N-CSRS 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 811-06383 --------------------- 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: January 31, 2005 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. SEMIANNUAL REPORT January 31, 2005 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/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS I am pleased to report that over the six-month period covered by this semiannual report your Fund continued to provide you with monthly tax-free income and an attractive total return. For more details about the management strategy and performance of your Fund, please see the Portfolio Manager's Perspective and Performance Overview sections of this report. As I noted in my last letter to you, our conversations with financial advisors and investors suggest that many of you may be wondering whether long-term interest rates will soon begin to rise substantially, how high they might go, and whether that makes this a good time to adjust your holdings of fixed-income investments. We can't answer that question for you - no one knows what the future will bring. What we do know from our experience is that a well-balanced portfolio, structured and carefully monitored with the help of a trusted investment professional, can be an important component in helping you achieve your long-term financial goals. In "IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL INVESTMENT RISK." fact, a well-diversified portfolio may actually help to reduce your overall investment risk. That is one reason why we believe that a municipal bond investment like your Nuveen Fund can be an important building block in a comprehensive investment program designed to perform well over the long term and in a variety of market conditions. As in past reports, I urge you to consider receiving future Fund reports and other Fund information by e-mail and the Internet . Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy - see the inside front cover of this report for instructions. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board March 15, 2005 Nuveen Municipal Closed-End Exchange-Traded Funds (NUM, NMP, NZW, NUO, NXI, NBJ, NVJ) Portfolio Manager's COMMENTS Portfolio manager Cathryn Steeves reviews key investment strategies and the six-month performance of these Michigan and Ohio Funds. Cathryn, who has been with Nuveen since 1996, assumed portfolio management responsibility for the Ohio Funds in August 2004 and for the Michigan Funds in January 2005. WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THE SIX MONTHS ENDED JANUARY 31, 2005? Between August 2004 and January 2005, the Federal Reserve introduced four one- quarter-point increases in the fed funds rate, raising this short-term target from 1.25% to 2.25%. (On February 2, 2005, following the end of this reporting period, the Fed announced another 0.25% increase, bringing the fed funds rate to 2.50%.) With the market anticipating increases in interest rates throughout the period, our focus centered on finding bonds that we believed could add immediate value to the Funds' portfolios while also preserving their ability to perform well under a variety of future market scenarios. Despite a decline in municipal issuance in both Michigan and Ohio, we continued to find some attractive opportunities to execute our management strategy and make several trades that could benefit the Funds. While not extensive during this period, our purchase activities for all these Funds generally emphasized finding premium bonds (those trading above their par value) with intermediate-term maturities - that is, bonds that will mature in 15 to 23 years. In many cases, bonds in this part of the yield curve offered yields similar to those of longer-term bonds with less inherent interest rate risk (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). Some of the additions to the portfolios during this period were financed with the proceeds from sales of lower-rated holdings, as we continued to take advantage of opportunities to selectively trim some BBB rated and nonrated holdings. These sales included some of our larger healthcare positions, especially in the Michigan Funds. Because lower-rated bonds generally performed well over the past year, demand for these bonds was strong and we were able to obtain attractive prices for the bonds we 4 sold. This process enabled us to reduce some of our more concentrated credit positions and improve overall diversification for many of the Funds. Another strategy designed to help us reduce interest rate risk is to hedge some of our interest rate exposure in the derivatives markets. We implemented a hedging program for NZW during this period. It is important to note that we did not use the hedge in an attempt to profit from correctly predicting the timing and direction of interest rate movements. Instead, our sole objective was to reduce NZW's duration (and therefore its price sensitivity to interest rate changes) without having a negative impact on its income stream or common share dividend over the short term. The cost of the hedge is reflected as an addition or subtraction to the Fund's net asset value (NAV) as the market value of the hedge fluctuates. The hedge did succeed in reducing the volatility of NZW's NAV over the course of this reporting period. At the same time, the hedge had a negative market value as of January 31, 2005, because long-term interest rates fell and bond prices rose during most of the time the hedge was in place. Please note that the hedge was put in place because the Fund's portfolio duration (and therefore its interest rate-related price volatility) was greater than the desired level. This means that, although the hedge lost value because bond prices in fact went up after the hedge was entered, the Fund's longer-than-target portfolio duration resulted in interest rate-driven increases in value that were greater than if the portfolio duration had been at the target level, and these excess interest rate-driven portfolio returns roughly coincided with and offset the losses on the hedge. While general obligation (GO) bonds issued by the state of Michigan were downgraded to Aa2 from Aa1 by Moody's in January 2005, this action had no discernable impact on our management strategies or on the performance of the Michigan Funds during this period. We generally focused our purchase activity on GO bonds issued by local governments, rather than the state, in the belief that this provided more stability and diversification. 5 HOW DID THE FUNDS PERFORM? Individual results for the Michigan and Ohio Funds, as well as for comparative indexes, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 1/31/05 MICHIGAN FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NUM 7.84% 7.81% 9.90% 7.82% -------------------------------------------------------------------------------- NMP 7.56% 7.86% 10.16% 8.34% -------------------------------------------------------------------------------- NZW 8.45% 8.30% NA NA -------------------------------------------------------------------------------- Lipper Michigan Municipal Debt Funds Average1 7.70% 7.28% 10.86% 7.81% -------------------------------------------------------------------------------- OHIO FUNDS -------------------------------------------------------------------------------- NUO 7.29% 7.37% 8.87% 7.83% -------------------------------------------------------------------------------- NXI 8.18% 8.88% NA NA -------------------------------------------------------------------------------- NBJ 8.62% 9.22% NA NA -------------------------------------------------------------------------------- NVJ 8.71% 8.42% NA NA -------------------------------------------------------------------------------- Lipper Other States Municipal Debt Funds Average2 12.14% 7.17% 11.32% 9.15% -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index3 4.80% 4.86% 7.50% 6.86% -------------------------------------------------------------------------------- *Six-month returns are cumulative; returns for one year, five years, and ten years are annualized. Past performance is not predictive of future results. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. For the six months ended January 31, 2005, the cumulative return on NAV for each of the Michigan and Ohio Funds outperformed the return on the Lehman Brothers Municipal Bond Index. NUM and NZW also outperformed the average return for the Lipper Michigan peer group for this period, while NMP trailed this measure by a slight margin. While each of the Ohio Funds underperformed the Lipper Other States category average, it is important to note that the Lipper return represents the overall average of returns for funds from 10 different states exhibiting a variety of municipal market conditions. We believe this makes direct comparisons between specific Funds and the Other States category average less meaningful. 1 The Lipper Michigan Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 6 months, 7 funds; 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 closed-end exchange-traded funds in this category for each period as follows: 6 months, 44 funds; 1 year, 44 funds; 5 years, 19 funds; and 10 years, 17 funds. Fund and Lipper returns assume reinvestment of dividends. 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. 6 The primary factor benefiting the six-month performances of these Funds relative to that of the unleveraged Lehman Brothers index was the Funds' use of financial leverage. While leveraging can add volatility to the Funds' NAVs and share prices, especially during periods when interest rates rise, this strategy also can provide opportunities for additional income and total return for common shareholders when short-term interest rates remain relatively low and long-term rates fall or remain fairly constant, as they did during this reporting period. In general, shorter-term municipal rates tended to rise during this six-month period and longer-term rates tended to fall, causing a flattening of the municipal yield curve. As a result, bonds with longer maturities or greater sensitivity to interest rate movements generally tended to perform better than bonds with shorter maturities or less interest rate sensitivity. This benefited the newer Funds, like NZW, NXI, NBJ and NVJ, because they had less exposure to the shorter end of the yield curve than the older funds like NUM, NMP and NUO. This accounted for most of the performance differential between these Funds over the six-month reporting period. All of the Funds benefited from their holdings of lower quality bonds, which generally outperformed other credit quality sectors as the economy improved. This was especially true in the healthcare sector, which ranked second in terms of performance among the Lehman Brothers municipal revenue sectors for the six-month period. NUM's and NMP's hospital holdings included Ba3 rated bonds issued for the Detroit Medical Center, which rebounded and became strong performers for the Funds. In the Ohio Funds, we continued to purchase hospital bonds, such as the AA rated Montgomery County Catholic Health Initiatives, which performed well since their addition to all four Ohio Fund portfolios in October 2004. Bonds backed by the 1998 master tobacco settlement agreement also were among the lower-rated credits that produced strong results during this period as the litigation environment improved. As of January 31, 2005, NUM, NMP and all four of the Ohio Funds held positions in tobacco bonds. 7 Pre-refunded bonds tended to underperform during this reporting period, due primarily to their shorter effective maturities. Older Funds typically have more advance refunded bonds than the more recently introduced Funds. As of January 31, 2005, NUM and NMP held 15% and 14%, respectively, of their portfolios in pre-refunded bonds, and this served as a mild constraint on their performance during this period. By contrast, NZW had 7% of its portfolio in pre-refunded bonds, NUO had 9%, and the remaining three Ohio Funds--NXI, NBJ and NVJ--had no pre-refunded bonds as of January 31, 2005. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF JANUARY 31, 2005? We continued to believe that, given the current geopolitical and economic climate, maintaining strong credit quality was an important requirement. As of January 31, 2005, all seven of these Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA among the Michigan Funds ranging from 87% in NZW to 89% in NUM and 90% in NMP, while the Ohio Funds had allocations ranging from 74% in NXI and 77% in NVJ to 81% in NBJ and 85% in NUO. At the end of January 2005, potential call exposure during 2005 and 2006 ranged from 2% in NVJ, 3% in NZW and NBJ, and 5% in NUM to 10% in NXI, 11% in NMP, and 15% in NUO. The number of actual bond calls in all of these Funds will depend largely on future market interest rates. 8 Dividend and Share Price INFORMATION As short-term interest rates remained relatively low throughout 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 these Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged Funds generally pay lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. This strategy helped to maintain the dividends of all of these Funds throughout the reporting period. In addition, due to capital gains generated by normal portfolio activity, common shareholders of the following Funds received capital gains and net ordinary income distributions at the end of December 2004 as indicated: NUM $0.1165 per share -------------------------------------------------------------------------------- NMP $0.0510 per share -------------------------------------------------------------------------------- NUO $0.0354 per share -------------------------------------------------------------------------------- NBJ $0.0225 per share -------------------------------------------------------------------------------- NVJ $0.0183 per share -------------------------------------------------------------------------------- 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 January 31, 2005, all of the Funds in this report had positive UNII balances for both financial statement and tax purposes. At the end of the reporting period, the Funds' share prices were trading at premiums and discounts to their NAVs as shown in the accompanying chart. FUND 1/31 PREM/DISC PERIOD AVG. PREM/DISC -------------------------------------------------------------------------------- NUM 0.43% 0.09% -------------------------------------------------------------------------------- NMP - 1.14% - 1.70% -------------------------------------------------------------------------------- NZW 3.52% - 0.06% -------------------------------------------------------------------------------- NUO 12.17% 5.25% -------------------------------------------------------------------------------- NXI 2.72% 5.97% -------------------------------------------------------------------------------- NBJ 2.94% 3.56% -------------------------------------------------------------------------------- NVJ 0.19% 0.21% -------------------------------------------------------------------------------- 9 Nuveen Michigan Quality Income Municipal Fund, Inc. NUM Performance OVERVIEW As of January 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 78% AA 11% A 7% BBB 2% BB or Lower 1% NR 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.079 Mar 0.079 Apr 0.079 May 0.079 Jun 0.079 Jul 0.079 Aug 0.079 Sep 0.079 Oct 0.079 Nov 0.079 Dec 0.079 Jan 0.079 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 16.35 16.3 16.38 16.45 16.37 16.45 16.38 16.36 16.37 16.37 16.32 16.4 16.48 16.39 16.4 16.49 16.48 16.47 16.4 16.4 16.5 16.5 16.46 16.45 16.53 16.48 16.57 16.52 16.46 16.59 16.53 16.51 16.53 16.63 16.55 16.49 16.54 16.55 16.59 16.43 16.37 16.33 16.37 16.4 16.05 15.84 15.5 15.5 15.65 15.65 15.59 15.6 15.3 15.22 15.26 15.25 15.49 15.27 15.25 15.1 14.72 14.73 14.78 15.16 15.29 15.25 15.42 15.06 14.7 14.69 14.63 14.39 14.48 14.55 14.56 14.57 14.41 14.33 14.44 14.48 14.5 14.6 14.75 14.77 14.77 14.67 14.8 14.83 14.84 14.78 14.81 14.81 14.89 14.88 14.99 14.86 14.76 14.75 14.78 14.75 14.75 14.64 14.63 14.69 14.73 14.75 14.9 14.9 14.97 15.08 14.99 15 15.14 15.13 15.11 15.04 15.05 15.08 15.05 15.04 15.05 15.07 15.18 15.11 15.1 15.08 15.2 15.2 15.33 15.45 15.5 15.5 15.49 15.49 15.45 15.48 15.45 15.41 15.62 15.57 15.45 15.57 15.6 15.56 15.75 15.8 15.62 15.78 15.8 15.8 15.9 16.1 15.7 15.73 15.78 15.9 15.85 15.72 15.63 15.78 15.74 15.67 15.58 15.65 15.7 15.87 15.82 15.9 16.03 15.87 15.74 15.68 15.73 15.85 15.93 15.84 15.92 15.9 15.87 15.73 15.9 15.85 16.02 16 16.1 16.2 16.21 16.1 16.26 16.27 16.25 16.53 16.53 16.68 16.5 16.55 16.57 16 15.7 15.75 15.84 15.91 15.97 16.04 16.05 16.05 16.05 15.99 15.99 15.87 15.91 16.05 15.91 15.95 15.85 15.72 15.78 15.84 15.8 15.85 15.95 15.95 15.94 15.96 16.05 16.14 16.1 16 15.91 15.86 16.2 16.19 16.24 16.3 16.45 16.36 16.3 16.45 16.39 16.5 16.4 16.25 16.15 16.08 16.07 16.04 16.2 16.24 16.07 16.04 16.08 16.13 16.09 16.11 16.02 1/31/05 16.19 FUND SNAPSHOT ------------------------------------ Share Price $16.19 ------------------------------------ Common Share Net Asset Value $16.12 ------------------------------------ Premium/(Discount) to NAV 0.43% ------------------------------------ Market Yield 5.86% ------------------------------------ Taxable-Equivalent Yield1 8.49% ------------------------------------ Net Assets Applicable to Common Shares ($000) $188,558 ------------------------------------ Average Effective Maturity on Securities (Years) 16.12 ------------------------------------ Leverage-Adjusted Duration 8.87 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 10.45% 7.84% (Cumulative) ------------------------------------ 1-Year 5.92% 7.81% ------------------------------------ 5-Year 11.18% 9.90% ------------------------------------ 10-Year 7.77% 7.82% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 28.0% ------------------------------------ U.S. Guaranteed 17.4% ------------------------------------ Tax Obligation/Limited 15.6% ------------------------------------ Healthcare 12.5% ------------------------------------ Utilities 8.1% ------------------------------------ Water and Sewer 6.4% ------------------------------------ Education and Civic Organizations 5.7% ------------------------------------ Other 6.3% ------------------------------------ 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 2004 of $0.1165 per share. 10 Nuveen Michigan Premium Income Municipal Fund, Inc. NMP Performance OVERVIEW As of January 31, 2005 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: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.077 Mar 0.077 Apr 0.077 May 0.077 Jun 0.077 Jul 0.077 Aug 0.077 Sep 0.077 Oct 0.077 Nov 0.077 Dec 0.077 Jan 0.077 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 16.03 16.02 15.95 15.9 15.97 15.97 15.78 15.73 15.79 15.81 15.88 15.91 15.86 15.88 15.88 15.82 15.91 15.93 15.95 15.95 15.96 15.98 15.98 15.96 16.03 16.03 16.06 16 16.02 16.1 16.1 16.1 16.05 16.1 16.1 16.1 16.08 16.13 16.15 16.05 16.05 15.99 15.99 15.99 15.75 15.48 15.5 15.6 15.7 15.45 15.63 15.4 15.16 15.1 15.05 14.93 14.6 14.51 14.26 14.22 14.33 14.25 14.5 14.6 14.7 15 14.92 14.8 14.4 13.66 13.85 13.94 13.76 13.85 13.7 13.61 13.72 13.8 13.9 13.76 13.89 14.05 14.07 14.03 14.03 13.98 14.05 14.06 14.08 14.1 14.1 14.05 14.04 13.91 13.94 13.93 13.97 14.1 14.03 14 13.94 13.95 13.82 13.89 13.73 13.93 14.1 14.17 14.27 14.45 14.62 14.4 14.5 14.46 14.5 14.4 14.5 14.59 14.36 14.3 14.31 14.3 14.27 14.17 14.24 14.34 14.37 14.37 14.49 14.58 14.58 14.53 14.62 14.77 14.7 14.73 14.72 14.74 14.8 14.74 14.8 14.62 14.75 14.75 14.65 14.64 14.66 14.8 14.85 14.9 15.16 15.13 15.04 15.01 15.14 15.15 15.05 14.95 15.1 15.15 15.39 15.33 15.12 15.15 15.29 15.2 15.14 15.12 15.24 15.35 15.27 15.24 15.32 15.49 15.36 15.48 15.31 15.42 15.55 15.67 15.48 15.58 15.7 15.55 15.754 15.7 15.61 15.51 15.75 15.64 15.77 15.74 15.74 15.8 15.8 15.81 15.7 15.37 15.36 15.28 15.39 15.37 15.45 15.75 15.58 15.66 15.6 15.59 15.59 15.62 15.53 15.53 15.51 15.34 15.44 15.53 15.61 15.5 15.46 15.46 15.38 15.32 15.12 15.05 15.15 15.16 15.1 15.25 15.25 15.16 15.26 15.22 15.06 15.11 15.24 15.13 15.19 15.14 15.23 15.35 15.15 15.3 15.34 15.39 15.41 15.5 15.65 15.72 15.72 15.85 15.91 15.72 15.83 15.8 15.76 1/31/05 15.63 FUND SNAPSHOT ------------------------------------ Share Price $15.63 ------------------------------------ Common Share Net Asset Value $15.81 ------------------------------------ Premium/(Discount) to NAV -1.16% ------------------------------------ Market Yield 5.91% ------------------------------------ Taxable-Equivalent Yield1 8.57% ------------------------------------ Net Assets Applicable to Common Shares ($000) $122,334 ------------------------------------ Average Effective Maturity on Securities (Years) 16.78 ------------------------------------ Leverage-Adjusted Duration 7.80 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 12.44% 7.56% (Cumulative) ------------------------------------ 1-Year 4.35% 7.86% ------------------------------------ 5-Year 12.22% 10.16% ------------------------------------ 10-Year 9.25% 8.34% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 27.2% ------------------------------------ Tax Obligation/Limited 21.4% ------------------------------------ U.S. Guaranteed 16.0% ------------------------------------ Healthcare 10.3% ------------------------------------ Utilities 9.4% ------------------------------------ Education and Civic Organizations 5.4% ------------------------------------ Other 10.3% ------------------------------------ 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 2004 of $0.0510 per share. 11 Nuveen Michigan Dividend Advantage Municipal Fund NZW Performance OVERVIEW As of January 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 69% AA 18% A 8% BBB 4% BB or Lower 1% Bar Chart: 2004-2005 Monthly Tax-Free Dividends Per Share Feb 0.0745 Mar 0.0745 Apr 0.0745 May 0.0745 Jun 0.0745 Jul 0.0745 Aug 0.0745 Sep 0.0745 Oct 0.0745 Nov 0.0745 Dec 0.0745 Jan 0.0745 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 15.66 15.66 15.66 15.62 15.7 15.7 15.71 15.79 15.79 15.79 15.8 15.9 15.9 15.8 15.71 15.71 15.72 15.75 15.83 15.83 15.87 15.88 15.95 15.9 16.07 15.8 15.9 15.89 15.81 15.73 15.65 15.78 15.86 15.9 15.9 15.9 15.85 15.97 15.98 15.96 15.91 15.93 15.94 15.95 15.89 15.49 14.96 14.91 14.8 14.8 14.38 14.3 14.32 14.2 14.3 14.21 14.2 13.97 13.97 13.97 14 14.19 14.3 14.35 14.38 14.68 14.65 14.51 14.1 14.2 14.2 14.13 14.2 14.28 14.22 14.12 13.85 13.89 13.76 13.76 13.69 13.87 13.98 13.97 13.97 13.96 13.98 13.94 13.81 13.8 13.89 13.83 13.74 13.64 13.7 13.6 13.6 13.65 13.69 13.69 13.69 13.5 13.52 13.48 13.46 13.53 13.65 13.7 13.85 13.85 13.97 14.01 14.1 14.1 14.06 14.01 14.08 14.3 14.44 14.34 14.36 14.35 14.2 14.44 14.44 14.45 14.65 14.65 14.76 14.99 14.9 14.75 14.75 14.76 14.72 14.67 14.71 14.85 14.87 14.8 14.9 14.9 15.11 15.18 15.15 15.15 15.13 15.14 14.89 15 14.92 14.9 14.9 14.89 14.8 14.8 14.88 14.84 14.86 14.86 15 15 15 14.8 15.01 15.17 15.1 15.1 15.12 15.24 15.24 15.24 15.15 15.25 15.1 15.1 15.16 15.05 15.1 15 15 14.95 14.95 14.9 14.854 14.99 14.99 15.07 15.01 15.15 15.2 15.21 15.21 15.2 15.39 15.3 15.4 15.02 14.99 14.93 14.84 14.76 14.84 14.9 15.05 15.23 15.35 15.17 15.17 15.25 15.55 15.61 15.61 15.61 15.63 15.25 15.31 15.15 15.13 15.31 15.31 15.18 15.2 15.2 15.19 15.25 15.14 15.1 15.08 15.22 15.3 15.47 15.47 15.54 15.71 15.71 15.55 15.75 15.5 15.5 15.63 15.7 15.75 15.85 15.85 15.95 16.15 16.35 16.46 16.25 15.85 15.85 15.93 16.04 16.04 1/31/05 16.16 FUND SNAPSHOT ------------------------------------ Share Price $16.16 ------------------------------------ Common Share Net Asset Value $15.61 ------------------------------------ Premium/(Discount) to NAV 3.52% ------------------------------------ Market Yield 5.53% ------------------------------------ Taxable-Equivalent Yield1 8.01% ------------------------------------ Net Assets Applicable to Common Shares ($000) $32,171 ------------------------------------ Average Effective Maturity on Securities (Years) 19.11 ------------------------------------ Leverage-Adjusted Duration 7.68 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 13.53% 8.45% (Cumulative) ------------------------------------ 1-Year 9.47% 8.30% ------------------------------------ Since Inception 8.19% 8.59% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 31.4% ------------------------------------ Tax Obligation/Limited 19.0% ------------------------------------ Healthcare 10.3% ------------------------------------ Utilities 10.2% ------------------------------------ Water and Sewer 7.9% ------------------------------------ U.S. Guaranteed 7.9% ------------------------------------ Education and Civic Organizations 4.8% ------------------------------------ Other 8.5% ------------------------------------ 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. 12 Nuveen Ohio Quality Income Municipal Fund, Inc. NUO Performance OVERVIEW As of January 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 63% AA 22% A 8% BBB 5% BB or Lower 1% NR 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.0835 Mar 0.0835 Apr 0.0835 May 0.0835 Jun 0.0835 Jul 0.0835 Aug 0.0835 Sep 0.0835 Oct 0.0835 Nov 0.0835 Dec 0.0835 Jan 0.0835 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 18.28 18.13 18.14 18.05 18.1 18.15 18.07 18.08 18.07 18.08 18.08 18.01 18.03 18.06 18.07 18.13 18.4 18.45 18.35 18.35 18.35 18.48 18.4 18.3 18.4 18.68 18.68 18.55 18.28 18.49 18.66 18.65 18.74 18.73 18.73 18.55 18.48 18.69 18.75 18.78 18.53 18.48 18.46 18.45 18.3 18 17.9 18 17.78 17.89 17.45 17.5 17.47 17.3 17.05 17.08 16.7 16.6 16.55 16.23 16.22 15.7 15.95 16 16 16 16.02 16.05 15.8 15.4 15.39 15.4 15.32 15.31 15.4 15.4 15.46 15.55 15.53 15.6 15.84 15.85 15.91 15.93 15.93 15.91 15.94 16.05 16.09 16.03 16.01 16.24 16.05 15.78 15.72 15.63 15.64 15.62 15.75 15.75 15.67 15.68 15.72 15.7 15.6 15.7 15.84 16.03 16.04 16.29 16.44 16.58 16.6 16.44 16.44 16.43 16.62 16.66 16.8 16.7 16.5 16.64 16.6 16.3 16.24 16.25 16.3 16.3 16.32 16.36 16.41 16.42 16.51 16.45 16.4 16.45 16.4 16.4 16.43 16.51 16.38 16.52 16.6 16.65 16.65 16.71 16.8 16.88 16.99 17 17.05 16.91 16.89 16.97 16.88 16.86 16.91 16.86 16.75 16.86 16.85 16.8 16.9 16.98 16.95 16.9 16.84 16.9 17 17.06 17.05 17.13 16.9 16.98 16.94 17 16.94 16.97 17.1 17.05 17.09 17.2 17.17 17.09 16.98 17.06 17.05 17.04 17.15 17.22 17.29 17.51 17.51 17.45 17.3 17.35 17.6 17.42 17.36 17.37 17.39 17.29 17.4 17.43 17.54 17.61 17.74 17.65 17.84 17.8 17.8 17.88 17.87 17.82 18.04 17.91 17.98 18.29 18.4 18.2 18.25 18.22 18.08 18.1 18.05 18.09 18.13 18.1 18.05 18.16 18.21 18.2 18.42 18.5 18.51 18.67 18.45 18.427 18.45 18.6 18.4 18.19 18.1 17.85 17.8 18.15 18.4 18.59 18.7 18.5 18.6 18.7 18.8 18.85 18.6 1/31/05 18.89 FUND SNAPSHOT ------------------------------------ Share Price $18.89 ------------------------------------ Common Share Net Asset Value $16.84 ------------------------------------ Premium/(Discount) to NAV 12.17% ------------------------------------ Market Yield 5.30% ------------------------------------ Taxable-Equivalent Yield1 7.91% ------------------------------------ Net Assets Applicable to Common Shares ($000) $163,186 ------------------------------------ Average Effective Maturity on Securities (Years) 16.88 ------------------------------------ Leverage-Adjusted Duration 7.57 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 19.41% 7.29% (Cumulative) ------------------------------------ 1-Year 9.50% 7.37% ------------------------------------ 5-Year 10.32% 8.87% ------------------------------------ 10-Year 8.95% 7.83% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 31.2% ------------------------------------ Healthcare 17.4% ------------------------------------ U.S. Guaranteed 10.1% ------------------------------------ Water and Sewer 7.9% ------------------------------------ Education and Civic Organizations 6.6% ------------------------------------ Housing/Multifamily 6.5% ------------------------------------ Transportation 5.5% ------------------------------------ Utilities 4.9% ------------------------------------ Other 9.9% ------------------------------------ 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. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0354 per share. 13 Nuveen Ohio Dividend Advantage Municipal Fund NXI Performance OVERVIEW As of January 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 51% AA 23% A 12% BBB 11% BB or Lower 2% NR 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Feb 0.081 Mar 0.081 Apr 0.081 May 0.081 Jun 0.081 Jul 0.081 Aug 0.081 Sep 0.081 Oct 0.081 Nov 0.081 Dec 0.081 Jan 0.081 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 16 16.07 16.14 16.17 16.2 16.2 16.24 16.45 16.73 16.9 16.82 16.88 16.51 16.49 16.49 16.6 16.7 16.7 16.75 16.75 16.75 16.76 16.76 16.88 16.95 16.94 16.92 16.77 16.89 16.85 16.9 16.96 17.24 17.2 16.96 16.95 17 17.02 16.91 16.92 17.02 16.97 17.07 16.82 16.3 16.1 15.69 15.7 15.89 15.65 15.24 15.26 15 15.1 15.09 15.37 15.19 15.13 15.05 14.95 14.71 14.64 14.63 14.65 14.74 14.65 14.5 14.5 14.19 13.91 13.95 14.06 14.35 14.36 14.57 14.51 14.6 14.48 14.48 14.19 14.49 14.76 14.56 14.56 14.56 14.35 14.36 14.3 14.17 14.17 14.24 14.12 14.31 14.13 14.26 14.35 14.4 14.44 14.51 14.36 14.39 14.65 14.57 14.41 14.35 14.24 14.45 14.6 14.8 14.65 14.98 14.81 14.76 14.64 14.69 15.06 15 15.1 15.08 14.86 14.71 14.86 14.71 14.72 14.8 14.71 14.8 14.8 14.79 14.86 14.86 14.85 15.07 15.21 15.16 15.21 15.27 15.25 15.25 15.5 15.56 15.55 15.87 15.9 16.01 15.85 15.61 15.72 15.85 15.95 16 16.04 15.95 15.95 16.25 16.39 16.39 16.42 16.04 16.1 16.1 16.01 16.15 16.35 16.42 16.23 16.22 16.37 16.23 16.35 16.3 16.2 16.21 16.29 16.2 16.1 16.22 16.22 16.24 16.4 16.38 16.39 16.4 16.32 16.26 16.3 16.43 16.49 16.62 16.63 16.55 16.65 16.65 16.74 16.77 16.65 16.67 16.58 16.55 16.55 16.47 16.6 16.6 16.6 16.44 16.89 16.89 16.72 16.61 16.6 16.6 16.69 16.75 16.73 16.78 16.55 16.71 16.8 16.8 16.8 16.95 17.1 17 16.95 16.88 16.9 16.74 16.57 16.55 16.64 16.79 16.8 17.31 17.47 17.24 17.75 17.65 18 17.38 17.45 17.25 17.25 17.07 16.39 16.44 16.44 16.4 16.48 16.61 16.34 16.45 16.46 16.26 16.26 16.27 1/31/05 16.21 FUND SNAPSHOT ------------------------------------ Share Price $16.21 ------------------------------------ Common Share Net Asset Value $15.78 ------------------------------------ Premium/(Discount) to NAV 2.72% ------------------------------------ Market Yield 6.00% ------------------------------------ Taxable-Equivalent Yield1 8.96% ------------------------------------ Net Assets Applicable to Common Shares ($000) $66,787 ------------------------------------ Average Effective Maturity on Securities (Years) 17.73 ------------------------------------ Leverage-Adjusted Duration 7.25 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 12.79% 8.18% (Cumulative) ------------------------------------ 1-Year 7.70% 8.88% ------------------------------------ Since Inception 8.17% 8.90% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 29.7% ------------------------------------ Education and Civic Organizations 17.0% ------------------------------------ Healthcare 14.5% ------------------------------------ Utilities 8.6% ------------------------------------ Tax Obligation Limited 8.0% ------------------------------------ Water and Sewer 6.8% ------------------------------------ Housing/Multifamily 5.0% ------------------------------------ Other 10.4% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 14 Nuveen Ohio Dividend Advantage Municipal Fund 2 NBJ Performance OVERVIEW As of January 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 68% AA 13% A 10% BBB 8% NR 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.077 Mar 0.077 Apr 0.077 May 0.077 Jun 0.077 Jul 0.077 Aug 0.077 Sep 0.077 Oct 0.077 Nov 0.077 Dec 0.077 Jan 0.077 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 16.15 16.1 16 16.16 16.14 16.02 16.07 15.92 15.98 16 16.03 16 15.95 15.92 15.93 15.94 15.92 15.96 15.97 15.97 16.02 15.99 15.9 15.89 16.09 16.08 16.08 16.07 15.93 15.95 16.09 16.15 16.3 16.25 16.11 16.17 16.17 16.14 16.18 16.42 16.4 16.2 16.25 16.25 15.8 15.6 15.18 15.18 15.12 15.1 14.61 14.74 14.54 14.6 14.6 14.35 14.35 14.5 14.3 14.15 14.09 14.05 13.88 14.05 14.3 14.08 14.2 14.25 14.15 13.75 13.75 13.85 13.82 13.95 13.77 13.97 14.09 13.96 14 13.97 14 14.05 14.04 14.05 14.05 14.1 13.95 13.9 13.76 13.81 13.85 13.63 13.7 13.52 13.6 13.6 13.68 13.8 13.8 13.55 13.65 13.62 13.77 13.8 13.75 13.85 13.89 14.01 14.15 14.15 14.15 14.13 14.29 14.25 14.61 14.63 14.62 14.8 14.65 14.6 14.62 14.62 14.51 14.63 14.63 14.63 14.7 14.7 14.65 14.7 14.7 14.95 15.09 15.04 15.03 15.11 15.18 15.1 15.05 15.05 15 15 15.2 15.5 15.18 15.17 15.35 15.45 15.47 15.48 15.48 15.48 15.48 15.8 15.61 15.53 15.7 15.57 15.45 15.5 15.57 15.63 15.52 15.58 15.51 15.75 15.58 15.56 15.57 15.65 15.55 15.5 15.45 15.34 15.36 15.35 15.52 15.65 15.7 15.72 15.6 15.75 15.93 15.93 15.95 15.99 16 16 16.1 15.93 16.03 16.2 16.2 16.3 16.38 16.41 16.4 16.33 16.2 16.15 16.05 16.17 16.2 16.25 16.27 16.12 16.25 16.27 16.36 16.14 16.1 16.15 16.15 16.02 16.15 16.05 16.22 16.12 16.11 16.13 16.18 16.28 16.28 16.3 16.24 16.3 16.3 16.36 16.39 16.3 16.3 16.32 16.53 16.41 16.5 16.65 17.16 16.75 16.62 16.52 16.58 16.41 16.55 15.9 16.08 16 16.09 16.15 15.98 15.99 16 16 15.97 15.99 16.16 1/31/05 16.09 FUND SNAPSHOT ------------------------------------ Share Price $16.09 ------------------------------------ Common Share Net Asset Value $15.63 ------------------------------------ Premium/(Discount) to NAV 2.94% ------------------------------------ Market Yield 5.74% ------------------------------------ Taxable-Equivalent Yield1 8.57% ------------------------------------ Net Assets Applicable to Common Shares ($000) $48,729 ------------------------------------ Average Effective Maturity on Securities (Years) 17.23 ------------------------------------ Leverage-Adjusted Duration 8.54 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 2.81% 8.62% (Cumulative) ------------------------------------ 1-Year 5.52% 9.22% ------------------------------------ Since Inception 8.14% 8.76% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 36.8% ------------------------------------ Healthcare 15.8% ------------------------------------ Tax Obligation/Limited 11.2% ------------------------------------ Education and Civic Organizations 8.6% ------------------------------------ Utilities 6.0% ------------------------------------ Consumer Staples 5.7% ------------------------------------ Transportation 5.3% ------------------------------------ Water and Sewer 5.2% ------------------------------------ Other 5.4% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 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 2004 of $0.0225 per share. 15 Nuveen Ohio Dividend Advantage Municipal Fund 3 NVJ Performance OVERVIEW As of January 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 55% AA 22% A 16% BBB 7% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Feb 0.073 Mar 0.073 Apr 0.073 May 0.073 Jun 0.073 Jul 0.073 Aug 0.073 Sep 0.073 Oct 0.073 Nov 0.073 Dec 0.073 Jan 0.073 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 2/1/04 15.84 15.7 15.7 15.68 16.1 16.1 16.1 16.1 15.82 15.99 16 16 16.21 16.25 16.5 16.41 16.3 16.35 16.43 16.43 16.11 15.94 15.95 15.95 15.95 16.02 16.04 16.04 16.06 16.06 16 16.08 16.23 16.5 16.6 16.61 16.61 16.41 16.41 16.55 16.55 16.39 16.33 16.48 15.89 15.8 15.61 15 15.05 14.95 14.95 14.55 14.42 14.6 14.59 14.61 14.39 14.33 14.05 14 13.86 13.83 13.82 13.8 13.9 13.72 13.79 13.75 13.35 13.35 13.38 13.2 13.2 13.1 13.22 13.22 13.25 13.32 13.41 13.47 13.34 13.39 13.56 13.6 13.6 13.72 13.39 13.46 13.74 13.79 13.7 13.6 13.65 13.43 13.4 13.4 13.26 13.26 13.31 13.47 13.34 13.5 13.41 13.5 13.6 13.49 13.61 13.61 13.7 13.7 13.85 14 14 13.82 14.29 14.5 14.5 14.4 14.4 14.3 14.2 14.2 14.31 14.35 14.39 14.2 14.3 14.3 14.25 14.35 14.34 14.35 14.46 14.37 14.5 14.54 14.55 14.55 14.56 14.63 14.49 14.5 14.54 14.65 14.65 14.65 14.89 15.1 15.03 15.05 15.3 15.05 15.08 15.2 15.5 15.45 15.4 15.13 15.13 15.07 15.19 15.1 15.1 15.11 15.1 14.95 15.01 15.12 15.09 15.12 15.06 15.05 14.88 14.94 14.83 14.82 15 15.15 15.01 14.89 15.06 15 14.95 15 15.19 14.96 14.96 14.96 14.91 14.96 15.07 15.03 15.03 15.08 15.3 15.22 15.12 15.1 15.16 15.34 15.46 15.5 15.5 15.4 15.4 15.46 15.65 15.82 16.2 16.1 15.94 16.2 16.05 16.12 16.12 16.12 16.12 16.12 16.14 16.25 16.24 16.3 16.29 16.31 16.478 16.5 16.64 16.61 16.61 16.66 16.5 16.35 16.58 16.6 16.49 16.87 17.28 17.28 17.1 17 16.95 16.7 16.59 16.2 16.08 16.01 16.01 16.04 16 15.7 15.8 15.8 15.69 15.7 15.73 1/31/05 15.79 FUND SNAPSHOT ------------------------------------ Share Price $15.79 ------------------------------------ Common Share Net Asset Value $15.76 ------------------------------------ Premium/(Discount) to NAV 0.19% ------------------------------------ Market Yield 5.55% ------------------------------------ Taxable-Equivalent Yield1 8.28% ------------------------------------ Net Assets Applicable to Common Shares ($000) $34,008 ------------------------------------ Average Effective Maturity on Securities (Years) 16.97 ------------------------------------ Leverage-Adjusted Duration 9.04 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month 13.69% 8.71% (Cumulative) ------------------------------------ 1-Year 6.43% 8.42% ------------------------------------ Since Inception 8.02% 9.65% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 32.8% ------------------------------------ Healthcare 15.8% ------------------------------------ Tax Obligation/Limited 15.2% ------------------------------------ Education and Civic Organizations 9.3% ------------------------------------ Water and Sewer 8.7% ------------------------------------ Transportation 6.2% ------------------------------------ Consumer Staples 4.1% ------------------------------------ Other 7.9% ------------------------------------ 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. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0183 per share. 16 Shareholder MEETING REPORT The Shareholder Meeting was held in Chicago, Illinois, on November 17, 2004.
NUM NMP NZW ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 10,572,136 -- 6,854,182 -- 2,001,499 -- Withhold 102,010 -- 91,746 -- 10,148 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,674,146 -- 6,945,928 -- 2,011,647 -- ==================================================================================================================================== Lawrence H. Brown For 10,568,667 -- 6,851,967 -- 1,992,899 -- Withhold 105,479 -- 93,961 -- 18,748 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,674,146 -- 6,945,928 -- 2,011,647 -- ==================================================================================================================================== Jack B. Evans For 10,566,727 -- 6,854,632 -- 2,001,499 -- Withhold 107,419 -- 91,296 -- 10,148 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,674,146 -- 6,945,928 -- 2,011,647 -- ==================================================================================================================================== William C. Hunter For 10,563,420 -- 6,854,367 -- 2,001,499 -- Withhold 110,726 -- 91,561 -- 10,148 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,674,146 -- 6,945,928 -- 2,011,647 -- ==================================================================================================================================== William J. Schneider For -- 3,593 -- 2,192 -- 636 Withhold -- 21 -- 7 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,614 -- 2,199 -- 636 ==================================================================================================================================== Timothy R. Schwertfeger For -- 3,593 -- 2,192 -- 636 Withhold -- 21 -- 7 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,614 -- 2,199 -- 636 ==================================================================================================================================== Judith M. Stockdale For 10,561,279 -- 6,854,212 -- 2,001,499 -- Withhold 112,867 -- 91,716 -- 10,148 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,674,146 -- 6,945,928 -- 2,011,647 -- ====================================================================================================================================
17 Shareholder MEETING REPORT (continued)
NUO NXI ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: (CONTINUED) Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 8,727,410 -- 4,126,440 -- Withhold 74,224 -- 23,660 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 8,801,634 -- 4,150,100 -- ==================================================================================================================================== Lawrence H. Brown For 8,726,087 -- 4,124,415 -- Withhold 75,547 -- 25,685 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 8,801,634 -- 4,150,100 -- ==================================================================================================================================== Jack B. Evans For 8,720,442 -- 4,126,440 -- Withhold 81,192 -- 23,660 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 8,801,634 -- 4,150,100 -- ==================================================================================================================================== William C. Hunter For 8,716,779 -- 4,126,440 -- Withhold 84,855 -- 23,660 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 8,801,634 -- 4,150,100 -- ==================================================================================================================================== William J. Schneider For -- 2,974 -- 1,200 Withhold -- 33 -- 21 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,007 -- 1,221 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,974 -- 1,200 Withhold -- 33 -- 21 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,007 -- 1,221 ==================================================================================================================================== Judith M. Stockdale For 8,719,664 -- 4,125,640 -- Withhold 81,970 -- 24,460 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 8,801,634 -- 4,150,100 -- ====================================================================================================================================
18
NBJ NVJ ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 3,036,346 -- 2,103,575 -- Withhold 17,855 -- 24,002 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,054,201 -- 2,127,577 -- ==================================================================================================================================== Lawrence H. Brown For 3,030,372 -- 2,102,575 -- Withhold 23,829 -- 25,002 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,054,201 -- 2,127,577 -- ==================================================================================================================================== Jack B. Evans For 3,031,631 -- 2,103,575 -- Withhold 22,570 -- 24,002 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,054,201 -- 2,127,577 -- ==================================================================================================================================== William C. Hunter For 3,021,947 -- 2,093,575 -- Withhold 32,254 -- 34,002 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,054,201 -- 2,127,577 -- ==================================================================================================================================== William J. Schneider For -- 881 -- 660 Withhold -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 881 -- 660 ==================================================================================================================================== Timothy R. Schwertfeger For -- 881 -- 660 Withhold -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 881 -- 660 ==================================================================================================================================== Judith M. Stockdale For 3,036,346 -- 2,103,575 -- Withhold 17,855 -- 24,002 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,054,201 -- 2,127,577 -- ====================================================================================================================================
19 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 8.5% (5.7% OF TOTAL INVESTMENTS) $ 1,720 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA $ 1,815,907 Series 1998, 5.000%, 10/01/23 - AMBAC Insured 1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,901,640 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 1,627,815 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 1,059,270 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 1,146,538 1,115 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,201,000 1,170 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,255,808 Wayne State University, Michigan, General Revenue Bonds, Series 1999: 3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,789,498 1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,059,630 1,000 Western Michigan University, General Revenue Refunding 11/13 at 100.00 AAA 1,085,940 Bonds, Series 2003, 5.000%, 11/15/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 18.6% (12.5% OF TOTAL INVESTMENTS) 2,900 Dearborn Hospital Finance Authority, Michigan, Hospital 11/05 at 102.00 AAA 3,025,570 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 1,321,252 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 3,722,705 Spectrum Health, Series 2001A, 5.250%, 1/15/21 1,709 Michigan State Hospital Finance Authority, Collateralized Loan, No Opt. Call Baa2 1,723,902 Detroit Medical Center, Series 2001, 7.360%, 3/01/07 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,641,405 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A 1,083,370 Refunding Bonds, OSF Healthcare System, Series 1999, 6.125%, 11/15/19 1,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/09 at 101.00 AAA 1,900,226 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 Mt. Clemens Corporation Obligated Group, Series 1999A: 3,385 5.750%, 5/15/17 - MBIA Insured 5/09 at 101.00 AAA 3,765,643 500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 547,425 2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 2,396,682 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 BBB+ 1,044,880 Refunding 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 5,367,700 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 5,781,325 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+ 1,801,041 Series 1991, 0.000%, 12/01/10 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.4% (3.6% OF TOTAL INVESTMENTS) $ 2,675 Michigan Housing Development Authority, FNMA Limited 12/20 at 101.00 AAA $ 2,885,683 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 1,857,240 Limited Obligation Multifamily Revenue Bonds, Renaissance Apartments, Series 2002, 5.500%, 8/01/35 (Alternative Minimum Tax) 3,115 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 3,195,865 Revenue Bonds, Series 1995B, 6.150%, 10/01/15 - MBIA Insured 2,110 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 2,157,581 Revenue Bonds, Series 1999A, 5.300%, 10/01/37 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,059,800 Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.8% (1.2% OF TOTAL INVESTMENTS) 3,300 Michigan State Hospital Finance Authority, Hospital Revenue 1/07 at 102.00 N/R 3,142,788 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+ 201,906 Refunding Bonds, Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,750 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,775,200 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 41.6% (28.0% OF TOTAL INVESTMENTS) 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 2,050,929 1,435 5.750%, 5/01/30 - FSA Insured 5/10 at 100.00 AAA 1,596,538 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+ 2,699,700 3,200 5.000%, 5/01/29 5/11 at 100.00 AA+ 3,309,888 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA+ 1,065,840 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 1,047,840 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 1,302,348 Series 2002, 5.000%, 10/01/20 1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AA+ 1,482,294 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+ 2,325,600 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 1,068,500 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 2,101,880 Bonds, School Bond Loan Fund - QSBLF, Series 1997, 5.250%, 5/01/23 - MBIA Insured 1,195 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 1,316,818 5.250%, 4/01/24 - AMBAC Insured 2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call AAA 2,459,400 Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured 1,065 Edwardsburg Public School, Cass County, Michigan, General 5/14 at 100.00 AAA 1,148,741 Obligation Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 21 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Fitzgerald Public School District, Macomb County, Michigan, General Obligation Bonds, Series 2004B: $ 1,150 5.000%, 5/01/16 - AMBAC Insured 11/14 at 100.00 AAA $ 1,273,855 2,100 5.000%, 5/01/17 - AMBAC Insured 11/14 at 100.00 AAA 2,313,507 1,085 Freeland Community School District, Saginaw, Midland and 5/10 at 100.00 AA+ 1,186,990 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 3,387,615 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 3,333,317 3,000 0.000%, 12/01/26 No Opt. Call AAA 1,055,970 1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA+ 1,512,406 Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,500 Huron Valley School District, Oakland and Livingston 11/11 at 100.00 AA+ 1,693,305 Counties, Michigan, General Obligation Bonds, Series 2001, 5.500%, 5/01/17 1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,148,741 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA+ 2,138,300 General Obligation Bonds, Series 2002, 5.000%, 5/01/24 1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AAA 1,891,654 Series 2003A, 5.000%, 6/01/26 - MBIA Insured 1,785 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,933,976 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 4,000 Michigan, General Obligation Bonds, Environmental Protection 5/13 at 100.00 AA+ 4,437,120 Program, Series 2003A, 5.250%, 5/01/20 4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,606,633 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 3,102,525 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 1,391,105 Obligation Bonds, Series 2002, 5.250%, 5/01/19 - MBIA Insured 1,625 Northville Public Schools, Wayne County, Michigan, General 11/11 at 100.00 AA+ 1,815,986 Obligation Bonds, Series 2001, 5.375%, 5/01/18 1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,068,040 Obligation Bonds, Series 2002, 5.125%, 9/01/22 4,200 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 5,008,080 Refunding Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured 2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,712,450 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 1,176,095 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 2,114,125 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+ 1,269,979 General Obligation Bonds, Series 2001, 5.500%, 5/01/17 1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 2,029,997 Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 23.1% (15.6% OF TOTAL INVESTMENTS) $ 1,800 Wayne County, Dearborn Heights, Michigan, Tax Increment 10/10 at 100.00 AAA $ 1,905,336 Financing Authority, Limited Tax General Obligation Bonds, Police and Courthouse Facility, Series 2001A, 5.000%, 10/01/26 - MBIA Insured 1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,118,470 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 1,209,990 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured 1,100 Michigan Municipal Bond Authority, Clean Water Revolving 10/12 at 100.00 AAA 1,226,764 Fund Revenue Refunding Bonds, Series 2002, 5.250%, 10/01/18 75 Michigan Municipal Bond Authority, Local Government Loan 5/05 at 100.00 A 75,235 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 4,620,686 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19 1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,242,828 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23 Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,100 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,494,077 5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,367,300 Michigan, Certificates of Participation, Series 2000: 2,000 5.500%, 6/01/19 - AMBAC Insured 6/10 at 100.00 AAA 2,220,180 2,000 5.500%, 6/01/27 - AMBAC Insured 6/10 at 100.00 AAA 2,186,860 1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 1,066,750 5.000%, 11/01/25 - FSA Insured 3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,870,895 5.250%, 10/01/21 - FSA Insured 1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,148,697 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 4,100 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 4,544,358 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 915 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,109,273 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,338,350 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.6% (0.5% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Michigan, Revenue 7/12 at 100.00 AAA 1,065,300 Refunding Bonds, Series 2002, 5.250%, 7/01/21 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 25.9% (17.4% OF TOTAL INVESTMENTS) 2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,466,509 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 269,430 Asset Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,142,820 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 1,026,171 2,050 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 2,274,280 Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 3,400 5.750%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 3,940,906 770 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 863,971 1,000 East China School District, St. Clair County, Michigan, 11/11 at 100.00 AA+*** 1,128,870 General Obligation Bonds, Series 2001, 5.500%, 5/01/20 2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,252,520 Unlimited Tax General Obligation School Building and Site Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded to 5/01/09) - FSA Insured 23 Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** (continued) $ 2,000 Grand Rapids Township Economic Development Corporation, 7/09 at 101.00 BBB+*** $ 2,220,960 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) 725 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 737,267 Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 1995, 5.500%, 5/01/20 - AMBAC Insured 1,000 Mancelona Public School District, Antrim and Kalkaska 5/06 at 100.00 AAA 1,035,520 Counties, Michigan, General Obligation School Building and Site Bonds, Series 1997, 5.200%, 5/01/17 (Pre-refunded to 5/01/06) - FGIC Insured 1,000 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,127,210 Development Inc., Series 2001, 5.375%, 9/01/21 (Pre-refunded to 9/01/11) - MBIA Insured Michigan State Hospital Finance Authority, Hospital 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 1,149,950 2,500 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 11/09 at 101.00 AAA 2,874,875 3,460 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 AAA 3,630,613 Refunding Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 - AMBAC Insured 250 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 289,075 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,100 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 BBB+*** 1,204,489 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 3,259,100 Michigan, General Obligation Bonds, Series 2000A, 5.750%, 5/01/24 (Pre-refunded to 5/01/10) - FGIC Insured 4,000 Pinckney Community Schools, Livingston and Washtenaw 5/07 at 100.00 AAA 4,266,400 Counties, Michigan, Unlimited Tax General Obligation School Building and Site Bonds, Series 1997, 5.500%, 5/01/27 (Pre-refunded to 5/01/07) - FGIC Insured 1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 1,296,934 Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded to 7/01/10) 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A-*** 1,014,320 Series 1995X, 5.500%, 7/01/25 (Pre-refunded to 7/01/05) 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+*** 105,073 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 685 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101.00 AAA 697,515 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 1,133,600 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 2,344,272 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 2,966,184 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 - 12.1% (8.1% OF TOTAL INVESTMENTS) 3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,258,120 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 3,225 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 3,604,647 Revenue Bonds, Series 2000, 6.000%, 5/01/12 3,630 Michigan Strategic Fund, Limited Obligation Revenue No Opt. Call AAA 4,856,613 Refunding Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured 2,000 Michigan Strategic Fund, Limited Obligation Pollution No Opt. Call Aaa 2,157,720 Control Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 4,193,160 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 3,182,100 Refunding Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA $ 1,061,800 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 434,680 Series 2000HH, 5.250%, 7/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.6% (6.4% OF TOTAL INVESTMENTS) 1,500 Detroit, Michigan, Sewerage Disposal System Revenue 7/05 at 101.00 AAA 1,530,030 Refunding Bonds, Series 1995B, 5.250%, 7/01/21 - MBIA Insured 1,730 Detroit, Michigan, Sewerage Disposal System Revenue 7/07 at 101.00 AAA 1,822,814 Bonds, Series 1997A, 5.000%, 7/01/22 - MBIA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,756,575 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 2,178,800 Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A: 4,025 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 4,305,663 3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 3,199,020 730 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 782,662 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 1,155,284 1,160 5.625%, 11/01/30 - MBIA Insured 11/10 at 100.00 Aaa 1,288,587 ------------------------------------------------------------------------------------------------------------------------------------ $ 265,914 Total Long-Term Investments (cost $257,207,103) - 148.7% 280,433,149 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 2,124,896 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.9)% (94,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 188,558,045 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. 25 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.8% (5.4% OF TOTAL INVESTMENTS) Eastern Michigan University, General Revenue Bonds, Series 2003: $ 1,000 5.000%, 6/01/28 - FGIC Insured 6/13 at 100.00 AAA $ 1,048,890 1,450 5.000%, 6/01/33 - FGIC Insured 6/13 at 100.00 AAA 1,511,596 2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,118,540 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 1,095,230 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 3,708,705 Series 1999, 5.125%, 11/15/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 14.8% (10.3% OF TOTAL INVESTMENTS) 2,050 Dearborn Hospital Finance Authority, Michigan, Hospital 11/05 at 102.00 AAA 2,138,765 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 2,353,648 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 2/05 at 101.00 Ba3 2,000,880 500 6.500%, 8/15/18 2/05 at 101.00 Ba3 500,060 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,641,405 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,379,400 Refunding Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A, 5.750%, 5/15/29 - MBIA Insured 500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 527,000 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 4,616,222 Bonds, Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.5% (4.5% OF TOTAL INVESTMENTS) 1,000 Michigan Housing Development Authority, GNMA 4/12 at 102.00 Aaa 1,040,190 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 530,655 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 4/05 at 102.00 AAA 2,474,760 Revenue Bonds, Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 - FSA Insured 1,500 Michigan Housing Development Authority, Limited Obligation 4/05 at 102.00 AAA 1,531,485 Revenue Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - FSA Insured Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Assisted Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: 885 6.600%, 6/01/13 6/05 at 100.00 AAA 890,859 1,500 6.600%, 6/01/22 6/05 at 100.00 AAA 1,508,310 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,050 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 1,065,120 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 39.0% (27.2% OF TOTAL INVESTMENTS) $ 2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA+ $ 2,699,700 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+ 1,593,428 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 1,107,940 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+ 1,432,145 General Obligation Bonds, Series 2001, 5.000%, 5/01/26 2,665 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 2,936,670 5.250%, 4/01/24 - AMBAC Insured Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A: 1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AAA 2,243,975 750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 930,473 2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 2,680,600 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 562,835 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 Counties, 4/11 at 100.00 AA 4,237,511 Michigan, Unlimited Tax General Obligation Building Authority Bonds, Series 2000, 5.375%, 4/01/25 1,350 Gull Lake Community Schools, Barry and Calhoun Counties, 5/14 at 100.00 AAA 1,451,817 Kalamazoo, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/23 - FSA Insured 2,000 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA+ 2,151,980 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+ 1,074,620 Obligation Bonds, Series 2004, 5.000%, 5/01/22 1,185 Linden Community School District, Genesse County, Michigan, 11/13 at 100.00 AA+ 1,280,144 General Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AAA 1,083,460 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+ 1,109,280 2,000 5.250%, 5/01/21 5/13 at 100.00 AA+ 2,213,460 1,000 Otsego Public Schools District, Allegan and Kalamazoo 5/14 at 100.00 AAA 1,067,450 Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured 1,100 Oxford Area Community Schools, Oakland and Lapeer 5/14 at 100.00 AAA 1,174,195 Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured 2,515 Plainwell Community Schools, Allegan County, Michigan, 11/12 at 100.00 AA+ 2,622,240 General Obligation Bonds, Series 2002, 5.000%, 5/01/28 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 2,605,045 1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,737,761 1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AAA 1,588,918 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+ 3,119,169 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 3,181,959 General Obligation Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 27 Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 30.9% (21.4% OF TOTAL INVESTMENTS) $ 7,000 Detroit-Wayne County Stadium Authority, Michigan, 2/07 at 102.00 AAA $ 7,404,460 Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured 2,800 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 3,026,016 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23 1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 AA 1,650,270 Program, Series 2000I, 5.375%, 10/15/20 Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2001I: 2,570 5.500%, 10/15/19 10/11 at 100.00 AA 2,899,243 6,500 5.000%, 10/15/24 10/11 at 100.00 AA 6,955,520 Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,000 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,386,350 2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,662,181 1,500 Michigan, Comprehensive Transportation Revenue Refunding 11/11 at 100.00 AAA 1,632,735 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 1,690,545 4,270 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,436,530 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.6% (0.3% OF TOTAL INVESTMENTS) 1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/05 at 100.00 CCC 707,050 American Airlines Inc., Series 1993A, 6.300%, 6/01/23 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 23.1% (16.0% OF TOTAL INVESTMENTS) 355 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 382,591 Asset Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,285,640 Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1,370 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 7/07 at 101.00 AAA 1,479,847 Series 1997A, 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,554,025 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 4,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 101.00 AAA 4,548,560 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 2,656,075 Revenue Refunding and Improvement Bonds, Bronson Methodist Hospital, Series 1996, 5.750%, 5/15/16 (Pre-refunded to 5/15/06) - MBIA Insured 1,000 Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,127,210 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 Revenue 5/05 at 100.00 AAA 3,137,550 Refunding Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 - AMBAC Insured 2,500 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 2,874,875 Bonds, Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 75 Michigan South Central Power Agency, Power Supply System No Opt. Call A3*** 86,723 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,398,174 Michigan, General Obligation Bonds, Series 2000A, 5.625%, 5/01/16 (Pre-refunded to 5/01/10) - FGIC Insured Reeths-Puffer Schools, Muskegon County, Michigan, School Building and Site Refunding Bonds, Series 1995: 620 5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured 5/05 at 101.00 AAA 631,947 380 5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured 5/05 at 101.00 AAA 386,943 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,133,600 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** (continued) $ 1,500 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA $ 1,674,480 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 2,840,025 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 - 13.5% (9.4% OF TOTAL INVESTMENTS) 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,086,040 Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 925 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 1,033,891 Revenue Bonds, Series 2000, 6.000%, 5/01/12 3,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Aaa 3,236,580 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 5,241,450 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA 3,182,100 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 1,061,800 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 1,644,720 Series 2002, 5.375%, 10/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.0% (4.9% OF TOTAL INVESTMENTS) 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA 1,756,575 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 4,960 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 5,403,423 Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 1,315 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 1,409,863 Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 163,255 Total Long-Term Investments (cost $163,685,213) - 144.1% 176,274,102 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 2,059,720 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (45.8)% (56,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 122,333,822 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. 29 Nuveen Michigan Dividend Advantage Municipal Fund (NZW) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.1% (4.8% OF TOTAL INVESTMENTS) $ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa $ 1,202,061 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 1,096,325 Series 2004A, 5.000%, 10/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 15.4% (10.3% OF TOTAL INVESTMENTS) 1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 1,063,630 Spectrum Health, Series 2001A, 5.250%, 1/15/21 700 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Ba3 708,519 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 511,850 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 790,500 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 1,892,070 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.5% (3.7% OF TOTAL INVESTMENTS) 1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,775,650 Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.1% (2.8% OF TOTAL INVESTMENTS) 1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,324,750 Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.5% (0.9% OF TOTAL INVESTMENTS) 500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB+ 488,210 Republic Services Inc., Series 2001, 4.250%, 8/01/31 (Alternative Minimum Tax) (Mandatory put 4/01/14) ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.6% (1.1% OF TOTAL INVESTMENTS) 500 Dickinson County Economic Development Corporation, 11/14 at 100.00 BBB 507,200 Michigan, Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 46.9% (31.4% OF TOTAL INVESTMENTS) 1,000 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 1,120,210 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 1,125,670 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 1,054,760 Obligation Bonds, Series 1997, 5.375%, 5/01/23 - FGIC Insured 500 Fitzgerald Public School District, Macomb County, Michigan, 11/14 at 100.00 AAA 553,850 General Obligation Bonds, Series 2004B, 5.000%, 5/01/16 - AMBAC Insured 1,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA+ 1,041,560 General 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 2,441,626 General Obligation Bonds, Series 2001, 5.375%, 5/01/26 - FSA Insured (PLG1) 1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA+ 1,562,190 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 500 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA $ 539,315 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 1,050 Lawton Community Schools, Van Buren County, Michigan, 11/11 at 100.00 AA+ 1,185,314 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+ 1,128,870 Counties, Michigan, General Obligation Bonds, Series 2001, 5.500%, 5/01/17 500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 543,230 Obligation Bonds, Series 2001, 5.150%, 11/01/22 - FGIC Insured Washtenaw County, Michigan, Limited Tax General Obligation Bonds, Sylvan Township Water and Wastewater System, Series 2001: 500 5.000%, 5/01/19 - MBIA Insured 5/09 at 100.50 AAA 537,970 800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 856,200 1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA+ 1,403,844 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 28.4% (19.0% OF TOTAL INVESTMENTS) 1,300 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,373,788 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 1,289,446 Facilities Program, Series 2001I, 5.000%, 10/15/24 2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,133,500 5.000%, 11/01/25 - FSA Insured (PLG2) 1,450 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,514,192 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+ 1,109,273 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 1,650 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,714,350 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 11.8% (7.9% OF TOTAL INVESTMENTS) 515 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 577,851 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 1,000 Michigan Municipal Bond Authority, Drinking Water 10/10 at 101.00 AAA 1,157,480 Revolving Fund Revenue Bonds, Series 2000, 5.875%, 10/01/17 (Pre-refunded to 10/01/10) 235 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 Aaa 262,709 Bonds, 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 551,690 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 85 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+*** 105,073 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 1,000 Rochester Community School District, Oakland and 11/11 at 100.00 AA+*** 1,128,030 Macomb Counties, Michigan General Obligation Bonds, Series 2001II, 5.500%, 5/01/22 (Pre-refunded to 11/01/11) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.2% (10.2% OF TOTAL INVESTMENTS) 1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,205,148 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 1,357,005 Turbine 1 Project, Series 2001A, 5.250%, 1/01/24 - AMBAC Insured 2,215 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 2,328,894 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 (Alternative Minimum Tax) 31 Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.9% (7.9% OF TOTAL INVESTMENTS) $ 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call AAA $ 1,171,050 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 1,089,400 Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 1,000 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 1,032,910 485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 519,987 ------------------------------------------------------------------------------------------------------------------------------------ $ 44,615 Total Long-Term Investments (cost $44,907,205) - 149.4% 48,077,150 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.3% 94,194 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.7)% (16,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 32,171,344 ====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT JANUARY 31, 2005:
UNREALIZED NOTIONAL EFFECTIVE TERMINATION APPRECIATION AMOUNT DATE(2) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Agreement with JPMorgan dated January 11, 2005, to pay semi-annually the notional amount multiplied by 5.235% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). $1,500,000 8/17/05 8/17/25 $(46,464) Agreement with Morgan Stanley dated January 31, 2005, to pay semi-annually the notional amount multiplied by 5.058% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). 1,500,000 8/16/05 8/16/35 (4,630) ------------------------------------------------------------------------------------------------------------------------------------ $(51,094) ====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. (PLG1) Portion of security, with an aggregate market value of $16,647, has been pledged to collateralize the net payment obligations under forward swap contracts. (PLG2) Portion of security, with an aggregate market value of $277,355, has been pledged to collateralize the net payment obligations under forward swap contracts. See accompanying notes to financial statements. 32 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.7% (1.2% OF TOTAL INVESTMENTS) $ 2,800 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,736,076 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.4% (6.6% OF TOTAL INVESTMENTS) 770 Ohio State Education, Student Loan Revenue Bonds, 6/07 at 102.00 AAA 810,510 Supplemental Student Loan Program, Series 1997A-1, 5.850%, 12/01/19 (Alternative Minimum Tax) - AMBAC Insured 1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,231,248 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 1,530,606 Bonds, Denison University, Series 2004, 5.000%, 11/01/21 1,320 Ohio Higher Educational Facilities Commission, Revenue 12/14 at 100.00 AAA 1,412,519 Bonds, University of Dayton, Series 2004, 5.000%, 12/01/25 - AMBAC Insured 1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,878,310 Revenue Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 1,200 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,264,284 Series 2002A, 5.125%, 12/01/31 3,000 Ohio State University, General Receipts Bonds, 6/13 at 100.00 AA 3,319,140 Series 2003B, 5.250%, 6/01/22 1,510 University of Akron, Ohio, General Receipts Bonds, 1/13 at 100.00 AAA 1,629,411 Series 2003A, 5.000%, 1/01/21 - AMBAC Insured 850 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 914,745 Series 2003C, 5.000%, 6/01/22 - FGIC Insured 1,200 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,310,724 Series 2004D, 5.000%, 6/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 24.8% (17.4% OF TOTAL INVESTMENTS) 2,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 2,033,220 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 2/07 at 102.00 AAA 1,076,150 Improvement Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - MBIA Insured 2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 Aa3 2,203,020 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 4,705,830 Firelands Regional Medical Center, Series 2002A, 5.625%, 8/15/32 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 1,036,060 1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,552,320 2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 AAA 2,745,549 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+ 2,616,325 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+ 2,516,015 and Improvement Bonds, Upper Valley Medical Center, S eries 1996A, 6.250%, 5/15/16 1,500 Montgomery County, Ohio, Hospital Facilities Revenue 4/06 at 102.00 AAA 1,582,200 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 3,346,830 Bonds, Kettering Medical Center, Series 1999, 6.750%, 4/01/18 2,500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 2,584,000 Health Initiatives, Series 2004A, 5.000%, 5/01/30 33 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 6,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- $ 6,173,520 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- 2,699,425 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 1,500 Steubenville, Ohio, Hospital Facilities Revenue 10/10 at 100.00 A3 1,665,300 Refunding and Improvement Bonds, Trinity Health System, Series 2000, 6.375%, 10/01/20 1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue 10/11 at 101.00 AA 1,910,742 Bonds, Union Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.3% (6.5% OF TOTAL INVESTMENTS) 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 2/05 at 102.00 Aaa 1,409,390 Revenue Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 985 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/10 at 102.00 Aaa 1,012,452 Housing Mortgage 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 1,548,365 Multifamily Housing Revenue Bonds, Water Street Associates Ltd., 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, Series 2001A: 2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,631,618 2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,341,395 1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 1,041,430 Housing Mortgage Revenue Bonds, Livingston Park Apartments Project, Series 2002A, 5.350%, 9/20/27 (Alternative Minimum Tax) 985 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/05 at 103.00 Aa 1,006,207 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, 7/05 at 101.00 Aaa 4,104,335 FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds, Northgate Apartments, Series 1999A, 6.000%, 7/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.3% (3.8% OF TOTAL INVESTMENTS) 1,755 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,819,496 Securities Program Residential Mortgage Revenue Bonds, Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax) 3,220 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 3,354,016 Securities Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured 2,935 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 3,015,448 Securities Program Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax) 500 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 517,420 Securities Program Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.3% (0.3% OF TOTAL INVESTMENTS) 530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund 11/14 at 100.00 N/R 537,245 Program Development Revenue Bonds, Myers University, Series 2004E, 5.600%, 5/15/25 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,033,600 Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 43.9% (30.9% OF TOTAL INVESTMENTS) 1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,133,600 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 1,058,560 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 270 Berea City School District, Ohio, General Obligation Unlimited 6/05 at 101.00 AAA 273,764 Tax School Improvement Bonds, Series 1993, 7.500%, 12/15/06 - AMBAC Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Butler County, Ohio, General Obligation Judgment Bonds, Series 2002: $ 2,030 5.250%, 12/01/21 12/12 at 101.00 Aa3 $ 2,246,601 2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,366,027 Butler County, Ohio, General Obligation Bonds, Series 2002: 1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,455,640 1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,293,216 1,560 Canal Winchester Local School District, Franklin and Fairfield 12/11 at 100.00 Aaa 1,623,508 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 6/14 at 100.00 AAA 1,104,010 Bonds, Series 2004A, 5.000%, 12/01/15 - AMBAC Insured 1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,125,320 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 2,871,934 General Obligation Bonds, Series 2002, 5.250%, 6/01/21 - FSA Insured 1,000 Cleveland Municipal School District, Cuyahoga County, 6/14 at 100.00 AAA 1,078,410 Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - FSA Insured 1,200 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 1,311,504 Series 2004, 5.000%, 12/01/21 1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 6/14 at 100.00 AAA 1,121,760 5.250%, 12/01/19 - AMBAC Insured 1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,076,400 Bonds, Series 2000A, 5.000%, 12/01/20 1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,077,680 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 1,439,269 Refunding Bonds, Series 1993, 5.375%, 12/01/20 2,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 2,098,820 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 1,137,930 Improvement Bonds, Series 2000, 5.750%, 12/01/24 - FGIC Insured 1,160 Kenston Local School District, Geauga County, Ohio, 6/13 at 100.00 Aaa 1,249,981 General 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 2,110,700 Unlimited Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured 1,350 London City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 1,401,719 School Facilities Construction and Improvement Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 2,076,620 Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 1,515 Massillon City School District, Ohio, General Obligation 12/12 at 100.00 Aaa 1,676,711 Bonds, Series 2003, 5.250%, 12/01/21 - MBIA Insured 760 Middletown City School District, Butler County, Ohio, 12/13 at 100.00 Aaa 811,087 General Obligation Bonds, Series 2004, 5.000%, 12/01/25 - FGIC Insured 1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA 1,436,677 Washington Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2000, 5.750%, 12/01/22 3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,214,920 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 1,458,677 3,380 5.250%, 12/01/24 - FGIC Insured 6/14 at 100.00 AAA 3,740,916 1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 AAA 1,640,011 Bonds, Series 2004, 5.000%, 12/01/22 - FGIC Insured 1,155 Perry Local School District, Allen County, Ohio, General 12/11 at 101.00 AAA 1,286,104 Obligation Bonds, Series 2001, 5.250%, 12/01/25 - AMBAC Insured 35 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,720 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA $ 2,830,731 Counties, Ohio, General Obligation Bonds, School Facilities Construction and Improvement, 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 1,239,634 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 323,394 Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20 - FGIC Insured 1,445 Portage County, Ohio, General Obligation Bonds, 12/11 at 100.00 AAA 1,508,175 Series 2001, 5.000%, 12/01/27 - FGIC Insured 1,000 Princeton City School District, Butler County, Ohio, 12/13 at 100.00 AAA 1,048,310 General Obligation Bonds, Series 2003, 5.000%, 12/01/30 - MBIA Insured 2,830 Springfield Township, Hamilton County, Ohio, Various 12/11 at 100.00 Aa3 3,026,430 Purpose 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 2,163,900 5.000%, 12/01/21 - FGIC Insured 70 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 75,733 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 2,000 Sugarcreek Local School District, Athens County, Ohio, 12/13 at 100.00 Aaa 2,182,520 General Obligation Bonds, Series 2003, 5.250%, 12/01/27 - 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 2,742,934 1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,266,490 1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,052,820 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 2,081,840 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 1,110,750 Improvement and Refunding Bonds, Series 1997, 5.550%, 12/01/17 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 6.0% (4.2% OF TOTAL INVESTMENTS) 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 1,467,188 Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured 1,585 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 1,735,163 First 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 1,126,430 1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,124,400 1,000 Ohio, State Appropriation Lease Bonds, Mental Health 6/13 at 100.00 AA 1,094,700 Capital Facilities, Series 2003B-II, 5.000%, 6/01/16 2,645 Ohio Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AAA 2,977,556 Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 - MBIA Insured 330 Ohio Department of Transportation, Certificates of 4/05 at 100.00 AA 330,455 Participation, Rickenbacker International Airport Improvements, Series 1996, 6.125%, 4/15/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.8% (5.5% OF TOTAL INVESTMENTS) 1,780 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 1,944,241 Series 2000A, 5.250%, 1/01/16 - FSA Insured 3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding Bonds, 9/06 at 102.00 AAA 3,648,251 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 3,156,750 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 AAA 1,618,635 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 2,341,380 5.500%, 2/15/18 - FGIC Insured 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 14.4% (10.1% OF TOTAL INVESTMENTS) $ 2,295 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 2,473,367 Asset Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 420 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 452,332 Improvement Bonds, Series 1998I, 5.000%, 1/01/28 (Pre-refunded to 1/01/08) - FSA Insured 1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/09 at 101.00 AAA 1,322,724 Project, Series 1999, 4.875%, 12/01/24 (Pre-refunded to 6/01/09) - AMBAC Insured 1,710 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. 6/05 at 100.00 AAA 1,861,985 Project, Series 1979, 7.500%, 6/01/09 2,100 Lakota Local School District, Butler County, Ohio, Unlimited 12/05 at 100.00 AAA 2,171,463 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*** 4,888,205 Section 8 Assisted 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 Revenue 6/05 at 102.00 AAA 1,032,690 Bonds, Series 1995, 5.900%, 12/01/21 (Pre-refunded to 6/01/05) - AMBAC Insured 1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,420,068 Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20 (Pre-refunded to 6/01/11) - FGIC Insured 1,000 Southwest Ohio Regional Water District, Waterworks System 12/05 at 101.00 AAA 1,041,800 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 520,070 Obligation Bonds, Series 1995, 5.800%, 12/01/15 (Pre-refunded to 12/01/05) - FGIC Insured 1,000 Upper Arlington City School District, Ohio, General 12/06 at 101.00 AAA 1,053,190 Obligation Improvement Bonds, Series 1996, 5.250%, 12/01/22 - MBIA Insured 2,000 Wayne Local School District, Warren County, Ohio, Unlimited 12/06 at 101.00 AAA 2,153,080 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, 12/05 at 100.00 AAA 3,095,910 Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 1995, 6.000%, 12/01/18 (Pre-refunded to 12/01/05) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.0% (4.9% OF TOTAL INVESTMENTS) 4,000 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 4,300,600 Bonds, American Municipal Power Ohio Inc., Series 2002, 5.000%, 2/15/22 - MBIA Insured 2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 2,163,820 Interest Certificates, Joint Venture 5, Belleville Hydroelectric Project, American Municipal Power Ohio Inc., Series 2004, 5.000%, 2/15/20 - AMBAC Insured 3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,195,540 JMG Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 1,800 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,808,136 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.2% (7.9% OF TOTAL INVESTMENTS) Cincinnati, Ohio, Water System Revenue Bonds, Series 2001: 1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,125,980 6,010 5.000%, 12/01/18 6/11 at 100.00 AA+ 6,546,332 3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,266,310 1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,085,680 2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,114,820 5.000%, 12/01/22 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,175,970 Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured 40 Cleveland, Ohio, Waterworks First Mortgage Revenue 1/06 at 102.00 AAA 41,933 Refunding and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - MBIA Insured 580 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 606,222 Improvement Bonds, Series 1998I, 5.000%, 1/01/28 - FSA Insured 2,110 Hamilton County, Ohio, Sewer System Revenue and 6/10 at 101.00 AAA 2,367,294 Improvement Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2000A, 5.750%, 12/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 215,735 Total Long-Term Investments (cost $216,770,921) - 141.7% 231,358,903 =============----------------------------------------------------------------------------------------------------------------------- 37 Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.4% (0.3% OF TOTAL INVESTMENTS) $ 600 Puerto Rico Government Development Bank, Adjustable VMIG-1 $ 600,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 1.750%, 12/01/15 - MBIA Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 600 Total Short-Term Investments (cost $600,000) 600,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $217,370,921) - 142.1% 231,958,903 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 5.1% 8,227,469 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.2)% (77,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 163,186,372 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. + 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. 38 Nuveen Ohio Dividend Advantage Municipal Fund (NXI) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS) $ 1,120 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,094,430 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 24.6% (17.0% OF TOTAL INVESTMENTS) 1,000 Ohio Higher Educational Facilities Commission, Revenue 12/10 at 101.00 AAA 1,109,020 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 2,147,700 Bonds, Denison University, Series 2001, 5.200%, 11/01/26 2,650 Ohio Higher Education Facilities Commission, Revenue 5/12 at 100.00 A2 2,784,541 Bonds, Ohio Northern University Project, Series 2002, 5.000%, 5/01/22 1,760 Ohio University at Athens, Subordinate Lien General 6/14 at 100.00 AAA 1,915,179 Receipts Bonds, Series 2004, 5.000%, 12/01/20 - MBIA Insured 3,150 Student Loan Funding Corporation, Cincinnati, Ohio, No Opt. Call A 3,160,049 Student 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 2,296,740 Series 2001A, 5.750%, 6/01/17 - FGIC Insured 2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA- 3,012,903 Series 2002F, 5.375%, 6/01/19 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 20.9% (14.5% OF TOTAL INVESTMENTS) 1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 Aa3 1,211,661 Cleveland Clinic Health System, Series 2003A, 6.000%, 1/01/32 1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 2,107,229 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+ 2,608,275 and Improvement Bonds, Upper Valley Medical Center, Series 1996A, 6.375%, 5/15/26 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,033,600 Initiatives, Series 2004A, 5.000%, 5/01/30 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- 2,371,275 2,000 5.375%, 11/01/29 11/08 at 101.00 A- 2,057,840 1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,079,770 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 1,500 Tuscarawas County, Ohio, Hospital Facilities Revenue 4/05 at 101.00 Baa1 1,514,295 Bonds, Union Hospital Project, Series 1993A, 6.500%, 10/01/21 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.2% (5.0% OF TOTAL INVESTMENTS) 1,790 Lucas Northgate Housing Development Corporation, Ohio, 7/05 at 101.00 Aaa 1,809,923 FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds, Northgate Apartments, Series 1999A, 5.950%, 7/01/19 - MBIA Insured 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage 4/11 at 102.00 Aa2 3,030,952 Revenue Bonds, Asbury Woods Project, Series 2001A, 5.450%, 4/01/26 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.5% (3.1% OF TOTAL INVESTMENTS) 810 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 853,918 Securities Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 1,465 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,469,073 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 39 Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 435 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 444,309 Securities Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 205 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 212,142 Securities Program Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.9% (2.7% OF TOTAL INVESTMENTS) 1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB 1,101,600 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 1,524,081 Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 43.1% (29.7% OF TOTAL INVESTMENTS) 1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,058,560 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 1,057,320 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 1,156,750 Obligation Bonds, Series 2004, 5.500%, 12/01/15 - FSA Insured 500 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 546,460 Series 2004, 5.000%, 12/01/21 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 996,239 935 5.500%, 12/01/23 - MBIA Insured 6/11 at 100.00 Aaa 1,058,504 1,000 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,134,240 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 2,110,700 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 2,154,300 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 - FGIC Insured 1,000 Middletown City School District, Butler County, Ohio, 12/13 at 100.00 Aaa 1,067,220 General Obligation Bonds, Series 2004, 5.000%, 12/01/25 - FGIC Insured 1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,104,180 Bonds, Series 2000, 5.450%, 12/01/25 - AMBAC Insured 2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ 2,165,040 Bonds, Series 2001A, 5.000%, 2/01/20 1,900 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 2,107,594 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 2,027,933 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 1,371,683 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 11/11 at 101.00 Aaa 1,682,564 Purpose 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 1,066,000 Bonds, Series 1997, 5.375%, 12/01/23 - MBIA Insured 1,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 1,561,380 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured 2,965 Franklin County, Worthington, Ohio, Various Purpose 12/11 at 100.00 AA+ 3,328,657 Unlimited Tax General Obligation Bonds, Series 2001, 5.375%, 12/01/21 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.6% (8.0% OF TOTAL INVESTMENTS) $ 1,415 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA $ 1,532,841 First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC Insured 4,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 4,562,920 6.000%, 8/01/16 - FSA Insured 1,400 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,620,444 Taxes Loan Notes, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.1% (3.5% OF TOTAL INVESTMENTS) 2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 2/11 at 100.00 AA 2,239,100 5.500%, 2/15/26 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,141,890 Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.5% (8.6% OF TOTAL INVESTMENTS) 1,440 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,592,208 Bonds, 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 1,023,950 Series 2001, 5.500%, 12/01/18 - AMBAC Insured 1,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 1,078,750 Interest Certificates, Joint Venture 5, American Municipal Power Ohio Inc., Belleville Hydroelectric Project, Series 2004, 5.000%, 2/15/21 - AMBAC Insured 1,500 Ohio Air Quality Development Authority, Revenue Refunding 9/05 at 102.00 Ba1 1,521,315 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 2,139,860 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,004,520 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.8% (6.8% OF TOTAL INVESTMENTS) 2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,131,220 Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured 1,700 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,860,175 Series 2001, 5.125%, 12/01/21 2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aaa 2,550,157 Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 89,805 Total Long-Term Investments (cost $90,451,636) - 144.8% 96,705,179 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 1,081,799 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.4)% (31,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 66,786,978 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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 2 (NBJ) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 8.4% (5.7% OF TOTAL INVESTMENTS) $ 975 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 952,741 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+ 3,136,680 Revenue Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.7% (8.6% OF TOTAL INVESTMENTS) 1,345 Bowling Green State University, Ohio, General Receipts 6/13 at 100.00 AAA 1,497,335 Bonds, Series 2003, 5.250%, 6/01/18 - AMBAC Insured 2,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 Baa1 2,233,045 Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15 1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 AAA 1,076,170 Series 2003C, 5.000%, 6/01/22 - FGIC Insured 1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 1,359,876 Series 2004D, 5.000%, 6/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 23.3% (15.8% OF TOTAL INVESTMENTS) 1,380 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 1,438,250 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.000%, 11/15/08 1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,051,050 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- 1,981,905 Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.400%, 10/01/21 700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 723,520 Initiatives, Series 2004A, 5.000%, 5/01/30 2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,159,540 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 4,027,605 Union Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS) 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,076,900 Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.8% (2.5% OF TOTAL INVESTMENTS) 1,605 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 1,653,439 Securities Program Residential Mortgage Revenue Bonds, Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax) 170 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 175,923 Securities Program Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.1% (1.4% OF TOTAL INVESTMENTS) 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 1,033,600 Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 54.3% (36.8% OF TOTAL INVESTMENTS) 1,000 Cleveland, Ohio, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 1,114,400 5.250%, 8/01/18 - FGIC Insured Cleveland Municipal School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004: 1,000 5.000%, 12/01/15 - FSA Insured 6/14 at 100.00 AAA 1,106,510 1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,078,410 2,605 Columbus City School District, Franklin County, Ohio, 12/14 at 100.00 AAA 3,013,334 General Obligation Bonds, Series 2004, 5.500%, 12/01/15 - FSA Insured 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 400 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ $ 437,168 Series 2004, 5.000%, 12/01/21 1,750 Fairfield City School District, Ohio, General Obligation 12/11 at 100.00 AAA 1,965,898 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 1,094,270 Obligation Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 - MBIA Insured 1,065 Lakewood City School District, Cuyahoga County, Ohio, 12/14 at 100.00 AAA 1,207,966 General 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 4,539,480 Obligation Bonds, Series 2001, 5.500%, 12/01/21 - FSA Insured 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa 2,745,442 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 1,077,150 Tax General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 - FGIC Insured 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,062,710 Bonds, Series 2001B, 5.000%, 9/15/21 1,050 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,207,532 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 2,091,163 5.000%, 12/01/25 - FGIC Insured 1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,132,790 5.500%, 12/01/25 - FGIC Insured 1,500 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 1,622,925 5.000%, 12/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.5% (11.2% OF TOTAL INVESTMENTS) 1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,793,092 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 1,195,083 Capital Facilities, Series 2004A-II, 5.000%, 12/01/18 2,500 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,796,450 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 1,143,720 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 1,128,860 Civic Theatre Project, Series 2001, 5.500%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.8% (5.3% OF TOTAL INVESTMENTS) 3,495 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 3,809,690 Series 2000A, 5.250%, 1/01/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.9% (6.0% OF TOTAL INVESTMENTS) 595 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 643,735 Interest Certificates, Joint Venture 5, Belleville Hydroelectric Project, American Municipal Power Ohio Inc., Series 2004, 5.000%, 2/15/20 - AMBAC Insured 2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,674,824 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,004,520 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 43 Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued) Portfolio of INVESTMENTS January 31, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.7% (5.2% OF TOTAL INVESTMENTS) $ 2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA $ 2,131,220 Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured 1,500 Ohio Water Development Authority, Revenue Bonds, 12/11 at 100.00 AAA 1,596,674 Fresh Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 66,125 Total Long-Term Investments (cost $67,787,012) - 147.7% 71,992,595 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 735,994 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.3)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 48,728,589 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 44 Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) Portfolio of INVESTMENTS January 31, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.0% (4.1% OF TOTAL INVESTMENTS) $ 2,095 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,047,171 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.7% (9.3% OF TOTAL INVESTMENTS) 1,125 Ohio Higher Education Facilities Commission, Revenue 5/12 at 100.00 A2 1,265,839 Bonds, Ohio Northern University Project, Series 2002, 5.750%, 5/01/16 2,000 Ohio Higher Education Facilities Commission, Revenue 10/12 at 100.00 AA 2,261,080 Bonds, 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 1,120,670 Series 1999A, 5.800%, 12/01/29 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 23.2% (15.8% OF TOTAL INVESTMENTS) 690 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 719,125 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.000%, 11/15/08 1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,839,338 Firelands Regional Medical Center, Series 2002A, 5.500%, 8/15/22 1,425 Montgomery County, Ohio, Hospital Facilities Revenue 4/10 at 101.00 A3 1,589,744 Bonds, Kettering Medical Center, Series 1999, 6.750%, 4/01/18 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic 9/11 at 100.00 AA 1,108,660 Health Initiatives, Series 2001, 5.500%, 9/01/12 500 Montgomery County, Ohio, Revenue Bonds, Catholic 5/14 at 100.00 AA 516,800 Health Initiatives, Series 2004A, 5.000%, 5/01/30 1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,028,920 Hospital Revenue Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29 1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,079,770 Improvement Bonds, MedCentral Health SystemObligated Group, Series 2000B, 6.375%, 11/15/30 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.1% (3.5% OF TOTAL INVESTMENTS) 390 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 411,146 Securities Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 895 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 897,488 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 425 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 434,095 Securities Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (1.1% OF TOTAL INVESTMENTS) 500 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB 518,395 Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 48.2% (32.8% OF TOTAL INVESTMENTS) 2,000 Canal Winchester Local School District, Franklin and 12/08 at 102.00 AAA 2,162,720 Fairfield Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 1998, 5.300%, 12/01/25 - FGIC Insured 300 Cuyahoga County, Ohio, General Obligation Bonds, 12/14 at 100.00 AA+ 327,876 Series 2004, 5.000%, 12/01/21 1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,718,434 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 2,227,260 Obligation Bonds, Series 2001, 5.500%, 12/01/28 1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- 1,121,040 5.375%, 12/01/22 1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,077,570 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 1,354,468 5.125%, 12/01/26 - AMBAC Insured 45 Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (continued) Portfolio of INVESTMENTS January 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA $ 1,257,937 General Obligation Bonds, Series 2002, 5.125%, 12/01/29 - FSA Insured 1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,084,990 Bonds, Series 2001B, 5.000%, 9/15/20 1,000 Olentangy Local School District, Deleware and Franklin 6/14 at 100.00 AAA 1,115,900 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 1,703,129 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+ 1,233,146 Bonds, Series 2002, 5.000%, 12/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.4% (15.2% OF TOTAL INVESTMENTS) 500 Hamilton County Convention Facilities Authority, Ohio, 6/14 at 100.00 AAA 547,370 First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC Insured 1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 1,030,600 Certificates of Participation, Series 2003, 5.000%, 11/01/30 2,000 Ohio, State Appropriation Lease Bonds, Higher Education No Opt. Call AAA 2,237,160 Capital Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 1,250 Ohio Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,402,138 Administrative Building Fund Projects, Series 2002A, 5.500%, 4/01/18 - FSA Insured 2,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 2,386,580 Government Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 9.0% (6.2% OF TOTAL INVESTMENTS) 1,140 Columbus Municipal Airport Authority, Ohio, Airport No Opt. Call AAA 1,262,436 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 1,814,570 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.9% (3.3% OF TOTAL INVESTMENTS) 1,500 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,658,550 Bonds, American Municipal Power Ohio Inc., Series 2002, 5.250%, 2/15/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 1,065,610 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 1,670,864 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 1,596,674 Water Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 45,635 Total Long-Term Investments (cost $46,556,234) - 146.7% 49,895,263 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 613,214 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.5)% (16,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 34,008,477 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 46 Statement of ASSETS AND LIABILITIES January 31, 2005 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $257,207,103, $163,685,213 and $44,907,205, respectively) $280,433,149 $176,274,102 $48,077,150 Cash -- -- -- Receivables: Interest 3,192,090 2,321,514 570,429 Investments sold -- 2,002,536 -- Other assets 16,155 1,626 601 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 283,641,394 180,599,778 48,648,180 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 866,736 2,096,001 156,622 Payable for forward swaps closed -- -- 244,293 Forward swaps, at value -- -- 51,094 Accrued expenses: Management fees 151,303 96,168 13,920 Other 50,828 62,630 7,118 Preferred share dividends payable 14,482 11,157 3,789 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,083,349 2,265,956 476,836 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $188,558,045 $122,333,822 $32,171,344 ==================================================================================================================================== Common shares outstanding 11,696,465 7,739,754 2,060,512 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.12 $ 15.81 $ 15.61 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 116,965 $ 77,398 $ 20,605 Paid-in surplus 163,648,274 108,216,633 29,175,431 Undistributed net investment income 1,532,191 1,070,343 355,825 Accumulated net realized gain (loss) from investments and forward swaps 34,569 380,559 (499,368) Net unrealized appreciation (depreciation) of investments and forward swaps 23,226,046 12,588,889 3,118,851 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $188,558,045 $122,333,822 $32,171,344 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 Unlimited Preferred 1,000,000 1,000,000 Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 47 Statement of ASSETS AND LIABILITIES January 31, 2005 (Unaudited) (continued)
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $217,370,921, $90,451,636, $67,787,012 and $46,556,234, respectively) $231,958,903 $96,705,179 $71,992,595 $49,895,263 Cash -- -- -- 36,217 Receivables: Interest 2,680,194 1,190,202 775,979 601,748 Investments sold 6,237,938 -- -- -- Other assets 1,944 4,267 904 3,502 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 240,878,979 97,899,648 72,769,478 50,536,730 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 455,653 67,134 9,661 -- Payable for forward swaps closed -- -- -- -- Forward swaps, at value -- -- -- -- Accrued expenses: Management fees 129,201 28,308 21,042 14,614 Other 94,673 13,402 8,996 8,728 Preferred share dividends payable 13,080 3,826 1,190 4,911 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 692,607 112,670 40,889 28,253 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $163,186,372 $66,786,978 $48,728,589 $34,008,477 ==================================================================================================================================== Common shares outstanding 9,691,159 4,231,992 3,117,483 2,157,649 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.84 $ 15.78 $ 15.63 $ 15.76 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 96,912 $ 42,320 $ 31,175 $ 21,576 Paid-in surplus 146,884,302 60,062,512 44,193,160 30,528,659 Undistributed net investment income 1,300,839 590,803 353,515 120,882 Accumulated net realized gain (loss) from investments and forward swaps 316,337 (162,200) (54,844) (1,669) Net unrealized appreciation (depreciation) of investments and forward swaps 14,587,982 6,253,543 4,205,583 3,339,029 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $163,186,372 $66,786,978 $48,728,589 $34,008,477 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 48 Statement of OPERATIONS Six Months Ended January 31, 2005 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 6,880,262 $4,333,293 $1,140,230 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 896,400 568,646 153,675 Preferred shares - auction fees 118,467 70,575 20,165 Preferred shares - dividend disbursing agent fees 10,081 10,081 5,042 Shareholders' servicing agent fees and expenses 14,771 10,623 491 Custodian's fees and expenses 34,082 20,282 6,595 Directors'/Trustees' fees and expenses 3,402 2,272 650 Professional fees 10,021 8,002 5,657 Shareholders' reports - printing and mailing expenses 18,949 8,844 3,135 Stock exchange listing fees 5,559 8,009 129 Investor relations expense 17,169 10,871 2,955 Other expenses 15,660 8,918 5,725 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,144,561 727,123 204,219 Custodian fee credit (9,893) (10,780) (2,052) Expense reimbursement -- -- (71,640) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,134,668 716,343 130,527 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 5,745,594 3,616,950 1,009,703 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 674,307 481,407 (14,421) Net realized gain (loss) from forward swaps -- -- (401,766) Change in net unrealized appreciation (depreciation) of investments 8,197,131 4,964,871 2,004,648 Change in net unrealized appreciation (depreciation) of forward swaps -- -- 13,534 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain 8,871,438 5,446,278 1,601,995 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (546,685) (324,718) (80,407) From accumulated net realized gains from investments (81,692) (11,736) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (628,377) (336,454) (80,407) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $13,988,655 $8,726,774 $2,531,291 ====================================================================================================================================
See accompanying notes to financial statements. 49 Statement of OPERATIONS Six Months Ended January 31, 2005 (Unaudited) (continued)
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 5,974,586 $2,381,919 $1,669,781 $1,162,563 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 763,158 312,790 232,666 161,576 Preferred shares - auction fees 97,042 39,069 30,246 20,794 Preferred shares - dividend disbursing agent fees 15,123 5,042 5,042 5,042 Shareholders' servicing agent fees and expenses 15,909 753 715 579 Custodian's fees and expenses 27,054 12,424 8,764 5,258 Directors'/Trustees' fees and expenses 3,107 1,293 951 650 Professional fees 6,993 5,350 5,544 4,939 Shareholders' reports - printing and mailing expenses 6,953 6,433 5,814 3,417 Stock exchange listing fees 5,592 181 134 92 Investor relations expense 14,508 5,777 4,358 3,140 Other expenses 8,254 6,541 4,946 4,714 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 963,693 395,653 299,180 210,201 Custodian fee credit (6,954) (2,892) (4,071) (3,500) Expense reimbursement -- (145,816) (108,464) (75,323) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 956,739 246,945 186,645 131,378 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 5,017,847 2,134,974 1,483,136 1,031,185 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 526,485 (13,072) 62,481 (1,543) Net realized gain (loss) from forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 6,152,217 3,186,811 2,518,641 1,847,486 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain 6,678,702 3,173,739 2,581,122 1,845,943 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (428,386) (168,838) (137,052) (91,265) From accumulated net realized gains from investments (17,746) -- (3,841) (2,521) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (446,132) (168,838) (140,893) (93,786) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $11,250,417 $5,139,875 $3,923,365 $2,783,342 ====================================================================================================================================
See accompanying notes to financial statements. 50 Statement of CHANGES IN NET ASSETS (Unaudited)
MICHIGAN MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW) --------------------------------- --------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 5,745,594 $11,802,032 $ 3,616,950 $ 7,522,642 $ 1,009,703 $ 2,031,123 Net realized gain (loss) from investments 674,307 1,180,195 481,407 1,871,869 (14,421) 51,975 Net realized gain (loss) from forward swaps -- -- -- -- (401,766) -- Change in net unrealized appreciation (depreciation) of investments 8,197,131 4,399,778 4,964,871 1,053,906 2,004,648 1,008,797 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- 13,534 (64,628) Distributions to Preferred Shareholders: From net investment income (546,685) (724,631) (324,718) (313,219) (80,407) (111,533) From accumulated net realized gains from investments (81,692) (95,441) (11,736) (220,148) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 13,988,655 16,561,933 8,726,774 9,915,050 2,531,291 2,915,734 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (5,601,408) (11,067,332) (3,612,613) 7,285,471) (920,908) (1,841,125) From accumulated net realized gains from investments (1,296,599) (1,232,780) (356,938) 3,007,816) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (6,898,007) (12,300,112) (3,969,551) (10,293,287) (920,908) (1,841,125) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 353,292 666,222 47,725 488,732 8,742 22,217 Preferred shares offering costs -- -- -- -- 13,775 (1,870) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 353,292 666,222 47,725 488,732 22,517 20,347 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 7,443,940 4,928,043 4,804,948 110,495 1,632,900 1,094,956 Net assets applicable to Common shares at the beginning of period 181,114,105 176,186,062 117,528,874 117,418,379 30,538,444 29,443,488 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $188,558,045 $181,114,105 $122,333,822 $117,528,874 $32,171,344 $30,538,444 ==================================================================================================================================== Undistributed net investment income at the end of period $ 1,532,191 $ 1,934,690 $ 1,070,343 $ 1,390,724 $ 355,825 $ 347,437 ====================================================================================================================================
See accompanying notes to financial statements. 51 Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
OHIO OHIO OHIO QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ) --------------------------------- --------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 5,017,847 $ 10,288,690 $ 2,134,974 $ 4,394,700 $ 1,483,136 $ 3,072,016 Net realized gain (loss) from investments 526,485 2,207,042 (13,072) (170,963) 62,481 (16,409) Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 6,152,217 246,313 3,186,811 1,850,624 2,518,641 1,654,989 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (428,386) (535,383) (168,838) (255,016) (137,052) (181,912) From accumulated net realized gains from investments (17,746) (141,268) -- (5,304) (3,841) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 11,250,417 12,065,394 5,139,875 5,814,041 3,923,365 4,528,684 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,849,661) (9,681,971) (2,055,863) (4,096,876) (1,444,509) (2,862,473) From accumulated net realized gains from investments (342,343) (2,044,035) -- (71,806) (65,438) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (5,192,004) (11,726,006) (2,055,863) (4,168,682) (1,509,947) (2,862,473) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 493,852 883,014 61,449 74,236 31,752 26,498 Preferred shares offering costs -- -- -- (1,664) 14,942 (1,870) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 493,852 883,014 61,449 72,572 46,694 24,628 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 6,552,265 1,222,402 3,145,461 1,717,931 2,460,112 1,690,839 Net assets applicable to Common shares at the beginning of period 156,634,107 155,411,705 63,641,517 61,923,586 46,268,477 44,577,638 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $163,186,372 $156,634,107 $66,786,978 $63,641,517 $48,728,589 $46,268,477 ==================================================================================================================================== Undistributed net investment income at the end of period $ 1,300,839 $ 1,561,039 $ 590,803 $ 680,530 $ 353,515 $ 451,940 ====================================================================================================================================
See accompanying notes to financial statements. 52
OHIO DIVIDEND ADVANTAGE 3 (NVJ) --------------------------------- SIX MONTHS ENDED YEAR ENDED 1/31/05 7/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 1,031,185 $ 2,063,782 Net realized gain (loss) from investments (1,543) 41,914 Net realized gain (loss) from forward swaps -- -- Change in net unrealized appreciation (depreciation) of investments 1,847,486 1,025,170 Change in net unrealized appreciation (depreciation) of forward swaps -- -- Distributions to Preferred Shareholders: From net investment income (91,265) (124,399) From accumulated net realized gains from investments (2,521) (10,818) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 2,783,342 2,995,649 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (945,022) (1,889,890) From accumulated net realized gains from investments (39,484) (146,047) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (984,506) (2,035,937) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 1,389 4,762 Preferred shares offering costs -- (1,408) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 1,389 3,354 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 1,800,225 963,066 Net assets applicable to Common shares at the beginning of period 32,208,252 31,245,186 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $34,008,477 $32,208,252 ==================================================================================================================================== Undistributed net investment income at the end of period $ 120,882 $ 125,984 ====================================================================================================================================
See accompanying notes to financial statements. 53 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The 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. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When 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. Prices of derivative investments are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a derivative investment each Fund may use a market quote provided by a major broker/dealer in such investments. If it is determined that market prices for an investment are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term 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 on a when-issued or delayed delivery basis may have extended settlement periods. Any 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 January 31, 2005, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 54 Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable weekly at the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Number of shares: Series M -- 840 -- Series W -- -- 640 Series TH 3,200 1,400 -- Series F 560 -- -- -------------------------------------------------------------------------------- Total 3,760 2,240 640 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Number of shares: Series M 680 -- -- -- Series T -- -- -- 660 Series W -- 1,240 -- -- Series TH 1,400 -- -- -- Series TH2 1,000 -- -- -- Series F -- -- 960 -- -------------------------------------------------------------------------------- Total 3,080 1,240 960 660 ================================================================================ 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 asset value. 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 amount of the payment obligation is based on the notional amount of the forward swap contract. The Funds may close out a contract prior to the effective date at which point a realized gain or loss would be recognized. When a forward swap is terminated, it does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To minimize such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the pre-determined threshold amount. 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. 55 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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. 2. FUND SHARES Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW) ----------------------- ---------------------- ---------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 21,592 40,867 3,091 30,749 567 1,185 ========================================================================================================= OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) --------------------------------------------------------------------------------------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 1/31/05 7/31/04 1/31/05 7/31/04 1/31/05 7/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 28,289 49,919 3,708 4,481 1,986 1,437 ========================================================================================================= OHIO DIVIDEND ADVANTAGE 3 (NVJ) --------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED 1/31/05 7/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 85 299 =========================================================================================================
56 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities for the six months ended January 31, 2005, were as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Purchases $10,058,108 $11,723,031 $1,577,550 Sales and maturities 9,731,247 11,448,027 1,253,810 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Purchases $15,889,618 $3,606,935 $6,675,107 $825,852 Sales and maturities 20,830,596 3,044,500 5,814,200 430,000 ================================================================================ 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses on investments, timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At January 31, 2005, the cost of investments was as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Cost of investments $257,298,393 $163,649,086 $44,904,884 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Cost of investments $217,324,000 $90,387,091 $67,776,464 $46,548,462 ================================================================================ 57 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2005, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $23,561,386 $12,915,618 $3,187,003 Depreciation (426,630) (290,602) (14,737) ------------------------------------------------------------------------------------------------------------ Net unrealized appreciation of investments $23,134,756 $12,625,016 $3,172,266 ============================================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $14,634,972 $6,349,284 $4,216,131 $3,346,801 Depreciation (69) (31,196) -- -- ------------------------------------------------------------------------------------------------------------ Net unrealized appreciation of investments $14,634,903 $6,318,088 $4,216,131 $3,346,801 ============================================================================================================
The tax components of undistributed net investment income and net realized gains at July 31, 2004, the Funds' last fiscal year end, 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 =========================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced for the dividend declared on July 1, 2004, paid on August 2, 2004. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 58 The tax character of distributions paid during the fiscal year ended July 31, 2004, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $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 (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 -- -- =========================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At July 31, 2004, the Funds' last fiscal year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: MICHIGAN OHIO 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 current fiscal year: OHIO OHIO DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 2 (NXI) (NBJ) -------------------------------------------------------------------------------- $126,917 $23,088 ================================================================================ 59 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the Adviser to all funds previously advised by either NAC or NIAC. As approved by the Board of Directors/Trustees, effective August 1, 2004, a complex-wide management fee structure was adopted for all funds sponsored by the Adviser or its predecessor and its affiliates. This fee 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 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 .009% as of February 28, 2005. Effective August 1, 2004, the annual fund-level fee, payable monthly, for each of the Funds is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: MICHIGAN QUALITY INCOME (NUM) AVERAGE DAILY NET ASSETS MICHIGAN PREMIUM INCOME (NMP) (INCLUDING NET ASSETS ATTRIBUTABLE OHIO QUALITY INCOME (NUO) TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ MICHIGAN DIVIDEND ADVANTAGE (NZW) OHIO DIVIDEND ADVANTAGE (NXI) AVERAGE DAILY NET ASSETS OHIO DIVIDEND ADVANTAGE 2 (NBJ) (INCLUDING NET ASSETS ATTRIBUTABLE OHIO DIVIDEND ADVANTAGE 3 (NVJ) TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ 60 Effective August 1, 2004, the annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as follows: COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion (2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. 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) AVERAGE DAILY NET ASSETS MICHIGAN PREMIUM INCOME (NMP) (INCLUDING NET ASSETS ATTRIBUTABLE OHIO QUALITY INCOME (NUO) 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) AVERAGE DAILY NET ASSETS OHIO DIVIDEND ADVANTAGE 2 (NBJ) (INCLUDING NET ASSETS ATTRIBUTABLE OHIO DIVIDEND ADVANTAGE 3 (NVJ) 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 net assets over $2 billion .5750 ================================================================================ 61 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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. 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. 62 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. 63 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 6. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on March 1, 2005, to shareholders of record on February 15, 2005, 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 ================================================================================ Announcement Regarding Parent Company of Adviser Recently, The St. Paul Travelers Companies, Inc. announced that it intended to explore strategic alternatives to divest its equity stake in Nuveen. This divestiture could take the form of a sale by The St. Paul Travelers Companies, Inc. of its interest in Nuveen to another party or the form of the sale of its interest to the public in a registered, broadly disseminated offering. Any resulting divestiture could be deemed to be an "assignment" (as defined in the 1940 Act) of the investment management agreement between the Fund and NAM and the investment sub-advisory agreement between NAM and Gateway, which would result in the automatic termination of each agreement. The Board of Directors/Trustees thereupon may consider both an interim investment management agreement and interim investment sub-advisory agreement (as permitted under the 1940 Act) and new ongoing investment management and investment sub-advisory agreements. If approved by the Board, the new ongoing agreements would be presented to the Funds' shareholders for approval, and would take effect upon such approval. There can be no assurance that these approvals will be obtained. 64 Financial HIGHLIGHTS (Unaudited) 65 Financial HIGHLIGHTS (Unaudited) 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: 2005(b) $15.51 $ .49 $ .77 $(.05) $(.01) $1.20 $(.48) $(.11) $ (.59) 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: 2005(b) 15.19 .47 .71 (.04) -- 1.14 (.47) (.05) (.52) 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: 2005(b) 14.82 .49 .78 (.04) -- 1.23 (.45) -- (.45) 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: 2005(b) $ -- $16.12 $16.1900 10.45% 7.84% 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: 2005(b) -- 15.81 15.6300 12.44 7.56 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: 2005(b) .01 15.61 16.1600 13.53 8.45 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: 2005(b) $188,558 1.22%* 6.12%* 1.21%* 6.13%* 4% 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: 2005(b) 122,334 1.20* 5.95* 1.18* 5.96* 7 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: 2005(b) 32,171 1.29* 5.92* .83* 6.38* 3 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: 2005(b) $94,000 $25,000 $75,148 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: 2005(b) 56,000 25,000 79,613 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: 2005(b) 16,000 25,000 75,268 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 changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common Share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the period September 25, 2001 (commencement of operations) through July 31, 2002. (b) For the six months ended January 31, 2005. See accompanying notes to financial statements. 66-67 spread FINANCIAL HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ----------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning 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: 2005(d) $16.21 $ .52 $ .69 $(.04) $ -- $1.17 $ (.50) $(.04) $ (.54) 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: 2005(d) 15.05 .50 .76 (.04) -- 1.22 (.49) -- (.49) 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: 2005(d) 14.85 .48 .82 (.04) -- 1.26 (.46) (.02) (.48) 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: 2005(d) 14.93 .48 .85 (.04) -- 1.29 (.44) (.02) (.46) 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: 2005(d) $ -- $16.84 $18.8900 19.41% 7.29% 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: 2005(d) -- 15.78 16.2100 12.79 8.18 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: 2005(d) -- 15.63 16.0900 12.81 8.62 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: 2005(d) -- 15.76 15.7900 13.69 8.71 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: 2005(d) $163,186 1.19%* 6.19%* 1.18%* 6.20%* 7% 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: 2005(d) 66,787 1.20* 6.02* .75* 6.47* 3 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: 2005(d) 48,729 1.24* 5.70* .78* 6.16* 8 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: 2005(d) 34,008 1.25* 5.67* .78* 6.14* 1 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: 2005(d) $77,000 $25,000 $77,983 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: 2005(d) 31,000 25,000 78,860 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: 2005(d) 24,000 25,000 75,759 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: 2005(d) 16,500 25,000 76,528 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 changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common Share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) 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. (d) For the six months ended January 31, 2005. See accompanying notes to financial statements. 68-69 spread Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END 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 Effective Jan. 1, 2005, the asset management services and operations of Nuveen Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part of Nuveen Asset Management (NAM). This internal consolidation is intended to simplify the delivery of services to the investment management clients of Nuveen Investments. It does not affect the investment objectives or portfolio management of any Fund. QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30, 2004, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of 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 the sensitivity of a bond or bond Fund's value to changes when interest rates change. 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 longer than the duration of the Fund's portfolio of bonds. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 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 period covered by this report. 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 more than $115 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 fixed-income 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 provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/ETF o Investor education o Interactive planning tools Logo: NUVEEN Investments ESA-B-0105D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Schedule I in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Michigan Quality Income Municipal Fund, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: April 8, 2005 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: April 8, 2005 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: April 8, 2005 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.