performance. The other three Funds, especially NEA, tended to have less exposure to the outperforming short end of the yield curve and greater exposure to the longer parts of the curve that underperformed.

8
 
Nuveen Investments

 
 

 
 
After underperforming for many months, pre-refunded bonds, which are often backed by U.S. Treasury securities, were among the best performing market segments. The outperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. As of October 31, 2013, these four Funds were similarly weighted in pre-refunded bonds, with NVG having the largest allocation due to activity over the past twelve months, as previously discussed. Housing, health care and general obligation (GO) bonds also tended to outperform the general municipal market. All of these Funds had good exposure to the health care sector.
 
In contrast, revenue bonds as a whole underperformed the municipal market. Among the revenue sectors that lagged municipal market performance by the widest margins were transportation, water and sewer and electric utilities. All four Funds had double-digit weightings in the transportation sector, with NQI having the heaviest exposure. Tobacco credits backed by the 1998 master tobacco settlement agreement also performed poorly, due in part to their longer effective durations and lower credit ratings. As of October 31, 2013, all of the Funds had similar exposures to tobacco bonds.
 
Credit exposure was another factor in the Funds’ performance during these twelve months, especially during the latter half of the reporting period, as events in the municipal market led investors to avoid risk. High yield bonds came under selling pressure, and credit spreads, or the difference in yield spreads between U.S. Treasury securities and comparable investments such as municipal bonds, began to widen. For the reporting period as a whole, AAA-rated and AA-rated bonds generally outperformed A- and BBB-rated bonds. While these Funds tended to have heavy weightings in A-rated bonds, this was offset to some degree by their weightings of AAA- and AA-rated bonds. Overall, the impact of the Funds’ credit exposure tended to be neutral to slightly positive for the reporting period.
 
During this period, two credit situations weighed on the municipal market. It is important to note that, while these situations received much attention from the media, they represent isolated events. On July 18, 2013, the City of Detroit filed for Chapter 9 bankruptcy. Detroit, burdened by decades of population loss, declines in the auto manufacturing industry and significant tax base deterioration, has been under severe financial stress for an extended period. Detroit’s bankruptcy filing will likely be a lengthy one, given the complexity of its debt portfolio, number of creditors, numerous union contracts and significant legal questions that must be addressed. NIO, NVG and NEA each had small holdings of Detroit water and sewer credits, which are supported by revenue streams generated by service fees, while NQI sold its Detroit water and sewer holdings in September 2013. NIO also held small positions in Detroit GO bonds and Detroit Public School credits, both of which are insured. The Detroit Public Schools are not included in the City of Detroit bankruptcy filing. During this reporting period, these holdings had a negligible impact on the Funds’ investment performance due to the Detroit bankruptcy.
 
Another factor affecting the Funds’ holdings was the downgrade of debt issued by Puerto Rico. In 2012, Moody’s downgraded Puerto Rico GO bonds to Baa3 from Baa1, Puerto Rico Sales Tax Financing Corporation (COFINA) senior sales tax revenue bonds to Aa3 from Aa2 and COFINA subordinate sales tax revenue bonds to A3 from A1. In October 2013, Moody’s further downgraded the COFINA senior sales tax bonds to A2, while affirming the subordinate bonds at A3. On November 14, 2013 (subsequent to the close of this reporting period), Fitch announced that it was placing the majority of Puerto Rico issuance—with the exception of the COFINA bonds—on negative credit watch, which implies that another downgrade may be likely. While Fitch currently rates Puerto Rico issuance at BBB-, it affirmed the ratings on COFINA bonds at AA- for the senior bonds and A+ for the subordinate bonds, with stable outlooks. On December 11, 2013

Nuveen Investments
 
9

 
 

 
 
Portfolio Managers’ Comments (continued)
 
(subsequent to the close of this reporting period), Moody’s announced that it also had placed its Baa3 rating on Puerto Rico GOs (and other Puerto Rico issues linked to the GO rating) on review for downgrade. These downgrades were based on Puerto Rico’s ongoing economic problems and, in the case of the COFINA bonds, the impact of these problems on the projected growth of sales tax revenues. However, the COFINA bonds were able to maintain a higher credit rating than the GOs because, unlike the revenue streams supporting some Puerto Rican issues, the sales taxes supporting the COFINA bonds cannot be diverted and used to support Puerto Rico’s GO bonds.
 
For the reporting period ended October 31, 2013, Puerto Rico paper underperformed the municipal market as a whole. These four Funds have limited exposure to Puerto Rico bonds. In NIO, NVG and NEA, the majority of this exposure is the sales tax bonds issued by COFINA, which we consider the best of the Puerto Rico issuance. Much of this exposure also is insured, which we believe adds a measure of value. In addition, the Funds hold small positions in other Puerto Rico credits, such as highway and electric utilities bonds. Over the past six months, NQI sold its positions in COFINA bonds (May 2013) and Puerto Rico GOs (September 2013), leaving the Fund with two small holdings, an insured electric power bond and an escrowed highway revenue credit. Overall, the small nature of our exposure helped to limit the impact of the Puerto Rico bonds’ underperformance on the Funds.

10
 
Nuveen Investments

 
 

 
 
Fund Leverage
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the returns of the Funds relative to their comparative benchmarks was the Funds’ use of leverage through their issuance of preferred shares and/or investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income, particularly in the recent market environment where short-term market rates are at or near historical lows, meaning that the short-term rates the Fund has been paying on its leveraging instruments have been much lower than the interest the Fund has been earning on its portfolio of long-term bonds that it has bought with the proceeds of that leverage. However, use of leverage also can expose the Fund to additional price volatility. When a Fund uses leverage, the Fund will experience a greater increase in its net asset value if the municipal bonds acquired through the use of leverage increase in value, but it will also experience a correspondingly larger decline in its net asset value if the bonds acquired through leverage decline in value, which will make the Fund’s net asset value more volatile, and its total return performance more variable over time. In addition, income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. Leverage made a negative contribution to the performance of these Funds over this reporting period.
 
As of October 31, 2013, the Funds’ percentages of effective and regulatory leverage are as shown in the accompanying table.
 
     
NQI
 
NIO
 
NVG
 
NEA
 
Effective Leverage*
   
38.43
%
 
39.54
%
 
38.11
%
 
38.43%
 
Regulatory Leverage*
   
31.23
%
 
32.55
%
 
31.56
%
 
31.60%
 

*
Effective Leverage is a Fund’s effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund’s portfolio that increase the Fund’s investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund’s capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.
 
THE FUNDS’ REGULATORY LEVERAGE
 
As of October 31, 2013, the Funds have issued and outstanding MuniFund Term Preferred (MTP) Shares, Variable Rate MuniFund Term Preferred (VMTP) Shares and Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying table.
 
   
MTP Shares
 
VMTP Shares
 
VRDP Shares
       
       
Shares Issued at Liquidation
 
Annual Interest
 
NYSE
     
Shares Issued at Liquidation
     
Shares Issued at Liquidation
     
   
Series
 
Value
 
Rate
 
Ticker
 
Series
 
Value
 
Series
 
Value
 
Total
 
NQI
       
$
   
   
   
2015
 
$
240,400,000
 
 
 
 
$
  $
240,000,000
 
NIO
       
$
   
   
   
 
$
   
1
 
$
667,200,000
 
$
667,200,000
 
NVG
   
2014
 
$
108,000,000
   
2.95
%
 
NVG PRCCL
   
2014
 
$
92,500,000
                   
         
$
108,000,000
                   
$
92,500,000
             
$
200,500,000
 
NEA
   
2015
 
$
83,000,000
   
2.85
%
 
NEA PRCCL
   
2014
 
$
67,600,000
   
1
 
$
219,000,000
       
                                         
2
 
$
130,900,000
       
         
$
83,000,000
                   
$
67,600,000
       
$
349,900,000
 
$
500,500,000
 

Nuveen Investments
 
11

 
 

 
 
Fund Leverage (continued)
 
During the current reporting period, NQI successfully exchanged of all its outstanding 2,404 Series 2014 VMTP Shares for 2,404 Series 2015 VMTP Shares. This transaction was completed in a privately negotiated offering. The Fund completed the exchange offer in which it refinanced its existing VMTP Shares with new VMTP Shares with a term redemption date of December 1, 2015.
 
Subsequent to the close of this reporting period, NVG redeemed all series of its MTP and VMTP Shares, at their $10.00 and $100,000 liquidation value per share, respectively, plus dividend amounts owed, with the proceeds from $201,000,000 of newly issued VRDP Shares. On December 13, 2013, VRDP Shares were issued to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933 and NVG’s MTP and VMTP Shares were redeemed on December 23, 2013.
 
Subsequent to the close of this reporting period, NEA redeemed all series of its MTP and 2014 VMTP Shares, at their $10.00 and $100,000 liquidation value per share, respectively, plus dividend amounts owed, with the proceeds from $151,000,000 of newly issued 2016 VMTP Shares. On December 10, 2013, 2016 VMTP Shares were issued to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933 and NEA’s MTP Shares were redeemed on December 20, 2013. NEA’s 2014 VMTP Shares are anticipated to be redeemed on January 6, 2014.
 
Refer to Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies for further details on MTP, VMTP and VRDP Shares.

12
 
Nuveen Investments

 
 

 
 
Common Share Information
 
COMMON SHARE DIVIDEND INFORMATION
 
During the current reporting period ended October 31, 2013, the Funds’ monthly dividends to common shareholders were as shown in the accompanying table.
                           
   
Per Common Share Amounts
     
NQI
   
NIO
   
NVG
   
NEA
 
November
 
$
0.0750
 
$
0.0730
 
$
0.0750
 
$
0.0700
 
December
   
0.0730
   
0.0730
   
0.0690
   
0.0680
 
January
   
0.0730
   
0.0730
   
0.0690
   
0.0680
 
February
   
0.0730
   
0.0730
   
0.0690
   
0.0680
 
March
   
0.0730
   
0.0730
   
0.0610
   
0.0680
 
April
   
0.0730
   
0.0730
   
0.0610
   
0.0680
 
May*
   
0.0730
   
0.0730
   
0.0610
   
0.1360
 
June
   
0.0660
   
0.0730
   
0.0545
   
 
July
   
0.0660
   
0.0730
   
0.0545
   
0.0685
 
August
   
0.0660
   
0.0730
   
0.0545
   
0.0685
 
September
   
0.0660
   
0.0730
   
0.0545
   
0.0685
 
October
   
0.0660
   
0.0730
   
0.0545
   
0.0685
 
                           
Long-Term Capital Gain**
 
$
 
$
 
$
0.1069
 
$
 
Short-Term Capital Gain**
   
   
 
$
0.0068
   
 
Ordinary Income Distribution**
   
   
 
$
0.0015
   
 
                           
Market Yield***
   
6.46
%
 
6.74
%
 
5.13
%
 
6.65
%
Taxable-Equivalent Yield***
   
8.97
%
 
9.36
%
 
7.13
%
 
9.24
%

*
In connection with NEA’s reorganization, the Fund declared a dividend of $0.0471 per common share with an ex-date of May 1, 2013 and a dividend of $0.0209 per common share with an ex-dividend date of May 14, 2013, each payable on July 1, 2013. These distributions were in addition to the Fund’s monthly tax-free dividend of$0.068 with an ex-dividend date of May 1, 2013, payable on June 3, 2013.
   
**
Distribution paid in December 2012.
   
***
Market Yield is based on the Fund’s current annualized monthly dividend divided by the Fund’s current market price as of the end of the reporting period. Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28.0%. When comparing a Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
 
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of October 31, 2013, all of the Funds in this report had positive UNII balances for tax and financial reporting purposes.

Nuveen Investments
 
13

 
 

 
 
Common Share Information (continued)
 
COMMON SHARE REPURCHASES
 
During November 2013 (subsequent to the close of this reporting period), the Nuveen Funds’ Board of Directors/Trustees reauthorized the Funds’ open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding common shares.
 
As of October 31, 2013, and since the inception of the Funds’ repurchase programs, the following Funds have cumulatively repurchased and retired their common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase programs, NQI has not repurchased any of its outstanding common shares.
                           
     
NQI
   
NIO
   
NVG
   
NEA
 
Common Shares Cumulatively Repurchased and Retired
   
   
2,900
   
75,258
   
19,300
 
Common Shares Authorized for Repurchase
   
3,845,000
   
9,560,000
   
2,980,000
   
2,225,000
 
 
During the current reporting period, the Funds repurchased and retired their common shares at a weighted average price per common share and a weighted average discount per common share as shown in the accompanying table.
                           
     
NQI
   
NIO
   
NVG
   
NEA
 
Common Shares Repurchased and Retired
   
   
   
64,858
   
 
Weighted Average Price per Common Share Repurchased and Retired
   
   
 
$
12.58
   
 
Weighted Average Discount per Common Share Repurchased and Retired
   
   
   
13.31
%
 
 
 
OTHER COMMON SHARE INFORMATION
 
As of October 31, 2013, and during the current reporting period, the Funds’ common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.
                           
     
NQI
   
NIO
   
NVG
   
NEA
 
Common Share NAV
 
$
13.76
 
$
14.46
 
$
14.62
 
$
13.73
 
Common Share Price
 
$
12.26
 
$
12.99
 
$
12.75
 
$
12.37
 
Premium/(Discount) to NAV
   
(10.90
)%
 
(10.17
)%
 
(12.79
)%
 
(9.91
)%
12-Month Average Premium/(Discount) to NAV
   
(5.75
)%
 
(5.75
)%
 
(8.63
)%
 
(5.52
)%

14
 
Nuveen Investments

 
 

 
 
Risk Considerations
 
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
 
Investment, Market and Price Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the municipal securities owned by the Funds, which generally trade in the over-the-counter markets. Shares of closed-end investment companies like these Funds frequently trade at a discount to their net asset value (NAV). Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
 
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
 
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful. Certain aspects of the recently adopted Volcker Rule may limit the availability of tender option bonds, which are used by the Funds for leveraging and duration management purposes. The effects of this new Rule, expected to take effect in mid-2015, may make it more difficult for a Fund to maintain current or desired levels of leverage and may cause the Fund to incur additional expenses to maintain its leverage.
 
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
 
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
 
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
 
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
 
Inverse Floater Risk. The Funds may invest in inverse floaters. Due to their leveraged nature, these investments can greatly increase a Fund’s exposure to interest rate risk and credit risk. In addition, investments in inverse floaters involve the risk that the Fund could lose more than its original principal investment.
 
Derivatives Risk. The Funds may use derivative instruments which involve a high degree of financial risk, including the risk that the loss on a derivative may be greater than the principal amount invested.

Nuveen Investments
 
15

 
 

 

NQI
 
 
Nuveen Quality Municipal Fund, Inc.
 
Performance Overview and Holding Summaries as of October 31, 2013
 
Average Annual Total Returns as of October 31, 2013

   
Average Annual
     
1-Year
   
5-Year
   
10-Year
 
NQI at Common Share NAV
   
(5.93)%
   
9.75%
   
4.70%
 
NQI at Common Share Price
   
(15.89)%
   
8.44%
   
3.23%
 
S&P Municipal Bond Index
   
(1.69)%
   
6.63%
   
4.59%
 
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
   
(6.12)%
   
10.80%
   
5.51%
 
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 

Portfolio Composition1
       
(as a % of total investments)
       
Tax Obligation/Limited
   
24.0
%
Transportation
   
18.3
%
U.S. Guaranteed
   
13.7
%
Tax Obligation/General
   
11.9
%
Health Care
   
10.9
%
Water and Sewer
   
9.0
%
Utilities
   
5.5
%
Other
   
6.7
%

Credit Quality1,2,3
       
(as a % of total investment exposure)
       
AAA/U.S. Guaranteed
   
19.2
%
AA
   
44.6
%
A
   
29.2
%
BBB
   
3.3
%
N/R
   
0.5
%

States1
       
(as a % of total investments)
       
California
   
13.9
%
Florida
   
9.6
%
Texas
   
7.9
%
Illinois
   
6.6
%
Washington
   
6.3
%
Arizona
   
6.0
%
Pennsylvania
   
5.9
%
Colorado
   
4.7
%
Louisiana
   
3.5
%
Massachusetts
   
3.2
%
Indiana
   
2.8
%
New York
   
2.7
%
Ohio
   
2.5
%
Wisconsin
   
2.5
%
Georgia
   
2.3
%
Other
   
19.6
%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table.

16
 
Nuveen Investments

 
 

 

NIO
 
 
Nuveen Municipal Opportunity Fund, Inc.
 
Performance Overview and Holding Summaries as of October 31, 2013
 
Average Annual Total Returns as of October 31, 2013

   
Average Annual
     
1-Year
   
5-Year
   
10-Year
 
NIO at Common Share NAV
   
(4.10)%
   
9.23%
   
4.87%
 
NIO at Common Share Price
   
(11.09)%
   
9.52%
   
4.22%
 
S&P Municipal Bond Index
   
(1.69)%
   
6.63%
   
4.59%
 
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
   
(6.12)%
   
10.80%
   
5.51%
 
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
         
Portfolio Composition1
       
(as a % of total investments)
       
Tax Obligation/Limited
   
22.6
%
Transportation
   
14.8
%
Health Care
   
14.1
%
U.S. Guaranteed
   
12.8
%
Water and Sewer
   
10.3
%
Tax Obligation/General
   
9.7
%
Utilities
   
6.4
%
Education and Civic Organizations
   
5.0
%
Other
   
4.3
%

Credit Quality1,2,3
       
(as a % of total investment exposure)
       
AAA/U.S. Guaranteed
   
18.7
%
AA
   
46.5
%
A
   
25.7
%
BBB
   
3.3
%
BB or Lower
   
3.5
%
N/R
   
1.2
%

States1
       
(as a % of total investments)
       
California
   
12.4
%
Florida
   
11.5
%
Illinois
   
6.4
%
Texas
   
5.5
%
Ohio
   
5.1
%
New York
   
4.9
%
Washington
   
4.4
%
Indiana
   
4.3
%
Pennsylvania
   
3.8
%
Colorado
   
3.2
%
Louisiana
   
2.9
%
New Jersey
   
2.9
%
South Carolina
   
2.9
%
Nevada
   
2.4
%
Massachusetts
   
2.4
%
Michigan
   
2.2
%
Arizona
   
2.2
%
Nebraska
   
1.9
%
Other
   
18.7
%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table.

Nuveen Investments
 
17

 
 

 
 
NVG
 
 
Nuveen Dividend Advantage Municipal Income Fund
 
Performance Overview and Holding Summaries as of October 31, 2013
 
Average Annual Total Returns as of October 31, 2013

   
Average Annual
     
1-Year
   
5-Year
   
10-Year
 
NVG at Common Share NAV
   
(5.46)%
   
8.62%
   
5.25%
 
NVG at Common Share Price
   
(14.46)%
   
8.59%
   
4.60%
 
S&P Municipal Bond Index
   
(1.69)%
   
6.63%
   
4.59%
 
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
   
(6.12)%
   
10.80%
   
5.51%
 
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
         
Portfolio Composition1
       
(as a % of total investments)
       
Tax Obligation/Limited
   
23.4
%
Health Care
   
13.6
%
U.S. Guaranteed
   
13.4
%
Transportation
   
12.1
%
Tax Obligation/General
   
12.0
%
Utilities
   
7.4
%
Water and Sewer
   
6.7
%
Education and Civic Organizations
   
6.1
%
Investment Companies
   
0.2
%
Other
   
5.1
%

Credit Quality1,2,3
       
(as a % of total investment exposure)
       
AAA/U.S. Guaranteed
   
26.5
%
AA
   
39.8
%
A
   
22.2
%
BBB
   
3.1
%
BB or Lower
   
3.3
%
N/R
   
0.4
%

States1
       
(as a % of municipal bonds)
       
California
   
12.6
%
Illinois
   
7.2
%
Texas
   
5.6
%
Georgia
   
5.6
%
Washington
   
5.3
%
Colorado
   
5.2
%
Florida
   
4.7
%
Indiana
   
4.1
%
Louisiana
   
3.9
%
Ohio
   
3.8
%
New York
   
3.8
%
Pennsylvania
   
3.6
%
South Carolina
   
2.9
%
New Jersey
   
2.7
%
Michigan
   
2.7
%
Tennessee
   
2.5
%
Massachusetts
   
1.9
%
Nebraska
   
1.8
%
Nevada
   
1.7
%
Other
   
18.4
%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table.

18
 
Nuveen Investments

 
 

 
 
NEA
 
 
Nuveen AMT-Free Municipal Income Fund
 
Performance Overview and Holding Summaries as of October 31, 2013

Average Annual Total Returns as of October 31, 2013

   
Average Annual
     
1-Year
   
5-Year
   
10-Year
 
NEA at Common Share NAV
   
(6.25)%
   
7.93%
   
4.99%
 
NEA at Common Share Price
   
(16.89)%
   
7.73%
   
3.95%
 
S&P Municipal Bond Index
   
(1.69)%
   
6.63%
   
4.59%
 
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
   
(6.12)%
   
10.80%
   
5.51%
 
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
         
Portfolio Composition1
       
(as a % of total investments)
       
Tax Obligation/Limited
   
21.7
%
Health Care
   
16.6
%
U.S. Guaranteed
   
13.2
%
Transportation
   
12.7
%
Tax Obligation/General
   
10.0
%
Water and Sewer
   
9.6
%
Utilities
   
5.5
%
Education and Civic Organizations
   
5.3
%
Other
   
5.4
%

Credit Quality1,2,3
       
(as a % of total investment exposure)
       
AAA/U.S. Guaranteed
   
20.0
%
AA
   
42.0
%
A
   
27.7
%
BBB
   
3.7
%
BB or Lower
   
4.1
%
N/R
   
0.7
%

States1
       
(as a % of total investments)
       
California
   
13.5
%
Illinois
   
8.7
%
New York
   
6.3
%
Florida
   
5.9
%
Colorado
   
5.8
%
Texas
   
5.3
%
Pennsylvania
   
5.2
%
New Jersey
   
4.7
%
Indiana
   
4.2
%
Ohio
   
4.0
%
Louisiana
   
3.6
%
Arizona
   
3.2
%
Washington
   
2.8
%
Massachusetts
   
2.5
%
South Carolina
   
2.2
%
Georgia
   
1.8
%
Puerto Rico
   
1.6
%
Other
   
18.7
%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table.

Nuveen Investments
 
19

 
 

 

NQI
NIO
NVG
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments on August 7, 2013; at this meeting the shareholders were asked to vote on the election of Board Members.

   
NQI
 
NIO
 
NVG
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Approval of the Board Members was reached as follows:
                                     
John P. Amboian
                                     
For
   
27,985,747
   
   
79,668,535
   
   
   
 
Withhold
   
982,128
   
   
2,703,648
   
   
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
   
 
Robert P. Bremner
                                     
For
   
27,930,806
   
   
79,508,012
   
   
   
 
Withhold
   
1,037,069
   
   
2,864,171
   
   
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
   
 
Jack B. Evans
                                     
For
   
27,967,265
   
   
79,582,857
   
   
   
 
Withhold
   
1,000,610
   
   
2,789,326
   
   
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
   
 
William C. Hunter
                                     
For
   
   
2,404
   
   
6,372
   
   
9,533,466
 
Withhold
   
   
   
   
300
   
   
420,513
 
Total
   
   
2,404
   
   
6,672
   
   
9,953,979
 
David J. Kundert
                                     
For
   
27,964,784
   
   
79,558,246
   
   
   
 
Withhold
   
1,003,091
   
   
2,813,937
   
   
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
   
 
William J. Schneider
                                     
For
   
   
2,404
   
   
6,372
   
   
9,525,080
 
Withhold
   
   
   
   
300
   
   
428,899
 
Total
   
   
2,404
   
   
6,672
   
   
9,953,979
 
Judith M. Stockdale
                                     
For
   
27,921,606
   
   
79,489,796
   
   
34,010,704
   
 
Withhold
   
1,046,269
   
   
2,882,387
   
   
1,587,014
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
35,597,718
   
 
Carole E. Stone
                                     
For
   
27,921,743
   
   
79,525,126
   
   
34,011,980
   
 
Withhold
   
1,046,132
   
   
2,847,057
   
   
1,585,738
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
35,597,718
   
 
Virginia L. Stringer
                                     
For
   
27,922,566
   
   
79,544,055
   
   
34,037,210
   
 
Withhold
   
1,045,309
   
   
2,828,128
   
   
1,560,508
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
35,597,718
   
 
Terence J. Toth
                                     
For
   
27,976,255
   
   
79,590,139
   
   
   
 
Withhold
   
991,620
   
   
2,782,044
   
   
   
 
Total
   
28,967,875
   
   
82,372,183
   
   
   
 

20
 
Nuveen Investments

 
 

 
 
NEA
               
   
NEA
   
Common and Preferred shares voting together
as a class
 
Preferred shares voting together
as a class
 
Approval of the Board Members was reached as follows:
             
John P. Amboian
             
For
   
   
 
Withhold
   
   
 
Total
   
   
 
Robert P. Bremner
             
For
   
   
 
Withhold
   
   
 
Total
   
   
 
Jack B. Evans
             
For
   
   
 
Withhold
   
   
 
Total
   
   
 
William C. Hunter
             
For
   
   
6,966,630
 
Withhold
   
   
659,177
 
Total
   
   
7,625,807
 
David J. Kundert
             
For
   
   
 
Withhold
   
   
 
Total
   
   
 
William J. Schneider
             
For
   
   
6,938,482
 
Withhold
   
   
687,325
 
Total
   
   
7,625,807
 
Judith M. Stockdale
             
For
   
72,227,112
   
 
Withhold
   
3,627,488
   
 
Total
   
75,854,600
   
 
Carole E. Stone
             
For
   
72,235,754
   
 
Withhold
   
3,618,846
   
 
Total
   
75,854,600
   
 
Virginia L. Stringer
             
For
   
72,252,318
   
 
Withhold
   
3,602,282
   
 
Total
   
75,854,600
   
 
Terence J. Toth
             
For
   
   
 
Withhold
   
   
 
Total
   
   
 

Nuveen Investments
 
21

 
 

 
 
Report of Independent Registered Public Accounting Firm
 
The Board of Directors/Trustees and Shareholders of
Nuveen Quality Municipal Fund, Inc.
Nuveen Municipal Opportunity Fund, Inc.
Nuveen Dividend Advantage Municipal Income Fund
Nuveen AMT-Free Municipal Income Fund
 
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Quality Municipal Fund, Inc., Nuveen Municipal Opportunity Fund, Inc., Nuveen Dividend Advantage Municipal Income Fund, and Nuveen AMT-Free Municipal Income Fund (the “Funds”) as of October 31, 2013, and the related statements of operations and cash flows 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 October 31, 2013, 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 Quality Municipal Fund, Inc., Nuveen Municipal Opportunity Fund, Inc., Nuveen Dividend Advantage Municipal Income Fund, and Nuveen AMT-Free Municipal Income Fund at October 31, 2013, and the results of their operations and their cash flows 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.
 
 
Chicago, Illinois
December 27, 2013

22
 
Nuveen Investments

 
 

 
 
NQI
 
 
Nuveen Quality Municipal Fund, Inc.
 
Portfolio of Investments
 
October 31, 2013

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
LONG-TERM INVESTMENTS – 147.4% (100.0% of Total Investments)
           
     
MUNICIPAL BONDS – 147.4% (100.0% of Total Investments)
           
     
Alabama – 1.8% (1.2% of Total Investments)
           
$
7,000
 
Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2005A, 5.000%, 6/01/24 (Pre-refunded 6/01/15) – NPFG Insured
6/15 at 100.00
A1 (4)
 
$
7,518,910
 
     
Opelika Utilities Board, Alabama, Utility Revenue Bonds, Auburn Water Supply Agreement, Series 2011:
           
 
1,250
 
4.000%, 6/01/29 – AGM Insured
6/21 at 100.00
AA–
   
1,241,363
 
 
1,000
 
4.250%, 6/01/31 – AGM Insured
6/21 at 100.00
AA–
   
991,410
 
 
9,250
 
Total Alabama
       
9,751,683
 
     
Arizona – 8.8% (6.0% of Total Investments)
           
     
Arizona Health Facilities Authority, Hospital System Revenue Bonds, Phoenix Children’s Hospital, Refunding Series 2012A:
           
 
1,220
 
5.000%, 2/01/20
No Opt. Call
BBB+
   
1,354,139
 
 
1,850
 
5.000%, 2/01/21
No Opt. Call
BBB+
   
2,049,412
 
 
10,000
 
Arizona Sports and Tourism Authority, Senior Revenue Refunding Bonds, Multipurpose Stadium Facility Project, Series 2012A, 5.000%, 7/01/31
7/22 at 100.00
A1
   
10,354,900
 
     
Arizona State, Certificates of Participation, Series 2010A:
           
 
1,200
 
5.250%, 10/01/28 – AGM Insured
10/19 at 100.00
AA–
   
1,286,784
 
 
1,500
 
5.000%, 10/01/29 – AGM Insured
10/19 at 100.00
AA–
   
1,577,475
 
 
7,070
 
Arizona State, State Lottery Revenue Bonds, Series 2010A, 5.000%, 7/01/29 – AGC Insured
1/20 at 100.00
AA
   
7,460,547
 
 
2,750
 
Mesa, Arizona, Utility System Revenue Bonds, Tender Option Bond Trust, Series 11032-11034, 15.075%, 7/01/26 – AGM Insured (IF)
7/17 at 100.00
Aa2
   
2,601,500
 
 
10,000
 
Phoenix Civic Improvement Corporation, Arizona, Senior Lien Airport Revenue Bonds, Refunding Series 2013, 5.000%, 7/01/30 (Alternative Minimum Tax)
7/23 at 100.00
AA–
   
10,435,700
 
 
8,755
 
Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, Series 2005B, 5.500%, 7/01/39 – FGIC Insured
No Opt. Call
AA
   
9,463,192
 
 
44,345
 
Total Arizona
       
46,583,649
 
     
Arkansas – 0.4% (0.3% of Total Investments)
           
 
2,250
 
University of Arkansas, Fayetteville, Revenue Bonds, Medical Sciences Campus, Series 2004B, 5.000%, 11/01/24 (Pre-refunded 11/01/14) – NPFG Insured
11/14 at 100.00
Aa2 (4)
   
2,358,180
 
     
California – 20.4% (13.9% of Total Investments)
           
     
California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC:
           
 
220
 
5.000%, 12/01/24 (Pre-refunded 12/01/14) – NPFG Insured
12/14 at 100.00
Aa1 (4)
   
231,519
 
 
3,790
 
5.000%, 12/01/24 (Pre-refunded 12/01/14) – NPFG Insured
12/14 at 100.00
AAA
   
3,988,444
 
 
205
 
5.000%, 12/01/26 (Pre-refunded 12/01/14)
12/14 at 100.00
Aa1 (4)
   
215,734
 
 
3,760
 
5.000%, 12/01/26 (Pre-refunded 12/01/14)
12/14 at 100.00
AAA
   
3,956,874
 
 
1,020
 
California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los Angeles, Series 2012A, 5.000%, 11/15/23
11/22 at 100.00
BBB+
   
1,099,825
 
 
5,000
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2013A, 5.000%, 8/15/52
8/23 at 100.00
AA–
   
4,849,750
 
 
80
 
California State, General Obligation Bonds, Series 2002, 5.000%, 10/01/32 – NPFG Insured
4/14 at 100.00
A1
   
80,224
 
 
5
 
California State, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 – AMBAC Insured
4/14 at 100.00
A1
   
5,063
 
 
3,745
 
California State, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 (Pre-refunded 4/01/14) – AMBAC Insured
4/14 at 100.00
AA+ (4)
   
3,820,949
 
 
7,000
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
8/20 at 100.00
AA–
   
8,004,780
 

Nuveen Investments
 
23

 
 

 
 
NQI
Nuveen Quality Municipal Fund, Inc. (continued)
 
Portfolio of Investments October 31, 2013

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
California (continued)
           
$
1,000
 
California Statewide Community Development Authority, Revenue Bonds, Childrens Hospital of Los Angeles, Series 2007, 5.000%, 8/15/47
8/17 at 100.00
BBB+
 
$
910,890
 
 
5,000
 
Clovis Unified School District, Fresno County, California, General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 – NPFG Insured (ETM)
No Opt. Call
AA+ (4)
   
3,429,050
 
     
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999:
           
 
22,985
 
0.000%, 1/15/24 – NPFG Insured
1/14 at 55.31
A
   
12,387,076
 
 
22,000
 
0.000%, 1/15/31 – NPFG Insured
1/14 at 36.24
A
   
7,318,960
 
 
50,000
 
0.000%, 1/15/37 – NPFG Insured
1/14 at 25.16
A
   
10,786,000
 
 
5,000
 
Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.125%, 3/01/32 – AMBAC Insured
3/14 at 100.00
A
   
4,973,200
 
 
8,500
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured
6/15 at 100.00
A2
   
8,466,255
 
 
5,795
 
Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/25 – AGM Insured
No Opt. Call
Aa2
   
3,536,341
 
 
1,195
 
Lincoln Public Financing Authority, Placer County, California, Twelve Bridges Limited Obligation Revenue Bonds, Refunding Series 2011A, 4.375%, 9/02/25 – AGM Insured
9/21 at 100.00
AA–
   
1,217,813
 
 
3,785
 
Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue Bonds, Redevelopment Project 1, Series 1993, 5.850%, 8/01/22 – NPFG Insured (ETM)
2/14 at 100.00
A (4)
   
4,269,442
 
 
2,000
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Centre City Project, Series 2004A, 5.000%, 9/01/21 – SYNCORA GTY Insured
9/14 at 100.00
AA–
   
2,057,060
 
     
San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Refunding Series 2005A:
           
 
2,000
 
5.000%, 7/01/21 – NPFG Insured
7/15 at 100.00
AA+
   
2,148,500
 
 
3,655
 
5.000%, 7/01/22 – NPFG Insured
7/15 at 100.00
AA+
   
3,926,384
 
 
8,965
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 –
NPFG Insured
8/17 at 100.00
A
   
8,070,831
 
 
3,500
 
Saugus Union School District, Los Angeles County, California, General Obligation Bonds, Series 2006, 0.000%, 8/01/23 – FGIC Insured
No Opt. Call
Aa2
   
2,438,170
 
 
1,000
 
Sierra Joint Community College District, Tahoe Truckee, California, General Obligation Bonds, School Facilities Improvement District 1, Series 2005A, 5.000%, 8/01/27 (Pre-refunded 8/01/14) – FGIC Insured
8/14 at 100.00
Aa2 (4)
   
1,036,400
 
 
1,525
 
Sierra Joint Community College District, Western Nevada, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2005A, 5.000%, 8/01/27 (Pre-refunded 8/01/14) – FGIC Insured
8/14 at 100.00
Aa2 (4)
   
1,580,510
 
 
3,170
 
Ventura County Community College District, California, General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 – NPFG Insured
8/15 at 100.00
AA
   
3,349,359
 
 
175,900
 
Total California
       
108,155,403
 
     
Colorado – 6.9% (4.7% of Total Investments)
           
 
2,015
 
Board of Trustees of the University of Northern Colorado, Revenue Bonds, Series 2005, 5.000%, 6/01/22 – AGM Insured
6/15 at 100.00
AA–
   
2,141,381
 
     
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Covenant Retirement Communities Inc., Refunding Series 2012B:
           
 
1,640
 
5.000%, 12/01/22
No Opt. Call
BBB+
   
1,760,048
 
 
2,895
 
5.000%, 12/01/23
12/22 at 100.00
BBB+
   
3,065,487
 
 
4,200
 
5.000%, 12/01/24
12/22 at 100.00
BBB+
   
4,383,624
 
 
690
 
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Evangelical Lutheran Good Samaritan Society Project, Series 2013, 5.500%, 6/01/33
6/23 at 100.00
A–
   
703,089
 
 
2,540
 
Commerce City Northern Infrastructure General Improvement District, Colorado, General Obligation Bonds, Series 2013, 5.000%, 12/01/25 – AGM Insured
12/22 at 100.00
AA–
   
2,844,317
 
 
1,000
 
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006, 5.000%, 11/15/24 – NPFG Insured
11/16 at 100.00
A+
   
1,094,830
 
 
5,365
 
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006, 5.000%, 11/15/23 – NPFG Insured (UB)
11/16 at 100.00
A+
   
5,890,019
 

24
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Colorado (continued)
           
$
1,085
 
Denver, Colorado, Airport Revenue Bonds, Trust 2365, 13.836%, 11/15/25 – NPFG Insured (IF)
11/16 at 100.00
A+
 
$
1,421,176
 
 
9,880
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/32 – NPFG Insured
No Opt. Call
A
   
3,359,793
 
 
10,000
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 9/01/27 – NPFG Insured
No Opt. Call
A
   
4,922,400
 
     
Eagle River Water and Sanitation District, Eagle County, Colorado, Enterprise Wastewater Revenue Bonds, Series 2012:
           
 
400
 
5.000%, 12/01/32
No Opt. Call
A+
   
422,088
 
 
1,000
 
3.000%, 12/01/32
No Opt. Call
A+
   
795,560
 
 
1,250
 
Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/24 (Pre-refunded 12/15/14) – AGM Insured
12/14 at 100.00
Aa2 (4)
   
1,317,225
 
 
880
 
Park Creek Metropolitan District, Colorado, Senior Limited Property Tax Supported Revenue Refunding Bonds, Series 2011, 6.125%, 12/01/41 –
AGM Insured
12/20 at 100.00
AA–
   
946,000
 
 
1,100
 
Poudre Tech Metro District, Colorado, Unlimited Property Tax Supported Revenue Bonds, Refunding & Improvement Series 2010A, 5.000%, 12/01/39 – AGM Insured
12/20 at 100.00
AA–
   
1,044,659
 
 
5
 
University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured
6/15 at 100.00
Aa2
   
5,220
 
     
University of Colorado, Enterprise System Revenue Bonds, Series 2005:
           
 
320
 
5.000%, 6/01/30 (Pre-refunded 6/01/15) – FGIC Insured
6/15 at 100.00
Aa2 (4)
   
343,507
 
 
175
 
5.000%, 6/01/30 (Pre-refunded 6/01/15) – FGIC Insured
6/15 at 100.00
Aa2 (4)
   
187,856
 
 
46,440
 
Total Colorado
       
36,648,279
 
     
District of Columbia – 1.3% (0.8% of Total Investments)
           
 
1,335
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Tender Option Bond Trust 1606, 11.801%, 10/01/30 – AMBAC Insured (IF) (5)
10/16 at 100.00
AA+
   
1,375,197
 
 
3,920
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Tender Option Bond Trust 1730, 11.793%, 10/01/36 (Pre-refunded 10/01/16) – AMBAC Insured (IF) (5)
10/16 at 100.00
AA+ (4)
   
5,257,347
 
 
5,255
 
Total District of Columbia
       
6,632,544
 
     
Florida – 14.1% (9.6% of Total Investments)
           
 
4,455
 
Broward County School Board, Florida, Certificates of Participation, Series 2005A, 5.000%, 7/01/28 – AGM Insured
7/15 at 100.00
AA–
   
4,676,280
 
 
10,000
 
Cape Coral, Florida, Water and Sewer Revenue Bonds, Refunding Series 2011, 5.000%, 10/01/41 – AGM Insured
10/21 at 100.00
AA–
   
10,204,300
 
 
2,000
 
Citizens Property Insurance Corporation, Florida, High-Risk Account Senior Secured Bonds Series 2010A-1, 5.000%, 6/01/16 – AGM Insured
No Opt. Call
AA–
   
2,207,160
 
 
1,025
 
Cityplace Community Development District, Florida, Special Assessment and Revenue Bonds, Refunding Series 2012, 5.000%, 5/01/26
No Opt. Call
A
   
1,092,496
 
 
3,450
 
Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/24 (Pre-refunded 10/01/14) – NPFG Insured
10/14 at 100.00
AA– (4)
   
3,594,866
 
 
4,000
 
Davie, Florida, Water and Sewerage Revenue Bonds, Series 2011, 5.000%, 10/01/41 – AGM Insured
10/21 at 100.00
AA–
   
4,097,000
 
 
7,000
 
Florida Citizens Property Insurance Corporation, Personal and Commercial Lines Account Bonds, Senior Secured Series 2012A-1, 5.000%, 6/01/22
No Opt. Call
A+
   
7,818,370
 
 
2,550
 
Florida State Board of Education, Public Education Capital Outlay Bonds, Tender Option Bond Trust 2929, 17.349%, 12/01/16 – AGC Insured (IF) (5)
No Opt. Call
AAA
   
3,054,110
 
 
6,000
 
Hillsborough County Aviation Authority, Florida, Revenue Bonds, Tampa International Airport, Subordinate Refunding Series 2013A, 5.000%, 10/01/21 (Alternative Minimum Tax)
No Opt. Call
A
   
6,754,320
 
 
600
 
Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, Refunding Series 2012, 5.000%, 10/01/30
10/22 at 100.00
A1
   
626,292
 
 
1,000
 
Lakeland, Florida, Hospital System Revenue Bonds, Lakeland Regional Health, Refunding Series 2011, 5.000%, 11/15/25
11/21 at 100.00
A2
   
1,053,910
 
 
13,045
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2004A, 5.000%, 10/01/30 – FGIC Insured (Alternative
Minimum Tax)
10/14 at 100.00
A
   
13,076,308
 
 
10,085
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2008B, 5.000%, 10/01/41 – AGM Insured
10/18 at 100.00
AA–
   
10,132,500
 

Nuveen Investments
 
25

 
 

 
 
NQI
Nuveen Quality Municipal Fund, Inc. (continued)
 
Portfolio of Investments October 31, 2013

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Florida (continued)
           
$
4,100
 
Tampa, Florida, Health System Revenue Bonds, Baycare Health System, Series 2012A, 5.000%, 11/15/33
5/22 at 100.00
Aa2
 
$
4,213,201
 
 
2,000
 
Volusia County Educational Facilities Authority, Florida, Revenue Bonds, Embry-Riddle Aeronautical University, Inc. Project, Refunding Series 2011, 5.000%, 10/15/29 – AGM Insured
10/21 at 100.00
AA–
   
2,089,340
 
 
71,310
 
Total Florida
       
74,690,453
 
     
Georgia – 3.4% (2.3% of Total Investments)
           
 
1,000
 
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 5.000%, 11/01/22 (Pre-refunded 11/01/14) – AGM Insured
11/14 at 100.00
AA– (4)
   
1,048,250
 
 
7,000
 
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured
11/19 at 100.00
AA–
   
7,289,100
 
 
2,000
 
City of Fairburn, Georgia, General Obligation Bonds, Series 2011, 5.750%, 12/01/31 – AGM Insured
12/21 at 100.00
AA–
   
2,159,320
 
 
7,295
 
Cobb County Development Authority, Georgia, University Facilities Revenue Bonds, Kennesaw State University Foundations, Student Housing Subordinate Lien Series 2004C, 5.000%, 7/15/36 – NPFG Insured
7/14 at 100.00
A3
   
7,438,712
 
 
17,295
 
Total Georgia
       
17,935,382
 
     
Hawaii – 1.0% (0.7% of Total Investments)
           
 
4,250
 
Hawaii State, General Obligation Bonds, Refunding Series 2011EA,
5.000%, 12/01/20
No Opt. Call
AA
   
5,112,155
 
     
Illinois – 9.7% (6.6% of Total Investments)
           
     
Bolingbrook, Illinois, General Obligation Bonds, Refunding Series 2013A:
           
 
675
 
5.000%, 1/01/25
7/23 at 100.00
Aa3
   
750,377
 
 
1,170
 
5.000%, 1/01/26
7/23 at 100.00
Aa3
   
1,282,636
 
 
3,490