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: April 30, 2014

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.


 
 

 

Nuveen Investments to be acquired by TIAA-CREF
 
On April 14, 2014, TIAA-CREF announced that it had entered into an agreement to acquire Nuveen Investments, the parent company of your fund’s investment adviser, Nuveen Fund Advisors, LLC (“NFAL”) and the Nuveen affiliates that act as sub-advisers to the majority of the Nuveen Funds. TIAA-CREF is a national financial services organization with approximately $569 billion in assets under management (as of March 31, 2014) and is a leading provider of retirement services in the academic, research, medical and cultural fields. Nuveen anticipates that it will operate as a separate subsidiary within TIAA-CREF’s asset management business, and that its current leadership and key investment teams will stay in place.
 
Your fund investment will not change as a result of Nuveen’s change of ownership. You will still own the same fund shares and the underlying value of those shares will not change as a result of the transaction. NFAL and your fund’s sub-adviser(s) will continue to manage your fund according to the same objectives and policies as before, and we do not anticipate any significant changes to your fund’s operations. Under the securities laws, the consummation of the transaction will result in the automatic termination of the investment management agreements between the funds and NFAL and the investment sub-advisory agreements between NFAL and each fund’s sub-adviser(s). New agreements will be presented to the funds’ shareholders for approval, and, if approved, will take effect upon consummation of the transaction or such later time as shareholder approval is obtained.
 
The transaction, expected to be completed by year end, is subject to customary closing conditions.
 

 
 

 

Table of Contents

Chairman’s Letter to Shareholders
4
   
Portfolio Managers’ Comments
5
   
Fund Leverage
10
   
Common Share Information
12
   
Risk Considerations
14
   
Performance Overview and Holding Summaries
15
   
Portfolios of Investments
23
   
Statement of Assets and Liabilities
85
   
Statement of Operations
86
   
Statement of Changes in Net Assets
87
   
Statement of Cash Flows
89
   
Financial Highlights
90
   
Notes to Financial Statements
96
   
Additional Fund Information
109
   
Glossary of Terms Used in this Report
110
   
Reinvest Automatically, Easily and Conveniently
112
   
Annual Investment Management Agreement Approval Process
113
 
Nuveen Investments
 
3

 
 

 

Chairman’s Letter to Shareholders
 
 
Dear Shareholders,
 
After significant growth in 2013, domestic and international equity markets have been less compelling during the first part of 2014. Concerns about deflation, political uncertainty in many places and the potential for more fragile economies to impact other countries have produced uncertainty in the markets.
 
Europe is beginning to emerge slowly from recession in mid-2013, with improved GDP and employment trends in some countries. However, Japan’s deflationary headwinds have resurfaced; and China shows signs of slowing from credit distress combined with declines in manufacturing and exports. Most recently, tensions between Russia and Ukraine may continue to hold back stocks and support government bonds in the near term.
 
Despite these headwinds, there are some encouraging signs of forward momentum in the markets. In the U.S., the news is more positive with financial risks slowly receding, positive GDP trends, downward trending unemployment and stronger household finances and corporate spending.
 
It is in such changeable markets that professional investment management is most important. Investment teams who have experienced challenging markets in the past understand how their asset class can behave in rapidly changing times. Remaining committed to their investment disciplines during these times is a critical component to achieving long-term success. In fact, many strong investment track records are established during challenging periods because experienced investment teams understand that volatile markets place a premium on companies and investment ideas that can weather the short-term volatility. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
 
As always, I encourage you to communicate with your financial consultant if you have any questions about your investment in a Nuveen 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.
 
 
William J. Schneider
Chairman of the Board
June 23, 2014
 

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 key investment strategies and the six-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.
 
What key strategies were used to manage these Funds during the six-month reporting period ended April 30, 2014?
 
During this reporting period, we saw the municipal market environment shift from volatility to a more stable atmosphere. As 2014 began, the selling pressure that had been triggered last summer by uncertainty about the Federal Reserve’s (Fed) next steps and headline credit stories involving Detroit and Puerto Rico gave way to increased flows into municipal bond funds, as the Fed remained accommodative and municipal credit fundamentals continued to improve. Municipal bonds rebounded, driven by stronger demand and declining supply. For the reporting period as a whole, municipal bonds nationwide generally produced positive total returns. During this time, 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 and helped keep our Funds fully invested.
 
Despite the challenging environment created by the 20% decrease in municipal bond new issuance during this reporting period, we continued to find opportunities to purchase municipal bonds that helped achieve our goals for the Funds. During this reporting period, NIO, NVG and NEA found value in diversified areas of the market, particularly transportation, higher education, health care and general obligation (GO) bonds. One of our additions in the transportation sector was a new BBB-rated issue from the Foothill/Eastern Transportation Corridor Agency (F/ETCA) in California, which we purchased at attractive prices in December 2013. In one of the largest fixed-rate municipal transactions of 2013, F/ETCA refinanced $2.3 billion in outstanding debt originally issued in 1999. The refinancing extended the agency’s debt from 2040 to 2053, lowered annual payments through 2040 and reduced the maximum annual debt payment. Traffic and revenues on the tollroads in F/ETCA’s 36-mile network, which links major
 

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, Inc. (Moody’s) 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.
 
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers’ ability to meet their commitments.

Nuveen Investments
 
5

 
 

 

Portfolio Managers’ Comments (continued)
 
population centers in Southern California, have increased, and the bonds have performed well for the Funds since purchase. Also in the transportation sector, these three Funds added a new BBB-rated bond offering for the Downtown Crossing bridge across the Ohio River from Indiana to Louisville, Kentucky and NIO and NEA purchased bonds for the Tampa Hillsborough County Expressway Authority in Florida. In higher education, we added bonds issued for Nova Southeastern University and Hodges University, all in Florida and St. Louis College of Pharmacy in Missouri. During this reporting period, we also purchased bonds issued by Catholic Health Initiative, a national non-profit health system that operates hospitals and long-term care facilities in 17 states, for facilities in Colorado and Tennessee. In addition, we increased our exposure to GO bonds issued by the state of Illinois in NIO and NEA. Despite the state’s well-publicized fiscal difficulties, we believe Illinois has taken small positive steps to begin addressing these problems and these holdings have performed well.
 
In NQI, we also were active in areas where we saw value, including transportation, essential services, education and GOs. In addition, we selectively increased our exposure to health care. Among our purchases in the essential services area were bonds issued for the Central Valley Project, a federal water management project that provides irrigation and municipal water to California’s Central Valley by regulating and storing water in the northern half of the state and transporting it to the San Joaquin Valley and surrounding areas. Overall, the additions to NQI were well diversified geographically, including education credits in Texas and Minnesota, transportation bonds in Illinois and New Jersey and GOs in California, Kansas and North Carolina. Another area of focus during this reporting period was duration management. During the prior reporting period, NQI’s duration had extended beyond its target range 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. As a result, many of our purchases during this reporting period involved bonds with intermediate maturities to bring NQI’s duration closer to its benchmark.
 
Also during this reporting period, S&P upgraded its credit rating on National Public Finance Guarantee Corp. (NPFG), the insurance subsidiary of MBIA, to AA- from A, citing NPFG’s strong operating performance and competitive position in the financial guarantee market. As a result, the ratings on the Funds’ holdings of bonds backed by insurance from NPFG were similarly upgraded to AA-rated as of mid-March 2014. This action produced an increase in the percentage of our portfolios held in the AA-rated credit quality category (and a corresponding decrease in the A-rated category), improving the overall credit quality of the Funds. During this reporting period, S&P also upgraded its rating on Assured Guaranty Municipal (AGM) as well as AGM’s municipal-only insurer Municipal Assurance Corp. to AA from AA-.
 
Cash for new purchases during this reporting period was generated primarily by the proceeds from called and matured bonds, which we worked to redeploy to keep the Funds fully invested and support their income streams. The Funds also engaged in some light selling for cashflow management purposes or to take advantage of attractive prices for some of the Funds’ holdings.

6
 
Nuveen Investments

 
 

 

As of April 30, 2014, 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. As part of our duration management strategies, NEA also found it necessary to add an interest rate swap to reduce price volatility risk to movements in U.S. interest rates relative to the Fund’s benchmark. This derivative functioned as intended and remained in place at the end of the reporting period.
 
How did the Funds perform during the six-month reporting period ended April 30, 2014?
 
The tables in each Fund’s Performance Overview and Holding Summaries section of this report provide the Funds’ total returns for the six-month, one-year, five-year and ten-year periods ended April 30, 2014. Each Fund’s total returns at net asset value (NAV) are compared with the performance of a corresponding market index and Lipper classification average.
 
For the six months ended April 30, 2014, the total returns at NAV for all four of these Funds exceeded the return for the national S&P Municipal Bond Index. For the same period, the Funds underperformed the average return for the Lipper General & Insured Leveraged Municipal Debt Funds Classification Average.
 
Key management factors that influenced the Funds’ returns during this reporting period included duration and yield curve positioning, credit exposure and sector allocation. In addition, the use of regulatory leverage was an important positive factor affecting the Funds’ performance. Leverage is discussed in more detail in the Fund Leverage section of this report.
 
As interest rates on longer bonds slipped and the yield curve flattened during this period, municipal bonds with longer maturities generally outperformed those with shorter maturities. Overall, credits with long-intermediate maturities (15 years and longer) outperformed the municipal market as a whole, while bonds at the shortest end of the municipal yield curve produced the weakest results. In general, the Funds’ durations and yield curve positioning were the key contributors to their performance. Consistent with our long-term strategy, these Funds tended to have longer durations than the municipal market in general, with overweightings in the longer parts of the yield curve that performed well and underweightings in the underperforming shorter end of the curve. This was beneficial for the Funds’ performance during this reporting period. Performance differentials among the Funds can be largely ascribed to individual differences in duration and yield curve positioning. Overall, NVG was the most advantageously positioned in terms of duration and yield curve, while NIO had the shortest duration among the four Funds. In NEA, as previously described, we added an interest rate swap to reduce the Fund’s duration, which had exceeded its target. Because the swap reduced NEA’s duration, it detracted somewhat from the Fund’s performance.
 
Credit exposure was another key factor in the Funds’ performance during this six-month reporting period. In general, lower rated bonds were rewarded as the environment shifted from selloff to rally, investors became more risk-tolerant and credit spreads, or the difference in yield spreads between U.S. Treasury securities and comparable investments such as municipal bonds, narrowed. Overall, A-rated credits and lower outperformed those AAA and AA-rated credits. Each of these Funds benefited from its lower rated holdings during this reporting period. This was particularly true in NVG and NEA, which had the largest allocations of A-rated bonds and lower.

Nuveen Investments
 
7

 
 

 

Portfolio Managers’ Comments (continued)
 
For the reporting period, revenue bonds generally outperformed tax-supported bonds as well as the municipal market as a whole. Top performers included the industrial development revenue (IDR) and health care sectors. In addition, transportation (especially lower rated tollroad issues), water and sewer, education and housing credits generally outperformed the municipal market return. All four Funds had double-digit weightings in the health care and transportation sectors, with NEA having the heaviest health care exposure and NIO having the heaviest exposure to transportation. Tobacco credits backed by the 1998 master tobacco settlement agreement also were among the best performing market sectors, due in part to their longer effective durations and lower credit quality. NIO, NVG and NEA were overweight in tobacco bonds, while NQI did not hold any tobacco credits.
 
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, were among the weaker performers. The underperformance of these bonds relative to the market can be attributed primarily to their shorter effective maturities and higher credit quality. Because of the quality and higher yields offered by pre-refunded bonds, we continued to hold these bonds and the Funds tended to be overweighted in this category, with NVG having the largest exposure and NEA the smallest. Utilities and GO bonds also trailed the market for the reporting period, although by a substantially smaller margin than the pre-refunded category.
 
Shareholders also should be aware of two events in the broader municipal bond market that continued to have an impact on the Funds’ holdings and performance: the City of Detroit’s ongoing bankruptcy proceedings and the downgrade of ratings on Puerto Rico GO bonds and related debt to below investment grade. Burdened by decades of population loss, changes in the auto manufacturing industry, and significant tax base deterioration, the City of Detroit filed for Chapter 9 in federal bankruptcy court in July 2013. Given the complexity of its debt portfolio, number of creditors, numerous union contracts, and significant legal questions that must be addressed, Detroit’s bankruptcy filing is expected to be a lengthy one. All of these Funds except NQI had allocations of Detroit water and sewer credits, which are supported by revenue streams generated by service fees. Some of these holdings also were insured. In addition, NIO held positions in insured Detroit GO bonds and insured Detroit City School District credits; the school bonds are not part of the Detroit bankruptcy.
 
In Puerto Rico, the commonwealth’s continued economic weakening, escalating debt service obligations and long-standing inability to deliver a balanced budget led to several downgrades on its debt. Following the most recent round of rating reductions in February 2014, Moody’s, S&P and Fitch Ratings rated Puerto Rico GO debt at Ba2/BB+/BB, respectively, with negative outlooks. Ratings on sales tax bonds issued by the Puerto Rico Sales Tax Financing Corporation (COFINA) also have been lowered, with senior sales tax revenue bonds rated Baa1/AA-/AA- and subordinate sales tax revenue bonds rated Baa2/A+/A+ by Moody’s, S&P and Fitch, respectively, as of April 2014. 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 April 30, 2014, Puerto Rico paper underperformed the municipal market as a whole. During this reporting period, these four Funds had limited exposures to Puerto Rico bonds of less than 1% to 2%. The effect on performance from their Puerto Rico holdings differed from Fund to Fund in line with the type and amount of its position, but on the whole, the small nature of our exposures limited the impact. Puerto Rico bonds were originally added to our portfolios in order to keep assets fully invested and working for the Funds. We found Puerto Rico credits attractive because they offer higher yields, added diversification and triple exemption (i.e., exemption from most federal, state and local taxes).

8
 
Nuveen Investments

 
 

 

At period end, the majority of the Funds’ exposure to Puerto Rico consisted of COFINA sales tax credits, issues that were insured or escrowed and other bonds that Nuveen considers to be of higher quality. NQI, NIO, NVG and NEA began the reporting period with portfolio allocations of 1.0%, 0.5%, 0.7% and 1.6% to Puerto Rico, respectively and ended the reporting period with an exposure to Puerto Rico of 0.7%, 0.4%, 0.5% and 1.6%, respectively. We believe that our decision to maintain limited exposure to Puerto Rico bonds will enable us to participate in any future upside for the commonwealth’s obligations.

Nuveen Investments
 
9

 
 

 

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 positive contribution to the performance of these Funds over this reporting period.
 
As of April 30, 2014, the Funds’ percentages of effective and regulatory leverage are as shown in the accompanying table.

     
NQI
   
NIO
   
NVG
   
NEA
 
Effective Leverage*
   
36.58
%
 
38.32
%
 
36.81
%
 
36.88
%
Regulatory Leverage*
   
30.09
%
 
31.49
%
 
30.43
%
 
30.50
%
 
*
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 April 30, 2014, the Funds have issued and outstanding Variable Rate MuniFund Term Preferred (VMTP) Shares and Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying table.

   
VMTP Shares
 
VRDP Shares
       
Fund
   
Series
   
Shares Issued at Liquidation Value
   
Series
   
Shares Issued at Liquidation Value
   
Total
 
NQI
   
2015
 
$
240,400,000
   
   
 
$
240,000,000
 
NIO
   
   
   
1
 
$
667,200,000
 
$
667,200,000
 
NVG
   
   
   
1
 
$
201,000,000
 
$
201,000,000
 
NEA
   
2016
 
$
151,000,000
   
1
 
$
219,000,000
       
     
 
 
 
 
    2   $ 130,900,000        
         
$
151,000,000
       
$
349,900,000
 
$
500,900,000
 

10
 
Nuveen Investments

 
 

 

During the current reporting period, NVG refinanced all of its outstanding MTP and VMTP Shares with the proceeds from newly issued VRDP Shares. On December 13, 2013, the Fund’s VRDP Shares and NEA refinanced all of its outstanding MTP and VMTP Shares with the proceeds from newly issued VMTP Shares.
 
Refer to Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies for further details on MTP, VMTP and VRDP Shares and each Fund’s respective transactions.

Nuveen Investments
 
11

 
 

 

Common Share Information
 
COMMON SHARE DIVIDEND INFORMATION
 
The following information regarding the Funds’ distributions is current as of April 30, 2014. Each Fund’s distribution levels may vary over time based on each Fund’s investment activity and portfolio investments value changes.
 
During the current reporting period, the Funds’ monthly dividends to common shareholders were as shown in the accompanying table.

   
Per Common Share Amounts
Ex-Dividend Date
   
NQI
   
NIO
   
NVG
   
NEA
 
November 2013
 
$
0.0660
 
$
0.0730
 
$
0.0545
 
$
0.0685
 
December
   
0.0620
   
0.0730
   
0.0545
   
0.0685
 
January
   
0.0620
   
0.0730
   
0.0580
   
0.0685
 
February
   
0.0620
   
0.0730
   
0.0580
   
0.0685
 
March
   
0.0620
   
0.0730
   
0.0580
   
0.0685
 
April 2014
   
0.0620
   
0.0730
   
0.0580
   
0.0685
 
                           
Long-Term Capital Gain*
 
$
 
$
 
$
0.0508
 
$
 
Short-Term Capital Gain*
 
$
 
$
 
$
0.0166
 
$
 
Ordinary Income Distribution*
 
$
0.0011
 
$
0.0048
 
$
0.0001
 
$
0.0002
 
                           
Market Yield**
   
5.73
%
 
6.23
%
 
5.04
%
 
6.17
%
Taxable-Equivalent Yield**
   
7.96
%
 
8.65
%
 
7.00
%
 
8.57
%
 
**
Distribution paid in December 2013.
***
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 April 30, 2014, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes and positive UNII balances for financial reporting purposes.
 
12
 
Nuveen Investments

 
 

 

COMMON SHARE REPURCHASES
 
As of April 30, 2014, 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
   
171,600
   
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
   
   
   
96,342
   
 
Weighted Average Price per Common Share Repurchased and Retired
   
   
 
$
12.49
   
 
Weighted Average Discount per Common Share Repurchased and Retired
   
   
   
13.84
%
 
 
 
OTHER COMMON SHARE INFORMATION
 
As of April 30, 2014, 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
 
$
14.52
 
$
15.18
 
$
15.50
 
$
14.47
 
Common Share Price
 
$
12.99
 
$
14.06
 
$
13.80
 
$
13.33
 
Premium/(Discount) to NAV
   
(10.54
)%
 
(7.38
)%
 
(10.97
)%
 
(7.88
)%
6-Month Average Premium/(Discount) to NAV
   
(11.04
)%
 
(8.33
)%
 
(12.43
)%
 
(9.10
)%

Nuveen Investments
 
13

 
 

 

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.
 
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.
 
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.
 
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.

14
 
Nuveen Investments

 
 

 

NQI
 
 
Nuveen Quality Municipal Fund, Inc.
 
Performance Overview and Holding Summaries as of April 30, 2014
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
 
Average Annual Total Returns as of April 30, 2014
 

 
Cumulative
  Average Annual
 
6-Month
 
1-Year
5-Year
10-Year
 
NQI at Common Share NAV
8.39%
 
(0.82)%
8.98%
5.44%
 
NQI at Common Share Price
9.19%
 
(6.17)%
7.80%
4.91%
 
S&P Municipal Bond Index
4.25%
 
0.47%
5.93%
4.88%
 
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
9.29%
 
(0.78)%
10.51%
6.21%
 
 
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.
 
 
Nuveen Investments
 
15

 
 

 
 
NQI Performance Overview and Holding Summaries as of April 30, 2014 (continued)
 
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
 
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.

Fund Allocation
 
(% of net assets)
 
Municipal Bonds
144.7%
Corporate Bonds
0.0%
Short-Term Investments
0.6%
Floating Rate Obligations
(5.3)%
Variable Rate MuniFund Term
 
Preferred Shares
(43.0)%
Other Assets Less Liabilities
3.0%
   
Credit Quality
 
(as a % of total investment exposure)
 
AAA/U.S. Guaranteed
22.7%
AA
51.8%
A
20.8%
BBB
3.7%
N/R (not rated)
1.0%
   
Portfolio Composition
 
(as a % of total investments)
 
Tax Obligation/Limited
26.0%
Transportation
15.1%
Tax Obligation/General
13.4%
U.S Guaranteed
12.2%
Health Care
12.2%
Water and Sewer
9.0%
Utilities
5.7%
Other Industries
6.4%
   
States
 
(as a % of total municipal bonds)
 
California
10.2%
Florida
9.7%
Texas
7.9%
Illinois
6.9%
Washington
6.3%
Arizona
6.1%
Pennsylvania
5.9%
Colorado
4.7%
Louisiana
3.5%
New York
3.4%
New Jersey
3.3%
Indiana
2.9%
Massachusetts
2.7%
Wisconsin
2.6%
Ohio
2.4%
Nebraska
2.3%
Other States
19.2%

16
 
Nuveen Investments

 
 

 

NIO
 
 
Nuveen Municipal Opportunity Fund, Inc.
 
Performance Overview and Holding Summaries as of April 30, 2014
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
 
Average Annual Total Returns as of April 30, 2014

 
Cumulative
  Average Annual
 6-Month  
1-Year
5-Year
10-Year
NIO at Common Share NAV
8.19%
 
1.02%
8.53%
5.63%
NIO at Common Share Price
11.83%
 
(0.53)%
9.41%
6.08%
S&P Municipal Bond Index
4.25%
 
0.47%
5.93%
4.88%
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
9.29%
 
(0.78)%
10.51%
6.21%
 
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.
 

Nuveen Investments
 
17

 
 

 
 
NIO
Performance Overview and Holding Summaries as of April 30, 2014 (continued)
 
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
 
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.

Fund Allocation
 
(% of net assets)
 
Municipal Bonds
149.0%
Corporate Bonds
0.0%
Floating Rate Obligations
(6.4)%
Variable Rate Demand Preferred Shares
(46.0)%
Other Assets Less Liabilities
3.4%
   
Credit Quality
 
(as a % of total investment exposure)
 
AAA/U.S. Guaranteed
19.0%
AA
56.5%
A
15.1%
BBB
4.4%
BB or Lower
3.6%
N/R (not rated)
1.4%
   
Portfolio Composition
 
(as a % of total investments)
 
Tax Obligation/Limited
22.1%
Transportation
15.4%
Health Care
14.5%
U.S. Guaranteed
12.6%
Tax Obligation/General
10.6%
Water and Sewer
9.2%
Utilities
6.3%
Other Industries
9.3%
   
States
 
(as a % of total municipal bonds)
 
California
13.0%
Florida
11.5%
Illinois
7.6%
Texas
5.6%
Ohio
5.4%
Washington
4.4%
New York
4.4%
Indiana
4.2%
Pennsylvania
3.7%
Colorado
3.3%
Louisiana
2.9%
South Carolina
2.9%
New Jersey
2.8%
Michigan
2.4%
Nevada
2.3%
Arizona
2.2%
Kentucky
1.9%
Other States
19.5%

18
 
Nuveen Investments

 
 

 

NVG
 
 
Nuveen Dividend Advantage Municipal Income Fund
 
Performance Overview and Holding Summaries as of April 30, 2014
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
 
Average Annual Total Returns as of April 30, 2014

 
Cumulative
  Average Annual
 
6-Month
 
1-Year
5-Year
10-Year
NVG at Common Share NAV
8.98%
 
0.36%
7.93%
5.97%
NVG at Common Share Price
11.68%
 
(1.80)%
8.05%
6.20%
S&P Municipal Bond Index
4.25%
 
0.47%
5.93%
4.88%
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
9.29%
 
(0.78)%
10.51%
6.21%
 
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.
 

Nuveen Investments
 
19

 
 

 
 
NVG
Performance Overview and Holding Summaries as of April 30, 2014 (continued)
 
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
 
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.

Fund Allocation
 
(% of net assets)
 
Municipal Bonds
141.3%
Investment Companies
0.3%
Short-Term Investments
3.7%
Floating Rate Obligations
(4.0)%
Variable Rate Demand Preferred Shares
(43.7)%
Other Assets Less Liabilities
2.4%
   
Credit Quality
 
(as a % of total investment exposure)
 
AAA/U.S. Guaranteed
28.8%
AA
42.8%
A
18.0%
BBB
5.7%
BB or Lower
3.9%
N/R (not rated)
0.6%
N/A (not applicable)
0.2%
   
Portfolio Composition
 
(as a % of total investments)
 
Tax Obligation/Limited
22.5%
Health Care
14.4%
U.S. Guaranteed
14.1%
Tax Obligation/General
11.8%
Transportation
11.4%
Education and Civic Organizations
7.5%
Utilities
7.1%
Water and Sewer
5.8%
Investment Companies
0.2%
Other Industries
5.2%
   
States
 
(as a % of total municipal bonds)
 
California
12.8%
Illinois
7.1%
Texas
6.4%
Georgia
5.3%
Colorado
5.0%
Washington
4.7%
Florida
4.6%
New York
4.4%
Indiana
4.0%
Ohio
3.8%
Louisiana
3.7%
Pennsylvania
3.5%
Massachusetts
3.3%
Tennessee
2.6%
Michigan
2.6%
New Jersey
2.5%
South Carolina
2.2%
Nevada
1.7%
Other States
19.8%

20
 
Nuveen Investments

 
 

 

NEA
 
 
Nuveen AMT-Free Municipal Income Fund
 
Performance Overview and Holding Summaries as of April 30, 2014
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
 
Average Annual Total Returns as of April 30, 2014

 
Cumulative
  Average Annual
 
6-Month
 
1-Year
5-Year
10-Year
NEA at Common Share NAV
8.53%
 
(0.13)%
7.15%
5.65%
NEA at Common Share Price
11.28%
 
(2.81)%
7.34%
5.69%
S&P Municipal Bond Index
4.25%
 
0.47%
5.93%
4.88%
Lipper General & Insured Leveraged Municipal Debt Funds Classification Average
9.29%
 
(0.78)%
10.51%
6.21%
 
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.
 

Nuveen Investments
 
21

 
 

 

NEA
Performance Overview and Holding Summaries as of April 30, 2014 (continued)
 
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
 
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.

Fund Allocation
 
(% of net assets)
 
Municipal Bonds
145.2%
Corporate Bonds
0.0%
Short-Term Investments
0.7%
Floating Rate Obligations
(5.0)%
Variable Rate MuniFund Term Preferred Shares
(13.2)%
Variable Rate Demand Preferred Shares
(30.7)%
Other Assets Less Liabilities
3.0%
   
Credit Quality1
 
(as a % of total investment exposure)
 
AAA/U.S. Guaranteed
17.6%
AA
52.6%
A
18.2%
BBB
5.5%
BB or Lower
5.2%
N/R (not rated)
0.9%
   
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
20.7%
Health Care
17.8%
Transportation
13.1%
Tax Obligation/General
10.5%
US Guaranteed
10.3%
Water and Sewer
9.9%
Education and Civic Organizations
7.7%
Other Industries
10.0%
   
States
 
(as a % of municipal bonds)
 
California
12.9%
Illinois
9.2%
Florida
7.0%
New York
5.6%
Pennsylvania
5.2%
Texas
5.0%
New Jersey
4.9%
Colorado
4.6%
Ohio
4.5%
Indiana
4.1%
Louisiana
3.6%
Arizona
3.3%
Washington
3.2%
Massachusetts
2.2%
Nevada
1.8%
South Carolina
1.8%
Georgia
1.8%
Other States
19.3%
 
1
Excluding investments in derivatives.
 
22
 
Nuveen Investments
 
 
 

 
 
NQI
 
 
Nuveen Quality Municipal Fund, Inc.
 
Portfolio of Investments
April 30, 2014 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
LONG-TERM INVESTMENTS – 144.7% (99.6% of Total Investments)
           
     
MUNICIPAL BONDS – 144.7% (99.6% of Total Investments)
           
     
Alabama – 1.7% (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
 
AA– (4)
$
7,365,820
 
     
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
 
1,290,088
 
 
1,000
 
4.250%, 6/01/31 – AGM Insured
6/21 at 100.00
 
AA
 
1,031,780
 
 
9,250
 
Total Alabama
       
9,687,688
 
     
Arizona – 8.8% (6.1% 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+
 
1,383,236
 
 
1,850
 
5.000%, 2/01/21
No Opt. Call
 
BBB+
 
2,093,978
 
 
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
 
10,759,100
 
     
Arizona State, Certificates of Participation, Series 2010A:
           
 
1,200
 
5.250%, 10/01/28 – AGM Insured
10/19 at 100.00
 
AA
 
1,327,452
 
 
1,500
 
5.000%, 10/01/29 – AGM Insured
10/19 at 100.00
 
AA
 
1,633,710
 
 
7,070
 
Arizona State, State Lottery Revenue Bonds, Series 2010A, 5.000%, 7/01/29 – AGC Insured
1/20 at 100.00
 
AA
 
7,677,030
 
 
2,750
 
Mesa, Arizona, Utility System Revenue Bonds, Tender Option Bond Trust, Series 11032-11034, 15.209%, 7/01/26 – AGM Insured (IF)
7/17 at 100.00
 
AA
 
2,904,220
 
 
8,755
 
Phoenix Civic Improvement Corporation, Arizona, Revenue Bonds, Civic Plaza Expansion Project, Series 2005B, 5.500%, 7/01/39 – FGIC Insured
No Opt. Call
 
AA
 
10,628,482
 
 
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–
 
10,957,800
 
 
44,345
 
Total Arizona
       
49,365,008
 
     
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)
 
2,304,833
 
     
California – 14.8% (10.2% of Total Investments)
           
 
3,800
 
California Department of Water Resources, Central Valley Project Water System Revenue Bonds, Series 2012AL, 5.000%, 12/01/15
No Opt. Call
 
AAA
 
4,094,158
 
     
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)
 
226,246
 
 
3,790
 
5.000%, 12/01/24 (Pre-refunded 12/01/14) – NPFG Insured
12/14 at 100.00
 
AAA
 
3,897,598
 
 
205
 
5.000%, 12/01/26 (Pre-refunded 12/01/14)
12/14 at 100.00
 
Aa1 (4)
 
210,820
 
 
3,760
 
5.000%, 12/01/26 (Pre-refunded 12/01/14)
12/14 at 100.00
 
AAA
 
3,866,746
 
 
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+
 
1,134,097
 
 
5,000
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2013A, 5.000%, 8/15/52
8/23 at 100.00
 
AA–
 
5,306,800
 
 
80
 
California State, General Obligation Bonds, Series 2002, 5.000%, 10/01/32 – NPFG Insured
7/14 at 100.00
 
AA–
 
80,298
 
 
5
 
California State, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 – AMBAC Insured
7/14 at 100.00
 
A1
 
5,019
 
 
1,280
 
California State, General Obligation Bonds, Series 2007, 5.000%, 11/01/15
No Opt. Call
 
A1
 
1,372,045
 

Nuveen Investments
 
23

 
 

 

NQI
Nuveen Quality Municipal Fund, Inc.
 
 
Portfolio of Investments (continued)
 
April 30, 2014 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
California (continued)
           
$
7,000
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
8/20 at 100.00
 
AA–
$
8,303,120
 
 
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+
 
1,005,830
 
 
5,000
 
Clovis Unified School District, Fresno County, California, General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 – FGIC Insured (ETM)
No Opt. Call
 
AA+ (4)
 
3,688,950
 
 
5,000
 
Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.125%, 3/01/32 – AMBAC Insured
7/14 at 100.00
 
A
 
5,002,200
 
 
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
 
8,665,920
 
 
5,795
 
Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/25 – AGM Insured
No Opt. Call
 
AA
 
3,844,925
 
 
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
 
1,247,126
 
 
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)
No Opt. Call
 
AA– (4)
 
4,256,460
 
 
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–
 
2,024,140
 
 
1,390
 
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Refunding Second Series 2010C, 5.000%, 5/01/16
No Opt. Call
 
A+
 
1,521,286
 
     
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+
 
2,103,360
 
 
3,655
 
5.000%, 7/01/22 – NPFG Insured
7/15 at 100.00
 
AA+
 
3,840,345
 
 
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
 
AA–
 
8,683,768
 
 
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
 
2,577,470
 
 
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)
 
1,012,310
 
 
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)
 
1,543,773
 
 
3,170
 
Ventura County Community College District, California, General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 (Pre-refunded 8/01/15) – NPFG Insured
8/15 at 100.00
 
AA (4)
 
3,362,007
 
 
83,640
 
Total California
       
82,876,817
 
     
Colorado – 6.8% (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 (Pre-refunded 6/01/15) – AGM Insured
6/15 at 100.00
 
AA (4)
 
2,119,619
 
     
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+
 
1,793,865
 
 
2,895
 
5.000%, 12/01/23
12/22 at 100.00
 
BBB+
 
3,099,908
 
 
4,200
 
5.000%, 12/01/24
12/22 at 100.00
 
BBB+
 
4,432,176
 
 
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–
 
747,926
 
 
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
 
2,867,076
 
 
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+
 
1,100,440
 
 
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
 
AA–
 
5,909,601
 

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, 15.972%, 11/15/25 – NPFG Insured (IF)
11/16 at 100.00
 
AA–
$
1,508,117
 
 
9,880
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/32 – NPFG Insured
No Opt. Call
 
AA–
 
3,765,960
 
 
10,000
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 9/01/27 – NPFG Insured
No Opt. Call
 
AA–
 
5,426,400
 
     
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+
 
437,788
 
 
1,000
 
3.000%, 12/01/32
No Opt. Call
 
A+
 
861,520
 
 
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
 
AA (4)
 
1,287,825
 
 
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
 
974,679
 
 
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
 
1,117,523
 
 
5
 
University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured
6/15 at 100.00
 
Aa2
 
5,218
 
     
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)
 
336,614
 
 
175
 
5.000%, 6/01/30 (Pre-refunded 6/01/15) – FGIC Insured
6/15 at 100.00
 
Aa2 (4)
 
184,086
 
 
46,440
 
Total Colorado
       
37,976,341
 
     
District of Columbia – 1.2% (0.8% of Total Investments)
           
 
1,335
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Tender Option Bond Trust 1606, 11.656%, 10/01/30 – AMBAC Insured (IF) (5)
10/16 at 100.00
 
AA+
 
1,421,895
 
 
3,920
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Tender Option Bond Trust 1730, 11.648%, 10/01/36 (Pre-refunded 10/01/16) – AMBAC Insured (IF) (5)
10/16 at 100.00
 
AA+ (4)
 
5,060,681
 
 
5,255
 
Total District of Columbia
       
6,482,576
 
     
Florida – 14.1% (9.7% 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
 
4,660,821
 
 
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
 
10,593,400
 
 
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
 
2,183,520
 
 
1,025
 
Cityplace Community Development District, Florida, Special Assessment and Revenue Bonds, Refunding Series 2012, 5.000%, 5/01/26
No Opt. Call
 
A
 
1,123,523
 
 
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)
 
3,517,896
 
 
4,000
 
Davie, Florida, Water and Sewerage Revenue Bonds, Series 2011, 5.000%, 10/01/41 – AGM Insured
10/21 at 100.00
 
AA
 
4,240,000
 
 
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+
 
8,124,760
 
 
2,550
 
Florida State Board of Education, Public Education Capital Outlay Bonds, Tender Option Bond Trust 2929, 17.326%, 12/01/16 – AGC Insured (IF) (5)
No Opt. Call
 
AAA
 
3,656,471
 
 
1,560
 
Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006, 5.000%, 6/01/38
6/16 at 100.00
 
BBB+
 
1,563,292
 
 
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
 
6,930,840
 
 
600
 
Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, Refunding Series 2012, 5.000%, 10/01/30
10/22 at 100.00
 
A1
 
650,772
 
 
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
 
1,082,290
 

Nuveen Investments
 
25

 
 

 

NQI
Nuveen Quality Municipal Fund, Inc.
 
 
Portfolio of Investments (continued)
 
April 30, 2014 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Florida (continued)
           
$
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
 
AA–
$
13,100,441
 
 
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
 
10,479,122
 
 
4,100
 
Tampa, Florida, Health System Revenue Bonds, Baycare Health System, Series 2012A, 5.000%, 11/15/33
5/22 at 100.00
 
Aa2
 
4,421,891
 
 
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
 
2,171,480
 
 
72,870
 
Total Florida
       
78,500,519
 
     
Georgia – 3.3% (2.2% 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)
 
1,024,510
 
 
7,000
 
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured
11/19 at 100.00
 
AA
 
7,571,690
 
 
2,000
 
City of Fairburn, Georgia, General Obligation Bonds, Series 2011, 5.750%, 12/01/31 – AGM Insured
12/21 at 100.00
 
AA
 
2,231,840
 
 
6,355
 
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
 
6,410,543
 
 
940
 
Cobb County Development Authority, Georgia, University Facilities Revenue Bonds, Kennesaw State University Foundations, Student Housing Subordinate Lien Series 2004C, 5.000%, 7/15/36 (Pre-refunded 7/15/14) – NPFG Insured
7/14 at 100.00
 
A3 (4)
 
949,494
 
 
17,295
 
Total Georgia
       
18,188,077
 
     
Hawaii – 0.9% (0.6% of Total Investments)
           
 
4,250
 
Hawaii State, General Obligation Bonds, Refunding Series 2011EA, 5.000%, 12/01/20
No Opt. Call
 
AA
 
5,087,293
 
     
Illinois – 10.1% (6.9% of Total Investments)
           
     
Bolingbrook, Illinois, General Obligation Bonds, Refunding Series 2013A:
           
 
675
 
5.000%, 1/01/25
7/23 at 100.00
 
Aa3
 
764,843
 
 
1,170
 
5.000%, 1/01/26
7/23 at 100.00
 
Aa3
 
1,310,973
 
 
3,490
 
Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Refunding Series 2005A, 5.500%, 12/01/30 – AMBAC Insured
No Opt. Call
 
A+
 
3,823,784
 
 
2,235
 
Chicago Transit Authority, Illinois, Capital Grant Receipts Revenue Bonds, Federal Transit Administration Section 5307 Urbanized Area Formula Funds, Refunding Series 2011, 5.250%, 6/01/26 – AGM Insured
6/21 at 100.00
 
AA
 
2,484,091
 
 
1,775
 
Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien Series 2005A, 5.250%, 1/01/24 – NPFG Insured
1/16 at 100.00
 
AA–
 
1,875,678
 
 
2,660
 
Cook County, Illinois, General Obligation Bonds, Refunding Series 2007B, 5.000%, 11/15/21 – NPFG Insured
11/17 at 100.00
 
AA
 
2,920,574
 
 
2,240
 
Illinois Finance Authority, Revenue Bonds, The Carle Foundation, Series 2011A, 6.000%, 8/15/41 – AGM Insured
8/21 at 100.00
 
AA
 
2,531,357
 
 
1,150
 
Illinois Finance Authority, Revenue Bonds, The University of Chicago Medical Center, Series 2011C, 5.500%, 8/15/41
2/21 at 100.00
 
AA–
 
1,241,345
 
 
825
 
Illinois State, General Obligation Bonds, Refunding Series 2012, 5.000%, 8/01/25
8/22 at 100.00
 
A–
 
909,785
 
 
455
 
Illinois State, General Obligation Bonds, Series 2013, 5.500%, 7/01/38
7/23 at 100.00
 
A–
 
497,247
 
 
7,400
 
Macon County School District 61 Decatur, Illinois, General Obligation Bonds, Series 2011A, 5.250%, 1/01/37 – AGM Insured
1/21 at 100.00
 
A2
 
7,920,738
 
 
15,000
 
Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Refunding Bonds, Series 2012B, 5.000%, 6/15/52
6/22 at 100.00
 
AAA
 
15,324,900
 
 
5,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%,
6/15/45 – AGM Insured
No Opt. Call
 
AAA
 
943,550
 

26
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Illinois (continued)
           
$
18,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/24 – NPFG Insured
No Opt. Call
 
AAA
$
12,134,880
 
 
1,575
 
Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 2014A, 4.000%, 6/01/16
No Opt. Call
 
AA
 
1,690,778
 
 
63,650
 
Total Illinois
       
56,374,523
 
     
Indiana – 4.2% (2.9% of Total Investments)
           
 
4,100
 
Indiana Finance Authority, Provate Activity Bonds, Ohio River Bridges East End Crossing Project, Series 2013A, 5.000%, 7/01/48 (Alternative Minimum Tax)
7/23 at 100.00
 
BBB
 
4,169,126
 
 
11,130
 
Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, Series 2011B, 5.000%, 10/01/41
10/21 at 100.00
 
AA–
 
11,674,146
 
 
3,680
 
Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured
1/17 at 100.00
 
AA–
 
3,869,741
 
 
3,375
 
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 1990A, 7.250%, 6/01/15 – AMBAC Insured
No Opt. Call
 
AA+
 
3,492,788
 
 
500
 
Valparaiso, Indiana, Exempt Facilities Revenue Bonds, Pratt Paper LLC Project, Series 2013, 5.875%, 1/01/24 (Alternative Minimum Tax)
No Opt. Call
 
N/R
 
535,160
 
 
22,785
 
Total Indiana
       
23,740,961
 
     
Iowa – 0.2% (0.1% of Total Investments)
           
 
1,000
 
Iowa Finance Authority, State Revolving Fund Revenue Bonds, Series 2010A, 5.000%, 8/01/15
No Opt. Call
 
AAA
 
1,060,590
 
     
Kansas – 1.0% (0.7% of Total Investments)
           
 
5,500
 
Kansas Development Finance Authority, Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40
1/20 at 100.00
 
AA–
 
5,723,850
 
     
Kentucky – 1.0% (0.7% of Total Investments)
           
 
3,015
 
Kentucky Asset/Liability Commission, General Fund Revenue Project Notes, First Series 2005, 5.000%, 5/01/25 – NPFG Insured
5/15 at 100.00
 
AA–
 
3,133,640
 
 
2,230
 
Kentucky State Property and Buildings Commission, Revenue Bonds, Project 85, Series 2005, 5.000%, 8/01/23 (Pre-refunded 8/01/15) – AGM Insured
8/15 at 100.00
 
AA (4)
 
2,364,469
 
 
5,245
 
Total Kentucky
       
5,498,109
 
     
Louisiana – 5.1% (3.5% of Total Investments)
           
 
1,000
 
Lafayette Public Power Authority, Louisiana, Electric Revenue Bonds, Series 2012, 5.000%, 11/01/29
No Opt. Call
 
A+
 
1,110,660
 
     
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A:
           
 
11,325
 
4.750%, 5/01/39 – AGM Insured
5/16 at 100.00
 
Aa1
 
11,892,836
 
 
8,940
 
4.500%, 5/01/41 – FGIC Insured (UB)
5/16 at 100.00
 
Aa1
 
9,213,922
 
 
10
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-1, 16.195%, 5/01/34 – NPFG Insured (IF)
5/16 at 100.00
 
Aa1
 
11,225
 
 
5
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-3, 16.163%, 5/01/34 – NPFG Insured (IF)
5/16 at 100.00
 
Aa1
 
5,611
 
 
5,000
 
Louisiana State, General Obligation Bonds, Series 2012C, 5.000%, 7/15/21
No Opt. Call
 
AA
 
6,019,950
 
 
26,280
 
Total Louisiana
       
28,254,204
 
     
Maine – 0.3% (0.2% of Total Investments)
           
 
1,465
 
Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2012A-1, 4.000%, 11/15/24 – AGM Insured (Alternative Minimum Tax)
11/21 at 100.00
 
AA+
 
1,523,278
 
     
Maryland – 0.2% (0.1% of Total Investments)
           
 
1,000
 
Baltimore County, Maryland, General Obligation Bonds, Consolidated Public Improvement, Series 2012, 5.000%, 8/01/15
No Opt. Call
 
AAA
 
1,060,850
 

Nuveen Investments
 
27

 
 

 

NQI
Nuveen Quality Municipal Fund, Inc.
 
 
Portfolio of Investments (continued)
 
April 30, 2014 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Massachusetts – 4.0% (2.7% of Total Investments)
           
$
1,330
 
Massachusetts College Building Authority, Project Revenue Bonds, Series 2014A, 2.000%, 5/01/15
No Opt. Call
 
AA
$
1,354,672
 
 
4,000
 
Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35
1/20 at 100.00
 
AA+
 
4,294,240
 
 
6,000
 
Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 – AMBAC Insured
No Opt. Call
 
A
 
7,188,360
 
 
3,335
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Massachusetts Institute of Technology, Tender Option Bond Trust 11824, 13.704%, 1/01/16 (IF)
No Opt. Call
 
AAA
 
4,544,771
 
 
3,465
 
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB) (5)
2/17 at 100.00
 
AA+
 
3,537,211
 
 
1,245
 
Springfield Water and Sewerage Commission, Massachusetts, General Revenue Bonds, Refunding Series 2010B, 5.000%, 11/15/30 – AGC Insured
11/20 at 100.00
 
AA
 
1,376,696
 
 
19,375
 
Total Massachusetts
       
22,295,950
 
     
Michigan – 2.9% (2.0% of Total Investments)
           
 
1,825
 
Marysville Public School District, St Claire County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/28 – AGM Insured
5/17 at 100.00
 
AA
 
1,993,959
 
 
2,750
 
Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2011-II-A, 5.375%, 10/15/36
10/21 at 100.00
 
Aa3
 
3,022,388
 
 
10,585
 
Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39
11/19 at 100.00
 
A2
 
11,361,410
 
 
15,160
 
Total Michigan
       
16,377,757
 
     
Minnesota – 0.9% (0.6% of Total Investments)
           
 
1,000
 
Minneapolis-Saint Paul Housing and Redevelopment Authority, Minnesota, Health Care Revenue Bonds, Children’s Health Care, Series 2004A-1 Remarketed, 4.625%, 8/15/29 – AGM Insured
8/20 at 100.00
 
AA
 
1,067,060
 
 
3,500
 
Moorhead Independent School District 152, Clay County, Minnesota, General Obligation Bonds, Refunding School Building Series 2014A, 5.000%, 4/01/17
No Opt. Call
 
Aa2
 
3,942,855
 
 
4,500
 
Total Minnesota
       
5,009,915
 
     
Mississippi – 1.1% (0.8% of Total Investments)
           
 
5,445
 
Mississippi Development Bank, Special Obligation Bonds, Gulfport Water and Sewer System Project, Series 2005, 5.250%, 7/01/24 – AGM Insured
No Opt. Call
 
AA
 
6,124,590
 
     
Nebraska – 3.3% (2.3% of Total Investments)
           
 
4,405
 
Central Plains Energy Project, Nebraska, Gas Project 3 Revenue Bonds, Series 2012, 5.000%, 9/01/32
9/22 at 100.00
 
A
 
4,618,863
 
 
12,155
 
Lincoln, Nebraska, Electric System Revenue Bonds, Series 2007A, 4.500%, 9/01/37 – FGIC Insured (UB) (5)
9/17 at 100.00
 
AA
 
12,493,517
 
 
1,225
 
Lincoln, Nebraska, Water Revenue Bonds, Refunding Series 2013, 5.000%, 8/15/20
No Opt. Call
 
Aa1
 
1,463,361
 
 
17,785
 
Total Nebraska
       
18,575,741
 
     
Nevada – 2.0% (1.3% of Total Investments)
           
     
Clark County, Nevada, Airport Revenue Bonds, Jet Aviation Fuel Tax, Refunding Series 2013A:
           
 
2,500
 
5.000%, 7/01/25 (Alternative Minimum Tax)
1/23 at 100.00
 
A
 
2,772,325
 
 
2,500
 
5.000%, 7/01/26 (Alternative Minimum Tax)
1/23 at 100.00
 
A
 
2,738,125
 
 
5,000
 
5.000%, 7/01/27 (Alternative Minimum Tax)
1/23 at 100.00
 
A
 
5,433,700
 
 
10,000
 
Total Nevada
       
10,944,150
 
     
New Jersey – 4.8% (3.3% of Total Investments)
           
     
New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A:
           
 
1,700
 
5.000%, 7/01/22 – NPFG Insured
7/14 at 100.00
 
AA–
 
1,712,631
 
 
1,700
 
5.000%, 7/01/23 – NPFG Insured
7/14 at 100.00
 
AA–
 
1,712,223
 
 
5,000
 
New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2013NN, 5.000%, 3/01/23
No Opt. Call
 
A1
 
5,814,750
 

28
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
New Jersey (continued)
           
$
3,850
 
New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/15 – AMBAC Insured
No Opt. Call
 
A
$
4,123,004
 
 
2,000
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital Appreciation Series 2010A, 0.000%, 12/15/26
No Opt. Call
 
A1
 
1,192,720
 
 
4,475
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2007A, 5.000%, 12/15/34 – AMBAC Insured
No Opt. Call
 
AA+
 
4,988,506
 
 
6,000
 
New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured
No Opt. Call
 
AA
 
7,199,400
 
 
24,725
 
Total New Jersey
       
26,743,234
 
     
New Mexico – 0.8% (0.6% of Total Investments)
           
     
New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C:
           
 
1,345
 
5.000%, 6/01/22 (Pre-refunded 6/01/14) – AMBAC Insured
6/14 at 100.00
 
AAA
 
1,350,595
 
 
3,290
 
5.000%, 6/01/23 (Pre-refunded 6/01/14) – AMBAC Insured
6/14 at 100.00
 
AAA
 
3,303,686
 
 
4,635
 
Total New Mexico
       
4,654,281
 
     
New York – 4.9% (3.4% of Total Investments)
           
 
50
 
Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2002D, 5.500%, 10/01/17 – NPFG Insured
7/14 at 100.00
 
AA–
 
50,217
 
 
4,080
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured
2/17 at 100.00
 
AA–
 
4,091,057
 
 
2,890
 
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 – FGIC Insured
6/16 at 100.00
 
AA–
 
3,092,705
 
 
3,300
 
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2006F, 4.250%, 5/01/33 – NPFG Insured
11/16 at 100.00
 
AA–
 
3,312,375
 
 
2,000
 
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%, 5/01/36 – AGM Insured
5/21 at 100.00
 
AA
 
2,117,960
 
 
1,290
 
Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochestor Project, Series 2010, 5.500%, 8/15/40
2/21 at 100.00
 
Aa2
 
1,465,879
 
 
1,740
 
New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005, Trust 2364, 17.361%, 11/15/44 – AMBAC Insured (IF)
11/15 at 100.00
 
AA+
 
2,105,957
 
 
430
 
New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 – AGM Insured
11/14 at 100.00
 
AA
 
431,023
 
     
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2005B:
           
 
2,460
 
5.000%, 3/15/24 (Pre-refunded 3/15/15) – AGM Insured
3/15 at 100.00
 
AAA
 
2,564,894
 
 
2,465
 
5.000%, 3/15/25 (Pre-refunded 3/15/15) – AGM Insured
3/15 at 100.00
 
AAA
 
2,570,108
 
 
5,000
 
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2010A, 5.000%, 3/15/17
No Opt. Call
 
AAA
 
5,632,050
 
 
25,705
 
Total New York
       
27,434,225
 
     
North Carolina – 0.4% (0.3% of Total Investments)
           
 
2,140
 
North Carolina State, General Obligation Bonds, Refunding Series 2013C, 3.500%, 5/01/16
No Opt. Call
 
AAA
 
2,275,976
 
     
North Dakota – 1.0% (0.7% of Total Investments)
           
     
Williston Parks and Recreation District, North Dakota, Sales Tax & Gross Revenue Bonds, Series 2012A:
           
 
600
 
3.000%, 3/01/18
No Opt. Call
 
A
 
625,182
 
 
970
 
4.000%, 3/01/19
No Opt. Call
 
A
 
1,047,765
 
 
1,085
 
5.000%, 3/01/21
No Opt. Call
 
A
 
1,227,905
 
 
2,830
 
Williston, North Dakota, Limited Obligation Bonds, Certificates of Indebtedness, Series 2013A, 2.500%, 11/01/15
11/14 at 100.00
 
N/R
 
2,842,820
 
 
5,485
 
Total North Dakota
       
5,743,672
 

Nuveen Investments
 
29

 
 

 
 
NQI
Nuveen Quality Municipal Fund, Inc.
 
 
Portfolio of Investments (continued)
 
April 30, 2014 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Ohio – 3.5% (2.4% of Total Investments)
           
$
7,000
 
Cleveland State University, Ohio, General Receipts Bonds, Series 2004, 5.250%, 6/01/19 (Pre-refunded 6/01/14) – FGIC Insured
6/14 at 100.00
 
AA- (4)
$
7,030,940
 
 
9,045
 
Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006A, 4.250%, 12/01/32 – AMBAC Insured
12/16 at 100.00
 
A+
 
9,140,787
 
 
3,065
 
Oak Hills Local School District, Hamilton County, Ohio, General Obligation Bonds, Refunding Series 2005, 5.000%, 12/01/24 – AGM Insured
12/15 at 100.00
 
AA
 
3,259,536
 
 
19,110
 
Total Ohio
       
19,431,263
 
     
Pennsylvania – 8.5% (5.9% of Total Investments)
           
 
3,000
 
Allegheny County Sanitary Authority, Pennsylvania, Sewer Revenue Bonds, Series 2005A, 5.000%, 12/01/23 – NPFG Insured
12/15 at 100.00
 
AA–
 
3,191,400
 
 
1,165
 
Allegheny County Sanitary Authority, Pennsylvania, Sewer Revenue Bonds, Series 2010, 5.000%, 6/01/40 – AGM Insured
12/20 at 100.00
 
AA
 
1,221,176
 
 
6,015
 
Chester County Health and Educational Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010A, 5.000%, 5/15/40
5/20 at 100.00
 
AA
 
6,300,352
 
 
1,600
 
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006, 5.000%, 8/01/24 – AMBAC Insured
8/16 at 100.00
 
A+
 
1,740,160
 
 
2,450
 
Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured
1/20 at 100.00
 
AA
 
2,587,690
 
 
3,750
 
Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38
8/20 at 100.00
 
AA
 
4,109,588
 
 
5,400
 
Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured
12/16 at 100.00
 
AA
 
5,462,208
 
     
Philadelphia, Pennsylvania, Airport Revenue Bonds, Series 2010A:
           
 
5,000
 
5.000%, 6/15/35 – AGM Insured
6/20 at 100.00
 
AA
 
5,234,450
 
 
7,850
 
5.000%, 6/15/40 – AGM Insured
6/20 at 100.00
 
AA
 
8,170,673
 
 
2,000
 
Pittsburgh Public Parking Authority, Pennsylvania, Parking Revenue Bonds, Series 2005B, 5.000%, 12/01/23 – FGIC Insured
12/15 at 100.00
 
AA–
 
2,044,440
 
     
Scranton, Pennsylvania, Sewer Authority Revenue Bonds, Series 2011A:
           
 
1,125
 
5.250%, 12/01/31 – AGM Insured
12/21 at 100.00
 
AA
 
1,220,411
 
 
1,000
 
5.500%, 12/01/35 – AGM Insured
12/21 at 100.00
 
AA
 
1,087,390
 
 
5,790
 
Susquehanna Area Regional Airport Authority, Pennsylvania, Airport System Revenue Bonds, Series 2012B, 4.000%, 1/01/33
No Opt. Call
 
Baa3
 
5,381,631
 
 
46,145
 
Total Pennsylvania
       
47,751,569
 
     
Puerto Rico – 1.0% (0.7% of Total Investments)
           
 
5,000
 
Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/16 – FGIC Insured (ETM)
No Opt. Call
 
BB+ (4)
 
5,560,050
 
     
South Carolina – 2.7% (1.9% of Total Investments)
           
 
5,000
 
South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Refunding Series 2011B, 5.000%, 12/01/21
No Opt. Call
 
AA–
 
5,946,800
 
 
8,950
 
South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2007A, 4.500%, 10/01/34 – SYNCORA GTY Insured
10/16 at 100.00
 
A1
 
9,171,960
 
 
13,950
 
Total South Carolina
       
15,118,760
 
     
South Dakota – 0.9% (0.6% of Total Investments)
           
     
South Dakota Health and Educational Facilities Authority, Revenue Bonds, Avera Health, Series 2012A:
           
 
250
 
5.000%, 7/01/27
7/21 at 100.00
 
AA–
 
270,700
 
 
4,350
 
5.000%, 7/01/42
7/21 at 100.00
 
AA–
 
4,544,097
 
 
4,600
 
Total South Dakota
       
4,814,797
 

30
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Texas – 11.5% (7.9% of Total Investments)
           
$
2,280
 
Bexar County, Texas, Venue Project Revenue Bonds, Refunding Series 2010, 5.500%, 8/15/49 – AGM Insured
8/19 at 100.00
 
AA
$
2,433,216
 
 
1,700
 
Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, 6.250%, 1/01/46
1/21 at 100.00
 
Baa2
 
1,865,546
 
 
1,500
 
Clifton Higher Education Finance Corporation, Texas, Education Revenue Bonds, Idea Public Schools, Series 2012, 3.750%, 8/15/22
No Opt. Call
 
BBB
 
1,530,540
 
 
3,135
 
Corpus Christi, Texas, Utility System Revenue Bonds, Refunding & Improvement Series 2004, 5.250%, 7/15/20 (Pre-refunded 7/15/14) – AGM Insured
7/14 at 100.00
 
AA (4)
 
3,168,450
 
 
5,000
 
Dallas-Fort Worth International Airport, Texas, Joint Revenue Bonds, Improvement Series 2013C, 5.000%, 11/01/38 (Alternative Minimum Tax)
11/22 at 100.00
 
A+
 
5,166,100
 
 
3,355
 
Deer Park Independent School District, Harris County, Texas, Limited Tax School Building and Refunding Bonds, Series 2013, 5.000%, 2/15/23
2/22 at 100.00
 
AAA
 
4,024,557
 
 
4,000
 
Harris County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Memorial Hermann Healthcare System, Series 2008B, 7.250%, 12/01/35 (Pre-refunded 12/01/18)
12/18 at 100.00
 
A1 (4)
 
5,093,000
 
     
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Facilities Department, Refunding Series 2011B:
           
 
3,500
 
5.125%, 9/01/32 – AGM Insured
9/16 at 100.00
 
AA
 
3,619,595
 
 
2,055
 
5.125%, 9/01/33 – AGM Insured
9/16 at 100.00
 
AA
 
2,124,274
 
 
17,000
 
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 – AGM Insured (ETM)
No Opt. Call
 
AA (4)
 
23,138,360
 
 
2,410
 
Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Baylor Health Care System, Series 2011A, 5.000%, 11/15/30
11/21 at 100.00
 
Aa3
 
2,621,935
 
     
Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series 2012:
           
 
2,500
 
5.000%, 12/15/29
No Opt. Call
 
A3
 
2,606,575
 
 
2,500
 
5.000%, 12/15/30
No Opt. Call
 
A3
 
2,592,025
 
 
800
 
5.000%, 12/15/32
No Opt. Call
 
A3
 
824,256
 
 
3,000
 
Texas State Transportation Commission, Highway Fund Revenue Bonds, First Tier Series 2014A, 5.000%, 4/01/22
No Opt. Call
 
AAA
 
3,650,070
 
 
54,735
 
Total Texas
       
64,458,499
 
     
Utah – 0.8% (0.6% of Total Investments)
           
 
3,615
 
Utah Transit Authority, Sales Tax Revenue Bonds, Tender Option Bond Trust R-11752, 12.844%, 6/15/27 – AGM Insured (IF)
6/18 at 100.00
 
AAA
 
4,637,684
 
     
Vermont – 0.4% (0.2% of Total Investments)
           
 
2,000
 
Vermont Economic Development Authority, Mortgage Revenue Bonds, Wake Robin Corporation Project, Refunding Series 2006A, 5.375%, 5/01/36
5/16 at 100.00
 
N/R
 
2,013,060
 
     
Washington – 9.1% (6.3% of Total Investments)
           
 
10,355
 
King County School District 403 Renton, Washington, General Obligation Bonds, Series 2012, 5.000%, 12/01/19
No Opt. Call
 
AA+
 
12,272,435
 
 
8,000
 
King County, Washington, Sewer Revenue Bonds, Series 2007, 5.000%, 1/01/42 – AGM Insured
7/17 at 100.00
 
AA+
 
8,648,720
 
 
1,665
 
King County, Washington, Sewer Revenue Bonds, Tender Option Bond Trust 3090, 13.606%, 7/01/32 – AGM Insured (IF) (5)
7/17 at 100.00
 
AA+
 
2,140,924
 
 
1,970
 
Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research Center, Series 2011A, 5.625%, 1/01/35
1/21 at 100.00
 
A
 
2,101,005
 
 
10,000
 
Washington State, General Obligation Bonds, Refunding Various Purpose Series 2012R-13A, 5.000%, 7/01/21
No Opt. Call
 
AA+
 
11,968,800
 
 
21,510
 
Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2002-03C, 0.000%, 6/01/28 – NPFG Insured (UB) (5)
No Opt. Call
 
AA+
 
13,545,923
 
 
53,500
 
Total Washington
       
50,677,807
 

Nuveen Investments
 
31

 
 

 

NQI
Nuveen Quality Municipal Fund, Inc.
 
 
Portfolio of Investments (continued)
 
April 30, 2014 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
West Virginia – 1.7% (1.2% of Total Investments)
           
$
8,655
 
West Virginia Hospital Finance Authority, Hospital Revenue Bonds, West Virginia United Health System Obligated Group, Refunding and Improvement Series 2013A, 5.500%, 6/01/44
6/23 at 100.00
 
A
$
9,469,868
 
     
Wisconsin – 3.8% (2.6% of Total Investments)
           
 
1,635
 
Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%, 11/01/26 (Pre-refunded 11/01/14) – AGM Insured
11/14 at 100.00
 
Aa2 (4)
 
1,674,845
 
 
3,390
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, Series 2012B, 4.500%, 2/15/40
2/22 at 100.00
 
A–
 
3,369,321
 
 
11,000
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Mercy Alliance, Inc., Series 2012, 5.000%, 6/01/32
6/22 at 100.00
 
A2
 
11,605,440
 
 
1,250
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Meriter Hospital, Inc., Series 2011A, 5.750%, 5/01/35
5/21 at 100.00
 
A
 
1,379,250
 
 
1,000
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Three Pillars Senior Living Communities, Refunding Series 2013, 5.000%, 8/15/33
8/23 at 100.00
 
A–
 
1,047,620
 
 
1,000
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2006B, 5.125%, 8/15/30
8/16 at 100.00
 
A–
 
1,022,360
 
 
1,000
 
Wisconsin Public Power Incorporated System, Power Supply System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 – AMBAC Insured