N-CSRS 1 file001.txt NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3 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 811-10637 --------------------- Nuveen Ohio Dividend Advantage Municipal Fund 3 ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger 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: July 31 ------------------ Date of reporting period: January 31, 2007 ------------------ 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. SEMIANNUAL REPORT January 31, 2007 Nuveen Investments Municipal Closed-End Funds 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 Photo of: Woman and man at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Woman Photo of: Man and child NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. 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. ------------------------------ DELIVERY DIRECT TO YOUR E-MAIL INBOX ------------------------------ IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. For some time, I've used these letters to remind you that municipal bonds can be an important building block in a well balanced investment portfolio. In addition to providing attractive tax-free monthly income, a municipal bond investment like your Fund may help you achieve and benefit from greater portfolio diversification. Portfolio diversification is a recognized way to try to reduce some of the risk that comes with investing. For more information about this important investment strategy, I encourage you to contact your personal financial advisor. "IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER PORTFOLIO DIVERSIFICATION." We also are pleased to be able to offer you a choice concerning how you receive your shareholder reports and other Fund information. As an alternative to mailed copies, you can sign up to receive future Fund reports and other Fund information by e-mail and the Internet. The inside front cover of this report contains information on how you can sign up. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board March 15, 2007 Nuveen Investments Municipal Closed-End Funds (NUM, NMP, NZW, NUO, NXI, NBJ, NVJ) Portfolio Manager's COMMENTS Portfolio manager Cathryn Steeves reviews key investment strategies and the six-month performance of these seven Nuveen Funds. Cathryn, who joined Nuveen in 1996, has managed the Ohio Funds since 2004 and the Michigan Funds since 2005. WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED JANUARY 31, 2007? During this six-month period, we saw very little change in short-term interest rates, while longer-term rates continued to decline, resulting in further flattening of the yield curve. In this environment, we continued to emphasize a disciplined approach to duration1 management and yield curve positioning. As part of this approach, our purchases for the Funds' portfolios focused mainly on attractively priced bonds in the 25-year to 30-year part of the yield curve. We believed that bonds in this range of the curve generally offered better value and reward opportunities more commensurate with their risk levels. To help us maintain the Funds' durations within our preferred strategic range, we also selectively sold holdings with shorter durations, including pre-refunded bonds, in all of the Funds. While municipal issuance in Michigan during this six-month period was basically the same as that of the same period a year earlier, Ohio saw a 57% increase in supply for this period, compared with a 14% increase nationwide. Since both Michigan and Ohio are relatively high-quality states, much of the new supply was highly rated and/or insured, and the majority of our new purchases for the Michigan Funds were insured credits. In the Michigan Funds, our purchases focused on health care, water and sewer, and appropriation bonds. In NUM, we also added zero coupon bonds, which were put into place to both lengthen fund duration and increase distributable income. In addition to lower-rated health care credits, the Ohio Funds also purchased higher education bonds. 1 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. 4 During this period, we purchased inverse floating rate trusts, a type of derivative financial instrument, in NMP and all four of the Ohio Funds. The inverse floaters had the benefit of increasing the Funds' distributable income and bringing their durations closer to our preferred strategic target. In past shareholder reports, we have also discussed the use of hedging as part of our duration management strategies. As of January 31, 2007, NZW continued to use forward interest rate swaps, which were put in place as part of our yield curve strategies. In addition, NVJ continued to use both forward interest rate swaps for yield curve management and U.S. Treasury note futures contracts to help bring the Fund's duration closer to our preferred strategic target. HOW DID THE FUNDS PERFORM? Individual results for these Michigan and Ohio Funds, as well as relevant index and peer group information, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 1/31/07 MICHIGAN FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NUM 3.69% 4.29% 6.70% 6.43% -------------------------------------------------------------------------------- NMP 3.32% 4.41% 6.21% 6.60% -------------------------------------------------------------------------------- NZW 3.73% 4.79% 7.55% NA -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index2 3.06% 4.29% 5.11% 5.71% -------------------------------------------------------------------------------- Lipper Michigan Municipal Debt Funds Average3 3.87% 5.12% 6.60% 6.23% -------------------------------------------------------------------------------- OHIO FUNDS -------------------------------------------------------------------------------- NUO 3.33% 4.25% 6.36% 6.32% -------------------------------------------------------------------------------- NXI 3.44% 4.41% 7.17% NA -------------------------------------------------------------------------------- NBJ 3.55% 4.32% 7.25% NA -------------------------------------------------------------------------------- NVJ 3.48% 4.14% NA NA -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index2 3.06% 4.29% 5.11% 5.71% -------------------------------------------------------------------------------- Lipper Other States Municipal Debt Funds Average4 3.75% 4.98% 6.96% 6.57% -------------------------------------------------------------------------------- *Six-month returns are cumulative; returns for one year, five years, and ten years 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. 2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Lehman Brothers Municipal Bond Index do not reflect any expenses. 3 The Lipper Michigan Municipal Debt Funds category average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 7; 1 year, 7; 5 years, 5; and 10 years, 4. Fund and Lipper returns assume reinvestment of dividends. 4 The Lipper Other State Municipal Debt Funds category average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 46; 1 year, 46; 5 years, 27; and 10 years, 18. Fund and Lipper returns assume reinvestment of dividends. 5 For the six months ended January 31, 2007, the cumulative returns on net asset value (NAV) for all of the Michigan and Ohio Funds outperformed the return on the Lehman Brothers Municipal Bond Index. All of the Michigan Funds trailed the average return for the Lipper Michigan peer group. For the Ohio Funds, all four Funds lagged the return of Lipper Other States peer group average. Shareholders of the Ohio Funds should note that the performance of the Lipper Other States category represents the overall average of returns for funds from 10 different states with a wide variety of municipal market conditions, making direct comparisons less meaningful. Factors that influenced the Funds' returns during this period included duration management, allocations to lower-rated credits (or credit risk), sector weightings, advance refunding activity,5 and the use of financial leverage. As the yield curve continued to flatten over the course of this period, bonds with shorter maturities generally underperformed longer bonds. Overall, the Funds were well positioned in terms of duration, with limited exposure to the shortest maturities and good exposure to those parts of the yield curve that performed best during this period. However, the durations of NMP and NVJ were shorter than our preferred strategic target. As previously mentioned, we worked to address this situation by purchasing inverse floaters for NMP and maintaining the hedge on NVJ during this period. With bonds rated BBB or lower and non-rated bonds generally outperforming other credit quality sectors during this period, all of the Funds benefited from their allocations of lower-quality credits. The performance of this sector was largely the result of investor demand for the higher yields typically associated with lower-quality bonds, which drove up their value. In particular, NZW's overall heavier weighting in lower-rated securities helped its performance, while NMP and NUO had the smallest exposures to lower credit quality categories among these Funds, detracting from their six-month performance. Among the lower-rated holdings making contributions to the Funds' total returns for this period were health care (including hospitals) credits and industrial development revenue bonds, which ranked as the top performing revenue sectors in the Lehman Brothers Municipal Bond Index. While tobacco bonds also performed well during this period as their credit spreads narrowed, only NVJ had a large enough exposure (4%) to this sector 5 Advance refundings, also known as pre-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. 6 to significantly benefit from the performance of these bonds. NBJ, NUO, and NXI each allocated just over 1% of their portfolios to tobacco bonds, while the Michigan Funds did not hold any of these bonds. In the Ohio Funds, exposure to the housing sector was also a positive contributor, as was the Funds' underexposure to state-issued general obligation bonds, which underperformed for the period. In the Michigan Funds, we continued to see positive contributions from advance refunding activity, which benefited these three Funds through price appreciation and enhanced credit quality. However, the Michigan and Ohio Funds' holdings of older, previously pre-refunded bonds tended to underperform the general municipal market, due primarily to their shorter effective maturities and higher credit quality. While we continue to look for opportunities to trim the Funds' positions in these older pre-refunded bonds, we have taken a measured approach to selling these holdings due to their higher embedded yields. Another factor in the six-month performance of these Funds, especially relative to that of the unleveraged Lehman Brothers Municipal Bond Index, was the use of financial leverage. While leverage can add volatility to a Fund's NAV and share price, this strategy can also provide opportunities for additional income and total return for common shareholders. The Funds' leveraging strategy positively impacted their results over this period. 7 Dividend and Share Price INFORMATION As previously noted, all of the Funds in this report use leverage to potentially enhance opportunities for additional income for common shareholders. While the Funds' leveraging strategy continued to provide incremental income, the extent of this benefit was reduced during this period due to higher short-term interest rates, which increased the Funds' borrowing costs. The Funds' income streams were also impacted as the proceeds from older, higher-yielding bonds that matured or were called were reinvested into bonds currently available in the market, which generally offered lower yields. These factors resulted in one monthly dividend reduction in NUM, NVJ , NXI, and NZW, and two in NBJ and NUO over the six-month period ended January 31, 2007. The dividend of NMP remained stable during this period. Due to normal portfolio activity, common shareholders of the Funds received capital gains and net ordinary income distributions at the end of December 2006, as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NUM $0.0734 -- -------------------------------------------------------------------------------- NMP $0.0926 -- -------------------------------------------------------------------------------- NZW $0.0078 -- -------------------------------------------------------------------------------- NUO $0.0414 $0.0007 -------------------------------------------------------------------------------- NXI $0.0311 -- -------------------------------------------------------------------------------- NBJ $0.0435 $0.0004 -------------------------------------------------------------------------------- NVJ $0.0283 $0.0073 -------------------------------------------------------------------------------- These distributions, which were generated by bond calls and the sale of appreciated securities, had a slight negative impact on the Funds' earning power per common share and were a minor factor in the per share dividend reductions noted above. 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 8 investment income as dividends to shareholders. As of January 31, 2007, NUM, NMP and NZW had positive UNII balances for both financial statement and, based on our best estimates, for tax purposes. All of the Ohio Funds had negative UNII balances for financial statement purposes and positive UNII balances, based on our best estimates, for tax purposes. At the end of the reporting period, the Funds' share prices were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 1/31/07 6-MONTH AVERAGE PREMIUM/DISCOUNT PREMIUM/DISCOUNT -------------------------------------------------------------------------------- NUM -3.92% -5.06% -------------------------------------------------------------------------------- NMP -2.47% -2.47% -------------------------------------------------------------------------------- NZW +1.46% +2.76% -------------------------------------------------------------------------------- NUO -2.98% -2.84% -------------------------------------------------------------------------------- NXI -0.33% -1.88% -------------------------------------------------------------------------------- NBJ -3.41% -2.71% -------------------------------------------------------------------------------- NVJ -1.97% -3.15% -------------------------------------------------------------------------------- 9 Nuveen Michigan Quality Income Municipal Fund, Inc. NUM Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 85% AA 7% A 3% BBB 4% BB or Lower 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.0685 Mar 0.065 Apr 0.065 May 0.065 Jun 0.062 Jul 0.062 Aug 0.062 Sep 0.059 Oct 0.059 Nov 0.059 Dec 0.059 Jan 0.059 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 15.29 15.18 15.28 15.27 15.3 15.49 15.29 15.18 15.12 15.12 15.1401 15.28 15.29 15.21 15.31 15.21 15.42 15.41 15.53 15.5 15.58 15.45 15.47 15.54 15.51 15.63 15.65 15.5 15.5 15.6 15.57 15.5 15.53 15.41 15.35 15.27 15.28 15.15 15.25 15.2 15.15 15.11 15.2 15.15 15.25 15.17 15.1 15.1 14.92 14.9 14.9 14.85 14.99 14.85 14.8028 14.77 14.7 14.8 14.6 14.74 14.72 14.72 14.81 15.01 15.26 15.22 15.1 15.25 15.18 15.43 15.13 15 14.97 15.05 15.03 14.96 14.75 14.85 14.89 14.88 14.81 14.87 14.8 14.77 14.96 15 14.81 14.8 14.63 14.75 14.76 14.59 14.46 14.41 14.41 14.47 14.49 14.44 14.5 14.48 14.24 14.2 14.23 14.34 14.35 14.29 14.48 14.58 14.63 14.69 14.5 14.4499 14.42 14.38 14.38 14.38 14.26 14.25 14.31 14.25 14.2 14.16 14.25 14.26 14.35 14.41 14.47 14.41 14.47 14.49 14.47 14.5 14.66 14.74 14.65 14.51 14.51 14.68 14.73 14.79 14.8 14.7401 14.76 14.75 14.74 14.74 14.86 14.93 14.9 14.95 14.9 14.71 14.78 14.97 14.82 14.77 14.73 14.73 14.67 14.69 14.69 14.67 14.79 14.77 14.78 14.75 14.88 14.82 14.76 14.76 14.77 14.81 14.83 14.77 14.8 14.7 14.78 14.65 14.65 14.57 14.64 14.65 14.57 14.61 14.61 14.58 14.54 14.54 14.6 14.54 14.55 14.52 14.55 14.63 14.53 14.49 14.6058 14.67 14.61 14.73 14.68 14.65 14.63 14.67 14.68 14.7 14.66 14.64 14.69 14.63 14.67 14.76 14.8101 14.87 14.86 14.84 14.83 14.81 14.81 14.89 14.97 14.89 14.76 14.67 14.63 14.59 14.55 14.55 14.5 14.48 14.4901 14.47 14.53 14.53 14.51 14.53 14.54 14.65 14.64 14.63 14.55 14.58 14.62 14.57 14.64 14.58 14.66 14.6664 14.75 14.731 14.75 14.7 14.68 1/31/07 14.7 FUND SNAPSHOT ------------------------------------ Common Share Price $14.70 ------------------------------------ Common Share Net Asset Value $15.30 ------------------------------------ Premium/(Discount) to NAV -3.92% ------------------------------------ Market Yield 4.82% ------------------------------------ Taxable-Equivalent Yield1 6.97% ------------------------------------ Net Assets Applicable to Common Shares ($000) $179,235 ------------------------------------ Average Effective Maturity on Securities (Years) 14.05 ------------------------------------ Leverage-Adjusted Duration 8.16 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 5.03% 3.69% ------------------------------------ 1-Year 1.78% 4.29% ------------------------------------ 5-Year 5.35% 6.70% ------------------------------------ 10-Year 5.81% 6.43% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 28.9% ------------------------------------ U.S. Guaranteed 27.4% ------------------------------------ Tax Obligation/Limited 11.6% ------------------------------------ Health Care 8.6% ------------------------------------ Utilities 8.2% ------------------------------------ Water and Sewer 6.3% ------------------------------------ Other 9.0% ------------------------------------ 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 30.8%. 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 2006 of $0.0734 per share. 10 Nuveen Michigan Premium Income Municipal Fund, Inc. NMP Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 79% AA 14% A 4% BBB 2% BB or Lower 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.0665 Mar 0.063 Apr 0.063 May 0.063 Jun 0.0605 Jul 0.0605 Aug 0.0605 Sep 0.0605 Oct 0.0605 Nov 0.0605 Dec 0.0605 Jan 0.0605 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 14.99 15.1 15.07 15.15 15.06 15.17 15.15 15.16 15.3 15.14 15.06 15.04 15.04 14.96 15.11 15.12 15.1008 15.11 15.4 15.49 15.5 15.37 15.21 14.6 14.66 14.74 14.73 14.8 15.05 15.29 15.03 15.01 14.8 14.94 14.85 14.8 15 14.95 14.95 14.8 14.69 14.62 14.61 14.5 14.74 14.46 14.45 14.4 14.39 14.29 14.43 14.38 14.34 14.2 14.3 14.3 14.55 14.25 14.48 14.6 14.86 14.86 14.82 14.8501 14.87 14.76 14.83 14.9 14.62 14.95 14.8 14.94 14.7 14.7 14.98 14.85 14.9 14.88 14.85 14.9 15.08 14.82 14.8 14.92 15.15 15.11 14.95 14.7 14.61 14.7 14.73 14.7 14.7 14.58 14.46 14.5 14.43 14.32 14.42 14.2 14.26 14.13 14.24 14.17 14.45 14.66 14.8 14.75 14.79 14.84 14.88 14.84 14.72 14.5 14.45 14.5 14.5 14.45 14.25 14.19 14.15 14.11 14.1 14.05 14.2 14.27 14.32 14.35 14.39 14.48 14.39 14.21 14.22 14.28 14.26 14.28 14.37 14.48 14.42 14.42 14.43 14.53 14.52 14.71 14.7 14.7 14.7 14.68 14.7 14.68 14.74 14.66 14.58 14.7 14.61 14.69 14.67 14.67 14.67 14.79 14.72 14.6 14.57 14.63 14.63 14.69 15 14.72 14.8 14.8 14.85 14.94 14.95 14.95 14.95 14.91 14.84 14.75 14.6 14.6 14.61 14.6001 14.65 14.8 14.9 14.85 14.76 14.79 14.8 14.85 14.8509 14.89 14.89 14.82 14.72 14.77 14.86 15 14.96 14.98 14.9 15 14.97 14.9794 14.86 14.91 14.87 14.93 14.9 14.83 14.895 14.85 14.86 14.97 14.9994 15.15 15.06 15.1 15.21 15.06 15.08 14.92 14.83 14.8 14.75 14.7 14.81 14.8 14.8 15.0599 14.91 14.86 14.75 14.75 14.7801 15.05 15.04 14.95 14.9701 14.96 14.95 14.91 14.9 14.86 14.86 14.83 14.75 14.7 14.7 14.66 14.66 14.7103 14.64 1/31/07 14.59 FUND SNAPSHOT ------------------------------------ Common Share Price $14.59 ------------------------------------ Common Share Net Asset Value $14.96 ------------------------------------ Premium/(Discount) to NAV -2.47% ------------------------------------ Market Yield 4.98% ------------------------------------ Taxable-Equivalent Yield1 7.20% ------------------------------------ Net Assets Applicable to Common Shares ($000) $115,928 ------------------------------------ Average Effective Maturity on Securities (Years) 15.21 ------------------------------------ Leverage-Adjusted Duration 7.18 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 5.40% 3.32% ------------------------------------ 1-Year 3.67% 4.41% ------------------------------------ 5-Year 6.70% 6.21% ------------------------------------ 10-Year 7.83% 6.60% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 27.5% ------------------------------------ U.S. Guaranteed 20.9% ------------------------------------ Tax Obligation/Limited 13.5% ------------------------------------ Water and Sewer 12.6% ------------------------------------ Utilities 9.2% ------------------------------------ Health Care 7.2% ------------------------------------ Other 9.1% ------------------------------------ 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 30.8%. 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 2006 of $0.0926 per share. 11 Nuveen Michigan Dividend Advantage Municipal Fund NZW Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 74% AA 9% A 7% BBB 6% BB or Lower 2% N/R 2% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.0745 Mar 0.0705 Apr 0.0705 May 0.0705 Jun 0.0675 Jul 0.0675 Aug 0.0675 Sep 0.0645 Oct 0.0645 Nov 0.0645 Dec 0.0645 Jan 0.0645 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 15.72 15.6 15.95 15.95 15.93 15.93 16.4 16.15 16.15 16 16 16.25 16.2 16.12 16.15 16.15 16.11 16.15 16.15 16.22 16.59 16.25 16.26 16.1 16 16 16 15.97 15.85 15.85 15.85 15.86 15.86 15.68 15.42 15.32 15.32 15.31 15.3199 15.5 15.5 15.73 15.73 15.65 15.76 15.76 15.76 15.76 15.8 15.8 15.8 15.9 16 16 16 16 15.9 16 16.09 16.09 16.06 16.06 16.1 16 15.9 15.9 16 15.88 15.57 15.57 15.49 15.4 15.4 15.47 15.36 15.19 15.25 15.3 15.25 15.29 15.39 15.39 15.39 15.53 15.6 15.65 15.77 15.55 15.65 15.4108 15.4108 15.4108 15.45 15.45 15.45 15.36 15.36 15.26 15.4 15.44 15.4 15.4 15.32 15.5 15.5 15.59 15.59 15.52 15.58 15.48 15.48 15.55 15.58 15.5 15.37 15.45 15.61 15.6 15.57 15.5 15.64 15.64 15.7 15.8 15.8 15.81 15.92 15.85 15.84 15.84 15.6 15.6699 15.524 15.524 15.68 15.64 15.912 15.912 15.78 15.78 15.85 15.95 15.84 15.8501 15.85 15.97 16 16 15.9999 15.9999 15.9585 15.88 15.88 15.88 15.85 15.85 15.78 15.9 15.9 15.85 15.81 15.85 15.95 15.92 16.09 15.85 15.92 15.78 15.84 15.84 15.75 15.65 15.6 15.55 15.55 15.44 15.44 15.55 15.8 15.79 15.8 15.8 15.8 15.75 15.75 15.75 15.5 15.5 15.44 15.44 15.5 15.55 15.33 15.38 15.39 15.39 15.39 15.43 15.5 15.78 15.78 15.36 15.36 15.32 15.3301 15.33 15.26 15.3 15.25 15.25 15.277 15.24 15.33 15.33 15.39 15.38 15.39 15.46 15.55 15.59 15.76 15.6 15.53 15.53 15.46 15.37 15.5 15.67 15.38 15.29 15.56 15.54 15.54 15.54 15.63 15.7 15.7 15.73 15.83 15.83 15.66 15.64 15.64 15.64 15.64 15.64 15.46 15.46 15.44 15.44 15.31 15.33 15.26 1/31/07 15.32 FUND SNAPSHOT ------------------------------------ Common Share Price $15.32 ------------------------------------ Common Share Net Asset Value $15.10 ------------------------------------ Premium/(Discount) to NAV 1.46% ------------------------------------ Market Yield 5.05% ------------------------------------ Taxable-Equivalent Yield1 7.30% ------------------------------------ Net Assets Applicable to Common Shares ($000) $31,178 ------------------------------------ Average Effective Maturity on Securities (Years) 15.67 ------------------------------------ Leverage-Adjusted Duration 7.48 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -0.59% 3.73% ------------------------------------ 1-Year 3.32% 4.79% ------------------------------------ 5-Year 7.14% 7.55% ------------------------------------ Since Inception 6.16% 6.86% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 25.8% ------------------------------------ Tax Obligation/General 19.2% ------------------------------------ Health Care 11.7% ------------------------------------ Water and Sewer 11.6% ------------------------------------ Utilities 10.4% ------------------------------------ Tax Obligation/Limited 8.3% ------------------------------------ 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 30.8%. 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 2006 of $0.0078 per share. 12 Nuveen Ohio Quality Income Municipal Fund, Inc. NUO Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 75% AA 14% A 6% BBB 4% N/R 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.073 Mar 0.069 Apr 0.069 May 0.069 Jun 0.0655 Jul 0.0655 Aug 0.0655 Sep 0.0625 Oct 0.0625 Nov 0.0625 Dec 0.0595 Jan 0.0595 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 16.9 16.88 16.8 17.03 17.03 17.09 17.1 17.1 17.01 16.87 16.89 16.85 17.15 17.06 16.9 16.95 17.12 16.99 16.95 17 16.77 16.35 16.6999 16.51 16.52 16.54 16.38 16.35 16.38 16.39 16.47 16.5 16.4 16.44 16.25 16.35 16.27 16.25 16.36 16.35 16.29 16.37 16.6 16.57 16.47 16.18 16.1 16 16.08 16.2 16.09 16.08 16.19 16.06 16.06 16.11 16.2 16.219 16.19 16.24 16.27 16.27 16.28 16.3 16.24 16.11 16.1 16.08 16.05 15.98 15.9699 15.6 15.57 15.88 15.76 15.8501 16.1 16.11 16.2 16.2 16.25 16.3001 16.14 16.24 16.04 16.15 16.11 16.12 16 15.81 15.8 15.71 15.56 15.45 15.47 15.43 15.3 15.1 15.13 15.12 15.04 15.05 15.03 14.97 15.06 15.22 15.28 15.27 15.35 15.37 15.34 15.25 15.06 15.31 15.31 15.26 15.2 15.33 15.34 15.66 15.65 15.77 15.72 15.77 15.9 15.83 15.8401 15.92 15.92 16.13 15.99 16.0499 16.15 16.08 16.03 16 16 15.99 16.15 15.97 16.03 16.05 16 16.06 16.04 16.03 16.14 16.18 16.15 16.2199 15.91 15.85 15.77 15.99 15.97 15.91 15.73 15.56 15.55 15.52 15.48 15.48 15.46 15.56 15.52 15.5 15.71 15.62 15.59 15.59 15.66 15.59 15.55 15.5601 15.56 15.58 15.5301 15.54 15.54 15.61 15.62 15.64 15.62 15.62 15.65 15.67 15.68 15.73 15.64 15.65 15.61 15.79 15.9 15.94 15.92 15.95 15.89 15.95 15.91 15.97 15.86 15.88 15.93 15.9 15.81 15.87 15.71 15.67 15.6 15.58 15.65 15.77 15.72 15.8 15.86 15.95 15.97 15.96 15.97 15.93 15.91 15.81 15.72 15.7 15.61 15.74 15.74 15.73 15.68 15.75 15.78 15.69 15.65 15.65 15.9 15.85 15.86 15.89 15.9 15.91 15.86 15.89 15.82 15.75 15.74 15.73 15.71 15.7799 15.81 15.75 15.71 15.74 15.67 1/31/07 15.65 FUND SNAPSHOT ------------------------------------ Common Share Price $15.65 ------------------------------------ Common Share Net Asset Value $16.13 ------------------------------------ Premium/(Discount) to NAV -2.98% ------------------------------------ Market Yield 4.56% ------------------------------------ Taxable-Equivalent Yield1 6.74% ------------------------------------ Net Assets Applicable to Common Shares ($000) $157,194 ------------------------------------ Average Effective Maturity on Securities (Years) 14.53 ------------------------------------ Leverage-Adjusted Duration 7.57 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 1.48% 3.33% ------------------------------------ 1-Year -3.26% 4.25% ------------------------------------ 5-Year 3.79% 6.36% ------------------------------------ 10-Year 5.34% 6.32% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 25.5% ------------------------------------ Tax Obligation/General 22.8% ------------------------------------ Health Care 12.0% ------------------------------------ Education and Civic Organizations 11.7% ------------------------------------ Tax Obligation/Limited 7.0% ------------------------------------ Utilities 4.7% ------------------------------------ Housing/Multifamily 4.3% ------------------------------------ Other 12.0% ------------------------------------ 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 32.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2006 of $0.0421 per share. 13 Nuveen Ohio Dividend Advantage Municipal Fund NXI Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 68% AA 17% A 8% BBB 6% N/R 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.071 Mar 0.0675 Apr 0.0675 May 0.0675 Jun 0.0635 Jul 0.0635 Aug 0.0635 Sep 0.0605 Oct 0.0605 Nov 0.0605 Dec 0.0605 Jan 0.0605 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 16.85 16.8501 16.55 16.4 16.24 16.14 16.13 16.4 16.3 16.6 16.46 16.5 16.77 16.56 16.7 16.48 16.75 16.701 16.84 17 16.79 16.6 16.35 16.35 16.35 16.35 16.24 16.3 16.2001 16.21 16.3 16.3 16.3 16.23 16.21 16.23 16 16.49 16.3 16.36 16.6 16.4 16.2 16.15 15.96 16.03 15.9708 16.01 16.22 16.08 16.229 15.86 15.83 15.93 15.88 15.85 16.08 16.1 15.59 15.67 15.8 15.8 15.62 15.68 15.55 15.6 15.6 15.71 15.54 15.54 15.32 15.45 15.6 15.5 15.35 15.6 15.6 15.65 15.65 15.42 15.49 15.66 15.33 15.3 15.46 15.52 15.52 15.36 15.28 15.28 15.23 15.22 15.01 15.07 14.96 14.95 14.9 14.66 14.6 14.6 14.48 14.48 14.33 14.35 14.41 14.38 14.44 14.35 14.45 14.5001 14.47 14.6 14.41 14.57 14.48 14.4 14.33 14.4 14.4 14.6999 14.5 14.61 14.75 14.85 15.1 15.05 15.12 15.22 15.36 15.42 15.39 15.4 15.4 15.45 15.6 15.59 15.49 15.79 15.95 15.35 14.95 15.12 14.92 14.9 14.94 15.15 14.89 14.82 14.89 14.98 14.89 14.7 14.6 14.57 14.5799 14.68 14.61 14.63 14.74 14.8487 14.75 14.87 14.94 15.1574 14.96 14.93 15.06 15.02 15.06 15.06 15.02 15.23 15.15 15.31 15 15 15.08 15 15.09 15.01 15.02 14.9999 15.05 15.06 14.8 14.73 14.77 14.89 14.87 14.93 14.8852 15.13 15.24 15.24 15.19 15.12 15.14 15.01 15.01 14.97 15.06 14.91 14.82 14.74 14.7 14.79 14.7603 14.74 14.78 14.76 14.9 14.84 14.828 14.94 14.98 15.06 15 15 15.03 15.06 15.11 14.88 14.9 15 14.95 14.91 14.91 14.99 14.99 14.95 14.92 14.77 14.81 14.81 14.8 14.76 14.68 14.72 14.73 14.79 14.84 14.75 14.83 14.7 14.7897 14.76 14.8 14.8 14.96 14.86 14.89 15 15.09 1/31/07 15.09 FUND SNAPSHOT ------------------------------------ Common Share Price $15.09 ------------------------------------ Common Share Net Asset Value $15.14 ------------------------------------ Premium/(Discount) to NAV -0.33% ------------------------------------ Market Yield 4.81% ------------------------------------ Taxable-Equivalent Yield1 7.10% ------------------------------------ Net Assets Applicable to Common Shares ($000) $64,253 ------------------------------------ Average Effective Maturity on Securities (Years) 14.04 ------------------------------------ Leverage-Adjusted Duration 7.26 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 2.95% 3.44% ------------------------------------ 1-Year -8.39% 4.41% ------------------------------------ 5-Year 5.88% 7.17% ------------------------------------ Since Inception 5.99% 7.08% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 29.7% ------------------------------------ Tax Obligation/General 18.0% ------------------------------------ Education and Civic Organizations 15.5% ------------------------------------ Tax Obligation/Limited 8.0% ------------------------------------ Health Care 7.5% ------------------------------------ Utilities 6.0% ------------------------------------ Housing/Multifamily 3.9% ------------------------------------ Other 11.4% ------------------------------------ 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 32.3%. 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 2006 of $0.0311 per share. 14 Nuveen Ohio Dividend Advantage Municipal Fund 2 NBJ Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 71% AA 12% A 9% BBB 7% N/R 1% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.0665 Mar 0.0665 Apr 0.0665 May 0.0665 Jun 0.062 Jul 0.062 Aug 0.062 Sep 0.059 Oct 0.059 Nov 0.059 Dec 0.0565 Jan 0.0565 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 16.45 16.4 16.3 16.06 16.06 16.16 16.06 16.21 16.25 16.16 16.16 16.25 16.16 16.12 16.12 15.72 15.76 15.77 15.69 15.82 15.53 15.1 15.2 15.35 15.25 15.46 15.5 15.08 15.25 15.25 15.57 15.45 15.45 15.25 15.6 15.2 15.3 15.17 15.2 15.35 15.21 15.11 15.26 15.26 15.25 15.2 15.05 15.25 15.6 15.45 15.32 15.4001 15.25 15.5 15.25 15.5 15.5 15.51 15.79 15.65 15.46 15.46 15.55 15.65 15.4 15.09 15.18 15.3228 15.8 15.35 15.25 15.44 15.25 15.45 15.55 15.55 15.5 15.05 15.35 15.35 15.6 15.4 15.4 15.28 15.35 15.15 15.16 15.15 14.95 14.95 14.83 14.83 14.86 14.7 14.71 14.49 14.16 14.2 14.3 14.33 14.7 14.7 14.3 14.27 14.34 14.3 14.3 14.17 14.09 14.01 14.12 14.13 14.1 14.14 14.1 14.1 14.06 14.15 14.22 14.45 14.45 14.6 14.58 14.7 14.7 14.7 14.73 14.95 14.8999 14.98 14.98 14.9 14.9 14.7 14.7 15 14.9 15 15.3 15.25 15.25 15.07 15.01 15.04 14.99 14.9 14.72 14.88 15.12 15.1 15.15 14.81 14.7 14.69 14.92 14.91 14.83 14.7 14.78 14.63 14.61 14.58 15 15 15.3624 15.13 15.09 15.09 14.9943 14.9943 14.93 14.83 14.77 14.77 14.66 14.65 14.5 14.4 14.48 14.59 14.63 14.6 14.67 14.67 14.67 14.67 14.54 14.52 14.61 14.8 14.75 14.78 14.81 14.82 14.67 14.75 14.7 14.66 14.66 14.71 14.62 14.69 14.62 14.6606 14.51 14.55 14.58 14.58 14.58 14.6 14.5 14.51 14.49 14.53 14.47 14.5 14.57 14.55 14.65 14.61 14.46 14.49 14.45 14.48 14.45 14.55 14.52 14.58 14.49 14.47 14.43 14.41 14.54 14.54 14.5508 14.5401 14.4801 14.55 14.48 14.36 14.39 14.3 14.25 14.28 14.28 14.29 14.33 14.35 14.39 14.35 14.23 14.26 14.4 1/31/07 14.43 FUND SNAPSHOT ------------------------------------ Common Share Price $14.43 ------------------------------------ Common Share Net Asset Value $14.94 ------------------------------------ Premium/(Discount) to NAV -3.41% ------------------------------------ Market Yield 4.70% ------------------------------------ Taxable-Equivalent Yield1 6.94% ------------------------------------ Net Assets Applicable to Common Shares ($000) $46,643 ------------------------------------ Average Effective Maturity on Securities (Years) 14.69 ------------------------------------ Leverage-Adjusted Duration 7.68 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 0.83% 3.55% ------------------------------------ 1-Year -7.56% 4.32% ------------------------------------ 5-Year 5.12% 7.25% ------------------------------------ Since Inception 5.05% 6.71% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 26.0% ------------------------------------ Tax Obligation/General 21.5% ------------------------------------ Health Care 15.5% ------------------------------------ Tax Obligation/Limited 10.0% ------------------------------------ Education and Civic Organizations 9.5% ------------------------------------ Utilities 6.0% ------------------------------------ Consumer Staples 5.9% ------------------------------------ Other 5.6% ------------------------------------ 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 32.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2006 of $0.0439 per share. 15 Nuveen Ohio Dividend Advantage Municipal Fund 3 NVJ Performance OVERVIEW As of January 31, 2007 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 70% AA 11% A 11% BBB 8% Bar Chart: 2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.0655 Mar 0.0655 Apr 0.0655 May 0.0655 Jun 0.0615 Jul 0.0615 Aug 0.0615 Sep 0.0595 Oct 0.0595 Nov 0.0595 Dec 0.0595 Jan 0.0595 Line Chart: SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 2/01/06 15.83 15.85 15.8 16 15.83 15.9 15.8101 15.8101 15.81 15.8 15.9 16 15.91 15.8 16 15.44 15.58 15.44 15.35 15.55 15.2508 15.35 15.1 15.41 15.09 15.3 15.35 15.35 15.12 15.12 15.16 15.18 15.18 15.09 15.54 15.45 15.45 15.45 15.55 15.55 15.76 15.65 15.85 15.85 15.85 15.85 15.65 15.75 15.6 15.4 15.38 15.75 15.5999 15.5 15.57 15.67 15.77 15.77 15.8 15.8 16.05 16.05 16.05 16.05 16.05 15.85 15.83 15.83 15.83 15.7 15.97 15.87 15.9 15.9 15.65 15.5 15.55 15.29 15.29 15.19 15.35 15.4 15.3 15.25 15.33 15.4 15.45 15.08 15.05 15.06 15.01 14.85 14.8 14.68 14.5 14.49 14.49 14.27 14.36 14.4 14.46 14.34 13.9 13.95 14.33 14.38 14.37 14.09 14.14 14.02 14.03 14.05 14 14.05 14.05 14.1 14.11 14.12 14.12 14.1 14.12 14.27 14.33 14.43 14.67 14.75 14.69 14.69 14.69 14.7 14.79 14.87 14.87 14.92 14.78 14.96 14.68 14.94 15.06 15.06 15.06 14.95 15.02 15.08 14.95 14.95 14.95 15.04 15.0301 15.36 15.29 15.0196 15 15.01 14.9 14.96 14.84 14.85 14.85 14.86 14.86 14.73 14.73 14.75 14.72 14.72 14.77 14.81 14.69 14.69 14.69 14.79 14.82 14.82 14.78 14.68 14.9 14.9 14.82 14.77 14.76 14.75 14.72 14.7 14.7 14.72 14.72 14.6899 14.93 14.79 14.88 14.86 14.93 14.99 14.85 14.81 14.79 14.82 14.83 14.9 14.8 14.8699 14.8 14.88 14.93 14.96 14.96 14.92 14.92 14.88 14.83 14.84 14.9 14.9 14.95 14.95 14.83 14.89 14.91 14.89 14.98 14.9 14.88 14.88 14.86 14.85 14.89 14.86 14.85 14.91 14.88 14.64 14.64 14.64 14.64 14.67 14.65 14.69 14.69 14.68 14.76 14.72 14.65 14.74 14.73 14.78 14.87 14.84 14.84 14.76 14.8 14.8501 14.89 1/31/07 14.89 FUND SNAPSHOT ------------------------------------ Common Share Price $14.89 ------------------------------------ Common Share Net Asset Value $15.19 ------------------------------------ Premium/(Discount) to NAV -1.97% ------------------------------------ Market Yield 4.80% ------------------------------------ Taxable-Equivalent Yield1 7.09% ------------------------------------ Net Assets Applicable to Common Shares ($000) $32,780 ------------------------------------ Average Effective Maturity on Securities (Years) 13.56 ------------------------------------ Leverage-Adjusted Duration 7.61 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 3.66% 3.48% ------------------------------------ 1-Year -1.02% 4.14% ------------------------------------ Since Inception 5.64% 7.05% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 31.8% ------------------------------------ Tax Obligation/General 22.4% ------------------------------------ Tax Obligation/Limited 13.5% ------------------------------------ Health Care 8.9% ------------------------------------ Education and Civic Organizations 6.5% ------------------------------------ Consumer Staples 4.3% ------------------------------------ Other 12.6% ------------------------------------ 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 32.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2006, of $0.0356 per share. 16 Shareholder MEETING REPORT The shareholder meeting was held in the offices of Nuveen Investments on November 14, 2006.
NUM NMP NZW ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 10,819,143 -- 7,140,205 -- 2,018,290 -- Withhold 169,193 -- 124,377 -- 29,990 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ==================================================================================================================================== Lawrence H. Brown For 10,824,472 -- 7,130,859 -- 2,010,440 -- Withhold 163,864 -- 133,723 -- 37,840 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ==================================================================================================================================== Jack B. Evans For 10,834,515 -- 7,144,314 -- 2,018,290 -- Withhold 153,821 -- 120,268 -- 29,990 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ==================================================================================================================================== William C. Hunter For 10,841,215 -- 7,145,350 -- 2,016,871 -- Withhold 147,121 -- 119,232 -- 31,409 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ==================================================================================================================================== David J. Kundert For 10,831,693 -- 7,144,314 -- 2,017,691 -- Withhold 156,643 -- 120,268 -- 30,589 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ==================================================================================================================================== William J. Schneider For -- 3,601 -- 2,206 -- 613 Withhold -- 22 -- 10 -- 24 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,623 -- 2,216 -- 637 ==================================================================================================================================== Timothy R. Schwertfeger For -- 3,601 -- 2,206 -- 613 Withhold -- 22 -- 10 -- 24 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,623 -- 2,216 -- 637 ==================================================================================================================================== Judith M. Stockdale For 10,832,073 -- 7,141,164 -- 2,018,291 -- Withhold 156,263 -- 123,418 -- 29,989 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ==================================================================================================================================== Eugene S. Sunshine For 10,840,256 -- 7,144,786 -- 2,016,870 -- Withhold 148,080 -- 119,796 -- 31,410 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,988,336 -- 7,264,582 -- 2,048,280 -- ====================================================================================================================================
17 Shareholder MEETING REPORT (continued)
NUO NXI NBJ ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 8,902,959 -- 4,096,606 -- 3,019,575 -- Withhold 148,891 -- 32,181 -- 32,859 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ==================================================================================================================================== Lawrence H. Brown For 8,887,448 -- 4,096,475 -- 3,014,175 -- Withhold 164,402 -- 32,312 -- 38,259 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ==================================================================================================================================== Jack B. Evans For 8,906,329 -- 4,098,633 -- 3,017,656 -- Withhold 145,521 -- 30,154 -- 34,778 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ==================================================================================================================================== William C. Hunter For 8,904,887 -- 4,099,133 -- 3,016,656 -- Withhold 146,963 -- 29,654 -- 35,778 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ==================================================================================================================================== David J. Kundert For 8,905,333 -- 4,097,133 -- 3,007,221 -- Withhold 146,517 -- 31,654 -- 45,213 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ==================================================================================================================================== William J. Schneider For -- 2,898 -- 1,189 -- 935 Withhold -- 49 -- 23 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,947 -- 1,212 -- 935 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,898 -- 1,189 -- 935 Withhold -- 49 -- 23 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,947 -- 1,212 -- 935 ==================================================================================================================================== Judith M. Stockdale For 8,908,269 -- 4,097,737 -- 3,013,006 -- Withhold 143,581 -- 31,050 -- 39,428 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ==================================================================================================================================== Eugene S. Sunshine For 8,907,004 -- 4,099,133 -- 3,016,656 -- Withhold 144,846 -- 29,654 -- 35,778 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,051,850 -- 4,128,787 -- 3,052,434 -- ====================================================================================================================================
18
NVJ ------------------------------------------------------------------------------------------------------------------------------------ Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 2,078,317 -- Withhold 22,978 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ==================================================================================================================================== Lawrence H. Brown For 2,062,475 -- Withhold 38,820 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ==================================================================================================================================== Jack B. Evans For 2,079,617 -- Withhold 21,678 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ==================================================================================================================================== William C. Hunter For 2,076,577 -- Withhold 24,718 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ==================================================================================================================================== David J. Kundert For 2,063,317 -- Withhold 37,978 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ==================================================================================================================================== William J. Schneider For -- 658 Withhold -- 1 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 659 ==================================================================================================================================== Timothy R. Schwertfeger For -- 658 Withhold -- 1 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 659 ==================================================================================================================================== Judith M. Stockdale For 2,067,477 -- Withhold 33,818 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ==================================================================================================================================== Eugene S. Sunshine For 2,077,617 -- Withhold 23,678 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 2,101,295 -- ====================================================================================================================================
19 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.9% (4.6% OF TOTAL INVESTMENTS) $ 700 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- $ 702,394 Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35 1,380 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA 1,395,028 Series 1998, 5.000%, 10/01/23 - AMBAC Insured 1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,800,743 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 AAA 1,565,565 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 AAA 1,043,910 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 AAA 1,175,623 Series 2004A, 5.000%, 10/01/22 - MBIA Insured Wayne State University, Michigan, General Revenue Bonds, Series 1999: 3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,581,366 1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,034,860 ------------------------------------------------------------------------------------------------------------------------------------ 11,810 Total Education and Civic Organizations 12,299,489 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.0% (8.6% OF TOTAL INVESTMENTS) 2,900 Dearborn Hospital Finance Authority, Michigan, Hospital 5/07 at 101.00 AAA 2,933,321 Revenue Bonds, Oakwood Obligated Group, Series 1995A, 5.875%, 11/15/25 - FGIC Insured 204 Michigan State Hospital Finance Authority, Collateralized Loan, No Opt. Call N/R 204,239 Detroit Medical Center, Series 2001, 7.360%, 3/01/07 2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 2,723,193 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 BBB+ 1,043,610 Refunding Bonds, Memorial Healthcare Center Obligated Group, Series 1999, 5.875%, 11/15/21 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A: 3,385 5.750%, 5/15/17 - MBIA Insured 5/09 at 101.00 AAA 3,543,283 500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 523,770 500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 507,420 Chelsea Community Hospital, Series 2005, 5.000%, 5/15/37 500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 508,960 Marquette General Hospital, Series 2005A, 5.000%, 5/15/26 2,500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,611,025 Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 - MBIA Insured 1,000 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 1,047,380 Memorial Hospital Corporation Revenue Bonds, Series 2006, 5.375%, 6/01/26 5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 5,729,624 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured 2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 1,897,204 Series 1991, 0.000%, 12/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 22,884 Total Health Care 23,273,029 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.0% (2.0% OF TOTAL INVESTMENTS) 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA 2,916,018 Obligation Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,055 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA $ 1,075,235 Revenue Bonds, Series 1999A, 5.300%, 10/01/37 - MBIA Insured (Alternative Minimum Tax) 1,300 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 1,345,487 Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,030 Total Housing/Multifamily 5,336,740 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.5% (0.4% OF TOTAL INVESTMENTS) 1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,030,680 Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 1,032,820 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 200 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+ 202,700 Refunding Bonds, Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 ------------------------------------------------------------------------------------------------------------------------------------ 1,200 Total Long-Term Care 1,235,520 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.0% (0.7% OF TOTAL INVESTMENTS) 1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,789,778 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 43.4% (28.9% OF TOTAL INVESTMENTS) 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA 1,041,100 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 2,601,125 3,200 5.000%, 5/01/29 5/11 at 100.00 AA 3,296,608 1,000 Belding School District, Ionia, Kent and Montcalm Counties, 5/08 at 100.00 AAA 1,010,190 Michigan, General Obligation Refunding Bonds, Series 1998, 5.000%, 5/01/26 - AMBAC Insured 1,200 Birmingham, Michigan, General Obligation Bonds, 10/12 at 100.50 AAA 1,267,224 Series 2002, 5.000%, 10/01/20 1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA 1,421,059 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 2,258,671 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 AAA 1,053,450 Counties, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 - MBIA Insured 2,000 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 2,366,120 General Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured 1,195 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 1,276,846 5.250%, 4/01/24 - AMBAC Insured 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 3,863,757 3,000 0.000%, 12/01/26 No Opt. Call AAA 1,241,100 5,305 0.000%, 12/01/29 No Opt. Call AAA 1,890,649 1,400 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA 1,484,994 General Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,122,819 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 2,056,325 Series 2006, 5.000%, 5/01/25 - FSA Insured 1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AAA 1,870,836 Series 2003A, 5.000%, 6/01/26 - MBIA Insured 21 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,505 Lincoln Consolidated School District, Washtenaw and Wayne 5/16 at 100.00 AAA $ 2,662,064 Counties, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 - MBIA Insured 2,810 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 2,967,950 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 2,100 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 2,227,743 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 4,286,400 Program, Series 2003A, 5.250%, 5/01/20 2,500 Montrose School District, Michigan, School Building and Site No Opt. Call AAA 2,992,450 Bonds, Series 1997, 6.000%, 5/01/22 - MBIA Insured 1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,135,321 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 1,044,100 Obligation Bonds, Series 2002, 5.125%, 9/01/22 1,595 Oakridge Public Schools, Muskegon County, Michigan, 5/15 at 100.00 AAA 1,691,657 General Obligation Bonds, Series 2005, 5.000%, 5/01/22 - MBIA Insured 4,340 Plymouth-Canton Community School District, Wayne and 5/14 at 100.00 AAA 4,556,175 Washtenaw Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/26 - FGIC Insured 4,200 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 4,813,704 Series 2001A, 5.500%, 7/01/20 - MBIA Insured 3,175 South Redford School District, Wayne County, Michigan, 5/15 at 100.00 AAA 3,337,909 General Obligation Bonds, School Building and Site, Series 2005, 5.000%, 5/01/30 - MBIA Insured 1,655 Southfield Library Building Authority, Michigan, General 5/15 at 100.00 AAA 1,747,001 Obligation Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured 2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 AAA 2,440,575 Obligation Bonds, Series 2006, 5.000%, 5/01/19 - MBIA Insured 5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,213,950 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 - MBIA Insured 3,350 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 3,575,288 Obligation Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured 1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 1,985,285 Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 83,250 Total Tax Obligation/General 77,800,445 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.5% (11.6% OF TOTAL INVESTMENTS) 1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,080,840 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 AAA 1,400,616 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured 4,440 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 AAA 4,711,373 5.000%, 10/15/36 - FGIC Insured 60 Michigan Municipal Bond Authority, Local Government 5/07 at 100.00 Aa3 60,130 Loan 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 AAA 2,252,745 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 - MBIA Insured 10/13 at 100.00 AAA 5,378,663 5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,267,199 3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,733,380 5.250%, 10/01/21 - FSA Insured 915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 1,085,977 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 4,505,859 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,800 Wayne County, Dearborn Heights, Michigan, Tax Increment 10/10 at 100.00 AAA $ 1,852,056 Financing Authority, Limited Tax General Obligation Bonds, Police and Courthouse Facility, Series 2001A, 5.000%, 10/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 29,395 Total Tax Obligation/Limited 31,328,838 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.5% (0.4% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 AAA 1,042,000 Bonds, Series 2002, 5.250%, 7/01/21 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 41.2% (27.4% OF TOTAL INVESTMENTS) (4) 1,850 Allegan County Public School District, Michigan, General 5/10 at 100.00 AAA 1,953,397 Obligation Bonds, Series 2000, 5.600%, 5/01/20 (Pre-refunded 5/01/10) - FSA Insured 2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,296,916 Michigan, General Obligation Bonds, Series 1999I, 6.000%, 5/01/29 (Pre-refunded 5/01/09) - FGIC Insured 1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,032,780 General Obligation Bonds, Series 1999, 5.250%, 5/01/25 (Pre-refunded 5/01/09) - FGIC Insured 2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,127,140 Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC 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 AAA 3,699,540 770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 815,784 730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 773,406 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A: 4,025 5.000%, 7/01/24 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 AAA 4,301,155 1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 Aaa 1,602,915 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1997A: 950 5.500%, 7/01/20 (Pre-refunded 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 966,606 1,000 5.000%, 7/01/22 (Pre-refunded 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,015,430 1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,066,990 Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,097,640 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded 5/01/09) - FSA Insured 1,085 Freeland Community School District, Saginaw, Midland and 5/10 at 100.00 AA (4) 1,134,129 Bay Counties, Michigan, General Obligation Bonds, Series 2000, 5.250%, 5/01/19 (Pre-refunded 5/01/10) 1,235 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,265,270 Mortgage Hospital Revenue Bonds, Portage Health System Inc., Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) - MBIA Insured 3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 3,730,545 Spectrum Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11) 2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA (4) 2,115,580 General Obligation Bonds, Series 2002, 5.000%, 5/01/24 (Pre-refunded 5/01/12) 3,880 Mayville Community Schools, Tuscola County, Michigan, 11/14 at 100.00 AAA 4,181,166 General 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) 270,875 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) - MBIA Insured 11/09 at 101.00 AAA 1,071,830 500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 535,365 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 5,343,449 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) 1,643,550 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 23 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 101.00 AAA $ 1,798,107 Refunding Bonds, Mercy Health Services Obligated Group, Series 1999X, 5.750%, 8/15/19 (Pre-refunded 8/15/09) - MBIA Insured 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A (4) 1,070,730 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 5/08 at 101.00 AAA 3,532,210 Refunding Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 - AMBAC Insured (ETM) 1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 1,052,760 5.000%, 11/01/25 (Pre-refunded 11/01/11) - FSA Insured 1,100 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+ (4) 1,135,530 Refunding Bonds, Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 (Pre-refunded 7/01/08) Michigan, Certificates of Participation, Series 2000: 2,000 5.500%, 6/01/19 (Pre-refunded 6/01/10) - AMBAC Insured 6/10 at 100.00 AAA 2,105,080 2,000 5.500%, 6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured 6/10 at 100.00 AAA 2,105,080 2,875 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,048,765 Michigan, General Obligation Bonds, Series 2000A, 5.750%, 5/01/24 (Pre-refunded 5/01/10) - FGIC Insured Muskegon Heights, Muskegon County, Michigan, Water Supply System Revenue Bonds, Series 2000A: 1,040 5.625%, 11/01/25 (Pre-refunded 11/01/10) - MBIA Insured 11/10 at 100.00 Aaa 1,107,371 1,160 5.625%, 11/01/30 (Pre-refunded 11/01/10) - MBIA Insured 11/10 at 100.00 Aaa 1,235,145 1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB+ (4) 1,214,775 Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded 7/01/10) 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- (4) 105,947 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 185 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 191,749 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,060,440 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured 2,100 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 2,191,287 Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded 5/01/09) - FGIC Insured 1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,122,366 Counties, Michigan, General Obligation Bonds, Series 2001, 5.375%, 5/01/19 (Pre-refunded 11/01/11) - FSA Insured 1,980 Washtenaw County Building Authority, Michigan, Limited Tax 9/07 at 100.00 AAA 2,000,038 General Obligation Bonds, Series 1999, 5.400%, 9/01/17 (Pre-refunded 9/01/07) - FGIC Insured 2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,768,974 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 5.900%, 5/01/18 (Pre-refunded 5/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 69,825 Total U.S. Guaranteed 73,887,812 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.4% (8.2% OF TOTAL INVESTMENTS) 3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,150,750 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 3,430,884 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,050,520 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) 4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 4,189,200 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 2,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 2,070,900 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 AAA 4,690,759 Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA $ 3,180,570 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - XLCA Insured (Alternative Minimum Tax) 400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 419,824 Series 2000HH, 5.250%, 7/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,255 Total Utilities 22,183,407 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.5% (6.3% OF TOTAL INVESTMENTS) 5,500 Detroit Water Supply System, Michigan, Water Supply 7/16 at 100.00 AAA 5,788,804 System Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,775,295 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 2,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 2,122,020 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 AAA 1,564,695 Bonds, Series 2003A, 5.000%, 7/01/25 - MBIA Insured 4,210 Michigan Municipal Bond Authority, Clean Water Revolving 10/14 at 100.00 AAA 4,484,829 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19 1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,220,162 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 15,860 Total Water and Sewer 16,955,805 ------------------------------------------------------------------------------------------------------------------------------------ $ 263,259 Total Long-Term Investments (cost $253,246,108) - 149.6% 268,163,543 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.7% (0.4% OF TOTAL INVESTMENTS) 1,200 Puerto Rico Government Development Bank, Adjustable VMIG-1 1,200,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 3.300%, 12/01/15 - MBIA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $254,446,108) - 150.3% 269,363,543 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 3,871,487 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.4)% (94,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 179,235,030 ====================================================================================================================
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 25 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.3% (3.5% OF TOTAL INVESTMENTS) $ 440 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- $ 441,505 Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35 2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,087,820 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 AAA 3,622,010 Series 1999, 5.125%, 11/15/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,940 Total Education and Civic Organizations 6,151,335 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 10.8% (7.2% OF TOTAL INVESTMENTS) 2,050 Dearborn Hospital Finance Authority, Michigan, Hospital 5/07 at 101.00 AAA 2,073,555 Revenue Bonds, Oakwood Obligated Group, Series 1995A, 5.875%, 11/15/25 - FGIC Insured 4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,190,160 Refunding Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A, 5.750%, 5/15/29 - MBIA Insured 500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ 531,215 Refunding Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 425 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 435,986 Chelsea Community Hospital, Series 2005, 5.000%, 5/15/25 325 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 330,824 Marquette General Hospital, Series 2005A, 5.000%, 5/15/26 1,600 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 1,671,056 Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 - MBIA Insured Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: 2,000 6.250%, 8/15/13 2/07 at 100.00 BB- 2,001,160 500 6.500%, 8/15/18 2/07 at 100.00 BB- 500,350 800 Monroe County Hospital Finance Authority, Michigan, 6/16 at 100.00 BBB- 837,904 Mercy Memorial Hospital Corporation Revenue Bonds, Series 2006, 5.375%, 6/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 12,200 Total Health Care 12,572,210 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.9% (4.6% OF TOTAL INVESTMENTS) 930 Michigan Housing Development Authority, GNMA 4/12 at 102.00 Aaa 970,613 Collateralized 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 4/07 at 100.00 AAA 1,501,635 Revenue Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - FSA Insured 2,400 Michigan Housing Development Authority, Limited Obligation 4/07 at 100.00 AAA 2,457,816 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 827,992 Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Assisted Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: 725 6.600%, 6/01/13 6/07 at 100.00 AAA 726,015 1,500 6.600%, 6/01/22 6/07 at 100.00 AAA 1,552,200 ------------------------------------------------------------------------------------------------------------------------------------ 7,855 Total Housing/Multifamily 8,036,271 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.7% (0.4% OF TOTAL INVESTMENTS) 665 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 686,825 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 ------------------------------------------------------------------------------------------------------------------------------------ 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.9% (0.6 % OF TOTAL INVESTMENTS) $ 1,050 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB $ 1,073,867 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 41.6% (27.5% OF TOTAL INVESTMENTS) 1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA 1,564,547 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 2,601,125 Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/21 2,250 Caledonia Community Schools, Kent, Allegan and Barry 5/15 at 100.00 AAA 2,375,078 Counties, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A: 1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AAA 2,163,680 750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 898,530 2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 2,625,600 Obligation Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC Insured 2,665 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 2,847,526 5.250%, 4/01/24 - AMBAC Insured 7,000 Detroit-Wayne County Stadium Authority, Michigan, Limited 2/07 at 102.00 AAA 7,146,297 Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured 1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AAA 1,763,009 Obligation Bonds, Series 2006, 5.125%, 5/01/32 - MBIA Insured 2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA 2,109,900 Obligation Bonds, Series 2003, 5.000%, 5/01/22 1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 1,328,375 Series 2006, 5.000%, 5/01/25 - FSA Insured 500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA 527,145 Obligation Bonds, Series 2004, 5.000%, 5/01/22 1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,056,210 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 1,000 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 1,060,830 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 1,071,600 2,000 5.250%, 5/01/21 5/13 at 100.00 AA 2,143,200 1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,051,090 Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured 1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, 5/14 at 100.00 AAA 1,156,199 Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured 2,515 Plainwell Community Schools, Allegan County, Michigan, 11/12 at 100.00 AA 2,615,374 General Obligation Bonds, Series 2002, 5.000%, 5/01/28 1,000 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,054,870 Obligation Bonds, Series 2005, 5.000%, 5/01/27 - FSA Insured 2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA 3,029,402 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 - MBIA Insured 12/11 at 101.00 AAA 1,611,315 4,270 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,443,746 ------------------------------------------------------------------------------------------------------------------------------------ 45,570 Total Tax Obligation/General 48,244,648 ------------------------------------------------------------------------------------------------------------------------------------ 27 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 20.4% (13.5% OF TOTAL INVESTMENTS) $ 2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 AAA $ 3,056,026 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 AA- 2,744,477 6,500 5.000%, 10/15/24 10/11 at 100.00 AA- 6,741,995 1,600 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AAA 1,691,824 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 - MBIA Insured 10/13 at 100.00 AAA 5,273,200 2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,612,531 1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,567,185 Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,530 Total Tax Obligation/Limited 23,687,238 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 31.7% (20.9% OF TOTAL INVESTMENTS) (4) 1,000 Central Montcalm Public Schools, Montcalm and Ionia Counties, 5/09 at 100.00 AAA 1,043,470 Michigan, General Obligation Unlimited Tax School Building and Site Bonds, Series 1999, 5.750%, 5/01/24 (Pre-refunded 5/01/09) - MBIA Insured 1,375 Chippewa Valley Schools, Macomb County, Michigan, General 5/11 at 100.00 AA (4) 1,440,491 Obligation Bonds, Series 2001, 5.000%, 5/01/26 (Pre-refunded 5/01/11) Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 1,385 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 1,467,352 1,315 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 1,393,190 2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,133,980 Series 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured Eastern Michigan University, General Revenue Bonds, Series 2003: 1,000 5.000%, 6/01/28 (Pre-refunded 6/01/13) - FGIC Insured 6/13 at 100.00 AAA 1,067,800 1,450 5.000%, 6/01/33 (Pre-refunded 6/01/13) - FGIC Insured 6/13 at 100.00 AAA 1,548,310 2,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 2,253,922 Mortgage Hospital Revenue Bonds, Portage Health System Inc., Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) - MBIA Insured 500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 Aa2 (4) 536,865 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) 81,263 Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM) 1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 AA- (4) 1,583,250 Program, Series 2000I, 5.375%, 10/15/20 (Pre-refunded 10/15/10) 2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 2,676,825 Bonds, Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded 11/15/09) 4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 4,595,367 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) 1,643,550 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 3,000 Michigan State Hospital Finance Authority, Hospital Revenue 4/07 at 100.00 AAA 3,106,620 Refunding Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 - AMBAC Insured (ETM) 1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,310,246 Michigan, General Obligation Bonds, Series 2000A, 5.625%, 5/01/16 (Pre-refunded 5/01/10) - FGIC Insured 265 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 274,667 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,060,440 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) South Lyon Community Schools, Oakland, Washtenaw and Livingston Counties, Michigan, General Obligation Bonds, Series 2003: $ 1,000 5.250%, 5/01/19 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 AAA $ 1,075,540 1,575 5.250%, 5/01/22 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 AAA 1,693,976 1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,552,424 Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured 2,950 West Bloomfield School District, Oakland County, Michigan, 5/14 at 100.00 AAA 3,167,504 General Obligation Bonds, Series 2004, 5.000%, 5/01/22 (Pre-refunded 5/01/14) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 34,555 Total U.S. Guaranteed 36,707,052 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.9% (9.2% OF TOTAL INVESTMENTS) 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,050,250 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 984,052 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,050,520 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) 5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 5,236,500 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 Aaa 3,106,350 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 AAA 3,180,570 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - XLCA Insured (Alternative Minimum Tax) 1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 10/08 at 101.00 AAA 1,550,820 Series 2002, 5.375%, 10/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,425 Total Utilities 16,159,062 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 19.1% (12.6% OF TOTAL INVESTMENTS) 3,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 3,683,785 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 2,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 2,101,520 Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - MBIA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,775,295 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 3,960 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 4,201,600 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 29 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue 7/15 at 100.00 AAA $ 1,402,325 Bonds, Series 2005, 5.000%, 1/01/30 - MBIA Insured 8,460 North Kent Sewer Authority, Michigan, Sewer Revenue 11/16 at 100.00 AAA 8,972,084 Bonds, Series 2006, 5.000%, 11/01/31 - MBIA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 20,750 Total Water and Sewer 22,136,609 ------------------------------------------------------------------------------------------------------------------------------------ $ 166,540 Total Investments (cost $168,152,787) - 151.3% 175,455,117 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.9)% (5,640,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 2,112,775 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.3)% (56,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 115,927,892 ====================================================================================================================
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 30 Nuveen Michigan Dividend Advantage Municipal Fund (NZW) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 4.6% (3.0% OF TOTAL INVESTMENTS) $ 230 Chandler Park Academy, Michigan, Public School Academy 11/15 at 100.00 BBB- $ 230,787 Charter School Revenue Bonds, Series 2005, 5.125%, 11/01/35 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,188,192 Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%, 9/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,380 Total Education and Civic Organizations 1,418,979 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 17.5% (11.7% OF TOTAL INVESTMENTS) 500 Allegan Hospital Finance Authority, Michigan, Revenue Bonds, 11/09 at 101.00 N/R 534,795 Allegan General Hospital, Series 1999, 7.000%, 11/15/21 700 Michigan State Hospital Finance Authority, Hospital Revenue 7/07 at 101.00 Ba3 707,714 Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16 750 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ 796,823 Refunding Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 425 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 433,054 Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30 200 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 Baa1 203,584 Marquette General Hospital, Series 2005A, 5.000%, 5/15/26 475 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 496,095 Sparrow Obligated Group, Series 2005, 5.000%, 11/15/36 - MBIA Insured 400 Monroe County Hospital Finance Authority, Michigan, 6/16 at 100.00 BBB- 418,952 Mercy Memorial Hospital Corporation Revenue Bonds, Series 2006, 5.375%, 6/01/26 1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 1,875,150 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,250 Total Health Care 5,466,167 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.4% (4.3% OF TOTAL INVESTMENTS) 1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,779,390 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 206,998 Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,900 Total Housing/Multifamily 1,986,388 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.1% (2.8% OF TOTAL INVESTMENTS) 1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,288,350 Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.6% (1.0% OF TOTAL INVESTMENTS) 500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 488,945 Republic Services Inc., Series 2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.0% (0.8% OF TOTAL INVESTMENTS) 335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 345,995 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.6% (1.1% OF TOTAL INVESTMENTS) 500 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 511,365 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 31 Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 28.7% (19.2% OF TOTAL INVESTMENTS) $ 1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA $ 1,550,760 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 527,145 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 300 Kalamazoo Public Schools, Michigan, General Obligation 5/16 at 100.00 AAA 318,810 Bonds, Series 2006, 5.000%, 5/01/25 - FSA Insured 400 Michigan Municipal Bond Authority, General Obligation 6/15 at 100.00 AAA 424,332 Bonds, Detroit City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured 1,150 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,186,927 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured Washtenaw County, Michigan, Limited Tax General Obligation Bonds, Sylvan Township Water and Wastewater System, Series 2001: 500 5.000%, 5/01/19 - MBIA Insured 5/09 at 100.50 AAA 513,945 800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 822,312 1,650 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,717,139 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured 500 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 533,625 Obligation Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured 1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA 1,352,585 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/21 ------------------------------------------------------------------------------------------------------------------------------------ 8,600 Total Tax Obligation/General 8,947,580 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 12.5% (8.3% OF TOTAL INVESTMENTS) 1,100 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,145,485 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured 720 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 AAA 764,006 5.000%, 10/15/36 - FGIC Insured 1,205 Michigan State Building Authority, Revenue Bonds, 10/11 at 100.00 AA- 1,249,862 Facilities Program, Series 2001I, 5.000%, 10/15/24 615 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 729,919 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 3,640 Total Tax Obligation/Limited 3,889,272 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 38.6% (25.8% OF TOTAL INVESTMENTS) (4) 1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,087,700 General Obligation Bonds, Series 2002A, 5.375%, 5/01/24 (Pre-refunded 5/01/13) - FGIC Insured 1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,081,400 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) - FSA Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 515 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 545,622 485 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 513,838 1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA (4) 1,047,630 Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26 (Pre-refunded 5/01/11) 2,200 Huron School District, Wayne and Monroe Counties, Michigan, 5/11 at 100.00 AAA 2,336,884 General Obligation Bonds, Series 2001, 5.375%, 5/01/26 (Pre-refunded 5/01/11) - FSA Insured 1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 1,065,870 Spectrum Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11) 1,000 Michigan Municipal Bond Authority, Drinking Water 10/10 at 101.00 AAA 1,078,870 Revolving Fund Revenue Bonds, Series 2000, 5.875%, 10/01/17 (Pre-refunded 10/01/10) 2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,105,520 5.000%, 11/01/25 (Pre-refunded 11/01/11) - FSA Insured 500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 532,900 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- (4) $ 105,947 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 (ETM) 500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 524,155 Obligation Bonds, Series 2001, 5.150%, 11/01/22 (Pre-refunded 11/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,285 Total U.S. Guaranteed 12,026,336 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.5% (10.4% OF TOTAL INVESTMENTS) 1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,179,782 Electric Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,302,678 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 A3 2,340,834 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,565 Total Utilities 4,823,294 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.3% (11.6% OF TOTAL INVESTMENTS) 1,000 Detroit Water Supply System, Michigan, Water Supply 7/16 at 100.00 AAA 1,052,510 System Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,183,530 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 1,061,010 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 1,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,028,860 Bonds, Series 2001A, 5.000%, 7/01/30 - FGIC Insured 1,000 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 1,072,427 Fund Revenue Bonds, Series 2005, 5.000%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Water and Sewer 5,398,337 ------------------------------------------------------------------------------------------------------------------------------------ $ 44,205 Total Investments (cost $44,348,682) - 149.4% 46,591,008 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 587,118 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.3)% (16,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 31,178,126 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs $5,600,000 Receive 3-Month USD-LIBOR 5.682% Semi-Annually 7/10/07 7/10/12 $(106,639) Goldman Sachs 1,700,000 Pay 3-Month USD-LIBOR 5.803 Semi-Annually 7/10/07 7/10/37 83,738 ------------------------------------------------------------------------------------------------------------------------------------ $ (22,901) ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 33 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.8% (1.2% OF TOTAL INVESTMENTS) $ 2,660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,780,365 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.5% (11.7% OF TOTAL INVESTMENTS) 1,650 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 1,712,057 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 1,840,685 Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 1,030,540 Wittenberg University, Series 2005, 5.000%, 12/01/29 5,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 5,313,000 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 1,495,372 Denison University, Series 2004, 5.000%, 11/01/21 1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 AAA 1,387,544 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 Baa1 1,058,830 Wittenberg University, Series 2001, 5.500%, 12/01/15 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 5/16 at 100.00 Aaa 1,058,770 Xavier University, Series 2006, 5.000%, 5/01/22 - CIFG Insured 1,500 Ohio State Higher Education Facilities, Revenue Bonds, 12/16 at 100.00 AAA 1,575,405 Case Western Reserve University, Series 2006, 5.000%, 12/01/44 - MBIA Insured 1,200 Ohio State University, General Receipts Bonds, Series 2002A, 12/12 at 100.00 AA 1,259,364 5.125%, 12/01/31 3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,206,070 5.250%, 6/01/22 1,510 University of Akron, Ohio, General Receipts Bonds, 1/13 at 100.00 AAA 1,591,661 Series 2003A, 5.000%, 1/01/21 - AMBAC Insured 850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 894,183 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 AAA 1,269,372 2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 AAA 2,737,725 ------------------------------------------------------------------------------------------------------------------------------------ 26,000 Total Education and Civic Organizations 27,430,578 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 18.0% (12.0% OF TOTAL INVESTMENTS) 2,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101.00 Baa1 2,045,860 Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 4,140 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 3,974,441 Cincinnati Children's Medical Center Project, Series 2006K, 4.375%, 5/15/32 - FGIC Insured (UB) 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,021,290 Improvement Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - MBIA Insured 2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 AA- 2,195,860 Clinic Health System, Series 2003A, 6.000%, 1/01/32 4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 4,791,060 Regional Medical Center, Series 2002A, 5.625%, 8/15/32 2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 AAA 2,643,667 Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 785 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- $ 826,503 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A: 2,500 5.000%, 5/01/30 5/14 at 100.00 AA 2,588,150 2,500 5.000%, 5/01/32 No Opt. Call AA 2,586,600 830 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 895,263 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- 1,259,388 Health System Group, Series 2006, 5.250%, 11/15/36 1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 1,604,700 and Improvement Bonds, Trinity Health System, Series 2000, 6.375%, 10/01/20 1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 1,832,500 Union Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 27,115 Total Health Care 28,265,282 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.4% (4.3% OF TOTAL INVESTMENTS) 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 2/07 at 100.00 Aaa 1,386,371 Revenue Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 955 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 997,192 Housing Mortgage Revenue Bonds, Livingston Park Apartments Project, Series 2002A, 5.350%, 9/20/27 (Alternative Minimum Tax) 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 2,579,643 2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,346,098 96 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/10 at 102.00 Aaa 95,500 Housing Mortgage Revenue Bonds, West Tech Apartments Project, Series 2002A, 5.350%, 3/20/33 (Alternative Minimum Tax) 985 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/07 at 101.00 Aa2 991,688 Mortgage Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M: 800 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa 798,640 850 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 851,649 ------------------------------------------------------------------------------------------------------------------------------------ 9,796 Total Housing/Multifamily 10,046,781 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS) 1,195 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,212,913 Securities Program Residential Mortgage Revenue Bonds, Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax) 1,875 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 1,920,038 Securities Program Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax) 1,325 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 1,354,415 Securities Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax) 2,000 Ohio Housing Finance Agency, Single Family Mortgage 9/15 at 100.00 Aaa 2,052,560 Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,395 Total Housing/Single Family 6,539,926 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.2% (0.9% OF TOTAL INVESTMENTS) 530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund 11/14 at 100.00 N/R 555,350 Program Development Revenue Bonds, Myers University, Series 2004E, 5.600%, 5/15/25 1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 AAA 1,551,975 Emery Air Freight Corporation and Emery Worldwide Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 2,030 Total Industrials 2,107,325 ------------------------------------------------------------------------------------------------------------------------------------ 35 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.2% (1.5% OF TOTAL INVESTMENTS) $ 3,440 Hamilton County, Ohio, Health Care Revenue Refunding 1/17 at 100.00 BBB $ 3,495,006 Bonds, Life Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.2% (0.9% OF TOTAL INVESTMENTS) 2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A+ 2,050,780 Cargill Inc., Series 2004B, 4.500%, 12/01/15 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 34.1% (22.8% OF TOTAL INVESTMENTS) 1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,078,490 Obligation Bonds, Series 2000, 5.500%, 12/01/22 - MBIA Insured 1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,030,140 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 Butler County, Ohio, General Obligation Bonds, Series 2002: 1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,427,543 1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,266,660 Butler County, Ohio, General Obligation Judgment Bonds, Series 2002: 2,030 5.250%, 12/01/21 12/12 at 101.00 Aa3 2,180,139 2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,298,274 1,560 Canal Winchester Local School District, Franklin and 12/11 at 100.00 Aaa 1,613,648 Fairfield Counties, Ohio, School Facilities Construction and Improvement Bonds, Series 2001B, 5.000%, 12/01/28 - FGIC Insured 1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aaa 1,583,010 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 1,066,040 Series 2004A, 5.000%, 12/01/15 - AMBAC Insured 2,600 Cincinnati City School District, Hamilton County, Ohio, General 12/12 at 100.00 AAA 2,777,918 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 1,059,700 General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - FSA Insured 1,200 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 1,273,740 Series 2004, 5.000%, 12/01/21 1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,080,690 5.250%, 12/01/19 - AMBAC Insured 1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,055,550 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 1,037,140 Bonds, Series 2000A, 5.000%, 12/01/20 1,195 Fairview Park City School District, Cuyahoga County, Ohio, 6/15 at 100.00 Aaa 1,268,038 General Obligation Bonds, Series 2005, 5.000%, 12/01/24 - MBIA Insured 1,300 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 1,361,399 Refunding Bonds, Series 1993, 5.375%, 12/01/20 1,850 Hilliard School District, Franklin County, Ohio, General 12/15 at 100.00 AAA 1,964,497 Obligation Bonds, School Construction, Series 2005, 5.000%, 12/01/26 - MBIA Insured 3,000 Hilliard School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 3,205,260 Obligation Bonds, Series 2006A, 5.000%, 12/01/25 - MBIA Insured 1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,220,297 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured 2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 2,067,900 Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 505 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 536,638 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,618,671 Series 2003, 5.250%, 12/01/21 - MBIA Insured 760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 799,436 Obligation Bonds, Series 2004, 5.000%, 12/01/25 - FGIC Insured 640 New Albany Plain Local School District, Franklin County, Ohio, 6/12 at 100.00 Aaa 689,990 General Obligation Bonds, Series 2002, 5.500%, 12/01/17 - FGIC Insured 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,000 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 AAA $ 1,059,610 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,145,590 Series 2003F, 5.000%, 2/01/23 1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 AAA 1,599,664 Bonds, Series 2004, 5.000%, 12/01/22 - FGIC Insured 1,155 Perry Local School District, Allen County, Ohio, General 12/11 at 101.00 AAA 1,235,238 Obligation Bonds, Series 2001, 5.250%, 12/01/25 - AMBAC Insured 280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 303,391 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 AAA 1,494,694 5.000%, 12/01/27 - FGIC Insured 2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 2,091,020 5.000%, 12/01/21 - FGIC Insured 70 Strongsville, Ohio, Limited Tax General Obligation Various 6/07 at 102.00 Aa1 71,516 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 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 AAA 2,664,316 1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,235,672 1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,048,250 Obligation Bonds, Series 2003, 5.000%, 12/01/28 - MBIA Insured 1,000 Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa 1,040,530 Improvement and Refunding Bonds, Series 1997, 5.550%, 12/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 50,645 Total Tax Obligation/General 53,550,299 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 10.5% (7.0% OF TOTAL INVESTMENTS) 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,444,984 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 3,162,960 Anticipation Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue Bonds, Series 2004: 1,085 5.000%, 12/01/18 - FGIC Insured 6/14 at 100.00 AAA 1,149,492 2,600 5.000%, 12/01/33 - FGIC Insured 6/14 at 100.00 AAA 2,714,114 1,000 Hudson City School District, Ohio, Certificates of Participation, 6/14 at 100.00 Aaa 1,045,170 Series 2004, 5.000%, 6/01/26 - MBIA 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 AAA 1,077,460 1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,073,580 5 Ohio Department of Transportation, Certificates of Participation, 4/07 at 100.00 AA 5,007 Rickenbacker International Airport Improvements, Series 1996, 6.125%, 4/15/15 (Alternative Minimum Tax) 800 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 845,232 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 AAA 2,867,947 Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 - MBIA Insured 1,000 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,063,810 Capital Facilities, Series 2003B-II, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 15,515 Total Tax Obligation/Limited 16,449,756 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.1% (2.7% OF TOTAL INVESTMENTS) 3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 3,111,270 International Airport, Series 2003C, 5.250%, 12/01/23 - RAAI Insured (Alternative Minimum Tax) 1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox No Opt. Call AAA 1,069,190 International Airport, Series 2005B, 5.000%, 12/01/14 - XLCA Insured 37 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, No Opt. Call AAA $ 2,270,360 Series 1998A, 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total Transportation 6,450,820 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 38.1% (25.5% OF TOTAL INVESTMENTS) (4) 1,000 Cincinnati City School District, Hamilton County, Ohio, General 12/11 at 100.00 AAA 1,071,400 Obligation Bonds, Series 2001, 5.375%, 12/01/15 (Pre-refunded 12/01/11) - MBIA Insured Cincinnati, Ohio, Water System Revenue Bonds, Series 2001: 1,000 5.500%, 12/01/17 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 1,069,960 3,510 5.000%, 12/01/18 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 3,685,956 3,000 5.000%, 12/01/19 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 3,150,390 1,000 5.000%, 12/01/20 (Pre-refunded 6/01/11) 6/11 at 100.00 AA+ (4) 1,050,130 1,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ (4) 1,050,130 5.000%, 12/01/22 (Pre-refunded 6/01/11) 1,780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 1,869,285 5.250%, 1/01/16 (Pre-refunded 1/01/10) - FSA Insured 420 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 429,097 Improvement Bonds, Series 1998I, 5.000%, 1/01/28 (Pre-refunded 1/01/08) - FSA Insured 1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/09 at 101.00 AAA 1,252,144 Series 1999, 4.875%, 12/01/24 (Pre-refunded 6/01/09) - AMBAC Insured 1,135 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. 6/07 at 100.00 AAA 1,168,834 Project, Series 1979, 7.500%, 6/01/09 (ETM) 2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 Aaa 2,110,760 General Obligation School Improvement Bonds, Series 2001, 5.000%, 12/15/26 (Pre-refunded 12/15/11) - MBIA Insured 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,042,080 Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23 (Pre-refunded 10/01/08) 2,110 Hamilton County, Ohio, Sewer System Revenue and 6/10 at 101.00 AAA 2,260,633 Improvement 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 AAA 1,080,340 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 Aaa 2,110,180 Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 1,000 London City School District, Ohio, General Obligation School 12/11 at 100.00 Aaa 1,054,970 Facilities Construction and Improvement Bonds, Series 2001, 5.000%, 12/01/29 (Pre-refunded 12/01/11) - FGIC Insured 3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 3,285,780 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) 1,363,572 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 Aaa 498,447 Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 (Pre-refunded 6/01/12) - FGIC Insured 4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 N/R (4) 4,575,108 Section 8 Assisted Mortgage Loan Revenue Refunding Bonds, Series 1999G, 5.950%, 2/01/24 (Pre-refunded 2/01/09) 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 AAA 1,433,771 3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AAA 3,685,282 6,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 N/R (4) 6,224,157 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29 (Pre-refunded 11/01/08) 1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,329,544 Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20 (Pre-refunded 6/01/11) - FGIC Insured 1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,072,510 Obligation Bonds, Series 2003, 5.000%, 12/01/30 (Pre-refunded 12/01/13) - MBIA Insured 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,730 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 1,793,110 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,670 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 N/R (4) 1,834,161 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 12/11 at 100.00 Aa3 (4) 3,016,554 Purpose Limited Tax General Obligation Bonds, Series 2002, 5.250%, 12/01/27 (Pre-refunded 12/01/11) 2,000 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 2,174,860 General Obligation Bonds, Series 2003, 5.250%, 12/01/27 (Pre-refunded 12/01/13) - MBIA Insured 2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,100,260 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 56,345 Total U.S. Guaranteed 59,843,405 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.0% (4.7% OF TOTAL INVESTMENTS) 4,000 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 4,169,720 System Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 - MBIA Insured 3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 Aaa 3,066,900 JMG Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 2,105,940 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured 1,600 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,623,952 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,600 Total Utilities 10,966,512 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.0% (2.0% OF TOTAL INVESTMENTS) 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,143,310 Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured 40 Cleveland, Ohio, Waterworks First Mortgage Revenue 7/07 at 101.00 AAA 40,458 Refunding and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - MBIA Insured 580 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 589,953 Improvement Bonds, Series 1998I, 5.000%, 1/01/28 - FSA Insured 1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, 10/15 at 100.00 Aaa 1,324,652 Series 2005, 5.250%, 10/01/22 - FSA Insured 1,500 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 1,594,950 Loan Fund Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 4,340 Total Water and Sewer 4,693,323 ------------------------------------------------------------------------------------------------------------------------------------ $ 222,881 Total Investments (cost $225,357,717) - 149.3% 234,670,158 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (2,770,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 2,294,294 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.0)% (77,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 157,194,452 ====================================================================================================================
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 39 Nuveen Ohio Dividend Advantage Municipal Fund (NXI) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.7% (1.2% OF TOTAL INVESTMENTS) $ 1,060 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,107,965 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 22.9% (15.5% OF TOTAL INVESTMENTS) 1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease 8/15 at 100.00 AAA 1,223,821 Revenue Bonds, Euclid Avenue Housing Corporation - Fenn Tower Project, Series 2005, 5.000%, 8/01/23 - AMBAC Insured 700 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 726,327 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 2,743,095 Ohio Northern University, Series 2002, 5.000%, 5/01/22 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 517,840 Wittenberg University, Series 2005, 5.000%, 12/01/24 2,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 2,125,200 Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 - AMBAC Insured 2,000 Ohio Higher Educational Facilities Commission, Revenue 11/11 at 101.00 AA 2,107,440 Bonds, Denison University, Series 2001, 5.200%, 11/01/26 500 Ohio Higher Educational Facilities Commission, Revenue Bonds, 5/16 at 100.00 Aaa 529,385 Xavier University, Series 2006, 5.000%, 5/01/22 - CIFG Insured 1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 AAA 1,862,203 Bonds, Series 2004, 5.000%, 12/01/20 - MBIA Insured 2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 A+ 2,903,203 Series 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12) ------------------------------------------------------------------------------------------------------------------------------------ 14,010 Total Education and Civic Organizations 14,738,514 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 11.1% (7.5% OF TOTAL INVESTMENTS) 1,690 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 1,622,417 Cincinnati Children's Medical Center Project, Series 2006K, 4.375%, 5/15/32 - FGIC Insured (UB) 1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 AA- 1,207,723 Clinic Health System, Series 2003A, 6.000%, 1/01/32 1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 2,033,226 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- 347,447 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 1,035,260 Initiatives, Series 2004A, 5.000%, 5/01/30 335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 361,341 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- 524,745 Health System Group, Series 2006, 5.250%, 11/15/36 ------------------------------------------------------------------------------------------------------------------------------------ 6,905 Total Health Care 7,132,159 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.7% (3.9% OF TOTAL INVESTMENTS) 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 3,012,171 Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M: $ 310 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa $ 309,473 340 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 340,660 ------------------------------------------------------------------------------------------------------------------------------------ 3,535 Total Housing/Multifamily 3,662,304 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.1% (2.1% OF TOTAL INVESTMENTS) 405 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 408,726 Securities Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 990 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,003,068 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 45,366 Securities Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage 9/15 at 100.00 Aaa 513,140 Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,940 Total Housing/Single Family 1,970,300 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.5% (1.7% OF TOTAL INVESTMENTS) 400 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 402,968 Revenue Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,206,670 Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 ------------------------------------------------------------------------------------------------------------------------------------ 1,400 Total Industrials 1,609,638 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,495 Hamilton County, Ohio, Health Care Revenue Refunding 1/17 at 100.00 BBB 1,518,905 Bonds, Life Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.5% (18.0% OF TOTAL INVESTMENTS) 1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,030,140 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aaa 1,583,010 General Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured 500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 530,725 5.000%, 12/01/21 2,965 Franklin County, Worthington, Ohio, Various Purpose Unlimited 12/11 at 100.00 AA 3,156,476 Tax General Obligation Bonds, Series 2001, 5.375%, 12/01/21 1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA 1,091,730 Obligation Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured 1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,067,963 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 1,000 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,051,890 Obligation Bonds, Series 2004, 5.000%, 12/01/25 - FGIC Insured 2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ 2,076,620 Bonds, Series 2001A, 5.000%, 2/01/20 1,275 Sycamore Community School District, Hamilton County, Ohio, 12/09 at 101.00 AAA 1,316,170 Unlimited Tax General Obligation School Improvement Bonds, Series 1999, 5.000%, 12/01/23 - MBIA Insured 2,415 Troy City School District, Miami County, Ohio, General 12/14 at 100.00 Aaa 2,545,169 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FSA Insured 1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101.00 Aaa 1,602,731 Limited Tax General Obligation Refunding Bonds, Series 2001, 5.500%, 12/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,145 Total Tax Obligation/General 17,052,624 ------------------------------------------------------------------------------------------------------------------------------------ 41 Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.8% (8.0% OF TOTAL INVESTMENTS) $ 2,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 AAA $ 2,108,640 Anticipation Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue Bonds, Series 2004: 1,415 5.000%, 12/01/21 - FGIC Insured 6/14 at 100.00 AAA 1,492,584 1,000 5.000%, 12/01/33 - FGIC Insured 6/14 at 100.00 AAA 1,043,890 345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 364,506 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 1,058,670 Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured 1,400 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ 1,521,114 Taxes Loan Note, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 7,160 Total Tax Obligation/Limited 7,589,404 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS) 2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 2,109,300 5.500%, 2/15/26 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 44.1% (29.7% OF TOTAL INVESTMENTS) (4) 1,700 Cincinnati, Ohio, Water System Revenue Bonds, Series 2001, 6/11 at 100.00 AA+ (4) 1,793,653 5.125%, 12/01/21 (Pre-refunded 6/01/11) 1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,111,830 Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - FSA Insured 1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB (4) 1,136,330 Ohio Presbyterian Retirement Services, Series 2001A, 7.125%, 7/01/29 (Pre-refunded 7/01/11) 1,470 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,530,682 Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19 (Pre-refunded 10/01/08) Jackson City School District, Jackson County, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2001: 880 5.500%, 12/01/22 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 Aaa 943,386 935 5.500%, 12/01/23 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 Aaa 1,002,348 2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,110,180 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, 12/10 at 101.00 AAA 975,056 Series 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 AAA 1,041,140 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 (Pre-refunded 12/01/09) - FGIC Insured 1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,069,720 Bonds, Series 2000, 5.450%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,071,490 Bonds, University of Dayton, Series 2000, 5.500%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 1,900 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AAA 2,071,608 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured Parma Community General Hospital Association, Ohio, Hospital Revenue Refunding and Improvement Bonds, Series 1998: 2,250 5.250%, 11/01/13 (Pre-refunded 11/01/08) 11/08 at 101.00 A- (4) 2,329,358 2,000 5.375%, 11/01/29 (Pre-refunded 11/01/08) 11/08 at 101.00 N/R (4) 2,074,720 2,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 2,130,340 6.000%, 8/01/16 (Pre-refunded 8/01/09) - FSA Insured 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 N/R (4) 730,370 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101.00 AAA 1,987,418 Obligation Bonds, Series 2001, 5.250%, 12/01/25 (Pre-refunded 12/01/11) - FGIC Insured 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,500 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA $ 1,632,585 Series 2001A, 5.750%, 6/01/17 (Pre-refunded 6/01/11) - FGIC Insured 1,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 1,575,195 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 26,560 Total U.S. Guaranteed 28,317,409 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.8% (6.0% OF TOTAL INVESTMENTS) 1,440 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 Aaa 1,526,040 System Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - MBIA Insured 2,000 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,064,660 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 1,051,720 Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/21 - AMBAC Insured 1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,014,970 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,440 Total Utilities 5,657,390 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.9% (2.6% OF TOTAL INVESTMENTS) 2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aaa 2,504,034 Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 90,025 Total Investments (cost $91,021,264) - 147.8% 94,969,946 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.7)% (1,120,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 1,403,041 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.2)% (31,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 64,252,987 ====================================================================================================================
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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. N/R Not rated. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 43 Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 8.8% (5.9% OF TOTAL INVESTMENTS) $ 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 A1 $ 3,154,950 Revenue Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) 925 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 966,856 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 3,925 Total Consumer Staples 4,121,806 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.4% (9.5% OF TOTAL INVESTMENTS) 1,345 Bowling Green State University, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,442,445 Series 2003, 5.250%, 6/01/18 - AMBAC Insured 450 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 466,925 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,000 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 AAA 1,062,600 Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 - AMBAC Insured 1,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 Baa1 1,111,772 Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15 250 Ohio Higher Educational Facilities Commission, Revenue Bonds, 5/16 at 100.00 Aaa 264,693 Xavier University, Series 2006, 5.000%, 5/01/22 - CIFG Insured 1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,051,980 Series 2003C, 5.000%, 6/01/22 - FGIC Insured 1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,316,973 Series 2004D, 5.000%, 6/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,340 Total Education and Civic Organizations 6,717,388 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.4% (15.5% OF TOTAL INVESTMENTS) 725 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 728,205 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.000%, 11/15/08 1,230 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 1,180,812 Cincinnati Children's Medical Center Project, Series 2006K, 4.375%, 5/15/32 - FGIC Insured (UB) 1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,056,660 Regional Medical Center, Series 2002A, 5.500%, 8/15/22 1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101.00 AA- 1,953,397 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- 236,896 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 724,682 Initiatives, Series 2004A, 5.000%, 5/01/30 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 717,289 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- 367,322 Health System Group, Series 2006, 5.250%, 11/15/36 3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 3,954,168 Union Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,415 Total Health Care 10,919,431 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS) 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,056,070 Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M: $ 250 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa $ 249,575 250 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 250,485 ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Housing/Multifamily 1,556,130 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.3% (1.5% OF TOTAL INVESTMENTS) 50 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 51,278 Securities Program Residential Mortgage Revenue Bonds, Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax) 1,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 1,026,280 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,050 Total Housing/Single Family 1,077,558 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS) 1,045 Hamilton County, Ohio, Health Care Revenue Refunding 1/17 at 100.00 BBB 1,061,710 Bonds, Life Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 32.4% (21.5% OF TOTAL INVESTMENTS) 1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,772,692 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 1,069,320 1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,059,700 400 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 424,580 Series 2004, 5.000%, 12/01/21 1,065 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,162,692 General Obligation Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa 2,613,600 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 1,067,963 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 AAA 2,823,861 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 2,036,518 5.000%, 12/01/25 - FGIC Insured 1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,074,070 5.500%, 12/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,215 Total Tax Obligation/General 15,104,996 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.1% (10.0% OF TOTAL INVESTMENTS) 800 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 835,112 First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/33 - FGIC Insured 250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 264,135 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 1,058,670 Adult Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured 1,500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 1,570,470 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,162,879 Capital Facilities, Series 2004A-II, 5.000%, 12/01/18 1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 BBB+ 1,078,370 Revenue Refunding Bonds, Series 2002E, 5.750%, 7/01/24 1,000 Summit County Port Authority, Ohio, Revenue Bonds, 12/11 at 100.00 AAA 1,065,270 Civic Theatre Project, Series 2001, 5.500%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,645 Total Tax Obligation/Limited 7,034,906 ------------------------------------------------------------------------------------------------------------------------------------ 45 Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 39.1% (26.0% OF TOTAL INVESTMENTS) (4) $ 3,495 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA $ 3,670,309 5.250%, 1/01/18 (Pre-refunded 1/01/10) - FSA Insured 2,605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,896,317 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 Aaa 1,060,440 Obligation Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 (Pre-refunded 12/01/11) - MBIA Insured 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 1,042,080 Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23 (Pre-refunded 10/01/08) 4,000 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 4,307,517 Obligation Bonds, Series 2001, 5.500%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 1,710 Marysville Exempted Village School District, Ohio, Certificates 6/15 at 100.00 AAA 1,873,698 of Participation, School Facilities Project, Series 2005, 5.250%, 12/01/21 (Pre-refunded 6/01/15) - MBIA Insured 730 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 770,128 Water Development, Series 2001A, 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 1,050 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AAA 1,161,479 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 (Pre-refunded 6/01/14) - FGIC Insured 1,335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 N/R (4) 1,466,231 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 16,925 Total U.S. Guaranteed 18,248,199 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.1% (6.0% OF TOTAL INVESTMENTS) 2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,580,825 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 AAA 626,517 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured 1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,014,970 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,095 Total Utilities 4,222,312 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS) 270 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 282,288 Fresh Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 66,425 Total Investments (cost $67,942,319) - 150.8% 70,346,724 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (820,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 1,116,577 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.5)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 46,643,301 ====================================================================================================================
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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. N/R Not rated. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 46 Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) Portfolio of INVESTMENTS January 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.3% (4.3% OF TOTAL INVESTMENTS) $ 1,990 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,080,048 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.6% (6.5% OF TOTAL INVESTMENTS) 350 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 363,164 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 1,213,898 Ohio Northern University, Series 2002, 5.750%, 5/01/16 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa1 517,840 Wittenberg University, Series 2005, 5.000%, 12/01/24 1,000 Ohio Higher Educational Facilities Commission, General 12/16 at 100.00 AAA 1,062,600 Revenue Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,975 Total Education and Civic Organizations 3,157,502 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.3% (8.9% OF TOTAL INVESTMENTS) 360 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 361,591 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.000%, 11/15/08 870 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 AAA 835,209 Cincinnati Children's Medical Center Project, Series 2006K, 4.375%, 5/15/32 - FGIC Insured (UB) 1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,849,155 Firelands Regional Medical Center, Series 2002A, 5.500%, 8/15/22 160 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 168,459 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 517,630 Health Initiatives, Series 2004A, 5.000%, 5/01/30 335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 361,341 Improvement 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- 262,373 Health System Group, Series 2006, 5.250%, 11/15/36 ------------------------------------------------------------------------------------------------------------------------------------ 4,225 Total Health Care 4,355,758 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.1% (0.7% OF TOTAL INVESTMENTS) Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M: 150 4.450%, 10/01/09 (Alternative Minimum Tax) No Opt. Call Aaa 149,745 200 4.900%, 6/20/48 (Alternative Minimum Tax) 6/16 at 102.00 AAA 200,388 ------------------------------------------------------------------------------------------------------------------------------------ 350 Total Housing/Multifamily 350,133 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS) 190 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 191,748 Securities Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 610 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 618,052 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 45,366 Securities 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 513,140 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,345 Total Housing/Single Family 1,368,306 ------------------------------------------------------------------------------------------------------------------------------------ 47 Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (continued) Portfolio of INVESTMENTS January 31, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.3% (1.6% OF TOTAL INVESTMENTS) $ 745 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, 1/17 at 100.00 BBB $ 756,913 Life Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.3% (22.4% OF TOTAL INVESTMENTS) 2,000 Canal Winchester Local School District, Franklin and Fairfield 12/08 at 102.00 AAA 2,083,040 Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 1998, 5.300%, 12/01/25 - FGIC Insured 300 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 318,435 5.000%, 12/01/21 2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 2,126,020 Obligation Bonds, Series 2001, 5.500%, 12/01/28 1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,051,980 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured 1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,332,827 5.125%, 12/01/26 - AMBAC Insured 500 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 531,325 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA 1,248,417 General Obligation Bonds, Series 2002, 5.125%, 12/01/29 - FSA Insured 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,043,710 Bonds, Series 2001B, 5.000%, 9/15/20 1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AA+ 1,190,918 Bonds, Series 2002, 5.000%, 12/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 10,390 Total Tax Obligation/General 10,926,672 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 20.0% (13.5% OF TOTAL INVESTMENTS) 600 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 626,334 First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/33 - FGIC Insured 1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 1,030,480 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 1,341,788 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 211,308 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 1,046,980 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 2,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 2,294,180 Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,050 Total Tax Obligation/Limited 6,551,070 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.4% (3.6% OF TOTAL INVESTMENTS) 1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, No Opt. Call AAA 1,759,529 Series 1998A, 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 47.3% (31.8% OF TOTAL INVESTMENTS) (4) 1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,639,005 Obligation Bonds, Series 2002, 5.750%, 12/01/21 (Pre-refunded 12/01/12) - FGIC Insured 500 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 101.00 BBB (4) 520,640 Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19 (Pre-refunded 10/01/08) 1,000 Hamilton County, Ohio, Sewer System Revenue Refunding 12/11 at 100.00 AAA 1,065,920 and Improvement Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2001A, 5.250%, 12/01/18 (Pre-refunded 12/01/11) - MBIA Insured 1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- (4) 1,083,670 5.375%, 12/01/22 (Pre-refunded 12/01/12) 1,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 1,095,260 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 AA (4) 1,071,640 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 AA- (4) 2,171,760 Case Western Reserve University, Series 2002B, 5.500%, 10/01/22 (Pre-refunded 10/01/12) 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 Ohio State University, General Receipts Bonds, Series 1999A, 12/09 at 101.00 AA (4) $ 1,064,810 5.800%, 12/01/29 (Pre-refunded 12/01/09) 1,230 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 1,297,613 Fresh Water Development, Series 2001A, 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 1,000 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AAA 1,090,320 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 (Pre-refunded 6/01/14) - FGIC Insured 1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 N/R (4) 1,037,360 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29 (Pre-refunded 11/01/08) 1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 1,636,187 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 11/10 at 101.00 N/R (4) 730,370 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 14,405 Total U.S. Guaranteed 15,504,555 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.8% (3.3% OF TOTAL INVESTMENTS) 1,500 American Municipal Power Ohio Inc., Wadsworth, 2/12 at 100.00 Aaa 1,589,625 Electric System Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.9% (0.6% OF TOTAL INVESTMENTS) 270 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 282,285 Fresh Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 45,795 Total Investments (cost $46,378,726) - 148.5% 48,682,396 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (580,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.6% 1,177,572 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.3)% (16,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 32,779,968 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JANUARY 31, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs $3,600,000 Receive 3-Month USD-LIBOR 5.682% Semi-Annually 7/10/07 7/10/12 $(68,554) Goldman Sachs 1,100,000 Pay 3-Month USD-LIBOR 5.803 Semi-Annually 7/10/07 7/10/37 54,184 ------------------------------------------------------------------------------------------------------------------------------------ $(14,370) ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
FUTURES CONTRACTS OUTSTANDING AT JANUARY 31, 2007: UNREALIZED CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION TYPE POSITION CONTRACTS EXPIRATION JANUARY 31, 2007 (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ U.S. 10-Year Treasury Notes Long 16 3/07 $1,708,000 $(30,923) ------------------------------------------------------------------------------------------------------------------------------------
(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 or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. 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) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 49 Statement of ASSETS AND LIABILITIES January 31, 2007 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $254,446,108, $168,152,787 and $44,348,682, respectively) $269,363,543 $175,455,117 $46,591,008 Cash 1,044,553 21,458 81,755 Receivables: Interest 3,063,917 2,240,625 555,474 Variation margin on futures contracts -- -- -- Other assets 20,113 7,499 7,926 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 273,492,126 177,724,699 47,236,163 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- -- -- Floating rate obligations -- 5,640,000 -- Unrealized depreciation on forward swaps -- -- 22,901 Accrued expenses: Management fees 145,870 92,446 15,453 Other 65,691 40,546 8,791 Preferred share dividends payable 45,535 23,815 10,892 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 257,096 5,796,807 58,037 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $179,235,030 $115,927,892 $31,178,126 ==================================================================================================================================== Common shares outstanding 11,714,953 7,751,048 2,064,990 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.30 $ 14.96 $ 15.10 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 117,150 $ 77,510 $ 20,650 Paid-in surplus 163,946,943 108,392,808 29,246,175 Undistributed (Over-distribution of) net investment income 164,627 79,018 17,806 Accumulated net realized gain (loss) from investments and derivative transactions 88,875 76,226 (325,930) Net unrealized appreciation (depreciation) of investments and derivative transactions 14,917,435 7,302,330 2,219,425 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $179,235,030 $115,927,892 $31,178,126 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 Unlimited Preferred 1,000,000 1,000,000 Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 50 OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $225,357,717, $91,021,264, $67,942,319 and $46,378,726, respectively) $234,670,158 $94,969,946 $70,346,724 $48,682,396 Cash -- 368,644 410,606 624,981 Receivables: Interest 2,590,618 1,107,440 738,472 588,548 Variation margin on futures contracts -- -- -- 4,750 Other assets 4,180 3,073 8,018 2,888 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 237,264,956 96,449,103 71,503,820 49,903,563 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 80,794 -- -- -- Floating rate obligations 2,770,000 1,120,000 820,000 580,000 Unrealized depreciation on forward swaps -- -- -- 14,370 Accrued expenses: Management fees 125,418 31,190 23,145 14,046 Other 57,520 24,119 10,315 13,641 Preferred share dividends payable 36,772 20,807 7,059 1,538 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 3,070,504 1,196,116 860,519 623,595 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $157,194,452 $64,252,987 $46,643,301 $32,779,968 ==================================================================================================================================== Common shares outstanding 9,746,032 4,242,916 3,121,477 2,158,239 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.13 $ 15.14 $ 14.94 $ 15.19 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 97,460 $ 42,429 $ 31,215 $ 21,582 Paid-in surplus 147,811,741 60,251,477 44,255,652 30,537,824 Undistributed (Over-distribution of) net investment income (159,489) (44,961) (80,343) (39,096) Accumulated net realized gain (loss) from investments and derivative transactions 132,299 55,360 32,372 1,281 Net unrealized appreciation (depreciation) of investments and derivative transactions 9,312,441 3,948,682 2,404,405 2,258,377 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $157,194,452 $64,252,987 $46,643,301 $32,779,968 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 51 Statement of OPERATIONS Six Months Ended January 31, 2007 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 6,604,233 $4,230,148 $1,130,615 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 870,215 552,063 151,839 Preferred shares - auction fees 118,467 70,575 20,165 Preferred shares - dividend disbursing agent fees 10,082 10,082 5,041 Shareholders' servicing agent fees and expenses 9,932 7,888 314 Floating rate obligations interest expense and fees -- 41,964 -- Custodian's fees and expenses 33,308 29,835 8,839 Directors'/Trustees' fees and expenses 3,857 2,400 651 Professional fees 10,592 8,491 5,659 Shareholders' reports - printing and mailing expenses 18,823 9,423 5,016 Stock exchange listing fees 5,005 4,967 88 Investor relations expense 17,972 11,679 3,188 Other expenses 16,087 10,238 6,467 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,114,340 759,605 207,267 Custodian fee credit (15,663) (7,088) (3,039) Expense reimbursement -- -- (63,691) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,098,677 752,517 140,537 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 5,505,556 3,477,631 990,078 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 847,044 653,940 82,450 Net realized gain (loss) from futures -- -- -- Change in net unrealized appreciation (depreciation) of investments 1,790,662 696,475 336,140 Change in net unrealized appreciation (depreciation) of forward swaps -- -- 672 Change in net unrealized appreciation (depreciation) of futures -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 2,637,706 1,350,415 419,262 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,367,771) (805,541) (247,591) From accumulated net realized gains (232,090) (174,588) (4,070) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,599,861) (980,129) (251,661) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 6,543,401 $3,847,917 $1,157,679 ====================================================================================================================================
See accompanying notes to financial statements. 52
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 5,635,407 $2,280,571 $1,658,545 $1,178,823 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 747,327 306,745 227,751 158,824 Preferred shares - auction fees 97,042 39,069 30,246 20,794 Preferred shares - dividend disbursing agent fees 15,123 5,041 5,041 5,041 Shareholders' servicing agent fees and expenses 10,995 475 532 399 Floating rate obligations interest expense and fees 15,893 6,431 4,704 3,330 Custodian's fees and expenses 37,948 16,931 17,551 11,637 Directors'/Trustees' fees and expenses 3,287 1,357 1,405 730 Professional fees 9,766 6,733 6,246 5,669 Shareholders' reports - printing and mailing expenses 11,403 7,839 6,006 4,919 Stock exchange listing fees 5,016 182 134 92 Investor relations expense 15,723 6,239 4,681 3,360 Other expenses 12,032 8,220 6,027 5,289 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 981,555 405,262 310,324 220,084 Custodian fee credit (12,299) (5,017) (6,893) (3,844) Expense reimbursement -- (120,694) (95,536) (74,990) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 969,256 279,551 207,895 141,250 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 4,666,151 2,001,020 1,450,650 1,037,573 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 599,556 139,475 142,997 40,753 Net realized gain (loss) from futures -- -- -- 66,475 Change in net unrealized appreciation (depreciation) of investments 1,234,300 581,558 454,877 301,153 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- 643 Change in net unrealized appreciation (depreciation) of futures -- -- -- (54,247) ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 1,833,856 721,033 597,874 354,777 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,185,781) (485,634) (372,420) (245,529) From accumulated net realized gains (109,526) (34,050) (39,456) (21,569) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,295,307) (519,684) (411,876) (267,098) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 5,204,700 $2,202,369 $1,636,648 $1,125,252 ====================================================================================================================================
See accompanying notes to financial statements. 53 Statement of CHANGES IN NET ASSETS (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW) ---------------------------- ------------------------------ --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 5,505,556 $ 11,188,131 $ 3,477,631 $ 7,082,116 $ 990,078 $ 1,998,909 Net realized gain (loss) from investments 847,044 879,750 653,940 522,482 82,450 25,827 Net realized gain (loss) from forward swaps -- -- -- -- -- 36,525 Net realized gain (loss) from futures -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 1,790,662 (6,894,595) 696,475 (3,676,369) 336,140 (863,821) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- 672 (18,351) Change in net unrealized appreciation (depreciation) of futures -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (1,367,771) (2,438,505) (805,541) (1,425,891) (247,591) (422,322) From accumulated net realized gains (232,090) (204,993) (174,588) (177,593) (4,070) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 6,543,401 2,529,788 3,847,917 2,324,745 1,157,679 756,767 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,182,237) (9,516,815) (2,813,631) (6,136,157) (805,171) (1,790,433) From accumulated net realized gains (859,878) (1,317,932) (717,747) (1,135,132) (16,105) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (5,042,115) (10,834,747) (3,531,378) (7,271,289) (821,276) (1,790,433) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 139,063 -- 83,158 18,628 36,099 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 139,063 -- 83,158 18,628 36,099 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 1,501,286 (8,165,896) 316,539 (4,863,386) 355,031 (997,567) Net assets applicable to Common shares at the beginning of period 177,733,744 185,899,640 115,611,353 120,474,739 30,823,095 31,820,662 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $179,235,030 $177,733,744 $115,927,892 $115,611,353 $31,178,126 $30,823,095 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 164,627 $ 209,079 $ 79,018 $ 220,559 $ 17,806 $ 80,490 ====================================================================================================================================
See accompanying notes to financial statements. 54
OHIO OHIO OHIO QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ) ---------------------------- ------------------------------ --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,666,151 $ 9,570,771 $ 2,001,020 $ 4,065,899 $ 1,450,650 $ 2,904,214 Net realized gain (loss) from investments 599,556 61,521 139,475 104,619 142,997 135,984 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Net realized gain (loss) from futures -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 1,234,300 (4,237,619) 581,558 (1,806,156) 454,877 (1,423,071) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of futures -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (1,185,781) (2,099,203) (485,634) (876,328) (372,420) (671,536) From accumulated net realized gains (109,526) (76,287) (34,050) (18,836) (39,456) (22,844) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 5,204,700 3,219,183 2,202,369 1,469,198 1,636,648 922,747 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,626,499) (8,294,392) (1,552,907) (3,585,882) (1,098,759) (2,505,800) From accumulated net realized gains (409,333) (528,190) (131,955) (142,845) (137,033) (149,733) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,035,832) (8,822,582) (1,684,862) (3,728,727) (1,235,792) (2,655,533) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 647,482 -- 122,421 -- 38,062 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 647,482 -- 122,421 -- 38,062 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 1,168,868 (4,955,917) 517,507 (2,137,108) 400,856 (1,694,724) Net assets applicable to Common shares at the beginning of period 156,025,584 160,981,501 63,735,480 65,872,588 46,242,445 47,937,169 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $157,194,452 $156,025,584 $64,252,987 $63,735,480 $46,643,301 $46,242,445 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (159,489) $ (13,360) $ (44,961) $ (7,440) $ (80,343) $ (59,814) ====================================================================================================================================
See accompanying notes to financial statements. 55 Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
OHIO DIVIDEND ADVANTAGE 3 (NVJ) ---------------------------- SIX MONTHS ENDED YEAR ENDED 1/31/07 7/31/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 1,037,573 $ 2,052,181 Net realized gain (loss) from investments 40,753 (2,845) Net realized gain (loss) from forward swaps -- -- Net realized gain (loss) from futures 66,475 -- Change in net unrealized appreciation (depreciation) of investments 301,153 (991,042) Change in net unrealized appreciation (depreciation) of forward swaps 643 (15,013) Change in net unrealized appreciation (depreciation) of futures (54,247) 23,324 Distributions to Preferred Shareholders: From net investment income (245,529) (464,277) From accumulated net realized gains (21,569) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 1,125,252 602,328 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (774,809) (1,709,126) From accumulated net realized gains (76,833) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (851,642) (1,709,126) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 7,208 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 7,208 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 273,610 (1,099,590) Net assets applicable to Common shares at the beginning of period 32,506,358 33,605,948 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $32,779,968 $32,506,358 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (39,096) $ (56,331) ====================================================================================================================================
See accompanying notes to financial statements. 56 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state funds (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). 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 American Stock Exchange. 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 diversified portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. 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. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service may establish fair value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. 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. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a municipal bond, future contract or a forward swap contract, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment is unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market 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 January 31, 2007, 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 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. 57 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 not less frequently than 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 U.S. 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. 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 -- 840 -- Series W -- -- 640 Series TH 3,200 1,400 -- Series F 560 -- -- ------------------------------------------------------------------------------------------------------------- Total 3,760 2,240 640 ============================================================================================================= 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 -- -- 960 -- ------------------------------------------------------------------------------------------------------------- Total 3,080 1,240 960 660 =============================================================================================================
Inverse Floating Rate Securities Each Fund may 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. 58 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"). An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "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 (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 an "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 accounts for the related interest paid to the holders of the short-term floating rate certificates as "Floating rate obligations interest expense and fees" in the Statement of Operations. During the six months ended January 31, 2007, Michigan Premium Income (NMP), Ohio Quality Income (NUO), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ) invested in externally deposited inverse floaters and/or self-deposited inverse floaters. Michigan Quality Income (NUM) and Michigan Dividend Advantage (NZW)did not invest in any such instruments during the six months ended January 31, 2007. The average floating rate obligations outstanding and average annual interest rate related to self-deposited inverse floaters during the six months ended January 31, 2007, were as follows:
MICHIGAN OHIO OHIO OHIO OHIO PREMIUM QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMP) (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------- Average floating rate obligations $2,176,304 $814,946 $329,728 $241,196 $170,761 Average annual interest rate 3.83% 3.87% 3.87% 3.87% 3.87% =============================================================================================================
Forward Swap Transactions The Funds are authorized to invest in certain derivative financial instruments. The Funds' 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 forward 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. 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. 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. To reduce such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, 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 swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. Futures Contracts The Funds are authorized to invest in futures contracts. 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." Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract. 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. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is noted in the Statement of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities reflects a receivable or payable for the variation margin when applicable. 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. 59 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. 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 U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW) ------------------------ ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06 ---------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 8,799 -- 5,425 1,186 2,278 ================================================================================================================ OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) ------------------------ ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 1/31/07 7/31/06 1/31/07 7/31/06 1/31/07 7/31/06 ---------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 39,047 -- 7,448 -- 2,436 ================================================================================================================ OHIO DIVIDEND ADVANTAGE 3 (NVJ) ----------------------- SIX MONTHS ENDED YEAR ENDED 1/31/07 7/31/06 ---------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 458 ================================================================================================================
60 3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended January 31, 2007, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------- Purchases $ 9,148,069 $15,138,826 $1,246,571 Sales and maturities 16,823,850 12,857,535 2,163,570 ============================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------- Purchases $22,084,434 $8,520,014 $5,685,463 $4,390,601 Sales and maturities 22,070,631 6,723,424 5,293,961 4,817,866 =============================================================================================================
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, 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. 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 January 31, 2007, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------- Cost of investments $254,539,997 $162,483,871 $44,650,988 ============================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------- Cost of investments $222,517,435 $89,811,546 $67,106,857 $45,784,717 =============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2007, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $15,032,358 $7,416,320 $2,257,393 Depreciation (208,812) (85,131) (317,373) ------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $14,823,546 $7,331,189 $1,940,020 ============================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $9,604,334 $4,130,261 $2,509,096 $2,367,427 Depreciation (220,383) (92,649) (89,220) (49,742) ------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $9,383,951 $4,037,612 $2,419,876 $2,317,685 =============================================================================================================
61 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at July 31, 2006, 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 * $877,261 $673,707 $222,544 Undistributed net ordinary income ** -- -- -- Undistributed net long-term capital gains 510,719 314,618 -- ============================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $587,921 $197,856 $121,200 $73,873 Undistributed net ordinary income ** -- -- 1,429 -- Undistributed net long-term capital gains 51,601 81,890 64,434 -- =============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on July 3, 2006, paid on August 1, 2006. ** 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 year ended July 31, 2006, was designated for purposes of the dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $12,059,759 $7,607,421 $2,223,571 Distributions from net ordinary income ** -- 20,208 -- Distributions from net long-term capital gains 1,522,925 1,313,082 -- ============================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $10,480,603 $4,505,621 $3,209,643 $2,183,862 Distributions from net ordinary income ** 749 8,426 350 -- Distributions from net long-term capital gains 604,477 161,865 172,587 -- =============================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 62 At July 31, 2006, the Funds' last tax year end, the following 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 OHIO DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 3 (NZW) (NVJ) -------------------------------------------------------------------------------- Expiration Year: 2011 $45,364 $ -- 2012 -- -- 2013 8,281 1,451 2014 -- 3,804 -------------------------------------------------------------------------------- Total $53,645 $5,255 ================================================================================ The following Funds elected to defer net realized losses from investments incurred from November 1, 2005 through July 31, 2006 ("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 OHIO DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 3 (NZW) (NVJ) -------------------------------------------------------------------------------- $28,241 $2,290 ================================================================================ 5. 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 Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on the amount of assets within 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. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: MICHIGAN QUALITY INCOME (NUM) AVERAGE DAILY NET ASSETS MICHIGAN PREMIUM INCOME (NMP) (INCLUDING NET ASSETS OHIO QUALITY INCOME (NUO) ATTRIBUTABLE TO PREFERRED SHARES) 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) AVERAGE DAILY NET ASSETS OHIO DIVIDEND ADVANTAGE 2 (NBJ) (INCLUDING NET ASSETS OHIO DIVIDEND ADVANTAGE 3 (NVJ) ATTRIBUTABLE TO PREFERRED SHARES) 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 ================================================================================ 63 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of January 31, 2007, the complex-level fee rate was .1844%. COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion (2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets (``Managed Assets'' means the average daily net assets of each fund including assets attributable to preferred stock issued by or borrowings by the Nuveen funds) of Nuveen sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. 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. 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 (including net assets attributable to Preferred shares), 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. 64 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 (including net assets attributable to Preferred shares), 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 (including net assets attributable to Preferred shares), 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. 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows funds to delay implementing FIN 48 into NAV calculations until the fund's last NAV calculation in the first required financial statement reporting period. As a result, the Funds must begin to incorporate FIN 48 into their NAV calculations by July 31, 2007. At this time, management is continuing to evaluate the implications of FIN 48 and does not expect the adoption of FIN 48 will have a significant impact on the net assets or results of operations of the Funds. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of January 31, 2007, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 65 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 7. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on March 1, 2007, to shareholders of record on February 15, 2007, as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Dividend per share $.0590 $.0605 $.0645 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Dividend per share $.0595 $.0605 $.0565 $.0595 ================================================================================ 66 Financial HIGHLIGHTS (Unaudited) 67 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) $15.17 $ .47 $.23 $(.12) $(.02) $ .56 $(.36) $(.07) $ (.43) 2006 15.88 .96 (.52) (.21) (.02) .21 (.81) (.11) (.92) 2005 15.51 .98 .57 (.13) (.01) 1.41 (.93) (.11) (1.04) 2004 15.14 1.01 .49 (.06) (.01) 1.43 (.95) (.11) (1.06) 2003 15.48 1.04 (.27) (.08) (.01) .68 (.92) (.10) (1.02) 2002 15.32 1.11 .15 (.11) (.02) 1.13 (.90) (.07) (.97) MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) 14.92 .45 .16 (.10) (.02) .49 (.36) (.09) (.45) 2006 15.55 .91 (.40) (.18) (.02) .31 (.79) (.15) (.94) 2005 15.19 .93 .50 (.11) -- 1.32 (.91) (.05) (.96) 2004 15.24 .97 .38 (.04) (.03) 1.28 (.94) (.39) (1.33) 2003 15.56 1.03 (.37) (.07) -- .59 (.91) -- (.91) 2002 15.31 1.05 .16 (.11) -- 1.10 (.85) -- (.85) ==================================================================================================================================== Total Returns ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ======================================================================================= MICHIGAN QUALITY INCOME (NUM) --------------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) $ -- $15.30 $14.70 5.03% 3.69% 2006 -- 15.17 14.41 (2.28) 1.41 2005 -- 15.88 15.67 9.94 9.28 2004 -- 15.51 15.20 5.17 9.52 2003 -- 15.14 15.45 2.40 4.35 2002 -- 15.48 16.10 11.18 7.68 MICHIGAN PREMIUM INCOME (NMP) --------------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) -- 14.96 14.59 5.40 3.32 2006 -- 14.92 14.27 (3.12) 2.06 2005 -- 15.55 15.68 16.03 8.80 2004 -- 15.19 14.37 5.46 8.56 2003 -- 15.24 14.85 2.64 3.71 2002 -- 15.56 15.35 10.52 7.40 ======================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) $179,235 1.22%* 1.22%* 6.01%* 1.20%* 1.20%* 6.03%* 3% 2006 177,734 1.23 1.23 6.17 1.22 1.22 6.19 18 2005 185,900 1.22 1.22 6.13 1.21 1.21 6.14 8 2004 181,114 1.22 1.22 6.44 1.22 1.22 6.45 15 2003 176,186 1.24 1.24 6.56 1.24 1.24 6.57 15 2002 179,630 1.28 1.28 7.29 1.27 1.27 7.29 19 MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) 115,928 1.28* 1.21* 5.87* 1.27* 1.20* 5.88* 7 2006 115,611 1.20 1.20 6.03 1.19 1.19 6.03 6 2005 120,475 1.19 1.19 5.97 1.17 1.17 5.98 11 2004 117,529 1.20 1.20 6.28 1.19 1.19 6.30 28 2003 117,418 1.21 1.21 6.49 1.20 1.20 6.50 18 2002 119,820 1.25 1.25 6.82 1.24 1.24 6.83 9 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ MICHIGAN QUALITY INCOME (NUM) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) $94,000 $25,000 $72,669 $ -- $ -- 2006 94,000 25,000 72,270 -- -- 2005 94,000 25,000 74,441 -- -- 2004 94,000 25,000 73,169 -- -- 2003 94,000 25,000 71,858 -- -- 2002 94,000 25,000 72,774 -- -- MICHIGAN PREMIUM INCOME (NMP) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) 56,000 25,000 76,754 5,640 31,484 2006 56,000 25,000 76,612 -- -- 2005 56,000 25,000 78,783 -- -- 2004 56,000 25,000 77,468 -- -- 2003 56,000 25,000 77,419 -- -- 2002 56,000 25,000 78,491 -- -- ================================================================================ * Annualized. ** Total Return 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. Total Return 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. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned 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 six months ended January 31, 2007. See accompanying notes to financial statements. 68-69 spread FINANCIAL HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(c) $14.94 $ .48 $.20 $(.12) $ -- $ .56 $ (.39) $(.01) $ (.40) 2006 15.44 .97 (.40) (.20) -- .37 (.87) -- (.87) 2005 14.82 .98 .63 (.11) -- 1.50 (.89) -- (.89) 2004 14.30 .99 .47 (.05) -- 1.41 (.89) -- (.89) 2003 14.42 .99 (.20) (.07) -- .72 (.86) -- (.86) 2002(b) 14.33 .76 .22 (.07) -- .91 (.63) -- (.63) ==================================================================================================================================== Total Returns ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ======================================================================================= MICHIGAN DIVIDEND ADVANTAGE (NZW) --------------------------------------------------------------------------------------- Year Ended 7/31: 2007(c) $ -- $15.10 $15.32 (.59)% 3.73% 2006 -- 14.94 15.81 (.47) 2.46 2005 .01 15.44 16.79 21.34 10.41 2004 -- 14.82 14.65 2.99 10.00 2003 .02 14.30 15.10 9.19 5.01 2002(b) (.19) 14.42 14.65 2.00 5.21 ======================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(c) $31,178 1.31%* 1.31%* 5.83%* .89%* .89%* 6.25%* 3% 2006 30,823 1.31 1.31 5.92 .83 .83 6.40 8 2005 31,821 1.27 1.27 5.93 .81 .81 6.39 8 2004 30,538 1.28 1.28 6.13 .81 .81 6.60 9 2003 29,443 1.29 1.29 6.15 .82 .82 6.61 2 2002(b) 29,679 1.35* 1.35* 6.00* .90* .90* 6.45* 21 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ MICHIGAN DIVIDEND ADVANTAGE (NZW) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(c) $16,000 $25,000 $73,716 $ -- $ -- 2006 16,000 25,000 73,161 -- -- 2005 16,000 25,000 74,720 -- -- 2004 16,000 25,000 72,716 -- -- 2003 16,000 25,000 71,005 -- -- 2002(b) 16,000 25,000 71,374 -- -- ================================================================================ * Annualized. ** Total Return 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. Total Return 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. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned 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 period September 25, 2001 (commencement of operations) through July 31, 2002. (c) For the six months ended January 31, 2007. See accompanying notes to financial statements. 70-71 spread FINANCIAL HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== OHIO QUALITY INCOME (NUO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) $16.01 $ .48 $ .18 $(.12) $(.01) $ .53 $ (.37) $(.04) $ (.41) 2006 16.58 .98 (.42) (.22) (.01) .33 (.85) (.05) (.90) 2005 16.21 1.02 .49 (.12) -- 1.39 (.98) (.04) (1.02) 2004 16.17 1.07 .25 (.06) (.01) 1.25 (1.00) (.21) (1.21) 2003 16.36 1.10 (.22) (.08) -- .80 (.99) -- (.99) 2002 16.10 1.14 .18 (.13) -- 1.19 (.93) -- (.93) OHIO DIVIDEND ADVANTAGE (NXI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) 15.02 .47 .17 (.11) (.01) .52 (.37) (.03) (.40) 2006 15.55 .96 (.40) (.21) -- .35 (.85) (.03) (.88) 2005 15.05 1.00 .57 (.11) -- 1.46 (.96) -- (.96) 2004 14.66 1.04 .40 (.06) -- 1.38 (.97) (.02) (.99) 2003 14.83 1.05 (.23) (.07) -- .75 (.92) (.01) (.93) 2002 14.57 1.06 .19 (.12) -- 1.13 (.87) -- (.87) ==================================================================================================================================== Total Returns ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** =================================================================================== OHIO QUALITY INCOME (NUO) ----------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) $ -- $16.13 $15.65 1.48% 3.33% 2006 -- 16.01 15.83 (1.36) 2.10 2005 -- 16.58 16.96 10.25 8.70 2004 -- 16.21 16.30 2.59 7.87 2003 -- 16.17 17.04 (3.15) 4.84 2002 -- 16.36 18.62 17.00 7.63 OHIO DIVIDEND ADVANTAGE (NXI) ----------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) -- 15.14 15.09 2.95 3.44 2006 -- 15.02 15.05 (6.53) 2.32 2005 -- 15.55 17.00 21.79 9.87 2004 -- 15.05 14.80 10.70 9.54 2003 .01 14.66 14.26 (.04) 5.09 2002 -- 14.83 15.15 4.48 8.02 =================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== OHIO QUALITY INCOME (NUO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) $157,194 1.23%* 1.21%* 5.82%* 1.21%* 1.19%* 5.84%* 9% 2006 156,026 1.20 1.20 6.05 1.19 1.19 6.06 9 2005 160,982 1.19 1.19 6.16 1.18 1.18 6.17 14 2004 156,634 1.20 1.20 6.46 1.19 1.19 6.47 31 2003 155,412 1.22 1.22 6.59 1.22 1.22 6.60 12 2002 156,351 1.26 1.26 7.10 1.24 1.24 7.12 26 OHIO DIVIDEND ADVANTAGE (NXI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(b) 64,253 1.24* 1.22* 5.74* .86* .84* 6.13* 7 2006 63,735 1.21 1.21 5.85 .76 .76 6.30 6 2005 65,873 1.21 1.21 6.00 .76 .76 6.46 14 2004 63,642 1.20 1.20 6.41 .75 .75 6.86 10 2003 61,924 1.23 1.23 6.52 .78 .78 6.97 6 2002 62,548 1.24 1.24 6.79 .78 .78 7.25 18 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ OHIO QUALITY INCOME (NUO) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) $77,000 $25,000 $76,037 $2,770 $85,547 2006 77,000 25,000 75,658 -- -- 2005 77,000 25,000 77,267 -- -- 2004 77,000 25,000 75,855 -- -- 2003 77,000 25,000 75,458 -- -- 2002 77,000 25,000 75,763 -- -- OHIO DIVIDEND ADVANTAGE (NXI) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(b) 31,000 25,000 76,817 1,120 86,047 2006 31,000 25,000 76,400 -- -- 2005 31,000 25,000 78,123 -- -- 2004 31,000 25,000 76,324 -- -- 2003 31,000 25,000 74,938 -- -- 2002 31,000 25,000 75,442 -- -- ================================================================================ * Annualized. ** Total Return 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. Total Return 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. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned 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 six months ended January 31, 2007. See accompanying notes to financial statements. 72-73 spread FINANCIAL HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(d) $14.81 $ .46 $ .19 $(.12) $(.01) $ .52 $(.35) $(.04) $(.39) 2006 15.37 .93 (.41) (.22) (.01) .29 (.80) (.05) (.85) 2005 14.85 .95 .61 (.12) -- 1.44 (.90) (.02) (.92) 2004 14.31 .99 .53 (.06) -- 1.46 (.92) -- (.92) 2003 14.48 1.00 (.23) (.08) -- .69 (.87) -- (.87) 2002(b) 14.33 .78 .23 (.08) -- .93 (.62) -- (.62) OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(d) 15.06 .48 .17 (.11) (.01) .53 (.36) (.04) (.40) 2006 15.57 .95 (.45) (.22) -- .28 (.79) -- (.79) 2005 14.93 .95 .69 (.11) -- 1.53 (.87) (.02) (.89) 2004 14.48 .96 .51 (.06) (.01) 1.40 (.88) (.07) (.95) 2003 14.83 .97 (.29) (.07) (.01) .60 (.88) (.06) (.94) 2002(c) 14.33 .25 .65 (.02) -- .88 (.22) -- (.22) ==================================================================================================================================== Total Returns ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ===================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------- Year Ended 7/31: 2007(d) $ -- $14.94 $14.43 .83% 3.55% 2006 -- 14.81 14.70 .35 1.96 2005 -- 15.37 15.48 11.63 9.90 2004 -- 14.85 14.70 9.60 10.33 2003 .01 14.31 14.26 3.17 4.74 2002(b) (.16) 14.48 14.65 1.91 5.58 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------- Year Ended 7/31: 2007(d) -- 15.19 14.89 3.66 3.48 2006 -- 15.06 14.75 (2.33) 1.87 2005 -- 15.57 15.90 17.60 10.40 2004 -- 14.93 14.30 5.86 9.72 2003 (.01) 14.48 14.40 .09 3.81 2002(c) (.16) 14.83 15.30 3.47 5.05 ===================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(d) $46,643 1.31%* 1.29%* 5.68%* .88%* .86%* 6.11%* 7% 2006 46,242 1.27 1.27 5.71 .78 .78 6.19 8 2005 47,937 1.23 1.23 5.71 .77 .77 6.17 14 2004 46,268 1.25 1.25 6.13 .79 .79 6.60 15 2003 44,578 1.27 1.27 6.26 .81 .81 6.72 15 2002(b) 45,073 1.25* 1.25* 6.12* .80* .80* 6.57* 39 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2007(d) 32,780 1.32* 1.30* 5.75* .85* .83* 6.22* 9 2006 32,506 1.28 1.28 5.76 .81 .81 6.23 2 2005 33,606 1.27 1.27 5.68 .81 .81 6.14 3 2004 32,208 1.28 1.28 5.87 .81 .81 6.34 8 2003 31,245 1.28 1.28 5.89 .82 .82 6.35 16 2002(c) 31,995 1.22* 1.22* 4.72* .80* .80* 5.15* 7 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ OHIO DIVIDEND ADVANTAGE 2 (NBJ) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(d) $24,000 $25,000 $73,587 $820 $87,150 2006 24,000 25,000 73,169 -- -- 2005 24,000 25,000 74,935 -- -- 2004 24,000 25,000 73,196 -- -- 2003 24,000 25,000 71,435 -- -- 2002(b) 24,000 25,000 71,951 -- -- OHIO DIVIDEND ADVANTAGE 3 (NVJ) -------------------------------------------------------------------------------- Year Ended 7/31: 2007(d) 16,500 25,000 74,667 580 85,965 2006 16,500 25,000 74,252 -- -- 2005 16,500 25,000 75,918 -- -- 2004 16,500 25,000 73,800 -- -- 2003 16,500 25,000 72,341 -- -- 2002(c) 16,500 25,000 73,477 -- -- ================================================================================ * Annualized. ** Total Return 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. Total Return 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. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned 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 period September 25, 2001 (commencement of operations) through July 31, 2002. (c) For the period March 25, 2002 (commencement of operations) through July 31, 2002. (d) For the six months ended January 31, 2007. See accompanying notes to financial statements. 74-75 spread Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: 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 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. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 76 Automatic Dividend REINVESTMENT PLAN NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS These Funds are amending the terms and conditions of their Automatic Dividend Reinvestment Plan (the ''Plan``) as further described below effective with the close of business on March 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who do not wish to continue as participants under the amended Plan may withdraw from the Plan by notifying the Plan Agent prior to the effective date of the amendments. Participants should refer to their Plan document for notification instructions, or may simply call Nuveen at (800) 257-8787. Fund shareholders who elect to participate in the Plan are able to have Fund distributions consisting of income dividends, realized capital gains and returns of capital automatically reinvested in additional Fund shares. Under the Plan's existing terms, the Plan Agent purchases Fund shares in the open market if the Fund's shares are trading at a discount to their net asset value on the payable date for the distribution. If the Fund's shares are trading at or above their net asset value on the payable date for the distribution, the Plan Agent purchases newly-issued Fund shares directly from the Fund at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. Under the Plan's amended terms, 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. This change will permit Plan participants under these circumstances to reinvest Fund distributions at a lower aggregate cost than is possible under the existing Plan. 77 Notes 78 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2006, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available 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 1-202-942-8090 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 450 Fifth Street NW, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. GLOSSARY OF TERMS USED IN THIS REPORT 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. 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. INVERSE FLOATERS: Inverse floating rate securities 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. 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. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. 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. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carol E. Stone Eugene S. Sunshine 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 Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 79 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. 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. Managing approximately $162 billion in assets, as of December 31, 2006, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: NWQ, specializing in value-style equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to growth equities; Tradewinds, specializing in global value equities; Rittenhouse, focused on "blue-chip" growth equities; and Symphony, with expertise in alternative investments as well as equity and income portfolios. 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. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/CEF o Investor education o Interactive planning tools Logo: NUVEEN Investments ESA-B-0107D 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. See Portfolio of Investments in Item 1. 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. Not applicable. 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 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: 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. 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 Ohio Dividend Advantage Municipal Fund 3 ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: April 9, 2007 ------------------------------------------------------------------- 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: April 9, 2007 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: April 9, 2007 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.