For the 99.92% of the portfolio invested in debt securities.
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Nuveen Dividend Advantage Municipal Fund (NYSE: NAD)
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OBJECTIVE & INVESTMENT STRATEGY
The fund seeks to provide current income exempt from regular federal income tax and to enhance portfolio value.
The fund invests at least 80% of its net assets in municipal bonds rated within the four highest categories (Baa/BBB or better). The fund uses leverage.
DISTRIBUTION HISTORY
KEY INFORMATION REGARDING DISTRIBUTIONS
| Current Distribution (Monthly) (As of 10/1/2010) | $0.0760 |
| Avg. Earnings/Share** ( As of 7/31/2010) | $0.0811 |
| Avg. Earnings/Distribution Ratio ( As of 7/31/2010) | 106.71% |
| Avg. UNII Per Share ( As of 7/31/2010) | $0.1938 |
| Total % of Portfolio Leveraged (As of 7/30/2010) | 31.80% |
| Average Cost of Leverage(13 weeks) (As of 7/30/2010) | 0.45% |
HIGHLIGHTS
-
Seeks to provide
- Attractive monthly tax-free income
- Portfolio diversification
- Attractive after tax total returns
PRICING & DISTRIBUTION
as of
09/01/2010
| Closing Share Price (As of 9/1/2010) | $15.15 |
| Closing NAV per Share (As of 9/1/2010) | $14.88 |
| Premium / Discount | 1.81% |
| Current Distribution Rate (Market price)†† | 6.02% |
| Distribution Amount (Monthly) | $0.0760 |
CAPITAL STRUCTURE
as of
07/30/2010
| Total Managed Assets | $831,394,750 |
| Common Shares | |
|---|---|
| Total Common Net Assets | $567,019,750 |
| Shares Outstanding | 39,287,298 |
| Avg Daily Volume (in shares) | 74,924 |
| Dollar | Percent | |
|---|---|---|
| Total Structural Leverage | $264,375,000 | 31.80% |
| Effective Leverage | $344,085,000 | 37.77% |
| Asset Coverage 1 | More Information |
FUND BASICS
| CUSIP | 67066V101 |
| NAV Ticker | XNADX |
| Inception Date | 5/26/1999 |
| Inception NAV | $14.33 |
| Inception Share Price | $15.00 |
FUND CHARACTERISTICS
as of
07/30/2010
| # of Holdings | 210 |
| % Large, Mid, Small Cap † | 0.0%,0.0%,100.0% |
| % Portfolio Pre-refunded * | 5.04% |
| % AMT * (As of 7/31/2010) | 12.00% |
| Avg. Maturity (years) * | 18.37 |
| Avg. Leverage Adjusted Duration (years) * | 10.51 |
| Avg. Bond Price * | $75.83 |
SHARE PRICE AND NAV HISTORY
Data reflects performance over the previous 12 months
As of
09/01/2010
ASSET ALLOCATION
As of 07/30/2010
CALENDAR YEAR TOTAL RETURNS
As of 08/31/2010
|
Share Price | 16.38% | 45.63% | -20.57% | -10.56% | 13.91% | 4.82% | 2.84% | 10.69% | 9.96% | 10.31% |
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NAV | 11.18% | 29.70% | -17.42% | 0.45% | 6.02% | 5.46% | 7.37% | 8.82% | 13.28% | 6.60% |
ANNUALIZED TOTAL RETURNS
|
|
Share Price | 25.49% | 8.52% | 5.50% | 8.12% | 6.52% |
|
|
NAV | 18.03% | 6.76% | 4.88% | 7.25% | 6.70% |
FUND MANAGER
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| Municipal Bond Investment Expertise Nuveen Asset Management follows a disciplined, research-driven investment approach to uncover fixed-income securities that combine exceptional relative value with above-average return potential. Averaging 10 years of experience through the market's peaks and valleys, the Nuveen team of portfolio managers and research analysts offers: a commitment to thorough research, using Nuveen's proprietary systems and research library, an active, value-oriented investment style that seeks to manage risk while enhancing return and the unsurpassed presence and trading leverage of a powerhouse municipal market leader. |
ANNUAL EXPENSE RATIOS
as of
07/30/2010
| Total Fund | Common Shares | |
|---|---|---|
| Management Fees | 0.63% | 0.94% |
| Other Expenses | 0.30% | 0.45% |
| Total | 0.93% | 1.39% |
See the fund's Annual Report for full information on expenses.
TOP ISSUERS
as of
07/30/2010
| Issuer | Dollar Value | % of Total Portfolio |
|---|---|---|
| Tobacco Settlement: Tobacco Settlement | $49,913,682 | 5.99% |
| Metropolitan Pier a: McCormick Place Ex | $39,254,183 | 4.72% |
| Regional Transporta: Excise Tax Revenue | $31,403,665 | 3.78% |
| Washington State: General Obligation | $28,267,448 | 3.39% |
| Chicago: General Obligation | $26,407,745 | 3.18% |
| E-470 Public Highwa: Toll Revenue Bonds | $21,313,574 | 2.57% |
| Philadelphia: Airport Revenue Bo | $18,924,948 | 2.28% |
| Leander Independent: General Obligation | $17,493,257 | 2.11% |
| University of Chica: General Revenue Bo | $16,063,233 | 1.93% |
| Puerto Rico: Sales Tax Financin | $15,079,436 | 1.81% |
CREDIT QUALITY *,¶
as of
07/30/2010
CALL EXPOSURE *
as of
07/30/2010
Securities subject to call may not be called.
Data shown represents past performance and is no guarantee of future results. Market price and net asset value (NAV) of a Fund's shares will fluctuate with market conditions. Current performance may be higher or lower than the performance shown.
RISKS
Interest Rate RiskInterest rate risk is the risk that fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. Consequently, the net asset value and market price of common shares will tend to decline if market interest rates rise.
Call Risk or Prepayment RiskDuring periods of declining interest rates or for other purposes, issuers may exercise their option to prepay principal earlier than scheduled, forcing the fund to reinvest in lower-yielding securities. This is known as call or prepayment risk.
Reinvestment RiskReinvestment risk is the risk that if market rates decline, income earned from the fund's portfolio must be reinvested at market interest rates that are below the fund portfolio's current earnings rate or that of the original bond that generated the income.
Credit riskThe risk that a security in the fund's portfolio will decline in price, or fail to make dividend or interest payments when due, because the security's issuer defaults or experiences a decline in its financial status. Securities falling lower in a company's capital structure and/or unrated securities and securities with lower credit ratings are expected to have higher credit risk. See subordination.
NOTES
1 The ratio of a fund's total managed assets to the sum of (the fund's outstanding preferred shares, at par, plus its outstanding borrowings).
¶ Holdings and their ratings may change over time. Ratings shown are generally the highest rating given by one or more national rating agencies. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. Holdings designated “NR” are not rated by a national rating agency, and may be assigned an internal rating by the fund’s investment adviser.
* For the 99.92% of the portfolio invested in debt securities.
**The average earnings per share and UNII figures are monthly amounts based on three month averages for the municipal funds and senior loan funds and six month averages for all other taxable funds. For JRS and 25% of JDD, the average earnings per share represents net REIT cash flow which may consist of income, capital gains and/or a return of capital.
† Percentage are relative to the 0.07% of the portfolio invested in equity securities.
†† Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent daily market price and NAV.
Total return is determined by subtracting the initial investment from the redeemable value of the investment at the end of the investment period, dividing the remainder by the initial investment and expressing the result as a percentage. The calculation assumes that all fund distributions have been reinvested.
