-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B6k897rwOynVjFjPYRZNZeqT1ICnsqT9F8Of+nL9Odpw0BE+G53/cA9kwjFtA5Hv sjHTt12HXGIPHKWRZVe7RA== 0000891804-04-002291.txt : 20041012 0000891804-04-002291.hdr.sgml : 20041011 20041012135012 ACCESSION NUMBER: 0000891804-04-002291 CONFORMED SUBMISSION TYPE: N-CSR/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040731 FILED AS OF DATE: 20041012 DATE AS OF CHANGE: 20041012 EFFECTIVENESS DATE: 20041012 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND INC CENTRAL INDEX KEY: 0000878198 IRS NUMBER: 363777458 STATE OF INCORPORATION: MN FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-CSR/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-06383 FILM NUMBER: 041074361 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 W WACKER CITY: CHICAGO STATE: IL ZIP: 60606 N-CSR/A 1 file001.txt NUVEEN MICHIGAN QUALITY INC MUNI FUND, INC. 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 811-6383 --------------------- Nuveen Michigan Quality Income Municipal Fund, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) 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: July 31, 2004 ------------------ 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. ANNUAL REPORT July 31, 2004 Nuveen Investments Municipal Closed-End Exchange-Traded 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: Man and woman sitting on porch. Photo of: 2 children sitting in the grass. 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: Man and child Photo of: Woman 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/CORPORATE/ENROLLMENT 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 most recent reporting period your Fund continued to provide you with tax-free monthly income and an attractive total return. For more specific information about the performance of your Fund, please see the Portfolio Managers' Perspective and Performance Overview sections of this report. With interest rates at historically low levels, many have begun to wonder whether interest rates will rise, and whether that possibility should cause them to adjust their holdings of fixed-income investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio - -------------------------------------------------------------------------------- NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A WELL-BALANCED PORTFOLIO ..... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR LONG-TERM FINANCIAL GOALS. - -------------------------------------------------------------------------------- may actually help to reduce your overall investment risk, and we believe that municipal bond investments like your Nuveen Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. I'd also like to direct your attention to the inside front cover of this report, which explains the quick and easy process to begin receiving Fund reports like this via e-mail and the internet. Thousands of Nuveen Fund shareholders already have signed-up, and they are getting their Fund information faster and more conveniently than ever. I urge you to consider joining them. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board September 15, 2004 Nuveen Investments Municipal Closed-End Exchange-Traded Funds (NUM, NMP, NZW, NUO, NXI, NBJ, NVJ) Portfolio Managers' PERSPECTIVE Portfolio managers Dan Solender and Cathryn Steeves discuss the market environment, key investment strategies and the annual performance of the Michigan and Ohio Funds. With 12 years of investment experience, including eight at Nuveen, Dan assumed portfolio management responsibility for these Funds in November 2003. After the end of this reporting period, in August 2004, Cathryn assumed responsibility for the four Ohio Funds (NUO, NXI, NBJ, and NVJ). Cathryn has been a research analyst and portfolio manager with Nuveen since 1996. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE FISCAL YEAR ENDED JULY 31, 2004? During much of this reporting period, the U.S. economy demonstrated signs of improvement, as increased capital spending and a rise in consumer confidence helped fuel strong growth in the overall gross domestic product. However, toward the end of the 12-month period, higher energy costs and the improving employment picture began to raise fears of a potential pick-up in inflation. This combination of inflation concerns and general economic momentum--plus continued geopolitical uncertainty--served as a catalyst for heightened volatility in the fixed-income markets. Although interest rates remained at or near historical lows through much of this 12-month period, yields in the long-term bond markets, including the municipal market, were increasingly driven by expectations that the Federal Reserve would raise short-term interest rates and by speculation over the timing and extent of those rate hikes. As an example of this interest rate volatility, the Bond Buyer 25 Revenue Bond Index, a widely followed municipal market benchmark, began this 12-month reporting period with a yield of 5.41%. After briefly touching 5.50%, the yield fell steadily to 4.73% by mid-March 2004. From there, the Index's yield rose back to 5.31% by July 31, 2004. On June 30, 2004, the Fed moved to increase the fed funds rate by 25 basis points to 1.25%, the first increase in four years, noting that it anticipated taking a "measured" approach to further tightening to avoid potential derailment of the economic recovery. (On August 10, 2004, following the close of this reporting period, the Fed added another 25 basis points, bringing the target rate to 1.50%.) In general, municipal supply nationwide remained relatively strong over the entire 12-month reporting period. About $366.5 billion in new bonds came to market during 4 this period, down 7% from the preceding 12 months. The decrease in issuance was more evident late in the period, with $214 billion in new municipal supply for the first seven months of 2004 compared with $239 billion for January-July 2003. HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN MICHIGAN AND OHIO? Although challenges remain, Michigan's economy finally appeared to be on the road to recovery. The state's business and services industries, as well as the life sciences and high-tech sectors, experienced modest, but accelerated, growth, and its industrial base slowly continued to diversify. Although down significantly from the 7.5% rate in July 2003, Michigan's unemployment rate of 6.8% in July 2004 remained well above the national average of 5.5%. The state's high cost structure and unionized workforce continued to provide impetus for consolidations, plant shutdowns and outsourcing to countries with lower labor costs. The state's rainy day and reserve funds were depleted in fiscal 2003, and Michigan turned to issuing $1.2 billion in cashflow notes to balance the fiscal 2004 budget. As of July 31, 2004, state lawmakers had not agreed on a plan to close the $1.3 billion budget shortfall for fiscal 2005, which begins October 1, 2004. However, we believe that Michigan's debt levels remain manageable, and leave some flexibility in bond financing if revenues fail to meet projected targets. During this 12-month reporting period, issuers in Michigan sold $8.8 billion in new municipal bonds, a decrease of 25% from the previous 12 months. In late 2003, Moody's downgraded Michigan's general obligation debt to Aa1 from Aaa, and Standard & Poor's also revised its rating to AA+ from AAA. Both credit agencies maintained a stable outlook for the state based on Michigan's efforts to overcome the decline in state revenues and achieve a balanced budget. Ohio's economy also appeared to be gradually emerging from recession. Modest job creation has replaced some of the massive job losses in manufacturing, and growth in the business/professional services and education sectors provided welcome diversity to the state economy. As of July 2004, unemployment in Ohio was 5.9%, down from 6.3% in July 2003. Ohio's budget shortfall of $373 million for fiscal 2005 was closed through spending cuts, including Medicaid reductions, and the delay of a $100 million transfer to the state's budget stabilization fund. The fiscal 2004-2005 $48.9 billion biennial budget is also reliant on a two-year sales tax increase, which is expected to generate $1.25 billion annually. In contrast to the national trend, municipal issuance in Ohio was up 15% over 5 the 12 months ended July 2004, with $10.9 billion in new securities. Over the year period, the state's general obligation debt retained its ratings of Aa1 with a negative outlook from Moody's and AA+ with a stable outlook from S&P. Moody's negative outlook reflects the state's continued shortfalls in tax receipts and budget deficits that created pressure in 2004 and into 2005. IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE 12 MONTHS ENDED JULY 31, 2004? As the market continued to anticipate rising interest rates, our major focus during this fiscal year remained on positioning our Funds in maturities with the best expected returns, and on aligning the Funds to have more consistent interest rate risk. Interest rate risk is the risk that the value of a Fund's portfolio will decline if market interest rates rise (since bond prices move in the opposite direction of interest rates). We focused primarily on the 15 to 20 year maturity range, and we also bought bonds with coupons above current market rates to provide a degree of cushion for the Funds if rates were to rise. In many cases, bonds in the 15 to 20 year maturity range offered yields similar to those of longer-term bonds with less inherent interest rate risk and, we believed, greater total return prospects. We also added some bonds in the 10-year maturity range when we found what we believed were attractive opportunities. We think this yield curve positioning should also help the Funds produce more consistent returns over time as interest rates rise and fall. In keeping with this strategy, some of the bonds we purchased carried coupons that were higher than current market rates. These "premium" bonds have the potential to help cushion the impact on the value of the Funds' portfolios if interest rates continue to rise. Some of these additions were financed through the sale of bonds with longer maturities (i.e., beyond 20 years). We also reduced our positions in pre-refunded and escrowed bonds in the three older Funds (NUM, NMP, and NUO). In NUO, for example, we cut our pre-refunded and escrowed holdings in half over the 12 month period, from 20% to 10%. In addition, because healthcare bonds were performing well, certain Funds took advantage of opportunities to sell selected bonds at attractive prices and modestly reduce their healthcare holdings. We tried to reinvest these proceeds in a variety of sectors to enhance the Funds' overall diversification. 6 In addition, we tried to balance the desire for quality with the need to generate income, especially in the newer Funds. For example, while we sold some lower-rated Puerto Rico tobacco bonds from NUO's and NBJ's portfolios, we maintained or added to our holdings in NXI and NVJ because of the higher yields offered by these bonds. We also added new BBB rated and sub-investment grade rated bonds to some of the portfolios to better diversify their lower credit quality holdings. HOW DID THE FUNDS PERFORM? Individual results for the Nuveen Michigan and Ohio Funds, as well as for relevant benchmarks, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE For periods ended 7/31/04 (Annualized) MICHIGAN FUNDS 1-YEAR 5-YEAR 10-YEAR - --------------------------------------------------------------------- NUM 9.52% 7.14% 7.03% - --------------------------------------------------------------------- NMP 8.56% 7.18% 7.37% - --------------------------------------------------------------------- NZW 10.00% NA NA - --------------------------------------------------------------------- Lipper Michigan Municipal Debt Funds Average1 9.13% 7.25% 6.92% - --------------------------------------------------------------------- OHIO FUNDS - --------------------------------------------------------------------- NUO 7.87% 6.51% 7.25% - --------------------------------------------------------------------- NXI 9.54% NA NA - --------------------------------------------------------------------- NBJ 10.33% NA NA - --------------------------------------------------------------------- NVJ 9.72% NA NA - --------------------------------------------------------------------- Lipper Other States Municipal Debt Funds Average2 9.64% 7.01% 7.28% - --------------------------------------------------------------------- Lehman Brothers Municipal Bond Index3 5.79% 6.07% 6.38% - --------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For the 12 months ended July 31, 2004, the total returns on net asset value (NAV) for all seven Funds in this report outperformed the return on the Lehman Brothers index. NUM and NZW also outperformed their Lipper Michigan peer group, while NMP trailed this average. Among the Ohio Funds, NBJ bested the Lipper Other States group average, NVJ and NXI performed roughly in line with this measure, and NUO lagged its peer group. 1 The Lipper Michigan Municipal Debt Funds category average is calculated using the returns of all leveraged and unleveraged closed-end exchange-traded funds in this category for each period as follows: 1 year, 7 funds; 5 years, 5 funds; and 10 years, 4 funds. Fund and Lipper returns assume reinvestment of dividends. 2 The Lipper Other States Municipal Debt Funds category average is calculated using the returns of all leveraged and unleveraged closed-end exchange-traded funds in this category for each period as follows: 1 year, 44 funds; 5 years, 19 funds; and 10 years, 17 funds. Fund and Lipper returns assume reinvestment of dividends. It should be noted that the performance of the Lipper Other States category represents the overall average of annual returns for funds from 10 different states with a wide variety of economic and municipal market conditions and investment guidelines, making direct comparisons less applicable. 3 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 indexes do not reflect any expenses. 7 One of the primary factors benefiting the performance of each of these Funds relative to that of the unleveraged Lehman index was the Funds' use of leverage. While leveraging can add volatility to the Funds' NAVs and share prices, especially when there are substantial shifts in interest rates, this strategy can also provide opportunities for additional income and total returns for common shareholders when short-term interest rates are low and long-term rates are relatively steady or falling. All of these Funds also benefited from their allocations of lower quality bonds, which outperformed higher quality securities as the economy improved. In fact, some of the differences between the returns of these Funds reflect the varying allocations to these lower-rated securities, especially in Michigan. As of July 31, 2004, NZW had the greatest allocation (7%) of bonds rated BBB or lower among the Michigan Funds, while NMP had the lowest (3%). Among the Ohio Funds, NBJ's total return was enhanced by its holdings of BBB rated bonds. One example was the strong performance of bonds issued by Ohio Higher Educational Facilities Commission for Wittenberg University. The healthcare sector, and particularly lower-rated hospital credits, also was a strong performer over the 12 month period. All seven Funds had sizeable allocations to this sector, ranging from 17% in NUO to 16% in NBJ, 15% in NVJ, 14% in NXI, 13% in NUM, 12% in NMP, and 11% in NZW. For at least part of this reporting period, all three Michigan Funds held positions in Ba3 rated bonds issued for Detroit Medical Center, which helped to boost their performance. Similarly, all four Ohio Funds held Baa1 rated Summa Health System bonds issued by the Akron, Bath and Copley Joint Township Hospital District for at least part of the period. Also making a positive contribution to the Ohio Funds' total returns were BBB rated bonds issued by Puerto Rico and backed by revenues from the 1998 master tobacco settlement agreement. These bonds had the largest impact on NVJ. Among the Funds' holdings that did not perform as well during this period were pre-refunded bonds, which underperformed the market as a whole, as measured by the Lehman index. Among the Michigan Funds, NMP had the heaviest weighting of 8 U.S. Guaranteed bonds, while NUO had the highest exposure among the Ohio Funds. We worked to reduce our positions in these bonds over the 12 month period. HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates remaining at historically low levels during this reporting period, the leveraged structures of these seven Funds continued to support their dividend-paying capabilities. The extent of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, the Funds generally pay relatively lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. During this reporting period, this strategy enabled us to implement two dividend increases in NBJ and one increase in NUM and NXI, while helping to maintain the dividends of NMP, NZW, NUO and NVJ throughout the period. In addition, due to capital gains generated by trading activity as part of our yield curve positioning strategy, common shareholders of NUM, NMP, NUO, NXI and NVJ received substantial capital gains and net ordinary income distributions at the end of December 2003. All of these Funds seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of July 31, 2004, all seven of the Funds in this report had positive UNII balances. As of the end of this reporting period, NUO was trading at a premium to its NAV, while the other six Funds were trading at discounts. As of July 31, 2004, all of the Funds were trading at smaller premiums or larger discounts than their average premium or discount over the course of the entire 12 month fiscal year. 9 HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF JULY 31, 2004? Given the current geopolitical and economic climate, we continued to believe that maintaining strong credit quality was an important requirement. As of the end of July 2004, these seven Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 90% in NMP to 89% in NUM, 86% in NZW, 84% in NUO, 77% in NVJ, 75% in NBJ and 71% in NXI. As of July 31, 2004, potential call exposure for these Funds during 2004-2005 ranged from zero in NZW and NVJ to 2% in NBJ, 6% in NUM, 10% in NXI, 12% in NUO and 13% in NMP. The number of actual bond calls in all of the Funds will depend largely on market interest rates. 10 Nuveen Michigan Quality Income Municipal Fund, Inc. NUM Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 77% AA 12% A 6% BBB 3% NR 1% BB or Lower 1% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Aug 0.078 Sep 0.079 Oct 0.079 Nov 0.079 Dec 0.079 Jan 0.079 Feb 0.079 Mar 0.079 Apr 0.079 May 0.079 Jun 0.079 Jul 0.079 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 15.26 15.21 15.23 15.07 15.18 15.28 15.05 15.43 15.51 15.87 15.77 15.83 15.9 16 16.15 16.15 16.25 15.96 15.92 16.47 16.11 16.38 16.5 16.34 16.37 16.37 16.39 16.4 16.53 16.59 16.55 16.43 16.05 15.65 15.22 15.25 15.16 14.7 14.55 14.44 14.77 14.84 14.89 14.75 14.63 14.9 15 15.05 15.07 7/31/04 15.2 FUND SNAPSHOT - ------------------------------------ Share Price $15.20 - ------------------------------------ Common Share Net Asset Value $15.51 - ------------------------------------ Premium/(Discount) to NAV -2.00% - ------------------------------------ Market Yield 6.24% - ------------------------------------ Taxable-Equivalent Yield1 9.04% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $181,114 - ------------------------------------ Average Effective Maturity (Years) 17.00 - ------------------------------------ Leverage-Adjusted Duration 9.31 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 5.17% 9.52% - ------------------------------------ 5-Year 4.78% 7.14% - ------------------------------------ 10-Year 6.58% 7.03% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 29% - ------------------------------------ U.S. Guaranteed 15% - ------------------------------------ Tax Obligation/Limited 15% - ------------------------------------ Healthcare 13% - ------------------------------------ Utilities 9% - ------------------------------------ Water and Sewer 6% - ------------------------------------ Education and Civic Organizations 6% - ------------------------------------ Other 7% - ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders a capital gains and net ordinary income distributions in December 2003 of $0.1083 per share. 11 Nuveen Michigan Premium Income Municipal Fund, Inc. NMP Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 70% AA 20% A 7% BBB 1% BB or Lower 2% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Aug 0.077 Sep 0.077 Oct 0.077 Nov 0.077 Dec 0.077 Jan 0.077 Feb 0.077 Mar 0.077 Apr 0.077 May 0.077 Jun 0.077 Jul 0.077 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 14.71 15.05 14.91 14.6 14.55 14.72 14.83 15.03 15.06 15.5 15.5 15.42 15.55 15.9 15.86 15.89 15.88 15.9 15.53 16.02 15.73 16 16.15 15.97 15.97 15.81 15.88 15.95 16.03 16.1 16.1 16.05 15.75 15.7 15.1 14.26 14.6 14.4 13.85 13.9 14.03 14.08 14.04 14.1 13.82 14.17 14.4 14.5 14.3 7/31/04 14.37 FUND SNAPSHOT - ------------------------------------ Share Price $14.37 - ------------------------------------ Common Share Net Asset Value $15.19 - ------------------------------------ Premium/(Discount) to NAV -5.40% - ------------------------------------ Market Yield 6.43% - ------------------------------------ Taxable-Equivalent Yield1 9.32% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $117,529 - ------------------------------------ Average Effective Maturity (Years) 16.52 - ------------------------------------ Leverage-Adjusted Duration 7.77 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 5.46% 8.56% - ------------------------------------ 5-Year 5.75% 7.18% - ------------------------------------ 10-Year 7.91% 7.37% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 24% - ------------------------------------ Tax Obligation/Limited 19% - ------------------------------------ U.S. Guaranteed 17% - ------------------------------------ Healthcare 12% - ------------------------------------ Utilities 11% - ------------------------------------ Education and Civic Organizations 6% - ------------------------------------ Water and Sewer 5% - ------------------------------------ Housing/Multifamily 5% - ------------------------------------ Other 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 31%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2003 of $0.4099 per share. 12 Nuveen Michigan Dividend Advantage Municipal Fund NZW Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 68% AA 18% A 9% BBB 3% BB or Lower 2% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE Aug 0.0745 Sep 0.0745 Oct 0.0745 Nov 0.0745 Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.0745 Apr 0.0745 May 0.0745 Jun 0.0745 Jul 0.0745 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 15.1 14.98 14.66 14.5 14.45 14.55 14.66 14.8 14.65 15.02 14.98 15.12 15.18 15.06 15.12 15.23 15.25 15.35 15.2 15.6 15.42 15.59 15.84 15.66 15.7 15.79 15.8 15.83 16.07 15.73 15.9 15.96 15.89 14.8 14.2 13.97 14.35 14.1 14.26 13.76 13.97 13.81 13.74 13.65 13.52 13.7 14.01 14.08 14.35 7/31/04 14.65 FUND SNAPSHOT - ------------------------------------ Share Price $14.65 - ------------------------------------ Common Share Net Asset Value $14.82 - ------------------------------------ Premium/(Discount) to NAV -1.15% - ------------------------------------ Market Yield 6.10% - ------------------------------------ Taxable-Equivalent Yield1 8.84% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $30,538 - ------------------------------------ Average Effective Maturity (Years) 19.75 - ------------------------------------ Leverage-Adjusted Duration 6.66 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 2.99% 10.00% - ------------------------------------ Since Inception 4.93% 7.08% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 31% - ------------------------------------ Tax Obligation/Limited 19% - ------------------------------------ Healthcare 11% - ------------------------------------ Utilities 10% - ------------------------------------ U.S. Guaranteed 8% - ------------------------------------ Water and Sewer 8% - ------------------------------------ Education and Civic Organizations 5% - ------------------------------------ Other 8% - ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 13 Nuveen Ohio Quality Income Municipal Fund, Inc. NUO Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 65% AA 19% A 9% BBB 5% NR 1% BB or Lower 1% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Aug 0.0835 Sep 0.0835 Oct 0.0835 Nov 0.0835 Dec 0.0835 Jan 0.0835 Feb 0.0835 Mar 0.0835 Apr 0.0835 May 0.0835 Jun 0.0835 Jul 0.0835 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 17 16.84 16.17 16.14 16.36 16.5 16.65 16.72 16.75 16.74 16.65 16.83 16.92 17.27 17.52 17.2 17.36 17.57 17.73 18.35 18.16 18.18 18.45 18.31 18.1 18.08 18.06 18.35 18.4 18.49 18.73 18.78 18.3 17.78 17.3 16.55 16 15.8 15.31 15.53 15.93 16.09 16.05 15.62 15.72 16.03 16.58 16.62 16.64 7/31/04 16.3 FUND SNAPSHOT - ------------------------------------ Share Price $16.30 - ------------------------------------ Common Share Net Asset Value $16.21 - ------------------------------------ Premium/(Discount) to NAV 0.56% - ------------------------------------ Market Yield 6.15% - ------------------------------------ Taxable-Equivalent Yield1 9.18% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $156,634 - ------------------------------------ Average Effective Maturity (Years) 17.45 - ------------------------------------ Leverage-Adjusted Duration 8.38 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 2.59% 7.87% - ------------------------------------ 5-Year 4.06% 6.51% - ------------------------------------ 10-Year 6.86% 7.25% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 31% - ------------------------------------ Healthcare 17% - ------------------------------------ U.S. Guaranteed 10% - ------------------------------------ Water and Sewer 8% - ------------------------------------ Utilities 7% - ------------------------------------ Housing/Multifamily 6% - ------------------------------------ Education and Civic Organizations 6% - ------------------------------------ Transportation 5% - ------------------------------------ Other 10% - ------------------------------------ 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 33%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2003 of $0.2139 per share. 14 Nuveen Ohio Dividend Advantage Municipal Fund NXI Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 50% AA 21% A 13% BBB 13% NR 1% BB or Lower 2% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Aug 0.0785 Sep 0.081 Oct 0.081 Nov 0.081 Dec 0.081 Jan 0.081 Feb 0.081 Mar 0.081 Apr 0.081 May 0.081 Jun 0.081 Jul 0.081 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 14.2 14.53 14.36 14.45 14.33 14.51 14.4 14.85 14.64 15.09 14.75 14.87 15.12 15.4 15.38 15.4 15.4 16 15.51 16.15 16.25 16.3 16.5 16 16.2 16.9 16.49 16.75 16.95 16.85 16.96 16.92 16.3 15.89 15.1 15.05 14.65 14.19 14.36 14.48 14.56 14.17 14.31 14.44 14.57 14.6 14.81 15 14.86 7/31/04 14.8 FUND SNAPSHOT - ------------------------------------ Share Price $14.80 - ------------------------------------ Common Share Net Asset Value $15.05 - ------------------------------------ Premium/(Discount) to NAV -1.66% - ------------------------------------ Market Yield 6.57% - ------------------------------------ Taxable-Equivalent Yield1 9.81% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $63,642 - ------------------------------------ Average Effective Maturity (Years) 17.89 - ------------------------------------ Leverage-Adjusted Duration 8.42 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 10.70% 9.54% - ------------------------------------ Since Inception 5.58% 7.74% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 27% - ------------------------------------ Education and Civic Organizations 17% - ------------------------------------ Healthcare 14% - ------------------------------------ Tax Obligation/Limited 10% - ------------------------------------ Utilities 9% - ------------------------------------ Water and Sewer 7% - ------------------------------------ Housing/Multifamily 5% - ------------------------------------ Housing/Single Family 4% - ------------------------------------ Other 7% - ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2003 of $0.0170 per share. 15 Nuveen Ohio Dividend Advantage Municipal Fund 2 NBJ Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 63% AA 12% A 11% BBB 11% NR 3% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE Aug 0.075 Sep 0.076 Oct 0.076 Nov 0.076 Dec 0.077 Jan 0.077 Feb 0.077 Mar 0.077 Apr 0.077 May 0.077 Jun 0.077 Jul 0.077 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 14.3 14.59 14.37 13.98 13.91 14.07 14.2 14.45 14.65 14.81 14.56 14.7 14.81 15.11 15.2 15.11 15.17 15.09 15.2 15.64 15.75 16.59 16.15 16.21 16.14 16 15.92 15.97 16.09 15.95 16.11 16.42 15.8 15.12 14.6 14.3 14.05 14.15 13.95 14 14.05 13.76 13.7 13.8 13.77 14.01 14.13 14.62 14.62 7/31/04 14.7 FUND SNAPSHOT - ------------------------------------ Share Price $14.70 - ------------------------------------ Common Share Net Asset Value $14.85 - ------------------------------------ Premium/(Discount) to NAV -1.01% - ------------------------------------ Market Yield 6.29% - ------------------------------------ Taxable-Equivalent Yield1 9.39% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $46,268 - ------------------------------------ Average Effective Maturity (Years) 17.67 - ------------------------------------ Leverage-Adjusted Duration 9.11 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 9.60% 10.33% - ------------------------------------ Since Inception 5.10% 7.23% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 39% - ------------------------------------ Healthcare 16% - ------------------------------------ Tax Obligation/Limited 11% - ------------------------------------ Utilities 9% - ------------------------------------ Consumer Staples 6% - ------------------------------------ Transportation 5% - ------------------------------------ Water and Sewer 5% - ------------------------------------ Other 9% - ------------------------------------ 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 33%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 16 Nuveen Ohio Dividend Advantage Municipal Fund 3 NVJ Performance OVERVIEW As of July 31, 2004 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 57% AA 20% A 16% BBB 7% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Aug 0.073 Sep 0.073 Oct 0.073 Nov 0.073 Dec 0.073 Jan 0.073 Feb 0.073 Mar 0.073 Apr 0.073 May 0.073 Jun 0.073 Jul 0.073 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 8/1/03 14.44 14.21 13.99 13.86 13.71 13.95 14.01 14.2 14.1 14.6 14.38 14.41 14.35 14.6 14.5 14.61 14.74 15.2 15.28 15.95 16.01 15.98 15.92 15.74 16.1 15.99 16.25 16.43 15.95 16.06 16.6 16.55 15.89 15.05 14.6 14.05 13.8 13.35 13.1 13.41 13.6 13.74 13.65 13.26 13.41 13.61 14 14.5 14.2 7/31/04 14.3 FUND SNAPSHOT - ------------------------------------ Share Price $14.30 - ------------------------------------ Common Share Net Asset Value $14.93 - ------------------------------------ Premium/(Discount) to NAV -4.22% - ------------------------------------ Market Yield 6.13% - ------------------------------------ Taxable-Equivalent Yield1 9.15% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $32,208 - ------------------------------------ Average Effective Maturity (Years) 17.29 - ------------------------------------ Leverage-Adjusted Duration 10.27 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year 5.86% 9.72% - ------------------------------------ Since Inception 3.98% 7.93% - ------------------------------------ SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/General 32% - ------------------------------------ Tax Obligation/Limited 15% - ------------------------------------ Healthcare 15% - ------------------------------------ Education and Civic Organizations 9% - ------------------------------------ Water and Sewer 9% - ------------------------------------ Transportation 6% - ------------------------------------ Housing/Single Family 4% - ------------------------------------ Other 10% - ------------------------------------ 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 33%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders a net ordinary income distribution in December 2003 of $0.0677 per share. 17 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. NUVEEN MICHIGAN DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3 We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2 and Nuveen Ohio Dividend Advantage Municipal Fund 3 as of July 31, 2004, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of investments owned as of July 31, 2004, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2 and Nuveen Ohio Dividend Advantage Municipal Fund 3 at July 31, 2004, and the results of their operations, changes in their net assets and the financial highlights for the periods indicated therein in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois September 15, 2004 18 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.1% $ 1,720 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA $ 1,739,402 Series 1998, 5.000%, 10/01/23 - AMBAC Insured 1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,852,641 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 1,607,880 Bonds, Series 2000 XII-T, 5.300%, 9/01/10 (Alternative Minimum Tax) - AMBAC Insured 1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 1,029,470 Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative Minimum Tax) - AMBAC Insured Michigan Technological University, General Revenue Bonds, Series 2004A: 1,060 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 1,098,181 1,115 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,148,405 1,170 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,198,899 1,000 Oakland University, Michigan, General Revenue Bonds, 5/05 at 102.00 AAA 1,048,030 Series 1995, 5.750%, 5/15/15 - 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 3,672,981 1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,011,330 1,000 Western Michigan University, General Revenue Refunding 11/13 at 100.00 AAA 1,042,580 Bonds, Series 2003, 5.000%, 11/15/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 18.8% 2,900 Dearborn Hospital Finance Authority, Michigan, Economic 11/05 at 102.00 AAA 3,077,567 Development Corporation, Hospital Revenue Bonds, Oakwood Obligated Group, Series 1995A, 5.875%, 11/15/25 - FGIC Insured 1,235 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,249,931 Mortgage Hospital Revenue Bonds, Portage Health System, Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured 3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 3,592,610 Spectrum Health, Series 2001A, 5.250%, 1/15/21 2,052 Michigan State Hospital Finance Authority, Collateralized No Opt. Call Baa2 2,060,289 Loan, Detroit Medical Center, Series 2001, 7.360%, 4/01/07 1,500 Michigan State Hospital Finance Authority, Hospital 3/13 at 100.00 A1 1,581,315 Revenue Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101.00 A 1,063,950 Bonds, OSF Healthcare System, Series 1999, 6.125%, 11/15/19 1,700 Michigan State Hospital Finance Authority, Revenue 8/09 at 101.00 AAA 1,857,709 Refunding Bonds, Mercy Health Services Obligated Group, Series 1999X, 5.750%, 8/15/19 - MBIA Insured Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Mercy Mount Clemens Corporation Obligated Group, Series 1999A: 3,385 5.750%, 5/15/17 - MBIA Insured 5/09 at 101.00 AAA 3,690,090 500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 525,765 2,700 Michigan State Hospital Finance Authority, Hospital 8/08 at 101.00 Ba3 1,890,702 Revenue Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101.00 BBB 1,005,250 Bonds, Memorial Healthcare Center Obligated Group, Series 1999, 5.875%, 11/15/21 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 5,231,250 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 5,559,290 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 1,731,592 Series 1991, 0.000%, 12/01/10 19 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.6% $ 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA $ 2,787,430 Obligation Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) 1,800 Michigan Housing Development Authority, FNMA Enhanced 9/15 at 100.00 Aaa 1,811,070 Limited Obligation Multifamily Revenue Bonds, Renaissance Apartments, Series 2002, 5.500%, 8/01/35 (Alternative Minimum Tax) 3,550 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 3,661,825 Revenue Bonds, Series 1995B, 6.150%, 10/01/15 - MBIA Insured 3,595 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 3,618,583 Revenue Bonds, Series 1999A, 5.300%, 10/01/37 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.6% 1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,043,060 Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.8% 3,300 Michigan State Hospital Finance Authority, Revenue 1/07 at 102.00 N/R 2,999,370 Bonds, Presbyterian Villages of Michigan Obligated Group, Series 1997, 6.375%, 1/01/25 200 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+ 191,686 Refunding Bonds, Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 43.3% Allegan County Public School District, Michigan, General Obligation Bonds, Series 2000: 1,850 5.600%, 5/01/20 - FSA Insured 5/10 at 100.00 AAA 2,025,509 1,435 5.750%, 5/01/30 - FSA Insured 5/10 at 100.00 AAA 1,541,305 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+ 2,563,875 4,200 5.000%, 5/01/29 5/11 at 100.00 AA+ 4,205,628 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA+ 1,011,130 Michigan, General Obligation Refunding Bonds, Series 2002, 5.000%, 5/01/25 1,000 Belding School District, Ionia, Kent and Montcalm Counties, 5/08 at 100.00 AAA 1,003,820 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 1,254,348 Series 2002, 5.000%, 10/01/20 1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA+ 1,457,729 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+ 2,247,656 Counties, Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20 1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,028,940 General Obligation Unlimited Tax School Building and Site Bonds, Series 1999, 5.250%, 5/01/25 - FGIC Insured 2,000 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100.00 AAA 2,086,120 Bonds, School Bond Loan Fund - QSBLF, Series 1997, 5.250%, 5/01/23 - MBIA Insured 2,000 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 2,372,060 General Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured 1,000 East China School District, St. Clair County, Michigan, 11/11 at 100.00 AA+ 1,087,260 General Obligation Bonds, Series 2001, 5.500%, 5/01/20 1,085 Freeland Community School District, Saginaw, Midland, 5/10 at 100.00 AA+ 1,157,684 and Bay Counties, Michigan, General Obligation Bonds, Series 2000, 5.250%, 5/01/19 3,300 Grand Ledge Public Schools, Eaton, Clinton and Ionia 5/05 at 102.00 AAA 3,432,099 Counties, Michigan, General Obligation Refunding Bonds, Series 1995, 5.375%, 5/01/24 - MBIA 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 2,831,713 3,000 0.000%, 12/01/26 No Opt. Call AAA 889,020 1,400 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA+ 1,448,650 General Obligation Bonds, Series 2003, 5.000%, 5/01/21 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA+ $ 1,650,255 Michigan, General Obligation Bonds, Series 2001, 5.500%, 5/01/17 2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA+ 2,028,720 General Obligation Bonds, Series 2002, 5.000%, 5/01/24 725 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 748,410 Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 1995, 5.500%, 5/01/20 - AMBAC Insured 1,790 Lansing Building Authority, Michigan, General Obligation 6/13 at 100.00 AAA 1,804,517 Bonds, Series 2003A, 5.000%, 6/01/26 - MBIA Insured 1,785 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,852,562 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 4,000 Michigan, General Obligation Bonds, Environmental 5/13 at 100.00 AA+ 4,291,080 Protection Program, Series 2003A, 5.250%, 5/01/20 4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,436,267 Facility Improvement General Obligation Bonds, Series 2000, 5.250%, 5/01/25 - AMBAC Insured 2,500 Montrose School District, Michigan, School Building and No Opt. Call AAA 2,939,725 Site Bonds, Series 1997, 6.000%, 5/01/22 - MBIA Insured 1,255 Morenci Area Schools, Lenawee County, Michigan, General 5/12 at 100.00 AAA 1,339,123 Obligation Bonds, Series 2002, 5.250%, 5/01/19 - MBIA Insured 1,000 Muskegon Heights Public Schools, Muskegon County, 5/09 at 100.00 AAA 1,001,810 Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 5.000%, 5/01/29 - MBIA Insured 1,625 Northville Public Schools, Wayne County, Michigan, General 11/11 at 100.00 AA+ 1,757,763 Obligation Bonds, Series 2001, 5.375%, 5/01/18 1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,032,440 Obligation Bonds, Series 2002, 5.125%, 9/01/22 1,225 Paw Paw Public School District, Van Buren, Michigan, No Opt. Call AAA 1,301,648 General Obligation Refunding Bonds, Series 1998, 5.000%, 5/01/21 - FGIC Insured 4,000 Pinckney Community Schools, Livingston and Washtenaw 5/07 at 100.00 AAA 4,182,600 Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1997, 5.500%, 5/01/27 - FGIC Insured 4,200 Puerto Rico, Public Improvement General Obligation Refunding No Opt. Call AAA 4,784,346 Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured 685 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101.00 AAA 710,249 Building and Site Refunding Bonds, Series 1995, 5.750%, 5/01/15 - FGIC Insured 2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,656,950 General Obligation Bonds, Series 2000, 5.125%, 3/01/17 - AMBAC Insured 1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,133,055 Counties, Michigan, General Obligation Bonds, Series 2001, 5.375%, 5/01/19 - FSA Insured 1,980 Washtenaw County Building Authority, Michigan, Limited 9/07 at 100.00 AAA 2,124,104 Tax General Obligation Bonds, Series 1999, 5.400%, 9/01/17 - FGIC Insured 1,125 Whitehall District Schools, Muskegon County, Michigan, 11/11 at 100.00 AA+ 1,237,691 General Obligation Bonds, Series 2001, 5.500%, 5/01/17 1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 1,893,205 Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.9% 1,800 Dearborn Heights Tax Increment Financing Authority, 10/10 at 100.00 AAA 1,810,782 Wayne County, Michigan, Limited Tax General Obligation Bonds, Police and Courthouse Facility Project, Series 2001A, 5.000%, 10/01/26 - MBIA Insured 1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,083,240 Limited Tax General Obligation Bonds, Series 1998, 5.000%, 4/01/16 1,145 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,164,351 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured 21 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,100 Michigan Municipal Bond Authority, Clean Water Revolving 10/12 at 100.00 AAA $ 1,186,053 Fund Revenue Refunding Bonds, Series 2002, 5.250%, 10/01/18 75 Michigan Municipal Bond Authority, Local Government Loan 11/04 at 100.00 A 75,308 Program Revenue Sharing Bonds, Series 1992D, 6.650%, 5/01/12 4,210 Michigan Municipal Bond Authority, Clean Water Revolving 10/14 at 100.00 AAA 4,448,665 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19 750 Michigan State Building Authority, Revenue Refunding 10/09 at 100.00 AA 739,800 Bonds, Facilities Program, Series 1998-I, 4.750%, 10/15/21 Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003-II: 5,100 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,253,306 5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,123,900 Michigan State, Certificates of Participation, Series 2000: 2,000 5.500%, 6/01/19 - AMBAC Insured 6/10 at 100.00 AAA 2,185,540 2,000 5.500%, 6/01/27 - AMBAC Insured 6/10 at 100.00 AAA 2,092,540 1,000 Michigan State Trunk Line, Trunk Line Fund Bonds, 11/11 at 100.00 AAA 1,011,750 Series 2001A, 5.000%, 11/01/25 3,500 Michigan State Trunk Line, Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,698,415 5.250%, 10/01/21 - FSA Insured 1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,107,304 Revenue Bonds, Wastewater Management System 2, Series 2002, 5.000%, 7/01/26 - FGIC Insured 4,100 Puerto Rico Highway and Transportation Authority, 7/16 at 100.00 A 4,264,287 Highway Revenue Bonds, Series 1996Y, 5.500%, 7/01/36 915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,030,336 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,142,100 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.2% 1,000 Capital Region Airport Authority, Michigan, Revenue 7/12 at 100.00 AAA 1,030,310 Refunding Bonds, Series 2002, 5.250%, 7/01/21 (Alternative Minimum Tax) - MBIA Insured 1,195 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 1,196,864 Metropolitan Airport, Series 1998B, 4.875%, 12/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.5% 2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,483,876 Michigan, General Obligation Bonds, Series 1999I, 6.000%, 5/01/29 (Pre-refunded to 5/01/09) - FGIC Insured 250 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 270,890 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 1,000 Detroit, Michigan, Sewerage Disposal System Revenue 1/10 at 101.00 AAA 1,142,400 Bonds, Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1997A: 950 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,042,958 2,050 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 2,250,593 2,000 Detroit, Michigan, Water Supply System Senior Lien Revenue 1/10 at 101.00 AAA 2,272,440 Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured Detroit, Michigan, Water Supply System Senior Lien Revenue Bonds, Series 2001A: 3,400 5.750%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 3,906,702 770 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 855,147 2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,268,380 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded to 5/01/09) - FSA Insured 2,000 Grand Rapids Township Economic Development Corporation, 7/09 at 101.00 BBB+*** 2,231,520 Michigan, Limited Obligation Revenue Bonds, Porter Hills Obligated Group, Cook Valley Estate Project, Series 1999, 5.450%, 7/01/29 (Pre-refunded to 7/01/09) 1,000 Mancelona Public School District, Michigan, General 5/06 at 100.00 AAA 1,056,810 Obligation Bonds, Antrim and Kalkaska Counties, Series 1997, 5.200%, 5/01/17 (Pre-refunded to 5/01/06) - FGIC Insured 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 1,000 Michigan State, Certificates of Participation, New Center 9/11 at 100.00 AAA $ 1,120,200 Development Inc., Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) - MBIA Insured Michigan State Hospital Finance Authority, Revenue Bonds, Ascension Health Credit Group, Series 1999A: 1,000 6.125%, 11/15/23 (Pre-refunded to 11/15/09) - MBIA Insured 11/09 at 101.00 AAA 1,153,970 2,500 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 11/09 at 101.00 AAA 2,884,925 3,460 Michigan State Hospital Finance Authority, Revenue 5/08 at 101.00 AAA 3,494,323 Refunding Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 - AMBAC Insured 1,100 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+*** 1,215,808 Refunding Bonds, Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 (Pre-refunded to 7/01/08) 2,875 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,258,554 Michigan, General Obligation Bonds, Series 2000A, 5.750%, 5/01/24 (Pre-refunded to 5/01/10) - FGIC Insured 1,125 Puerto Rico Highway and Transportation Authority, 7/10 at 101.00 A*** 1,301,940 Highway Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded to 7/01/10) 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+*** 96,326 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,133,410 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured 2,100 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 2,358,678 Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded to 5/01/09) - FGIC Insured 2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,967,224 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 5.900%, 5/01/18 (Pre-refunded to 5/01/10) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.4% 3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,089,910 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 4,475 Michigan South Central Power Agency, Power Supply No Opt. Call Baa1 4,865,623 System Revenue Bonds, Series 2000, 6.000%, 5/01/12 3,630 Michigan Strategic Fund, Limited Obligation Refunding No Opt. Call AAA 4,646,944 Revenue Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured 2,000 Michigan Strategic Fund, Limited Obligation Remarketed No Opt. Call Aaa 2,127,020 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) 4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 4,043,080 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 3,000 Michigan Strategic Fund, Limited Obligation Revenue 12/12 at 100.00 AAA 3,058,560 Refunding Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,028,230 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 412,972 Series 2000HH, 5.250%, 7/01/29 - FSA Insured 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,021,840 Series 1995X, 5.500%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.5% 1,500 Detroit, Michigan, Sewerage Disposal System Revenue 7/05 at 101.00 AAA 1,549,245 Refunding Bonds, Series 1995B, 5.250%, 7/01/21 - MBIA Insured 1,730 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 7/07 at 101.00 AAA 1,762,299 Series 1997A, 5.000%, 7/01/22 - MBIA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,634,340 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 2,108,040 Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 23 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Detroit, Michigan, Water Supply System Senior Lien Revenue Bonds, Series 2003A: $ 4,025 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA $ 4,081,229 3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 3,031,080 730 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 100.00 AAA 743,308 Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured Muskegon Heights, Muskegon County, Michigan, Water Supply System Revenue Bonds, Series 2000A: 1,040 5.625%, 11/01/25 - MBIA Insured 11/10 at 100.00 Aaa 1,114,246 1,160 5.625%, 11/01/30 - MBIA Insured 11/10 at 100.00 Aaa 1,229,634 - ------------------------------------------------------------------------------------------------------------------------------------ $ 265,872 Total Long-Term Investments (cost $256,161,806) - 149.7% 271,190,724 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 3,923,381 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.9)% (94,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 181,114,105 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 24 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.0% Eastern Michigan University, General Revenue Bonds, Series 2003: $ 1,000 5.000%, 6/01/28 - FGIC Insured 6/13 at 100.00 AAA $ 1,004,540 2,950 5.000%, 6/01/33 - FGIC Insured 6/13 at 100.00 AAA 2,950,856 2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,058,940 Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative Minimum Tax) - AMBAC Insured 1,000 Saginaw Valley State University, Michigan, General Revenue 7/09 at 100.00 Aaa 1,059,830 Bonds, Series 1999, 5.625%, 7/01/29 - AMBAC Insured 3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 3,539,655 Series 1999, 5.125%, 11/15/29 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 17.0% 2,050 Dearborn Hospital Finance Authority, Michigan, Economic 11/05 at 102.00 AAA 2,175,522 Development Corporation, Hospital Revenue Bonds, Oakwood Obligated Group, Series 1995A, 5.875%, 11/15/25 - FGIC Insured 2,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 2,226,598 Mortgage Hospital Revenue Bonds, Portage Health System, Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: 2,000 6.250%, 8/15/13 8/04 at 101.00 Ba3 1,754,280 1,200 6.500%, 8/15/18 8/04 at 101.00 Ba3 1,040,640 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,581,315 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 2,000 Michigan State Hospital Finance Authority, Hospital Revenue 1/05 at 102.00 AA- 2,049,540 Refunding Bonds, Otsego Memorial Hospital, Series 1995, 6.250%, 1/01/20 4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,206,120 Refunding Bonds, Mercy Mount 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 A1 505,565 Refunding Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 4,498,875 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.8% 1,000 Michigan Housing Development Authority, GNMA 4/12 at 102.00 Aaa 1,017,090 Collateralized Limited Obligation Multifamily Housing Revenue Bonds, Burkshire Pointe Apartments, Series 2002A, 5.400%, 10/20/32 (Alternative Minimum Tax) 500 Michigan Housing Development Authority, FNMA Enhanced 9/15 at 100.00 Aaa 513,945 Limited Obligation Multifamily Revenue Bonds, Renaissance Apartments, Series 2002, 5.350%, 8/01/22 (Alternative Minimum Tax) 2,400 Michigan Housing Development Authority, Limited Obligation 10/04 at 103.00 AAA 2,473,344 Revenue Bonds, Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 - FSA Insured 1,500 Michigan Housing Development Authority, Limited Obligation 10/04 at 102.00 AAA 1,529,610 Revenue Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - FSA Insured Mount Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: 925 6.600%, 6/01/13 12/04 at 101.00 AAA 935,332 1,500 6.600%, 6/01/22 12/04 at 101.00 AAA 1,515,255 25 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.0% $ 2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA+ $ 2,563,875 Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/21 1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA+ 1,526,256 Michigan, General Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,000 Central Montcalm Public Schools, Montcalm and Ionia 5/09 at 100.00 AAA 1,091,630 Counties, Michigan, General Obligation Unlimited Tax School Building and Site Bonds, Series 1999, 5.750%, 5/01/24 - MBIA Insured 1,375 Chippewa Valley Schools, Macomb County, Michigan, 5/11 at 100.00 AA+ 1,382,329 General Obligation Bonds, Series 2001, 5.000%, 5/01/26 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 2,154,931 750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 889,643 2,500 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 2,555,825 General Obligation Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC Insured 500 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 542,425 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 - FSA Insured 3,815 East Lansing Building Authority, Ingham and Clinton 4/11 at 100.00 AA 3,975,116 Counties, Michigan, Unlimited Tax General Obligation Building Authority Bonds, Series 2000, 5.375%, 4/01/25 2,000 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA+ 2,057,320 General Obligation Bonds, Series 2003, 5.000%, 5/01/22 1,000 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA+ 1,029,890 Obligation Bonds, Series 2004, 5.000%, 5/01/22 1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,037,850 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured Michigan, General Obligation Bonds, Environmental Protection Program, Series 2003A: 1,000 5.250%, 5/01/20 5/13 at 100.00 AA+ 1,072,770 2,000 5.250%, 5/01/21 5/13 at 100.00 AA+ 2,134,980 2,515 Plainwell Community Schools, Allegan County, Michigan, 11/12 at 100.00 AA+ 2,522,897 General Obligation Bonds, Series 2002, 5.000%, 5/01/28 380 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101.00 AAA 394,007 Building and Site Refunding Bonds, Series 1995, 5.750%, 5/01/15 - FGIC Insured South Lyon Community Schools, Oakland, Washtenaw and Livingston Counties, Michigan, General Obligation Bonds, Series 2003: 2,350 5.250%, 5/01/19 - FGIC Insured 11/12 at 100.00 AAA 2,507,779 1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,656,128 1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,528,883 Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/20 - MBIA Insured 2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA+ 3,014,629 Counties, Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 2,950 West Bloomfield School District, Oakland County, Michigan, 5/14 at 100.00 AAA 3,042,866 General Obligation Bonds, Series 2004, 5.000%, 5/01/22 (WI, settling 8/12/04) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 28.7% 7,000 Detroit-Wayne County Stadium Authority, Michigan, 2/07 at 102.00 AAA 7,135,870 Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured 1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 AA 1,613,760 Program, Series 2000-I, 5.375%, 10/15/20 Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2001-I: 2,570 5.500%, 10/15/19 10/11 at 100.00 AA 2,815,409 6,500 5.000%, 10/15/24 10/11 at 100.00 AA 6,587,815 Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003-II: 5,000 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,150,300 2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,541,454 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,500 Michigan State, Comprehensive Transportation Revenue 11/11 at 100.00 AAA $ 1,559,040 Refunding Bonds, Series 2001A, 5.000%, 11/01/19 - FSA Insured 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 1,629,525 4,670 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,680,741 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.4% 1,000 Puerto Rico Ports Authority, Special Facilities Revenue 12/04 at 101.00 CCC 672,790 Bonds, American Airlines Inc., Series 1993A, 6.300%, 6/01/23 (Alternative Minimum Tax) 1,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 1,001,560 Metropolitan Airport, Series 1998B, 4.875%, 12/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 25.6% 355 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 384,664 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 2,000 Detroit, Michigan, Sewerage Disposal System Revenue 1/10 at 101.00 AAA 2,284,800 Bonds, Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1,370 Detroit, Michigan, Sewerage Disposal System Revenue 7/07 at 101.00 AAA 1,504,055 Bonds, Series 1997A, 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 1,385 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 100.00 AAA 1,538,153 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 4,000 Detroit, Michigan, Water Supply System Senior Lien Revenue 1/10 at 101.00 AAA 4,544,880 Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 2,500 Kalamazoo Hospital Finance Authority, Michigan, Hospital 5/06 at 102.00 AAA 2,714,950 Revenue Refunding and Improvement Bonds, Bronson Methodist Hospital, Series 1996, 5.750%, 5/15/16 (Pre-refunded to 5/15/06) - MBIA Insured 2,000 Michigan Municipal Bond Authority, Drinking Water 10/09 at 101.00 AAA 2,252,280 Revolving Fund Revenue Bonds, Series 1999, 5.500%, 10/01/21 (Pre-refunded to 10/01/09) 1,000 Michigan State, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,120,200 Development Inc., Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) - MBIA Insured 3,000 Michigan State Hospital Finance Authority, Hospital 10/04 at 101.00 AAA 3,154,470 Revenue Refunding Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 - AMBAC Insured 2,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/09 at 101.00 AAA 2,884,925 Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,397,344 Michigan, General Obligation Bonds, Series 2000A, 5.625%, 5/01/16 (Pre-refunded to 5/01/10) - FGIC Insured 620 Reeths-Puffer Schools, Muskegon County, Michigan, 5/05 at 101.00 AAA 645,935 School Building and Site Refunding Bonds, Series 1995, 5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,133,410 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured 1,500 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 1,684,770 Unlimited Tax General Obligation School Building and Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded to 5/01/09) - FGIC Insured 2,500 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,840,050 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 5.800%, 5/01/17 (Pre-refunded to 5/01/10) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 16.7% 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,029,970 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 1,000 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 1,087,290 Revenue Bonds, Series 2000, 6.000%, 5/01/12 3,500 Michigan Strategic Fund, Collateralized Limited Obligation 12/04 at 101.00 AAA 3,547,495 Revenue Refunding Bonds, Consumers Power Company Project, Series 1993B, 5.800%, 6/15/10 - CAPMAC Insured 27 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,000 Michigan Strategic Fund, Limited Obligation Remarketed No Opt. Call Aaa $ 3,190,530 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) 5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 5,053,850 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 3,000 Michigan Strategic Fund, Limited Obligation Revenue 12/12 at 100.00 AAA 3,058,560 Refunding Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,028,230 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 10/08 at 101.00 AAA 1,630,575 Series 2002, 5.375%, 10/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.0% 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call AAA 1,634,340 Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 4,960 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 5,227,939 Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 1,315 Detroit, Michigan, Water Supply System Senior Lien Revenue Bonds, 7/11 at 100.00 AAA 1,338,971 Series 2001A, 5.250%, 7/01/33 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 163,245 Total Long-Term Investments (cost $162,995,762) - 145.2% 170,619,781 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 2.3% 2,700 Puerto Rico Government Development Bank, Adjustable Refunding A-1 2,700,000 Bonds, Variable Rate Demand Obligations, Series 1985, 1.020%, 12/01/15 - MBIA Insured+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 2,700 Total Short-Term Investments (cost $2,700,000) 2,700,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $165,695,762) - 147.5% 173,319,781 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.1% 209,093 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.6)% (56,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 117,528,874 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 28 Nuveen Michigan Dividend Advantage Municipal Fund (NZW) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.2% $ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa $ 1,157,797 Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%, 9/01/26 - AMBAC Insured 1,010 Michigan Technological University, General Revenue Bonds, 10/13 at 100.00 AAA 1,052,551 Series 2004A, 5.000%, 10/01/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.9% 1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 1,026,460 Spectrum Health, Series 2001A, 5.250%, 1/15/21 1,200 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Ba3 1,061,472 Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16 500 Michigan State Hospital Finance Authority, Hospital Revenue 5/06 at 102.00 A1 503,970 Refunding Bonds, Henry Ford Health System, Series 1995A, 5.250%, 11/15/20 750 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 758,348 Refunding Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 1,819,404 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.7% 1,700 Michigan Housing Development Authority, GNMA 8/12 at 102.00 Aaa 1,735,258 Collateralized Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.3% 1,250 Michigan Housing Development Authority, Single 1/11 at 100.00 AAA 1,303,825 Family Mortgage Revenue Bonds, Series 2001, 5.300% 12/01/16 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.6% 500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 477,220 Republic Services Inc., Series 2001, 4.250%, 8/01/31 (Alternative Minimum Tax) (Mandatory put 4/01/14) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 46.1% 1,000 Detroit City School District, Wayne County, Michigan, 5/13 at 100.00 AAA 1,054,880 General Obligation Bonds, Series 2002A, 5.375%, 5/01/24 - FGIC Insured 1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,084,850 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 - FSA Insured 1,000 Durand Area Schools, Shiawasee County, Michigan, General 5/07 at 100.00 AAA 1,055,580 Obligation Bonds, Series 1997, 5.375%, 5/01/23 - FGIC Insured 1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA+ 1,005,330 Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26 2,200 Huron School District, Wayne and Monroe Counties, Michigan, 5/11 at 100.00 AAA 2,282,962 General Obligation Bonds, Series 2001, 5.375%, 5/01/26 - FSA Insured 1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA+ 1,507,410 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 1,050 Lawton Community Schools, Van Buren County, Michigan, 11/11 at 100.00 AA+ 1,136,488 General Obligation Bonds, Series 2001, 5.500%, 5/01/21 1,000 Oxford Area Community Schools, Oakland and Lapeer 11/11 at 100.00 AA+ 1,100,170 Counties, Michigan, General Obligation Bonds, Series 2001, 5.500%, 5/01/17 665 Puerto Rico, Public Improvement General Obligation Bonds, 7/11 at 100.00 Baa1 665,160 Series 2001A, 5.125%, 7/01/31 500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 518,805 Obligation Bonds, Series 2001, 5.150%, 11/01/22 - FGIC Insured 29 Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) 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 $ 518,500 800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 826,256 1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA+ 1,333,215 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 28.5% 1,300 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,321,970 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured 1,205 Michigan State Building Authority, Revenue Refunding Bonds, 10/11 at 100.00 AA 1,221,280 Facilities Program, Series 2001-I, 5.000%, 10/15/24 2,000 Michigan State Trunk Line, Trunk Line Fund Bonds, 11/11 at 100.00 AAA 2,023,500 Series 2001A, 5.000%, 11/01/25 1,450 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,459,628 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,030,336 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 1,650 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,653,795 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.4% 515 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 100.00 AAA 571,949 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 1,000 Michigan Municipal Bond Authority, Drinking Water Revolving 10/10 at 101.00 AAA 1,154,730 Fund Revenue Bonds, Series 2000, 5.875%, 10/01/17 (Pre-refunded to 10/01/10) 335 Puerto Rico, Public Improvement General Obligation Bonds, 7/11 at 100.00 Aaa 370,356 Series 2001A, 5.125%, 7/01/31 (Pre-refunded to 7/01/11) 500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 528,590 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+*** 96,326 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 1,000 Rochester Community School District, Oakland and 11/11 at 100.00 AA+*** 1,066,640 Macomb Counties, Michigan General Obligation Bonds, Series 2001II, 5.500%, 5/01/22 (Pre-refunded to 11/01/11) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.3% 1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,154,304 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 1,282,177 Turbine 1 Project, Series 2001A, 5.250%, 1/01/24 - AMBAC Insured 2,215 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 2,235,444 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 (Alternative Minimum Tax) 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.9% $ 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA $ 1,089,560 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 1,054,020 Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured Detroit, Michigan, Water Supply System Senior Lien Revenue Bonds, Series 2001A: 1,000 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 997,800 485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 493,841 - ------------------------------------------------------------------------------------------------------------------------------------ $ 44,380 Total Long-Term Investments (cost $44,626,861) - 149.9% 45,792,157 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 746,287 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.4)% (16,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 30,538,444 ====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT JULY 31, 2004: SWAP UNREALIZED NOTIONAL EFFECTIVE TERMINATION APPRECIATION AMOUNT DATE(2) DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------------------------ Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional amount multiplied by 4.495% and receive quarterly the notional amount multiplied by the one-week BMA Municipal Swap Index. $1,100,000 12/13/04 12/13/24 $(18,311) Agreement with Morgan Stanley dated July 15, 2004, to pay semi-annually the notional amount multiplied by 5.717% and receive quarterly the notional amount multiplied by the three-month USD-LIBOR. 1,200,000 1/14/05 1/14/35 (7,276) Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional amount multiplied by 5.805% and receive quarterly the notional amount multiplied by the three-month USD-LIBOR. 2,100,000 2/02/05 2/02/25 (39,041) - ------------------------------------------------------------------------------------------------------------------------------------ $(64,628) ====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. (2) Effective date represents the date on which both the Fund and counterparty commence interest settlements on each forward swap contract. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. See accompanying notes to financial statements. 31 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.6% $ 2,815 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,458,959 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 8.8% 2,225 Ohio State Education Student Loan Revenue Bonds, 6/07 at 102.00 AAA 2,324,992 Supplemental Student Loan Program, Series 1997A-1, 5.850%, 12/01/19 (Alternative Minimum Tax) - AMBAC Insured 1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/04 at 102.00 AAA 1,034,310 University of Dayton Project, Series 1994, 5.800%, 12/01/14 - FGIC Insured 1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,204,932 Bonds, University of Findlay, Series 1996, 6.125%, 9/01/16 1,415 Ohio Higher Educational Facilities Commission, Revenue 11/14 at 100.00 AA 1,456,092 Bonds, Denison University, Series 2004, 5.000%, 11/01/21 1,750 Ohio Higher Education Facilities Commission, General Revenue 10/13 at 100.00 AA 1,795,325 Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 1,200 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,215,588 Series 2002A, 5.125%, 12/01/31 3,000 Ohio State University, General Receipts Bonds, 6/13 at 100.00 AA 3,159,000 Series 2003B, 5.250%, 6/01/22 1,510 University of Akron, Ohio, General Receipts Bonds, 1/13 at 100.00 AAA 1,565,055 Series 2003A, 5.000%, 1/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 24.6% 2,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 1,942,120 Ohio, Hospital Facilities Revenue Bonds, Summa Health System Project, Series 1998A, 5.375%, 11/15/24 1,000 Cuyahoga County, Ohio, Hospital Improvement and Revenue 2/07 at 102.00 AAA 1,084,960 Refunding Bonds, MetroHealth System Project, Series 1997, 5.625%, 2/15/17 - MBIA Insured 2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 A1 2,118,060 Cleveland Clinic Health System, Series 2003A, 6.000%, 1/01/32 4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 4,509,360 Firelands Regional Medical Center, Series 2002A, 5.625%, 8/15/32 1,700 Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth 5/13 at 100.00 AAA 1,681,946 Corporation, Series 2003C, 5.000%, 5/15/33 - MBIA Insured Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Children's Hospital Project, Series 1996A: 1,000 5.750%, 11/01/20 11/06 at 101.00 Aa2 1,030,180 1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,536,780 2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 AAA 2,649,804 Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured 2,500 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,624,950 Improvement Bonds, The Community Hospital, Series 1996, 6.375%, 5/15/11 2,405 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,493,191 and Improvement Bonds, Upper Valley Medical Center, Series 1996A, 6.250%, 5/15/16 1,500 Montgomery County, Ohio, Hospital Facilities Revenue 4/06 at 102.00 AAA 1,602,330 Refunding and Improvement Bonds, Kettering Medical Center, Series 1996, 5.625%, 4/01/16 - MBIA Insured 3,000 Montgomery County, Ohio, Hospital Facilities Revenue 4/10 at 101.00 A3 3,287,370 Bonds, Kettering Medical Center, Series 1999, 6.750%, 4/01/18 6,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 5,950,320 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29 2,500 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,623,700 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 $ 1,601,235 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 1,828,220 Union Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.5% 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 8/04 at 102.00 Aaa 1,407,700 Revenue Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 1,000 Cuyahoga County, Ohio, GNMA Collateralized Mortgage 9/10 at 102.00 Aaa 1,008,000 Revenue Bonds, West Tech Apartments Project, Series 2002A, 5.350%, 3/20/33 (Alternative Minimum Tax) 1,435 Cuyahoga County, Ohio, GNMA Collateralized Loan 6/08 at 105.00 Aaa 1,515,374 Multifamily Housing Revenue Bonds, Water Street Associates Project, Series 1997, 6.150%, 12/20/26 (Alternative Minimum Tax) Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Longwood Phase One Associates LP Project, Series 2001A: 2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,561,402 2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,293,268 1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 1,016,600 Housing Revenue Bonds, Livingston Park, Series 2002A, 5.350%, 9/20/27 (Alternative Minimum Tax) 985 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/05 at 103.00 Aa 997,500 Mortgage Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) 4,060 Lucas Northgate Housing Development Corporation, Ohio, 1/05 at 101.00 Aaa 4,114,769 FHA-Insured Mortgage Revenue Refunding Bonds, Northgate Apartments Section 8 Assisted Project, Series 1999A, 6.000%, 7/01/24 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.4% 135 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/09 at 100.00 Aaa 135,541 Securities Program, Residential Mortgage Revenue Bonds, Series 2000A-1, 6.350%, 9/01/31 (Alternative Minimum Tax) 2,025 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,076,374 Securities Program, Residential Mortgage Revenue Bonds, Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax) 3,665 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 3,763,992 Securities Program, Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured 3,260 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 3,301,467 Securities Program, Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax) 705 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 716,668 Securities Program, Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.3% 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 960,700 Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23 1,000 Marion County, Ohio, Healthcare Facilities Revenue 11/04 at 101.00 BBB- 1,009,130 Refunding and Improvement Bonds, United Church Homes Inc., Series 1993, 6.300%, 11/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 44.7% 1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,088,370 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 1,009,930 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 270 Berea City School District, Ohio, General Obligation Unlimited 12/04 at 101.00 AAA 276,739 Tax School Improvement Bonds, Series 1993, 7.500%, 12/15/06 - AMBAC Insured Butler County, Ohio, General Obligation Judgment Bonds, Series 2002: 2,030 5.250%, 12/01/21 12/12 at 101.00 Aa3 2,160,022 2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,263,628 Butler County, Ohio, General Obligation Bonds, Series 2002: 1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,398,329 1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,240,164 33 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS July 31,2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,560 Canal Winchester Local School District, Franklin and Fairfield 12/11 at 100.00 Aaa $ 1,566,365 Counties, Ohio, School Facilities Construction and Improvement Bonds, Series 2001B, 5.000%, 12/01/28 - FGIC Insured 1,000 Central Ohio Solid Waste Authority, General Obligation Bonds, 6/14 at 100.00 AAA 1,073,450 Series 2004A, 5.000%, 12/01/15 - AMBAC Insured 1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,094,600 General Obligation Bonds, Series 2001, 5.375%, 12/01/15 - MBIA Insured 2,600 Cincinnati City School District, Hamilton County, Ohio, 12/12 at 100.00 AAA 2,753,608 General Obligation Bonds, Series 2002, 5.250%, 6/01/21 - FSA Insured 1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,080,070 5.250%, 12/01/19 - AMBAC Insured 1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,033,870 Bonds, Series 2000A, 5.000%, 12/01/20 1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,033,470 Counties, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 - FSA Insured 1,300 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 1,417,429 Refunding Bonds, Series 1993, 5.375%, 12/01/20 2,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 2,016,460 Ohio, General Obligation School Improvement Bonds, Series 2001, 5.000%, 12/15/26 - MBIA Insured 1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AAA 1,093,480 Improvement Bonds, Series 2000, 5.750%, 12/01/24 - FGIC Insured 1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,197,132 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured 2,000 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 2,034,800 Unlimited Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured 1,750 London City School District, Ohio, General Obligation School 12/11 at 100.00 Aaa 1,756,808 Facilities Construction and Improvement Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 2,500 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 2,509,725 Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,604,506 Series 2003, 5.250%, 12/01/21 - MBIA Insured 2,335 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 2,365,168 Obligation Bonds, Series 2001, 5.125%, 12/01/30 - FSA Insured 1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA- 1,404,648 Washington Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2000, 5.750%, 12/01/22 715 North Canton City School District, Ohio, Unlimited Tax General No Opt. Call AAA 734,755 Obligation School Improvement Bonds, Series 1994, 9.700%, 12/01/04 - AMBAC Insured 3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,072,000 Series 2003F, 5.000%, 2/01/23 Olentangy Local School District, Deleware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A: 1,315 5.250%, 12/01/23 - FGIC Insured 6/14 at 100.00 AAA 1,387,785 3,380 5.250%, 12/01/24 - FGIC Insured 6/14 at 100.00 AAA 3,542,477 1,155 Perry Local School District, Allen County, Ohio, General 12/11 at 101.00 AAA 1,209,678 Obligation Bonds, Series 2001, 5.250%, 12/01/25 - AMBAC Insured 2,720 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 2,731,098 Counties, Ohio, General Obligation School Facilities Construction and Improvement Bonds, Series 2001, 5.000%, 12/01/28 - FGIC Insured 1,100 Plain Local School District, Franklin and Licking Counties, 6/12 at 100.00 Aaa 1,217,788 Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 - FGIC Insured 280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 318,027 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 1,453,988 5.000%, 12/01/27 - FGIC Insured 1,825 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,832,318 Obligation Bonds, Series 2003, 5.000%, 12/01/30 - MBIA Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,830 Springfield Township, Hamilton County, Ohio, Various Purpose 12/11 at 100.00 Aa3 $ 2,910,061 Limited Tax General Obligation Bonds, Series 2002, 5.250%, 12/01/27 2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 2,064,920 5.000%, 12/01/21 - FGIC Insured 70 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 76,308 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 2,000 Sugarcreek Local School District, Athens County, Ohio, General 12/13 at 100.00 Aaa 2,068,920 Obligation Bonds, Series 2003, 5.250%, 12/01/27 - MBIA Insured 1,000 Upper Arlington City School District, Ohio, General Obligation 12/06 at 101.00 AAA 1,051,100 Improvement Bonds, Series 1996, 5.250%, 12/01/22 - MBIA Insured 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 2,635,318 1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,210,833 1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,004,970 Obligation Bonds, Series 2003, 5.000%, 12/01/28 - MBIA Insured 2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,011,720 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured 1,000 Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa 1,104,690 Improvement and Refunding Bonds, Series 1997, 5.550%, 12/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 5.4% 1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/09 at 101.00 AAA 1,210,532 Project, Series 1999, 4.875%, 12/01/24 - AMBAC Insured 1,585 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 AAA 1,672,492 Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC 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 1,108,620 1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,105,120 2,645 Ohio Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AAA 2,895,614 Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 - MBIA Insured 400 Ohio Department of Transportation, Certificates of 10/04 at 100.00 AA 400,488 Participation, Rickenbacker International Airport Improvements, Series 1996, 6.125%, 4/15/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.8% 1,780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 1,903,639 5.250%, 1/01/16 - FSA Insured 3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding Bonds, 9/06 at 102.00 AAA 3,676,823 Series 1996, 5.500%, 9/15/22 - MBIA Insured 3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 3,020,700 International Airport, Series 2003C, 5.250%, 12/01/23 (Alternative Minimum Tax) - RAAI Insured 1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 BB+ 1,368,105 Emery Air Freight Corporation and Emery Worldwide Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18 2,000 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, No Opt. Call AAA 2,263,080 5.500%, 2/15/18 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 15.4% 2,295 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,486,770 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 2,000 Cleveland, Ohio, Public Power System First Mortgage 11/04 at 102.00 AAA 2,072,840 Revenue Bonds, Series 1994A, 7.000%, 11/15/24 (Pre-refunded to 11/15/04) - MBIA Insured 1,710 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. 12/04 at 100.00 AAA 1,901,777 Project, Series 1979, 7.500%, 6/01/09 2,100 Lakota Local School District, Butler County, Ohio, Unlimited 12/05 at 100.00 AAA 2,226,441 Tax General Obligation School Improvement Bonds, Series 1994, 6.250%, 12/01/14 (Pre-refunded to 12/01/05) - AMBAC Insured 4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 N/R*** 4,912,671 Section 8 Mortgage Loan Revenue Refunding Bonds, Series 1999G, 5.950%, 2/01/24 (Pre-refunded to 2/01/09) 1,000 Ohio Water Development Authority, Fresh Water Loan 6/05 at 102.00 AAA 1,056,190 Revenue Bonds, Series 1995, 5.900%, 12/01/21 (Pre-refunded to 6/01/05) - AMBAC Insured 35 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS July 31,2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa $ 1,409,076 Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20 (Pre-refunded to 6/01/11) - FGIC Insured 2,000 Southwest Regional Ohio Water District, Waterworks 12/05 at 101.00 AAA 2,133,400 System Revenue Bonds, Series 1995, 6.000%, 12/01/20 (Pre-refunded to 12/01/05) - MBIA Insured 500 Sylvania City School District, Ohio, Unlimited Tax General 12/05 at 101.00 AAA 532,035 Obligation Bonds, Series 1995, 5.800%, 12/01/15 (Pre-refunded to 12/01/05) - FGIC Insured 2,000 Wayne Local School District, Warren County, Ohio, 12/06 at 101.00 AAA 2,204,680 Unlimited Tax General Obligation School Improvement Bonds, Series 1996, 6.100%, 12/01/24 (Pre-refunded to 12/01/06) - AMBAC Insured 3,000 West Clermont Local School District, Clermont County, Ohio, 12/05 at 100.00 AAA 3,170,760 Unlimited Tax General Obligation School Improvement Bonds, Series 1995, 6.000%, 12/01/18 (Pre-refunded to 12/01/05) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.7% 4,000 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 4,112,440 Bonds, American Municipal Power Ohio Inc., Series 2002, 5.000%, 2/15/22 - MBIA Insured Ohio Air Quality Development Authority, Revenue Refunding Bonds, JMG Funding Limited Partnership Project, Series 1994: 2,000 6.375%, 1/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 2,053,680 4,000 6.375%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 4,107,360 3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,148,080 JMG Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 1,900 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,772,433 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.5% Cincinnati, Ohio, Water System Revenue Bonds, Series 2001: 1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,096,400 6,010 5.000%, 12/01/18 6/11 at 100.00 AA+ 6,286,640 3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,117,660 1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,032,650 2,000 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 2,043,400 Series 2003, 5.000%, 12/01/22 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,119,500 Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured 1,000 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 1,004,670 Improvement Bonds, Series 1998I, 5.000%, 1/01/28 - FSA Insured 40 Cleveland, Ohio, Waterworks First Mortgage Revenue 1/06 at 102.00 AAA 42,294 Refunding and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - MBIA Insured 2,110 Hamilton County, Ohio, Sewer System Revenue and 6/10 at 101.00 AAA 2,292,092 Improvement Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2000A, 5.750%, 12/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 220,995 Total Long-Term Investments (cost $221,294,176) - 146.7% 229,729,941 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 3,904,166 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.2)% (77,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 156,634,107 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 36 Nuveen Ohio Dividend Advantage Municipal Fund (NXI) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.5% $ 1,125 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 982,710 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 25.1% 1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,059,590 Bonds, University of Dayton, Series 2000, 5.500%, 12/01/25 - AMBAC Insured 2,000 Ohio Higher Educational Facilities Commission, Revenue 11/11 at 101.00 AA 2,055,760 Bonds, Denison University, Series 2001, 5.200%, 11/01/26 2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 2,678,647 Ohio Northern University Project, Series 2002, 5.000%, 5/01/22 1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 AAA 1,839,904 Bonds, Series 2004, 5.000%, 12/01/20 - MBIA Insured 3,150 Student Loan Funding Corporation, Cincinnati, Ohio, Student 1/05 at 100.00 A 3,158,694 Loan Subordinated Revenue Refunding Bonds, Series 1992D, 6.600%, 7/01/05 (Alternative Minimum Tax) 2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,250,780 Series 2001A, 5.750%, 6/01/17 - FGIC Insured 2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA- 2,933,370 Series 2002F, 5.375%, 6/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 19.8% 1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 A1 1,164,933 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 1,984,535 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 2,500 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,554,425 and Improvement Bonds, Upper Valley Medical Center, Series 1996A, 6.375%, 5/15/26 Parma Community General Hospital Association, Ohio, Hospital Revenue Refunding and Improvement Bonds, Series 1998: 2,250 5.250%, 11/01/13 11/08 at 101.00 A- 2,345,535 2,000 5.375%, 11/01/29 11/08 at 101.00 A- 1,983,440 1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,049,480 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 1,500 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/04 at 101.00 Baa1 1,515,735 Union Hospital Project, Series 1993A, 6.500%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.5% 1,790 Lucas Northgate Housing Development Corporation, 1/05 at 101.00 Aaa 1,816,761 Ohio, FHA-Insured Mortgage Revenue Refunding Bonds, Northgate Apartments Section 8 Assisted Project, Series 1999A, 5.950%, 7/01/19 - MBIA Insured 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102.00 Aa2 2,957,673 Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.6% 1,060 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,104,117 Securities Program, Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 1,615 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,620,814 Securities Program, Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 490 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 521,497 Securities Program, Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 37 Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued) Portfolio of INVESTMENTS July 31, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 285 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa $ 289,717 Securities Program, Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.0% 1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB 1,055,870 Ohio Presbyterian Retirement Services, Series 2001A, 7.125%, 7/01/29 1,470 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,470,470 Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 39.2% 1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,009,930 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 1,000 Centerville, Ohio, General Obligation Limited Tax Bonds, 12/11 at 100.00 Aa3 1,016,620 Capital Facilities Improvement, Series 2001, 5.125%, 12/01/26 1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,127,270 Obligation Bonds, Series 2004, 5.500%, 12/01/15 - FSA Insured Jackson City School District, Jackson County, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2001: 880 5.500%, 12/01/22 - MBIA Insured 6/11 at 100.00 Aaa 961,242 935 5.500%, 12/01/23 - MBIA Insured 6/11 at 100.00 Aaa 1,015,485 1,000 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,100,030 General Obligation Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured 2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,034,800 Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured 2,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 2,034,920 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 - FGIC Insured 1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,053,460 Bonds, Series 2000, 5.450%, 12/01/25 - AMBAC Insured 1,900 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 2,005,165 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 - FGIC Insured 1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101.00 AAA 1,918,746 Obligation Bonds, Series 2001, 5.250%, 12/01/25 - FGIC Insured 1,275 Sycamore Community School District, Hamilton County, 12/09 at 101.00 AAA 1,298,473 Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 1999, 5.000%, 12/01/23 - MBIA Insured 1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101.00 Aaa 1,627,709 Limited Tax General Obligation Refunding Bonds, Series 2001, 5.500%, 12/01/17 - AMBAC Insured 1,000 West Holmes Local School District, Ohio, School Improvement 6/07 at 101.00 AAA 1,059,410 Bonds, Series 1997, 5.375%, 12/01/23 - MBIA Insured 2,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,514,650 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured 2,965 Franklin County, Worthington, Ohio, Various Purpose Unlimited 12/11 at 100.00 AA+ 3,178,569 Tax General Obligation Bonds, Series 2001, 5.375%, 12/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.1% 1,415 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 AAA 1,467,794 Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC Insured 2,000 Ohio, Higher Education Capital Facilities, Appropriation Bonds, 2/11 at 100.00 AA+ 2,062,660 Series II-2001A, 5.000%, 2/01/20 4,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 4,532,640 6.000%, 8/01/16 - FSA Insured 1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 1,567,426 Loan Notes, Series 1999A, 6.375%, 10/01/19 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.0% $ 2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA $ 2,097,780 5.500%, 2/15/26 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,105,000 Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.4% 1,440 Wadsworth, Ohio, Electric System Improvement Revenue Bonds, 2/12 at 100.00 Aaa 1,548,893 American Municipal Power Ohio Inc., Series 2002, 5.250%, 2/15/17 - MBIA Insured 910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 1,002,583 Series 2001, 5.500%, 12/01/18 - AMBAC Insured 1,500 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Ba1 1,477,574 Bonds, Dayton Power and Light Company Project, Series 1995, 6.100%, 9/01/30 2,000 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,038,780 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 1,515,750 Revenue Refunding Bonds, Ohio Edison Company Project, Series 1999C, 5.800%, 6/01/16 (Mandatory put 12/01/04) 1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 932,860 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.0% 2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,153,200 Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured 1,700 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,770,550 Series 2001, 5.125%, 12/01/21 2,375 Ohio Water Development Authority, Revenue Bonds, 12/13 at 100.00 Aaa 2,436,321 Water Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 89,345 Total Long-Term Investments (cost $89,994,014) - 146.2% 93,060,747 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 1,580,770 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.7)% (31,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 63,641,517 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 39 Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 8.4% $ 980 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 856,050 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 A+ 3,027,750 Revenue Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 4.7% 2,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 Baa1 2,186,633 Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 23.0% 1,685 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 1,747,648 Ohio, Hospital Facilities Revenue Bonds, Summa Health System Project, Series 1998A, 5.000%, 11/15/08 1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,008,830 Firelands 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- 1,914,362 Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.400%, 10/01/21 2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,098,960 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 3,880,071 Union Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.3% 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,047,120 Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.1% 1,605 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 1,630,182 Securities Program Residential Mortgage Revenue Bonds, Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax) 240 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 243,972 Securities Program Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.1% 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 960,700 Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 58.3% 1,000 Cleveland, Ohio, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 1,079,210 5.250%, 8/01/18 - FGIC Insured 1,000 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA 1,075,970 General Obligation Bonds, Series 2004, 5.000%, 12/01/15 - FSA Insured 2,605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,936,538 Obligation Bonds, Series 2004, 5.500%, 12/01/15 - FSA Insured 1,750 Fairfield City School District, Ohio, General Obligation 12/11 at 100.00 AAA 1,892,223 Refunding Bonds, Series 2001, 5.375%, 12/01/19 - FGIC Insured 1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aaa 1,041,540 Obligation Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 - MBIA Insured 1,065 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA 1,171,532 Obligation Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured 4,000 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 4,346,720 Obligation Bonds, Series 2001, 5.500%, 12/01/21 - FSA Insured 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa $ 2,606,558 Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured 1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,017,460 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 - FGIC Insured 3,000 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 3,038,760 Obligation Bonds, Series 2001, 5.125%, 12/01/30 - FSA Insured 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,027,380 Bonds, Series 2001B, 5.000%, 9/15/21 1,050 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,178,342 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 - FGIC Insured 1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 1,982,070 5.000%, 12/01/25 - FGIC Insured 1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,064,160 5.500%, 12/01/25 - FGIC Insured 1,500 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 1,548,690 5.000%, 12/01/21 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.9% 1,700 Hamilton, Butler County, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,715,317 Bonds, One Renaissance Center Acquisition, Series 2001, 5.000%, 11/01/26 - AMBAC Insured 1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,153,802 Capital Facilities, Series 2004A-II, 5.000%, 12/01/18 2,500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,789,625 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 1,086,000 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 1,055,750 Civic Theatre Project, Series 2001, 5.500%, 12/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.0% 3,495 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 3,714,032 5.250%, 1/01/18 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.6% 2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,548,474 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 1,515,750 Revenue Refunding Bonds, Ohio Edison Company Project, Series 1999C, 5.800%, 6/01/16 (Mandatory put 12/01/04) 1,900 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,772,433 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.0% 2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,153,200 Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured 1,500 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 1,542,074 Fresh Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 65,620 Total Long-Term Investments (cost $66,968,945) - 148.4% 68,655,888 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.5% 1,612,589 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.9)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 46,268,477 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 41 Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) Portfolio of INVESTMENTS July 31, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.7% $ 2,105 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,838,760 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.9% 1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 1,238,513 Ohio Northern University Project, Series 2002, 5.750%, 5/01/16 2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 2,148,760 Case Western Reserve University Project, Series 2002B, 5.500%, 10/01/22 1,000 Ohio State University, General Receipts Bonds, 12/09 at 101.00 AA 1,075,430 Series 1999A, 5.800%, 12/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 22.8% 845 Akron, Bath, and Copley Joint Township Hospital District, No Opt. Call Baa1 876,417 Ohio, Hospital Facilities Revenue Bonds, Summa Health System Project, Series 1998A, 5.000%, 11/15/08 1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,765,453 Firelands Regional Medical Center, Series 2002A, 5.500%, 8/15/22 1,425 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A3 1,561,501 Kettering Medical Center, Series 1999, 6.750%, 4/01/18 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 1,090,950 Initiatives, Series 2001, 5.500%, 9/01/12 1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 991,720 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29 1,000 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 1,049,480 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.3% 515 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 536,434 Securities Program, Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 985 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 988,546 Securities Program, Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 475 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 505,533 Securities Program, Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.6% 500 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 500,160 Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 47.6% 2,000 Canal Winchester Local School District, Franklin and Fairfield 12/08 at 102.00 AAA 2,071,180 Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 1998, 5.300%, 12/01/25 - FGIC Insured 1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,646,277 Obligation Bonds, Series 2002, 5.750%, 12/01/21 - FGIC Insured 2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 2,092,880 Obligation Bonds, Series 2001, 5.500%, 12/01/28 1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- 1,066,280 5.375%, 12/01/22 1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,032,010 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 1,296,073 5.125%, 12/01/26 - AMBAC Insured 1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA 1,203,697 General Obligation Bonds, Series 2002, 5.125%, 12/01/29 - FSA Insured 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ $ 1,033,830 Bonds, Series 2001B, 5.000%, 9/15/20 1,000 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,067,620 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 - FGIC Insured 1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 1,632,380 Counties, Ohio, General Obligation Bonds, School Facilities Construction and Improvement, Series 2001, 5.250%, 12/01/20 - FGIC Insured 1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AA+ 1,188,500 Bonds, Series 2002, 5.000%, 12/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.9% 500 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 527,600 First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC Insured 1,000 Midview Local School District, Lorain County, Ohio, Certificates 5/13 at 100.00 A 978,460 of Participation, Series 2003, 5.000%, 11/01/30 2,000 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,231,700 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 1,250 Ohio Building Authority, State Facilities Bonds, Administrative 4/12 at 100.00 AAA 1,372,888 Building Fund Projects, Series 2002A, 5.500%, 4/01/18 - FSA Insured 2,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 2,269,500 Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 9.3% 1,140 Columbus Municipal Airport Authority, Ohio, Airport No Opt. Call AAA 1,247,605 Improvement Revenue Bonds, Port Columbus International Airport Project, Series 1998B, 5.250%, 1/01/11 - AMBAC Insured 1,550 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, No Opt. Call AAA 1,753,887 5.500%, 2/15/18 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.0% 1,500 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,613,430 Bonds, American Municipal Power Ohio Inc., Series 2002, 5.250%, 2/15/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.1% 1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 1,076,600 Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured 1,500 Hamilton County, Ohio, Sewer System Revenue Refunding 12/11 at 100.00 AAA 1,611,600 and Improvement Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2001A, 5.250%, 12/01/18 - MBIA Insured 1,500 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 1,542,073 Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 45,265 Total Long-Term Investments (cost $46,232,184) - 148.2% 47,723,727 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.0% 984,525 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.2)% (16,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 32,208,252 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 43 Statement of ASSETS AND LIABILITIES July 31, 2004
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $256,161,806, $165,695,762 and $44,626,861, respectively) $271,190,724 $173,319,781 $45,792,157 Cash 936,082 1,209,431 299,308 Receivables: Interest 3,184,645 2,210,055 552,887 Investments sold -- -- -- Other assets 12,204 4,660 95 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 275,323,655 176,743,927 46,644,447 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased -- 3,043,751 -- Forward swaps, at value -- -- 64,628 Accrued expenses: Management fees 149,330 94,851 13,771 Other 56,874 72,915 26,225 Preferred share dividends payable 3,346 3,536 1,379 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 209,550 3,215,053 106,003 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $181,114,105 $117,528,874 $30,538,444 ==================================================================================================================================== Common shares outstanding 11,674,873 7,736,663 2,059,945 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.51 $ 15.19 $ 14.82 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 116,749 $ 77,367 $ 20,599 Paid-in surplus 163,295,195 108,168,938 29,152,921 Undistributed net investment income 1,934,690 1,390,724 347,437 Accumulated net realized gain (loss) from investments 738,553 267,826 (83,181) Net unrealized appreciation (depreciation) of investments and forward swap transactions 15,028,918 7,624,019 1,100,668 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $181,114,105 $117,528,874 $30,538,444 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 Unlimited Preferred 1,000,000 1,000,000 Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 44
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $221,294,176, $89,994,014 $66,968,945 and $46,232,184, respectively) $229,729,941 $93,060,747 $68,655,888 $47,723,727 Cash 320,862 420,036 897,796 400,748 Receivables: Interest 2,838,029 1,200,834 763,686 605,163 Investments sold 975,674 -- -- -- Other assets 12,328 7,412 145 7,245 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 233,876,834 94,689,029 70,317,515 48,736,883 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased -- -- -- -- Forward swaps, at value -- -- -- -- Accrued expenses: Management fees 127,221 28,007 20,793 14,405 Other 109,959 16,832 24,304 12,272 Preferred share dividends payable 5,547 2,673 3,941 1,954 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 242,727 47,512 49,038 28,631 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $156,634,107 $63,641,517 $46,268,477 $32,208,252 ==================================================================================================================================== Common shares outstanding 9,662,870 4,228,284 3,115,497 2,157,564 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.21 $ 15.05 $ 14.85 $ 14.93 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 96,629 $ 42,283 $ 31,155 $ 21,576 Paid-in surplus 146,390,733 60,002,631 44,146,538 30,527,270 Undistributed net investment income 1,561,039 680,530 451,940 125,984 Accumulated net realized gain (loss) from investments 149,941 (150,660) (48,099) 41,879 Net unrealized appreciation (depreciation) of investments and forward swap transactions 8,435,765 3,066,733 1,686,943 1,491,543 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $156,634,107 $63,641,517 $46,268,477 $32,208,252 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 45 Statement of OPERATIONS Year Ended July 31, 2004
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $14,028,366 $8,938,840 $2,280,369 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,778,400 1,134,184 303,892 Preferred shares - auction fees 235,758 140,451 40,223 Preferred shares - dividend disbursing agent fees 20,053 20,053 10,028 Shareholders' servicing agent fees and expenses 31,071 21,001 757 Custodian's fees and expenses 62,655 44,958 10,719 Directors'/Trustees' fees and expenses 4,526 4,523 922 Professional fees 19,525 15,732 10,176 Shareholders' reports - printing and mailing expenses 34,422 20,687 3,913 Stock exchange listing fees 12,999 11,021 181 Investor relations expense 11,883 6,998 4,133 Other expenses 24,606 11,807 9,584 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 2,235,898 1,431,415 394,528 Custodian fee credit (9,564) (15,217) (5,024) Expense reimbursement -- -- (140,258) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 2,226,334 1,416,198 249,246 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 11,802,032 7,522,642 2,031,123 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 1,180,195 1,871,869 51,975 Change in net unrealized appreciation (depreciation) of investments 4,399,778 1,053,906 1,008,797 Change in net unrealized appreciation (depreciation) of forward swap transactions -- -- (64,628) - ------------------------------------------------------------------------------------------------------------------------------------ Net gain from investments 5,579,973 2,925,775 996,144 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (724,631) (313,219) (111,533) From accumulated net realized gains from investments (95,441) (220,148) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (820,072) (533,367) (111,533) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $16,561,933 $9,915,050 $2,915,734 ==================================================================================================================================== See accompanying notes to financial statements. 46 OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $12,180,335 $4,871,907 $3,437,470 $2,328,521 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,519,417 617,748 458,482 318,944 Preferred shares - auction fees 193,121 77,932 60,193 41,382 Preferred shares - dividend disbursing agent fees 30,082 10,028 10,028 10,028 Shareholders' servicing agent fees and expenses 32,997 1,474 1,223 1,132 Custodian's fees and expenses 57,086 22,197 15,941 12,092 Directors'/Trustees' fees and expenses 4,401 2,130 1,680 1,250 Professional fees 16,780 11,963 11,556 10,147 Shareholders' reports - printing and mailing expenses 17,897 3,807 7,419 9,004 Stock exchange listing fees 11,184 371 274 190 Investor relations expense 10,152 7,509 6,172 4,335 Other expenses 15,524 10,988 10,730 8,916 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,908,641 766,147 583,698 417,420 Custodian fee credit (16,996) (3,826) (6,637) (5,476) Expense reimbursement -- (285,114) (211,607) (147,205) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,891,645 477,207 365,454 264,739 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 10,288,690 4,394,700 3,072,016 2,063,782 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 2,207,042 (170,963) (16,409) 41,914 Change in net unrealized appreciation (depreciation) of investments 246,313 1,850,624 1,654,989 1,025,170 Change in net unrealized appreciation (depreciation) of forward swap transactions -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net gain from investments 2,453,355 1,679,661 1,638,580 1,067,084 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (535,383) (255,016) (181,912) (124,399) From accumulated net realized gains from investments (141,268) (5,304) -- (10,818) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (676,651) (260,320) (181,912) (135,217) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $12,065,394 $5,814,041 $4,528,684 $2,995,649 ====================================================================================================================================
See accompanying notes to financial statements. 47 Statement of CHANGES IN NET ASSETS
MICHIGAN MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW) ----------------------------- ----------------------------- ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 7/31/04 7/31/03 7/31/04 7/31/03 7/31/04 7/31/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 11,802,032 $ 12,090,435 $ 7,522,642 $ 7,932,887 $ 2,031,123 $ 2,041,873 Net realized gain (loss) from investments 1,180,195 1,537,864 1,871,869 1,797,104 51,975 43,512 Change in net unrealized appreciation (depreciation) of investments 4,399,778 (4,630,793) 1,053,906 (4,692,253) 1,008,797 (463,571) Change in net unrealized appreciation (depreciation) of forward swap transactions -- -- -- -- (64,628) -- Distributions to Preferred Shareholders: From net investment income (724,631) (882,566) (313,219) (551,440) (111,533) (141,482) From accumulated net realized gains from investments (95,441) (128,818) (220,148) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 16,561,933 7,986,122 9,915,050 4,486,298 2,915,734 1,480,332 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (11,067,332) (10,738,262) (7,285,471) (6,995,623) (1,841,125) (1,770,278) From accumulated net realized gains from investments (1,232,780) (1,195,839) (3,007,816) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (12,300,112) (11,934,101) (10,293,287) (6,995,623) (1,841,125) (1,770,278) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 666,222 503,555 488,732 108,017 22,217 3,344 Preferred shares offering costs -- -- -- -- (1,870) 50,657 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 666,222 503,555 488,732 108,017 20,347 54,001 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 4,928,043 (3,444,424) 110,495 (2,401,308) 1,094,956 (235,945) Net assets applicable to Common shares at the beginning of year 176,186,062 179,630,486 117,418,379 119,819,687 29,443,488 29,679,433 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $181,114,105 $176,186,062 $117,528,874 $117,418,379 $30,538,444 $29,443,488 ==================================================================================================================================== Undistributed net investment income at the end of year $ 1,934,690 $ 1,925,191 $ 1,390,724 $ 1,483,435 $ 347,437 $ 269,088 ====================================================================================================================================
See accompanying notes to financial statements. 48
OHIO OHIO OHIO QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ) ----------------------------- ----------------------------- ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 7/31/04 7/31/03 7/31/04 7/31/03 7/31/04 7/31/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 10,288,690 $ 10,568,139 $ 4,394,700 $ 4,444,153 $ 3,072,016 $ 3,127,428 Net realized gain (loss) from investments 2,207,042 742,663 (170,963) 156,618 (16,409) 393,224 Change in net unrealized appreciation (depreciation) of investments 246,313 (3,005,456) 1,850,624 (1,154,603) 1,654,989 (1,127,584) Change in net unrealized appreciation (depreciation) of forward swap transactions -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (535,383) (735,656) (255,016) (307,940) (181,912) (236,527) From accumulated net realized gains from investments (141,268) -- (5,304) (5,459) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 12,065,394 7,569,690 5,814,041 3,132,769 4,528,684 2,156,541 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (9,681,971) (9,454,399) (4,096,876) (3,865,874) (2,862,473) (2,710,843) From accumulated net realized gains from investments (2,044,035) -- (71,806) (43,462) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (11,726,006) (9,454,399) (4,168,682) (3,909,336) (2,862,473) (2,710,843) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 883,014 945,060 74,236 115,397 26,498 13,374 Preferred shares offering costs -- -- (1,664) 36,823 (1,870) 45,457 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 883,014 945,060 72,572 152,220 24,628 58,831 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 1,222,402 (939,649) 1,717,931 (624,347) 1,690,839 (495,471) Net assets applicable to Common shares at the beginning of year 155,411,705 156,351,354 61,923,586 62,547,933 44,577,638 45,073,109 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $156,634,107 $155,411,705 $63,641,517 $61,923,586 $46,268,477 $44,577,638 ==================================================================================================================================== Undistributed net investment income at the end of year $ 1,561,039 $ 1,508,224 $ 680,530 $ 658,025 $ 451,940 $ 425,175 ====================================================================================================================================
See accompanying notes to financial statements. 49 Statement of CHANGES IN NET ASSETS (continued)
OHIO DIVIDEND ADVANTAGE 3 (NVJ) --------------------------- YEAR ENDED YEAR ENDED 7/31/04 7/31/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,063,782 $ 2,083,454 Net realized gain (loss) from investments 41,914 305,202 Change in net unrealized appreciation (depreciation) of investments 1,025,170 (942,414) Change in net unrealized appreciation (depreciation) of forward swap transactions -- -- Distributions to Preferred Shareholders: From net investment income (124,399) (149,564) From accumulated net realized gains from investments (10,818) (15,641) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 2,995,649 1,281,037 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,889,890) (1,889,785) From accumulated net realized gains from investments (146,047) (121,348) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,035,937) (2,011,133) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 4,762 3,539 Preferred shares offering costs (1,408) (23,189) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 3,354 (19,650) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 963,066 (749,746) Net assets applicable to Common shares at the beginning of year 31,245,186 31,994,932 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $32,208,252 $31,245,186 ==================================================================================================================================== Undistributed net investment income at the end of year $ 125,984 $ 76,532 ====================================================================================================================================
See accompanying notes to financial statements. 50 Notes to FINANCIAL STATEMENTS 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. 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. Securities 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 price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market 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. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities 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 and delayed delivery purchase commitments. At July 31, 2004, Michigan Premium Income (NMP) had an outstanding when-issued purchase commitment of $3,043,751. There were no such outstanding purchase commitments in any of the other 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. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute all income and 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 applicable state taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended July 31, 2004, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions made by the Funds are subject to federal taxation. 51 Notes to FINANCIAL STATEMENTS (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 $25,000 stated value Preferred shares as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near 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 ================================================================================ 52 Forward Swap Transactions The Funds may invest in certain derivative financial instruments. The Funds use of forward interest rate swap transactions is intended to mitigate the negative impact that an increase in long-term interest rates could have on Common share net earnings. Forward interest rate swap transactions involve each Fund's agreement with the counterparty to pay, in the future, a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment. The payment obligation is based on the notional or nominal amount of the forward swap contract. The Funds may close out a contract prior to the effective date. Forward swaps do not involve the delivery of securities or other underlying assets or principal, but rather are settled in cash. 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 minimize such credit risk, all counterparties are required to segregate 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. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to segregate assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss. The Funds help reduce the credit risks associated with forward swap transactions by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser continually monitor the financial stability of the swap counterparties. 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. Offering Costs Nuveen Investments, LLC has agreed to pay all Common share offering costs (other than the sales load) that exceed $.03 per Common share for Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ). Michigan Dividend Advantage's (NZW), Ohio Dividend Advantage's (NXI), Ohio Dividend Advantage 2's (NBJ) and Ohio Dividend Advantage 3's (NVJ) total share of Common share offering costs ($61,530, $126,237, $93,150 and $64,500, respectively) were recorded as a reduction of the proceeds from the sales of Common shares. Total costs incurred by Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage Fund 3 (NVJ) in connection with their offering of Preferred shares ($275,343, $415,427, $362,543 and $294,515, respectively) were recorded as a reduction to paid-in surplus. Indemnifications Under the Fund's organizational documents, its 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. 53 Notes to FINANCIAL STATEMENTS (continued) 2. FUND SHARES Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW) ---------------------- ---------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 7/31/04 7/31/03 7/31/04 7/31/03 7/31/04 7/31/03 - --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 40,867 30,579 30,749 6,562 1,185 217 ========================================================================================================= OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) ---------------------- ---------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 7/31/04 7/31/03 7/31/04 7/31/03 7/31/04 7/31/03 - --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 49,919 54,111 4,481 7,470 1,437 872 ========================================================================================================= OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------- YEAR ENDED YEAR ENDED 7/31/04 7/31/03 - --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 299 230 =========================================================================================================
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities for the fiscal year ended July 31, 2004, were as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - -------------------------------------------------------------------------------- Purchases $41,307,936 $47,786,785 $5,889,666 Sales and maturities 40,237,647 50,369,632 4,171,285 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - -------------------------------------------------------------------------------- Purchases $71,993,376 $9,973,168 $10,602,668 $4,170,740 Sales and maturities 71,756,732 8,905,530 10,189,908 3,719,910 ================================================================================ 54 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 timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At July 31, 2004, the cost of investments were as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - -------------------------------------------------------------------------------- Cost of investments $256,245,678 $165,614,999 $44,624,941 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - -------------------------------------------------------------------------------- Cost of investments $221,248,768 $89,938,918 $66,954,676 $46,225,873 ================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2004, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - ----------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $16,076,874 $8,500,128 $1,376,031 Depreciation (1,131,828) (795,346) (208,815) - ----------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $14,945,046 $7,704,782 $1,167,216 =========================================================================================================== OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - ----------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $9,047,358 $3,402,882 $1,923,670 $1,728,609 Depreciation (566,185) (281,053) (222,458) (230,755) - ----------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $8,481,173 $3,121,829 $1,701,212 $1,497,854 ===========================================================================================================
55 Notes to FINANCIAL STATEMENTS (continued) The tax components of undistributed net investment income and net realized gains at July 31, 2004, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $2,706,496 $1,894,851 $500,325 Undistributed net ordinary income * 60,807 14,373 -- Undistributed net long-term capital gains 915,473 267,823 -- ========================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $2,328,022 $960,391 $681,157 $279,127 Undistributed net ordinary income * 54,254 10,211 349 -- Undistributed net long-term capital gains 95,687 -- -- 41,879 =========================================================================================================
* 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 fiscal years ended July 31, 2004 and July 31, 2003, was designated for purposes of the dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE 2004 (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $11,754,459 $7,435,769 $1,951,436 Distributions from net ordinary income * 30,661 161,074 -- Distributions from net long-term capital gains 1,328,221 3,227,967 -- ========================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2004 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $10,199,299 $4,338,961 $3,036,212 $2,013,038 Distributions from net ordinary income * 18,197 1,707 -- 156,865 Distributions from net long-term capital gains 2,185,303 75,417 -- -- =========================================================================================================
56
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE 2003 (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $11,597,039 $7,524,815 $1,902,369 Distributions from net ordinary income * -- -- -- Distributions from net long-term capital gains 1,324,657 -- -- ========================================================================================================= OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2003 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $10,147,481 $4,155,416 $2,926,588 $2,038,899 Distributions from net ordinary income * -- -- -- 137,104 Distributions from net long-term capital gains -- 48,921 -- -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At July 31, 2004, 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 OHIO DIVIDEND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE ADVANTAGE 2 (NZW) (NXI) (NBJ) - --------------------------------------------------------------------------------------------------------- Expiration year: 2011 $83,181 $ -- $21,436 2012 -- 23,743 3,575 - --------------------------------------------------------------------------------------------------------- Total $83,181 $23,743 $25,011 =========================================================================================================
The following Funds elected to defer net realized losses from investments incurred from November 1, 2003 through July 31, 2004 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses are treated as having arisen on the first day of the following fiscal year:
OHIO OHIO DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 2 (NXI) (NBJ) - --------------------------------------------------------------------------------------------------------- $126,917 $23,088 =========================================================================================================
57 Notes to FINANCIAL STATEMENTS (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each Fund paid through July 31, 2004, an annual management fee, payable monthly, at the rates set forth below, which were based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: MICHIGAN QUALITY INCOME (NUM) MICHIGAN PREMIUM INCOME (NMP) AVERAGE DAILY NET ASSETS (INCLUDING OHIO QUALITY INCOME (NUO) NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ MICHIGAN DIVIDEND ADVANTAGE (NZW) OHIO DIVIDEND ADVANTAGE (NXI) OHIO DIVIDEND ADVANTAGE 2 (NBJ) AVERAGE DAILY NET ASSETS (INCLUDING OHIO DIVIDEND ADVANTAGE 3 (NVJ) NET ASSETS ATTRIBUTABLE TOPREFERRED SHARES) MANAGEMENT FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For net assets over $2 billion .5750 ================================================================================ 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 their 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. 58 As approved by the Board of Directors/Trustees, a complex-wide management fee structure has been adopted by all funds sponsored by the Adviser and its affiliates effective August 1, 2004. This structure separates each fund's management fee into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser and its affiliates, and a specific fund-level component, based only on the amount of assets managed 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 and its affiliates. Under no circumstances will this pricing structure result in a fund paying management fees at a rate higher than would otherwise have been applicable had the complex-wide management fee structure not been implemented. As a consequence of this new management fee structure, the funds' effective management fees were reduced by approximately .004% starting August 1, 2004. The complex-level fee schedule for all funds in the Nuveen fund complex is as follows: COMPLEX-LEVEL COMPLEX-LEVEL ASSETS (1) 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 (which includes assets attributable to leverage used in the Nuveen fund complex) of all funds sponsored by the Adviser or by its affiliates. (2) With respect to the complex-wide Managed Assets over $91 billion, the funds (via their Board of Directors/Trustees) and the Adviser intend that the parties will meet, prior to the time when complex-wide Managed Assets reach that level, to consider and negotiate the fee rate or rates that will apply to such assets. The parties agree that, in the unlikely event that complex-wide Managed Assets reach $91 billion prior to the parties reaching an agreement as to 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 the parties agree to a different rate or rates. For each of the Funds, the fund-level fee, which is additive to the complex-level fee, is based upon the average daily Managed Assets of each Fund as follows: MICHIGAN QUALITY INCOME (NUM) MICHIGAN PREMIUM INCOME (NMP) OHIO QUALITY INCOME (NUO) AVERAGE DAILY MANAGED ASSETS 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 Managed Assets over $5 billion .3750 ================================================================================ MICHIGAN DIVIDEND ADVANTAGE (NZW) OHIO DIVIDEND ADVANTAGE (NXI) OHIO DIVIDEND ADVANTAGE 2 (NBJ) OHIO DIVIDEND ADVANTAGE 3 (NVJ) AVERAGE DAILY MANAGED ASSETS 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 Managed Assets over $2 billion .3750 ================================================================================ 59 Notes to FINANCIAL STATEMENTS (continued) 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. 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. 60 6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on September 1, 2004, to shareholders of record on August 15, 2004, as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - -------------------------------------------------------------------------------- Dividend per share $.0790 $.0770 $.0745 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - -------------------------------------------------------------------------------- Dividend per share $.0835 $.0810 $.0770 $.0730 ================================================================================ 61 Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- ------------------------------ Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MICHIGAN QUALITY INCOME (NUM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 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) 2001 14.54 1.16 .82 (.29) (.01) 1.68 (.88) (.02) (.90) 2000 15.20 1.19 (.53) (.30) (.02) .34 (.92) (.08) (1.00) MICHIGAN PREMIUM INCOME (NMP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 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) 2001 14.24 1.07 1.07 (.25) -- 1.89 (.82) -- (.82) 2000 14.68 1.07 (.41) (.27) -- .39 (.83) -- (.83) MICHIGAN DIVIDEND ADVANTAGE (NZW) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 2004 14.30 .99 .47 (.05) -- 1.41 (.89) -- (.89) 2003 14.42 .99 (.20) (.07) -- .72 (.86) -- (.86) 2002(a) 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 QUALITY INCOME (NUM) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 $ -- $15.51 $15.2000 5.17% 9.52% 2003 -- 15.14 15.4500 2.40 4.35 2002 -- 15.48 16.1000 11.18 7.68 2001 -- 15.32 15.4200 17.11 11.90 2000 -- 14.54 14.0000 (9.92) 2.51 MICHIGAN PREMIUM INCOME (NMP) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 -- 15.19 14.3700 5.46 8.56 2003 -- 15.24 14.8500 2.64 3.71 2002 -- 15.56 15.3500 10.52 7.40 2001 -- 15.31 14.7100 17.81 13.61 2000 -- 14.24 13.2500 (6.16) 2.95 MICHIGAN DIVIDEND ADVANTAGE (NZW) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 -- 14.82 14.6500 2.99 10.00 2003 .02 14.30 15.1000 9.19 5.01 2002(a) (.19) 14.42 14.6500 2.00 5.21 =========================================================================================== Ratios/Supplemental Data ----------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate =========================================================================================================================== MICHIGAN QUALITY INCOME (NUM) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 $181,114 1.22% 6.44% 1.22% 6.45% 15% 2003 176,186 1.24 6.56 1.24 6.57 15 2002 179,630 1.28 7.29 1.27 7.29 19 2001 176,664 1.30 7.79 1.29 7.80 20 2000 167,429 1.29 8.29 1.27 8.31 25 MICHIGAN PREMIUM INCOME (NMP) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 117,529 1.20 6.28 1.19 6.30 28 2003 117,418 1.21 6.49 1.20 6.50 18 2002 119,820 1.25 6.82 1.24 6.83 9 2001 117,784 1.24 7.24 1.23 7.25 15 2000 109,565 1.29 7.73 1.28 7.74 34 MICHIGAN DIVIDEND ADVANTAGE (NZW) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 30,538 1.28 6.13 .81 6.60 9 2003 29,443 1.29 6.15 .82 6.61 2 2002(a) 29,679 1.35* 6.00* .90* 6.45* 21 =========================================================================================================================== Preferred Shares at End of Period --------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ================================================================= MICHIGAN QUALITY INCOME (NUM) - ----------------------------------------------------------------- Year Ended 7/31: 2004 $94,000 $25,000 $73,169 2003 94,000 25,000 71,858 2002 94,000 25,000 72,774 2001 94,000 25,000 71,985 2000 94,000 25,000 69,529 MICHIGAN PREMIUM INCOME (NMP) - ----------------------------------------------------------------- Year Ended 7/31: 2004 56,000 25,000 77,468 2003 56,000 25,000 77,419 2002 56,000 25,000 78,491 2001 56,000 25,000 77,582 2000 56,000 25,000 73,913 MICHIGAN DIVIDEND ADVANTAGE (NZW) - ----------------------------------------------------------------- Year Ended 7/31: 2004 16,000 25,000 72,716 2003 16,000 25,000 71,005 2002(a) 16,000 25,000 71,374 =================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income at net asset value, reinvested capital gains distributions at net asset value, if any, and changes in Common share net asset value per share. 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) For the period September 25, 2001 (commencement of operations) through July 31, 2002. See accompanying notes to financial statements. 62-63 SPREAD Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- ------------------------------ Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== OHIO QUALITY INCOME (NUO) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 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) 2001 15.52 1.20 .56 (.27) -- 1.49 (.91) -- (.91) 2000 16.13 1.21 (.56) (.29) -- .36 (.97) -- (.97) OHIO DIVIDEND ADVANTAGE (NXI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 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) 2001(a) 14.33 .29 .35 (.04) -- .60 (.22) -- (.22) OHIO DIVIDEND ADVANTAGE 2 (NBJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 7/31: 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: 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 QUALITY INCOME (NUO) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 $ -- $16.21 $16.3000 2.59% 7.87% 2003 -- 16.17 17.0400 (3.15) 4.84 2002 -- 16.36 18.6200 17.00 7.63 2001 -- 16.10 16.8000 6.86 9.85 2000 -- 15.52 16.6250 (1.80) 2.50 OHIO DIVIDEND ADVANTAGE (NXI) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 -- 15.05 14.8000 10.70 9.54 2003 .01 14.66 14.2600 (.04) 5.09 2002 -- 14.83 15.1500 4.48 8.02 2001(a) (.14) 14.57 15.3500 3.77 3.21 OHIO DIVIDEND ADVANTAGE 2 (NBJ) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 -- 14.85 14.7000 9.60 10.33 2003 .01 14.31 14.2600 3.17 4.74 2002(b) (.16) 14.48 14.6500 1.91 5.58 OHIO DIVIDEND ADVANTAGE 3 (NVJ) - ------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 -- 14.93 14.3000 5.86 9.72 2003 (.01) 14.48 14.4000 .09 3.81 2002(c) (.16) 14.83 15.3000 3.47 5.05 =========================================================================================== Ratios/Supplemental Data ----------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ========================================================================================================================== OHIO QUALITY INCOME (NUO) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 $156,634 1.20% 6.46% 1.19% 6.47% 31% 2003 155,412 1.22 6.59 1.22 6.60 12 2002 156,351 1.26 7.10 1.24 7.12 26 2001 153,164 1.32 7.58 1.30 7.60 15 2000 147,045 1.31 7.88 1.29 7.89 11 OHIO DIVIDEND ADVANTAGE (NXI) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 63,642 1.20 6.41 .75 6.86 10 2003 61,924 1.23 6.52 .78 6.97 6 2002 62,548 1.24 6.79 .78 7.25 18 2001(a) 61,424 1.15* 5.58* .71* 6.02* 4 OHIO DIVIDEND ADVANTAGE 2 (NBJ) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 46,268 1.25 6.13 .79 6.60 15 2003 44,578 1.27 6.26 .81 6.72 15 2002(b) 45,073 1.25* 6.12* .80* 6.57* 39 OHIO DIVIDEND ADVANTAGE 3 (NVJ) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 7/31: 2004 32,208 1.28 5.87 .81 6.34 8 2003 31,245 1.28 5.89 .82 6.35 16 2002(c) 31,995 1.22* 4.72* .80* 5.15* 7 ========================================================================================================================== Preferred Shares at End of Period --------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ================================================================= OHIO QUALITY INCOME (NUO) - ----------------------------------------------------------------- Year Ended 7/31: 2004 $77,000 $25,000 $75,855 2003 77,000 25,000 75,458 2002 77,000 25,000 75,763 2001 77,000 25,000 74,729 2000 77,000 25,000 72,742 OHIO DIVIDEND ADVANTAGE (NXI) - ----------------------------------------------------------------- Year Ended 7/31: 2004 31,000 25,000 76,324 2003 31,000 25,000 74,938 2002 31,000 25,000 75,442 2001(a) 31,000 25,000 74,535 OHIO DIVIDEND ADVANTAGE 2 (NBJ) - ----------------------------------------------------------------- Year Ended 7/31: 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: 2004 16,500 25,000 73,800 2003 16,500 25,000 72,341 2002(c) 16,500 25,000 73,477 =================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income at net asset value, reinvested capital gains distributions at net asset value, if any, and changes in Common share net asset value per share. 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) For the period March 27, 2001 (commencement of operations) through July 31, 2001. (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. See accompanying notes to financial statements. 64-65 SPREAD Board Members AND OFFICERS The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Funds is currently set at seven. None of the board members who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 145 3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and 333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.; Chairman and Director (since 1997) of Nuveen Asset Management, Inc.; Director (since 1996) of Institutional Capital Corporation; Chairman and Director (since 1999) of Rittenhouse Asset Management, Inc.; Chairman of Nuveen Investments Advisers Inc. (since 2002). BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 145 8/22/40 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 145 7/29/34 Trust Company; Director, Community Advisory Board for 333 W. Wacker Drive Highland Park and Highwood, United Way of the North Chicago, IL 60606 Shore (since 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 145 10/22/48 corporation (since 1996); Director and Vice Chairman, United 333 W. Wacker Drive Fire & Casualty Company; formerly Director, Federal Reserve Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. - ------------------------------------------------------------------------------------------------------------------------------------ William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 145 3/16/48 Business at the University of Connecticut (since 2003); 333 W. Wacker Drive previously Senior Vice President and Director of Research Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director, Credit Research Center at Georgetown University; Director of Xerox Corporation (since 2004). 66 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Board member 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 145 9/24/44 Group, Vice President, Miller-Valentine Realty, a construction 333 W. Wacker Drive company; Chair, Miami Valley Hospital; Chair, Dayton Chicago, IL 60606 Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. - ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 145 12/29/47 Foundation (since 1994); prior thereto, Executive Director, 333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994) Chicago, IL 60606 NUMBER OF PORTFOLIOS IN FUND POSITION(S) YEAR FIRST COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 145 9/9/56 Administrative Associate General Counsel, formerly, Vice President and 333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC; Chicago, IL 60606 Managing Director (since 2002), General Counsel and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Managing Director (since 2002), Assistant Secretary and Associate General Counsel, formerly, Vice President (since 2000), of Nuveen Asset Management, Inc. Assistant Secretary of Nuveen Investments, Inc. (since 1994); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 145 2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen 333 W. Wacker Drive Secretary Investments, LLC. Chicago, IL 60606 67 Board Members AND OFFICERS (CONTINUED) NUMBER OF PORTFOLIOS IN FUND POSITION(S) YEAR FIRST COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 145 11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice 333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp (since 1999); Vice President and Treasurer of Nuveen Asset Management, Inc. (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 145 9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998) 333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002) Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. - ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 145 10/24/45 Nuveen Investments, LLC; Managing Director (since 2004) 333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp. - ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 145 3/2/64 LLC; Managing Director (since 2001), formerly Vice President 333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory Chicago, IL 60606 Corp. (since 1995); Managing Director of Nuveen Asset Management, Inc. (since 2001); Vice President of Nuveen Investment Advisers Inc. (since 2002); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 145 5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds 333 W. Wacker Drive Controller (since 1998) of Nuveen Investments, Inc.; Chicago, IL 60606 Certified Public Accountant. 68 NUMBER OF PORTFOLIOS IN FUND POSITION(S) YEAR FIRST COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 145 3/22/63 LLC, previously Assistant Vice President (since 1999); 333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC; Chicago, IL 60606 Certified Public Accountant. - ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 145 8/27/61 President (since 1993) of Nuveen Investments, LLC. 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 145 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and 333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.; Assistant Secretary of Nuveen Investments, Inc. and (since 1997) Nuveen Asset Management, Inc.; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 145 7/7/65 Managing Director (since 1997), formerly Vice President 333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management, Inc. (since 1999). Chartered Financial Analyst.
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and board member of the Adviser. (2) Board members serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (3) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 69 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 EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded 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. 70 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's quarterly portfolio of investments and information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30, 2004, are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's web site 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. 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 (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (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. LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. 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 NAV is calculated by subtracting the liabilities of 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 William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust 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 fiscal year ended July 31, 2004. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 71 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 $100 billion in assets, 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 four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment 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 carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at WWW.NUVEEN.COM/ETF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Logo: NUVEEN Investments EAN-B-0704D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. The registrant has posted such code of ethics on its website at www.nuveen.com/etf. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's board of directors determined that the registrant had at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert was William E. Bennett, who was "independent" for purposes of Item 3 of Form N-CSR. Although Mr. Bennett served as the audit committee financial expert during the reporting period, he unexpectedly resigned from the Board effective April 30, 2004. Since that time, the Audit Committee determined that Jack B. Evans, the Chairman of the Audit Committee, qualifies as an audit committee financial expert and recommended to the full Board that he be designated as such. On July 26, 2004, the full Board voted to so designate Mr. Evans. Accordingly for this reporting period, the registrant did not have a designated "audit committee financial expert" from April 30, 2004 to July 26, 2004. Mr. Evans, who is independent for purposes of Item 3 of Form N-CSR, served as the registrant's audit committee financial expert from July 26, 2004 to the end of the reporting period on July 31, 2004. Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of First Chicago Corporation and its principal subsidiary, The First National Bank of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy as to accrual of assets/loans; designated performing/non-performing assets; set the level of reserves against the credit portfolo; and determined the carrying value of credit related assets and exposure. Among other things, Mr. Bennett was also responsible for the oversight of the internal analysis function including setting ground rules for the review and preparation of financial analysis and financial statements for use in making credit and risk decisions for clients. Mr. Bennett has significant experience reviewing, analyzing and evaluating financial statements of domestic and international companies in a variety of industries with complex accounting issues. Mr. Evans was formerly President and Chief Operating Office of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP entered into on or after May 6, 2003, the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND - ------------------------------------------------------------------------------------------------------------------------------------ July 31, 2004 $ 11,608 $ 0 $ 409 $ 2,500 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ July 31, 2003 $ 10,265 $ 0 $ 360 $ 2,300 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax compliance and tax planning. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling, controlled by or under common control with NAC ("Control Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The table also shows the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - ------------------------------------------------------------------------------------------------------------------------------------ July 31, 2004 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ July 31, 2003 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A N/A N/A pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ July 31, 2004 $ 2,909 $ 0 $ 0 $ 2,909 July 31, 2003 $ 2,660 $ 0 $ 0 $ 2,660
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the audit committee if they are expected to be for amounts greater than $10,000; (ii) reported to the audit committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the audit committee at the next audit committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable at this time. ITEM 6. SCHEDULE OF INVESTMENTS. See Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. In the rare event that a municipal issuer held by the Fund were to issue a proxy or that the Fund were to receive a proxy issued by a cash management security, the Adviser would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the Fund's Board of Directors or Trustees or its representative. In the case of a conflict of interest, the proxy would be submitted to the applicable Fund's Board to determine how the proxy should be voted. A member of the Adviser's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17 CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the results were provided to the Board of Directors or Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable at this time. 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. In the event of a vacancy on the Board, the nominating and governance committee receives suggestions from various sources, including shareholders, as to suitable candidates. Suggestions should be sent in writing to Lorna Ferguson, Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive, Chicago, IL 60606. The nominating and governance committee sets appropriate standards and requirements for nominations for new directors and reserves the right to interview all candidates and to make the final selection of any new directors. 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 registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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. Letter or number the exhibits in the sequence indicated. (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 because posted on registrant's website at www.nuveen.com/etf. (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 Michigan Quality Income Municipal Fund, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: October 12, 2004 ------------------------------------------------------------------- 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: October 12, 2004 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date: October 12, 2004 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 file002.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Michigan Quality Income Municipal Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 12, 2004 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Chief Administrative Officer (Principal Executive Officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Michigan Quality Income Municipal Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 12, 2004 /s/ Stephen D. Foy ------------------------- -------------------------------- Vice President and Controller (Principal Financial Officer) EX-99.906CERT 3 file003.txt CERTIFICATIONS Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Michigan Quality Income Municipal Fund, Inc. (the "Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended July 31, 2004 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: October 12, 2004 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (Chief Executive Officer) /s/ Stephen D. Foy --------------------- Vice President, Controller (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----