Edgar Filing: NUVEEN TAX ADVANTAGED TOTAL RETURN STRATEGY FUND

Nuveen Tax-Advantaged Total Return Strategy Fund

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 811-21471

Nuveen Tax-Advantaged Total Return Strategy Fund

(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: December 31

Date of reporting period: June 30, 2008

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 SHAREHOLDERS


Semi-Annual Report June 30, 2008			Nuveen Investments Closed-End Funds


		NUVEEN TAX-ADVANTAGED TOTAL RETURN STRATEGY FUND JTA

Opportunities for Capital Appreciation and Tax-Advantaged

Distributions from a Portfolio of Value Equities and Senior Loans


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Chairman’s

LETTER TO SHAREHOLDERS


			ï Robert P. Bremner ï Chairman of the Board

Dear Fellow Shareholders:

I’d like to use my initial letter to you to accomplish several things. First, I want to report that after fourteen years of service on your Fund’s Board, including the last twelve as chairman, Tim Schwertfeger retired from the Board in June. The Board has elected me to replace him as the chairman, the first time this role has been filled by someone who is not an employee of Nuveen Investments. Electing an independent chairman marks a significant milestone in the management of your Fund, and it aligns us with what is now considered a “best practice” in the fund industry. Further, it demonstrates the independence with which your Board has always acted on your behalf.

Following Tim will not be easy. During my eleven previous years on the Nuveen Fund Board, I found that Tim always set a very high standard by combining insightful industry and market knowledge and sound, clear judgment. While the Board will miss his wise counsel, I am certain we will retain the primary commitment Tim shared with all of us — an unceasing dedication to creating and retaining value for Nuveen Fund shareholders. This focus on value over time is a touchstone that I and all the other Board members will continue to use when making decisions on your behalf.

Second, I also want to report that we are very fortunate to be welcoming two new Board members to our team. John Amboian, the current chairman and CEO of Nuveen Investments, has agreed to replace Tim as Nuveen’s representative on the Board. John’s presence will allow the independent Board members to benefit not only from his leadership role at Nuveen but also his broad understanding of the fund industry and Nuveen’s role within it. We also are adding Terry Toth as an independent director. A former CEO of the Northern Trust Company’s asset management group, Terry will bring extensive experience in the fund industry to our deliberations.

Third, on behalf of the entire Board, I would like to acknowledge the effort the whole Nuveen organization is making to resolve the auction rate preferred share situation in a satisfactory manner. As you know, we are actively pursuing a number of possible solutions, all with the goal of providing liquidity for preferred shareholders while preserving the potential benefits of leverage for common shareholders. We appreciate the patience you have shown as we’ve worked through the many details involved.

Finally, I urge you to take the time to review the Portfolio Managers’ Comments, the Common Share Distribution and Share Price Information, and the Performance Overview sections of this report. All of us are grateful that you have chosen Nuveen Investments as a partner as you pursue your financial goals, and, on behalf of myself and the other members of your Fund’s Board, let me say we look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

Robert P. Bremner
Chairman of the Board
August 22, 2008

Portfolio Managers’ COMMENTS


Nuveen Investments Closed-End Funds			JTA

The Fund features management by two affiliates of Nuveen Investments. The Fund’s investments in dividend-paying common and preferred stocks are managed by NWQ Investment Management Company, LLC (NWQ), while the Fund’s investments in senior corporate loans and other debt instruments are managed by Symphony Asset Management, LLC (Symphony).

Jon Bosse, Chief Investment Officer of NWQ, leads the Fund’s management team at that firm. He has more than 22 years of corporate finance and investment management experience.

The Symphony team is led by Gunther Stein and Lenny Mason, who have more than 25 years of combined investment management experience, much of it in evaluating and purchasing senior corporate loans and other high-yield debt.

Here Jon, Gunther and Lenny talk about general market conditions, their management strategies and the performance of the Fund for the six-month period ended June 30, 2008.

WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUND DURING THIS REPORTING PERIOD?

For the equity portion of the Fund’s portfolio, we continued to employ an opportunistic, bottom-up strategy that focused on identifying undervalued companies possessing favorable risk/reward characteristics as well as emerging catalysts that can unlock value or improve profitability. These catalysts included management changes, restructuring efforts, recognition of hidden assets, or a positive change in the underlying fundamentals. We also focused on downside protection, and paid a great deal of attention to a company’s balance sheet and cash flow statement, not just the income statement. We believed that cash flow analysis offers a more objective and truer picture of a company’s financial position than an evaluation based on earnings alone.

During this challenging period, our bias was to tread lightly in the financial sector with an underweight position relative to the index. While we made some adjustments to our financial holdings, we did not drastically alter the size of our positions. The Fund’s investments within the financial sector continued to be diversified with the bulk of the holdings seemingly well-capitalized. In March, we trimmed our stakes in Bank of America Corporation and JPMorgan Chase & Co., and eliminated IndyMac Bancorp in early May. We had hoped that IndyMac would be able to raise capital, either through equity issuance or by selling certain assets. However, as it became more evident that the company’s options for raising capital were greatly diminished, we eliminated the position. (On July 11, 2008, after the close of this reporting

Discussions of specific investments are for illustrative purposes only and are not intended as recommendations of individual investments. The views expressed in this commentary represent those of the portfolio managers as of the date of this report and are subject to change at any time, based on market conditions and other factors. The Fund disclaims any obligation to advise shareholders of such changes.

period, IndyMac Bancorp filed for bankruptcy protection.) We also established new positions in Genworth Financial Inc. and Korean Steelmaker POSCO in addition to adding to and trimming several existing positions.

For the senior loan portion of the Fund, we continued to use fundamental analysis to select loans that we believed offered strong asset coverage and attractive risk-adjusted returns. During this period, we avoided many loans issued by autos and homebuilders, companies that generally require a confident U.S. consumer and healthy U.S. economy to perform well. We also avoided many smaller loans that were done to finance leveraged buyouts. We didn’t believe there was sufficient value in these loans to compensate for the potential illiquidity and volatility if the earnings of the companies issuing loans remained challenged.

Although the loan portfolios suffered as a result of a broad-based sell-off, the market dislocation also provided an opportunity to buy loans in good companies with strong covenants at attractive prices. We focused on adding quality senior loans to the portfolio, which often were priced at a discount to par and were structured with strong covenant protection. We also continued to avoid the vast majority of second lien loans. Similar to smaller loans, we didn’t believe that second lien loans offered sufficient additional yield to compensate investors for potentially increased volatility and lower recovery rates.

Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.

Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for the Fund in this report.

1 The comparative benchmark designed to reflect the portfolio composition of JTA is calculated by combining: 1) 56% of the return of the Russell 3000 Value Index, which measures the performance of those Russell 3000 Index companies with lower price-to book ratios and lower forecasted growth values, 2) 16% of the return of the MSCI EAFE ex-Japan Value Index, a capitalization weighted index that selects the lower 50% of the price-to-book ranked value stocks traded in the developed markets of Europe, Asia and the Far East, excluding Japan, 3) 8% of the return of the Merrill Lynch DRD (dividends received deduction) Preferred Index, which consists of investment-grade, DRD-eligible, exchange-traded preferred stocks with one year or more to maturity, and 4) 20% of the return of the CSFB Leveraged Loan Index, which consists of approximately $150 billion of tradable term loans with at least one year to maturity and rated BBB or lower. Index returns are not leveraged, and do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index.

HOW DID THE FUND PERFORM OVER THIS SIX-MONTH PERIOD?

The performance of JTA, as well as a comparative benchmark, is presented in the accompanying table.

Cumulative Total Returns on Common Share Net Asset Value

For the six months ended 6/30/08



JTA			-19.62%
Comparative Benchmark¹			-10.67%

For the six-month period ended June 30, 2008 the net asset value of the Fund underperformed its comparative benchmark. One of the key factors in the performance of the Fund, relative to that of the unleveraged benchmark, was the Fund’s use of financial leverage. Although leveraging provides opportunities for additional income and total returns for common shareholders, it can also expose shareholders to additional risk — especially when market conditions are unfavorable. As in most other areas of the financial markets, there was a steep decrease in prices among many real estate securities during this period. The impact of these valuation changes within the Fund’s portfolio was magnified by the use of leverage. However, we firmly believe that the use of this leverage strategy should work to the benefit of the Fund’s common shareholders over the long term.

For the equity portion of the portfolio, ongoing disruptions in the capital markets contributed to declines in our financial sector holdings. These stocks were battered by concerns of increased credit losses and write-downs, struggles in accessing the capital markets, and rumors regarding the continued viability of some companies. There also were concerns that existing shareholders would be diluted as these companies raised additional capital. While finding downside protection in the financial sector was extremely difficult, this environment also meant

that many well-capitalized firms with the staying power to survive and prosper sometimes were trading at extremely compelling valuations.

The markets’ concerns and fears were not concentrated solely on the financial sector. We also witnessed steep declines in consumer cyclical stocks such as traditional retailers and autos — areas where we did not have significant exposure. We did have some consumer discretionary sector exposure with our investments in CBS Corporation, Gannett Company Inc., and Newell Rubbermaid Inc. Shares of Motorola Inc. also performed poorly during the period, in part because of problems within their handset division. Following the tremendous success of their innovative RAZR cell phones, delays in new product introductions have contributed to lackluster sales and lost market share. We believe that new management is addressing the company’s challenges and we remain positive on the holding.

Looking at the Fund’s preferred stock holdings, risk premiums increased as the extent of the sub-prime market problems became clearer and several financial firms, including Lehman Brothers and Bear Stearns, became distressed. In addition, many firms issued new preferred securities, which in turn forced a general re-pricing of existing issues. The Fund’s finance and investment, brokerage and banking sectors holdings generally hurt overall performance during this period. The best performing sectors were basic industries, energy and insurance. The portfolio was positioned conservatively during the period with an underweight in financials and an overweight in industrials and utilities.

Another factor weighing in on overall Fund performance was the senior loan portfolio. We saw relatively strong results from our Tribune Company and Alltel positions.

RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES (ARPS) MARKETS

Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the preferred shares issued by the Fund than there were offers to buy. This meant that these auctions “failed to clear” and that many or all auction preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction preferred shares did not lower the credit quality of these shares, and auction preferred shareholders unable to sell their shares received distributions at the “maximum rate” applicable to failed auctions as calculated in accordance with the pre-established terms of the auction preferred shares. As approved by the Fund’s Board of Trustees, on April 28, 2008, the Fund redeemed all $78 million of its outstanding FundNotes at liquidation value. Proceeds for the redemption were provided through a prime brokerage facility with a major bank.

For current, up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.

Common Share

Distribution and Share Price

INFORMATION

We are providing you with information regarding your Fund’s distributions. This information is as of June 30, 2008, and likely will vary over time based on the Fund’s investment activities and portfolio investment changes.

The Fund employs financial leverage through the issuance of FundPreferred shares, as well as through bank borrowings. Financial leverage provides the potential for higher earnings (net investment income), total returns and distributions over time, but — as noted earlier — also increases the variability of common shareholders’ net asset per share in response to changing market conditions. Over the reporting period, the impact of financial leverage on the Fund’s net asset value per share contributed positively to the income return and detracted from the price return. The overall impact of financial leverage detracted from the Fund’s total return.

The Fund has a managed distribution program. The goal of a managed distribution program is to provide shareholders relatively consistent and predictable cash flow by systematically converting its expected long-term return potential into regular distributions. As a result, regular distributions throughout the year are likely to include a portion of expected long-term gains (both realized and unrealized), along with net investment income.

Important points to understand about the managed distribution program are:


•	The Fund seeks to establish a relatively stable common share distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about the Fund’s past or future investment performance from its current distribution rate.

•	Actual common share returns will differ from projected long-term returns (and therefore the Fund’s distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value.

•	Each distributions is expected to be paid from some or all of the following sources:


	•	net investment income (regular interest and dividends),

	•	realized capital gains, and

	•	unrealized gains, or, in certain cases, a return of principal (non-taxable distributions).


•	A non-taxable distribution is a payment of a portion of the Fund’s capital. When the Fund’s returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when the Fund’s returns fall short of distributions, it will represent a portion of your original principal unless the shortfall is offset during other time

periods over the life of your investment (previous or subsequent) when the Fund’s total return exceeds distributions.

•

Because distribution source estimates are updated during the year based on the Fund’s performance and forecast for its current fiscal year (which is the calendar year for the Fund), these estimates may differ from both the tax information reported to you in your Fund’s IRS Form 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment.

The following table provides estimated information regarding the Fund’s common share distributions and total return performance for the six months ended June 30, 2008. The distribution information is presented on a tax basis rather than on a generally accepted accounting principles (GAAP) basis. This information is intended to help you better understand whether the Fund’s returns for the specified time period was sufficient to meet the Fund’s distributions.

2 The Fund elected to retain a portion of its realized long-term capital gains for the tax years ended December 31, 2007 and December 31, 2006, and pay required federal corporate income taxes on these amounts. As reported on Form 2439, Common shareholders on record date must include their pro-rata share of these gains on their applicable federal tax returns, and are entitled to take offsetting tax credits, for their pro-rata share of the taxes paid by the Fund. The total returns “Including retained gain tax credit/refund” include the economic benefit to Common shareholders on record date of these tax credits/refunds.


As of 6/30/08 (Common Shares)	JTA
Inception date		1/27/04
Six months ended June 30, 2008:
Per share distribution:
From net investment income		$0.28
From realized capital gains		—
From return of capital		0.73

Total per share distribution		$1.01


Distribution rate on NAV		5.63%

Annualized total returns:
Excluding retained gain tax credit/refund²:
Six-Month (Cumulative) on NAV		-19.62%
1-Year on NAV		-26.27%
Since inception on NAV		5.70%

Including retained gain tax credit/refund²:
Six-Month (Cumulative) on NAV		N/A
1-Year on NAV		-25.48%
Since inception on NAV		6.34%

COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION

The Board of Directors/Trustees for each of Nuveen’s 120 closed-end funds approved a program, effective August 7, 2008, under which each fund may repurchase up to 10% of its common shares.

As of June 30, 2008, the Fund was trading at a -9.47% discount to its common share NAV, compared with the average discount of -8.19% for the entire six-month period.


Fund Snapshot
Common Share Price		$16.25

Common Share Net Asset Value		$17.95

Premium/(Discount) to NAV		-9.47%

Current Distribution Rate¹		12.49%

Net Assets Applicable to Common Shares ($000)		$250,531


Industries
(as a % of total investments)
Oil, Gas & Consumable Fuels		9.0%

Diversified Telecommunication Services		8.0%

Media		6.3%

Pharmaceuticals		6.1%

Electric Utilities		5.8%

Insurance		5.5%

Tobacco		5.2%

Aerospace & Defense		5.0%

Commercial Banks		5.0%

Commercial Services & Supplies		4.6%

Capital Markets		2.9%

U.S. Agency		2.9%

Household Products		2.7%

Paper & Forest Products		2.4%

Health Care Providers & Services		2.1%

Communications Equipment		2.0%

Hotels, Restaurants & Leisure		1.9%

Short-Term Investments		3.9%

Other		18.7%


JTA Performance OVERVIEW			Nuveen Tax-Advantaged Total Return Strategy Fund as of June 30, 2008

Portfolio Allocation (as a % of total investments)

2007-2008 Distributions Per Share


Countries
(as a % of total investments)
United States		80.7%

United Kingdom		4.4%

South Korea		4.3%

France		3.6%

Italy		3.4%

Other		3.6%


Average Annual
Total Return
(Inception 1/27/04)
	On Share
	Price			On NAV
6-Month (Cumulative)		-21.07	%		-19.62%

1-Year		-32.27	%		-26.27%

Since Inception		2.74	%		5.70%


Average Annual
Total Return²
(Including retained gain
tax credit/refund)
	On Share
	Price			On NAV
6-Month (Cumulative)		N/A			N/A

1-Year		-31.48	%		-25.48%

Since Inception		3.42	%		6.34%

Share Price Performance—Weekly Closing Price


1	Current Distribution Rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a return of capital for tax purposes.

2	As previously explained in the Common Share Distribution and Share Price Information Section of this report, the Fund elected to retain a portion of its realized long-term capital gains for the tax years ended December 31, 2007 and December 31, 2006, and pay required federal corporate income taxes on these amounts. These standardized total returns include the economic benefit to Common shareholders of record of this tax credit/refund.

Shareholder Meeting Report

The Annual Meeting of Shareholders was held in the offices of Nuveen Investments on June 30, 2008.


	JTA
Approval of the Board Members was reached as follows:
	Common and
	FundPreferred	FundPreferred
	shares voting	shares voting
	together	together
	as a class	as a class
John P. Amboian
For	12,378,192	—
Withhold	248,129	—

Total	12,626,321	—

William C. Hunter
For	—	1,521
Withhold	—	189

Total	—	1,710

David J. Kundert
For	12,377,549	—
Withhold	248,772	—

Total	12,626,321	—

William J. Schneider
For	—	1,521
Withhold	—	189

Total	—	1,710

Terence J. Toth
For	12,380,918	—
Withhold	245,403	—

Total	12,626,321	—



JTA		Nuveen Tax-Advantaged Total Return Strategy Fund Portfolio of INVESTMENTS June 30, 2008 (Unaudited)


Shares		Description (1)	Value
		Common Stocks – 104.8% (65.1% of Total Investments)
		Aerospace & Defense – 6.9%
	81,300	Lockheed Martin Corporation	$	8,021,058
	166,700	Raytheon Company		9,381,876

		Total Aerospace & Defense		17,402,934
		Capital Markets – 3.8%
	276,500	JPMorgan Chase & Co.		9,486,715
		Commercial Banks – 3.2%
	155,500	Wachovia Corporation		2,414,915
	240,000	Wells Fargo & Company		5,700,000

		Total Commercial Banks		8,114,915
		Commercial Services & Supplies – 5.6%
	410,500	Pitney Bowes Inc.		13,998,050
		Communications Equipment – 3.2%
	1,093,800	Motorola, Inc.		8,028,492
		Containers & Packaging – 1.7%
	201,800	Packaging Corp. of America		4,340,718
		Diversified Financial Services – 1.5%
	229,000	Citigroup Inc.		3,838,040
		Diversified Telecommunication Services – 11.3%
	244,600	AT&T Inc.		8,240,574
	343,000	KT Corporation, Sponsored ADR		7,312,760
	235,000	Telecom Italia S.p.A., Sponsored ADR		3,788,200
	256,500	Verizon Communications Inc.		9,080,100

		Total Diversified Telecommunication Services		28,421,634
		Electric Utilities – 3.9%
	95,300	EDP – Energias de Portugal, S.A., Sponsored ADR		4,977,462
	323,000	Korea Electric Power Corporation, Sponsored ADR		4,693,190

		Total Electric Utilities		9,670,652
		Food Products – 1.3%
	114,806	Kraft Foods Inc.		3,266,231
		Household Durables – 2.1%
	307,000	Newell Rubbermaid Inc.		5,154,530
		Household Products – 3.8%
	160,000	Kimberly-Clark Corporation		9,564,800
		Industrial Conglomerates – 3.0%
	278,600	General Electric Company		7,435,834
		Insurance – 7.2%
	247,400	Genworth Financial Inc., Class A		4,406,194
	210,600	Hartford Financial Services Group, Inc.		13,598,442

		Total Insurance		18,004,636
		Machinery – 2.2%
	75,000	Caterpillar Inc.		5,536,500


Shares		Description (1)					Value
		Media – 3.0%
	200,000	CBS Corporation, Class B					$	3,898,000
	168,100	Gannett Company Inc.						3,642,727

		Total Media						7,540,727
		Metals & Mining – 2.1%
	41,000	POSCO, ADR						5,320,980
		Multi-Utilities – 2.0%
	180,000	United Utilities PLC, Sponsored ADR						4,918,500
		Oil, Gas & Consumable Fuels – 14.4%
	80,000	Chevron Corporation						7,930,400
	113,400	ConocoPhillips						10,703,826
	132,500	Eni S.p.A., Sponsored ADR						9,835,475
	90,000	Total S.A., Sponsored ADR						7,674,300

		Total Oil, Gas & Consumable Fuels						36,144,001
		Paper & Forest Products – 3.1%
	220,000	International Paper Company						5,126,000
	270,200	Stora Enso Oyj, Sponsored ADR						2,537,259

		Total Paper & Forest Products						7,663,259
		Pharmaceuticals – 8.2%
	175,000	GlaxoSmithKline PLC, ADR						7,738,500
	341,200	Pfizer Inc.						5,960,764
	206,000	Sanofi-Aventis, ADR						6,845,380

		Total Pharmaceuticals						20,544,644
		Road & Rail – 1.4%
	46,000	Union Pacific Corporation						3,473,000
		Thrifts & Mortgage Finance – 1.5%
	191,700	Federal National Mortgage Association						3,740,067
		Tobacco – 8.4%
	165,900	Altria Group, Inc.						3,410,904
	134,900	Lorillard Inc.						9,329,684
	165,900	Philip Morris International						8,193,801

		Total Tobacco						20,934,389

		Total Common Stocks (cost $260,323,554)						262,544,248

Shares		Description (1)	Coupon		Ratings (2)		Value
		$25 Par (or similar) Preferred Securities – 16.3% (10.2% of Total Investments)
		Capital Markets – 0.9%
	30,000	Deutsche Bank Capital Funding Trust V		8.050%		Aa3	$	718,200
	1,000,000	JP Morgan Chase & Company		7.900%		A1		940,430
	30,000	Lehman Brothers Holdings		7.950%		BBB+		610,500

		Total Capital Markets						2,269,130

		Commercial Banks – 4.7%
	25,000	Banco Santander Finance		6.800%		Aa3		549,000
	75,000	Banco Santander Finance		6.500%		A+		1,582,500
	50,000	Bank of America Corporation		8.200%		A+		1,240,500
	36,200	Bank of America Corporation, Series D		6.204%		A+		724,000
	25,000	Barclays Bank PLC		8.125%		Aa3		614,750
	50,000	Barclays Bank PLC		6.625%		Aa3		976,000
	40,000	Credit Suisse		7.900%		A		984,000
	19,200	HSBC Holdings PLC		6.200%		A1		395,712
	63,200	HSBC USA Inc.		6.500%		A		1,298,760
	40,000	Royal Bank of Scotland Group PLC, Series M		6.400%		A1		716,000
	40,000	Royal Bank of Scotland Group PLC, Series N		6.350%		A1		721,600
	20,000	Royal Bank of Scotland Group PLC		6.600%		Aa3		372,400
	75,000	Wachovia Corporation		8.000%		A		1,681,500

		Total Commercial Banks						11,856,722


Shares		Description (1)	Coupon				Ratings (2)		Value
		Diversified Financial Services – 1.2%
	60,000	Citigroup Inc., Series AA		8.125%				A	$	1,344,000
	500,000	Citigroup Inc.		8.400%				A		475,930
	25,000	ING Group N.V.		7.200%				A1		538,250
	12,200	ING Group N.V.		7.050%				A		255,834
	15,000	ING Group N.V.		6.125%				A		267,000

		Total Diversified Financial Services								2,881,014
		Electric Utilities – 3.6%
	38,900	Alabama Power Company, Series A		5.300%				BBB+		853,855
	50,000	Alabama Power Company		5.625%				BBB+		1,085,940
	8,600	Consolidated Edison Company of New York Inc.		5.000%				A3		765,056
	40,000	Georgia Power Company		6.125%				Baa1		987,800
	5,000	Gulf Power Company		6.450%				BBB+		460,367
	34,700	Interstate Power and Light Company		7.100%				Baa2		879,645
	36,400	Mississippi Power Company		5.250%				A3		846,300
	65,000	PPL Electric Utilities Corporation		6.250%				BBB		1,541,722
	10,000	Southern California Edison Company, Series C		6.000%				Baa2		974,688
	5,000	Southern California Edison Company		6.125%				Baa2		485,625

		Total Electric Utilities								8,880,998
		Insurance – 1.3%
	31,900	Aegon N.V.		6.375%				A–		545,490
	22,800	Arch Capital Group Limited		8.000%				BBB–		531,012
	50,000	Endurance Specialty Holdings Limited		7.750%				BBB–		1,030,000
	30,000	Prudential PLC		6.750%				A–		573,000
	30,000	Prudential PLC		6.500%				A–		555,000

		Total Insurance								3,234,502
		U.S. Agency – 4.6%
	74,600	Federal Home Loan Mortgage Corporation		8.375%				AA–		1,812,780
	25,000	Federal Home Loan Mortgage Corporation		5.570%				AA–		449,750
	40,000	Federal Home Loan Mortgage Corporation		6.550%				AA–		786,000
	25,000	Federal Home Loan Mortgage Corporation		6.420%				AA–		992,250
	18,400	Federal Home Loan Mortgage Corporation		6.000%				AA–		654,120
	20,000	Federal Home Loan Mortgage Corporation		5.700%				AA–		670,000
	52,300	Federal Home Loan Mortgage Corporation		5.660%				AA–		930,940
	28,700	Federal Home Loan Mortgage Corporation		5.000%				AA–		883,673
	50,000	Federal National Mortgage Association		8.250%				AAA		1,201,000
	75,000	Federal National Mortgage Association		8.250%				AA–		1,721,250
	20,000	Federal National Mortgage Association		6.750%				AA–		426,000
	15,000	Federal National Mortgage Association		5.500%				AA–		528,750
	19,800	Federal National Mortgage Association		5.125%				AA–		628,650

		Total U.S. Agency								11,685,163

		Total $25 Par (or similar) Preferred Securities (cost $47,710,809)								40,807,529

			Weighted
Principal			Average
Amount (000)		Description (1)	Coupon		Maturity (4)		Ratings (2)		Value
		Variable Rate Senior Loan Interests – 33.5% (20.8% of Total Investments) (3)
		Aerospace & Defense – 1.1%
$	777	Hexcel Corporation, Term Loan B		4.504%		3/01/12		BB+	$	765,673
	1,582	Vought Aircraft Industries, Inc., Term Loan		4.990%		12/22/11		Ba3		1,539,931
	364	Vought Aircraft Industries, Inc., Tranche B, Letter of Credit		4.953%		12/22/10		Ba3		347,727

	2,723	Total Aerospace & Defense								2,653,331

		Building Products – 0.3%
	780	Armstrong World Industries, Inc., Tranche B, Term Loan		4.233%		10/02/13		BBB–		757,634
		Chemicals – 1.1%
	986	Georgia Gulf Corporation, Term Loan B		4.950%		10/03/13		Ba3		951,858
	1,940	Rockwood Specialties Group, Inc., Term Loan E		4.399%		7/30/12		BB+		1,873,486

	2,926	Total Chemicals								2,825,344


			Weighted
Principal			Average
Amount (000)		Description (1)	Coupon		Maturity (4)		Ratings (2)		Value
		Commercial Services & Supplies – 1.8%
$	682	Allied Waste North America, Inc., Letter of Credit		4.109%		3/28/14		BBB–	$	675,704
	1,134	Allied Waste North America, Inc., Term Loan B		4.268%		3/28/14		BBB–		1,123,816
	105	Aramark Corporation, Letter of Credit		4.875%		1/24/14		BB		99,612
	1,658	Aramark Corporation, Term Loan		4.676%		1/24/14		BB		1,567,961
	1,097	Berry Plastics Holding Corporation, Term Loan		4.784%		4/03/15		BB–		996,121

	4,676	Total Commercial Services & Supplies								4,463,214
		Containers & Packaging – 1.1%
	1,910	Graham Packaging Company, L.P., Term Loan		4.982%		10/07/11		B+		1,838,667
	175	Smurfit-Stone Container Corporation, Deposit-Funded Commitment		4.684%		11/01/10		BB		170,027
	196	Smurfit-Stone Container Corporation, Term Loan B		4.637%		11/01/11		BB		190,621
	372	Smurfit-Stone Container Corporation, Term Loan C		4.644%		11/01/11		BB		362,096
	117	Smurfit-Stone Container Corporation, Tranche C-1		4.500%		11/01/11		BB		113,643

	2,770	Total Containers & Packaging								2,675,054
		Diversified Consumer Services – 0.8%
	1,970	Weight Watchers International, Inc., Term Loan B		4.250%		1/26/14		BB+		1,917,056
		Diversified Telecommunication Services – 1.5%
	1,985	Alltel Communications, Inc., Term Loan B3		5.232%		5/18/15		BB–		1,975,075
	1,965	MetroPCS Wireless, Inc., Term Loan		4.989%		11/03/13		Ba3		1,882,102

	3,950	Total Diversified Telecommunication Services								3,857,177
		Electric Utilities – 1.9%
	1,702	Dynegy Holdings, Inc., Delayed Term Loan, Letter of Credit		3.983%		4/02/13		Ba1		1,605,957
	296	Dynegy Holdings, Inc., Term Loan		3.983%		4/02/13		Ba1		278,935
	1,990	TXU Corporation, Term Loan B-2		6.235%		10/10/14		Ba3		1,846,139
	995	TXU Corporation, Term Loan B-3		6.262%		10/10/14		Ba3		922,385

	4,983	Total Electric Utilities								4,653,416
		Electrical Equipment – 0.6%
	1,409	Sensus Metering Systems, Inc., Term Loan B-1		4.652%		12/17/10		BB		1,338,261
	36	Sensus Metering Systems, Inc., Term Loan B-2		4.483%		12/17/10		BB		34,489

	1,445	Total Electrical Equipment								1,372,750
		Health Care Equipment & Supplies – 0.8%
	120	Bausch & Lomb, Inc., Delayed Draw Term Loan, (5)		4.130%		4/24/15		BB–		116,438
	796	Bausch & Lomb, Inc., Term Loan		5.946%		4/24/15		BB–		781,821
	995	Biomet, Inc., Term Loan		5.801%		3/24/15		BB–		976,815

	1,911	Total Health Care Equipment & Supplies								1,875,074
		Health Care Providers & Services – 3.4%
	96	Community Health Systems, Inc., Delayed Draw, Term Loan, (5) (6)		1.000%		7/25/14		BB		(5,364	)
	1,872	Community Health Systems, Inc., First Lien Term Loan		4.859%		7/25/14		BB		1,767,406
	1,317	DaVita, Inc., Term Loan B-1		4.084%		10/05/12		BB+		1,267,809
	1,970	HCA, Inc., Term Loan		5.051%		11/18/13		BB		1,852,940
	464	IASIS Healthcare LLC, Delayed Draw, Term Loan		4.483%		3/14/14		Ba2		440,833
	124	IASIS Healthcare LLC, Letter of Credit		2.371%		3/14/14		Ba2		117,555
	1,341	IASIS Healthcare LLC, Term Loan		4.483%		3/14/14		Ba2		1,274,044
	996	LifePoint Hospitals, Inc., Term Loan B		4.274%		4/18/12		BB		972,360
	978	Quintiles Transnational Corporation, Term Loan B		4.810%		3/29/13		BB		946,953

	9,158	Total Health Care Providers & Services								8,634,536
		Hotels, Restaurants & Leisure – 3.1%
	1,955	24 Hour Fitness Worldwide, Inc., Term Loan B		5.097%		6/08/12		Ba3		1,847,475
	769	CBRL Group, Inc., Term Loan B-1		4.290%		4/28/13		Ba2		727,540
	92	CBRL Group, Inc., Term Loan B-2		4.290%		4/28/13		BB		87,445
	1,945	Penn National Gaming, Inc., Term Loan B		4.533%		10/03/12		BBB–		1,889,622
	89	Travelport LLC, Letter of Credit		5.051%		8/23/13		BB–		80,498
	445	Travelport LLC, Term Loan		4.733%		8/23/13		BB–		401,185
	600	Venetian Casino Resort LLC, Delayed Draw, Term Loan		4.560%		5/23/14		BB		547,958
	2,376	Venetian Casino Resort LLC, Term Loan		4.550%		5/23/14		BB		2,169,915

	8,271	Total Hotels, Restaurants & Leisure								7,751,638
		Household Products – 0.5%
	1,190	Solo Cup Company, Term Loan		6.044%		2/27/11		B		1,170,178


			Weighted
Principal			Average
Amount (000)		Description (1)	Coupon		Maturity (4)		Ratings (2)		Value
		Independent Power Producers & Energy Traders – 0.5%
$	469	NRG Energy Inc., Credit Linked Deposit		2.701%		2/01/13		Ba1	$	447,495
	957	NRG Energy Inc., Term Loan		4.301%		2/01/13		Ba1		913,558

	1,426	Total Independent Power Producers & Energy Traders								1,361,053
		Insurance – 0.4%
	1,162	Conseco, Inc., Term Loan		4.483%		10/10/13		Ba3		1,014,037
		IT Services – 1.5%
	1,985	First Data Corporation, Term Loan B-1		5.261%		9/24/14		BB–		1,827,193
	2,032	SunGard Data Systems, Inc., Term Loan B		4.508%		2/28/14		BB		1,928,863

	4,017	Total IT Services								3,756,056
		Media – 7.1%
	1,980	CanWest Mediaworks LP, Term Loan		4.649%		7/10/15		Ba2		1,866,150
	1,975	Cequel Communications LLC, Term Loan B		4.724%		11/05/13		BB–		1,856,006
	2,189	Charter Communications Operating Holdings LLC, Term Loan		4.900%		3/06/14		B+		1,927,065
	1,955	CSC Holdings, Inc., Term Loan		4.225%		3/29/13		BBB–		1,861,735
	1,970	Idearc, Inc., Term Loan		4.787%		11/17/14		BB		1,580,925
	973	Metro-Goldwyn-Mayer Studios, Inc., Term Loan B		6.051%		4/08/12		N/R		800,648
	1,965	Neilsen Finance LLC, Term Loan		4.734%		8/09/13		Ba3		1,835,883
	1,980	Tribune Company, Term Loan B		5.482%		6/04/14		B		1,497,375
	933	Tribune Company, Term Loan X		5.478%		6/04/09		B		896,389
	2,000	Univision Communications, Inc., Term Loan		5.149%		9/29/14		Ba3		1,651,250
	2,141	WMG Acquisition Corporation, Term Loan		4.704%		2/28/11		BB–		2,031,906

	20,061	Total Media								17,805,332
		Metals & Mining – 0.9%
	1,018	Amsted Industries, Inc., Delayed Draw Term Loan		4.791%		4/08/13		BB		997,446
	1,401	Amsted Industries, Inc., Term Loan		4.720%		4/08/13		BB		1,373,099

	2,419	Total Metals & Mining								2,370,545
		Paper & Forest Products – 0.7%
	1,940	Georgia-Pacific Corporation, Term Loan B		4.449%		12/21/12		BB+		1,834,865
		Pharmaceuticals – 1.6%
	2,172	Mylan Laboratories Inc., Term Loan		5.750%		10/02/14		BB		2,154,766
	1,975	Royalty Pharma Finance Trust, Term Loan		5.051%		4/16/13		Baa2		1,966,977

	4,147	Total Pharmaceuticals								4,121,743
		Real Estate Management & Development – 0.4%
	1,320	LNR Property Corporation, Term Loan B		6.030%		7/12/11		BB		1,109,625
		Road & Rail – 0.6%
	1,767	Swift Transportation Company, Inc., Term Loan		6.125%		5/10/14		B+		1,425,000
		Specialty Retail – 0.6%
	1,500	TRU 2005 RE Holding Co., LLC, Term Loan		5.459%		12/08/08		B3		1,415,625
		Textiles, Apparel & Luxury Goods – 0.5%
	1,395	HBI Branded Apparel Limited, Inc., Term Loan		4.638%		9/05/13		BB+		1,352,368
		Trading Companies & Distributors – 0.7%
	922	Ashtead Group Public Limited Company, Term Loan		4.500%		8/31/11		BB+		875,900
	196	Brenntag Holdings GMBH & Co. KG, Acquisition Facility		5.794%		1/20/14		B+		184,580
	804	Brenntag Holdings GMBH & Co. KG, Facility B2		5.794%		1/20/14		B+		755,418

	1,922	Total Trading Companies & Distributors								1,815,898

$	89,829	Total Variable Rate Senior Loan Interests (cost $89,379,674)								83,988,549

Principal

Amount (000)

Description (1)

Coupon

Maturity

Value

Short-Term Investments – 6.4% (3.9% of Total Investments)

15,923

Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/08, repurchase price $15,923,514, collateralized by $16,400,000 U.S. Treasury Bills, 0.000%, due 12/11/08, value $16,244,200

1.350%

7/01/08

15,922,917

Total Short-Term Investments (cost $15,922,917)

15,922,917

Total Investments (cost $413,336,954) – 161.0%

403,263,243

Borrowings – (41.5)% (7), (8)

(104,000,000

)

Other Assets Less Liabilities – (1.5)%

(3,732,354

)

FundPreferred Shares, at Liquidation Value – (18.0)% (7)

(45,000,000

)

Net Assets Applicable to Common Shares – 100%

250,530,889


(1)		All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)		Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
(3)		Senior Loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks.
		Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.
(4)		Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown.
(5)		Position or portion of position represents an unfunded Senior Loan commitment outstanding at June 30, 2008.
(6)		Negative value represents unrealized depreciation on Senior Loan commitment outstanding at June 30, 2008.
(7)		Borrowings and FundPreferred Shares, at Liquidation Value as a percentage of total investments are (25.8)% and (11.2)%, respectively.
(8)		The Fund may pledge up to 100% of its eligible securities in the Portfolio of Investment as collateral for Borrowings.
N/R		Not rated.
144A		Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
ADR		American Depositary Receipt.

See accompanying notes to financial statements.



		Statement of ASSETS & LIABILITIES June 30, 2008 (Unaudited)


Assets
Investments, at value (cost $413,336,954)	$	403,263,243
Receivables:
Dividends		1,119,458
Interest		587,236
Investments sold		409,937
Reclaims		198,067
Deferred borrowing costs		92,633
Other assets		26,074

Total assets		405,696,648

Liabilities
Borrowings		104,000,000
Accrued expenses:
Management fees		195,128
Interest on borrowings		240,021
Other		114,074
Common share dividends payable		5,592,313
FundPreferred share dividends payable		24,223

Total liabilities		110,165,759

FundPreferred shares, at liquidation value		45,000,000

Net assets applicable to Common shares	$	250,530,889

Common shares outstanding		13,958,267

Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding)	$	17.95


Net assets applicable to Common shares consist of:

Common shares, $.01 par value per share	$	139,583
Paid-in surplus		279,959,701
Undistributed (Over-distribution of) net investment income		(10,422,746	)
Accumulated net realized gain (loss) from investments		(9,071,938	)
Net unrealized appreciation (depreciation) of investments		(10,073,711	)

Net assets applicable to Common shares	$	250,530,889

Authorized shares:
Common		Unlimited
FundPreferred		Unlimited

See accompanying notes to financial statements.



		Statement of OPERATIONS
Six Months Ended June 30, 2008 (Unaudited)


Investment Income
Dividends (net of foreign tax withheld of $251,708)	$	7,070,226
Interest		3,141,695

Total investment income		10,211,921

Expenses
Management fees		1,945,385
FundNotes interest expense and amortization of borrowing costs		2,672,495
FundNotes and FundPreferred shares – auction fees		118,811
FundNotes and FundPreferred shares – dividend disbursing agent fees		6,214
Shareholders’ servicing agent fees and expenses		500
Interest expense on borrowings and amortization of borrowing costs		1,021,407
Custodian’s fees and expenses		75,245
Trustees’ fees and expenses		4,004
Professional fees		6,108
Shareholders’ reports – printing and mailing expenses		54,122
Stock exchange listing fees		4,707
Investor relations expense		35,048
Other expenses		12,441

Total expenses before custodian fee credit and expense reimbursement		5,956,487
Custodian fee credit		(786	)
Expense reimbursement		(702,908	)

Net expenses		5,252,793

Net investment income		4,959,128

Realized and Unrealized Gain (Loss)
Net realized gain (loss) from investments		(6,225,402	)
Change in net unrealized appreciation (depreciation) of investments		(61,674,359	)

Net realized and unrealized gain (loss)		(67,899,761	)

Distributions to FundPreferred Shareholders
From and in excess of net investment income		(917,493	)


Decrease in net assets applicable to Common shares from distributions to FundPreferred shareholders		(917,493	)

Net increase (decrease) in net assets applicable to Common shares from operations	$	(63,858,126	)

See accompanying notes to financial statements.



		Statement of CHANGES in NET ASSETS (Unaudited)


	Six Months
	Ended			Year Ended
	6/30/08			12/31/07
Operations
Net investment income	$	4,959,128		$	12,502,412
Net realized gain (loss) from investments (net of federal corporate income taxes of $0 and $2,900,000 respectively, on long-term capital gains retained)		(6,225,402	)		20,234,467
Change in net unrealized appreciation (depreciation) of investments		(61,674,359	)		(37,324,738	)
Distributions to FundPreferred shareholders:
From and in excess of net investment income		(917,493	)		—
From net investment income		—			643,144
From accumulated net realized gains		—			(1,511,526	)

Net increase (decrease) in net assets applicable to Common shares from operations		(63,858,126	)		(6,742,529	)

Distributions to Common Shareholders
From and in excess of net investment income		(14,167,641	)		—
From net investment income		—			(11,433,362	)
From accumulated net realized gains		—			(15,815,168	)

Decrease in net assets applicable to Common shares from distributions to Common shareholders		(14,167,641	)		(27,258,530	)

Capital Share Transactions
Net proceeds from Common shares issued to shareholders due to reinvestment of distributions		—			1,817,508

Net increase (decrease) in net assets applicable to Common shares from capital share transactions		—			1,817,508

Net increase (decrease) in net assets applicable to Common shares		(78,025,767	)		(32,183,551	)
Net assets applicable to Common shares at the beginning of period		328,556,656			360,740,207

Net assets applicable to Common shares at the end of period	$	250,530,889		$	328,556,656

Undistributed (Over-distribution of) net investment income at the end of period	$	(10,422,746	)	$	(296,740	)

See accompanying notes to financial statements.



		Statement of CASH FLOWS Six Months Ended June 30, 2008 (Unaudited)


Cash Flows from Operating Activities:
Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations	$	(63,858,126	)
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
Purchases of investments		(40,166,272	)
Proceeds from sales and maturities of investments		51,682,327
Proceeds from (Purchases of) short-term investments, net		1,793,208
Amortization (Accretion) of premiums and discounts, net		(12,544	)
(Increase) Decrease in receivable for dividends		(67,990	)
(Increase) Decrease in receivable for interest		302,690
(Increase) Decrease in receivable for investments sold		839,354
(Increase) Decrease in receivable for reclaims		(63,331	)
(Increase) Decrease in other assets		528
Increase (Decrease) in payable for investments purchased		(641,334	)
Increase (Decrease) in payable for federal corporate income tax		(2,900,000	)
Increase (Decrease) in accrued management fees		(41,894	)
Increase (Decrease) in accrued interest on borrowings		(495,500	)
Increase (Decrease) in accrued other liabilities		2,058
Increase (Decrease) in FundNotes interest payable		(46,947	)
Increase (Decrease) in FundPreferred share dividends payable		(8,139	)
Net realized (gain) loss from investments		6,225,402
Net realized (gain) loss from paydowns		(167,783	)
Change in net unrealized (appreciation) depreciation of investments		61,674,359

Net cash provided by (used in) operating activities		14,050,066

Cash Flows from Financing Activities:
Increase (Decrease) in borrowings, net		71,000,000
Cash distributions paid to Common shareholders		(8,575,328	)
Increase (Decrease) in FundNotes		(78,000,000	)
(Increase) Decrease in deferred borrowing costs		(92,633	)
(Increase) Decrease in deferred FundNotes borrowing costs		1,617,895

Net cash provided by (used in) financing activities		(14,050,066	)

Net Increase (Decrease) in Cash		—
Cash at the beginning of period		—

Cash at the End of Period	$	—

Supplemental Disclosure of Cash Flow Information

Cash paid for interest on borrowings (excluding amortization of borrowing costs) during the six months ended June 30, 2008, was $1,440,640.

Cash paid for federal corporate income taxes during the six months ended June 30, 2008, was $2,900,000.

Cash paid for interest on FundNotes (excluding amortization of FundNotes borrowing costs) during the six months ended June 30, 2008, was $1,101,547.

See accompanying notes to financial statements.



		Notes to FINANCIAL STATEMENTS (Unaudited)


1.	General Information and Significant Accounting Policies

Nuveen Tax-Advantaged Total Return Strategy Fund (the “Fund”) is a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s Common shares are listed on the New York Stock Exchange and trade under the ticker symbol “JTA.” The Fund was organized as a Massachusetts business trust on October 1, 2003.

The Fund seeks to provide a high level of after-tax total return consisting primarily of tax-advantaged dividend income and capital appreciation by investing primarily in a portfolio of dividend-paying common stocks that the Fund believes at the time of investment are eligible to pay dividends that qualify for favorable federal income taxation at rates applicable to long-term capital gains (“tax-advantaged dividends”). The Fund will also invest to a more limited extent in preferred securities that are eligible to pay tax-advantaged dividends, as well as senior loans (both secured and unsecured), domestic corporate bonds, notes and debentures, convertible debt securities, and other similar types of corporate instruments, including high-yield debt securities, that are not eligible to pay tax-advantaged dividends.

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements in accordance with U.S. generally accepted accounting principles.

Investment Valuation

Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. The prices of fixed-income securities and senior loans are generally provided by an independent pricing service approved by the Fund’s Board of Trustees. When price quotes are not readily available, the pricing service or, in the absence of a pricing service for a particular investment, the Board of Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant by the pricing service or the Board of Trustees’ designee. If the pricing service is unable to supply a price for an investment or derivative instrument the Fund may use market quotes provided by major broker/dealers is such investments. If it is determined that the market price for an investment is unavailable or inappropriate, the Board of Trustees of the Fund, or its designee, may establish fair value in accordance with procedures established in good faith by the Board of Trustees. Short-term investments are valued at amortized cost, which approximates market value.

The senior loans in which the Fund invests are not listed on an organized exchange and the secondary market for such investments may be less liquid relative to markets for other fixed-income securities. Consequently, the value of senior loans, determined as described above, may differ significantly from the value that would have been determined had there been an active market for that senior loan.

Investment Transactions

Investment transactions are recorded on a trade date basis. Trade date for senior loans purchased in the “primary market” is considered the date on which the loan allocations are determined. Trade date for senior loans purchased in the “secondary market” is the date on which the transaction is entered into. Realized gains and losses from investment transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Fund has instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At June 30, 2008, the Fund had no such outstanding purchase commitments.

Investment Income

Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also includes paydown gains and losses and fee income, if any. Fee income consists primarily of amendment fees. Amendment fees are earned as compensation for evaluating and accepting changes to an original senior loan agreement and are recognized when received.



		Notes to FINANCIAL STATEMENTS (continued) (Unaudited)

Income Taxes

The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. The Fund intends to distribute substantially all of its investment company taxable income to shareholders. In any year when the Fund realizes net capital gains, the Fund may choose to distribute all or a portion of its net capital gains to shareholders, or alternatively, to retain all or a portion of its net capital gains and pay federal corporate income taxes on such retained gains. During the tax year ended December 31, 2007, the Fund retained $8,285,714 of realized long-term capital gains and accrued a provision for federal corporate income taxes of $2,900,000, the net of which has been reclassified to Paid-in surplus.

Effective June 29, 2007, the Fund adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether it is “more-likely-than-not,” (i.e., a greater than 50-percent likelihood) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold may result in a tax expense in the current year.

Implementation of FIN 48 required management of the Fund to analyze all open tax years, as defined by the status of limitations, for all major jurisdictions, which includes federal and certain states. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). The Fund has no examinations in progress.

For all open tax years and all major taxing jurisdictions through the end of the reporting period, management of the Fund has reviewed all tax positions taken or expected to be taken in the preparation of the Fund’s tax returns and concluded the adoption of FIN 48 resulted in no impact to the Fund’s net assets or results of operations as of and during the six months ended June 30, 2008.

The Fund is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Dividends and Distributions to Common Shareholders

Distributions to Common shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal corporate income tax regulations, which may differ from U.S. generally accepted accounting principles.

The Fund makes quarterly cash distributions to Common shareholders of a stated dollar amount per share. Subject to approval and oversight by the Fund’s Board of Trustees, the Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of the Fund’s investment strategy through regular quarterly distributions (a “Managed Distribution Program”). Total distributions during a calendar year generally will be made from the Fund’s net investment income, net realized capital gains and net unrealized capital gains in the Fund’s portfolio, if any. The portion of distributions paid from net unrealized gains, if any, would be distributed from the Fund’s assets and would be treated by shareholders as a non-taxable distribution for tax purposes. In the event that total distributions during a calendar year exceed the Fund’s total return on net asset value, the difference will be treated as a return of capital for tax purposes and will reduce net asset value per share. If the Fund’s total return on net asset value exceeds total distributions during a calendar year, the excess will be reflected as an increase in net asset value per share. The final determination of the source and character of all distributions for the fiscal year are made after the end of the fiscal year and are reflected in the financial statements contained in the annual report as of December 31 each year.

The distributions made by the Fund to its shareholders during the six months ended June 30, 2008, are provisionally classified as being “From and in excess of net investment income”, and those distributions will be classified as being from net investment income, net realized capital gains and/or a return of capital for tax purposes after the fiscal year end, based upon the income type breakdown information conveyed at the time by the REITs whose securities are held in the Fund’s portfolio. For purposes of calculating “Undistributed (Over-distribution of) net investment income” as of June 30, 2008, the distribution amounts provisionally classified as “From and in excess of net investment income” were treated as being entirely from net investment income. Consequently, the financial statements at June 30, 2008, reflect an over-distribution of net investment income.

FundNotes

During the period January 1, 2008 through April 28, 2008, the Fund had issued and outstanding 3,120 Series F FundNotes, $25,000 stated value per share, that matured on April 24, 2034. The interest rate paid by the Fund was determined every seven

days, pursuant to a dutch auction process overseen by the auction agent, and was payable at the end of each rate period. During the period January 1, 2008 through April 9, 2008, the average daily balance of FundNotes was $51,000,000 with an average annualized interest rate (including amortization of the FundNotes borrowing costs) of 5.54%. On April 28, 2008, the Fund redeemed all $78 million of its outstanding FundNotes at liquidation value.

FundPreferred Shares

The Fund has issued and outstanding 1,800 Series W FundPreferred shares, $25,000 stated value per share, as a means of effecting financial leverage. The dividend rate paid by the Fund is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period.

Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the FundPreferred shares issued by the Fund than there were offers to buy. This meant that these auctions “failed to clear,” and that many FundPreferred shareholders who wanted to sell their shares in these auctions were unable to do so. FundPreferred shareholders unable to sell their shares received distributions at the “maximum rate” applicable to failed auctions as calculated in accordance with the pre-established terms of the FundPreferred shares.

These developments generally do not affect the management or investment policies of the Fund. However, one implication of these auction failures for Common shareholders is that the Fund’s cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Fund’s future Common share earnings may be lower than they otherwise would have been.

Derivative Financial Instruments

The Fund is authorized to invest in derivative financial instruments or other transactions for the purpose of hedging the portfolio’s exposure to common stock risk, high yield credit risk, foreign currency exchange risk and the risk of increases in interest rates. Although the Fund is authorized to invest in such financial instruments, and may do so in the future, it did not invest in any such instruments during the six months ended June 30, 2008.

Repurchase Agreements

In connection with transactions in repurchase agreements, it is the Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.

Custodian Fee Credit

The Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on the Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which the Fund overdraws its account at the custodian bank.

Borrowing Costs

Costs incurred by the Fund in connection with its borrowing of FundNotes were recorded as a deferred charge amortizing over the FundNotes’ 30 year life. Upon the Fund’s redemption of its outstanding FundNotes, the Fund recognized as an expense all remaining deferred borrowing costs. Such borrowing costs recognized by the Fund are included with “FundNotes interest expense and amortization of borrowing costs” on the Statement of Operations.

Costs incurred by the Fund in connection with structuring its revolving credit agreement are recorded as a deferred charge which are being amortized over the 30 year life of the borrowings and included with “Interest expense on borrowings and amortization of borrowing costs” on the Statement of Operations.

Indemnifications

Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts that provide general indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.



		Notes to FINANCIAL STATEMENTS (continued) (Unaudited)


2.	Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 — Quoted prices in active markets for identical securities.


	Level 2 —	Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

	Level 3 —	Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the Fund’s fair value measurements as of June 30, 2008:


	Level 1		Level 2		Level 3		Total
Investments	$	299,636,271	$	103,626,972	$	—	$	403,263,243


3.	Fund Shares

Transactions in Common shares were as follows:


	Six Months		Year
	Ended		Ended
	6/30/08		12/31/07
Common shares issued to shareholders due to reinvestment of distributions		—		70,333

During the six months ended June 30, 2008, the Fund redeemed all 3,120 shares of its outstanding FundNotes. The Fund did not engage in transactions of its shares of FundNotes during the fiscal year ended December 31, 2007.


4.	Investment Transactions

Purchases and sales (including maturities but excluding short-term investments) during the six months ended June 30, 2008, were as follows:




Purchases:
Investment securities			$38,916,272
U.S. Government and agency obligations			1,250,000

Sales and maturities:
Investment securities			44,475,350
U.S. Government and agency obligations			7,206,977


5.	Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, recognition of premium amortization and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At June 30, 2008, the cost of investments was $419,126,957.

Gross unrealized appreciation and gross unrealized depreciation of investments at June 30, 2008, were as follows:


Gross unrealized:
Appreciation	$	53,263,115
Depreciation		(69,126,829	)

Net unrealized appreciation (depreciation) of investments	$	(15,863,714	)



		Notes to FINANCIAL STATEMENTS (continued) (Unaudited)

The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2007, the Fund’s last tax year end, were as follows:


Undistributed net ordinary income *	$	—
Undistributed net long-term capital gains		2,902,935


*	Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.

The tax character of distributions paid during the Fund’s last tax year ended December 31, 2007, was designated for purposes of the dividends paid deduction as follows:


Distributions from net ordinary income *			$12,075,600
Distributions from net long-term capital gains			17,326,694


*	Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.


6.	Management Fees and Other Transactions with Affiliates

The Fund’s management fee is separated into two components – a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the “Adviser”), a wholly owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), and a specific fund-level component, based only on the amount of assets within the Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

The annual fund-level fee, payable monthly, is based upon the average daily Managed Assets of the Fund as follows:


Average Daily Managed Assets	Fund-Level Fee Rate
For the first $500 million		.7000	%
For the next $500 million		.6750
For the next $500 million		.6500
For the next $500 million		.6250
For Managed Assets over $2 billion		.6000

The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of June 30, 2008, the complex level fee rate was .1868%.

The complex-level fee schedule is as follows:


Complex-Level Asset Breakpoint Level ⁽¹⁾	Effective Rate at Breakpoint Level
$55 billion		.2000	%
$56 billion		.1996
$57 billion		.1989
$60 billion		.1961
$63 billion		.1931
$66 billion		.1900
$71 billion		.1851
$76 billion		.1806
$80 billion		.1773
$91 billion		.1691
$125 billion		.1599
$200 billion		.1505
$250 billion		.1469
$300 billion		.1445


(1)	The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets (“Managed Assets” means the average daily net assets of each fund including assets attributable to preferred stock issued by or borrowings by the Nuveen funds) of Nuveen-sponsored funds in the U.S.

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into Sub-Advisory Agreements with NWQ Investment Management Company, LLC (“NWQ”) and Symphony Asset Management, LLC (“Symphony”). Nuveen owns a controlling interest in NWQ while key management of NWQ owns a non-controlling minority interest. Symphony is an indirect wholly owned subsidiary of Nuveen. NWQ manages the portion of the Fund’s investment portfolio allocated to dividend-paying common stocks including American Depositary Receipts



		Notes to FINANCIAL STATEMENTS (continued) (Unaudited)

(“ADRs”). Symphony manages the portion of the Fund’s investment portfolio allocated to senior loans and other debt instruments. NWQ and Symphony are compensated for their services to the Fund from the management fee paid to the Adviser.

The Fund pays no compensation directly to those of its Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Fund from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.

For the first eight years of the Fund’s operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily Managed Assets, for fees and expenses in the amounts and for the time periods set forth below:


Year Ending			Year Ending
January 31,			January 31,
2004 *	.32	%	2009	.32	%
2005	.32		2010	.24
2006	.32		2011	.16
2007	.32		2012	.08
2008	.32


*	From the commencement of operations.

The Adviser has not agreed to reimburse the Fund for any portion of its fees and expenses beyond January 31, 2012.


7.	Senior Loan Commitments

Unfunded Commitments

Pursuant to the terms of certain of the variable rate senior loan agreements, the Fund may have unfunded senior loan commitments. The Fund will maintain with its custodian, cash, liquid securities and/or liquid senior loans having an aggregate value at least equal to the amount of unfunded senior loan commitments. At June 30, 2008, the Fund had unfunded senior loan commitments of $175,770.

Participation Commitments

With respect to the senior loans held in the Fund’s portfolio, the Fund may: 1) invest in assignments; 2) act as a participant in primary lending syndicates; or 3) invest in participations. If the Fund purchases a participation of a senior loan interest, the Fund would typically enter into a contractual agreement with the lender or other third party selling the participation, rather than directly with the Borrower. As such, the Fund not only assumes the credit risk of the Borrower, but also that of the Selling Participant or other persons interpositioned between the Fund and the Borrower. At June 30, 2008, there were no such outstanding participation commitments.


8.	Borrowing Arrangements

Revolving Credit Agreement

On August 2, 2006, the Fund entered into a $33 million revolving credit agreement ($33 million maximum) with CITIBANK, N.A. For the period January 1, 2008 through April 7, 2008, the Fund had borrowed the full $33 million allowed, and on April 8, 2008, paid down the entire borrowing. For the six months ended June 30, 2008, the average daily balance outstanding and average annualized interest rate on these borrowings were $17,950,550 and 5.22%, respectively.

Refinancings

On April 8, 2008, the Fund paid down its $33 million revolving credit agreement described in the aforementioned paragraph using $13 million available cash and liquidity from the Fund’s custodian bank in the amount of $20 million. On April 9, 2008, the Fund entered into a $104 million prime brokerage facility with Bank of America. On April 9, 2008, the Fund utilized $78 million of the facility with Bank of America to redeem at par its $78 million outstanding auction rate FundNotes. On April 29, 2008, the Fund utilized an additional $26 million of the facility with Bank of America to repay its custodian bank the $20 million. The remaining balance was used by the Fund for investment in portfolio securities. For the six months ended June 30, 2008, the average daily balance outstanding and average annualized interest rate on these borrowings were $44,571,429 and 2.09%, respectively.

Interest expense incurred on these refinancings is recognized as “Interest expense on borrowings and amortization of borrowing costs”, on the Statement of Operations.


9.	New Accounting Pronouncement

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities.” This standard is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge items are accounted for, and c) how derivative instruments and related hedge items affect a fund’s financial position, results of operations and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. As of June 30, 2008, management does not believe the adoption of SFAS No. 161 will impact the financial statement amounts; however, additional footnote disclosures may be required about the use of derivative instruments and hedging items.


10.	Subsequent Events

Common Share Repurchases

The Board of Directors/Trustees for each of Nuveen’s 120 closed-end funds approved a program, effective August 7, 2008, under which each fund may repurchase up to 10% of its common shares.



		Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:


			Investment Operations														Less Distributions
								Distributions																		Offering
								from Net			Distributions						Net									Costs
	Beginning				Net			Investment			from Capital						Investment			Capital						and			Ending
	Common				Realized/			Income to			Gains to						Income to			Gains to						FundPreferred			Common
	Share		Net		Unrealized			FundPreferred			FundPreferred						Common			Common						Share			Share		Ending
	Net Asset		Investment		Gain			Share-			Share-						Share-			Share-						Underwriting			Net Asset		Market
	Value		Income(a)		(Loss)(b)			holders†			holders†			Total			holders			holders			Total			Discounts			Value		Value


Year Ended 12/31:
2008(e)		$23.54		$.36		$(4.87	)		$(.07	)****	$	—			(4.58	)		$(1.01	)****	$	—		$	(1.01	)	$	—		$	17.95	$	16.25
2007		25.98		.90		(1.22	)		(.05	)		(.11	)		(.48	)		(.82	)		(1.14	)		(1.96	)		—			23.54		21.81
2006		22.33		.89		4.48			(.05	)		(.09	)		5.23			(.88	)		(.70	)		(1.58	)		—	*		25.98		27.09
2005		21.54		.83		1.76			(.05	)		(.05	)		2.49			(.78	)		(.91	)		(1.69	)		(.01	)		22.33		21.37
2004(c)		19.10		.67		2.69			(.03	)		—			3.33			(.67	)		(.10	)		(.77	)		(.12	)		21.54		19.35


	FundNotes at End of Period						FundPreferred Shares at End of Period
			Average Market		Asset								Borrowings at End of Period
	Aggregate		Value Per		Coverage Per		Aggregate		Liquidation				Aggregate
	Amount		$25,000 of		$1,000 of		Amount		and Market		Asset		Amount		Asset
	Outstanding		Principal		Principal		Outstanding		Value		Coverage		Outstanding		Coverage
	(000)		Amount		Amount		(000)		Per Share		Per Share		(000)		Per $1,000


Year Ended 12/31:
2008(e)	$	—	$	—	$	—	$	45,000	$	25,000	$	164,184	$	104,000	$	3,842
2007		78,000		25,000		5,789		45,000		25,000		207,531		33,000		14,684
2006		78,000		25,000		6,202		45,000		25,000		225,411		33,000		15,659
2005		78,000		25,000		5,544		45,000		25,000		196,918		—		—
2004(c)		78,000		25,000		5,403		45,000		25,000		190,805		—		—


(a)	Per share Net Investment Income is calculated using the average daily shares method.
(b)	Net of federal corporate income taxes on long-term capital gains retained by the Fund per share as follows:


	Long-Term
	Capital Gains
	Retained
Year Ended 12/31:
2008(e)		N/A
2007	$	0.21
2006		.33
2005		N/A
2004(c)		N/A


(c)	For the period January 27, 2004 (commencement of operations) through December 31, 2004.


(d)	Borrowings interest expense includes amortization of borrowing costs.
(e)	For the six months ended June 30, 2008.


						Ratios/Supplemental Data
								Ratios to Average						Ratios to Average
								Net Assets Applicable to						Net Assets Applicable to
								Common Shares Before						Common Shares After
Total Returns								Credit/Reimbursement						Credit/Reimbursement***
			Based
			on
			Common			Ending Net
Based			Share			Assets
on			Net			Applicable to					Net						Net			Portfolio
Market			Asset			Common					Investment						Investment			Turnover
Value**			Value**			Shares (000)		Expenses††			Income††			Expenses††			Income††			Rate



	(21.07	)%		(19.62	)%		$250,531		4.12	%*****		2.94	%*****		3.63	%*****		3.43	%*****		9	%
	(12.99	)		(2.38	)		328,557		3.10			2.99			2.64			3.45			25
	35.52			24.19			360,740		2.79			3.28			2.34			3.73			25
	20.00			11.93			309,452		2.26			3.36			1.81			3.81			26
	.91			17.18			298,449		1.80	*****		3.30	*****		1.37	*****		3.73	*****		16


*	Rounds to less than $.01 per share.

** •

Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.


	Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
•	The Fund elected to retain a portion of its realized long-term capital gains for the tax years ended December 31, and pay required federal corporate income taxes on these amounts. As reported on Form 2439, Common shareholders on record date must include their pro-rata share of these gains on their applicable federal tax returns, and are entitled to take offsetting tax credits, for their pro-rata share of the taxes paid by the Fund. The standardized total returns shown above do not include the economic benefit to Common shareholders on record date of these tax credits/refunds. The Fund’s corresponding Total Return Based on Market Value and Common Share Net Asset Value when these benefits are included are as follows:

Total Returns

Common

Based on

Shareholders

Based on

Common Share

of Record on

Market Value

Net Asset Value

Tax Year Ended 12/31:

2008(e)

N/A

2007

December 31

(12.18

(1.54

2006

December 29

37.15

25.75

2005

N/A

2004(c)

N/A


***	After custodian fee credit and expense reimbursement, where applicable.
****	Represents distributions paid “From and in excess of net investment income” for the six months ended June 30, 2008.
*****	Annualized.


†	The amounts shown are based on Common share equivalents.


†† •	Ratios do not reflect the effect of dividend payments to FundPreferred shareholders.


•	Income ratios reflect income earned on assets attributable to FundPreferred shares, FundNotes and borrowings, where applicable.
•	Each Ratio of Expenses to Average Net Assets Applicable to Common Shares and each Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares includes the effect of the interest expense paid on FundNotes and borrowings as follows:


	Ratios of FundNotes Interest Expense to			Ratios of Borrowings Interest Expense to Average
	Average Net Assets Applicable to Common Shares(d)			Net Assets Applicable to Common Shares(d)

Year Ended:
2008(e)		1.85	%*****		.71	%*****
2007		1.11			.51
2006		1.11			.23	*
2005		.80			—
2004(c)		.37	*		—


N/A	Not applicable for the six months ended June 30, 2008. The Fund did not elect to retain a portion of its realized long-term capital gains prior to tax year ended December 31, 2006.

See accompanying notes to the financial statements.

Annual Investment

Management Agreement

APPROVAL PROCESS

The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser (including sub-advisers) will continue in effect from year to year only if its continuance is approved at least annually by the fund’s board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or “interested persons” of any parties (the “Independent Board Members”), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund’s board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 28-29, 2008 (the “May Meeting”), the Board of Trustees (the “Board” and each Trustee, a “Board Member”) of the Fund, including a majority of the Independent Board Members, considered and approved the continuation of the advisory and sub-advisory agreements for the Fund for an additional one-year period. These agreements include the investment advisory agreement between Nuveen Asset Management (“NAM”) and the Fund and the sub-advisory agreements between NAM and NWQ Investment Management Company, LLC (“NWQ”) and NAM and Symphony Asset Management LLC (“Symphony” and, together with NWQ, the “Sub-Advisers”), respectively. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 23, 2008 (the “April Meeting”). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting.

In addition, in evaluating the advisory agreement (the “Investment Management Agreement”) and sub-advisory agreements (the “Sub-Advisory Agreements,” and the Investment Management Agreement and the Sub-Advisory Agreements are each an “Advisory Agreement”), as described in further detail below, the Independent Board Members reviewed a broad range of information relating to the Fund, NAM and the Sub-Advisers (NAM and the Sub-Advisers are each a “Fund Adviser”), including absolute performance, fee and expense information for the Fund as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable), the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries), and other information regarding the organization, personnel, and services provided by the respective Fund Adviser. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of the Fund Adviser, its services and the Fund resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to the Fund’s Advisory Agreements. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.


A.	Nature, Extent and Quality of Services

In considering renewal of the Investment Management Agreement, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM’s organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Fund; the performance record of the Fund (as described in further detail below); and any initiatives Nuveen had taken for

the applicable fund product line. With respect to personnel, the Independent Board Members evaluated the background, experience and track record of the Fund Adviser’s investment personnel. In this regard, the Independent Board Members considered the additional investment in personnel to support Nuveen fund advisory activities, including in operations, product management and marketing as well as related fund support functions, including sales, executive, finance, human resources and information technology. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM’s ability to attract and retain high quality investment personnel.

In evaluating the services of NAM, the Independent Board Members also considered NAM’s oversight of the performance, business activities and compliance of the Sub-Advisers, the ability to supervise the Fund’s other service providers and given the importance of compliance, NAM’s compliance program. Among other things, the Independent Board Members considered the report of the chief compliance officer regarding the Fund’s compliance policies and procedures.

In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.

The Independent Board Members reviewed an evaluation of each Sub-Adviser from NAM, including information as to the process followed by NAM in evaluating sub-advisers. The evaluation also included information relating to each Sub-Adviser’s organization, operations, personnel, assets under management, investment philosophy, strategies and techniques in managing the Fund, developments affecting each Sub-Adviser, and an analysis of each Sub-Adviser. The Board considered the performance of the portion of the investment portfolio of the Fund for which the respective Sub-Adviser is responsible. The Board also recognized that the Sub-Advisory Agreements were essentially agreements for portfolio management services only and the Sub-Advisers were not expected to supply other significant administrative services to the Fund. During the last year, the Independent Board Members noted that they visited several sub-advisers to the Nuveen funds, meeting their key investment and business personnel. In this regard, the Independent Board Members visited each Sub-Adviser during 2007. The Independent Board Members also noted that they anticipate visiting each sub-adviser to the Nuveen funds at least once over the course of a multiple-year rotation. The Independent Board Members further noted that NAM recommended the renewal of the Sub-Advisory Agreements and considered the basis for such recommendations and any qualifications in connection therewith.

In addition to the foregoing services, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, its secondary market support activities and the costs of such activities. The Independent Board Members recognized Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to timely provide information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining its closed-end fund website; and providing educational seminars. With respect to closed-end funds that utilize leverage through the issuance of auction rate preferred securities (“ARPS”), the Board has recognized the unprecedented market conditions in the auction rate market industry with the failure of the auction process. The Independent Board Members noted Nuveen’s efforts and the resources and personnel employed to analyze the situation, explore potential alternatives and develop and implement solutions that serve the interests of the affected funds and all of their respective shareholders. The Independent Board Members further noted Nuveen’s commitment and efforts to keep investors and financial advisers informed as to its progress in addressing the ARPS situation through, among other things, conference calls, press releases, and information posted on its website as well as its refinancing activities. The Independent Board Members also noted Nuveen’s continued support for holders of preferred shares of its closed-end funds by, among other things, seeking distribution for preferred shares with new market participants, managing relations with remarketing agents and the broker community, maintaining the leverage and risk management of leverage and maintaining systems necessary to test compliance with rating agency criteria.

Annual Investment

Management Agreement

APPROVAL PROCESS (continued)

Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the Fund under the Investment Management Agreement or respective Sub-Advisory Agreement, as applicable, were satisfactory.


B.	The Investment Performance of the Fund and Fund Advisers

The Board considered the investment performance of the Fund, including the Fund’s historic performance as well as its performance compared to funds with similar investment objectives (the “Performance Peer Group”) based on data provided by an independent third party (as described below). In addition, the Independent Board Members reviewed the Fund’s historic performance compared to recognized and/or customized benchmarks (as applicable).

In evaluating the performance information, the Board considered whether the Fund has operated within its investment objectives and parameters and the impact that the investment mandates may have had on performance. In addition, in comparing a fund’s performance with that of its Performance Peer Group, the Independent Board Members took into account that the closest Performance Peer Group in certain instances may not adequately reflect the respective fund’s investment objectives and strategies thereby hindering a meaningful comparison of the fund’s performance with that of the Performance Peer Group.

The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund’s Performance Peer Group as well as recognized and/or customized benchmarks (as appropriate) for the one-, three- and five-year periods (as applicable) ending December 31, 2007 and with the Fund’s Performance Peer Group for the quarter, one-, three-, and five- year periods ending March 31, 2008 (as applicable). This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. Based on their review, the Independent Board Members determined that the Fund’s investment performance over time had been satisfactory.


C.	Fees, Expenses and Profitability

1. Fees and Expenses

The Board evaluated the management fees and expenses of the Fund reviewing, among other things, such Fund’s gross management fees (which take into account breakpoints), net management fees (which take into account fee waivers or reimbursements) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the gross management fees, net management fees (after waivers and/or reimbursements) and total expense ratios (before and after waivers) of a comparable universe of unaffiliated funds based on data provided by an independent data provider (the “Peer Universe”) and/or a more focused subset of funds therein (the “Peer Group”). The Independent Board Members further reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the size of the Fund relative to peers, the size and particular composition of the Peer Group, the investment objectives of the peers, expense anomalies, and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. The Independent Board Members also considered, among other things, the differences in the use of leverage. In addition, the Independent Board Members noted the limited Peer Groups available for the Nuveen funds with multi-sleeves of investments. In reviewing the fee schedule for the Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Based on their review of the fee and expense information provided, the Independent Board Members determined that the Fund’s management fees and net total expense ratio were reasonable in light of the nature, extent and quality of services provided to the Fund.

2. Comparisons with the Fees of Other Clients

The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such clients include separately managed accounts (both retail and institutional accounts) and funds that are not offered by Nuveen but are sub-advised by one of Nuveen’s investment management teams. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Fund and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Fund. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Fund (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Fund, the Independent Board Members believe such facts justify the different levels of fees.

In considering the fees of each Sub-Adviser, the Independent Board Members also considered the pricing schedule or fees that each Sub-Adviser charges for similar investment management services for other fund sponsors or clients (such as retail and/or institutional managed accounts) as applicable. With respect to Symphony, the Independent Board Members also reviewed the fees it assesses for equity and taxable fixed-income hedge funds and hedge accounts it manages, which include a performance fee.

3. Profitability of Fund Advisers

In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years and the allocation methodology used in preparing the profitability data. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members considered Nuveen’s profitability compared with other fund sponsors prepared by two independent third party service providers as well as comparisons of the revenues, expenses and profit margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen.

In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations.

Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen’s investment in its fund business.

Based on its review, the Independent Board Members concluded that Nuveen’s level of profitability for its advisory activities was reasonable in light of the services provided.

In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Fund as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Fund, if any. See Section E below for additional information on indirect benefits the

Annual Investment

Management Agreement

APPROVAL PROCESS (continued)

Fund Adviser may receive as a result of its relationship with the Fund. Based on their review of the overall fee arrangements of the Fund, the Independent Board Members determined that the advisory fees and expenses of the Fund were reasonable.


D.	Economies of Scale and Whether Fee Levels Reflect These Economies of Scale

With respect to economies of scale, the Independent Board Members recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base. The Independent Board Members therefore considered whether the Fund has appropriately benefited from any economies of scale and whether there is potential realization of any further economies of scale. In considering economies of scale, the Independent Board Members have recognized that economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Accordingly, the Independent Board Members reviewed and considered the fund-level breakpoints in the advisory fee schedules that reduce advisory fees. In this regard, given that the Fund is a closed-end fund, the Independent Board Members recognized that although the Fund may from time to time make additional share offerings, the growth in its assets will occur primarily through appreciation of the Fund’s investment portfolio.

In addition to fund-level advisory fee breakpoints, the Board also considered the Fund’s complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Fund, are reduced as the assets in the fund complex reach certain levels. In evaluating the complex-wide fee arrangement, the Independent Board Members recognized that the complex-wide fee schedule was recently revised in 2007 to provide for additional fee savings to shareholders and considered the amended schedule. The Independent Board Members further considered that the complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Based on their review, the Independent Board Members concluded that the breakpoint schedule and complex-wide fee arrangement were acceptable and desirable in providing benefits from economies of scale to shareholders.

E. Indirect Benefits

In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with the Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen’s preferred trading desk and for serving as a co-manager in the initial public offering of new closed-end exchange traded funds.

In addition to the above, the Independent Board Members considered whether the Fund Adviser received any benefits from soft dollar arrangements whereby a portion of the commissions paid by the Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Fund and other clients. With respect to NAM, the Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating “commissions,” NAM intends to comply with the applicable safe harbor provisions.

The Independent Board Members also considered that NWQ may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Fund’s portfolio transactions. The Independent Board Members noted that such Sub-Adviser’s profitability may be lower if it were required to pay for this research with hard dollars. The Board also considered that Symphony currently does not enter into soft dollar arrangements; however, it has adopted a soft dollar policy in the event it does so in the future.

Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Fund were reasonable and within acceptable parameters.

F. Other Considerations

The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Investment Management Agreement and Sub-Advisory Agreements are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to the Fund and that the Investment Management Agreement and the Sub-Advisory Agreements be renewed.

Reinvest Automatically

EASILY and CONVENIENTLY

Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.

Nuveen Closed-End Funds Dividend Reinvestment Plan

Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares.

By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested.

It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.

Easy and convenient

To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.

How shares are purchased

The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

Flexible

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee.

You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.

The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.

Call today to start reinvesting dividends and/or distributions

For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

Glossary of

TERMS USED in this REPORT


n	*Average Annual Total Return:* This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered.

n	*Collateralized Debt Obligations (CDOs):* Collateralized debt obligations are a type of asset-backed security constructed from a portfolio of fixed-income assets. CDOs usually are divided into different tranches having different ratings and paying different interest rates. Losses, if any, are applied in reverse order of seniority and so junior tranches generally offer higher coupons to compensate for added default risk.

n	*Market Yield (also known as Dividend Yield or Current Yield):* Market yield is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a tax return of capital.

n	*Net Asset Value (NAV):* A Fund’s common share NAV per share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day.

Board of Trustees

John P. Amboian

Robert P. Bremner

Jack B. Evans

William C. Hunter

David J. Kundert

William J. Schneider

Judith M. Stockdale

Carole E. Stone

Terence J. Toth

Fund Manager

Nuveen Asset Management

333 West Wacker Drive

Chicago, IL 60606

Custodian

State Street Bank & Trust Company

Boston, MA

Transfer Agent and

Shareholder Services

State Street Bank & Trust Company

Nuveen Funds

P.O. Box 43071

Providence, RI 02940-3071

(800) 257-8787

Legal Counsel

Chapman and Cutler LLP

Chicago, IL

Independent Registered

Public Accounting Firm

Ernst & Young LLP

Chicago, IL

The Fund intends to repurchase or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Fund redeemed all 3,120 outstanding shares of its FundNotes. Any future repurchases or redemptions will be reported to shareholders in the next annual or semi-annual report.



		Other Useful INFORMATION

QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION

You may obtain (i) the Fund’s quarterly portfolio of investments, (ii) information regarding how the Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, 2008, and (iii) a description of the policies and procedures that the Fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.

You may also obtain this and other Fund information directly from the Securities and Exchange Commission (“SEC”). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.

CEO Certification Disclosure

The Fund’s Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.

The Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

Nuveen Investments:

SERVING INVESTORS FOR GENERATIONS

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility.

Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles.

We offer many different investing solutions for our clients’ different needs.

Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara, Symphony and Tradewinds. In total, the Company managed $152 billion of assets on June 30, 2008.

Find out how we can help you reach your financial goals.

To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest.

Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.


Learn more about Nuveen Funds at:	www.nuveen.com/cef



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ESA-C-0608D

ITEM 2. CODE OF ETHICS.