N-CSRS 1 file001.txt NUVEEN MICHIGAN DIVIDEND ADVANTAGE MUNICIPAL 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 811-09453 --------------------- Nuveen Michigan Dividend Advantage Municipal 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: February 28 ------------------ Date of reporting period: August 31, 2009 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. LOGO: NUVEEN INVESTMENTS Closed-End Funds Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Semi-Annual Report August 31, 2009 -------------------- -------------------- ------------------- NUVEEN MICHIGAN NUVEEN OHIO NUVEEN OHIO QUALITY INCOME DIVIDEND ADVANTAGE QUALITY INCOME MUNICIPAL FUND, INC. MUNICIPAL FUND 2 MUNICIPAL FUND, INC. NUM NBJ NUO -------------------- -------------------- NUVEEN OHIO NUVEEN MICHIGAN DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND NXI NZW -------------------- -------------------- NUVEEN MICHIGAN NUVEEN OHIO PREMIUM INCOME DIVIDEND ADVANTAGE MUNICIPAL FUND, INC. MUNICIPAL FUND 3 NMP NVJ AUGUST 09 LIFE IS COMPLEX. Nuveen makes things e-simple. It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. LOGO: NUVEEN INVESTMENTS [PHOTO OF ROBERT P. BREMNER] Chairman's Letter to Shareholders DEAR SHAREHOLDER, The financial markets in which your Fund operates continue to reflect the larger economic crosscurrents. The illiquidity that infected global credit markets over the last year appears to be slowly but steadily receding. The major institutions that are the linchpin of the international financial system are strengthening their capital structures, but many still struggle with losses in their various portfolios. There are encouraging signs of recovery in European and Asian economies, while the U.S. economy continues to feel the impact of job losses and an over-borrowed consumer. Global trends include modestly increasing trade and increased concern about the ability of the U.S. government to address its substantial budgetary deficits. Identifying those developments that will define the future is never easy, but rarely is it more difficult than at present. After considerable volatility in the first few months of 2009, both the fixed-income and equity markets have seen a partial recovery. A fundamental component of a successful long-term investment program is a commitment to remain invested during market downturns in order to be better positioned to benefit from any recovery. Another component is to re-evaluate investment disciplines and tactics and to confirm their validity following periods of extreme volatility and market dislocation, such as we have recently experienced. Your Board carried out an intensive review of investment performance with these objectives in mind during April and May of this year as part of the annual management contract renewal process. I encourage you to read the description of this process in the Annual Investment Management Agreement Approval Process section of this report. Remaining invested through market downturns and reconfirming the appropriateness of a long term investment strategy is as important for our shareholders as it is for professional investment managers. For that reason, I again encourage you to remain in communication with your financial consultant on these subjects. For recent developments on all your Nuveen Funds, please visit the Nuveen web site: www.nuveen.com. Nuveen remains committed to resolving the issues connected with outstanding auction rate preferred shares. In September 2009, Nuveen completed the refinancing at par of all the outstanding auction rate preferred shares issued by its taxable closed-end funds. For a variety of reasons, refinancing the remaining outstanding preferred shares issued by the municipal closed-end funds is taking longer but Nuveen is diligently pursuing a range of options to accomplish this. Please consult the Nuveen web site for the most recent information about the redemption of municipal auction rate preferred shares. On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner ---------------------- Robert P. Bremner Chairman of the Board October 20, 2009 Nuveen Investments 1 Portfolio Manager's Comments Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) Nuveen Michigan Dividend Advantage Municipal Fund (NZW) Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) Nuveen Ohio Dividend Advantage Municipal Fund (NXI) Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) Portfolio manager Daniel Close reviews key investment strategies and the six-month performance of the Nuveen Michigan and Ohio Funds. Dan, who joined Nuveen in 2000, assumed portfolio management responsibility for these seven Funds in 2007. WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED AUGUST 31, 2009? During this reporting period, municipal bonds prices generally rose as strong cash flows into municipal bond funds combined with tighter new issue supply to provide favorable supply and demand conditions. Given the restricted new issue supply during the period, investment activity in these Funds was somewhat more limited than usual. One reason for the supply reduction was the introduction of the Build America Bond program. Build America Bonds are a new class of taxable municipal debt created as part of the February 2009 economic stimulus package. They provide municipal issuers with a federal subsidy equal to 35% of the security's interest payments, and therefore offer issuers an attractive alternative to traditional tax-exempt debt. Overall, our purchases during this period focused on higher credit quality bonds, including general obligation issues in both Michigan and Ohio and revenue bonds such as water and sewer and non-AMT (alternative minimum tax) housing credits in Michigan. We also found selective opportunities to increase our credit exposure through the purchase of uninsured health care bonds in both states. Supply was especially plentiful in the health care sector, due to the fact that hospitals generally do not qualify for the Build America Bond program and so they therefore must continue to issue bonds in the tax-exempt municipal market. While these Funds have closed out their positions in Puerto Rico general obligation bonds, we remained positive on Puerto Rico sales tax credits, adding these A rated bonds to the portfolios of the Ohio Funds. CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. 2 Nuveen Investments Cash for new purchases during this period was generated largely by bond calls. The Michigan Funds also took advantage of opportunities to sell a charter school issue, as well as a lower-rated hospital bond in NZW, due to our concerns about these two credits. In the Ohio Funds, we sold our position in a long-term care issue that was not performing in line with our expectations and some short-dated, high-quality securities at various times during the period in order to fund purchases. We also found an opportunity to sell a holding from the three Michigan Funds that was purchased when yields were lower and replaced it with a similar credit that yielded comparatively more. This process allowed us to maintain the Funds' current portfolio characteristics while also strengthening their future income streams and generating a tax loss that can be used to offset capital gains. We continued to use inverse floating rate securities(1) in all three of the Michigan Funds and added inverse floaters to the four Ohio Funds during the latter part of the period as a form of leverage. We employ inverse floaters for a variety of reasons, including duration(2) management and income enhancement. As of August 31, 2009, the inverse floaters remained in place in all of these Funds. HOW DID THE FUNDS PERFORM? Individual results for these Funds, as well as relevant index and peer group information, are presented in the accompanying table. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE* FOR PERIODS ENDED 8/31/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------------------------- MICHIGAN FUNDS NUM 8.78% 5.72% 3.59% 5.86% NMP 8.19% 4.89% 3.49% 5.80% NZW 12.18% 5.86% 3.82% N/A Standard & Poor's (S&P) Michigan Municipal Bond Index(3) 6.17% 2.58% 3.46% 5.12% Lipper Michigan Municipal Debt Funds Average(4) 10.95% 4.43% 3.25% 5.81% OHIO FUNDS NUO 9.35% 7.21% 3.98% 5.64% NXI 9.03% 7.33% 4.53% N/A NBJ 9.94% 5.25% 3.64% N/A NVJ 9.23% 7.63% 4.60% N/A Standard & Poor's (S&P) Ohio Municipal Bond Index(3) 9.56% 4.34% 3.47% 4.95% Lipper Other States Municipal Debt Funds Average(5) 11.12% 4.53% 3.52% 5.56% Standard & Poor's (S&P) National Municipal Bond Index(6) 6.49% 4.68% 4.00% 5.30% Barclays Capital Municipal Bond Index(7) 5.61% 5.67% 4.16% 5.40% --------------------------------------------------------------------------------------------------
(1) An inverse floating rate security, also known as inverse floaters, is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during the reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. (2) Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. * Six-month returns are cumulative; returns for one-year, five-year, and ten-year are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. (3) The Standard & Poor's (S&P) Municipal Bond Indexes for Michigan and Ohio are unleveraged market value-weighted indexes designed to measure the performance of the investment-grade municipal bond markets in Michigan and Ohio, respectively. These indexes do not reflect any initial or on going expenses and are not available for direct investment. (4) The Lipper Michigan Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: Six-months, 7 funds; 1-year, 7 funds; 5-year, 7 funds; and 10-year, 4 funds. Fund and Lipper returns assume reinvestment of dividends. (5) The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: Six-months, 46 funds; 1-year, 46 funds; 5-year, 27 funds; and 10-year, 18 funds. The performance of the Lipper Other States category represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions. Fund and Lipper returns assume reinvestment of dividends. (6) The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the investment-grade U.S. municipal bond market. This index does not reflect any initial or on going expenses and is not available for direct investment. (7) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Barclays Capital index do not reflect any expenses. An index is not available for direct investment. Nuveen Investments 3 For the six months ended August 31, 2009, the cumulative returns on common share net asset value (NAV) for NUM, NMP, and NZW exceeded the return of the Standard & Poor's (S&P) Michigan Municipal Bond Index, and NBJ outperformed the S&P Ohio Municipal Bond Index, while the remaining three Ohio Funds lagged the S&P Ohio index by a slight margin. NZW outperformed the average return for the Lipper Michigan Municipal Debt Funds Average, while the other six Funds trailed the averages for their respective Lipper peer groups. All of the Funds outperformed the Standard & Poor's (S&P) National Municipal Bond Index and the Barclays Capital Municipal Bond Index. These relatively strong performance results were achieved in economic and market environments that remained generally weak, particularly in Michigan.3The most recent data for gross domestic product (GDP) by state (2008) showed that Michigan's economy contracted at an annual rate of -1.5%, compared with a national annual growth rate of 0.7%, ranking Michigan 47th among the 50 states.3Ohio's annual GDP rate was -0.7%, placing it 45th. As of August 2009, Michigan had an unemployment rate of 15.2%, the highest in the nation and a 26-year high for the state, up from 12.0% six months earlier. In Ohio, the jobless rate in August 2009 was 10.8%, the most since October 1983, up from 9.5% in February 2009. Both rates were higher than August 2009's national unemployment rate of 9.7%. Much of the deterioration in economic growth and employment can be attributed to Michigan and Ohio's heavier dependence on the declining manufacturing sector, particularly the troubled auto industry, relative to the national average. During this reporting period, key management factors that influenced the Funds' returns during this period included duration and yield curve positioning, credit exposure, sector allocations, and individual security selection. In addition, the use of leverage was an important factor affecting the Funds' performances over this period. The impact of leverage is discussed in more detail on page six. As noted, municipal bonds generally performed well over this period. Bonds in the Barclays Capital Municipal Bond Index with maturities longer than 15 years, especially those with the longest maturities (22 years and or more), benefited the most in this environment. These bonds generally outperformed credits with shorter maturities, with bonds maturing in one to two years posting the weakest returns for the period. NUM, NMP, NZW, NUO, and NBJ had relatively smaller exposures to the underperforming shorter end of the yield curve, which was beneficial for their performances. In particular, NZW and NBJ, which had some of the longer durations among these Funds, were helped by their duration and yield curve positioning. In NVJ and--to a lesser extent--NXI, greater exposure to the shorter end of the curve caused duration and yield curve positioning to be relative negatives for performance. 4 Nuveen Investments Demand increased for municipal bonds among both institutional and individual investors, especially for lower-rated credits, was driven by a variety of factors. These included concerns about possible tax increases, the need to rebalance portfolio allocations and growing appetite to assume additional risk. At the same time, the supply of new municipal paper declined and bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. All of the Michigan Funds were underweighted in the lower-rated credit categories, which hurt their returns during this performance period. The four Ohio Funds benefited from their relative underweighting of the AAA category and saw positive contributions from their exposure to BBB and lower-rated credits. Holdings that generally contributed positively to the Funds' returns included industrial development revenue (IDR), health care and zero coupon bonds, all of which outperformed the overall municipal market during this period. NBJ, which had the largest allocations of IDR and health care bonds among these seven Funds, was particularly helped by the outstanding performance of the IDR sector. Bonds backed by the 1998 master tobacco settlement agreement also posted strong returns. As of August 31, 2009, the Ohio Funds' holdings of lower-rated tobacco bonds ranged from approximately 3% to 5% of total net assets, providing a meaningful contribution to performance. The Michigan Funds each held about 1% of their portfolios in tobacco bonds. Pre-refunded(8) bonds, which often are backed by U.S. Treasury securities and which were one of the top performing segments of the municipal bond market over the past two years, performed especially poorly during this period. This was due primarily to their shorter effective maturities and higher credit quality. NUM, NXI, and NVJ held the heaviest weightings of pre-refunded bonds among these Funds. Additional market segments that underperformed the overall municipal market included general obligation, resource recovery, water and sewer and insured credits. In addition, all of the Ohio Funds had negative returns from the utilities sector, which struggled during this six-month period. Individual security selection was also a factor in the Funds' performances. Although older, previously pre-refunded bonds tended to underperform the municipal market during this period, we saw positive contributions from new pre-refunding activity in certain Funds, which benefited them through price appreciation and enhanced credit quality. All three of the Michigan Funds were helped by the pre-refunding of a health care bond, particularly NZW, which had the largest position. NXI also had two issues pre-refunded during this period. (8) Pre-refundings, also known as advance refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers. Nuveen Investments 5 IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE One important factor impacting the returns of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, use of leverage also can expose common shareholders to additional risk--especially when market conditions are unfavorable. For example, as the prices of securities held by a Fund declines, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising. During this six-month period, leverage had a positive impact on the total return performance of these Funds. RECENT DEVELOPMENTS REGARDING THE FUND'S LEVERAGED CAPITAL STRUCTURE As noted in the last several shareholder reports, the auction rate preferred shares issued by many closed-end funds, including these Nuveen Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more auction rate preferred shares have been submitted for sale in their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February, 2008. This means that these auctions have "failed to clear," and that many, or all, of the auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the auction rate preferred shares. In the recent market, with short-term rates at multi-generational lows, those maximum rates also have been low. One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been. 6 Nuveen Investments As noted in past shareholder reports, the Funds' Board of Directors/Trustees authorized a plan to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the Funds' outstanding auction rate preferred shares. The amount of TOBs that a Fund may use varies according to the composition of each Fund's portfolio. Some Funds have a greater ability to use TOBs than others. As of August 31, 2009, the amounts of auction rate preferred securities redeemed, at par, each of the Funds are as shown in the accompanying table. AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMEDP REFERRED SHARES -------------------------------------------------------------------------------- NUM $ 6,675,000 7.10% NMP $ 2,300,000 4.11% NZW $ 1,725,000 10.78% NUO -- -- NXI -- -- NBJ $ 900,000 3.75% NVJ -- -- -------------------------------------------------------------------------------- Subsequent to the reporting period, NUO noticed for redemption, at par, an additional $4 million auction rate preferred securities. The Funds, their Board of Directors/Trustees and Fund Management continue to work to resolve this situation. Some Funds have issued Variable Rate Demand Preferred Shares, but these issuances have been limited since it has been difficult to find liquidity facilities on economically viable terms given the constrained credit environment. The Funds also have tried to develop other forms of preferred stock that have longer terms and do not require a Fund to obtain and pay for the services of an external liquidity provider. However, the Funds cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed. As of August 31, 2009, 78 Nuveen closed-end municipal funds have redeemed, at par, a portion of their outstanding auction rate preferred shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' auction rate preferred share redemptions to approximately $2.3 billion of the original $11 billion outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. Nuveen Investments 7 Common Share Dividend and Share Price Information During the six-month reporting period ended August 31, 2009, all seven of the Michigan and Ohio Funds had one increase in their monthly dividends. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of August 31, 2009, all of the Funds in this report had positive UNII balances for tax purposes, based upon our best estimate, and positive UNII balances for financial statement purposes. COMMON SHARE REPURCHASES, MANAGEMENT INITIATIVES AND SHARE PRICE INFORMATION Over the period, the Funds' managers have taken a series of steps designed to enhance common share value, including the repurchase of outstanding common shares. As of August 31, 2009, the following Funds cumulatively repurchased common shares as shown in the accompanying table. Since the inception of the Funds repurchase program, NUO and NBJ have not repurchased any of their outstanding common shares. COMMON SHARES % OF OUTSTANDING FUND REPURCHASED COMMON SHARES -------------------------------------------------------------------------------- NUM 76,200 0.7% NMP 69,000 0.9% NZW 900 0.0% NXI 600 0.0% NVJ 1,700 0.1% -------------------------------------------------------------------------------- 8 Nuveen Investments During the six-month reporting period, the following Funds repurchased common shares at a weighted average price and a weighted average discount per common share as shown in the accompanying table. WEIGHTED AVERAGE WEIGHTED AVERAGE COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE REPURCHASED REPURCHASED REPURCHASED -------------------------------------------------------------------------------- NUM 76,200 $ 10.29 23.56% NMP 42,300 $ 10.20 22.70% NZW 900 $ 10.05 20.27% -------------------------------------------------------------------------------- The repurchase program helps promote attractive secondary market trading markets for the Funds as measured by premium/discount levels relative to peers, and market quality measures as daily trading volume, bid/ask spreads, quote depth and price continuity. As of August 31, 2009, the Funds' common share prices were trading at discounts to their common share NAVs as shown in the accompanying table. 8/31/09 SIX-MONTH AVERAGE FUND (-)DISCOUNT (-)DISCOUNT -------------------------------------------------------------------------------- NUM -11.82% -17.73% NMP -12.43% -17.90% NZW -11.96% -15.57% NUO -6.25% -9.58% NXI -7.14% -10.47% NBJ -8.36% -10.74% NVJ -7.73% -8.93% -------------------------------------------------------------------------------- Nuveen Investments 9 NUM Performance OVERVIEW | Nuveen Michigan Quality Income Municipal Fund, Inc. as of August 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.68 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.38 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -11.82% -------------------------------------------------------------------------------- Market Yield 5.54% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.04% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $167,312 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.28 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.51 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 23.08% 8.78% -------------------------------------------------------------------------------- 1-Year 9.09% 5.72% -------------------------------------------------------------------------------- 5-Year 1.56% 3.59% -------------------------------------------------------------------------------- 10-Year 3.68% 5.86% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 36.9% -------------------------------------------------------------------------------- U.S. Guaranteed 20.0% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.6% -------------------------------------------------------------------------------- Utilities 10.1% -------------------------------------------------------------------------------- Water and Sewer 7.3% -------------------------------------------------------------------------------- Health Care 7.1% -------------------------------------------------------------------------------- Other 8.0% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 43% AA 29% A 22% BBB 4% BB or Lower 1% N/R 1% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Sep 0.0555 Oct 0.0555 Nov 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 Mar 0.0555 Apr 0.0555 May 0.0585 Jun 0.0585 Jul 0.0585 Aug 0.0585 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 12.44 12.46 12.25 11.56 11.29 10.666 8.23 9.46 10.835 10.64 10.64 9.958 9.2 9.69 9.01 8.47 9.1 9.47 10.09 11.15 10.84 10.57 11.05 11.23 11.23 10.52 10.61 10.06 9.86 10.27 10.35 10.69 10.65 10.78 11.01 11.27 11.52 11.51 11.65 11.68 11.68 11.52 11.5 11.45 11.62 11.62 11.72 12.092 12.41 12.34 12.45 12.48 12.63 8/31/09 12.68 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 10 Nuveen Investments NMP Performance OVERVIEW | Nuveen Michigan Premium Income Municipal Fund, Inc. as of August 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 31% AA 27% A 35% BBB 6% BB or Lower and N/R 1% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Sep 0.055 Oct 0.053 Nov 0.053 Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Apr 0.053 May 0.0565 Jun 0.0565 Jul 0.0565 Aug 0.0565 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 12.35 12.38 12.192 11.34 11.1 10.55 7.95 9.49 10.25 10.25 10.54 9.91 9.2 9.14 8.79 8.35 8.73 9.24 9.94 11 10.55 10.3899 10.61 10.966 11.01 10.444 10.44 10 9.76 10.12 10.1899 10.44 10.4 10.5199 10.75 10.94 11.18 11.1875 11.37 11.56 11.49 11.23 11.08 11.2 11.29 11.33 11.42 11.6 11.96 11.92 11.9536 12.056 12.27 8/31//09 12.2638 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.26 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.00 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.43% -------------------------------------------------------------------------------- Market Yield 5.53% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.03% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 107,520 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.27 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.26 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 20.92% 8.19% -------------------------------------------------------------------------------- 1-Year 5.76% 4.89% -------------------------------------------------------------------------------- 5-Year 2.03% 3.49% -------------------------------------------------------------------------------- 10-Year 4.29% 5.80% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 37.0% -------------------------------------------------------------------------------- Tax Obligation/Limited 14.1% -------------------------------------------------------------------------------- U.S. Guaranteed 12.9% -------------------------------------------------------------------------------- Water and Sewer 11.6% -------------------------------------------------------------------------------- Utilities 10.2% -------------------------------------------------------------------------------- Other 14.2% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. Nuveen Investments 11 NZW Performance OVERVIEW | Nuveen Michigan Dividend Advantage Municipal Fund as of August 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.22 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.88 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -11.96% -------------------------------------------------------------------------------- Market Yield 5.55% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.06% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 28,675 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.92 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.84 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 16.89% 12.18% -------------------------------------------------------------------------------- 1-Year 4.28% 5.86% -------------------------------------------------------------------------------- 5-Year 1.61% 3.82% -------------------------------------------------------------------------------- Since Inception 3.15% 5.28% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 33.1% -------------------------------------------------------------------------------- U.S. Guaranteed 14.2% -------------------------------------------------------------------------------- Utilities 12.6% -------------------------------------------------------------------------------- Tax Obligation/Limited 9.9% -------------------------------------------------------------------------------- Water and Sewer 9.7% -------------------------------------------------------------------------------- Health Care 9.3% -------------------------------------------------------------------------------- Other 11.2% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 44% AA 21% A 24% BBB 3% BB or Lower 1% N/R 7% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2) [BARCHART] Sep 0.0585 Oct 0.0555 Nov 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 Mar 0.0555 Apr 0.0555 May 0.0565 Jun 0.0565 Jul 0.0565 Aug 0.0565 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 12.5 12.58 12.45 11.9 11.306 11.25 8.8 8.72 9.55 10.31 10.6001 9.84 8.82 9 8.8247 8.25 8.6 8.96 9.65 10.63 10.4 10.18 10.22 10.5499 10.57 10.32 10.77 10.2099 10 10.1599 10.15 10.36 10.38 10.7599 11.09 11.18 11.66 11.61 11.45 11.3045 11.47 10.97 11.08 11 11.26 11.2 11.3 11.5 12.19 12.25 11.94 12.21 12.06 8/31/09 12.22 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders a capital gains distribution in December 2008 of $0.0120 per share. 12 Nuveen Investments NUO Performance OVERVIEW | Nuveen Ohio Quality Income Municipal Fund, Inc. as of August 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 30% AA 29% A 27% BBB 9% N/R 5% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BARCHART] Sep 0.056 Oct 0.056 Nov 0.056 Dec 0.056 Jan 0.056 Feb 0.056 Mar 0.0575 Apr 0.0575 May 0.0645 Jun 0.0645 Jul 0.0645 Aug 0.0645 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 13.63 13.57 13.39 13.0101 12.4101 12.01 8.47 10.71 11.71 11.67 12.132 11.79 11.3 12.33 11.4 10.7 12 11.6705 12.51 13.53 13.14 13.5 13.4 13.36 13.31 12.79 12.9 12.03 12.01 12.16 12.46 12.74 13.13 12.99 13.1 13.4334 13.5 13.82 13.8732 13.95 13.71 13.76 13.71 13.71 13.69 13.65 13.7 13.73 13.9 13.85 14.02 14.48 14.47 8/31/09 14.56 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 14.56 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 15.53 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -6.25% -------------------------------------------------------------------------------- Market Yield 5.32% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.81% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 151,377 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.13 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.38 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 15.96% 9.35% -------------------------------------------------------------------------------- 1-Year 12.82% 7.21% -------------------------------------------------------------------------------- 5-Year 2.27% 3.98% -------------------------------------------------------------------------------- 10-Year 4.04% 5.64% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 26.8% -------------------------------------------------------------------------------- U.S. Guaranteed 14.1% -------------------------------------------------------------------------------- Health Care 13.7% -------------------------------------------------------------------------------- Education and Civic Organizations 10.2% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.1% -------------------------------------------------------------------------------- Utilities 6.9% -------------------------------------------------------------------------------- Consumer Staples 5.2% -------------------------------------------------------------------------------- Other 13.0% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. Nuveen Investments 13 NXI Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund as of August 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.65 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.70 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -7.14% -------------------------------------------------------------------------------- Market Yield 5.45% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.00% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 62,371 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.78 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.64 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 16.03% 9.03% -------------------------------------------------------------------------------- 1-Year 11.82% 7.33% -------------------------------------------------------------------------------- 5-Year 2.39% 4.53% -------------------------------------------------------------------------------- Since Inception 4.61% 6.10% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 26.1% -------------------------------------------------------------------------------- Tax Obligation/General 17.0% -------------------------------------------------------------------------------- Health Care 11.2% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.8% -------------------------------------------------------------------------------- Utilities 8.1% -------------------------------------------------------------------------------- Education and Civic Organizations 6.2% -------------------------------------------------------------------------------- Housing/Multifamily 6.1% -------------------------------------------------------------------------------- Other 14.5% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 39% AA 22% A 20% BBB 11% N/R 8% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Sep 0.055 Oct 0.055 Nov 0.055 Dec 0.055 Jan 0.055 Feb 0.055 Mar 0.057 Apr 0.057 May 0.062 Jun 0.062 Jul 0.062 Aug 0.062 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 12.85 13 13.04 12.35 11.75 11.25 8.18 10.562 10.914 11.46 11.604 10.88 10.48 10.85 9.78 9.66 9.84 10.89 11.12 12.49 12.2699 12 12.15 12.264 12.05 11.57 12.1 11.8 11.8 11.7999 12.05 11.83 12.14 12.1499 12.31 12.44 12.71 12.63 12.79 13.01 12.92 12.84 12.52 12.82 12.79 12.95 13.18 13.25 13.115 13.33 13.23 13.39 13.65 8/31/09 13.65 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 Nuveen Investments NBJ Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund 2 as of August 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 32% AA 20% A 25% BBB 18% N/R 5% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BARCHART] Sep 0.0545 Oct 0.0545 Nov 0.0545 Dec 0.0545 Jan 0.0545 Feb 0.0545 Mar 0.0545 Apr 0.0545 May 0.058 Jun 0.058 Jul 0.058 Aug 0.058 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 12.4 12.33 12.17 11.7 11.1 10.6 7.66 9.64 9.92 10.47 10.9 10.87 9.8 11 9.6921 9.2 10.45 9.8 9.93 11.27 11.17 11.2 11.36 11.65 11.4326 11.15 11.58 11.13 10.93 11.04 11.35 11.51 11.45 11.39 11.54 11.85 11.91 11.99 12.13 12.3 12.22 12.1399 11.7654 11.84 11.97 12.14 12.1 12.12 12.63 12.91 12.83 12.83 12.811 8/31/09 12.83 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.83 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.00 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -8.36% -------------------------------------------------------------------------------- Market Yield 5.42% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.96% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 43,712 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.22 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.04 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 13.95% 9.94% -------------------------------------------------------------------------------- 1-Year 9.70% 5.25% -------------------------------------------------------------------------------- 5-Year 1.76% 3.64% -------------------------------------------------------------------------------- Since Inception 3.67% 5.29% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 29.8% -------------------------------------------------------------------------------- Health Care 16.4% -------------------------------------------------------------------------------- U.S. Guaranteed 14.1% -------------------------------------------------------------------------------- Tax Obligation/Limited 9.4% -------------------------------------------------------------------------------- Utilities 8.1% -------------------------------------------------------------------------------- Education and Civic Organizations 8.0% -------------------------------------------------------------------------------- Industrials 5.5% -------------------------------------------------------------------------------- Other 8.7% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. Nuveen Investments 15 NVJ Performance OVERVIEW| Nuveen Ohio Dividend Advantage Municipal Fund 3 as of August 31, 2009 FUND SNAPSHOT Common Share Price $ 13.72 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.87 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -7.73% -------------------------------------------------------------------------------- Market Yield 5.55% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.15% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 32,070 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.22 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.48 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 18.07% 9.23% -------------------------------------------------------------------------------- 1-Year 10.15% 7.63% -------------------------------------------------------------------------------- 5-Year 3.56% 4.60% -------------------------------------------------------------------------------- Since Inception 4.44% 6.06% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 27.0% -------------------------------------------------------------------------------- Tax Obligation/General 22.9% -------------------------------------------------------------------------------- Health Care 13.9% -------------------------------------------------------------------------------- Tax Obligation/Limited 9.3% -------------------------------------------------------------------------------- Utilities 6.1% -------------------------------------------------------------------------------- Consumer Staples 4.6% -------------------------------------------------------------------------------- Education and Civic Organizations 4.1% -------------------------------------------------------------------------------- Other 12.1% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 47% AA 16% A 24% BBB 9% N/R 4% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Sep 0.057 Oct 0.057 Nov 0.057 Dec 0.057 Jan 0.057 Feb 0.057 Mar 0.059 Apr 0.059 May 0.0635 Jun 0.0635 Jul 0.0635 Aug 0.0635 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 9/02/08 13.17 13.12 12.85 12.24 11.96 11.8 8.5 10.37 11.15 12.1 11.34 11.35 11.7299 11.35 10.35 10.65 10.56 10.6 11 12.57 12.69 12.93 12.7499 12.418 12.23 11.75 11.95 11.5 11.95 12.5 12.33 12.16 12.25 12.39 12.95 12.86 12.89 12.94 12.94 13.4 13.27 13.3 13.63 13.72 13.4001 13.38 13.37 13.44 13.3599 13.68 13.6 13.84 13.69 8/31/09 13.7199 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 16 Nuveen Investments NUM NMP NZW | Shareholder Meeting Report The annual meeting of shareholders was held in the offices of Nuveen Investments on November 18, 2008; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting was subsequently adjourned to January 13, 2009, and additionally adjourned to March 17, 2009.
NUM NMP NZW ---------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together as together as together as together as together as together as a class a class a class a class a class a class ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 5,462,543 2,645 3,873,336 1,182 923,937 108 Against 355,908 441 243,535 220 47,484 66 Abstain 212,692 74 159,615 50 37,167 7 Broker Non-Votes 1,490,540 -- 993,148 462 242,762 415 ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,683 3,160 5,269,634 1,914 1,251,350 596 ================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES. For 5,470,686 2,498 3,907,837 1,190 926,605 108 Against 344,384 610 220,629 200 47,832 65 Abstain 216,073 52 148,020 62 34,151 8 Broker Non-Votes 1,490,540 -- 993,148 462 242,762 415 ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,683 3,160 5,269,634 1,914 1,251,350 596 ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 5,382,777 2,463 3,801,245 1,018 -- -- Against 393,055 622 274,363 372 -- -- Abstain 257,431 75 200,878 62 -- -- Broker Non-Votes 1,488,420 -- 993,148 462 -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,683 3,160 5,269,634 1,914 -- -- ================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 5,367,617 2,461 3,813,957 1,006 -- -- Against 384,124 625 260,868 384 -- -- Abstain 281,522 74 201,661 62 -- -- Broker Non-Votes 1,488,420 -- 993,148 462 -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,683 3,160 5,269,634 1,914 -- -- ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For 5,378,233 2,466 3,816,398 1,024 -- -- Against 377,934 620 262,935 366 -- -- Abstain 277,096 74 197,153 62 -- -- Broker Non-Votes 1,488,420 -- 993,148 462 -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,683 3,160 5,269,634 1,914 -- -- ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 5,382,613 2,480 3,833,738 1,035 -- -- Against 420,834 628 287,830 376 -- -- Abstain 229,816 52 154,918 41 -- -- Broker Non-Votes 1,488,420 -- 993,148 462 -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,683 3,160 5,269,634 1,914 -- -- ==================================================================================================================================
Nuveen Investments 17 NUM NMP NZW | Shareholder Meeting Report (continued)
NUM NMP NZW ---------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together as together as together as together as together as together as a class a class a class a class a class a class ================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 7,224,817 -- 5,036,628 -- 1,214,843 -- Withhold 296,531 -- 233,004 -- 36,505 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- 1,251,348 -- ================================================================================================================================== Robert P. Bremner For 7,228,630 -- 5,033,542 -- -- -- Withhold 292,718 -- 236,090 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- -- -- ================================================================================================================================== Jack B. Evans For 7,226,081 -- 5,037,725 -- -- -- Withhold 295,267 -- 231,907 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- -- -- ================================================================================================================================== William C. Hunter For -- 2,890 -- 1,637 -- 520 Withhold -- 260 -- 275 -- 74 ---------------------------------------------------------------------------------------------------------------------------------- Total -- 3,150 -- 1,912 -- 594 ================================================================================================================================== David J. Kundert For 7,224,388 -- 5,030,233 -- 1,214,843 -- Withhold 296,960 -- 239,399 -- 36,505 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- 1,251,348 -- ================================================================================================================================== William J. Schneider For -- 2,890 -- 1,609 -- 520 Withhold -- 260 -- 303 -- 74 ---------------------------------------------------------------------------------------------------------------------------------- Total -- 3,150 -- 1,912 -- 594 ================================================================================================================================== Judith M. Stockdale For 7,225,849 -- 5,028,946 -- -- -- Withhold 295,499 -- 240,686 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- -- -- ================================================================================================================================== Carole E. Stone For 7,221,349 -- 5,028,559 -- -- -- Withhold 299,999 -- 241,073 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- -- -- ================================================================================================================================== Terence J. Toth For 7,230,260 -- 5,035,998 -- 1,214,843 -- Withhold 291,088 -- 233,634 -- 36,505 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 7,521,348 -- 5,269,632 -- 1,251,348 -- ==================================================================================================================================
18 Nuveen Investments NUO NXI |
NUO NXI -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together as together as together as together as a class a class a class a class ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 3,915,100 673 1,798,712 254 Against 278,909 43 97,204 15 Abstain 172,107 55 63,076 7 Broker Non-Votes 1,338,218 1,532 608,963 831 -------------------------------------------------------------------------------------------------------------------------- Total 5,704,334 2,303 2,567,955 1,107 ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES. For 3,912,016 678 1,830,063 254 Against 269,428 43 76,636 18 Abstain 184,672 50 52,293 4 Broker Non-Votes 1,338,218 1,532 608,963 831 -------------------------------------------------------------------------------------------------------------------------- Total 5,704,334 2,303 2,567,955 1,107 ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 3,883,579 680 -- -- Against 288,887 41 -- -- Abstain 193,650 50 -- -- Broker Non-Votes 1,338,218 1,532 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,334 2,303 -- -- ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 3,861,806 680 -- -- Against 302,534 38 -- -- Abstain 201,776 53 -- -- Broker Non-Votes 1,338,218 1,532 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,334 2,303 -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For 3,874,273 679 -- -- Against 303,150 42 -- -- Abstain 188,693 50 -- -- Broker Non-Votes 1,338,218 1,532 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,334 2,303 -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 3,877,420 670 -- -- Against 316,004 51 -- -- Abstain 172,692 50 -- -- Broker Non-Votes 1,338,218 1,532 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,334 2,303 -- -- ==========================================================================================================================
Nuveen Investments 19 NUO NXI | Shareholder Meeting Report (continued)
NUO NXI -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together as together as together as together as a class a class a class a class ========================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 5,257,055 -- 2,428,887 -- Withhold 446,960 -- 139,049 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 -- 2,567,936 -- ========================================================================================================================== Robert P. Bremner For 5,248,106 -- -- -- Withhold 455,909 -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 -- -- -- ========================================================================================================================== Jack B. Evans For 5,252,179 -- -- -- Withhold 451,836 -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 -- -- -- ========================================================================================================================== William C. Hunter For -- 2,251 -- 1,044 Withhold -- 33 -- 43 -------------------------------------------------------------------------------------------------------------------------- Total -- 2,284 -- 1,087 ========================================================================================================================== David J. Kundert For 5,244,902 2,251 2,428,887 -- Withhold 459,113 33 139,049 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 2,284 2,567,936 -- ========================================================================================================================== William J. Schneider For -- -- -- 1,044 Withhold -- -- -- 43 -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- 1,087 ========================================================================================================================== Judith M. Stockdale For 5,254,000 -- -- -- Withhold 450,015 -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 -- -- -- ========================================================================================================================== Carole E. Stone For 5,248,897 -- -- -- Withhold 455,118 -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 -- -- -- ========================================================================================================================== Terence J. Toth For 5,251,703 -- 2,428,887 -- Withhold 452,312 -- 139,049 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,704,015 -- 2,567,936 -- ==========================================================================================================================
20 Nuveen Investments NBJ NVJ |
NBJ NVJ -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together as together as together as together as a class a class a class a class ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 1,368,131 119 1,036,011 113 Against 105,520 14 90,876 7 Abstain 60,844 34 101,545 1 Broker Non-Votes 456,632 587 309,103 482 -------------------------------------------------------------------------------------------------------------------------- Total 1,991,127 754 1,537,535 603 ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES. For 1,376,438 123 1,044,834 113 Against 91,319 9 87,592 7 Abstain 66,738 35 96,006 1 Broker Non-Votes 456,632 587 309,103 482 -------------------------------------------------------------------------------------------------------------------------- Total 1,991,127 754 1,537,535 603 ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ==========================================================================================================================
Nuveen Investments 21 NBJ NVJ | Shareholder Meeting Report (continued)
NBJ NVJ -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together as together as together as together as a class a class a class a class ========================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 1,860,185 -- 1,378,669 -- Withhold 130,942 -- 158,861 -- -------------------------------------------------------------------------------------------------------------------------- Total 1,991,127 -- 1,537,530 -- ========================================================================================================================== Robert P. Bremner For -- -- -- -- Withhold -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== Jack B. Evans For -- -- -- -- Withhold -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== William C. Hunter For -- 747 -- 592 Withhold -- 7 -- 6 -------------------------------------------------------------------------------------------------------------------------- Total -- 754 -- 598 ========================================================================================================================== David J. Kundert For 1,860,185 -- 1,377,669 -- Withhold 130,942 -- 159,861 -- -------------------------------------------------------------------------------------------------------------------------- Total 1,991,127 -- 1,537,530 -- ========================================================================================================================== William J. Schneider For -- 747 -- 592 Withhold -- 7 -- 6 -------------------------------------------------------------------------------------------------------------------------- Total -- 754 -- 598 ========================================================================================================================== Judith M. Stockdale For -- -- -- -- Withhold -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== Carole E. Stone For -- -- -- -- Withhold -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== Terence J. Toth For 1,860,185 -- 1,375,669 -- Withhold 130,942 -- 161,861 -- -------------------------------------------------------------------------------------------------------------------------- Total 1,991,127 -- 1,537,530 -- ==========================================================================================================================
22 Nuveen Investments NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.8% (1.2% OF TOTAL INVESTMENTS) $ 3,500 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 3,077,550 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.9% (3.9% OF TOTAL INVESTMENTS) 1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 N/R 1,797,760 Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.500%, 9/01/17 - AMBAC Insured 1,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AA 1,459,155 Bonds, Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured (Alternative Minimum Tax) 1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AA 973,880 Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax) 1,115 Michigan Technological University, General Revenue Bonds, 10/13 at 100.00 A1 1,123,541 Series 2004A, 5.000%, 10/01/22 - NPFG Insured Wayne State University, Michigan, General Revenue Bonds, Series 1999: 3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AA- 3,486,046 1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AA- 1,002,890 ------------------------------------------------------------------------------------------------------------------------------------ 9,730 Total Education and Civic Organizations 9,843,272 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 10.9% (7.1% OF TOTAL INVESTMENTS) 2,700 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 BB- 1,721,088 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 3,575 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 3,167,164 Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 2,500 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 2,578,525 Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%, 6/01/39 - AGC Insured 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 Baa1 981,560 Refunding Bonds, Memorial Healthcare Center Obligated Group, Series 1999, 5.875%, 11/15/21 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: 1,500 5.000%, 5/15/26 5/15 at 100.00 Baa3 1,211,490 55 5.000%, 5/15/34 5/15 at 100.00 Baa3 39,466 1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,319,315 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 5,009,510 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - NPFG Insured 2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 2,162,690 Series 1991, 0.000%, 12/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 20,175 Total Health Care 18,190,808 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.7% (1.7% OF TOTAL INVESTMENTS) 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA 2,722,374 Obligation Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) 215 Michigan Housing Development Authority, Rental Housing Revenue 10/09 at 101.00 AA 208,875 Bonds, Series 1999A, 5.300%, 10/01/37 - NPFG Insured (Alternative Minimum Tax) 1,300 Michigan Housing Development Authority, Rental Housing Revenue 7/15 at 100.00 AAA 1,306,734 Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) 200 Michigan Housing Development Authority, Rental Housing Revenue 10/18 at 100.00 AA 203,822 Bonds, Series 2009A, 5.700%, 10/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 4,390 Total Housing/Multifamily 4,441,805 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 711,570 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 200 Michigan Strategic Fund, Limited Obligation Revenue Refunding 1/10 at 100.00 BBB 173,012 Bonds, Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 ------------------------------------------------------------------------------------------------------------------------------------ 1,200 Total Long-Term Care 884,582 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23 NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS) $ 1,250 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB $ 1,165,025 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 56.1% (36.9% OF TOTAL INVESTMENTS) 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA- 1,012,120 Michigan, General Obligation Refunding Bonds, Series 2002, 5.000%, 5/01/25 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001: 2,500 5.000%, 5/01/21 5/11 at 100.00 AA- 2,602,325 3,200 5.000%, 5/01/29 5/11 at 100.00 AA- 3,213,472 1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 1,029,700 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA- 1,452,013 County, Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/16 2,110 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA- 2,275,108 Counties, Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20 1,000 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AA- 1,039,760 Counties, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 - NPFG Insured 2,319 Caledonia Community Schools, Kent, Allegan and Barry 5/17 at 100.00 AA- 2,295,648 Counties, Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.559%, 5/01/32 - NPFG Insured (IF) 2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call AA- 2,131,780 Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured 700 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 2/10 at 100.00 A 700,119 General Obligation Building Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 - FGIC Insured 285 East Grand Rapids Public Schools, County of Kent, State of 5/11 at 100.00 AA 287,086 Michigan, General Obligation Bonds, Series 2001, Refunding, 5.125%, 5/01/29 Grand Rapids and Kent County Joint Building Authority, Michigan, Limited Tax General Obligation Bonds, Devos Place Project, Series 2001: 8,900 0.000%, 12/01/25 No Opt. Call AAA 4,190,120 3,000 0.000%, 12/01/26 No Opt. Call AAA 1,328,130 5,305 0.000%, 12/01/29 No Opt. Call AAA 1,933,832 1,700 Grand Rapids, Michigan, General Obligation Bonds, Series 9/17 at 100.00 AA 1,793,959 2007, 5.000%, 9/01/27 - NPFG Insured 2,000 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA- 2,011,460 Michigan, General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 1,476,300 Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,115,225 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 1,935 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 2,037,536 Series 2006, 5.000%, 5/01/25 - FSA Insured 200 L'Anse Creuse Public Schools, Macomb County, Michigan, 5/15 at 100.00 AAA 201,754 General Obligation Bonds, Series 2005, 5.000%, 5/01/35 - FSA Insured 2,505 Lincoln Consolidated School District, Washtenaw and Wayne 5/16 at 100.00 AA- 2,619,879 Counties, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 - NPFG Insured 2,810 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AA- 3,008,527 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - NPFG Insured 865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 872,621 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - FSA Insured 1,500 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AA- 1,535,385 Obligation Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA GTY Insured 2,100 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 2,250,234 Detroit City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured 4,000 Michigan, General Obligation Bonds, Environmental Protection 5/13 at 100.00 AA- 4,169,160 Program, Series 2003A, 5.250%, 5/01/20
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 100 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- $ 106,151 Program, Series 2009A, 5.500%, 11/01/25 2,500 Montrose School District, Michigan, School Building and Site No Opt. Call A1 2,999,850 Bonds, Series 1997, 6.000%, 5/01/22 - NPFG Insured 1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AA- 1,118,029 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,033,080 Obligation Bonds, Series 2002, 5.125%, 9/01/22 2,250 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 2,288,543 Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - FSA Insured 1,595 Oakridge Public Schools, Muskegon County, Michigan, General 5/15 at 100.00 AA- 1,684,767 Obligation Bonds, Series 2005, 5.000%, 5/01/22 - NPFG Insured Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007: 4,330 5.000%, 8/01/26 - NPFG Insured (UB) 8/17 at 100.00 Aa1 4,591,056 1,120 5.000%, 8/01/30 - NPFG Insured (UB) 8/17 at 100.00 Aa1 1,156,154 1,245 Parchment School District, Kalamazoo County, Michigan, 5/17 at 100.00 AAA 1,179,812 General Obligation Bonds, Tender Option Bond Trust 2836, 10.521%, 5/01/36 - FSA Insured (IF) 4,340 Plymouth-Canton Community School District, Wayne and 5/14 at 100.00 AA- 4,472,500 Washtenaw Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/26 - FGIC Insured 1,000 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 1,015,400 Obligation Bonds, Series 2008, 5.000%, 5/01/33 - FSA Insured 200 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 206,508 Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 - AGC Insured 3,175 South Redford School District, Wayne County, Michigan, 5/15 at 100.00 AA- 3,234,341 General Obligation Bonds, School Building and Site, Series 2005, 5.000%, 5/01/30 - NPFG Insured 1,655 Southfield Library Building Authority, Michigan, General 5/15 at 100.00 AA+ 1,729,541 Obligation Bonds, Series 2005, 5.000%, 5/01/26 - NPFG Insured 2,200 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 2,236,278 General Obligation Bonds, Series 2007, 5.000%, 5/01/32 - NPFG Insured 2,000 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 2,026,540 Bonds, Series 2008, 5.000%, 5/01/34 - FSA Insured 2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 Aa2 2,481,456 Obligation Bonds, Series 2006, 5.000%, 5/01/19 - NPFG Insured Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008: 310 5.000%, 5/01/31 - FSA Insured 5/18 at 100.00 AAA 316,538 575 5.000%, 5/01/38 - FSA Insured 5/18 at 100.00 AAA 580,198 5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 A 5,076,899 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 - NPFG Insured 3,350 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 3,756,054 Obligation Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured 1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call A1 2,004,209 Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 99,764 Total Tax Obligation/General 93,877,157 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.1% (10.6% OF TOTAL INVESTMENTS) 1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,112,340 Limited Tax General Obligation Bonds, Series 1998, 5.000%, 4/01/16 1,345 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AA 1,377,885 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - NPFG Insured Michigan Building Authority, Revenue Bonds, Series 2006IA: 7,000 0.000%, 10/15/27 - FGIC Insured 10/16 at 58.27 AAA 2,327,220 6,200 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 1,920,388 4,440 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 A+ 4,212,539
Nuveen Investments 25 NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 30 Michigan Municipal Bond Authority, Local Government Loan 11/09 at 100.00 Aa3 $ 30,138 Program Revenue Sharing Bonds, Series 1992D, 6.650%, 5/01/12 2,135 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ 2,056,688 Program, Series 2005II, 5.000%, 10/15/33 - AMBAC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,100 5.000%, 10/15/22 - NPFG Insured 10/13 at 100.00 A+ 5,139,371 5,000 5.000%, 10/15/23 - NPFG Insured 10/13 at 100.00 A+ 5,018,199 3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,732,190 5.250%, 10/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 35,750 Total Tax Obligation/Limited 26,926,958 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 A 978,810 Bonds, Series 2002, 5.250%, 7/01/21 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 30.5% (20.0% OF TOTAL INVESTMENTS) (4) 1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 10/12 at 100.50 AAA 1,345,140 5.000%, 10/01/20 (Pre-refunded 10/01/12) 935 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 1,054,764 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) - FSA Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 3,400 5.750%, 7/01/28 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 A+ (4) 3,696,922 770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 822,807 730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 786,560 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A: 4,025 5.000%, 7/01/24 (Pre-refunded 7/01/13) - NPFG Insured 7/13 at 100.00 A+ (4) 4,527,763 1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 A+ (4) 1,687,365 1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 1,028,040 Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1,085 Freeland Community School District, Saginaw, Midland and Bay 5/10 at 100.00 AA- (4) 1,120,480 Counties, Michigan, General Obligation Bonds, Series 2000, 5.250%, 5/01/19 (Pre-refunded 5/01/10) 2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA- (4) 2,205,400 General Obligation Bonds, Series 2002, 5.000%, 5/01/24 (Pre-refunded 5/01/12) 1,790 Lansing Building Authority, Michigan, General Obligation 6/13 at 100.00 AA+ (4) 2,022,825 Bonds, Series 2003A, 5.000%, 6/01/26 (Pre-refunded 6/01/13) - MBIA Insured 3,880 Mayville Community Schools, Tuscola County, Michigan, General 11/14 at 100.00 AA- (4) 4,479,693 Obligation Bonds, School Building and Site Project, Series 2004, 5.000%, 5/01/34 (Pre-refunded 11/01/14) - FGIC Insured 250 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 (4) 269,453 Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM) Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Ascension Health Credit Group, Series 1999A: 1,000 6.125%, 11/15/23 (Pre-refunded 11/15/09) - NPFG Insured 11/09 at 101.00 AAA 1,021,810 500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 510,905 3,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 3,064,140 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 (Pre-refunded 11/15/09) 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 1,712,910 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A (4) 1,021,640 Refunding Bonds, OSF Healthcare System, Series 1999, 6.125%, 11/15/19 (Pre-refunded 11/15/09) 3,460 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 100.50 Aaa 3,487,161 Refunding Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 - AMBAC Insured (ETM) Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 1,025 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 1,187,001 500 5.000%, 5/15/37 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 579,025 1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 5.000%, 11/11 at 100.00 AAA 1,088,920 11/01/25 (Pre-refunded 11/01/11) - FSA Insured
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,000 Michigan, Certificates of Participation, Series 2000, 5.500%, 6/10 at 100.00 A2 (4) $ 2,075,600 6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured 700 Muskegon Heights, Muskegon County, Michigan, Water Supply 11/10 at 100.00 N/R (4) 741,853 System Revenue Bonds, Series 2000A, 5.625%, 11/01/30 (Pre-refunded 11/01/10) - MBIA Insured 1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB (4) 1,186,751 Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded 7/01/10) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 103,799 915 6.000%, 8/01/26 (ETM) No Opt. Call AAA 1,117,371 4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 Aaa 4,955,383 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AA- (4) 1,035,270 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured 1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,151,084 Counties, Michigan, General Obligation Bonds, Series 2001, 5.375%, 5/01/19 (Pre-refunded 11/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 46,525 Total U.S. Guaranteed 51,087,835 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.3% (10.1% OF TOTAL INVESTMENTS) Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: 215 5.000%, 7/01/28 7/18 at 100.00 AA- 223,546 5,000 5.000%, 7/01/32 7/18 at 100.00 AA- 5,092,599 3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 3,049,710 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 3,225 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 3,379,736 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 A 975,250 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 3,971,120 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 2,050 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Baa1 2,064,350 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 3,630 Michigan Strategic Fund, Limited Obligation Revenue Refunding No Opt. Call A2 4,140,051 Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 2,690,400 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 25,120 Total Utilities 25,586,762 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.1% (7.3% OF TOTAL INVESTMENTS) 5,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 5,415,023 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 1,489,140 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 565 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 580,820 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 1,500 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ 1,383,975 Bonds, Series 2003A, 5.000%, 7/01/25 - NPFG Insured 675 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 686,455 Series 2008, 5.000%, 1/01/38 2,030 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 2,064,551 Series 2009, 5.100%, 1/01/39 - AGC Insured 4,210 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/14 at 100.00 AAA 4,629,148 Revenue Bonds, Series 2004, 5.000%, 10/01/19 1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,205,511 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23
Nuveen Investments 27 NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,000 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA $ 1,067,390 Revenue Bonds, Series 2007, 10/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 18,130 Total Water and Sewer 18,522,013 ------------------------------------------------------------------------------------------------------------------------------------ $ 266,534 Total Investments (cost $248,338,339) - 152.2% 254,582,577 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.2%) (3,630,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.2% 3,684,824 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (52.2)% (5) (87,325,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 167,312,401 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.3%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 28 Nuveen Investments NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.3% (0.9% OF TOTAL INVESTMENTS) $ 1,650 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 1,450,845 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.1% (3.4% OF TOTAL INVESTMENTS) 2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AA 1,947,760 Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax) 3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AA- 3,510,115 Series 1999, 5.125%, 11/15/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total Education and Civic Organizations 5,457,875 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 6.8% (4.5% OF TOTAL INVESTMENTS) 2,600 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 2,303,392 Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 1,350 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 1,392,404 Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%, 6/01/39 - AGC Insured Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: 1,005 5.000%, 5/15/26 5/15 at 100.00 Baa3 811,698 200 5.000%, 5/15/34 5/15 at 100.00 Baa3 143,514 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: 2,000 6.250%, 8/15/13 2/10 at 100.00 BB- 1,905,020 500 6.500%, 8/15/18 2/10 at 100.00 BB- 440,290 250 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 286,808 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 7,905 Total Health Care 7,283,126 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.8% (4.5% OF TOTAL INVESTMENTS) 885 Michigan Housing Development Authority, GNMA Collateralized 4/12 at 102.00 Aaa 888,531 Limited Obligation Multifamily Housing Revenue Bonds, Burkshire Pointe Apartments, Series 2002A, 5.400%, 10/20/32 (Alternative Minimum Tax) 1,500 Michigan Housing Development Authority, Limited Obligation 10/09 at 100.00 AAA 1,501,740 Revenue Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - FSA Insured 2,070 Michigan Housing Development Authority, Limited Obligation 10/09 at 100.00 AAA 2,073,416 Revenue Bonds, Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 - FSA Insured 800 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 804,144 Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) 25 Michigan Housing Development Authority, Rental Housing 10/18 at 100.00 AA 25,478 Revenue Bonds, Series 2009A, 5.700%, 10/01/39 Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Assisted Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: 480 6.600%, 6/01/13 12/09 at 100.00 AAA 481,301 1,500 6.600%, 6/01/22 12/09 at 100.00 AAA 1,502,190 ------------------------------------------------------------------------------------------------------------------------------------ 7,260 Total Housing/Multifamily 7,276,800 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.3% (0.2% OF TOTAL INVESTMENTS) 465 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 330,880 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,050 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 978,621 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29 NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 55.3% (37.0% OF TOTAL INVESTMENTS) $ 1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA- $ 1,555,388 Michigan, General Obligation Bonds, Series 2003, 5.000%, 5/01/21 2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA- 2,602,325 Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/21 1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 1,029,700 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 100 Battle Creek School District, Calhoun County, Michigan, 5/17 at 100.00 AAA 100,881 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - FSA Insured 2,250 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AA- 2,332,913 Counties, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/26 - NPFG Insured 1,501 Caledonia Community Schools, Kent, Allegan and Barry 5/17 at 100.00 AA- 1,485,885 Counties, Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.559%, 5/01/32 - NPFG Insured (IF) Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A: 1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AA- 1,924,953 750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AA- 791,640 2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AA 2,415,750 Obligation Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC Insured Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997: 770 5.500%, 2/01/17 - FGIC Insured 11/09 at 100.00 A 770,131 6,990 5.250%, 2/01/27 - FGIC Insured 2/10 at 100.00 A 6,990,139 860 Grand Rapids, Michigan, General Obligation Bonds, Series 9/17 at 100.00 AA 921,241 2007, 5.000%, 9/01/24 - NPFG Insured 1,500 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA- 1,508,595 Michigan, General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AA- 1,685,937 Obligation Bonds, Series 2006, 5.125%, 5/01/32 - NPFG Insured 2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 2,094,100 Obligation Bonds, Series 2003, 5.000%, 5/01/22 1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 1,316,238 Series 2006, 5.000%, 5/01/25 - FSA Insured 500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- 523,580 Obligation Bonds, Series 2004, 5.000%, 5/01/22 1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AA- 1,070,650 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - NPFG Insured 865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 872,621 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - FSA Insured 425 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AA- 435,026 Obligation Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA GTY Insured 1,000 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 1,071,540 Detroit City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured Michigan, General Obligation Bonds, Environmental Protection Program, Series 2003A: 1,000 5.250%, 5/01/20 5/13 at 100.00 AA- 1,042,290 2,000 5.250%, 5/01/21 5/13 at 100.00 AA- 2,074,480 800 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 849,208 Program, Series 2009A, 5.500%, 11/01/25 1,450 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 1,474,839 Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - FSA Insured 3,500 Ottawa County, Michigan, Water Supply System, General 8/17 at 100.00 Aa1 3,612,980 Obligation Bonds, Series 2007, 5.000%, 8/01/30 - NPFG Insured (UB) 1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, 5/14 at 100.00 AAA 1,142,405 Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 805 Parchment School District, Kalamazoo County, Michigan, 5/17 at 100.00 AAA $ 762,850 General Obligation Bonds, Tender Option Bond Trust 2836, 10.521%, 5/01/36 - FSA Insured (IF) 1,000 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,032,780 Obligation Bonds, Series 2005, 5.000%, 5/01/27 - FSA Insured 1,000 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 1,015,400 Obligation Bonds, Series 2008, 5.000%, 5/01/33 - FSA Insured 125 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 129,068 Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 - AGC Insured 1,100 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 1,118,139 General Obligation Bonds, Series 2007, 5.000%, 5/01/32 - NPFG Insured 1,500 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 1,519,905 Bonds, Series 2008, 5.000%, 5/01/34 - FSA Insured 1,350 Van Dyke Public Schools, Macomb County, Michigan, General 5/18 at 100.00 AAA 1,362,204 Obligation Bonds, School Building and Site, Series 2008, 5.000%, 5/01/38 - FSA Insured 2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA- 2,946,738 Counties, Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A: 1,500 5.500%, 12/01/18 - NPFG Insured 12/11 at 101.00 A 1,559,895 4,435 5.000%, 12/01/30 - NPFG Insured 12/11 at 101.00 A 4,321,375 ------------------------------------------------------------------------------------------------------------------------------------ 58,196 Total Tax Obligation/General 59,463,789 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.0% (14.1% OF TOTAL INVESTMENTS) 2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 A+ 2,732,458 5.000%, 10/15/36 - FGIC Insured Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I: 2,570 5.500%, 10/15/19 10/11 at 100.00 A+ 2,636,023 6,500 5.000%, 10/15/24 10/11 at 100.00 A+ 6,547,709 1,600 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ 1,587,536 Program, Series 2005II, 5.000%, 10/15/30 - AMBAC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,000 5.000%, 10/15/22 - NPFG Insured 10/13 at 100.00 A+ 5,038,599 2,480 5.000%, 10/15/23 - NPFG Insured 10/13 at 100.00 A+ 2,489,027 1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,582,230 Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,530 Total Tax Obligation/Limited 22,613,582 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.2% (0.1% OF TOTAL INVESTMENTS) 230 Kent County, Michigan, Airport Revenue Bonds, Gerald R. Ford 1/17 at 100.00 AAA 235,371 International Airport, Series 2007, 5.000%, 1/01/32 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.3% (12.9% OF TOTAL INVESTMENTS) (4) 915 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 A (4) 1,059,671 Revenue Bonds, Series 2005A, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - MBIA Insured 1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 A+ (4) 1,479,983 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 2,056,080 Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- (4) 571,825 Obligation Bonds, Series 2004, 5.000%, 5/01/22 (Pre-refunded 5/01/14) 75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 (4) 80,836 Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM) 1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 A+ (4) 1,580,595 Program, Series 2000I, 5.375%, 10/15/20 (Pre-refunded 10/15/10)
Nuveen Investments 31 NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA $ 2,554,525 Bonds, Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded 11/15/09) 3,075 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 3,140,744 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 (Pre-refunded 11/15/09) 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 1,712,910 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ (4) 556,080 Refunding Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 (Pre-refunded 11/15/11) 2,465 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 100.00 N/R (4) 2,471,606 Refunding Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 - AMBAC Insured (ETM) Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 425 5.000%, 5/15/25 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 492,171 150 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 173,708 1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,143,650 Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 (Pre-refunded 5/01/14) - FSA Insured 1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AA- (4) 1,645,590 Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,415 Total U.S. Guaranteed 20,719,974 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.2% (10.2% OF TOTAL INVESTMENTS) Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: 125 5.000%, 7/01/28 7/18 at 100.00 AA- 129,969 2,500 5.000%, 7/01/32 7/18 at 100.00 AA- 2,546,300 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 1,016,570 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 925 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 969,382 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 A 975,250 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 4,963,899 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 3,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Baa1 3,021,000 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 2,690,400 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 16,550 Total Utilities 16,312,770 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.4% (11.6% OF TOTAL INVESTMENTS) 3,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 3,445,925 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,085 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 A 992,992 Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - NPFG Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 1,489,140 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 1,120 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 1,151,360 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 1,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 7/15 at 100.00 AA+ 1,359,593 Series 2005, 5.000%, 1/01/30 - NPFG Insured 450 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 457,637 Series 2008, 5.000%, 1/01/38
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 425 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA $ 432,234 Series 2009, 5.100%, 1/01/39 - AGC Insured 1,000 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA 1,067,390 Revenue Bonds, Series 2007, 5.000%, 10/01/24 8,245 North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, 11/16 at 100.00 A+ 8,288,776 Series 2006, 5.000%, 11/01/31 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,655 Total Water and Sewer 18,685,047 ------------------------------------------------------------------------------------------------------------------------------------ $ 159,406 Total Investments (cost $159,346,389) - 149.6% 160,808,680 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.2)% (2,330,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.5% 2,741,640 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (49.9)% (5) (53,700,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 107,520,320 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.4%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 33 NZW | Nuveen Michigan Dividend Advantage Municipal Fund | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.2% (0.8% OF TOTAL INVESTMENTS) $ 400 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 351,720 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.9% (4.0% OF TOTAL INVESTMENTS) 500 Concord Academy, Boyne City, Michigan, Certificates of 11/17 at 100.00 N/R 378,365 Participation, Series 2007, 5.450%, 11/01/22 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 N/R 1,142,192 Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%, 9/01/26 - AMBAC Insured 250 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 183,235 School Revenue Bonds, American Montessori Academy, Series 2007, 6.500%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 1,900 Total Education and Civic Organizations 1,703,792 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.9% (9.3% OF TOTAL INVESTMENTS) 500 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 259,720 Bonds, Garden City Hospital Obligated Group, Series 2007A, 5.000%, 8/15/38 725 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 642,292 Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 150 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 154,712 Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%, 6/01/39 - AGC Insured 610 Michigan State Hospital Finance Authority, Hospital Revenue 1/10 at 100.00 BB 558,784 Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: 400 5.000%, 5/15/26 5/15 at 100.00 Baa3 323,064 400 5.000%, 5/15/34 5/15 at 100.00 Baa3 287,028 100 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 114,723 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 1,639,476 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,685 Total Health Care 3,979,799 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.0% (4.7% OF TOTAL INVESTMENTS) 1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,709,520 Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax) 200 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 201,036 Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) 100 Michigan Housing Development Authority, Rental Housing 10/18 at 100.00 AA 101,911 Revenue Bonds, Series 2009A, 5.700%, 10/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 2,012,467 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS) 500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB 475,060 Republic Services Inc., Series 2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.8% (0.6% OF TOTAL INVESTMENTS) 335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 238,376 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 ------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 49.6% (33.1% OF TOTAL INVESTMENTS) $ 200 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ $ 205,940 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 437 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 432,599 Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.559%, 5/01/32 - NPFG Insured (IF) 50 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 2/10 at 100.00 A 50,009 General Obligation Building Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 - FGIC Insured 300 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 316,581 5.000%, 9/01/27 - NPFG Insured 940 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA- 960,445 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 500 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 523,580 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 430 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 433,788 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - FSA Insured 400 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 428,616 Detroit City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured 100 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 106,151 Program, Series 2009A, 5.500%, 11/01/25 1,150 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AA- 1,168,849 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 1,410 New Haven Community Schools, Macomb County, Michigan, General 5/16 at 100.00 AAA 1,474,663 Obligation Bonds, Series 2006, 5.000%, 5/01/25 - FSA Insured 400 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 406,852 Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - FSA Insured 1,000 Ottawa County, Michigan, Water Supply System, General 8/17 at 100.00 Aa1 1,032,280 Obligation Bonds, Series 2007, 5.000%, 8/01/30 - NPFG Insured (UB) 235 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 222,695 Obligation Bonds, Tender Option Bond Trust 2836, 10.521%, 5/01/36 - FSA Insured (IF) 750 Plainwell Community Schools, Allegan County, Michigan, General 5/18 at 100.00 AAA 780,443 Obligation Bonds, School Building & Site, Series 2008, 5.000%, 5/01/28 - AGC Insured 100 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 101,540 Obligation Bonds, Series 2008, 5.000%, 5/01/33 - FSA Insured 25 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 25,814 Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 - AGC Insured 330 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 335,442 General Obligation Bonds, Series 2007, 5.000%, 5/01/32 - NPFG Insured 100 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 101,327 Bonds, Series 2008, 5.000%, 5/01/34 - FSA Insured 225 Van Dyke Public Schools, Macomb County, Michigan, General 5/18 at 100.00 AAA 227,034 Obligation Bonds, School Building and Site, Series 2008, 5.000%, 5/01/38 - FSA Insured Washtenaw County, Michigan, Limited Tax General Obligation Bonds, Sylvan Township Water and Wastewater System, Series 2001: 500 5.000%, 5/01/19 - NPFG Insured 11/09 at 100.50 AA+ 505,100 800 5.000%, 5/01/20 - NPFG Insured 11/09 at 100.50 AA+ 808,160 1,690 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 A 1,646,702 Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - NPFG Insured 500 Wayne Westland Community Schools, Michigan, General Obligation 11/14 at 100.00 AAA 560,605 Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured 1,300 Willow Run Community Schools, Washtenaw County, Michigan, 5/11 at 100.00 AA- 1,353,209 General Obligation Bonds, Series 2001, 5.000%, 5/01/21 ------------------------------------------------------------------------------------------------------------------------------------ 13,872 Total Tax Obligation/General 14,208,424 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 35 NZW | Nuveen Michigan Dividend Advantage Municipal Fund (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.8% (9.9% OF TOTAL INVESTMENTS) $ 1,100 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AA $ 1,126,895 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - NPFG Insured 770 Kalkaska County Hospital Authority, Michigan, Hospital Revenue No Opt. Call N/R 754,485 Bonds, Series 2007, 5.125%, 5/01/14 Michigan Building Authority, Revenue Bonds, Series 2006IA: 1,520 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 470,805 720 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 A+ 683,114 1,205 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,213,845 Program, Series 2001I, 5.000%, 10/15/24 ------------------------------------------------------------------------------------------------------------------------------------ 5,315 Total Tax Obligation/Limited 4,249,144 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.2% (14.2% OF TOTAL INVESTMENTS) (4) 1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,112,720 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) - FSA Insured 720 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 812,225 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) - FSA Insured 1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA- (4) 1,070,230 Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26 (Pre-refunded 5/01/11) 1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 1,088,770 Spectrum Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11) Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 425 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 492,171 335 5.000%, 5/15/37 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 387,947 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 103,799 615 6.000%, 8/01/26 (ETM) No Opt. Call AAA 751,020 250 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AA (4) 263,568 Obligation Bonds, Series 2001, 5.150%, 11/01/22 (Pre-refunded 11/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,430 Total U.S. Guaranteed 6,082,450 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 18.9% (12.6% OF TOTAL INVESTMENTS) 1,115 Lansing Board of Water and Light, Michigan, Steam and Electric 7/13 at 100.00 AAA 1,160,436 Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: 50 5.000%, 7/01/28 7/18 at 100.00 AA- 51,988 750 5.000%, 7/01/32 7/18 at 100.00 AA- 763,890 1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 1,241,360 Turbine 1 Project, Series 2001A, 5.250%, 1/01/24 - AMBAC Insured 2,215 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 2,186,291 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,365 Total Utilities 5,403,965 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.5% (9.7% OF TOTAL INVESTMENTS) 1,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 984,550 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 992,760 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 280 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 287,840 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 125 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 127,121 Series 2008, 5.000%, 1/01/38 150 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 152,553 Series 2009, 5.100%, 1/01/39 - AGCInsured
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,000 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/15 at 100.00 AAA $ 1,081,240 Revenue Bonds, Series 2005, 5.000%, 10/01/19 500 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA 536,300 Revenue Bonds, Series 2007, 5.000%, 10/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 4,055 Total Water and Sewer 4,162,364 ------------------------------------------------------------------------------------------------------------------------------------ $ 43,857 Total Investments (cost $42,705,638) - 149.5% 42,867,561 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.3)% (665,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.6% 747,932 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (49.8)% (5) (14,275,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 28,675,493 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.3%. N/R Not rated. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 37 NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 7.7% (5.2% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 4,735 5.875%, 6/01/30 6/17 at 100.00 BBB $ 4,014,380 1,650 5.750%, 6/01/34 6/17 at 100.00 BBB 1,310,001 8,450 5.875%, 6/01/47 6/17 at 100.00 BBB 6,232,804 120 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 114,953 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 14,955 Total Consumer Staples 11,672,138 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.1% (10.2% OF TOTAL INVESTMENTS) 1,650 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 1,621,488 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,750 Ohio Higher Education Facilities Commission, General Revenue 10/13 at 100.00 AA 1,839,933 Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 836,270 Wittenberg University, Series 2005, 5.000%, 12/01/29 2,420 Ohio Higher Educational Facilities Commission, General 12/16 at 100.00 A 2,452,113 Revenue Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 - AMBAC Insured 1,415 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/14 at 100.00 AA 1,475,548 Denison University, Series 2004, 5.000%, 11/01/21 1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 A 1,338,757 University of Dayton, Series 2004, 5.000%, 12/01/25 - AMBAC Insured 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 1,003,890 Wittenberg University, Series 2001, 5.500%, 12/01/15 1,500 Ohio State Higher Education Facilities, Revenue Bonds, Case 12/16 at 100.00 AA- 1,530,045 Western Reserve University, Series 2006, 5.000%, 12/01/44 - NPFG Insured 1,200 Ohio State University, General Receipts Bonds, Series 2002A, 12/12 at 100.00 AA 1,214,760 5.125%, 12/01/31 3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,207,870 5.250%, 6/01/22 1,510 University of Akron, Ohio, General Receipts Bonds, Series 1/13 at 100.00 A2 1,575,096 2003A, 5.000%, 1/01/21 - AMBAC Insured 850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 A+ 872,687 Series 2003C, 5.000%, 6/01/22 - FGIC Insured University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D: 1,200 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 A+ 1,258,200 2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 A+ 2,658,845 ------------------------------------------------------------------------------------------------------------------------------------ 22,420 Total Education and Civic Organizations 22,885,502 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 20.2% (13.7% OF TOTAL INVESTMENTS) 2,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 1,880,060 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 3,405 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 2,877,770 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/10 at 100.00 A 1,000,420 Improvement Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - NPFG Insured 2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa2 2,097,940 Clinic Health System, Series 2003A, 6.000%, 1/01/32 4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 3,834,360 Firelands Regional Medical Center, Series 2002A, 5.625%, 8/15/32 1,000 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 932,810 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 A 2,518,830 Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured 785 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 727,200 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A: $ 1,500 5.000%, 5/01/30 5/14 at 100.00 AA $ 1,503,615 2,500 5.000%, 5/01/32 No Opt. Call AA 2,476,400 1,350 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 1,385,951 Hospital, Series 2009A, 6.250%, 11/15/39 1,315 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 1,368,534 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 1,000 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 1,039,020 Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 2,700 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 2,809,188 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.787%, 1/01/39 (IF) 830 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 841,031 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 1,200 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 1,055,208 Health System Group, Series 2006, 5.250%, 11/15/36 600 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 608,100 Health System Series 2008, 5.750%, 12/01/35 1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 Baa1 1,706,125 Union Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 31,845 Total Health Care 30,662,562 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.5% (4.4% OF TOTAL INVESTMENTS) 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue 2/10 at 100.00 Aaa 1,385,970 Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Longwood Phase One Associates LP, Series 2001A: 2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,514,724 2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,252,183 985 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/10 at 100.00 Aa2 985,207 Mortgage Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) 800 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 802,408 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 850 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 755,166 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 1,200 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 1,151,232 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,945 Total Housing/Multifamily 9,846,890 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.6% (1.7% OF TOTAL INVESTMENTS) 1,240 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/09 at 101.00 Aaa 1,242,034 Program Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax) 745 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 9/09 at 100.75 Aaa 740,038 Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax) 1,995 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 1,900,377 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,980 Total Housing/Single Family 3,882,449 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.2% (1.5% OF TOTAL INVESTMENTS) 840 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 687,481 Revenue Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 1,360 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/09 at 101.00 N/R 1,183,404 Revenue Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18 (Alternative Minimum Tax) 1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/10 at 100.00 AA- 1,507,275 Emery Air Freight Corporation and Emery Worldwide Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 3,700 Total Industrials 3,378,160 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39 NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.4% (0.9% OF TOTAL INVESTMENTS) $ 2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A $ 2,093,000 Cargill Inc., Series 2004B, 4.500%, 12/01/15 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 39.7% (26.8% OF TOTAL INVESTMENTS) Butler County, Ohio, General Obligation Bonds, Series 2002: 1,345 5.000%, 12/01/21 - NPFG Insured 12/12 at 100.00 Aa2 1,454,147 1,200 5.000%, 12/01/22 - NPFG Insured 12/12 at 101.00 Aa2 1,270,452 1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aa2 1,562,190 General Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured 1,000 Central Ohio Solid Waste Authority, General Obligation Bonds, 6/14 at 100.00 AAA 1,109,620 Series 2004A, 5.000%, 12/01/15 - AMBAC Insured 2,600 Cincinnati City School District, Hamilton County, Ohio, 12/12 at 100.00 AAA 2,727,972 General Obligation Bonds, Series 2002, 5.250%, 6/01/21 - FSA Insured 1,000 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA 1,035,110 General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - FSA Insured 1,200 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 1,288,260 5.000%, 12/01/21 1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 5.250%, 6/14 at 100.00 AA- 1,102,130 12/01/19 - AMBAC Insured 1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,062,770 Counties, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 - FSA Insured 1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,022,290 Bonds, Series 2000A, 5.000%, 12/01/20 1,195 Fairview Park City School District, Cuyahoga County, Ohio, 6/15 at 100.00 A2 1,233,443 General Obligation Bonds, Series 2005, 5.000%, 12/01/24 - NPFG Insured 1,840 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,980,153 5.000%, 12/01/28 1,500 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 1,574,985 12/01/32 1,355 Grove City, Ohio, General Obligation Bonds, Construction & No Opt. Call Aa2 1,400,203 Improvement Series 2009, 5.125%, 12/01/36 7,020 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 7,279,596 Bonds, Series 2007, 5.000%, 12/01/34 - FSA Insured 1,850 Hilliard School District, Franklin County, Ohio, General 12/15 at 100.00 Aa2 1,943,999 Obligation Bonds, School Construction, Series 2005, 5.000%, 12/01/26 - NPFG Insured 3,000 Hilliard School District, Franklin County, Ohio, General 12/16 at 100.00 AA 3,189,150 Obligation Bonds, Series 2006A, 5.000%, 12/01/25 - NPFG Insured 2,580 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 2,568,803 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,220,587 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - NPFG Insured 800 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 852,280 Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured 2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 A3 1,974,780 Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 505 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 530,119 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 500 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 523,500 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 1,515 Massillon City School District, Ohio, General Obligation 12/12 at 100.00 Baa1 1,644,108 Bonds, Series 2003, 5.250%, 12/01/21 - NPFG Insured 1,350 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 1,381,671 Obligation Bonds, Series 2008, 5.250%, 12/01/36 640 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aa2 693,856 Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 - FGIC Insured 1,000 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 A 1,016,550 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,000 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 $ 1,020,580 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,129,570 Series 2003F, 5.000%, 2/01/23 1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 A 1,586,829 Bonds, Series 2004, 5.000%, 12/01/22 - FGIC Insured 280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aa2 298,542 Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20 - FGIC Insured 1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA 1,470,129 5.000%, 12/01/27 - FGIC Insured 2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aa1 2,114,340 5.000%, 12/01/21 - FGIC Insured 70 Strongsville, Ohio, Limited Tax General Obligation Various 12/09 at 100.00 Aa1 70,284 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 100 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 103,203 School Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 650 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 667,316 Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 Warren City School District, Trumbull County, Ohio, General Obligation Bonds, Series 2004: 2,515 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AA 2,725,355 1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AA 1,238,983 1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aa1 1,018,690 Obligation Bonds, Series 2003, 5.000%, 12/01/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 57,395 Total Tax Obligation/General 60,086,545 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.0% (10.1% OF TOTAL INVESTMENTS) 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 BBB+ 1,387,424 Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured 3,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 Aaa 3,167,670 Anticipation Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured 1,085 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 A+ 1,152,617 Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC Insured 4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 4,613,523 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 1,000 Hudson City School District, Ohio, Certificates of 6/14 at 100.00 A1 1,007,910 Participation, Series 2004, 5.000%, 6/01/26 - NPFG Insured New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds, Series 2001B: 1,000 5.500%, 10/01/15 - AMBAC Insured 4/12 at 100.00 A2 1,030,160 1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 A2 1,017,380 800 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 832,864 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 2,645 Ohio State Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AA 2,958,697 Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 - NPFG Insured 1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,101,890 Facilities, Series 2003B-II, 5.000%, 6/01/16 23,215 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 4,450,779 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 40,725 Total Tax Obligation/Limited 22,720,914 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS) 3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 A- 2,598,060 International Airport, Series 2003C, 5.250%, 12/01/23 - RAAI Insured (Alternative Minimum Tax) 2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, Series No Opt. Call AA 2,334,360 1998A, 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Transportation 4,932,420 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41 NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.8% (14.1% OF TOTAL INVESTMENTS) (4) $ 2,030 Butler County, Ohio, General Obligation Judgment Bonds, 12/12 at 101.00 Aa2 (4) $ 2,307,623 Series 2002, 5.250%, 12/01/21 (Pre-refunded 12/01/12) 1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox No Opt. Call A- (4) 1,154,600 International Airport, Series 2005B, 5.000%, 12/01/14 - SYNCORA GTY Insured (ETM) 2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 N/R (4) 2,186,860 General Obligation School Improvement Bonds, Series 2001, 5.000%, 12/15/26 (Pre-refunded 12/15/11) - MBIA Insured 1,500 Hamilton County, Ohio, Sewer System Revenue and Improvement 6/10 at 101.00 AA+ (4) 1,574,925 Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2000A, 5.750%, 12/01/25 (Pre-refunded 6/01/10) - MBIA Insured 1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AA (4) 1,074,980 Improvement Bonds, Series 2000, 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FGIC Insured 2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aa1 (4) 2,151,120 Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 N/R (4) 865,336 Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) - FGIC Insured 3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 3,139,980 Kettering Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10) 1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA (4) 1,355,130 Washington Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2000, 5.750%, 12/01/22 (Pre-refunded 12/01/10) 460 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aa2 (4) 514,832 Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 (Pre-refunded 6/01/12) - FGIC Insured Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A: 1,315 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 1,514,341 3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 3,892,374 1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,141,700 Obligation Bonds, Series 2003, 5.000%, 12/01/30 (Pre-refunded 12/01/13) - MBIA Insured 1,670 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 1,798,857 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 2,830 Springfield Township, Hamilton County, Ohio, Various Purpose 12/11 at 100.00 Aa3 (4) 3,106,095 Limited Tax General Obligation Bonds, Series 2002, 5.250%, 12/01/27 (Pre-refunded 12/01/11) 1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 N/R (4) 1,595,670 Improvement Bonds, Trinity Health System, Series 2000, 6.375%, 10/01/20 (Pre-refunded 10/01/10) 2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AA- (4) 2,146,780 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,705 Total U.S. Guaranteed 31,521,203 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 10.3% (6.9% OF TOTAL INVESTMENTS) 2,500 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 2,478,125 Series 2008, 5.250%, 2/15/43 4,000 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 A2 4,079,839 System Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 - NPFG Insured Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B: 2,105 0.000%, 11/15/32 - NPFG Insured No Opt. Call A 601,441 2,155 0.000%, 11/15/34 - NPFG Insured No Opt. Call A 543,836 3,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 10/09 at 100.00 N/R 2,571,600 Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 800 Ohio Municipal Electric Generation Agency, Beneficial No Opt. Call A1 252,216 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2001, 0.000%, 2/15/29 - NPFG Insured 2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 1,992,700 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured 3,700 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 3,038,847 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 20,260 Total Utilities 15,558,604 ------------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.5% (2.3% OF TOTAL INVESTMENTS) $ 430 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 $ 424,148 Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding No Opt. Call Aa2 1,133,600 and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - NPFG Insured 40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding 1/10 at 100.00 Aa2 40,052 and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - NPFG Insured 1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 10/15 at 100.00 Aa3 1,298,056 5.250%, 10/01/22 - FSA Insured 200 Marysville, Ohio, Wastewater Treatment System Revenue Bonds, 12/17 at 100.00 A- 186,812 Series 2007, 5.000%, 12/01/37 - SYNCORA GTY Insured 525 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 562,606 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 1,500 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 1,604,580 Loan Fund Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 4,915 Total Water and Sewer 5,249,854 ------------------------------------------------------------------------------------------------------------------------------------ $ 245,845 Total Investments (cost $220,429,924) - 148.3% 224,490,241 ===============--------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 3,886,950 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (50.9)% (5) (77,000,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 151,377,191 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.3%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. Nuveen Investments 43 NXI | Nuveen Ohio Dividend Advantage Municipal Fund | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.8% (4.0% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 1,320 5.875%, 6/01/30 6/17 at 100.00 BBB $ 1,119,109 3,375 5.875%, 6/01/47 6/17 at 100.00 BBB 2,489,434 45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 43,107 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 4,740 Total Consumer Staples 3,651,650 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.2% (6.2% OF TOTAL INVESTMENTS) 700 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 687,904 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 2,671,518 Ohio Northern University, Series 2002, 5.000%, 5/01/22 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 441,770 Wittenberg University, Series 2005, 5.000%, 12/01/24 1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 A+ 1,915,496 Bonds, Series 2004, 5.000%, 12/01/20 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,610 Total Education and Civic Organizations 5,716,688 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 16.6% (11.2% OF TOTAL INVESTMENTS) 1,385 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 1,170,547 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa2 1,153,867 Clinic Health System, Series 2003A, 6.000%, 1/01/32 500 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 466,405 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 N/R 1,954,856 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 330 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 305,702 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,002,410 Initiatives, Series 2004A, 5.000%, 5/01/30 375 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 384,986 Hospital, Series 2009A, 6.250%, 11/15/39 1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 1,092,746 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 250 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 259,755 Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 1,350 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 1,404,594 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.787%, 1/01/39 (IF) 335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 339,452 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 500 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 439,670 Health System Group, Series 2006, 5.250%, 11/15/36 375 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 380,063 Health System Series 2008, 5.750%, 12/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 10,500 Total Health Care 10,355,053 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.0% (6.1% OF TOTAL INVESTMENTS) 1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue 8/15 at 100.00 N/R 1,046,904 Bonds, Euclid Avenue Housing Corporation - Fenn Tower Project, Series 2005, 5.000%, 8/01/23 - AMBAC Insured 350 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 351,054 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax)
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 $ 2,937,190 Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26 340 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 302,066 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 1,000 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 959,360 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,740 Total Housing/Multifamily 5,596,574 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.4% (1.6% OF TOTAL INVESTMENTS) 265 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 271,175 Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 680 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 680,088 Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 45,477 Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 476,285 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,490 Total Housing/Single Family 1,473,025 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 7.0% (4.7% OF TOTAL INVESTMENTS) 1,500 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond 5/12 at 102.00 N/R 1,309,770 Fund Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 350 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 286,451 Revenue Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 880 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 BBB 861,001 Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 1,300 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa3 1,401,530 Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 700 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 520,184 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,730 Total Industrials 4,378,936 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 25.1% (17.0% OF TOTAL INVESTMENTS) 1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aa2 1,562,190 General Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured 400 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 159,244 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured 500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 536,775 5.000%, 12/01/21 1,355 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,467,153 5.000%, 12/01/27 470 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 493,495 12/01/32 2,550 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 2,644,299 Bonds, Series 2007, 5.000%, 12/01/34 - FSA Insured 2,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 1,991,320 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 430 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 442,857 Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured 1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,054,989 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 200 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 209,400 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,173 Obligation Bonds, Series 2008, 5.250%, 12/01/36 750 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 765,435 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36
Nuveen Investments 45 NXI | Nuveen Ohio Dividend Advantage Municipal Fund (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 50 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA $ 51,602 School Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 2,415 Troy City School District, Miami County, Ohio, General 12/14 at 100.00 Aa3 2,529,350 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FSA Insured 50 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 51,332 Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101.00 Aa1 1,632,297 Limited Tax General Obligation Refunding Bonds, Series 2001, 5.500%, 12/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,210 Total Tax Obligation/General 15,642,911 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.9% (10.8% OF TOTAL INVESTMENTS) 2,000 Franklin County, Ohio, Excise Tax and Lease Reve nue 12/15 at 100.00 Aaa 2,111,780 Anticipation Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured 1,415 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 A+ 1,473,468 Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC Insured 2,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 2,005,880 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 500 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 A2 515,080 Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/15 - AMBAC Insured 345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 359,173 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio State Building Authority, State Facilities Bonds, Adult 4/15 at 100.00 AAA 1,059,470 Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured 5,220 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 1,000,778 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,429,316 Loan Note, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 13,880 Total Tax Obligation/Limited 9,954,945 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.4% (1.0% OF TOTAL INVESTMENTS) 865 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 881,798 5.500%, 2/15/26 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 38.5% (26.1% OF TOTAL INVESTMENTS) (4) 1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 (4) 1,055,710 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 (Pre-refunded 12/01/10) 1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,177,290 Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - FSA Insured 1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA 1,168,680 Obligation Bonds, Series 2004, 5.250%, 12/01/16 (Pre-refunded 12/01/14) - FSA Insured 2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aa1 (4) 2,151,120 Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, Series 12/10 at 101.00 A2 (4) 975,402 2001, 5.500%, 12/01/18 (Pre-refunded 12/01/10) - AMBAC Insured 1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 Aa3 (4) 1,012,270 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 (Pre-refunded 12/01/09) - FGIC Insured 1,000 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 N/R (4) 1,138,600 Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) - FGIC Insured 1,000 Nordonia Hills Local School District, Ohio, General 12/10 at 101.00 AA (4) 1,071,250 Obligation Bonds, Series 2000, 5.450%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/11 at 101.00 AA (4) 2,206,040 Denison University, Series 2001, 5.200%, 11/01/26 (Pre-refunded 11/01/11) 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/10 at 101.00 N/R (4) 1,066,510 University of Dayton, Series 2000, 5.500%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 1,135 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA (4) 1,213,156 5.500%, 2/15/26 (Pre-refunded 2/15/11)
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ (4) $ 2,119,100 Bonds, Series 2001A, 5.000%, 2/01/20 (Pre-refunded 2/01/11) 1,900 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 2,188,021 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 716,311 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 1,275 Sycamore Community School District, Hamilton County, Ohio, 12/09 at 101.00 AA+ (4) 1,302,578 Unlimited Tax General Obligation School Improvement Bonds, Series 1999, 5.000%, 12/01/23 (Pre-refunded 12/01/09) - NPFG Insured 2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 A+ (4) 3,049,386 Series 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12) 400 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AA- (4) 429,356 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,020 Total U.S. Guaranteed 24,040,780 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.0% (8.1% OF TOTAL INVESTMENTS) 1,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 991,250 Series 2008, 5.250%, 2/15/43 1,440 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 A2 1,506,211 System Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - NPFG Insured 2,130 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 608,584 2008B, 0.000%, 11/15/32 - NPFG Insured 2,000 Ohio Air Quality Development Authority, Revenue Refunding 11/09 at 101.00 Baa1 1,894,840 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 988,050 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/21 - AMBAC Insured 1,800 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 1,478,358 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,370 Total Utilities 7,467,293 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.7% (3.2% OF TOTAL INVESTMENTS) 175 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 172,618 Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured 325 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 348,280 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aa2 2,383,835 Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,875 Total Water and Sewer 2,904,733 ------------------------------------------------------------------------------------------------------------------------------------ $ 97,030 Total Investments (cost $90,299,712) - 147.6% 92,064,386 ===============--------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 1,307,061 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (49.7)% (5) (31,000,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 62,371,447 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.7%. N/R Not rated. (IF) Inverse floating rate investment. See accompanying notes to financial statements. Nuveen Investments 47 NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.3% (2.9% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 250 5.875%, 6/01/30 6/17 at 100.00 BBB $ 211,953 2,200 5.875%, 6/01/47 6/17 at 100.00 BBB 1,622,742 45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 43,107 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 2,495 Total Consumer Staples 1,877,802 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.0% (8.0% OF TOTAL INVESTMENTS) 1,345 Bowling Green State University, Ohio, General Receipts Bonds, 6/13 at 100.00 A 1,446,077 Series 2003, 5.250%, 6/01/18 - AMBAC Insured 450 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 442,224 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 1,054,085 Wittenberg University, Series 2001, 5.500%, 12/01/15 1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 A+ 1,026,690 Series 2003C, 5.000%, 6/01/22 - FGIC Insured 1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ 1,305,383 Series 2004D, 5.000%, 6/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,090 Total Education and Civic Organizations 5,274,459 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.5% (16.4% OF TOTAL INVESTMENTS) 1,090 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 921,224 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 933,190 Firelands Regional Medical Center, Series 2002A, 5.500%, 8/15/22 250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 233,203 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101.00 AA- 1,888,295 Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.400%, 10/01/21 225 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 208,433 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 701,687 Initiatives, Series 2004A, 5.000%, 5/01/30 90 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 92,397 Hospital, Series 2009A, 6.250%, 11/15/39 35 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 36,425 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 100 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 103,902 Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 1,000 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 1,040,440 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.787%, 1/01/39 (IF) 665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 673,838 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 350 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 307,769 Health System Group, Series 2006, 5.250%, 11/15/36 90 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 91,215 Health System Series 2008, 5.750%, 12/01/35 3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 Baa1 3,512,149 Union Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,115 Total Health Care 10,744,167 ------------------------------------------------------------------------------------------------------------------------------------
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.1% (3.4% OF TOTAL INVESTMENTS) $ 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa $ 1,034,410 Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) 250 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 250,753 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 250 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 222,108 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 750 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 719,520 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,250 Total Housing/Multifamily 2,226,791 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.2% (1.4% OF TOTAL INVESTMENTS) 995 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 947,807 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 8.3% (5.5% OF TOTAL INVESTMENTS) 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 BBB+ 2,645,190 Revenue Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) 640 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 BBB 626,182 Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 500 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 371,560 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,140 Total Industrials 3,642,932 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 44.8% (29.8% OF TOTAL INVESTMENTS) 1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 A2 1,728,883 Bonds, One Renaissance Center Acquisition, Series 2001, 5.000%, 11/01/26 - AMBAC Insured Cleveland Municipal School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004: 1,000 5.000%, 12/01/15 - FSA Insured 6/14 at 100.00 AAA 1,109,620 1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,035,110 300 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 119,433 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured 400 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 429,420 5.000%, 12/01/21 1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,082,770 5.000%, 12/01/27 400 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 419,996 12/01/32 1,905 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 1,975,447 Bonds, Series 2007, 5.000%, 12/01/34 - FSA Insured 1,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 995,660 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 345 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 355,316 Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aa3 2,584,971 Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured 1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,054,989 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 200 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 209,400 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,173 Obligation Bonds, Series 2008, 5.250%, 12/01/36 2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 A 2,709,106 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 400 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 408,232 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36
Nuveen Investments 49 NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA $ 2,009,470 5.000%, 12/01/25 - FGIC Insured 1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/12 at 100.00 AA+ 1,039,660 12/01/25 - FGIC Insured 50 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 51,602 School Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 200 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 205,328 Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 19,000 Total Tax Obligation/General 19,575,586 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.2% (9.4% OF TOTAL INVESTMENTS) 1,400 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 1,404,116 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 260,270 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio State Building Authority, State Facilities Bonds, Adult 4/15 at 100.00 AAA 1,059,470 Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured 500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AA 506,440 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - NPFG Insured 1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,180,815 Capital Facilities, Series 2004A-II, 5.000%, 12/01/18 4,065 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 779,342 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 1,000 Summit County Port Authority, Ohio, Revenue Bonds, Civic 12/11 at 100.00 N/R 1,009,160 Theatre Project, Series 2001, 5.500%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,310 Total Tax Obligation/Limited 6,199,613 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.2% (14.1% OF TOTAL INVESTMENTS) (4) 1,845 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 1,893,413 5.250%, 1/01/18 (Pre-refunded 1/01/10) - FSA Insured 605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 712,260 Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - FSA Insured 1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aa3 (4) 1,094,780 Obligation Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 (Pre-refunded 12/01/11) - MBIA Insured 2,250 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 2,481,998 Obligation Bonds, Series 2001, 5.500%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 1,000 Marysville Exempted Village School District, Ohio, 6/15 at 100.00 N/R (4) 1,176,150 Certificates of Participation, School Facilities Project, Series 2005, 5.250%, 12/01/21 (Pre-refunded 6/01/15) - MBIA Insured 1,050 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 1,221,035 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 (Pre-refunded 6/01/14) - FGIC Insured 635 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 683,997 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 8,385 Total U.S. Guaranteed 9,263,633 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.2% (8.1% OF TOTAL INVESTMENTS) 1,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 991,250 Series 2008, 5.250%, 2/15/43 1,065 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 304,292 2008B, 0.000%, 11/15/32 - NPFG Insured 2,500 Ohio Air Quality Development Authority, Revenue Refunding 11/09 at 101.00 Baa1 2,368,550 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 595 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 592,828 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured 1,300 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 1,067,703 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,460 Total Utilities 5,324,623 ------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.5% (1.0% OF TOTAL INVESTMENTS) $ 130 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 $ 128,231 Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured 210 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 225,042 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 285,741 Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 610 Total Water and Sewer 639,014 ------------------------------------------------------------------------------------------------------------------------------------ $ 69,850 Total Investments (cost $65,793,029) - 150.3% 65,716,427 ===============--------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 1,095,864 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (52.8)% (5) (23,100,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 43,712,291 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 35.2%. N/R Not rated. (IF) Inverse floating rate investment. See accompanying notes to financial statements. Nuveen Investments 51 NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.8% (4.6% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 1,100 5.875%, 6/01/30 6/17 at 100.00 BBB $ 932,591 1,670 5.875%, 6/01/47 6/17 at 100.00 BBB 1,231,809 20 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 19,159 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 2,790 Total Consumer Staples 2,183,559 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.2% (4.1% OF TOTAL INVESTMENTS) 350 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 343,952 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A3 1,183,568 Ohio Northern University, Series 2002, 5.750%, 5/01/16 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 441,770 Wittenberg University, Series 2005, 5.000%, 12/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 1,975 Total Education and Civic Organizations 1,969,290 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 20.8% (13.9% OF TOTAL INVESTMENTS) 695 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 587,386 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,633,082 Firelands Regional Medical Center, Series 2002A, 5.500%, 8/15/22 250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 233,203 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 160 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 148,219 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 500 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 501,205 Initiatives, Series 2004A, 5.000%, 5/01/30 60 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 Aa3 61,598 Series 2009A, 6.250%, 11/15/39 600 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 624,426 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 1,500 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 1,558,530 Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 675 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 AA- 702,297 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.787%, 1/01/39 (IF) 335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 339,452 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 250 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 219,835 Health System Group, Series 2006, 5.250%, 11/15/36 60 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 60,810 Health System Series 2008, 5.750%, 12/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 6,835 Total Health Care 6,670,043 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS) 200 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 200,602 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 200 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 177,686 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 750 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 719,520 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,150 Total Housing/Multifamily 1,097,808 ------------------------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS) $ 125 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa $ 127,913 Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 415 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 415,054 Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 45,477 Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 476,285 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,085 Total Housing/Single Family 1,064,729 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 3.9% (2.6% OF TOTAL INVESTMENTS) 555 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond 5/12 at 102.00 N/R 484,615 Fund Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 480 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 BBB 469,637 Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 400 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 297,248 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,435 Total Industrials 1,251,500 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 34.2% (22.9% OF TOTAL INVESTMENTS) 1,815 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 722,570 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured 300 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 322,065 5.000%, 12/01/21 1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,082,770 5.000%, 12/01/27 250 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 262,498 12/01/32 1,275 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 1,322,150 Series 2007, 5.000%, 12/01/34 - FSA Insured 1,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 995,660 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,052,230 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - NPFG Insured 210 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 223,724 Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured 1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 5.125%, 12/12 at 100.00 Baa2 1,232,395 12/01/26 - AMBAC Insured 500 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 524,870 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 100 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 104,700 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,173 Obligation Bonds, Series 2008, 5.250%,12/01/36 150 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 153,087 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,058,170 Bonds, Series 2001B, 5.000%, 9/15/20 1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AAA 1,228,604 Bonds, Series 2002, 5.000%, 12/01/18 500 Sylvania City School District, Ohio, General Obligation School 6/17 at 100.00 AAA 516,015 Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 100 Vandalia Butler City School District, Montgomery County, Ohio, No Opt. Call AA 102,664 General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 11,650 Total Tax Obligation/General 10,955,345 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53 NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 13.9% (9.3% OF TOTAL INVESTMENTS) $ 1,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 $ 1,002,940 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 998,640 Certificates of Participation, Series 2003, 5.000%, 11/01/30 1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,343,713 Administrative Building Fund Projects, Series 2002A, 5.500%, 4/01/18 - FSA Insured 200 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 208,216 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AA 506,440 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - NPFG Insured 2,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 383,440 Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 5,950 Total Tax Obligation/Limited 4,443,389 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.6% (3.8% OF TOTAL INVESTMENTS) 1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, Series No Opt. Call AA 1,809,128 1998A, 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 40.3% (27.0% OF TOTAL INVESTMENTS) (4) 725 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 A1 (4) 837,426 Obligation Bonds, Series 2002, 5.750%, 12/01/21 (Pre-refunded 12/01/12) - FGIC Insured 1,300 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 (4) 1,434,043 Obligation Bonds, Series 2001, 5.500%, 12/01/28 (Pre-refunded 12/01/11) 1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 5.375%, 12/12 at 100.00 AA (4) 1,133,520 12/01/22 (Pre-refunded 12/01/12) 500 Miami East Local School District, Miami County, Ohio, General 6/12 at 100.00 AAA 555,110 Obligation Bonds, Series 2002, 5.125%, 12/01/29 (Pre-refunded 6/01/12) - FSA Insured 1,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 1,046,660 Kettering Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10) 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 Aa2 (4) 1,085,160 Initiatives, Series 2001, 5.500%, 9/01/12 (Pre-refunded 9/01/11) 2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 N/R (4) 2,260,499 Case Western Reserve University, Series 2002B, 5.500%, 10/01/22 (Pre-refunded 10/01/12) 1,000 Ohio State University, General Receipts Bonds, Series 1999A, 12/09 at 101.00 AA (4) 1,023,630 5.800%, 12/01/29 (Pre-refunded12/01/09) 1,000 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 1,151,590 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 (Pre-refunded 6/01/14) - FGIC Insured 1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AA- (4) 1,683,664 Counties, Ohio, General Obligation Bonds, School Facilities Construction and Improvement, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 716,311 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 11,725 Total U.S. Guaranteed 12,927,613 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.1% (6.1% OF TOTAL INVESTMENTS) 500 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 495,625 Series 2008, 5.250%, 2/15/43 1,500 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 A2 1,568,969 Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - NPFG Insured 1,595 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 455,723 2008B, 0.000%, 11/15/32 - NPFG Insured 500 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 101.00 N/R 410,655 Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,095 Total Utilities 2,930,972 ------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.8% (1.2% OF TOTAL INVESTMENTS) $ 130 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 A3 $ 128,231 Series 2007, 5.000%, 12/01/32 - AMBAC Insured 160 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 171,461 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 285,741 Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 560 Total Water and Sewer 585,433 ------------------------------------------------------------------------------------------------------------------------------------ $ 50,800 Total Investments (cost $46,339,770) - 149.3% 47,888,809 ===============--------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 681,447 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (51.4)% (5) (16,500,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 32,070,256 ==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: 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. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.5%. N/R Not rated. (IF) Inverse floating rate investment. See accompanying notes to financial statements. Nuveen Investments 55 | Statement of | Assets & Liabilities August 31, 2009 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ----------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $248,338,339, $159,346,389 and $42,705,638, respectively) $ 254,582,577 $ 160,808,680 $ 42,867,561 Cash 673,918 623,471 262,503 Receivables: Interest 3,795,757 2,584,612 628,397 Investments sold -- 9,921 -- Other assets 57,605 49,606 6,442 ----------------------------------------------------------------------------------------------------------------- Total assets 259,109,857 164,076,290 43,764,903 ----------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations 3,630,000 2,330,000 665,000 Payables: Common share dividends 608,078 380,133 113,518 Preferred share dividends 4,130 3,849 1,011 Accrued expenses: Management fees 138,441 88,104 18,103 Other 91,807 53,884 16,778 ----------------------------------------------------------------------------------------------------------------- Total liabilities 4,472,456 2,855,970 814,410 ----------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 87,325,000 53,700,000 14,275,000 ----------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 167,312,401 $ 107,520,320 $ 28,675,493 ================================================================================================================= Common shares outstanding 11,638,753 7,682,048 2,066,086 ================================================================================================================= Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.38 $ 14.00 $ 13.88 ================================================================================================================ NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ---------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 116,388 $ 76,820 $ 20,661 Paid-in surplus 163,157,246 107,676,970 29,267,145 Undistributed (Over-distribution of) net investment income 1,315,593 824,977 201,528 Accumulated net realized gain (loss) from investments (3,521,064) (2,520,738) (975,764) Net unrealized appreciation (depreciation) of investments 6,244,238 1,462,291 161,923 ---------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 167,312,401 $ 107,520,320 $ 28,675,493 ================================================================================================================ Authorized shares: Common 200,000,000 200,000,000 Unlimited Preferred 1,000,000 1,000,000 Unlimited ================================================================================================================
See accompanying notes to financial statements. 56 Nuveen Investments
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $220,429,924, $90,299,712, $65,793,029 and $46,339,770, respectively) $ 224,490,241 $ 92,064,386 $ 65,716,427 $ 47,888,809 Cash 1,375,144 230,253 256,276 140,904 Receivables: Interest 2,867,232 1,233,578 953,889 651,318 Investments sold 345,000 150,000 100,000 30,000 Other assets 41,325 15,899 8,830 31,612 ----------------------------------------------------------------------------------------------------------------------------- Total assets 229,118,942 93,694,116 67,035,422 48,742,643 ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations -- -- -- -- Payables: Common share dividends 541,296 248,456 171,591 132,064 Preferred share dividends 4,936 2,196 307 1,465 Accrued expenses: Management fees 122,102 42,627 27,665 20,125 Other 73,417 29,390 23,568 18,733 ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 741,751 322,669 223,131 172,387 ----------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 77,000,000 31,000,000 23,100,000 16,500,000 ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 151,377,191 $ 62,371,447 $ 43,712,291 $ 32,070,256 ============================================================================================================================= Common shares outstanding 9,746,032 4,243,493 3,121,477 2,156,758 ============================================================================================================================= Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.53 $ 14.70 $ 14.00 $ 14.87 ============================================================================================================================= NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ----------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 97,460 $ 42,435 $ 31,215 $ 21,568 Paid-in surplus 147,811,461 60,261,755 44,255,705 30,521,415 Undistributed (Over-distribution of) net investment income 1,308,079 630,639 362,152 292,385 Accumulated net realized gain (loss) from investments (1,900,126) (328,056) (860,179) (314,151) Net unrealized appreciation (depreciation) of investments 4,060,317 1,764,674 (76,602) 1,549,039 ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 151,377,191 $ 62,371,447 $ 43,712,291 $ 32,070,256 ============================================================================================================================= Authorized shares: Common 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited Unlimited =============================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 57 | Statement of | Operations Six Months ended August 31, 2009 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 6,422,505 $ 4,137,904 $ 1,107,283 ------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 812,235 517,809 137,373 Preferred shares - auction fees 82,652 50,854 13,533 Preferred shares - dividend disbursing agent fees 10,082 10,082 5,041 Shareholders' servicing agent fees and expenses 9,274 7,116 325 Interest expense on floating rate obligations 18,958 12,169 3,473 Custodian's fees and expenses 25,795 17,791 7,098 Directors'/Trustees' fees and expenses 4,181 2,657 697 Professional fees 13,082 10,208 5,264 Shareholders' reports - printing and mailing expenses 26,590 18,405 6,623 Stock exchange listing fees 4,647 4,647 147 Investor relations expense 8,186 5,467 1,507 Other expenses 15,262 10,874 7,413 ------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,030,944 668,079 188,494 Custodian fee credit (39) (35) (8) Expense reimbursement -- -- (31,808) ------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,030,905 668,044 156,678 ------------------------------------------------------------------------------------------------------------------------------ Net investment income 5,391,600 3,469,860 950,605 ------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (1,186,661) (833,619) (377,811) Change in net unrealized appreciation (depreciation) of investments 9,463,463 5,600,130 2,608,478 ------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 8,276,802 4,766,511 2,230,667 ------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (267,696) (165,751) (36,365) ------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred Shareholders (267,696) (165,751) (36,365) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 13,400,706 $ 8,070,620 $ 3,144,907 ==============================================================================================================================
58 Nuveen Investments
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 5,722,444 $ 2,334,790 $ 1,657,452 $ 1,227,340 ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 717,727 296,516 211,594 154,326 Preferred shares - auction fees 71,726 28,877 21,518 15,370 Preferred shares - dividend disbursing agent fees 15,123 5,041 5,041 5,041 Shareholders' servicing agent fees and expenses 10,193 542 579 430 Interest expense on floating rate obligations -- -- -- -- Custodian's fees and expenses 23,324 11,458 8,931 7,436 Directors'/Trustees' fees and expenses 3,726 1,526 1,089 793 Professional fees 12,090 6,835 6,018 5,523 Shareholders' reports - printing and mailing expenses 24,487 10,089 8,563 7,194 Stock exchange listing fees 4,647 302 222 154 Investor relations expense 7,545 2,847 2,186 1,622 Other expenses 10,848 8,174 8,790 8,467 ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 901,436 372,207 274,531 206,356 Custodian fee credit (77) (12) (9) (18) Expense reimbursement -- (49,557) (48,992) (37,702) ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 901,359 322,638 225,530 168,636 ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 4,821,085 2,012,152 1,431,922 1,058,704 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (147,282) (127,634) (128,359) (261,621) Change in net unrealized appreciation (depreciation) of investments 8,689,154 3,426,682 2,789,125 1,999,426 ----------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 8,541,872 3,299,048 2,660,766 1,737,805 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (233,280) (95,716) (70,473) (51,207) ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred Shareholders (233,280) (95,716) (70,473) (51,207) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 13,129,677 $ 5,215,484 $ 4,022,215 $ 2,745,302 ===================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 59 | Statement of | Changes in Net Assets (Unaudited)
MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) --------------------------------------------- --------------------------------------------- SIX MONTHS SEVEN SIX MONTHS SEVEN ENDED MONTHS ENDED YEAR ENDED ENDED MONTHS ENDED YEAR ENDED 8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08 --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 5,391,600 $ 6,297,863 $ 10,847,892 $ 3,469,860 $ 4,032,688 $ 6,913,995 Net realized gain (loss) from: Investments (1,186,661) (1,757,557) (263,137) (833,619) (1,285,668) (512,989) Forward swaps -- -- -- -- 69,797 (6,970) Futures contracts -- -- -- -- 41,405 -- Change in net unrealized appreciation (depreciation) of: Investments 9,463,463 (5,268,940) (7,931,308) 5,600,130 (3,725,846) (5,009,333) Forward swaps -- -- -- -- (71,362) 207,726 Futures contracts -- -- -- -- (13,813) 13,813 Distributions to Preferred Shareholders: From net investment income (267,696) (1,528,357) (2,850,189) (165,751) (911,943) (1,775,079) From accumulated net realized gains -- -- (431,262) -- -- (187,020) --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 13,400,706 (2,256,991) (628,004) 8,070,620 (1,864,742) (355,857) --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,019,135) (4,551,261) (7,897,051) (2,552,632) (2,906,120) (5,138,948) From accumulated net realized gains -- -- (1,193,754) -- -- (574,353) --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common Shareholders (4,019,135) (4,551,261) (9,090,805) (2,552,632) (2,906,120) (5,713,301) --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased (785,670) -- -- (432,115) (283,094) -- --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (785,670) -- -- (432,115) (283,094) -- --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 8,595,901 (6,808,252) (9,718,809) 5,085,873 (5,053,956) (6,069,158) Net assets applicable to Common shares at the beginning of period 158,716,500 165,524,752 175,243,561 102,434,447 107,488,403 113,557,561 --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 167,312,401 $ 158,716,500 $ 165,524,752 $ 107,520,320 $ 102,434,447 $ 107,488,403 ================================================================================================================================= Undistributed (Over-distribution of) net investment income at the end of period $ 1,315,593 $ 210,824 $ (7,421) $ 824,977 $ 73,500 $ (141,120) =================================================================================================================================
60 Nuveen Investments
MICHIGAN OHIO DIVIDEND ADVANTAGE (NZW) QUALITY INCOME (NUO) --------------------------------------------- --------------------------------------------- SIX MONTHS SEVEN SIX MONTHS SEVEN ENDED MONTHS ENDED YEAR ENDED ENDED MONTHS ENDED YEAR ENDED 8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08 --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 950,605 $ 1,113,258 $ 1,952,639 $ 4,821,085 $ 5,455,829 $ 9,258,185 Net realized gain (loss) from: Investments (377,811) (206,695) (97,468) (147,282) (963,174) (894,117) Forward swaps -- -- -- -- -- (113,636) Futures contracts -- -- -- -- 348,303 (8,573) Change in net unrealized appreciation (depreciation) of: Investments 2,608,478 (1,840,743) (1,870,613) 8,689,154 (4,408,974) (6,068,561) Forward swaps -- -- -- -- -- 141,307 Futures contracts -- -- -- -- (101,622) 101,622 Distributions to Preferred Shareholders: From net investment income (36,365) (265,934) (491,691) (233,280) (1,253,559) (2,439,092) From accumulated net realized gains -- (8,429) (48,339) -- -- (235,804) --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 3,144,907 (1,208,543) (555,472) 13,129,677 (923,197) (258,669) --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (696,291) (815,426) (1,457,223) (3,635,271) (3,810,698) (6,520,095) From accumulated net realized gains -- (24,804) (150,270) -- -- (656,883) --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common Shareholders (696,291) (840,230) (1,607,493) (3,635,271) (3,810,698) (7,176,978) --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 8,680 -- -- -- Repurchased (9,059) -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (9,059) -- 8,680 -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 2,439,557 (2,048,773) (2,154,285) 9,494,406 (4,733,895) (7,435,647) Net assets applicable to Common shares at the beginning of period 26,235,936 28,284,709 30,438,994 141,882,785 146,616,680 154,052,327 --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 28,675,493 $ 26,235,936 $ 28,284,709 $ 151,377,191 $ 141,882,785 $ 146,616,680 ================================================================================================================================= Undistributed (Over-distribution of) net investment income at the end of period $ 201,528 $ (16,421) $ (48,259) $ 1,308,079 $ 355,545 $ 3,336 =================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 61 | Statement of | Changes in Net Assets (Unaudited) (continued)
OHIO OHIO DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------- -------------------------------------------- SIX MONTHS SEVEN SIX MONTHS SEVEN ENDED MONTHS ENDED YEAR ENDED ENDED MONTHS ENDED YEAR ENDED 8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08 --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,012,152 $ 2,294,907 $ 3,959,340 $ 1,431,922 $ 1,675,202 $ 2,890,350 Net realized gain (loss) from: Investments (127,634) (160,768) (240,447) (128,359) (424,412) (326,158) Forward swaps -- 104,696 (31,726) -- -- (45,455) Futures contracts -- 276,060 (8,580) -- 64,124 -- Change in net unrealized appreciation (depreciation) of: Investments 3,426,682 (2,005,025) (2,295,579) 2,789,125 (2,249,194) (1,953,136) Forward swaps -- (107,042) 220,088 -- -- 56,523 Futures contracts -- (41,291) 41,291 -- (19,976) 19,976 Distributions to Preferred Shareholders: From net investment income (95,716) (507,674) (974,550) (70,473) (391,035) (790,428) From accumulated net realized gains -- -- (133,387) -- -- (67,354) --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 5,215,484 (146,137) 536,450 4,022,215 (1,345,291) (215,682) --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,536,145) (1,629,732) (2,775,637) (1,064,424) (1,186,161) (2,007,110) From accumulated net realized gains -- -- (399,794) -- -- (185,104) --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common Shareholders (1,536,145) (1,629,732) (3,175,431) (1,064,424) (1,186,161) (2,192,214) --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased -- (6,912) -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- (6,912) -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 3,679,339 (1,782,781) (2,638,981) 2,957,791 (2,531,452) (2,407,896) Net assets applicable to Common shares at the beginning of period 58,692,108 60,474,889 63,113,870 40,754,500 43,285,952 45,693,848 --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 62,371,447 $ 58,692,108 $ 60,474,889 $ 43,712,291 $ 40,754,500 $ 43,285,952 ================================================================================================================================= Undistributed (Over-distribution of)net investment income at the end of period $ 630,639 $ 250,348 $ 108,618 $ 362,152 $ 65,127 $ (32,879) =================================================================================================================================
62 Nuveen Investments
OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------ SIX MONTHS SEVEN ENDED MONTHS ENDED YEAR ENDED 8/31/09 2/28/09 7/31/08 -------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,058,704 $ 1,194,279 $ 2,053,018 Net realized gain (loss) from: Investments (261,621) (55,182) (272,641) Forward swaps -- 104,696 -- Futures contracts -- 173,467 23,859 Change in net unrealized appreciation (depreciation) of: Investments 1,999,426 (958,880) (1,043,820) Forward swaps -- (107,042) 107,042 Futures contracts -- (21,252) 9,550 Distributions to Preferred Shareholders: From net investment income (51,207) (265,893) (496,884) From accumulated net realized gains -- -- (45,494) -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 2,745,302 64,193 334,630 -------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (802,314) (857,987) (1,454,801) From accumulated net realized gains -- -- (132,313) -------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common Shareholders (802,314) (857,987) (1,587,114) -------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- Repurchased -- (20,129) -- -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- (20,129) -- -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 1,942,988 (813,923) (1,252,484) Net assets applicable to Common shares at the beginning of period 30,127,268 30,941,191 32,193,675 -------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 32,070,256 $ 30,127,268 $ 30,941,191 ================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 292,385 $ 87,202 $ 24,308 ==================================================================================================
See accompanying notes to financial statements. Nuveen Investments 63 | Notes to | Financial Statements (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP), Nuveen Michigan Dividend Advantage Municipal Fund (NZW), Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO), Nuveen Ohio Dividend Advantage Municipal Fund (NXI), Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) and Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (collectively, the "Funds"). Common shares of Michigan Quality Income (NUM), Michigan Premium Income (NMP), and Ohio Quality Income (NUO) are traded on the New York Stock Exchange while Common shares of Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. During the prior fiscal period, the Board of Directors/Trustees of the Funds approved a change in the Funds' fiscal and tax year end from July 31 to February 28/29. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. Futures contracts are valued using the closing settlement price, or, in the absence of such a price, at the mean of the bid and asked prices. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Directors/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. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At August 31, 2009, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 64 Nuveen Investments For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. 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). Furthermore, management of the Funds 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 Dividends from tax=exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax=exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex=dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from US generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of August 31, 2009, the number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Number of shares: Series M -- 805 -- Series W -- -- 571 Series TH 2,972 1,343 -- Series F 521 -- -- -------------------------------------------------------------------------------- Total 3,493 2,148 571 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Number of shares: Series M 680 -- -- -- Series T -- -- -- 660 Series W -- 1,240 -- -- Series TH 1,400 -- -- -- Series TH2 1,000 -- -- -- Series F -- -- 924 -- -------------------------------------------------------------------------------- Total 3,080 1,240 924 660 ================================================================================ Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the Preferred shares. These developments have generally not affected the portfolio management or investment policies of the Funds. However, one continuing implication of these auction failures for Common shareholders is that the Funds' cost of leverage likely has been incrementally higher at times, than it otherwise might have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may likely have been incrementally lower than they otherwise might have been. As of August 31, 2009, the aggregate amount of outstanding Preferred shares redeemed by each Fund is as follows: Nuveen Investments 65 | Notes to | Financial Statements (Unaudited) (continued) MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $ 6,675,000 $ 2,300,000 $ 1,725,000 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $ -- $ -- $ 900,000 $ -- ================================================================================ Effective May 1, 2009, auction participation fees with respect to auctions that have failed have been reduced from 25 bps (annualized) to 15 bps (annualized). All auction participants have signed new agreements incorporating this change. Inverse Floating Rate Securities Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards No. 140 (SFAS No. 140) "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities." In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust," with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in "Investment Income" the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as "Interest expense on floating rate obligations" on the Statement of Operations. During the six months ended August 31, 2009, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At August 31 2009, the Funds were not invested in externally-deposited Recourse Trusts.
MICHIGAN MICHIGAN MICHIGAN OHIO OHIO OHIO OHIO QUALITY PREMIUM DIVIDEND QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME INCOME ADVANTAGE INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUM) (NMP) (NZW) (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ -- ===============================================================================================================================
66 Nuveen Investments The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the six months ended August 31, 2009, were as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------- Average floating rate obligations $ 3,274,891 $ 2,102,065 $ 599,946 Average annual interest rate and fees 1.15% 1.15% 1.15% ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO)* (NXI)* (NBJ)* (NVJ)* -------------------------------------------------------------------------------- Average floating rate obligations $ -- $ -- $ -- $ -- Average annual interest rate and fees -- -- -- -- ================================================================================ * Fund did not invest in self-deposited inverse floaters during the six months ended August 31, 2009. Swap Contracts Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality). Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as "Unrealized appreciation or depreciation on forward swaps" with the change during the fiscal period recognized on the Statement of Operations as "Change in net unrealized appreciation (depreciation) of forward swaps." The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as "Net realized gain (loss) from forward swaps." Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. The Funds did not invest in forward interest rate swap transactions during the six months ended August 31, 2009. Futures Contracts Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in order to gain exposure to, or hedge against changes in interest rates. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as "Deposits with brokers for open futures contracts" on the Statement of Assets and Liabilities. Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for "Variation margin on futures contracts" on the Statement of Assets and Liabilities, when applicable. During the period the futures contract is open, changes in the value of the contract are recorded as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract and is recognized as "Change in net unrealized appreciation (depreciation) of futures contracts" on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into and is recognized as "Net realized gain (loss) from futures contracts" on the Statement of Operations. The Funds did not invest in futures contracts during the six months ended August 31, 2009. Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. Nuveen Investments 67 | Notes to | Financial Statements (Unaudited) (continued) Market and Counterparty Credit Risk In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount. Zero Coupon Securities Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FAIR VALUE MEASUREMENTS In determining the value of each 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 each Fund's fair value measurements as of August 31, 2009:
MICHIGAN QUALITY INCOME (NUM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $254,582,577 $ -- $254,582,577 =============================================================================================== MICHIGAN PREMIUM INCOME (NMP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $160,808,680 $ -- $160,808,680 ===============================================================================================
68 Nuveen Investments
MICHIGAN DIVIDEND ADVANTAGE (NZW) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 42,867,561 $ -- $ 42,867,561 =============================================================================================== OHIO QUALITY INCOME (NUO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $224,490,241 $ -- $224,490,241 =============================================================================================== OHIO DIVIDEND ADVANTAGE (NXI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 92,064,386 $ -- $ 92,064,386 =============================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 65,716,427 $ -- $ 65,716,427 =============================================================================================== OHIO DIVIDEND ADVANTAGE 3 (NVJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 47,888,809 $ -- $ 47,888,809 ===============================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the current fiscal period, the Funds adopted the provisions of Statement of Financial Accounting Standards No. 161 (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 better understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund's financial position, results of operations and cash flows, if any. The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for SFAS No. 161 disclosure purposes. The Funds did not invest in derivative instruments during the six months ended August 31, 2009. 4. FUND SHARES Common Shares Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM INCOME (NUM) INCOME (NMP) -------------------------------------- ------------------------------------- SIX MONTHS SEVEN MONTHS YEAR SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08 ---------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased (76,200) -- -- (42,300) (26,700) -- ---------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 10.29 -- -- $ 10.20 $ 10.58 -- Discount per share repurchased 23.56% -- -- 22.70% 20.80% -- ================================================================================================================
MICHIGAN DIVIDEND OHIO QUALITY ADVANTAGE (NZW) INCOME (NUO) -------------------------------------- ------------------------------------- SIX MONTHS SEVEN MONTHS YEAR SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08 ---------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- 595 -- -- -- Repurchased (900) -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 10.05 -- -- -- -- -- Discount per share repurchased 20.27% -- -- -- -- -- ================================================================================================================
Nuveen Investments 69 | Notes to | Financial Statements (Unaudited) (continued)
OHIO DIVIDEND OHIO DIVIDEND ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) -------------------------------------- ------------------------------------- SIX MONTHS SEVEN MONTHS YEAR SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 8/31/09 2/28/09 7/31/08 ---------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased -- (600) -- -- -- -- ---------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased -- $ 11.50 -- -- -- -- Discount per share repurchased -- 17.21% -- -- -- -- ================================================================================================================
OHIO DIVIDEND ADVANTAGE 3 (NVJ) -------------------------------------------------------------------------------- SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 -------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- Repurchased -- (1,700) -- -------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased -- $ 11.82 -- Discount per share repurchased -- 16.10% -- ================================================================================ Preferred Shares Transactions in Preferred shares were as follows:
MICHIGAN QUALITY INCOME (NUM) ----------------------------------------------------------------------------- SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 ----------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series TH 122 $3,050,000 106 $2,650,000 -- $ -- Series F 21 525,000 18 450,000 -- -- ---------------------------------------------------------------------------------------------------------------- Total 143 $3,575,000 124 $3,100,000 -- $ -- ================================================================================================================
MICHIGAN PREMIUM INCOME (NMP) ----------------------------------------------------------------------------- SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 ----------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series M 35 $ 875,000 -- $ -- -- $ -- Series TH 57 1,425,000 -- -- -- -- ---------------------------------------------------------------------------------------------------------------- Total 92 $2,300,000 -- $ -- -- $ -- ================================================================================================================
70 Nuveen Investments
MICHIGAN DIVIDEND ADVANTAGE (NZW) ----------------------------------------------------------------------------- SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 ----------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series W 26 $ 650,000 43 $1,075,000 -- $ -- ================================================================================================================
OHIO DIVIDEND ADVANTAGE 2 (NBJ) ----------------------------------------------------------------------------- SIX MONTHS SEVEN MONTHS YEAR ENDED ENDED ENDED 8/31/09 2/28/09 7/31/08 ----------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series F -- $ -- 36 $900,000 -- $ -- ================================================================================================================
5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the six months ended August 31, 2009, were as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Purchases $ 12,650,755 $8,219,206 $1,752,253 Sales and maturities 11,863,116 7,725,501 1,588,154 ================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------ Purchases $ 9,790,609 $ 2,847,854 $ 1,996,102 $ 3,049,436 Sales and maturities 6,680,919 2,611,664 1,494,852 2,869,968 ================================================================================================
6. 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 timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At August 31, 2009, the cost of investments was as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------- Cost of investments $244,791,385 $156,989,829 $ 42,029,578 ===============================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------ Cost of investments $ 220,299,619 $ 90,226,921 $ 65,765,415 $ 46,317,426 ================================================================================================
Nuveen Investments 71 | Notes to | Financial Statements (Unaudited) (continued) Gross unrealized appreciation and gross unrealized depreciation of investments at August 31, 2009, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $10,912,835 $ 3,693,034 $ 1,294,053 Depreciation (4,751,173) (2,203,837) (1,120,902) ------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 6,161,662 $ 1,489,197 $ 173,151 =======================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 9,379,935 $ 3,770,950 $ 1,860,407 $ 2,550,334 Depreciation (5,189,313) (1,933,485) (1,909,395) (978,951) -------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 4,190,622 $ 1,837,465 $ (48,988) $ 1,571,383 ==========================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 28, 2009, the Funds' last tax year end, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ----------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 791,183 $ 464,129 $ 99,521 Undistributed net ordinary income ** -- -- -- Undistributed net long-term capital gains -- -- -- =========================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 822,568 $ 378,027 $ 214,793 $ 200,792 Undistributed net ordinary income ** 1,478 52,302 -- -- Undistributed net long-term capital gains -- -- -- -- =========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 3, 2009, paid on March 2, 2009. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the Funds' last tax years ended February 28, 2009, and July 31, 2008, was designated for purposes of the dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUM) (NMP) (NZW) -------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 6,134,177 $ 3,859,940 $ 1,079,536 Distributions from net ordinary income ** -- -- -- Distributions from net long-term capital gains -- -- 33,173 ============================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 5,095,614 $ 2,133,665 $ 1,578,459 $ 1,122,076 Distributions from net ordinary income ** -- -- -- -- Distributions from net long-term capital gains -- -- -- -- ==============================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 72 Nuveen Investments
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE 2008 (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 10,748,540 $ 6,922,965 $ 1,960,679 Distributions from net ordinary income ** 68,426 12,818 -- Distributions from net long-term capital gains 1,574,122 748,463 198,609 =================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2008 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $ 8,988,444 $ 3,778,712 $ 2,803,986 $ 1,968,527 Distributions from net ordinary income ** 10,212 -- 3,297 -- Distributions from net long-term capital gains 882,398 532,929 248,931 177,807 ==================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At February 28, 2009, the Funds' last tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Expiration: February 28, 2016 $ -- $ 34,858 $ -- February 28, 2017 337,855 336,297 457,422 -------------------------------------------------------------------------------- Total $ 337,855 $ 371,155 $ 457,422 ================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------- Expiration: February 28, 2016 $ -- $ -- $ 14,045 $ -- February 28, 2017 1,309,059 40,911 522,972 52,530 ------------------------------------------------------------------------------------------------- Total $ 1,309,059 $ 40,911 $ 537,017 $ 52,530 =================================================================================================
The Funds have elected to defer net realized losses from investments incurred from November 1, 2008 through February 28, 2009, the Funds' last tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the current fiscal year: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Post-October capital losses $ 1,819,630 $ 1,315,963 $ 140,530 ================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------- Post-October capital losses $ 444,066 $ 161,562 $ 194,805 $ -- ==============================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual 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. Nuveen Investments 73 | Notes to | Financial Statements (Unaudited) (continued) The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets of each Fund as follows: MICHIGAN QUALITY INCOME (NUM) MICHIGAN PREMIUM INCOME (NMP) OHIO QUALITY INCOME (NUO) AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE ------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 =============================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) OHIO DIVIDEND ADVANTAGE (NXI) OHIO DIVIDEND ADVANTAGE 2 (NBJ) OHIO DIVIDEND ADVANTAGE 3 (NVJ) AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE ------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 =============================================================================== The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund net assets managed as stated in the following table. As of August 31, 2009, the complex-level fee rate was .1936%. The complex-level fee schedule is as follows: COMPLEX-LEVEL NET ASSETS EFFECTIVE RATE AT BREAKPOINT LEVEL BREAKPOINT LEVEL (1) ------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 =============================================================================== (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate daily managed net assets of all Nuveen funds, with such daily managed net assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fee components, daily managed net assets include assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed net assets in certain circumstances. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. 74 Nuveen Investments For the first ten years of Ohio Dividend Advantage's (NXI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Ohio Dividend Advantage (NXI) for any portion of its fees and expenses beyond March 31, 2011. For the first ten years of Michigan Dividend Advantage's (NZW) and Ohio Dividend Advantage 2's (NBJ) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Michigan Dividend Advantage (NZW) and Ohio Dividend Advantage 2 (NBJ) for any portion of their fees and expenses beyond September 30, 2011. For the first ten years of Ohio Dividend Advantage 3's (NVJ) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Ohio Dividend Advantage 3 (NVJ) for any portion of its fees and expenses beyond March 31, 2012. 8. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Statement of Financial Accounting Standards No. 166 (SFAS No. 166) During June 2009, the Financial Accounting Standards Board issued SFAS No. 166, "Accounting for Transfers of Financial Assets - an amendment of SFAS No. 140." The objective of SFAS No. 166 is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor's continuing involvement, if any, in transferred financial assets. SFAS No. 166 is effective as of the beginning of each reporting entity's first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. The recognition and measurement provisions of SFAS No. 166 must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of SFAS No. 166 should be applied to transfers that occurred both before and after the effective date of SFAS No. 166. At this time, management is evaluating the implications of SFAS No. 166 and the impact it will have on the financial statement amounts and disclosures, if any. Nuveen Investments 75 | Notes to | Financial Statements (Unaudited) (continued) 9. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on October 1, 2009, to shareholders of record on September 15, 2009, as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Dividend per share $.0620 $.0610 $. 0620 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Dividend per share $.0680 $.0640 $.0630 $.0670 ================================================================================ Financial Accounting Standards Board Statement of Financial Accounting Standards No. 165 (SFAS No. 165) In May 2009, the Financial Accounting Standards Board issued SFAS No. 165 "Subsequent Events." SFAS No. 165 requires an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. SFAS No. 165 is intended to establish general standards of accounting and for disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. SFAS No. 165 requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date - that is, whether that date represents the date the financial statements were issued or were available to be issued. SFAS No. 165 is effective for interim and annual periods ending after June 15, 2009. The Funds have performed an evaluation of subsequent events through October 27, 2009, which is the date the financial statements were issued. Preferred Shares On October 1, 2009, Ohio Quality Income (NUO), noticed for redemption $4.0 million of its outstanding Preferred shares, at liquidation value. The Fund will be using tender option bonds (TOBs) to finance the partial redemption of its Preferred shares. 76 Nuveen Investments | Financial | Highlights(Unaudited) Nuveen Investments 77 | Financial | Highlights(Unaudited) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS -------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL ---------------------------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) ---------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ 13.55 $ .46 $ .74 $ (.02) $ -- $ 1.18 2009(b) 14.13 .54 (.60) (.13) -- (.19) Year Ended 7/31: 2008 14.96 .93 (.71) (.24) (.04) (.06) 2007 15.17 .94 (.10) (.25) (.02) .57 2006 15.88 .96 (.52) (.21) (.02) .21 2005 15.51 .98 .57 (.13) (.01) 1.41 2004 15.14 1.01 .49 (.06) (.01) 1.43 MICHIGAN PREMIUM INCOME (NMP) ----------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 13.26 .45 .64 (.02) -- 1.07 2009(b) 13.87 .52 (.63) (.12) -- (.23) Year Ended 7/31: 2008 14.65 .89 (.69) (.23) (.02) (.05) 2007 14.92 .90 (.12) (.23) (.02) .53 2006 15.55 .91 (.40) (.18) (.02) .31 2005 15.19 .93 .50 (.11) -- 1.32 2004 15.24 .97 .38 (.04) (.03) 1.28 ======================================================================================================================= LESS DISTRIBUTIONS -------------------------------------------- NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE --------------------------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) --------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ (.35) $ -- $ (.35) $ -- $ 14.38 $ 12.68 2009(b) (.39) -- (.39) -- 13.55 10.61 Year Ended 7/31: 2008 (.67) (.10) (.77) -- 14.13 12.32 2007 (.71) (.07) (.78) -- 14.96 14.16 2006 (.81) (.11) (.92) -- 15.17 14.41 2005 (.93) (.11) (1.04) -- 15.88 15.67 2004 (.95) (.11) (1.06) -- 15.51 15.20 MICHIGAN PREMIUM INCOME (NMP) --------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) (.33) -- (.33) -- 14.00 12.26 2009(b) (.38) -- (.38) -- 13.26 10.44 Year Ended 7/31: 2008 (.66) (.07) (.73) -- 13.87 12.38 2007 (.71) (.09) (.80) -- 14.65 13.80 2006 (.79) (.15) (.94) -- 14.92 14.27 2005 (.91) (.05) (.96) -- 15.55 15.68 2004 (.94) (.39) (1.33) -- 15.19 14.37 =====================================================================================================================
PREFERRED SHARES AT END OF PERIOD -------------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE -------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $87,325 $25,000 $72,899 2009(b) 90,900 25,000 68,651 Year Ended 7/31: 2008 94,000 25,000 69,023 2007 94,000 25,000 71,607 2006 94,000 25,000 72,270 2005 94,000 25,000 74,441 2004 94,000 25,000 73,169 MICHIGAN PREMIUM INCOME (NMP) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 53,700 25,000 75,056 2009(b) 56,000 25,000 70,730 Year Ended 7/31: 2008 56,000 25,000 72,986 2007 56,000 25,000 75,695 2006 56,000 25,000 76,612 2005 56,000 25,000 78,783 2004 56,000 25,000 77,468 ================================================================================ 78 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT ---------------------------- ------------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++ ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010(c) 23.08% 8.78% $167,312 1.27%*** 1.25%*** 6.64%*** 2009(b) (10.68) (1.27) 158,717 1.33*** 1.33*** 6.92*** Year Ended 7/31: 2008 (7.77) (.43) 165,525 1.29 1.25 6.28 2007 3.64 3.77 175,244 1.26 1.22 6.12 2006 (2.28) 1.41 177,734 1.23 1.23 6.17 2005 9.94 9.28 185,900 1.22 1.22 6.13 2004 5.17 9.52 181,114 1.22 1.22 6.44 MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010(c) 20.92 8.19 107,520 1.28*** 1.25*** 6.63*** 2009(b) (12.57) (1.62) 102,434 1.32*** 1.32*** 6.83*** Year Ended 7/31: 2008 (5.09) (.36) 107,488 1.38 1.23 6.16 2007 2.16 3.59 113,558 1.38 1.22 5.97 2006 (3.12) 2.06 115,611 1.20 1.20 6.03 2005 16.03 8.80 120,475 1.19 1.19 5.97 2004 5.46 8.56 117,529 1.20 1.20 6.28 ==================================================================================================================================== RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ------------------------------------------------ EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE --------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) --------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.27%*** 1.25%*** 6.64%*** 5% 2009(b) 1.33*** 1.33*** 6.93*** 3 Year Ended 7/31: 2008 1.28 1.24 6.29 18 2007 1.24 1.20 6.14 13 2006 1.22 1.22 6.19 18 2005 1.21 1.21 6.14 8 2004 1.22 1.22 6.45 15 MICHIGAN PREMIUM INCOME (NMP) --------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.28*** 1.25*** 6.63*** 5 2009(b) 1.31*** 1.31*** 6.83*** 3 Year Ended 7/31: 2008 1.36 1.22 6.18 20 2007 1.37 1.21 5.98 15 2006 1.19 1.19 6.03 6 2005 1.17 1.17 5.98 11 2004 1.19 1.19 6.30 28 ===================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the seven months ended February 28, 2009. (c) For the six months ended August 31, 2009. See accompanying notes to financial statements. Nuveen Investments 79 | Financial | Highlights (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ----------------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ 12.69 $ .46 $ 1.09 $ (.02) $ -- $1.53 2009(b) 13.68 .54 (1.00) (.13) --*** (.59) Year Ended 7/31: 2008 14.73 .94 (.95) (.24) (.02) (.27) 2007 14.94 .95 (.14) (.24) --*** .57 2006 15.44 .97 (.40) (.20) -- .37 2005 14.82 .98 .63 (.11) -- 1.50 2004 14.30 .99 .47 (.05) -- 1.41 =================================================================================================================================== LESS DISTRIBUTIONS -------------------------------------- NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE ----------------------------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) ----------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ (.34) $ -- $ (.34) $ -- $ 13.88 $ 12.22 2009(b) (.39) (.01) (.40) -- 12.69 10.77 Year Ended 7/31: 2008 (.71) (.07) (.78) -- 13.68 13.10 2007 (.77) (.01) (.78) -- 14.73 15.10 2006 (.87) -- (.87) -- 14.94 15.81 2005 (.89) -- (.89) .01 15.44 16.79 2004 (.89) -- (.89) -- 14.82 14.65 =======================================================================================================================
PREFERRED SHARES AT END OF PERIOD ------------------------------------------ AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE -------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $14,275 $25,000 $75,220 2009(b) 14,925 25,000 68,946 Year Ended 7/31: 2008 16,000 25,000 69,195 2007 16,000 25,000 72,561 2006 16,000 25,000 73,161 2005 16,000 25,000 74,720 2004 16,000 25,000 72,716 ================================================================================ 80 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ----------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT ----------------------- -------------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++ ----------------------------------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 16.89% 12.18% $ 28,675 1.37%**** 1.34%**** 6.67%**** 2009(b) (14.48) (4.20) 26,236 1.48**** 1.48**** 7.03**** Year Ended 7/31: 2008 (8.10) (1.95) 28,285 1.39 1.34 6.23 2007 .46 3.79 30,439 1.38 1.35 5.89 2006 (.47) 2.46 30,823 1.31 1.31 5.92 2005 21.34 10.41 31,821 1.27 1.27 5.93 2004 2.99 10.00 30,538 1.28 1.28 6.13 ============================================================================================================================= RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ---------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE ---------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) ---------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.14%**** 1.11%**** 6.91%**** 4% 2009(b) 1.20**** 1.20**** 7.31**** 4 Year Ended 7/31: 2008 1.05 1.01 6.57 18 2007 .96 .93 6.31 19 2006 .83 .83 6.40 8 2005 .81 .81 6.39 8 2004 .81 .81 6.60 9 ====================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Rounds to less than $.01 per share. **** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the seven months ended February 28, 2009. (c) For the six months ended August 31, 2009. See accompanying notes to financial statements. Nuveen Investments 81 | Financial | Highlights (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ---------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL ----------------------------------------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ 14.56 $ .49 $ .87 $(.02) $ -- $1.34 2009(b) 15.04 .56 (.52) (.13) -- (.09) Year Ended 7/31: 2008 15.81 .95 (.71) (.25) (.02) (.03) 2007 16.01 .96 (.12) (.26) (.01) .57 2006 16.58 .98 (.42) (.22) (.01) .33 2005 16.21 1.02 .49 (.12) -- 1.39 2004 16.17 1.07 .25 (.06) (.01) 1.25 OHIO DIVIDEND ADVANTAGE (NXI) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 13.83 .47 .78 (.02) -- 1.23 2009(b) 14.25 .54 (.46) (.12) -- (.04) Year Ended 7/31: 2008 14.87 .93 (.55) (.23) (.03) .12 2007 15.02 .94 (.09) (.24) (.01) .60 2006 15.55 .96 (.40) (.21) -- .35 2005 15.05 1.00 .57 (.11) -- 1.46 2004 14.66 1.04 .40 (.06) -- 1.38 ============================================================================================================================= LESS DISTRIBUTIONS ---------------------------------------- NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE ---------------------------------------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ (.37) $ -- $ (.37) $ -- $ 15.53 $ 14.56 2009(b) (.39) -- (.39) -- 14.56 12.90 Year Ended 7/31: 2008 (.67) (.07) (.74) -- 15.04 13.40 2007 (.73) (.04) (.77) -- 15.81 14.43 2006 (.85) (.05) (.90) -- 16.01 15.83 2005 (.98) (.04) (1.02) -- 16.58 16.96 2004 (1.00) (.21) (1.21) -- 16.21 16.30 OHIO DIVIDEND ADVANTAGE (NXI) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) (.36) -- (.36) -- 14.70 13.65 2009(b) (.38) -- (.38) -- 13.83 12.10 Year Ended 7/31: 2008 (.65) (.09) (.74) -- 14.25 12.77 2007 (.72) (.03) (.75) -- 14.87 14.39 2006 (.85) (.03) (.88) -- 15.02 15.05 2005 (.96) -- (.96) -- 15.55 17.00 2004 (.97) (.02) (.99) -- 15.05 14.80 ==================================================================================================================================
PREFERRED SHARES AT END OF PERIOD ------------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE -------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $ 77,000 $ 25,000 $ 74,148 2009(b) 77,000 25,000 71,066 Year Ended 7/31: 2008 77,000 25,000 72,603 2007 77,000 25,000 75,017 2006 77,000 25,000 75,658 2005 77,000 25,000 77,267 2004 77,000 25,000 75,855 OHIO DIVIDEND ADVANTAGE (NXI) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 31,000 25,000 75,300 2009(b) 31,000 25,000 72,332 Year Ended 7/31: 2008 31,000 25,000 73,770 2007 31,000 25,000 75,898 2006 31,000 25,000 76,400 2005 31,000 25,000 78,123 2004 31,000 25,000 76,324 ================================================================================ 82 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ----------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT -------------------- -------------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES(000) INTEREST++(a) INTEREST++(a) INCOME++ ---------------------------------------------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(C) 15.96% 9.35% $151,377 1.24%*** 1.24%*** 6.61%*** 2009(b) (0.71) (0.49) 141,883 1.35*** 1.31*** 6.77*** Year Ended 7/31: 2008 (2.18) (.26) 146,617 1.42 1.26 6.08 2007 (4.25) 3.56 154,052 1.29 1.19 5.94 2006 (1.36) 2.10 156,026 1.20 1.20 6.05 2005 10.25 8.70 160,982 1.19 1.19 6.16 2004 2.59 7.87 156,634 1.20 1.20 6.46 OHIO DIVIDEND ADVANTAGE (NXI) ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(C) 16.03 9.03 62,371 1.23*** 1.23*** 6.51*** 2009(b) (2.08) (0.15) 58,692 1.35*** 1.31*** 6.64*** Year Ended 7/31: 2008 (6.21) .83 60,475 1.39 1.24 6.06 2007 .52 4.02 63,114 1.32 1.22 5.85 2006 (6.53) 2.32 63,735 1.21 1.21 5.85 2005 21.79 9.87 65,873 1.21 1.21 6.00 2004 10.70 9.54 63,642 1.20 1.20 6.41 ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ------------------------------------------------------ EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE ---------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ---------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.24%*** 1.24%*** 6.61%*** 3% 2009(b) 1.34*** 1.30*** 6.78*** 10 Year Ended 7/31: 2008 1.41 1.25 6.09 14 2007 1.27 1.17 5.95 15 2006 1.19 1.19 6.06 9 2005 1.18 1.18 6.17 14 2004 1.19 1.19 6.47 31 OHIO DIVIDEND ADVANTAGE (NXI) ---------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.07*** 1.07*** 6.67*** 3 2009(b) 1.11*** 1.08*** 6.88*** 10 Year Ended 7/31: 2008 1.11 .96 6.34 17 2007 .96 .86 6.21 14 2006 .76 .76 6.30 6 2005 .76 .76 6.46 14 2004 .75 .75 6.86 10 ==============================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the seven months ended February 28, 2009. (c) For the six months ended August 31, 2009. See accompanying notes to financial statements. Nuveen Investments 83 | Financial | Highlights (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL ------------------------------------------------------------------------------------------------------------------------ OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010(c) $ 13.06 $ .46 $ .84 $ (.02) $ -- $ 1.28 2009(b) 13.87 .54 (.84) (.13) -- (.43) Year Ended 7/31: 2008 14.64 .93 (.73) (.25) (.02) (.07) 2007 14.81 .92 (.10) (.25) (.01) .56 2006 15.37 .93 (.41) (.22) (.01) .29 2005 14.85 .95 .61 (.12) -- 1.44 2004 14.31 .99 .53 (.06) -- 1.46 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010(c) 13.97 .49 .80 (.02) -- 1.27 2009(b) 14.33 .55 (.39) (.12) -- .04 Year Ended 7/31: 2008 14.92 .95 (.56) (.23) (.02) .14 2007 15.06 .96 (.08) (.25) (.01) .62 2006 15.57 .95 (.45) (.22) -- .28 2005 14.93 .95 .69 (.11) -- 1.53 2004 14.48 .96 .51 (.06) (.01) 1.40 ======================================================================================================================== LESS DISTRIBUTIONS ------------------------------------- NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE ------------------------------------------------------------------------------------------------------------------------ OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010(c) $ (.34) $ -- $ (.34) $ -- $ 14.00 $ 12.83 2009(b) (.38) -- (.38) -- 13.06 11.58 Year Ended 7/31: 2008 (.64) (.06) (.70) -- 13.87 12.37 2007 (.69) (.04) (.73) -- 14.64 13.80 2006 (.80) (.05) (.85) -- 14.81 14.70 2005 (.90) (.02) (.92) -- 15.37 15.48 2004 (.92) -- (.92) -- 14.85 14.70 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010(c) (.37) -- (.37) -- 14.87 13.72 2009(b) (.40) -- (.40) -- 13.97 11.95 Year Ended 7/31: 2008 (.67) (.06) (.73) -- 14.33 12.91 2007 (.72) (.04) (.76) -- 14.92 14.35 2006 (.79) -- (.79) -- 15.06 14.75 2005 (.87) (.02) (.89) -- 15.57 15.90 2004 (.88) (.07) (.95) -- 14.93 14.30 ========================================================================================================================
PREFERRED SHARES AT END OF PERIOD --------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE -------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) $23,100 $25,000 $72,308 2009(b) 23,100 25,000 69,107 Year Ended 7/31: 2008 24,000 25,000 70,090 2007 24,000 25,000 72,598 2006 24,000 25,000 73,169 2005 24,000 25,000 74,935 2004 24,000 25,000 73,196 OHIO DIVIDEND ADVANTAGE 3 (NVJ) -------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 16,500 25,000 73,591 2009(b) 16,500 25,000 70,647 Year Ended 7/31: 2008 16,500 25,000 71,881 2007 16,500 25,000 73,778 2006 16,500 25,000 74,252 2005 16,500 25,000 75,918 2004 16,500 25,000 73,800 ================================================================================ 84 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT -------------------- ----------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++(A) INCOME++ ------------------------------------------------------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 13.95% 9.94% $ 43,712 1.31%*** 1.31%*** 6.58%*** 2009(b) (3.09) (3.01) 40,755 1.46*** 1.42*** 6.91*** Year Ended 7/31: 2008 (5.46) (.51) 43,286 1.46 1.30 6.10 2007 (1.26) 3.80 45,694 1.41 1.31 5.76 2006 .35 1.96 46,242 1.27 1.27 5.71 2005 11.63 9.90 47,937 1.23 1.23 5.71 2004 9.60 10.33 46,268 1.25 1.25 6.13 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 18.07 9.23 32,070 1.33*** 1.33*** 6.58*** 2009(b) (4.29) .36 30,127 1.46*** 1.42*** 6.63*** Year Ended 7/31: 2008 (5.13) .95 30,941 1.47 1.32 6.05 2007 2.32 4.06 32,194 1.41 1.31 5.85 2006 (2.33) 1.87 32,506 1.28 1.28 5.76 2005 17.60 10.40 33,606 1.27 1.27 5.68 2004 5.86 9.72 32,208 1.28 1.28 5.87 =============================================================================================================================== RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ----------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE ---------------------------------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) ---------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.07%*** 1.07%*** 6.81%*** 2% 2009(b) 1.19*** 1.15*** 7.18*** 5 Year Ended 7/31: 2008 1.12 .96 6.43 16 2007 1.00 .90 6.17 14 2006 .78 .78 6.19 8 2005 .77 .77 6.17 14 2004 .79 .79 6.60 15 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ---------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010(c) 1.09*** 1.09*** 6.82*** 6 2009(b) 1.14*** 1.11*** 6.94*** 9 Year Ended 7/31: 2008 1.10 .95 6.43 19 2007 .96 .86 6.30 19 2006 .81 .81 6.23 2 2005 .81 .81 6.14 3 2004 .81 .81 6.34 8 ==========================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the seven months ended February 28, 2009. (c) For the six months ended August 31, 2009. See accompanying notes to financial statements. Nuveen Investments 85 Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "Independent Board Members"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May Meeting"), the Boards of Trustees or Directors (as the case may be) (each a "Board" and each Trustee or Director, a "Board Member") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "Advisory Agreement") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute performance, fee and expense information for the Funds as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable) of the Funds, the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries other than Winslow Capital Management, Inc. ("Winslow Capital"), which was recently acquired in December 2008), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating 86 Nuveen Investments the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line. In reviewing the services provided and the initiatives undertaken during the past year, the Independent Board Members recognized the severe market turmoil experienced in the capital markets during recent periods, including sustained periods of high volatility, credit disruption and government intervention. The Independent Board Members considered NAM's efforts, expertise and other actions taken to address matters as they arose that impacted the Funds. The Independent Board Members recognized the role of the Investment Services group which, among other things, monitors the various positions throughout the Nuveen fund complex to identify and address any systematic risks. In addition, the Capital Markets Committee of NAM provides a multi-departmental venue for developing new policies to mitigate any risks. The Independent Board Members further recognized NAM's continuous review of the Nuveen funds' investment strategies and mandates in seeking to continue to refine and improve the investment process for the funds, particularly in light of market conditions. With respect to closed-end funds that issued auction rate preferred shares ("ARPs") or that otherwise utilize leverage, the Independent Board Members noted, in particular, NAM's efforts in refinancing the preferred shares of such funds frozen by the collapse of the auction rate market and managing leverage during a period of rapid market declines, particularly for the non-equity funds. Such efforts included negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs, liquidating portfolio securities during difficult times to meet leverage ratios, and seeking alternative forms of debt and other leverage that may over time reduce financing costs associated with ARPs and enable the funds that have issued ARPs to restore liquidity to ARPs holders. The Independent Board Members also noted Nuveen's continued commitment and efforts to keep investors and financial advisers informed as to its progress with the ARPs through, among other things, conference calls, emails, press releases, information posted on its website, and telephone calls and in-person meetings with financial advisers. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a Nuveen Investments 87 Annual Investment Management Agreement Approval Process (continued) 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 provide timely information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining websites; and providing educational seminars. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. 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, preserve stability, and reward performance but not provide an incentive for taking undue risks. 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. Given the importance of compliance, the Independent Board Members considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the investment performance of each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent provider of mutual fund data as well as recognized and/or customized benchmarks (as applicable). The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group and recognized and/or customized benchmarks (as applicable) for the quarter-, one-, three- and five-year periods (as applicable) ending December 31, 2008 and for the same periods (as applicable) ending March 31, 2009. The Independent Board Members also reviewed performance information of the Nuveen municipal funds managed by NAM in the aggregate ranked by peer group and the performance of such funds, in the aggregate, relative to their benchmark. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. 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 further considered the performance of the Funds in the context of the volatile 88 Nuveen Investments market conditions during the past year, and their impact on various asset classes and the portfolio management of the Funds. Based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. Fees and Expenses The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "Peer Universe") and in certain cases, to a more focused subset of funds in the Peer Universe (the "Peer Group"). The Independent Board Members further reviewed data regarding the construction of the applicable Peer Universe and Peer Group. 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 asset level of a fund relative to peers, the size and particular composition of the Peer Universe or Peer Group, the investment objectives of the peers, expense anomalies, changes in the funds comprising the Peer Universe or Peer Group from year to year, levels of reimbursement and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. In addition, the Independent Board Members also considered, among other things, the differences in the use and type of leverage compared to the peers. The Independent Board Members also considered the differences in the states reflected in the respective Peer Group. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees and net total expense ratio were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. Comparisons with the Fees of Other Clients The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such other clients include NAM's municipal separately managed accounts. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited Nuveen Investments 89 Annual Investment Management Agreement Approval Process (continued) to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. Profitability of Nuveen In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow Capital) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2008. In addition, the Independent Board Members reviewed information regarding the financial results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009. 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 also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition 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 their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. 90 Nuveen Investments In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. In this regard, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. While economies of scale result when costs can be spread over a larger asset base, the Independent Board Members also recognized that the asset levels generally declined in 2008 due to, among other things, the market downturn. Accordingly, for funds with a reduction in assets under management, advisory fee levels may have increased as breakpoints in the fee schedule were no longer surpassed. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex generally are reduced as the assets in the fund complex reach certain levels. 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. Generally, the complex-wide pricing reduces Nuveen's revenue because total complex fund assets have consistently grown in prior years. As noted, however, total fund assets declined in 2008 resulting in a smaller downward adjustment of revenues due to complex-wide pricing compared to the prior year. Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. Nuveen Investments 91 Annual Investment Management Agreement Approval Process (continued) E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk. In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. 92 Nuveen Investments 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 Nuveen Investments 93 Reinvest Automatically Easily and Conveniently (continued) 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. 94 Nuveen Investments Glossary of Terms Used in this Report o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction. o 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. o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. Nuveen Investments 95 Glossary of Terms Used in this Report (continued) o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common 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 common shares outstanding. Fund NAVs are calculated at the end of each business day. o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. 96 Nuveen Investments Other Useful Information BOARD OF DIRECTORS/TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/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 Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table. COMMON SHARES PREFERRED SHARES FUND REPURCHASED REDEEMED NUM 76,200 143 NMP 42,300 92 NZW 900 26 NUO -- -- NXI -- -- NBJ -- -- NVJ -- -- Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 97 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, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $128 billion of assets on June 30, 2009. 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 o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Distributed by Nuveen Investments, LLC It's not what you earn 333 West Wacker Drive it's what you keep(R) Chicago, IL 60606 www.nuveen.com ESA-C 0809D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. (a) See Portfolio of Investments in Item 1. (b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)* TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR UNIT) PROGRAMS PROGRAMS MARCH 1-31, 2009 900 $10.05 900 204,100 APRIL 1-30, 2009 0 0 204,100 MAY 1-31, 2009 0 0 204,100 JUNE 1-30, 2009 0 0 204,100 JULY 1-31, 2009 0 0 204,100 AUGUST 1-31, 2008 0 0 204,100 TOTAL 900
* The registrant's repurchase program, which authorized the repurchase of 205,000 shares, was announced August 7, 2008. Any repurchases made by the registrant pursuant to the program were made through open-market transactions. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors or Trustees implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: See Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Michigan Dividend Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy (Vice President and Secretary) Date: November 6, 2009 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: November 6, 2009 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: November 6, 2009 -------------------------------------------------------------------